LOCAL ECONOMIC SNAPSHOT | CORPORATE GIVING

Philanthropy on the rebound

By SHERYL JEAN
Staff Writer sjean@dallasnews.com

KYLE ALCOTT
Staff Artist kalcott@dallasnews.com

Thousands of U.S. companies and corporate foundations donate time, money and services to causes. Texas is home to some of the nation's largest corporate and grant-making foundations, giving tens of millions of dollars away each year. But corporate philanthropy dwindled during the recession, causing many charities and their constituents to struggle. The tide appears to be turning. U.S. corporate giving, led by cash and in-kind support from pharmaceutical companies, rose in 2009 and 2010.

Total U.S. charitable giving

Most corporate giving programs (81 percent) provide cash directly or through a foundation, and other gifts total 19 percent, according to a survey by the Committee Encouraging Corporate Philanthropy. Energy firms (82 percent) give the most cash. Health care (46 percent) leads noncash donations, such as in-kind services and medicine. On the receiving end, health and social services programs (30 percent) reap the most corporate donations, followed by education (25 percent). Corporations
(In billions) 350 300 $285.8 250 200 150 100 50 0 01 02 03 04 05 06 07 08 09 10

Demographics of high-net-worth donors

In 2009, 98 percent of U.S. high-networth households donated to charity. Such households in the South, including Texas, with an entrepreneur or retiree gave the most money. AVERAGE TOTAL OF GIVING Currently working 2007 $90,815 $40,294 2009

Foundations

Bequests

Individuals

$327.2 $282.6 $282.1 $301.3

$320.2 $326.6

$303.8

$284.9 $290.9

Managing or selling a business 2007 2009 2007 2009 Retired 2007 2009 $79,828 $67,302 $59,771 $54,133 $54,386 $135,026

Retiring within five years

Note: Dollars were adjusted for inflation using the Consumer Price Index.
SOURCE: Giving USA Foundation

SOURCE: Bank of America Merrill Lynchs 2010 Study of High Net Worth Philanthropy

Largest U.S. corporate foundations by total giving

Five Texas corporate foundations gave a total of $199.2 million in 2008 and 2009, ranking No. 5 among the 50 largest corporate foundations. Texas' share accounted for nearly 8 percent of the $2.5 billion given by the 50 corporate foundations in 2009, the latest data available. Rank 1 2 3 4 5 8 18 19 24 38 Foundation Sanofi-Aventis Patient Assistance Foundation Inc. The Wal-Mart Foundation Inc. The Bank of America Charitable Foundation Inc. Novartis Patient Assistance Foundation Inc. GE Foundation ExxonMobil Foundation AT&T Foundation BP Foundation Inc. The Boeing Company Charitable Trust Valero Energy Foundation State New Jersey Arkansas North Carolina New Jersey Connecticut Texas Texas Texas Texas Texas $38.2 $37.2 $30.1 $20.2 $103.6 $73.5 $216.6 $186.1 $177.2 Total giving
(In millions)

$321.4

Note: Total giving includes grants, scholarships and employee matching gifts. Excludes set-asides, loans, program-related investments and program expenses. Data based on the latest audited financial data as of January 2011, but data on some individual foundations may be more current.
SOURCE: The Foundation Center

The bottom line

Companies are being more proactive about getting involved in the community. Were getting calls from companies; this has never happened before. Theyre looking for easier, more streamlined ways to make an impact on their communities. I see it with more small and midsized companies. Pam Gerber, executive director, Entrepreneurs for North Texas We had a broader purview of our corporate giving on general education, but since 2010 weve been more focused on science and math. This is important because the U.S. ranked 25th in math proficiency and 17th in science of 31 developed countries in an Organisation for Economic Co-operation and Development study. