• Benefits of Corporate Philanthropy
• Corporate Giving Options
• Keys to Successful Corporate Giving
• Corporate Giving Examples
• Corporate Volunteering
• Next Steps

BENEFITS OF CORPORATE PHILANTHROPY
Many studies show that corporate charitable giving helps improve a company's bottom line. According to data from the 1999 Cone/Roper Cause Trends Report:

• 76% of consumers indicate they would switch brands or retailers to one associated with a good cause, when price and quality are equal
• 87% of employees at companies with philanthropic programs feel a stronger sense of loyalty to their employer

External benefits of corporate giving:

• Improved customer loyalty
• Enhanced reputation and standing in the community
• Increased positive name recognition and brand awareness
• New and enhanced relationships with key community leaders and officials
• Beneficial business-to-business relationships with nonprofits
• A reservoir of goodwill within the community
• Healthier, more livable and economically stronger communities

Internal benefits of corporate giving:

• Competitive advantage in attracting and retaining employees
• Leadership and development opportunities for employees
• Exposure of senior staff to new ideas, points of view and important social movements
• Improved internal communication and common purpose

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CORPORATE GIVING OPTIONS
If you own a family business or are an officer of a corporation, there are at least four options for you to consider for your company’s charitable giving: a corporate giving program, a corporate foundation, a corporate donor advised fund, and employee matching & non-cash giving.

Corporate Giving Program 
Many corporations operate an annual giving program to make charitable grants, funded as part of their annual operating budgets. Business owners can blend their family business with family philanthropy by channeling their charitable support through their family corporation(s). A corporate giving program has no independent endowment, and its budget is typically administered by corporate staff and directed by the CEO or an advisory committee of management staff members. A corporate giving program is not subject to the rules and regulations governing private corporate foundations.

Corporate Foundation 
A company can create a corporate foundation as an independent, tax-exempt private foundation. A corporate foundation is usually started with a single gift that can become the endowment, to which the company can add future contributions as it wishes. The foundation's officers are usually the company’s owners and key executives, although leaders from headquarters communities are sometimes included. At some companies, employee committees make giving recommendations about projects they believe are worthy of support. The corporate foundation is subject to the same rules and regulations applicable to other private foundations.

Corporate Fund
Companies can create their own donor advised funds at a community foundation of their choosing. For more information on this option, see Give to or through a Community Foundation.

Employee Matching & Non-Cash Giving
In addition to awarding cash grants to charity, companies often offer to match their employees’ gifts of cash and volunteer time to nonprofit organizations. Many companies assist and encourage their employees to give by organizing workplace giving programs (also known as "federated funds") and by facilitating payroll deductions for employees' charitable gifts. Companies sometimes match gifts that their employees make through workplace giving programs.

Some companies also organize employee workplace volunteer efforts, donate "in-kind" gifts of their products, or offer their services to charities on a free "pro bono" basis.

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KEYS TO SUCCESSFUL CORPORATE GIVING
According to a survey of members of the Minnesota Keystone Program, a recognition program for corporate givers, there are four key ingredients to successful corporate philanthropy:

1. Encourage employee participation. 89% of Keystone survey respondents involve their employees in the company’s charitable giving decisions.

2. Manage the process. Have a rationale for what you are doing, develop guidelines and objectives, budget your giving and stay focused.

3. Keep top management involved. The single most important ingredient for starting a corporate giving program is a strong value and support for corporate giving from top management.

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CORPORATE GIVING EXAMPLES
Some examples of corporate giving:

• Elmer L. Andersen/H.B. Fuller

• Kenneth R. Larson/Slumberland

• Paul White/BTD Manufacturing

For some varied examples of how corporate foundations and giving programs have set up their missions, guidelines and grantmaking policies, visit the websites of the Minnesota-based corporate grantmakers listed below (note: although most of the companies on this list are fairly large, their giving programs have many elements that are equally applicable to smaller businesses):

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PUBLICATIONS
The Minnesota Council on Foundations offers several useful publications for sale on establishing a corporate giving program, foundation or fund. For details, see Giving Resources.

ONLINE RESOURCES
The following online resources can provide you with more information on corporate philanthropy:

Business Committee for the Arts
BCA is a national organization that works with business to develop and advance alliances with the arts that meet business objectives. The site offers examples of best practices of business investments in the arts, a summary of its latest research, and more.

Business for Social Responsibility
BSR, based in San Francisco, is a membership organization that helps companies be commercially successful in ways that demonstrate respect for ethical values, people, communities and the environment. BSR’s online Global Business Responsibility Resource Center includes an introduction to corporate social responsibility, plus information on business ethics and community involvement.

Center for Corporate Citizenship at Boston College
The Center provides leadership in establishing corporate citizenship as a business essential, so that all companies act as economic and social assets to the communities they impact by integrating social interests with other core business objectives.

Community Wealth
This site aims to be a centralized, online resource and dialogue about "community wealth," which it defines as "resources generated through profitable enterprise to promote social change." Launched by the nonprofit Share Our Strength, the site features information about nonprofit and for-profit partnerships, social entrepreneurship, venture philanthropy, cause-related marketing and other innovative approaches to building communities in ways that blur the traditional lines between nonprofit and for-profit efforts.

Minnesota Business Gives
This site from the Building Business Investment in Community (BBIC) initiative features results of a first-ever statewide survey of business giving, resources for business philanthropy, and inspiring stories of giving by Minnesota business of all types and sizes.

Minnesota Keystone Program
The Keystone Program is a longstanding voluntary program, operated by the Greater Minneapolis Chamber of Commerce, that promotes and sustains corporate support for communities by encouraging and recognizing Minnesota companies that contribute 2 percent or more of pre-tax earnings to address community needs and aspirations that enhance Minnesota's quality of life. Giving levels recognized by the Keystone program include 2 percent and 5 percent categories.

HELP
The Minnesota Council on Foundations is available for one-on-one consultations. Contact the Council at 612.338.1989 or info@mcf.org.