VolunteerMatch Solutions BPN Webinar: Corporate Giving (& Volunteering) in Numbers

Corporate Giving
(& Volunteering) In Numbers:
A Look at Studies from CECP & VolunteerMatch

Margaret Coady Casey Brennan
Director Marketing & Insights Manager
Committee Encouraging Corporate Philanthropy VolunteerMatch
(CECP)

January 22, 2013

How To Ask Questions

• Type questions into the box on the
right side of the your screen

• Submit via Twitter to
@VM_Solutions using “#VMbpn”

• We will pose questions at the end of
the presentation

• A copy of the sides will be circulated
after the event

2

Corporate Giving (& Volunteering) in Numbers:

Margaret Coady
Director
Committee Encouraging Corporate Philanthropy
Mcoady@CorporatePhilanthropy.org
Twitter: @MargaretCoady

3

Introduction to CECP
Who We Are
 Nonprofit organization founded in 1999
 International forum of corporate CEOs and
chairpersons.

What We Believe
 Philanthropy is a long-term investment
 Executive leadership is essential
 Corporations have unique resources
Who is Engaged
 Over 180 CEOs and Chairpersons
 Companies from each industry sector
“I helped to start CECP with
Our Strategic Focus the belief that corporate
 Represent the CEO voice. America could be a force for
good in society.”
 Own the standard on philanthropy practice
- Paul Newman
and measurement

#VMbpn @CaseyB @VM_Solutions @CECPtweets @MargaretCoady
4

Members Snapshot

5

Audience Poll Question

Who is joining us today?
1. Corporate Grantmaker
2. Non-Corporate Grantmaker
3. Nonprofit
4. Consultant
5. Academia

6

Key Trends

► Context: The Current State of Corporate Philanthropy

► Focus: Fewer Grants, Larger Dollar Values, Fewer Issue Areas

► Unique Assets: Non-Cash Giving and Employee Engagement

► Shared Value: A Higher Form of Capitalism

► Tips and Ideas

7

Corporate Giving Standard Survey and Trend Report

• Annual survey of Global 500 companies on the
scope and scale of their philanthropy.

• Conducted each spring in association with The
Conference Board.

• 214 companies participated in the most recent
survey.

• Includes cash giving from the corporation, corporate
foundation giving, and non-cash giving (including pro
bono service).

• The survey, valuation guidance, and report are all
available as free downloads.

8

Context: The Current State of Corporate Philanthropy

Company Size
 Revenue = $16.6 billion
 Pre-Tax Profit = $ 2.5 billion
 Employees = 38,000

Contributions
 Total Annual Giving = $21.0 million
 Corporate Cash 46%
 Corporate Foundation Cash 35%
 Non-Cash 19%

Structure
 Have a Foundation = 82%
 Total Staff = 8 staff
 Administrative Costs = 7% of total giving

9

Context: Giving Trends Since the Economic Downturn

2007: Despite the economic warning signs that surfaced in late summer, total giving
was decisively up for the year. A strong majority of companies increased giving from
2006 to 2007, with a quarter of companies bumping up their giving by 25% or more.

2008: Corporate profits hit rock bottom as AIG, Lehman, Merrill, and the Big Three
automakers made headlines. Yet strong performance until those fateful third and fourth
quarters meant giving held steady with few companies increasing or decreasing their
giving by significant amounts.

2009: Though profits crept back up over the course of the year, this is when the data
showed a drop in corporate giving with forty percent of companies cutting giving by 10%
or more. Many companies tried to compensate with product donations as cash was in
short supply across the company. Few companies were taking on new projects or
nonprofit partners.

2010: Profits surged back for many companies, though some industries were still
awaiting their recovery. Giving across the group was at extremes: half of companies
posted giving levels much higher than in 2007 and the other half much lower, with few in
between. Cash giving made a big comeback for companies able to give more.

