Introduction to Corporate Giving - Foundation Center Training

The Foundation Center’s Training Programs

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Introduction to Corporate Giving

Did you take a handout packet?

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What You Will Learn Today

• Why companies give• What companies give• How to determine if your organization is

ready to seek corporate support• How to find corporate funding prospects• How to approach a potential corporate

supporter

Part 1Why Companies Give and Why They Would Give to

Your Nonprofit


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Why Do Corporations Give?

• To advance their business objectives

• To increase corporate visibility

• To benefit their employees

• To be good corporate citizens

• To take advantage of tax deductions

Advancing Business Objectives

• Do you share an audience/constituency?

• Would companies want to connect with your constituents?

• Do you address issues of interest to a company?

Increasing Brand Visibility

• How visible are you in the community?• How big an audience do you have?• How do you get your name in front of

the public?


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Benefiting Employees

• Do corporate employees benefit from your work?

• Do you have volunteer opportunities for corporate employees?

Corporate Citizenship

• How do you strive to enhance the local community, making it a more attractive place to live and work?

• How deep is your network of community leaders, those with whom corporate executives would want to associate?

Tax Benefits

• Do you have 501(c)(3) status?– Companies can deduct up to 10% of pre-

tax profits to charitable giving


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Part 2What Companies Give

Individuals$211.77

73%

Corporations$15.29

Bequests $22.83

Foundations$41.0

8%5%

14%

Source: Giving USA 2011, Giving USA Foundation,researched and written by the

Center On Philanthropy at Indiana University

Private Contributions by Source($ in billions)

Total Giving: $290.89 billion

How Much Do Corporations Give?

Cash vs. Non-Cash Contributions

Source: The 2009 Corporate Contributions Report,The Conference Board

Foundation Cash

25.33%

Non-cash 48.6%

Company Direct Cash 26.6%


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Monetary Contributions

• Foundation grants• Corporate contribution• Employee matching grants

In-Kind Contributions

• Product/equipment donations• Donated services• Use of facilities

Employee Involvement

• Employee volunteer programs• Executives on loan• Board service


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Sponsorships and Cause-Related Marketing

• Sponsorships• Cause-related marketing

– Public association of a for-profit company with a nonprofit organization, designed to promote the company’s products/services and to raise money for the nonprofit.

Case StudyMountain View Senior Center and

CHI Partnership

Part 3Is Your Nonprofit Ready to Seek Corporate Support?


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Considerations Before Taking on Corporate Fundraising• How does corporate support fit into your

overall fundraising plan? • Types of companies with which you

do/don’t want to work • How will your various constituencies

react to a potential corporate donor?• What would you be willing to do to

secure corporate support?

Putting Your Organization in the Best Position• Contacts in the corporate world

throughout your network • Memberships in organizations which

facilitate corporate networking • Know who’s doing business in your

community• Your capacity to quickly publicize

corporate support

Part 4Finding Corporate Funders


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Creating Your Corporate Prospect List

• Find companies located in your geographic area (headquarters, subsidiaries/divisions, plants/offices/stores)

• Find companies based on what they do• Find companies based on what you do • Find companies providing the type of support

you need• Stay abreast of recent news

• Print directories• Corporate Giving Online• Foundation Directory Online• Periodicals on corporate philanthropy

Resources for Funding Research

Researching Corporate Giving History

• Company-sponsored foundation– Through 990-PF

• Direct corporate giving – More challenging to research


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Staying Abreast of Recent News

• Company’s web site• Philanthropy News Digest• Chronicle of Philanthropy• Local business journal• Business research web sites

Part 5How to Approach a

Corporate Supporter

Making the Approach

• Find out who the “gatekeeper” is• Find out who can help you open the

door


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Talking Points

Reasons why they should support your organization

• You are working in the same geographic area• Their employees are already involved with

your organization• You have potential customers among your

constituents• You are highly visible with a strong reputation

Summing Up

• Corporate philanthropy is motivated by the bottom line and company interests

• Look at your organization from the company’s point of view– You won’t get support from a company unless you

have a connection• Companies support nonprofits in many

different ways• Utilize all our resource tools to find a match

For More Information

• Resource list is available athttp://foundationcenter.org/course_ materials/free_training/

