**10 th Anniversary**

Transcription

1 Giving in Numbers: 2015 Edition **10 th Anniversary** Presentation to: Council on Michigan Foundations Corporate Breakfast November 9, 2015 Carmen Perez Director, Evaluation and Data Insights CECP Photo sources throughout the presentation: Wikimedia commons

2 THE CEO FORCE FOR GOOD

3 Giving in Numbers: Unparalleled Scope and Scale No other study compares to this reach on topics of corporate societal investment. 271 Multi-Billion Dollar Companies Responded 67 of Fortune 100 $8.3 trillion dollars in combined 2014 revenues 3

4 Topics Context: State of the Industry Strong & Stable Total Giving Indicators of Growth The Employee Factor 4

5 Topics Context: State of the Industry Strong & Stable Total Giving Indicators of Growth The Employee Factor 5

6 Resiliency & Elevation of the Role Companies Continue to Make the Case for Contributions Team Staff Despite Downturns in Total Corporate Employee Headcount Team Size Decreased 35% 34% 50% Team Size Stayed the Same or Grew 65% 76% 50% Companies with Decrease in Headcount, n=57 Companies with Increase in Headcount, n=49 Companies with Flat Headcount, n=16 6 Source: CECP Company-Reported Data, Giving in Numbers, , Matched Set Data, N=122

7 Purpose Performance Companies that increased giving the most produced stronger financial performance, 2012 to 2014 Giving Growth Increased Total Giving by 10%+ 9% 14% All Other Companies 2% 9% Pre-Tax Profit Growth Rate - Median Revenue Growth Rate - Median 7 Source: CECP Company-Reported Data, Giving in Numbers, , Matched Set Data, N=159

8 Mounting Proof of the Business Case Business Expectations Rising 84%: business can pursue self interest while doing good (2014 Edelman Trust Barometer) Consumers Buying Millennials Setting the Pace Performance 55% of consumers pay more if linked to societal impact (2014 Nielsen Global Survey) Millennials will make up 50% of workforce by 2024 (Gartner and Lynch) A dollar invested the value-weighted portfolio of a high-sustainability firm in 1993 would have been worth $22.60 by 2010, versus only $15.40 for a dollar invested in a more traditional firm. (Eccles, Serafeim, Ioannou, HBR)

9 Topics Context: State of the Industry Strong & Stable Total Giving Indicators of Growth The Employee Factor 9

10 How Many Companies Are Increasing Giving Total Giving is Up For 56% of Companies From 2012 to % Distribution of Companies by Changes in Total Giving Between 2012 and % Percent of Companies in Each Tier 10% 11% 15% 8% 14% 18% < -25% -25% to -10% -10% to -2% Flat 2% to 10% 10% to 25% > 25% Tiers of Total Giving Changes 1 Source: 0 CECP Company-Reported Data, Giving in Numbers, , Inflation Adjusted, Matched Set Data, N=200

11 Benchmarking Total Giving, 2014 Data Source: CECP Company-Reported Data, Giving in Numbers, 2014

12 Strong and Stable Total Giving Source: CECP Company-Reported Data, Giving in Numbers, 2014

13 Giving Internationally International Giving as a % of Total Giving, 2014 Centralization of Decision Making, 2014 DataTracking & Reporting 48% 33% 10% 10% Fortune 100 (n=41) 21% 26% Priority Cause Areas 30% 47% 17% 6% Contribution Budget 37% 35% 16% 13% Approval Process of Grants/Recipients 23% 33% 34% 11% All Companies (N=131) 20% 30% Percentage of Companies 0% 20% 40% 60% 80% 100% All Headquarters Shared, with Majority Headquarters Shared, with Majority Regional/Local All Regional/Local Top Quartile Average Note: Top Quartile refers to the minimum value to be in the top 25% of companies when sorted high to low.

14 Topics Context: State of the Industry Strong & Stable Total Giving Indicators of Growth The Employee Factor 1 4

15 Results Measurement Is On The Rise More Companies Are Measuring Social Results All Companies 100% 78% 86% 19% 25% % of companies measuring outcomes or impacts on at least one grant % of companies measuring outcomes or impacts All Grants Note: Matched-Set data, N=139. Note: Matched-Set data, N=139.

