Corporate Giving Information on the Web

September 2001 is Nonprofits and Technology Month at the Foundation Center. All month long the Center will be offering special events, educational programs, publications, and Web resources on funding for and information on nonprofits and technology. A brand new edition of the Foundation Center's Guide to Grantseeking on the Web will be released in late September. Featured below is an excerpt from a chapter in the new edition of the guide.

Corporate Giving: An Overview 

The motivations behind the giving policies of individual corporations vary widely and can be complex. Before delving into corporate giving research on the Web, a brief description of why and how corporations give will offer grantseekers a better understanding of what to look for when undertaking this research.

Corporate giving usually entails a combination of altruism and self-interest. Unlike foundations and other charitable agencies, philanthropy is at best a minor sideline for most corporations. Their main obligations are to their customers, employees, shareholders, and the “bottom line.” They give to support employee services, guarantee a well-trained potential work force, build both local and national community relations, enhance company image, return favors, secure tax deductions, and influence policy and opinion makers.

Companies understand the power of publicity and that charitable giving helps build a strong public image. Some enlightened companies view giving as essential for good corporate citizenship. However, corporations expect concrete rewards for their generosity.

Many companies use the Internet as a means to advertise their philanthropic activities. By posting grantmaking information on the Web, companies make the public aware that they are involved in improving the quality of life, particularly in areas of company operations. This exposure gives the company a positive image and improves public relations, which ultimately translates into increased profits.

Trends in corporate giving

In recent years corporations have reshaped their giving programs, narrowing their focus to specific objectives, carefully examining how grants are used, and rethinking their possible benefits. Many also have developed additional non-cash giving programs.

Companies often favor high-profile causes like improving our nation’s education system, with a focus on math, science, opportunities for minorities, and school reform. Environmental issues, low-income housing, and preventive health maintenance are also popular areas of corporate giving.

In addition, companies strive to maximize the impact of their giving. Direct involvement with students and teachers, in projects like the adopt-a-school program and other tutoring and mentoring programs, is one approach. More and more companies seem also to be fostering collaborative donor and nonprofit efforts and taking on long-term projects. They also support volunteerism among their employees in a bid for enhanced community standing.

Company-sponsored foundations and direct corporate giving programs

Companies provide support to nonprofits through private “company-sponsored” foundations, direct corporate giving programs, or both. Company-sponsored foundations usually maintain close ties with their sponsoring companies, and, typically, their giving directly reflects their “parent’s” interests. Most maintain relatively small endowments and rely on annual contributions from the company to support their programs. Some corporations build their foundations’ endowments in “fat” years and tap into them in “lean” ones so that giving levels remain fairly consistent. For others, there is a direct relationship between the state of the economy, the value of company stock, and corporate philanthropic coffers, so that giving can vary greatly from year to year depending on economic conditions.

Company-sponsored foundations must adhere to the appropriate regulations governing all private foundations, including filing a yearly IRS Form 990-PF, which includes a report on contributions. As with all Forms 990-PF, these returns are publicly available on the Web and at Foundation Center libraries. These returns can be very helpful in researching individual corporate foundations.

For all other charitable activities, those not conducted by a company’s foundation, there is much less government regulation. Corporations are not required to publicize direct giving programs or to sustain prescribed funding levels. They also may support nonprofits in a variety of ways out of operating funds, and these expenditures won’t show up in their giving statistics. For these reasons, finding information on direct corporate giving programs can be difficult.

For a variety of procedural, policy, and/or legal reasons, the foundation may not be able to contribute directly to a worthy organization and will choose to provide support in some other way. This is often treated as a business expense.

“In-kind gifts,” such as donated products or loaned employee services, constitute at least an estimated 20 percent of corporate giving, although these numbers may be inflated due to the fact that many companies report their in-kind donations at market value rather than at their cost. Whatever the true percentage of corporate giving they represent, in-kind gifts are sometimes overlooked by organizations seeking corporate support.

