Introduction to Corporate Giving - Foundation Center Training


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Introduction to Corporate Giving - Foundation Center Training

  1. 1. The Foundation Center’s Training Programs Introduction to Corporate Giving Did you take a handout packet? Please turn off your cell phones! 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 1 Why Companies Give and Why They Would Give to Your Nonprofit 1
  2. 2. The Foundation Center’s Training Programs 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? 2
  3. 3. The Foundation Center’s Training Programs 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 3
  4. 4. The Foundation Center’s Training Programs Part 2 What Companies Give How Much Do Corporations Give? Private Contributions by Source ($ in billions) Corporations $15.29 5% Individuals Bequests $211.77 8% $22.83 73% 14% Foundations $41.0 Total Giving: $290.89 billion Source: Giving USA 2011, Giving USA Foundation, researched and written by the Center On Philanthropy at Indiana University Cash vs. Non-Cash Contributions Company Direct Foundation Cash Cash 26.6% 25.33% Non-cash 48.6% Source: The 2009 Corporate Contributions Report, The Conference Board 4
  5. 5. The Foundation Center’s Training Programs 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 5
  6. 6. The Foundation Center’s Training Programs 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 Study Mountain View Senior Center and CHI Partnership Part 3 Is Your Nonprofit Ready to Seek Corporate Support? 6
  7. 7. The Foundation Center’s Training Programs 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 4 Finding Corporate Funders 7
  8. 8. The Foundation Center’s Training Programs 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 Resources for Funding Research • Print directories • Corporate Giving Online • Foundation Directory Online • Periodicals on corporate philanthropy Researching Corporate Giving History • Company-sponsored foundation – Through 990-PF • Direct corporate giving – More challenging to research 8
  9. 9. The Foundation Center’s Training Programs Staying Abreast of Recent News • Company’s web site • Philanthropy News Digest • Chronicle of Philanthropy • Local business journal • Business research web sites Part 5 How to Approach a Corporate Supporter Making the Approach • Find out who the “gatekeeper” is • Find out who can help you open the door 9
  10. 10. The Foundation Center’s Training Programs 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 at materials/free_training/ 10
  11. 11. Corporate Giving OnlineSample RecordLockheed Martin Corporation6801 Rockledge Dr.Bethesda, MD 20817-1836(301) 897-6000Company URL: http://www.lockheedmartin.comEstablishment information: Established in 1995 from the merger of Lockheed Corp. with Martin Marietta Corp.Company type: Public companyCompany ticker symbol and exchange: LMT/NYSEBusiness activities: Researches, designs, develops, manufactures, and integrates advanced technology products and services.Business type (SIC): Guided missiles and space vehiclesFinancial profile for 2008: Number of employees, 146,000; assets, $33,439,000,000; sales volume, $42,731,000,000Fortune 1000 ranking: 2008-54th in revenues, 42nd in profits, and 139th in assetsForbes 2000 ranking: 2008-161st in sales, 146th in profits, and 521st in assetsBoard 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. andCont.; 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 FundCompany EIN: 521893632Additional geographic information: County: Montgomery; metropolitan area: Washington-Arlington-Alexandria, DC-VA-MD-WV;Congressional district: Maryland District 8.(c)The Foundation Center 11
  12. 12. Grantmaker ProfileLockheed Martin Corporation Foundation(formerly Martin Marietta Corporation Foundation)6801 Rockledge Dr.Bethesda, MD 20817-1803Contact: Meagan T. Campion, Mgr., Corp. PhilanthropyE-mail: meagan.t.campion@lmco.comURL: of Grantmaker: Company-sponsored foundationIRS Exemption Status: 501(c)(3)EIN: 136161566990-PF: 2007 2006 2005 2004 2003 2002 2001Donor(s): Martin Marietta Corp.; Lockheed Martin Corp.Background: Established in 1955 in MD.Limitations: Giving primarily in areas of company operations. No support forreligious organizations not of direct benefit to the entire community, professionalassociations, labor or fraternal organizations, social clubs, athletic groups, or privateelementary or secondary schools. No grants to individuals (except for employee-related scholarships), or for booklet, yearbook, or journal advertising or home-basedchild care or educational services.Purpose and Activities: The foundation supports programs designed to promoteeducation; 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 awardsthree $3,000 four-year college scholarships to children of non-US citizen employees ofLockheed Martin. The program is administered by the Institute of InternationalEducation.Lockheed Martin Merit Scholarship Program: The foundation awards $3,000 four-year college scholarships to National Merit Finalists who are children of employees ofLockheed Martin. The program is administered by the National Merit Scholarship Corp.Matching Gift Program for Colleges and Universities: The foundation matchescontributions made by employees and directors of Lockheed Martin to institutions ofhigher education on a one-for-one basis from $25 to $10,000 per contributor, peryear.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 andorganizations are made from corporate headquarters and contributions to localprograms are made by local sites close to the programBoard meeting date(s): QuarterlyDeadline(s): RollingOfficer 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: MarylandAssociation 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: MarylandDistrict 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 1year.$300,000 to District of Columbia College Access Program, Washington, DC, payableover 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.(c)The Foundation Center 12
  13. 13. Mountain View Senior Center and CHI PartnershipCase StudyThe 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.(c)The Foundation Center 13
  14. 14. Mountain View Senior Center and CHI PartnershipCase Study CASE STUDY: Mountain View Senior Center and CHIPartnership Viability WorksheetQ: What does Mountain View Senior Center have that might be of interest to CHI? Partnership Viability Worksheet ◆ ____________________________________________________________________________ Q: What does Mountain View Senior Center have that might be of interest to CHI? ◆ ____________________________________________________________________________ ◆ ____________________________________________________________________________ VIABILITY Y WHOSEE RATING G SUPPORT DO T O (1=least likely; t ; PARTNERSHIP OPTION P N TASK K YOU NEED? U ? 5=most viable) t In-kind donations Pursue additional product Same channel as 5 donations—to distribute at used for previous nursing homes, other events donationFoundation Center 3/07(c)The Foundation Center 14