Latest figures on corporate contributions show a more confusing picture than the usual story of UK companies lagging their US counterparts in the generosity stakes.
US giving on the up
Company contributions by the top 200 US corporations reached 63.9 billion in 2000, a rise of over a sixth (17%) on the previous year. Derived from the Conference Board’s annual survey published on January 17, the figures do not take into account the growth in donations after the events of September 11. Corporate giving by all US companies, inclusive of corporate foundation grants, amounted to 610.9 billion in 2000, according to the 2001 edition of Giving USA, the most authoritative survey. This Conference Board study of the top 200 also found: ?? US contributions as a percentage of US pre-tax income fell from 1.2% to 1.0% in 2000; on the same basis, contributions per employee fell from 6439 to 6336;
in-kind giving (generally valued at market prices, not cost), is especially high in pharmaceutical and IT sectors, accounting for a third of the total – 61.3 billion of the 63.9 billion reported by the top 200;
over three quarters (77%) have a corporate foundation;
international giving is up strongly on the previous year (+28%) – a third of respondents made overseas charitable contributions during 2000.
UK charities received 4.9% of their income from companies, worth £755 million in the year ending March 2001, according to the UK Voluntary Sector Almanac. Based on estimates from a survey of charities’ own accounts, the total is made up of cash donations worth £325 million, with the balance from earned income such as sponsorships and payments for services (see table below). Published on January 10, the study says the gross income of the sector is now £15.6 billion, up nearly a third in real terms since 1991. The sector employs almost 563,000 people, 2% of the workforce.
The study says the amount contributed by companies is less now than a decade ago. A rise in giving since 1995 has not been enough to counter a big fall in the early 1990s. In contrast, the annual survey by the Directory of Social Change, based on data provided by companies themselves, shows steady growth in the amount contributed, up by two-thirds on the decade. The DSC’s latest estimated annual total is £414 million, based on the top 400 contributors only and using a narrower defintion than NCVO. Contact James Georgalakis, NCVO, on 020 7520 2468 (http://www.ncvo-vol.org.uk)
Big charities cream off gifts
The country’s largest charities are benefiting most from corporate philanthropy, with the top forty receiving one in every seven pounds (£111 million) donated during 2001, according to Corporate Citizen magazine’s annual survey of charity fundraising (see table, above right). Contact Alison Benjamin, Corporate Citizen, on 020 7391 4880 (http://www.dsc.org.uk/ corporatecitizen)
news in brief
DHL announced on January 16 that it had reached the £100,000 target for its Challenge for Childline campaign, a matched giving initiative launched in February 2001 in aid of the free helpline for children. Contact Kate Hanson, DHL, on 020 8818 8049 (http://www.dhl.com)
Centrica is already £50,000 ahead of its June 2002 target to raise money for the Cystic Fibrosis Trust, after its staff donated £200,000 to the campaign between April 2001 and the year end. Contact Jo Bayliss, Centrica, on 01753 494 075 (http://www.centrica.co.uk)
The Royal Bank of Scotland announced in December that its new payroll giving scheme – £2 matching for every £1 that staff contribute up to £100 per month (see Briefing 59)- is generating nearly £400,000 per month for charity. Contact Allan Watt, RBS, on 0131 556 8555 (http://www.royalbankscot.co.uk)
Deloitte & Touche has seen its annual payroll giving figure double to £340,000 over 2001, according to figures released on January 29. The accountancy firm is setting itself the new target of £500,000 in payroll contributions over the next year. Contact Richard Stone, Deloitte, on 020 7303 7149 (http://www.deloitte.co.uk)
The £438,000 raised from the sale of Marks & Spencer’s charity Christmas cards will be split equally between six nominated charities. Contact Amy Kitson, Marks & Spencer, on 020 7268 1919 (http://www.marksandspencer.co.uk)
Editorial Comment
Everyone knows that in America companies are much bigger supporters of charities than in the UK, don’t they? In fact, Giving USA says companies provide 5.3% of voluntary sector income, compared to NCVO’s 4.9% UK estimate. And they are more generous, aren’t they? Actually, that 1% of pre-tax profits falls to 0.7% when the sums are done using worldwide earnings. And they fall again, when the inflated in-kind giving figures are excluded too. The best calculation for UK top companies is 0.44%, according to the Directory of Social Change. That would rise, if there was better reporting ¨C some LBG (London Benchmarking Group) members are able to report up to a third more, just by applying a consistent methodology.
Suddenly the gap does not look so large. Time for NCVO to correct its misleading assertions that UK companies are mean in giving less than a fifth of US levels. But if users of this data need to get smarter in interpreting it, providers in the form of companies have to get smart too. The financial illiteracy of The Guardian’s Giving List last autumn (presenting UK contributions as a ratio of worldwide profits, for example) can in part be explained by companies not coming clean about what they contribute, where, how and to whom. It’s not wilful mendacity, just inertia, and until it’s fixed, the accusation will continue to be levelled that companies don’t do enough.
That said, the latest figures for individuals in the UK shows we give just 0.6% of our income each year on average. If companies are mean, they are only reflecting trends in society.
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