10

Context: Aggregate Total Giving Rose +8%
► From 2009 to 2010, there was an 18% increase in total giving
► This growth is partially explained by significant corporate mergers

2009-2011: Aggregate Total Giving

+ 8% $15.7 billion
+ 18%
$14.6 billion

$12.3 billion

2009 2010 2011

Note: Inflation-Adjusted, 3-year matched-set, N=144

11

Context: The Majority of Companies Gave More in 2011
► While some companies are well below 2009 levels, the majority are way up
2009-2011: Distribution of Companies by Changes in Total Giving
Total Giving Decreased for 34% of 6% Flat Total Giving Increased for 60% of
Companies from 2009 - 2011 Companies from 2009 - 2011

33%

48% of
companies
Percentage of Companies

15% 15%

12%
10%
9%

6%

<-25% -25% to -10% -10% to -2% Flat 2% to 10% 10% to 25% > 25%

Percentage Change in Total Giving

12

Key Trends





► Tips and Ideas

13

Focus: Fewer Grants, Larger Dollar Values
2009-2011: Grants per Contributions FTE and Grant Size, Medians

$40,000 80

78
$37,248

73

$30,000 $31,145 70
$30,115

62

$20,000 60
2009 2010 2011
Grant Size Grants per Contributions FTE


14

Focus: Fewer Issue Areas

► Only 4% of companies are highly dispersed in their giving (defined as less than 20%
giving in all program areas)
► Over 31% of companies give 50% or more to one program area and 81% of
companies give 20% or more to either Education or Health and Social Services
2009-2011: Percentage of Companies that Give Greater Than 20% to a Focus Area
54%
48%

36% 35%

11%
7%
4% 4%

0 focus areas 3 focus areas 2 focus areas 1 focus area

Highly Dispersed;
Highly Focused
No Clear Focus
2009 2011
Note: 3-year matched-set, N=89

15

Audience Poll Question

Complete this headline: Companies are
more focused because…

1. …they are more thoughtful and strategic about
where they give.

2. …fewer staff and management resources are
causing them to be more efficient.

16

Key Trends





► Tips and Ideas

17

Unique Assets: Non-Cash Giving and Employee Engagement

ADVICE from CORPORATE GIVERS:

“We have more to give than cash”

…Companies want to be more complete
partners to their nonprofits.
…Companies are increasingly seeking ways
to blend their tangible and intangible
assets with cash grants

18

► Utility, Financial and Industrial companies show over 90% in cash giving
► Health Care and Consumer Discretionary have over 40% in non-cash giving
2011: Total Giving by Funding Type, Average Percentages

All Companies, N=214 46% 34% 20%

Manufacturing, N=87 45% 29% 27%

Service, N=127 46% 39% 15%

Consumer Discretionary, N=31 37% 23% 40%

Consumer Staples, N=16 46% 16% 38%

Direct Cash
Energy, N=7 73% 11% 17%
Foundation Cash
Financials, N=52 47% 48% 5% Non-Cash

Health Care, N=26 32% 21% 47%

Industrials, N=27 45% 48% 7%

Information Technology, N=21 49% 29% 22%

Materials, N=11 54% 36% 10%

Utilities, N=19 58% 39% 3%
Note: Excludes Telecom Services companies due to small sample size

19

The Volatility of Non-Cash Giving
2009-2011: Median Percent Change by Funding Type

Co mp anies wi th Decreased Gi ving Co mp anies wi th I ncreased Gi ving
n=48 n=87

32 %
26 %

10 %

Di rect Cash Fo und atio n C ash No n-Ca sh Di rect Cash Fo und atio n C ash No n-Ca sh
-8%
-12 %

-47 %


20


Spectrum of Employee Engagement Opportunities

21

Bringing Employee Engagement Programs Abroad
► 52% of reporting companies (76) have at least one formal employee
engagement program internationally

33% 2009-2011: Percent of Companies with International Employee Engagement Programs

28%
26% 26% 26% 26%
25% 25%

21% 21%
19% 19%
17%
16%
14%
12%
11%
10%
8% 8%
7%
4%
1%1%

Employee Company Paid- Flexible Family Dollars for Team Board Pro-Bono Retiree Incentive Other
Volunteer -Wide Day Release Scheduling Volunteering Doers Grants Leadership Service Volunteering Bonuses
Awards of Service Time
2009 2011
Note: 3-year matched-set, N=145

22

Key Trends





► Tips and Ideas

23

Leading Social Change through Business Strategy

The Big Idea:
How to Fix Capitalism and Unleash a Wave of Growth

SHARED VALUE
Policies and operating practices that enhance
the competitiveness of a company while
simultaneously advancing the economic and
social conditions in the communities in which it
operates. Shared value focuses on
identifying and expanding the connections
between societal and economic progress.

