Around two-fifth (42%) of employees would use payroll giving if their employer offered it, according to a survey commissioned by the Royal Bank of Scotland (RBS) and the Charities Aid Foundation (CAF) to measure people’s awareness and perceptions of payroll giving. £95m is currently given through the payroll, but that money is generated by only 2% of all tax-payers. According to Cathy Pharoah, director of research at CAF, the survey found that “an amazing 78% of employees have given to charity at work over the last year. It is a lost opportunity that most of this is not given tax-efficiently”.
Typical payroll givers are men between the ages of 30-49 – a younger profile than for other types of giver. Employees say they like payroll giving because it is convenient, tax-efficient, a regular way of giving, and donations can be employer-matched. Contact Cathy Pharaoh, CAF 01732 520 000 CAF ( http://www.cafonline.org.uk)
GIVING ON THE BOX
The Royal Bank of Scotland teamed up with the NSPCC, Cancer Research UK and Oxfam to raise awareness of payroll giving in a series of television advertisements over the summer. Contact Carolyn McAdam, RBS 020 7672 1914 ( http://www.rbs.co.uk)
E-FUNDRAISING CODE
The Institute of Fundraising in July announced the release of a revised draft code, Fundraising through Electronic Media . The code updates the Internet Fundraising code of 2001 to cover all forms of electronic media, including SMS (short message service) and interactive TV. The revised code incorporates developments in new media fundraising techniques and addresses broader issues including online brand management and fundraising ethics, legal and tax points and accessibility and usability. The draft is published online, and is open for consultation until October 21. Contact Lucinda Frostick, Institute of Fundraising, 020 7840 1015 ( http://www.institute-of-fundraising.org.uk)
GUIDING BEACON
UBS Wealth Management and the Vodafone UK Foundation in July announced a new joint partnership with the Beacon Fellowship Charitable Trust, a not-for-profit that encourages individual contributions to charitable and social causes. Together they will share expertise and ideas to support the Beacon Fellowship promote giving in the UK. Beacon chairman, Martyn Lewis, said: “This is a powerful example of how global companies can connect with the community by getting involved with great projects that are happening at grass roots level right across the country”. Contact Ally Stevens, Vodafone 01635 33251 ( http://www.vodafone.co.uk)
US CORPORATE GIVING
Corporate giving in the US accounts for 1.3% of pre-tax profits, according to a survey published by the Committee to Encourage Corporate Philanthropy (CECP). This figure is higher than the previous two years, but it falls short of the 1.4% reported in 2001. The survey covered 71 US companies, including 30 in the Fortune 100, who together contribute $7.56bn to community projects around the world. The survey reports that non-cash contributions account for 28% of total giving, rising to 70% for healthcare companies. Most corporate giving (49%) is ‘charitable’, defined as giving without business benefits. 36% of giving is described as ‘strategic’ (community and business benefits) and 15% as ‘commercial’ (primarily business benefits). Contact Margaret Cody, CECP 00 1 212 825 1255 ( http://www.corphilanthropy.org)
COUNT ME IN
Count Me In , the charity campaign calendar, is in advanced discussions with a new sponsor, as Whitbread bows out at the end of October. Count Me In is also taking the opportunity to redesign its website to feature a comprehensive listing of not-for-profit events, broadening beyond charity campaigns to calendars relating to environment, peace, youth, disability, local charity events and sport. Count Me In is looking for new companies to sponsor each calendar, which will provide them with content to highlight their products, their CSR programme, and their opportunities. The sponsorship package will provide them with a dedicated editor who will work full-time to ensure both the listing and their content is comprehensive and contemporary. Count Me In has around 11,000 unique users a month and more than 2,000 external sites linked to it, including major educational, charity, local government and media sites, including the BBC. In 2004, the Whitbread Count Me In Calendar won the Charities Aid Foundation Innovation – Corporate Community Investment with a difference award. Contact Gareth Jenkins, Count Me In 01751 430 116 ( http://www.countmeincalendar.info)
CHARITY TRENDS
The banking sector is beginning to dominate corporate giving, according to the Charities Aid Foundation’s (CAF) annual publication Charity Trends 2005 . The report reveals that five out of the top seven corporate donors during the last financial year are banks – Lloyds TSB, Royal Bank of Scotland, HSBC, Barclays and Northern Rock – contributing almost one fifth of all donations made by the top 500 companies – although GlaxoSmithKline tops the table for the fourth year in a row. As well as providing information on the financial contributions of the top 500 companies in global community involvement, the report also charts the income and expenditure of the UK’s top 500 fundraising charities. Contact Cathy Pharaoh, 01732 520 000 CAF ( http://www.cafonline.org.uk)
Another edition of CAF’s Charity Trends, packed with facts and figures about the UK’s third sector. Despite recent strong growth in reported contributions, CAF estimates business provides just 3.3% of sector income, half the level in America. Banks are the biggest donors, reflecting the sector’s size and success in the UK economy. One under-researched area is the role of corporate foundations. CAF notes 37 of its top 500 foundations are corporate, which raises worries about double-counting or even understanding of company contributions. One area of overstatement is the valuation of in-kind contributions such as medicines, where (following US practice) the profit margin is included. Here CAF places GSK top of its league table, apparently seven times more generous than the next largest donor, RBS. CAF acknowledges the issue but continues to attribute fully one third of top 500 corporate donations to one company.
