COVER STORY
Untitled Page
Corporate giving
How O.C. companies select the nonprofits they support with dollars, products and volunteers.
by steve churmPublished: February 01, 2012
Dan McQuaid paused and pondered the question.
“It’s changed a lot,” he finally said, drawing upon years of working in the nonprofit world. “The days of companies writing a check one time and moving on are over. Companies today want a relationship. They are looking for a relationship with a nonprofit that has value and depth on many levels.”
Welcome to Corporate Giving 2012.
In an era of diminished expectations and soaring need, corporate Orange County – and companies coast-to-coast, for that matter – are embracing a new sense of social responsibility to make their communities better places to live. The concept of “giving back” is not new. But the way corporations are distributing their good fortune to nonprofit agencies, institutions and causes is changing – in some cases, significantly. Some on both sides of the giving equation even suggest for the better.
Orange County companies like Disneyland Resort, PIMCO, Bank of America, Kaiser Permanente, Taco Bell, Edwards Lifesciences and UPS have money to invest to boost the fortunes of Orange County’s more than 12,000 registered nonprofit groups. Many of the larger firms even have foundations that are managing this important practice of charitable giving, because it has considerable marketing, tax, public relations and employee consequences if handled properly. It also has vast implications for making the region a much better place to work and live.
It is one reason a growing number of the county’s largest firms have agreed to join a group called the Corporate Volunteer Council of Orange County (CVCOC), being formed by OneOC. McQuaid is CEO and president of OneOC, a major umbrella organization that is training, assisting and connecting nonprofit agencies.
The majority of funding for nonprofits still comes from private foundations. But a key source of revenue – federal and state grants – is evaporating in the wake of the municipal budget crisis that has left government budgets, large and small, with gaping holes.
Corporations are being looked at by many nonprofits as the cavalry riding to the rescue to bridge the operating shortfalls that many nonprofits are suffering from just as demand for services push to new highs. The intersection of need and corporate resources may be just right.
A recent report from the Committee Encouraging Corporate Philanthropy (CECP) reported that 63 of the top 100 companies in the Fortune 500 increased charitable spending in 2010 compared to ’09. The report also supports what a growing number of company chiefs and nonprofits are saying about wanting fewer, but more meaningful, relationships with charities.
“The companies we are talking to want to know how they can become more engaged with our agency and our cause,” said Maricela Rios-Faust, chief operating officer of Human Options, an Irvine-based domestic violence prevention organization. “They want to know how they can get their employees involved on a volunteer level. They want a more lasting relationship than simply giving us money. They want added value. Our job is to find a way to make that happen so we can secure the support.”
Global investment firm PIMCO, headquartered in Newport Beach, is one of Orange County’s largest corporate donors. The PIMCO Foundation has about $55 million and is aggressive in finding the right match for those dollars. PIMCO has defined the areas that need its support: education, disaster relief and “employee choice,” an opportunity for PIMCO staffers to nominate worthy causes or groups for company donations.
“It’s about getting our employees engaged personally in making a difference,” said Sarah Middleton, vice president of community outreach at the company and a PIMCO Foundation board member.
Middleton and other executives are heartened by the “corporate citizenship movement” that they believe is spreading to many companies in all corners of the globe. But she said the support to charitable causes and agencies comes with a new requirement: accountability.
“Companies want to give and get involved,” Middleton said. “But they are looking at their generosity more strategically and they want to know how the dollars or volunteers will be used and what the ROI [return on investment] will be.”
Rios-Faust said nonprofits understand the challenge: “We have to do a better
job of demonstrating the direct return to the company for giving. There was a time when we accepted the gift and said ‘thank you.’ Now we must show how their gift is truly making a difference for our clients.”
Added McQuaid: “This can be a true win-win-win for the companies, the community and the nonprofits if everyone understands the new rules of engagement for corporate giving.”
The money is there. The question is, can the nonprofits deliver what companies are looking for?
5 GOLDEN KEYS TO CORPORATE COFFERS
The good news is that corporate giving to nonprofits is on the rise again from a low point in 2008. But winning those grants and donations is tougher, because the demand from agencies is reaching all-time levels. Based on interviews with corporate and philanthropy executives, here are five strategies that nonprofits should employ to enhance their chances of tapping a new revenue stream.