Direct corporate giving by public companies has been a topic of controversy within the business community. Especially in lean times, shareholders sometimes complain that corporate profits belong to them and not to charity. While big business tends to agree, many enlightened CEOs realize that the long-term interests of a company and its shareholders are best met by a reinvestment of some corporate funds back into the community. Only through a healthy community, they say, can business flourish. This doesn’t mean, however, that a company will not attempt to hide some or all of its charitable endeavors from the public.

For the reasons noted above, most of the corporate giving information available on the Web concerns company-sponsored foundations. Foundations usually provide much more specific information concerning their grantmaking activities, including information on application addresses, contact persons, geographic limitations, fields of interest supported, types of support offered, and so on. One of the advantages for a company that uses a direct giving program rather than a company-sponsored foundation is precisely that the company need not disclose how much or to whom it contributes. Therefore, when researching direct corporate giving programs, grantseekers must use a little more ingenuity and adopt a well-honed and discerning selection process.

One of the basic handicaps to uncovering giving information on the Web is that companies often use their Web site primarily as a public relations tool. They may post little more than several pages concerning some of the grants they have made in the recent past. Unfortunately, this kind of Web site can lead grantseekers to believe that they may be eligible for a grant, when in fact they are not. Sites like these often generate hundreds, if not thousands, of applications to companies that do not accept unsolicited applications or will not support the causes for which they are sent applications.

How to Find Corporate Funders 

As already noted, most corporate giving will coincide closely with other corporate activities and will be limited to the geographic areas where companies conduct business, including headquarters and plant and subsidiary locations. The grantseeker’s search should focus on local businesses as well as on major corporations that operate in their neighborhood. Corporate directories and corporate giving studies are key resources.

In addition to the Web strategies outlined below, grantseekers should also consult public libraries for regional and business indexes. The local Chamber of Commerce and Better Business Bureau may also have such guides. Do not overlook the yellow pages and local community newspapers. In corporate grantseeking, personal contacts are essential. A grantseeker should consider board members, volunteers, and staff as assets who may have important contacts with corporate funders. These people should be encouraged to share their knowledge and to think about whom they may know who can help secure corporate funding.

Utilizing the Web as a search tool

Many companies now maintain a presence on the World Wide Web. With a little ingenuity, these sites can become important potential sources of information about corporate community involvement and grantmaking activities.

Let Others Do the Searching for You

Several portal sites are good starting points for grantseekers in search of corporate giving programs and company-sponsored foundations. Primary among these are the Foundation Center's Grantmaker Search and the U.K.-based Charities Aid Foundation’s CCInet . These sites have extensive lists of links to corporate giving programs and company-sponsored foundations. The Foundation Center’s Web Sites of Corporate Grantmakers is a listing of corporate givers that can be browsed alphabetically or searched by subject or geographic keyword.

Doing It Yourself Using a Search Engine

Another way to find corporate giving information on the Internet is to use a search engine. If you’re new at this, try each one out to see which search engine has features you like best. The key to retrieving a reasonable number of hits that contain useful information on corporate giving, rather than a list of thousands of irrelevant Web sites, is choosing the proper search terms and knowing the rules and limitations of the search engine you may be using. There are differences in how search engines work and what results you can expect from them.

The search terms you select can greatly improve your search results. Try to search initially with broad phrases like “corporate giving,” “community relations,” or “company contributions.” Once you have an idea about what kind of information is available on the Web, you may be able to further narrow your searches by adding words more specific to your needs (e.g., “arts corporate giving”). You may also want to try the same search using various search engines; you will often get vastly different results. Other terms to try are “in-kind gifts,” if looking for product donations, or “community reinvestment act,” for those seeking loans.

Uncovering Giving Information on Corporate Web Sites

A different strategy is required to research the corporate giving policies regarding a specific company. Often there is no “search” option within a particular Web site, although gradually this feature is becoming more available. You must be on the lookout, therefore, for broad categories that may lead you to the information you seek. Often you will find these categories among a menu list containing items such as Products and Services, Annual Report, and so on. The categories most likely to contain information on the giving policies of the company most typically will be found under headings like Corporate Relations, Corporate Information, or About Us.