16 Current Depth of Measuring Social Results: 2014 How many companies measure societal outcomes and/or impacts for only More companies measure results just for strategic programs, compared to other ways they limit their measurement. Source: CECP Company-Reported Data, Giving in Numbers, 2014, N=165

17 Companies Using Grantee Results Data Three most popular uses of data reported to companies by grantees and/or nonprofit partners (N=179) 91% 84% 70% Decide which grantees/partner to fund Demonstrate outcomes to internal stakeholders Report publicly giving achievements Source: CECP Company-Reported Data, Giving in Numbers, 2014, N=179

18 Measurement Support Companies Offer to Grantees CECP Asked Corporate Societal Investment Professional. What are the types of support companies offer grantees to measure results? On average, out of 10 companies, they offer: No support (5 out of 10) Cash (2 out of 10) Cash + In-kind (2 out of 10) Inkind (1 out of 10) Source: CECP Company-Reported Data, Giving in Numbers, 2014, N=177

19 Cultivating Cases: Good Beyond Giving CECP Asked Corporate Societal Investment Professionals Are your departments doing good that is not counted in Total Giving? 49% 42% 2015 Summit Attendees Voted 9% Yes, there are many examples. Maybe, there are some examples. No, there are not many examples. Note: CECP Summit audience polling question on 5/19/2015. Vendor: Ubiquis.

20 Topics Context: State of the Industry Strong & Stable Total Giving Indicators of Growth The Employee Factor 2 0

21 The Employee Factor: 2014 Engagement Snapshot 2 Source: 1 CECP Company-Reported Data, Giving in Numbers, 2014, N=271

22 University of Georgia Study Links Volunteering To Job Performance Through Increased Meaningfulness Jessica Rodell Associate Professor University of Georgia 22

23 Employee Volunteering Offerings in 2014 Paid-Release Time Was Offered by the Highest Number of Companies in % 59% 56% 54% 53% 50% 48% 34% 36% 30% 33% 20% 20% 14% 6% 5% Paid-Release Time Employee Volunteer Awards Dollars for Doers Domestic (HQ Country) Company Wide Day Flexible Scheduling Pro Bono Service International (All Other Countries) Board Leadership Volunteer Sabbatical 2 Source: 3 CECP Company-Reported Data, Giving in Numbers, 2014, N=221

24 The Votes Are In: Top 3 Most Successful Programs Giving in Numbers survey asks respondents to pick their 3 most successful programs. Voted Successful 80% Picked it as most successful 65% Picked it as most successful 68% Picked it as most successful How Many Companies Offered the Program in 2014 Source: CECP Company-Reported Data, Giving in Numbers, 2014 Data. Domestic Volunteer Programs.

25 Companies Categorized Based on Program Offerings Number of Hours Varies Based on Program Offerings Pro Bono 2014 Avg. Hours 134,000 Company-Wide Day 2014 Avg. Hours 167,000 Pro Bono & Company-Wide Day 2014 Avg. Hours 238,000 Source: CECP Company-Reported Data, Giving in Numbers, 2014 Data, N=220. See more on page 18 of Giving in Numbers.

26 University of Southampton Study Says Social Incentives are Linked to Productivity Increases

27 2014 Shows: Matching Gifts Are Standard Practice Energy 100% Offering 13.4% of Cash Utilities 100% Offering 7.5% of Cash Financials 96% Offering 16.2% of Cash Health Care 90% Offering 13.3% of Cash Source: CECP Company-Reported Data, Giving in Numbers, 2014 Data, N=271 (percentage of companies) & n=243 (median percentage). See more on page 23.

28 Employee Matching Programs With Open Organization Eligibility Use Larger Budgets Open Eligibility Limited Eligibility Match Companies where eligible nonprofit orgs are not limited, 46% Companies that limit eligible nonprofit orgs, 54% Match Higher Percent 14.8% Matching/Total Cash 9.7% Matching/Total Cash Higher Median $2.0 Mill. Median Total Matching $1.2 Mill. Median Total Matching Source: CECP Company-Reported Data, Giving in Numbers, 2014 Data, N=100.

29 2014 Median Corporate Contributions FTEs, by Industry Source: CECP Company-Reported Data, Giving in Numbers, 2014 Data 29

30 Summary Context: State of the Industry 14% Strong & Stable Total Giving 0.13% Indicators of Growth 18% The Employee Factor 33% Revenue Growth Rate, Giving Increasers Rev. Benchmark, Michigan Companies Growth Rate for Measuring Companies Avg. Vol. Participation, Midwest Companies 3 0

31 Next Steps Compare your company s work to the trends in the report Contact CECP for custom benchmarking Let your team know: Survey open: January 2016 Survey deadline: March 31, 2016 New definition: total giving recipients meet Global Guide criteria cecp.co/global 1. Formally Organized 2. Charitable Purpose 3. Never Distribute Profits Contact: CPerez@cecp.co