Every little bit helps: companies look to align corporate and philanthropic values.

• Author: Nelson, Fraser
• Position: Money Talk

Utah is, far and away, the most charitable state in the nation. The Chronicle of Philanthropy's study "How America Gives" found that Utahns give an astonishing 10.6 percent of their annual income to charity, while the national average is 4.7 percent. Orem-ites blow the wealthiest New Yorkers out of the water, giving nearly 14 percent of their income, compared to 8 percent for the residents of the fabled "upper east side."

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By contrast, no Utah-based corporation shows up on any list of largest corporate foundations. Only one Utah-based Fortune 500 company, Huntsman Corp., has its official headquarters in Utah. In fact, three-quarters of Utah's top 25 employers are themselves either nonprofits or a branch of government.

So in Utah, the national truth that corporations make up only a small portion of total giving holds even more true. In 2011, U.S. corporations represented just 5 percent of overall giving, and about half was in-kind. The annual Giving USA study found that few companies planned to increase their giving in 2012. In Utah, as in the nation, individual giving remains the vast majority-88 percent--of total contributions.

Corporations, however, are taking on new roles in the social sphere, and the Community Foundation of Utah sees these national trends mirrored in our state. Companies of all sizes are increasingly aligning their philanthropy with business objectives. They are shifting their decision making from a top-down to an employee-choice approach. And there is increased interest in skills-based volunteerism.

Return on Investment

Partnerships and relationships are key to aligning a nonprofit's mission with corporate values. Prosperity 2020, "the largest gathering of business leaders ever united to help improve education in Utah," is an excellent example of this trend. These businesses, including a few nonprofits, joined together to create and fund their own nonprofit organization to focus on a common mission crucial to their bottom line: an educated workforce.

The trend toward employee choice and input in grant-making is also evident here. Some companies are choosing to match employee giving to whichever cause they support--important in an increasingly diverse workforce. Love UT Give UT, the recent statewide day of giving, reflected this trend. Dozens of companies, including Integracore, matched gifts to hundreds of schools and nonprofits across Utah, letting the interest of the employee drive giving...