1. Know your target: Too many nonprofits fail to do their homework and understand a company’s mission or core values to determine if it matches their own objectives. Companies will donate if there is a match.
2. Follow the volunteers: Many large firms contribute money and in-kind services to support nonprofits and community groups where their employees volunteer. Nonprofits should ask their volunteers where they work, and follow the trail back to corporate headquarters.
3. Ask product questions: Many companies, out of self-interest, support groups and causes that are aligned with their products and services. They want exposure for those goods and seek ways to sponsor events that will give them direct contact with audiences interested in their goods and services.
4. Promote community goodwill: Even big companies with a national or global
footprint want to be loved in their home community. They will support, with dollars and volunteer efforts, the causes that give them local branding. Their employees cheer it, and the local community will readily embrace their products.
5. Offer access: Many companies understand the importance of having their key managers and executives serve on nonprofit and philanthropic boards. It is a leadership and business development opportunity for those firms. Nonprofits should make such options available, and corporate dollars may follow.
A CASE STUDY: WELLS FARGO
Lessons from the philanthropy front lines: how one corporation decides who and why a nonprofit receives money and support.
Jack Toan is Wells Fargo Bank’s BMOC – big man on charity. As vice president and community affairs manager for the Wells Fargo Foundation, he is a gatekeeper to millions of dollars in contributions and for scores of nonprofits seeking support in Orange County and three others in Southern California. With the need for funding at an all-time high, corporations throughout the region are being inundated with pitches and pleas for help.
Wells Fargo and other firms recognize the need and increasingly have the resources to donate, despite the slow economic recovery. But they are asking nonprofits to be more specific and strategic in presenting their case for contributions. As part of the company’s Social Responsibility Group, Toan pulled back the curtain for OC METRO on how the bank approaches the key issue of charitable giving.
• OCMETRO: Generally speaking, how has the corporate view about charitable giving changed as a result of the recession and the major shifts in our economy over the past three to four years?
JACK TOAN: The economy has had a dramatic impact on services provided by nonprofit organizations serving our communities. Demand for programs addressing basic needs – food, shelter, medical care for the uninsured, etc. – has increased. Massive job losses have had a tremendous ripple effect, increasing the need for services from food banks and homeless service providers.
We’ve seen deep cuts to education, as well. Many of our nonprofit partners have found it difficult to access financial support, as corporations are tightening their belts. While many corporations are feeling the effects of the down economy, Wells Fargo’s charitable giving has not wavered. We are responding to the increased demand for human services by shifting our focus to address the immediate needs in the community.
Aside from basic needs and education, job creation and workforce development is another major focus where Wells Fargo is looking to make an investment. When people are working and communities are thriving, so do local businesses and the economy. Currently, I am chairing a subcommittee of the OC Funders Roundtable, a collaborative of corporate, public and private foundations in Orange County, to explore ways we can help support job development in Orange County.
• OCM: Has the need and demand for corporate giving increased in recent years and in what areas?
JT: The demand has certainly increased as nonprofit organizations across all sectors are looking to uncover new sources of revenues. However, corporate giving in general is still small, relative to private foundations and combined individual giving. Although Wells Fargo has been active in the social responsibility arena for a very long time, I am seeing a lot of companies beginning to adopt social responsibility programs into their business model. It’s clear they understand that people are paying more attention to the social impact of corporations.
It’s no surprise that many companies today support activities that their employees are involved in – causes that impact our communities. Investing in our communities is not just good for business and the health of our communities, it’s simply the right thing to do.
• OCM: In the case of Wells Fargo, how has the company responded to this rising need in terms of cash contributions, volunteers and in-kind services?
JT: At Wells Fargo, we want to promote the long-term economic prosperity and quality of life for everyone in our communities. In 2010, we donated $219 million to more than 19,000 nonprofits nationally, surpassing $200 million for the third year in a row. In Orange County, Wells Fargo and our team members donated more than $5.6 million to 543 nonprofit organizations and schools. Our staff has served on nearly 100 nonprofit boards and reported 12,700 volunteer hours in Orange County.
Each year, Wells Fargo team members raise money for the nonprofit of their choice during our employee-giving Community Support Campaign. Wells Fargo matched team members’ financial contributions to schools dollar-for-dollar, up to $5,000 per person per year.