Frequently, corporate giving program information is contained on a “page within a page.” In other words, you have to delve deeply, or in the case of a Web site, click often to get to it. The best way to circumvent this lengthy process is to find a site map, if available. This is a listing of all of the pages contained within the Web site. These listings are usually the simplest way to cut to the heart of the subject you are looking for and are often more reliable than the hit-or-miss process of clicking from page to page.

Researching corporate information

You may want to begin with basic information about the company itself, including the areas of company operations, geographic parameters, the products and services the company provides, a list of corporate officers, and fiscal information.

A good place to start when looking for information about a public company, that is, a company whose stock is traded publicly, is the Security and Exchange Commission’s (SEC’s) EDGAR Database. This is a text-only database that contains an archive of all the financial documents filed with the SEC since 1994.

This site contains extensive information about every public company and its operations. The main challenge is digging through a lot of material that is irrelevant in order to find the information you need. This requires patience and persistence.

Another valuable site to consider when researching corporate information is Yahoo’s Company and Fund Index.. This site provides a searchable database of information on most public companies in the United States and even offers a “backdoor” to the SEC’s site, making a search of the EDGAR Database quicker and easier.

One of the most comprehensive sites for corporate information on public and private companies, not only in the United States but abroad, is Hoovers Online. Hoover's boasts access to records on more than 12 million companies. Additionally, those wishing to receive or view corporate annual reports may want to visit the Investor Relations Information Network . Here, annual reports for more than 2,500 companies can be accessed in PDF and HTML formats.

Most of the information available online concerns publicly traded companies. Finding information on privately held corporations requires more research and ingenuity and may also require using a search engine to look up the company in question by name.

Perhaps the quickest and easiest way to find a public or private corporation’s information is to simply type the name of a company into your browser’s location bar and hope for success. Many companies have set up Web sites that usually can be accessed by the “http://www.companyname.com” format.

If you encounter difficulties locating corporate Web sites, try different variations of a company’s name. For example, the Web site for Minnesota Mining and Manufacturing (3M) can be found alternately at http://www.3m.com and http://www.mmm.com.

Finding information on individual corporate Web sites

Corporations present their giving information in widely varying formats. Some companies provide easy access to their philanthropic activities directly from their home page, while others may have information on their grantmaking programs buried within other sections. Some companies provide no giving information at all on their Web sites, while others combine direct corporate giving program information with foundation information on a single page. Grantseekers must be diligent in order to find the information they need from a corporate Web site. They should also examine the information provided on a corporate site very carefully before applying for a grant.

What to Look for

• Annual report
• Business statement
• Executive officers
• Press releases
• Product listings
• Worldwide locations

Hidden Information

As noted, it is often the case that a company provides giving information within a section called Corporate Information or About Us. And some companies provide site maps, which can be used as a guide to find a hidden page. For example, International Paper’s home page includes a link to its site map, which clearly shows that the company has dedicated a page to philanthropic activities.

It should be noted that many companies provide information regarding their environment- and health and safety-related initiatives. This is not necessarily relevant grantmaking information. Although many companies do indeed make grants to environmental organizations or to those that promote health and safety within their community, this material usually refers to a company’s efforts to reduce its impact on the environment or to improve health and safety conditions for its employees. Use your best judgment in deciding whether the information provided is of relevance to you as a grantseeker.

Company-Sponsored Foundations and Corporate Giving Programs

As noted, many companies make charitable contributions both directly and through a company-sponsored foundation. Often, information on both arms of a company’s charitable giving efforts is combined on the Web, making it difficult for the grantseeker to differentiate between the two separate grantmaking bodies. Grantseekers need to proceed with caution when visiting such sites and to conduct further research to determine the appropriate approach. Sometimes both programs are administered out of the same office and by the same staff, while at other times they act completely independently of one another. In some cases they each require separate proposals. Very often, the types of support provided and the geographic limitations established will vary widely. For instance, cash donations might be supplied by the foundation, while in-kind support is handled exclusively by the company.

