2010 Spring Colloquium Audio Recording New Jersey Together Collaboration Toolbox

Corporate Grantmakers

Corporate Foundation:
A corporate (company-sponsored) foundation is a private foundation that derives its grantmaking funds primarily from the contributions of a profit-making business. The company-sponsored foundation often maintains close ties with the donor company, but it is a separate, legal organization, sometimes with its own endowment, and is subject to the same rules and regulations as other private foundations.

Corporate Giving Program:
A corporate giving (direct giving) program is a grantmaking program established and administered within a profit-making company. Gifts or grants go directly to charitable organizations from the corporation. Corporate foundations/giving programs do not have a separate endowment; their expense is planned as part of the company's annual budgeting process and usually is funded with pre-tax income.

Ways to Give
Companies can support causes and organizations in many ways other than through cash grants:

In-kind contributions/donations
Companies can expand charitable giving through contributions of products, supplies, property, or excess inventory and/or through services such as printing, website development, and use of meeting rooms. In-kind gifts are tax-deductible within certain limits.

Loaned talent
Companies may share employees' expertise by allowing them to help a nonprofit on company time for single events/projects or on a routine basis. In addition to helping nonprofits reach their goals, these “loans” can increase your employees' leadership skills and understanding of community needs.

Employee engagement
United Way campaigns and sponsorships of company teams in fundraising events are just a few ways to engage employees in workplace giving opportunities. Companies may choose to link employee volunteerism to business goals or to simply encourage employees to volunteer in their communities.

Materials

  • Corporate Philanthropy -- Striving to Give in Good Times and Bad (PDF)
    Several CNJG members were interviewed in a feature article in the September issue of NJ Business magazine. "Donations from corporate foundations can range from a few hundred dollars to millions, while product contributions find their way to the four corners of the world to help victims of earthquakes, typhoons, tsunamis, hurricanes and a variety of diseases. Meanwhile, employee volunteers can be found making meals in local soup kitchens or distributing medicine and constructing schools in third-world countries,” writes Anthony Birritteri, the magazine’s Editor-in-Chief. As Rhonda Nesmith Chrichlow of Novartis, put it, “Our employees tell us that one of the best things about working at Novartis is our long tradition of giving back to the communities where we live and work.”
  • Legal Guide to Corporate Philanthropy (PDF)
    This guide by attorney David A. Shevlin of New York-based Simpson Thacher & Bartlett discusses issues surrounding corporate philanthropy including governance, direct donations as opposed to donating through a company foundation, and selecting charitable programs to support.

Links