In Greater Los Angeles/Orange County, our staff has donated $6.1 million of their own dollars to local nonprofits and schools. This is indicative of our personnel’s commitment to their communities and largely explains why Wells Fargo – the nation’s 12th largest employer – has been United Way’s No. 1 largest corporate employee-giving campaign over the past two years, according to United Way Worldwide.
• OCM: How do you decide where to spend and contribute? Who influences that decision?
JT: The Wells Fargo Foundation makes grants in three primary areas: community development, education and human services. And Wells Fargo is supportive of those nonprofit agencies for which Wells Fargo team members have made a commitment to volunteer via direct service through committee or board membership. We also have an internal committee composed of senior leaders from across our major business lines in Orange County, who I work with closely to help guide our giving strategy and community involvement.
• OCM: Much has been written and discussed about younger employees and their involvement in giving back, and their requirement that employers are more engaged in philanthropy. Have you seen this at Wells Fargo? How have you responded?
JT: I have definitely seen greater interest in community involvement and philanthropy, especially with our younger staff. However, our philanthropic efforts are not a result of recent trends. Wells Fargo has a proud history of supporting communities. That spirit has been part of our culture since we opened our doors 160 years ago, and we’ll continue to be responsible and active members of our communities.
We encourage our personnel to get involved with organizations and causes they care about, and many of them are community leaders and volunteers. They learn local needs first-hand, and then they bring the right resources together so Wells Fargo can help. In addition, we have a local Volunteer chapter that connects team members with volunteer opportunities across Orange County. We also have partnered with OneOC to deliver board training to more than 200 employees. Fifty nonprofits participated in this matching effort.
• OCM: What do you look for from a nonprofit before you make a donation?
JT: In addition to our three focus areas around community development, education and human services, we look to see if an organization is in good financial health, has diverse board representation, implements strong and effective programs with sufficient capacity to implement those programs, and has a strong infrastructure.
• OCM: How can nonprofits do a better job selling their need?
JT: My advice would be to stay focused on the organization’s mission and be prepared to clearly communicate the mission to stakeholders. Actively engage your board of directors and leverage their expertise and the resources they bring with them. Also, a good assessment of an organization’s programs can help funders determine their effectiveness, which can translate to strong results for the community.
|
||||
|
“It’s changed a lot,” he finally said, drawing upon years of working in the nonprofit world. “The days of companies writing a check one time and moving on are over. Companies today want a relationship. They are looking for a relationship with a nonprofit that has value and depth on many levels.” Welcome to Corporate Giving 2012. In an era of diminished expectations and soaring need, corporate Orange County – and companies coast-to-coast, for that matter – are embracing a new sense of social responsibility to make their communities better places to live. The concept of “giving back” is not new. But the way corporations are distributing their good fortune to nonprofit agencies, institutions and causes is changing – in some cases, significantly. Some on both sides of the giving equation even suggest for the better. Orange County companies like Disneyland Resort, PIMCO, Bank of America, Kaiser Permanente, Taco Bell, Edwards Lifesciences and UPS have money to invest to boost the fortunes of Orange County’s more than 12,000 registered nonprofit groups. Many of the larger firms even have foundations that are managing this important practice of charitable giving, because it has considerable marketing, tax, public relations and employee consequences if handled properly. It also has vast implications for making the region a much better place to work and live. It is one reason a growing number of the county’s largest firms have agreed to join a group called the Corporate Volunteer Council of Orange County (CVCOC), being formed by OneOC. McQuaid is CEO and president of OneOC, a major umbrella organization that is training, assisting and connecting nonprofit agencies. The majority of funding for nonprofits still comes from private foundations. But a key source of revenue – federal and state grants – is evaporating in the wake of the municipal budget crisis that has left government budgets, large and small, with gaping holes. Corporations are being looked at by many nonprofits as the cavalry riding to the rescue to bridge the operating shortfalls that many nonprofits are suffering from just as demand for services push to new highs. The intersection of need and corporate resources may be just right. A recent report from the Committee Encouraging Corporate Philanthropy (CECP) reported that 63 of the top 100 companies in the Fortune 500 increased charitable spending in 2010 compared to ’09. The report also supports what a growing number of company chiefs and nonprofits are saying about wanting fewer, but more meaningful, relationships with charities. “The