Corporate America behind on philanthropy

Posted on June 28, 2012 by Richard Schwartz

Research on the levels of post-recession corporate philanthropy indicates that American corporations are trailing their peers in other countries.

A recent report from the Committee Encouraging Corporate Philanthropy (CECP) and The Conference Board indicates that worldwide corporate giving grew last year and is now approaching pre-recession levels. Corporate America, however, has reached its lowest levels of philanthropy since the 1970s.

In its annual Corporate Giving Standard (CGS) survey, the two organisations found that of their respondents, 60% had increased their total giving between 2009 and 2011, with 48% of companies doing so by more than 10%. "Companies are still waiting to see how the economy will rebound, and as such, corporate giving officers are pursuing new programs to make their giving more focused and in line with core business strategies," noted Jonathan Spector, president and CEO, The Conference Board. The survey received its largest number of responses ever with 214 participants, including 62 of the top 100 companies in the Fortune 500.

However, in late June, numbers from the Giving USA report, prepared by the Center on Philanthropy, painted a less optimistic picture, showing American corporate philanthropy down by 0.1% in 2011, while giving by individuals rose by 3.7%. "Corporations are clearly not stepping up," commented Patrick Rooney, executive director of the Center. The Giving USA report shows that corporations accounted for only 5% of the nation's total giving in 2011.