Company giving in the UK is on the rise again, with the amount given and the percentage of pre-tax profit up for the third year running. Figures published by the Directory of Social Change in July, based on returns from the top UK 500 companies, show the total community contribution in 1998/99 was £429 million, up from £399 million the year before. An analysis of the top 400 shows the pre-tax profit percentage given up from 0.40% to 0.44%.
The DSC says better accounting has helped boost the reported total but it is still “a long way short of what is actually given”, especially as fewer than a quarter of the companies gives a figure for contributions beyond cash donations. Wider contributions are roughly twice the value of donations. The Guide to UK Company Giving , published each year, provides detailed entries on over 500 companies, each giving more than £30,000 in charitable donations in 1998/99. Contact John Smyth, Directory of Social Change, on 020 7209 5151 (http://www.dsc.org.uk)
US corporate giving tops 611 billion
Charitable giving by US corporations reached 611 billion in 1999, according to the AAFRC Trust for Philanthropy ‘s annual Giving USA study. Up by 14% on the year before, corporate giving is worth 1.3% of pre-tax income, based on philanthropic contributions and foundation grants, not marketing dollars nor other expenditures benefiting charities. The survey says total US giving to charities now exceeds 6190 billion a year, of which companies account for 5.8%. Contact AAFRC on 00 1 888 544 8464 (http://www.aafrc.org)
Engaging business in Australia
The first ever comprehensive study of corporate community involvement in Australia was published in Canberra on July 26. Citing estimates of business support for non-profits of AUS61.8 billion (approx. £700 million), it found just under one fifth (19%) going to education, followed by cultural activities (15%) and environment (14%). Based on research among 70 companies, the 150-page report includes case studies of Proctor & Gamble, Ford, Rio Tinto, BHP, BP, Unilever and others. Corporate Community Involvement: Establishing a Business Case was prepared in association with the Business Council of Australia , as part of a government-backed initiative to engage more companies. Contact Community Business Partnership on 00 61 2 9256 4444 (http://www.accpa.com.au)
630 million Shell Foundation
The Royal Dutch / Shell group of companies has established a separate global foundation to fund sustainable energy and social investment projects around the world. Launched on June 5 with an initial 630 million commitment, the Shell Foundation has three main programmes:
? Sustainable Communities – focusing on the social and economic capacity of marginalised communities;
? Youth Enterprise – building on the success of Shell LiveWire, to help young people establish their own businesses;
? Sustainable Energy – projects that encourage environmentally cleaner energy use or help tackle poverty by providing sustainable energy to poor communities in developing countries.
Already identified are 20 sustainable energy projects worth 67 million, including a UK project to educate school children, their parents and teachers about the benefits of saving energy. The Foundation complements Shell’s existing 693 million social investment contribution around the world. Two of its five trustees are external experts. Contact Shell Foundation on 020 7934 2727 (http://www.shellfoundation.org)
Grantmaking made easy
Levi Strauss has supported the development of an on-line grantmaking system by the Charities Aid Foundation which allows non-profit agencies to apply for grants quickly and cheaply over the internet. The system will initially be used to distribute funds totalling nearly one million dollars from Levi’s Donor Advised Fund , but other companies will be able to use the system in future. Contact Zoltan Valcsicsak, Levi Strauss, on 00 36 1 327 76 00 (http://www.levistrauss.com)
Comment
The Directory of Social Change says the work of the Per Cent Club and the London Benchmarking Group is having a marked impact on the quality of data reported on community contributions within the UK. That can only be good news, both for the community sector in understanding what resources are available, and for companies in managing their programmes. The Club in particular has moved from its early philanthropic approach to embrace the ‘business case’ valuation methods, including commercial initiatives in the community, pioneered by the LBG. Indeed in its own definitions, the DSC is now really only questioning inclusion of management costs, preferring to show the net amount actually available to charities. This means that at last there is broad agreement in the UK on valuing the cost of the community contribution.
Now the focus of effort must move to assessing what that contribution actually achieves, for company and community. Due out in October is a practical guide on such outputs and impacts from the LBG follow-up group of 18 companies, marking the end of its research work. Then a much wider benchmarking group is likely to be formed, helping to spread best practice in Britain.
Outside the UK, interest is growing in learning about the methodology. In South Africa, a benchmarking group is being formed; in Australia and Canada, the feasibility is being explored. In continental Europe, individual companies in Italy, Portugal and elsewhere are using the LBG model. For international companies, all this can only help. As yet lagging behind is the US, where philanthropy is so entrenched, take-up of a business case approach is proving slow.
The Directory of Social Change says the work of the Per Cent Club and the London Benchmarking Group is having a marked impact on the quality of data reported on community contributions within the UK.
The Directory of Social Change says the work of the Per Cent Club and the London Benchmarking Group is having a marked impact on the quality of data reported on community contributions within the UK. That can only be good news, both for the community sector in understanding what resources are available, and for companies in managing their programmes. The Club in particular has moved from its early philanthropic approach to embrace the ‘business case’ valuation methods, including commercial initiatives in the community, pioneered by the LBG. Indeed in its own definitions, the DSC is now really only questioning inclusion of management costs, preferring to show the net amount actually available to charities. This means that at last there is broad agreement in the UK on valuing the cost of the community contribution.
Now the focus of effort must move to assessing what that contribution actually achieves, for company and community. Due out in October is a practical guide on such outputs and impacts from the LBG follow-up group of 18 companies, marking the end of its research work. Then a much wider benchmarking group is likely to be formed, helping to spread best practice in Britain.
Outside the UK, interest is growing in learning about the methodology. In South Africa, a benchmarking group is being formed; in Australia and Canada, the feasibility is being explored. In continental Europe, individual companies in Italy, Portugal and elsewhere are using the LBG model. For international companies, all this can only help. As yet lagging behind is the US, where philanthropy is so entrenched, take-up of a business case approach is proving slow.
COMMENTS