Corporate Philanthropy: What Gives?

• Author: VAN DERNOOT, PETER R.
• Position: John Hopkins Comparative Nonprofit Sector Project survey - Statistical Data Included

It's a new environment for both corporations and non-profits.

We are a generous people.

In 1999, 73 percent of Americans reported giving money to charity, a significantly higher percentage than in any other nation, according to a survey by the John Hopkins Comparative Nonprofit Sector Project. In fact, personal giving increased $9.64 billion for a total of $143.7 billion, an all-time high.

The Ripple Effect

This generosity has rippled into the corporate arena, as well, Nationally charitable corporate giving was up 14.2 percent in 1999, and total corporate giving reached $11.2 billion, also a new high, according to the AAFRC Thrust for Philanthropy.

In Colorado, there is no central compilation of corporate giving. However, those closely involved in corporate philanthropy sense that local corporate contributions have increased, given the strong economy.

What is more intriguing, however, is the changing philosophy of corporations regarding their corporate giving policies, and the challenges this presents to the non-profit sector.

Says Tom Honig, president and chief operating officer of Wells Fargo in Colorado and Wyoming, "When we interviewed executives responsible for their corporate giving, or that of their corporate foundation, it became clear there are changing dynamics in corporate philanthropy. Invariably, they emphasized that new strategies are in play. Moreover, it is apparent that the field of corporate donors is undergoing significant change. The nonprofits competing for those corporate dollars need to be acutely aware of these changes and respond in new, creative ways.

Giving Has Gone Strategic

Most significantly, more companies are trying to link their corporate philanthropy to their company mission.

Observes David Miller, executive director of The Denver Foundation, a community foundation: "Corporate philanthropy is more strategic today. There used to be, just a few years ago, a 'checkbook' style of giving. It's much more thoughtful today."

Jane Prancan, executive director of the Qwest Foundation, the philanthropic arm for Qwest Communications, concurs: "There has been a major change during the past five years from general community support to strategic giving. It just makes sense. It's the wave of the future." Citing an example, U S WEST, Qwest's predecessor, found it mutually beneficial to underwrite network and technology training for teachers and others.

At Dependable Cleaners, where philanthropic giving spans 70 years throughout the state, Warren Toltz, chairman, explains, "When we began, it wasn't strategic. We just thought giving back to the community was the right thing to do."

Like many companies, Dependable has found it is best recognized for community programs related to its work. Although family members today carry on most of the company's business and charitable work, the company is largely known for a program it started 19 years ago: Coats4Colorado. Remembering the beginning, Toltz says, "During the first year, we collected 850 coats. After a while, we began to see the benefits: Customers were happy to get rid of coats they no longer wanted, recipients got a needed garment, we served as a catalyst in the process and got some favorable recognition. Today, we collect between 50,000 and 70,000 coats each year. In total, we've gathered some 950,000 coats. Today, people say to...