Corporate Giving Online

Sample Record

Lockheed Martin Corporation6801 Rockledge Dr. Bethesda, MD 20817-1836 (301) 897-6000 Company URL: http://www.lockheedmartin.comEstablishment information: Established in 1995 from the merger of Lockheed Corp. with Martin Marietta Corp. Company type: Public company Company ticker symbol and exchange: LMT/NYSE Business activities: Researches, designs, develops, manufactures, and integrates advanced technology products and services. Business type (SIC): Guided missiles and space vehicles Financial profile for 2008: Number of employees, 146,000; assets, $33,439,000,000; sales volume, $42,731,000,000 Fortune 1000 ranking: 2008-54th in revenues, 42nd in profits, and 139th in assets Forbes 2000 ranking: 2008-161st in sales, 146th in profits, and 521st in assets Board of directors: Robert J. Stevens, Chair.; E.C. Pete Aldridge; Nolan D. Archibald; Marcus C. Bennett; James O. Ellis; Gwendolyn S. King; James M. Loy; Douglas H. McCorkindale; Eugene F. Murphy; Joseph W. Ralston; Frank Savage; James M. Schneider; Anne Stevens; James R. Ukropina; Douglas C. Yearley. Corporate officers: Robert J. Stevens, Chair., Pres., and C.E.O.; Christopher E. Kubasik, Exec. V.P. and C.F.O.; Joseph Cleveland, V.P. and C.I.O.; James Comey, Sr. V.P. and Genl. Counsel; Mary Margaret Vandeweghe, Sr. V.P., Finance; Kenneth J. Disken, Sr. V.P., Human Resources; Lillian M. Trippett, V.P. and Secy.; Anthony G. Van Schaick, V.P. and Treas.; Martin T. Stanislav, V.P. and Cont.; Peter A. Harrigan, V.P., Comms.; Craig R. Quigley, V.P., Public Affairs. Subsidiaries and/or Divisions: KAPL, Inc., Schenectady, NY; Sandia Corp., Albuquerque, NM. Joint Ventures: United Space Alliance, LLC, Houston, TX. International operations: Australia; Belgium; Canada; Egypt; France; Germany; Japan; Saudi Arabia; Singapore; Switzerland; Turkey; United Kingdom. Affiliated grantmaker(s): Lockheed Martin Corporation Contributions Program; Lockheed Martin Corporation Foundation; Lockheed Martin Vought Systems Employee Charity Fund Company EIN: 521893632 Additional geographic information: County: Montgomery; metropolitan area: Washington-Arlington-Alexandria, DC-VA-MD-WV; Congressional district: Maryland District 8.

(c)The Foundation Center 11

Lockheed Martin Corporation Foundation

(formerly Martin Marietta Corporation Foundation)

6801 Rockledge Dr.

Bethesda, MD 20817-1803

Contact: Meagan T. Campion, Mgr., Corp. Philanthropy

E-mail: [email protected]

URL: www.lockheedmartin.com/aboutus/community/philanthropy/

Type of Grantmaker: Company-sponsored foundation

IRS Exemption Status: 501(c)(3)

EIN: 136161566

990-PF: 2007 2006 2005 2004 2003 2002 2001

Donor(s): Martin Marietta Corp.; Lockheed Martin Corp.

Background: Established in 1955 in MD.

Limitations: Giving primarily in areas of company operations. No support for

religious organizations not of direct benefit to the entire community, professional

associations, labor or fraternal organizations, social clubs, athletic groups, or private

elementary or secondary schools. No grants to individuals (except for employee-

related scholarships), or for booklet, yearbook, or journal advertising or home-based

child care or educational services.

Purpose and Activities: The foundation supports programs designed to promote

education; community outreach; and customer and constituent relations.

Program Area(s): The grantmaker has identified the following area(s) of interest:

Lockheed Martin International Scholarship Program: The foundation awards

three $3,000 four-year college scholarships to children of non-US citizen employees of

Lockheed Martin. The program is administered by the Institute of International

Education.

Lockheed Martin Merit Scholarship Program: The foundation awards $3,000 four-

year college scholarships to National Merit Finalists who are children of employees of

Lockheed Martin. The program is administered by the National Merit Scholarship Corp.

Matching Gift Program for Colleges and Universities: The foundation matches

contributions made by employees and directors of Lockheed Martin to institutions of

higher education on a one-for-one basis from $25 to $10,000 per contributor, per

year.

Fields of Interest: Subjects: Arts; Community/economic development; Education;

Elementary/secondary education; Environment; Health care; Human services;

Mathematics; Military/veterans' organizations; Public affairs; Science.