24

CECP Research Asks: What’s Next?
Shaping the Future:
Solving Social Problems through Business Strategy

▪ What will the next decade look like, and what are the
implications for corporate involvement in solving social issues?
▪ How can corporations position themselves now to maximize
their profitability and societal impact?

Business at its Best:
Driving Sustainable Value Creation

▪ Investigates how socially-sustainable practices can be
integrated into core business strategy, the implementation
obstacles, and how companies have developed scalable
solutions to overcome these obstacles.

25

Leading Social Change through Business Strategy

26

Key Trends





► Tips and Ideas

27


Companies and nonprofits want to be great partners!
• Don’t assume that a company sees a nonprofit’s “pain points and visa versa! Be
real about your challenges and try to propose solutions.
• Set expectations and start a discussion on opportunities and limitations (on both
sides) early. Don’t postpone the “hard details”; engage in a spirit of joint problem-
solving.
• Management costs money (on both sides)! Set a realistic budget for items like
managing volunteers, measuring impact, handling product donations, etc.
• Listen to your gut: sometimes you may need to tell a donor (or recipient) “no.”

28

Valuation Guidance: Next Steps

1. Download CECP’s free resources
www.corporatephilanthropy.org
• “Giving in Numbers”
• Survey Valuation Guide
• “Developing the Global Guide to What Counts”

2. Take part in International Corporate Philanthropy Day
• Coming up: February 25, 2013
• A media platform and day to celebrate your great
work!
• Ideas and resources available on CECP’s website

3. Companies: Complete the survey of 2013 giving
• Contact Mstroik@CorporatePhilanthropy.org

29

THANK YOU

Corporate Giving (& Volunteering) in Numbers:

Margaret Coady
Director
Committee Encouraging Corporate Philanthropy
Mcoady@CorporatePhilanthropy.org
Twitter: @MargaretCoady

30

2012 VolunteerMatch EVP Client
Insights Survey

January 22, 2013

Casey Brennan
Marketing & Insights Manager
VolunteerMatch
@CaseyB | @VM_Solutions

31

About our Insights Program

How We Define Insights:
Actionable, measureable recommendations
based on experience or analysis.

How You Can Participate:

blogs.volunteermatch.org/volunteeringiscsr

Download the 2012 VolunteerMatch EVP Client Insights Survey at:
http://solutions.volunteermatch.org/volunteermatch-insights 32

About the Survey

Approach:
Fielded August 19 – September 14, 2012
among 97 current VolunteerMatch clients
with EVPs with a response rate of 45
percent. Outlier data removed for
accuracy.

Goals:
• Benchmark EVP inputs
• Inform client programs & identify
opportunities
• Provide best practices for all EVPs


BCCCC Evaluation Findings

VolunteerMatch
Driver Indicators Fortune 500
Clients
• Cause focus
Cause-Effective • Asset leveraging
Configuration • Philanthropic integration 50% 38%
• Productive partnerships
• Business goals
Strategic Business • Aligned infrastructure
Positioning • Resonant cause(s) 45% 32%
• Integration with corporate citizenship
• Facilitative procedures
• Formal encouragement
Culture of • Business department support
Engagement • Middle-management outreach 57% 36%
• Senior management modeling
• Accessible information

• Participation metrics
• Volume metrics
Actionable • Employee feedback
Evaluation • Nonprofit feedback 48% 28%
• Business outcomes metrics
• Social sector outcomes metrics

Drivers of Effectiveness in Employee Volunteering & Giving Programs Benchmarking Survey Tool 2008-2010
www.volunteerbenchmark.com
34

True Impact ROI Findings

True Impact Volunteerism ROI Tracker Results, 2012
35

What we learned…

PROGRAM PROFILE

36

Program Age: Young at Heart

48%
50

40

% of 30
6 yrs
total Average Age
21%
20
12% 11%
6%
10 3%

0-2 3-5 6-8 9-11 11-13 13-15 15+

# Years

Managed by Specialty Depts.