COMMUNITY
BRING US THE BILL
Lloyd’s of London , the insurance market, has won Corporate Social Responsibility Project of the Year at the British Insurance Awards , presented in July. The company was recognised for its police-mentoring programme that matched around 30 of its senior members of staff with police in three London boroughs to share skills in change management, business planning, and personal development. Recent crime statistics published on the Metropolitan Police website show a drop in total crimes in participating boroughs. Lloyd’s says it is “proud” of its contribution to the “improving picture” in the areas concerned. Contact Caroline Daniell, 020 7327 6256 ( http://www.lloyds.com)
INVESTING IN WOMEN
ExxonMobil in July announced a new community investment initiative for women in the developing world. Educating Women and Girls will fund nine educational projects in Angola, Chad, Kazakhstan, Qatar and Indonesia, and another two international projects. The company will spend $3m in 2005 on the programme. Rex Tillerson, Exxon president, says: “The research is clear that improvements in education and increased opportunities for women and girls serve as a foundation for economic growth, development and societal progress”. Contact ExxonMobil 01372 222000, ( http://www.exxonmobil.co.uk)
ABACA DABRA
DaimlerChrysler has launched a programme to promote the sustainable growth of abaca bushes in the Philippines, in partnership with the German Investment and Development Association (DEG) and Hohenheim University. The company started using fibres from the abaca plant in the manufacture of Mercedes-Benz A-Class vehicles a year ago, significantly reducing carbon dioxide emissions as the production of natural abaca fibres uses 60% less energy than the glass fibres used previously. Contact DaimlerChrysler 00 49 711 170 ( http://www.daimlerchrysler.com)
PEST CONTROL [b] [b] Rentokil Initial is helping to fund a new community initiative, the Youth Entertainment Sound System project (YESS), designed to divert young people from crime using the performing arts. The project is run by the Safer London Foundation (SLF), a group of community representatives, the Metropolitan Police and businesses, which funds community-based crime reduction projects to make the capital safer. Rentokil is the programme’s foundation partner. IAs well as a financial contribution, the company will also second graduate trainees for 6-month periods to help manage the community projects. The company hopes to use its involvement in SLF to encourage its London employees to volunteer in their communities. Contact Tony Stephens, Rentokil Initial 01342 833 022 ( http://www.rentokil-initial.com)
COMMUNITY OUTFIT
Levi Strauss held its first-ever Community Day in Europe in June. The Brussels-based event aimed to open the company’s doors to local associations, provide corporate support to the community and encourage employees to volunteer in social and environmental projects. Over three-fifths of Levi’s Brussels employees signed up for at least one of 13 different projects. Contact Cedric Jungpeter, Levi Strauss Europe, 00 32 2 641 6580 ( http://www.eu.levi.com)
SPORTS PITCH
Business and development organisations have not harnessed the potential of sport to achieve social goals, the International Business Leaders Forum (IBLF) argues in a policy paper published in June. Shared Goals – Sport and Business in Partnerships for Development was produced jointly with UK Sport, whose International Development Assistance Programme supports projects that promote human development through sport around the world, outlines the business benefits of strategic partnerships around sport, including managing business risk and reputation, and opportunities to fulfil community responsibilities. Robert Davies, CEO of the IBLF said: “Sport captures the imagination, communicates messages, raises aspirations and rewards effort, values often reflected in business. This alone is a persuasive case for business involvement in sport initiatives”. Contact Rachel Faulkner, IBLF 020 7467 3616, ( http://www.iblf.com)
Editorial Comment
After the remarkable London Olympics decision, sport is very much in the news. Cynically viewed, the first result will be pressure on companies to help fund the huge costs through sponsorship – lest we forget the Millennium Dome fiasco. For some, there will be real commercial opportunities, but for others the business case for conventional sponsorship will be thin. So the IBLF’s report on the potential for wider impact from sport is timely.
One problem is that companies need partners who appreciate the potential and can work to achieve the social advantages. In the UK, the big football clubs are starting to get the message, but few other sports are as well advanced. Another problem is that corporate contributions to sporting activity are not tax deductible unless viewed as a business expense – fine for pure sponsorship but not necessarily otherwise. In the US, donations to the Olympic movement are eligible under 501(c)3 – the equivalent of charity registration – but not in the UK. Over to Gordon Brown.
COMMENTS