companies we are talking to want to know how they can become more engaged with our agency and our cause,” said Maricela Rios-Faust, chief operating officer of Human Options, an Irvine-based domestic violence prevention organization. “They want to know how they can get their employees involved on a volunteer level. They want a more lasting relationship than simply giving us money. They want added value. Our job is to find a way to make that happen so we can secure the support.” Global investment firm PIMCO, headquartered in Newport Beach, is one of Orange County’s largest corporate donors. The PIMCO Foundation has about $55 million and is aggressive in finding the right match for those dollars. PIMCO has defined the areas that need its support: education, disaster relief and “employee choice,” an opportunity for PIMCO staffers to nominate worthy causes or groups for company donations. “It’s about getting our employees engaged personally in making a difference,” said Sarah Middleton, vice president of community outreach at the company and a PIMCO Foundation board member. Middleton and other executives are heartened by the “corporate citizenship movement” that they believe is spreading to many companies in all corners of the globe. But she said the support to charitable causes and agencies comes with a new requirement: accountability. “Companies want to give and get involved,” Middleton said. “But they are looking at their generosity more strategically and they want to know how the dollars or volunteers will be used and what the ROI [return on investment] will be.” Rios-Faust said nonprofits understand the challenge: “We have to do a better job of demonstrating the direct return to the company for giving. There was a time when we accepted the gift and said ‘thank you.’ Now we must show how their gift is truly making a difference for our clients.” Added McQuaid: “This can be a true win-win-win for the companies, the community and the nonprofits if everyone understands the new rules of engagement for corporate giving.” The money is there. The question is, can the nonprofits deliver what companies are looking for? 5 GOLDEN KEYS TO CORPORATE COFFERS The good news is that corporate giving to nonprofits is on the rise again from a low point in 2008. But winning those grants and donations is tougher, because the demand from agencies is reaching all-time levels. Based on interviews with corporate and philanthropy executives, here are five strategies that nonprofits should employ to enhance their chances of tapping a new revenue stream. 1. Know your target: Too many nonprofits fail to do their homework and understand a company’s mission or core values to determine if it matches their own objectives. Companies will donate if there is a match. 2. Follow the volunteers: Many large firms contribute money and in-kind services to support nonprofits and community groups where their employees volunteer. Nonprofits should ask their volunteers where they work, and follow the trail back to corporate headquarters. 3. Ask product questions: Many companies, out of self-interest, support groups and causes that are aligned with their products and services. They want exposure for those goods and seek ways to sponsor events that will give them direct contact with audiences interested in their goods and services. 4. Promote community goodwill: Even big companies with a national or global footprint want to be loved in their home community. They will support, with dollars and volunteer efforts, the causes that give them local branding. Their employees cheer it, and the local community will readily embrace their products. 5. Offer access: Many companies understand the importance of having their key managers and executives serve on nonprofit and philanthropic boards. It is a leadership and business development opportunity for those firms. Nonprofits should make such options available, and corporate dollars may follow. A CASE STUDY: WELLS FARGO Lessons from the philanthropy front lines: how one corporation decides who and why a nonprofit receives money and support. Jack Toan is Wells Fargo Bank’s BMOC – big man on charity. As vice president and community affairs manager for the Wells Fargo Foundation, he is a gatekeeper to millions of dollars in contributions and for scores of nonprofits seeking support in Orange County and three others in Southern California. With the need for funding at an all-time high, corporations throughout the region are being inundated with pitches and pleas for help. Wells Fargo and other firms recognize the need and increasingly have the resources to donate, despite the slow economic recovery. But they are asking nonprofits to be more specific and strategic in presenting their case for contributions. As part of the company’s Social Responsibility Group, Toan pulled back the curtain for OC METRO on how the bank approaches the key issue of charitable giving. • OCMETRO: Generally speaking, how has the corporate view about charitable giving changed as a result of the recession and the major shifts in our economy over the past three to four years? JACK TOAN: The economy has had a dramatic impact on services provided by nonprofit organizations serving our communities. Demand for programs addressing basic needs – food, shelter, medical care for the uninsured, etc. – has increased. Massive job losses have had a tremendous ripple effect, increasing the need for services from food banks and homeless service providers. We’ve seen deep cuts to education, as well. Many of our nonprofit partners have found it difficult to access financial