Corporate Giving in Canada: The Latest Data, Trends, and...
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Corporate Giving in Canada: The Latest Data, Trends, and Implications Steven Ayer
Transcript of Corporate Giving in Canada: The Latest Data, Trends, and...
Corporate Giving in
Canada: The Latest Data,
Trends, and Implications
Steven Ayer
Businesses want happy
stakeholders
• Employees
• Executive teams
• Middle managers
• Customers
• Government representatives
• Communities
• Charities
General trends facing corporate
philanthropy • Give more if its profitable
• Make more people aware of what they’re
doing
• Measure benefits whenever it makes sense
• Manage increasing demands
• Deal with changing technology
• Increasing expectations from everyone
• Technology makes it easier to communicate
the work being done
Total claimed corporate donations
($ millions, 1961-2009)
2,295
0
500
1000
1500
2000
2500
3000
19
61
19
64
19
67
19
70
19
73
19
76
19
79
19
82
19
85
19
88
19
91
19
94
19
97
20
00
20
03
20
06
20
09
Corporate
donations
have generally
been
increasing
over time
Source: Statistics Canada, Table 380-14
Corporate Donations as a Percentage
of Pre-Tax Corporate Profits
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
1961
1964
1967
19
70
1973
1976
1979
1982
1985
1988
19
91
1994
1997
2000
2003
2006
2009
There is a
slight upward
trend in
donations as a
% of profits,
with a few big
bumps
Source: Statistics Canada, Table 380-14
That Data is Not “Accurate”
• Most corporations do not bother to claim donations on tax returns
• Only 3% of businesses claimed a donation on their tax return in 2003
• Corporate sponsorships, donations or grants were estimated at $2.8 billion in 2003
• Canadian businesses claimed $1.2 billion in charitable donations on their 2003 tax returns.
• The estimate of the TOTAL size of the sponsorship market in 2006 was $1.1 billion
• 76% of businesses told us they donated cash to charities in our 2008/2009
• HOWEVER, the data is relatively consistently inaccurate, meaning trends are still useful
From 1990 to 2009…
Corporate donations
increased 581%
Convergence: Corporate Donations vs.
Corporate Sponsorships ($ Billions)
Sources: Statistics Canada, Table 380-14
Canadian Sponsorship Landscape Study, 2011
Percentage of Sponsorships Received by
Nonprofit and Charity Causes, 2010
Area Sponsored %
Festivals, Fairs and Annual Events 17%
Amateur / Olympic Sport 15%
Causes 13%
Arts 10%
Education 8%
% of sponsorships in categories that are
predominantly charitable and nonprofit…
63%
Dollar value that would represent
$970 million
Types of Direct Contributions by Businesses
5%
8%
14%
43%
51%
76%
17%
26%
59%
69%
72%
97%
0% 25% 50% 75% 100%
Donate to corporatefoundation
Cause marketing
Sponsorship
Donate services
Donate goods / products
Donate money
$25 million + All businesses
Source: CSBCC, 2009 Funded by EnCana Corporation
Other Types of Contributions:
Mobilizing Stakeholders
22%
9%
8%
43%
18%
50%
62%
71%
82%
83%
0% 50% 100%
Raise money from customers orsuppliers
Make matching grants for employeecontributions
Provide a payroll deduction program
Support / encourage company employeevolunteering
Raise money from employees
$25 million + All businesses
Source: CSBCC, 2009 Funded by EnCana Corporation
General Trends
• Signature programs
– CECP found 55% of their members now have some sort of signature program
• In-kind contributions
• Employee volunteering
• Sophistication
• Customer expectations
• Customers willing to pay more for corporate citizenship (sometimes)
• Partnerships
– Cause related marketing
– In 2009, only 592 charities reported to the CRA that they were using some form of cause-related marketing initiative
THE 8:20 A.M. BONUS: WHAT
ABOUT THAT WHOLE
RECESSION THING?
The impact of the recession on corporate giving
Donations as a percentage of pre-
tax earnings over time
Recessions*
*Based upon the definition of recession, recessions in 1960 and 2001 were a) only in the
united states and b) were not recessions under alternative definitions
Source: Statistics Canada, Table 380-14
Corporate donations: Back to pre-
recession levels ($ millions)
Corporate
donations in
the 1st Quarter
of 2010 are
higher than the
1st Quarter of
2007.
Data Source: Statistics Canada, E-Stat, Table 380-0014
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