For example, CIGNA ’s web site contains information on both a company-sponsored foundation and a direct corporate giving program. In fact, the company makes this clear at the bottom of the first page of its Contributions Report, something many companies neglect to do. There is valuable information here on CIGNA’s philanthropic endeavors, but one never knows for sure whether the information reflects donations made by the CIGNA Foundation or by the company itself. When in doubt, a telephone call to the company is probably the grantseeker’s best bet.

Making the Best Use of Available Resources 

The subject, geographic, and type of support approaches to grantseeking

There are several tried-and-true approaches to corporate grantseeking research, each appropriate for a different situation. The subject approach leads grantseekers to corporations with an interest in funding programs in certain fields and to businesses whose activities are related to their nonprofit programs. Some nonprofit/corporate common elements will be obvious: A sporting goods manufacturer expresses interest in an athletic program for disadvantaged youth; a musical instruments manufacturer supports a primary school music appreciation program; a pharmaceutical company or alcoholic beverage manufacturer funds a drug education program. Since most corporate giving programs are limited to giving in communities where the company operates, a grantseeker’s research should include a company’s areas of operation, including corporate headquarters, subsidiaries, divisions, joint ventures, and community plants and offices. A company will often support programs that provide direct service to employees and other community residents, have potential for public recognition, and improve customer relations in specific geographic areas. A type of support approach can be equally productive. Corporations will often provide funds in a few highly specific ways, such as for capital improvements, operating budgets, and matching employee donations.

Non-cash or in-kind gifts

Many companies also make non-cash contributions. For example, a clothing manufacturer may have “irregulars” or extra clothing to donate to a homeless shelter. It’s important to note that non-cash or in-kind giving can be much more indirect. Charities such as Gifts In Kind International, Share Our Strength, Volunteers of America, and New York’s City Harvest act as pass-through organizations for corporations wishing to provide in-kind gifts, that make sure donations reach those who need them most in an efficient manner. Using these services, rather than applying directly to the company, in-kind giftseekers are then encouraged to apply to the appropriate charity.

Do your homework

It is critical that you learn as much as you can about a corporation’s funding patterns before submitting a request. The funder may have an annual report or printed guidelines as well as information about the company and its giving on a Web page. These will help you target your appeal. Business reports present company philosophy and describe company plans for the community, providing vital background in linking a grant request to company interests. Economic conditions and business news should also be followed. A company laying off employees or running up a deficit may not be the best one to ask for a donation.

Personal contacts

In terms of corporate grantseeking, how important is it to know someone? In the electronic age, actual human contact is becoming less prevalent. With e-mail, fax machines, voice mail, and the World Wide Web all competing for attention, it is sometimes difficult to get in direct touch with someone you know, much less a stranger. Personal contacts can help, but their impact varies from corporation to corporation. Seeking grants from company foundations and direct corporate giving programs with designated philanthropy personnel and explicit guidelines for grantseekers is unlikely to require personal contacts. Personal contacts may be more important when seeking support from the companies with informal giving programs and no formal guidelines or staff to process requests.

Presenting your ideas to a corporate giver

Most corporate givers will expect you to submit a proposal or a preliminary letter of inquiry by mail. A few have application forms you’ll need to fill out. Even fewer have online applications. Be sure to find out in advance what is required. A proposal must be honest, clear, concise, and appropriate in tone. Draw up a realistic budget, and be prepared to divulge all sources of income and how that money will be used, since corporate grantmakers emphasize the bottom line. Many ask for evidence of fiscally responsible, efficient management. Be explicit. State program or agency goals, a plan of action, a timetable, and a method of evaluation. Be brief but comprehensive.

First and foremost, the grantseeker should always consider the funder’s motivation for giving. Establishing the connection with a corporate grantmaker’s goals is the grantseeker’s key to success. Focus on company self-interest more than benevolence. For example, a corporate giver may want to develop a trained pool of potential employees, support research for further products, expand its markets, respond to related social issues, ward off criticism of company policies, and/or increase sales. Consider what a business stands to gain from your program. Point out the potential benefits to the company as well as to your nonprofit and the audiences you serve in your proposal.

Getting corporate support demands creativity, ingenuity, and persistence. Competition will be stiff, but gradually, the World Wide Web is making it easier for the grantseeker to put his or her best foot forward.