Types of Support: Employee-related scholarships; Employee matching gifts;

General/operating support; Program development.

Publications: Application guidelines.

Application Information: Application form required.

Initial approach: Complete online application; contributions to national initiatives and

organizations are made from corporate headquarters and contributions to local

programs are made by local sites close to the program

Board meeting date(s): Quarterly

Deadline(s): Rolling

Officer and Trustees: Christopher J. Knotts, Secretary; Dennis R. Boxx; Kenneth J.

Disken; Robert Trice; Peter F. Warren, Jr.

Number of Staff: 1 full-time professional; 1 full-time support.

Memberships: Associations and Other Philanthropic Organizations: Maryland

Association of Nonprofit Organizations.

Financial Data: Year ended 12/31/07: Assets: $15,918,947 (market value);

Expenditures: $7,137,926; Total giving: $6,665,158; Qualifying distributions:

$6,725,530; Giving activities include: $6,665,158 for 132 grants (high: $2,000,000;low: $75).

Additional Location Information: County: Montgomery; Metropolitan area:

Washington-Arlington-Alexandria, DC-VA-MD-WV; Congressional district: Maryland

District 8.

Selected Grants: The following grants were reported in 2004:

$1,900,000 to Scholarship Foundation, Cherry Hill, NJ, payable over 1 year.

$644,450 to National Merit Scholarship Corporation, Evanston, IL, payable over 1

year.

$300,000 to District of Columbia College Access Program, Washington, DC, payable

over 1 year.

$250,000 to United Negro College Fund, Fairfax, VA, payable over 1 year.

$200,000 to Smithsonian Institution, Washington, DC, payable over 1 year.

$150,000 to Maryland Science Center, Baltimore, MD, payable over 1 year.

$125,000 to Tufts University, Medford, MA, payable over 1 year.

$110,000 to Strathmore Hall Arts Center, North Bethesda, MD, payable over 1 year.

$32,000 to Pennsylvania State University, University Park, PA, payable over 1 year.

$20,000 to Baltimore Museum of Art, Baltimore, MD, payable over 1 year.

Grantmaker Profile


Mountain View Senior Center and CHI Partnership

Case Study

The Mountain View Senior Center (MVSC) is a growing agency serving senior citizens in JohnsonCounty, a metropolitan area to which an increasing number of retirees are moving. Mountain Viewoffers many educational programs for seniors on topics such as financial management, personalwellness, diet and exercise, etc. The agency also runs an activities center and coordinates manyrecreational opportunities for seniors, such as the ever-popular annual community senior golftournament.

CHI is a local corporation which manufactures personal care products. The company’s primarycustomers are drug stores, beauty supply stores and salons; they recently introduced a new lineof personal care products for older adults. CHI does not have a formal company-sponsoredfoundation with set guidelines or procedures; there is a corporate contributions committee madeup primarily of management staff. The company has a history of supporting nonprofits providingcommunity health services and children and youth programs.

For MVSC’s recent Senior Activity Fair, an employee of CHI volunteered her time to offer make-updemonstrations for the participants, using many of the company’s products. The company alsodonated “Personal Care Kits” for distribution at the fair.

This was the first collaboration between Mountain View Senior Center and CHI, and MountainView’s leadership would like to further develop the relationship. In addition to the employeevolunteer, one of Mountain View’s newest board members is a recently retired CHI executive.

The leadership of the Center is meeting soon to come up with an action plan for pursuing arelationship with CHI. Put yourself in the role of the development director and, using the attachedchart as a model, brainstorm ideas for potential partnerships between MVSC and CHI.


Foundation Center 3/07

Partnership Viability Worksheet

Q: What does Mountain View Senior Center have that might be of interest to CHI?

◆ ____________________________________________________________________________

◆ ____________________________________________________________________________

◆ ____________________________________________________________________________

CASE STUDY: Mountain View Senior Center and CHI

Partnership Viability Worksheet

Q: What does Mountain View Senior Center have that might be of interest to CHI?

PARTNERSHIPP OPTIONN TASKK

WHOSEE SUPPORTT DOO YOUU NEED??

VIABILITYY RATINGG (1=leastt likely;; 5=mostt viable)

In-kind donations Pursue additional product donations—to distribute at nursing homes, other events

Same channel asused for previous donation

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Mountain View Senior Center and CHI Partnership

Case Study


Introduction to Corporate Giving - Foundation Center Training

Documents

Transcript of Introduction to Corporate Giving - Foundation Center Training