Common Departments Tasked with EVP Management

Corporate Philanthropy/Community Involvement 21%
42%
Corporate Responsibility/CSR 21%

Marketing/Communications 15%

External Relations/Corporate Affairs 13%

Corporate Foundation 13%

Human Resources 10%

Other 8%

0% 5% 10% 15% 20% 25%


Large Program, Lean Staff

32,871
Eligible
Employees

1
Program
Manager

Making it all work…

PROGRAM SUPPORT

40

Volunteer Committees Popular

Does your organization have
volunteer committees/councils to
help support the program staff?

• 71% Yes
• 29% No
Commonly organized by:

Geography/Location – 72% Centralized at HQ – 32% Department – 24%

41

Dreaming of More Resource$

I dream of
$61.79 per
I have
employee
$37.78 per
employee

Participants believe they need
64% more budget to run an
optimal program
42

Leadership Involvement
Important

Average C-Level Involvement in an EVP 51%
35%

30%

30%
27%
25% 24%

20%

15%
15%

10%

5% 3%

0%
1 2 3 4 5
Low High
Level of Involvement


What it looks like…

PROGRAM ATTRIBUTES

44

Stronger with Nonprofit Partners

Have strategic or national nonprofit partnerships for their program
62%

Average number of strategic nonprofit partners 4

Rally Action with Service Events

74%
Host a day, week,
or month of service


How To Recognize & Incentivize

How Employee Volunteers are Recognized
& Incentivized
70%

59%

60% 56%
53%
50%
50%
41% 41%
40%

30% 26%

20%

10%

0%
Thank You Dollars for Public Contests & Volunteer Team Grants Other
Letters Doers Recognition Giveaways Awards
Type of Recognition or Incentive


High Engagement with Paid
Volunteer Time Off (PVTO)

17 hours per
employee per
year


Skilled Volunteering Low

Composition of a Typical Employee Volunteer Program

4%

13%
Traditional Volunteering

Skilled Volunteering

Pro Bono Volunteering

Micro Volunteering (<1%)

83%


What to pay attention to…

PROGRAM EVALUATION

50

Multi-Point Evaluation

Common Metrics for EVP Evaluation
Number of Employee Volunteers 94%

Number of Volunteer Hours 88%

Number of Assisted Nonprofits 62%

Employee Interest/Participation 56%
Metric

Event Feedback 41%

Social Value Generated 38%

Impact on Cause Area(s) 29%

Management Interest/Participation 26%

Skilled Volunteering Hours 24%

Other 12%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Percentage of Companies who Track Using this Metric


Population & Interest Important

Most Important Metrics Used for Program Evaluation

3%

Number of Employee Volunteers
9%
Employee Interest/Participation
35%
15% Number of Volunteer Hours

Impact on Cause Area(s)

Other
15%
Event Feedback
24%

52

Reported Benefits

Important Benefits of Employee Volunteer Programs
100%
Employee Engagement

Employee Morale 68%

Corporate Reputation 62%

Employee Recruitment and Retention 44%

Professional Development 26%

Business ROI 21%

Other 3%


Tips for Program Success

1 Track, measure &
report like crazy

2 Identify program
champions

3 Integrate staff skills
& expertise

4 Evolve, adapt &
repeat!
54

Do you have any

QUESTIONS?


Q&A

• Type questions into the box on the
right side of the your screen

• Submit via Twitter to
@VM_Solutions using “#VMbpn”

56

Stay Informed

Blog:
www.VolunteeringIsCSR.org

Twitter:
@VM_Solutions

Newsletter:
Monthly ‘Good Companies’
newsletter - Sign up on the
blog!

57

Save the Date – Feb 12th

Delivering Business Value
from Corporate Citizenship
Tuesday
February 12, 2013
10-11 a.m. PT (1-2 p.m. ET)

Featuring:
Katherine Smith
Executive Director
Boston College Center for Corporate Citizenship

Register:
https://www1.gotomeeting.com/register/481845000

58

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