support, as corporations are tightening their belts. While many corporations are feeling the effects of the down economy, Wells Fargo’s charitable giving has not wavered. We are responding to the increased demand for human services by shifting our focus to address the immediate needs in the community. Aside from basic needs and education, job creation and workforce development is another major focus where Wells Fargo is looking to make an investment. When people are working and communities are thriving, so do local businesses and the economy. Currently, I am chairing a subcommittee of the OC Funders Roundtable, a collaborative of corporate, public and private foundations in Orange County, to explore ways we can help support job development in Orange County. • OCM: Has the need and demand for corporate giving increased in recent years and in what areas? JT: The demand has certainly increased as nonprofit organizations across all sectors are looking to uncover new sources of revenues. However, corporate giving in general is still small, relative to private foundations and combined individual giving. Although Wells Fargo has been active in the social responsibility arena for a very long time, I am seeing a lot of companies beginning to adopt social responsibility programs into their business model. It’s clear they understand that people are paying more attention to the social impact of corporations. It’s no surprise that many companies today support activities that their employees are involved in – causes that impact our communities. Investing in our communities is not just good for business and the health of our communities, it’s simply the right thing to do. • OCM: In the case of Wells Fargo, how has the company responded to this rising need in terms of cash contributions, volunteers and in-kind services? JT: At Wells Fargo, we want to promote the long-term economic prosperity and quality of life for everyone in our communities. In 2010, we donated $219 million to more than 19,000 nonprofits nationally, surpassing $200 million for the third year in a row. In Orange County, Wells Fargo and our team members donated more than $5.6 million to 543 nonprofit organizations and schools. Our staff has served on nearly 100 nonprofit boards and reported 12,700 volunteer hours in Orange County. Each year, Wells Fargo team members raise money for the nonprofit of their choice during our employee-giving Community Support Campaign. Wells Fargo matched team members’ financial contributions to schools dollar-for-dollar, up to $5,000 per person per year. In Greater Los Angeles/Orange County, our staff has donated $6.1 million of their own dollars to local nonprofits and schools. This is indicative of our personnel’s commitment to their communities and largely explains why Wells Fargo – the nation’s 12th largest employer – has been United Way’s No. 1 largest corporate employee-giving campaign over the past two years, according to United Way Worldwide. • OCM: How do you decide where to spend and contribute? Who influences that decision? JT: The Wells Fargo Foundation makes grants in three primary areas: community development, education and human services. And Wells Fargo is supportive of those nonprofit agencies for which Wells Fargo team members have made a commitment to volunteer via direct service through committee or board membership. We also have an internal committee composed of senior leaders from across our major business lines in Orange County, who I work with closely to help guide our giving strategy and community involvement. • OCM: Much has been written and discussed about younger employees and their involvement in giving back, and their requirement that employers are more engaged in philanthropy. Have you seen this at Wells Fargo? How have you responded? JT: I have definitely seen greater interest in community involvement and philanthropy, especially with our younger staff. However, our philanthropic efforts are not a result of recent trends. Wells Fargo has a proud history of supporting communities. That spirit has been part of our culture since we opened our doors 160 years ago, and we’ll continue to be responsible and active members of our communities. We encourage our personnel to get involved with organizations and causes they care about, and many of them are community leaders and volunteers. They learn local needs first-hand, and then they bring the right resources together so Wells Fargo can help. In addition, we have a local Volunteer chapter that connects team members with volunteer opportunities across Orange County. We also have partnered with OneOC to deliver board training to more than 200 employees. Fifty nonprofits participated in this matching effort. • OCM: What do you look for from a nonprofit before you make a donation? JT: In addition to our three focus areas around community development, education and human services, we look to see if an organization is in good financial health, has diverse board representation, implements strong and effective programs with sufficient capacity to implement those programs, and has a strong infrastructure. • OCM: How can nonprofits do a better job selling their need? JT: My advice would be to stay focused on the organization’s mission and be prepared to clearly communicate the mission to stakeholders. Actively engage your board of directors and leverage their expertise and the resources they bring with them. Also, a good assessment of an organization’s programs can help funders determine their effectiveness, which can translate to strong results for the community. |
||||
