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Study Tracks Global Corporate Giving

Rapid globalization is pushing business leaders to tackle societal challenges and invest in solutions, the report found.

By University Alliance on February 18, 2014
Nonprofit Group Highlights Corporate Philanthropy

A new analysis of the philanthropic activities of 60 multinational corporations found that they gave a total of $6.8 billion in 2012, with the largest companies sending about one-third of their nonprofit philanthropy to recipients overseas.

The report, titled Giving Around the Globe, was produced by CECP, a nonprofit organization that aids executives from companies worldwide in tackling societal challenges while still achieving business goals, according to its website. The New York City-based group formerly was known as the Committee Encouraging Corporate Philanthropy.

The combined revenue of the companies included in the study is almost $2 trillion, with one-third of the corporations listed among the world’s top 200 companies by Forbes.

The CECP’s chief executive officer said the increasing globalization of the marketplace has seen companies redirect “their attention to investing in solutions to global community issues.”

“They understand that to be global leaders in business, they also have to lead in addressing societal challenges wherever they want to have a presence,” CEO Daryl Brewster said in a statement.

On average, corporate donations represented 0.15% of a company’s total revenue, with variations based on the region in which a company was headquartered, the report found.

The report, which was released in November 2013, also found regional differences in the forms of giving favored by the surveyed companies. For example, North American companies gave “more or less equal amounts of each of the three giving types,” which are direct cash, foundation cash and noncash.

Asia-based companies reported the lowest percentage of noncash contributions, the report found, while European companies favored direct cash over foundation cash, doling out more direct cash contributions than companies from other regions.

Corporations in Europe also gave more contributions internationally than their counterparts from other regions of the globe.

Meanwhile, Latin American companies made more donations in the foundation cash category compared with non-Latin American companies, according to the CECP’s findings.

Among all companies, direct cash giving accounted for 49% of contributions, followed by foundation cash at 33% and noncash at 18%.

Other highlights from the report include:

  • The median, or midpoint, amount of global corporate contributions was $29 million.
  • 34% of contributions from the largest companies went to recipients abroad, compared with 26% of contributions from all other companies.
  • The geographic makeup of a company’s philanthropic activities was most likely to include recipients from developing markets and neighboring nations.
  • Corporations were likely to concentrate the majority of their philanthropic efforts in a few nations, with more than half of the countries in a company’s portfolio each receiving no more than 2% of overall contributions.

According to the report, India topped the list of countries receiving contributions from the most companies (70%), followed by Canada (67%), and China, Mexico and the United Kingdom (all at 64%).

The report noted that India’s parliament recently passed legislation mandating that companies with annual profits exceeding $80 million must contribute 2% of the profits to corporate social responsibility (CSR) projects.

The United Kingdom, Canada, Australia and Germany received the largest aggregate dollar amounts of international giving.

Giving Around the Globe demon­strates that not only is this international giving responsible and responsive, it is also a proac­tive tool for the business,” the report noted.

Nonprofit managers can master the skills necessary to raise capital and secure grants from corporations by enrolling in the University of Notre Dame’s Executive Certificate in Transformational Nonprofit Leadership program, available 100% online.


Category: University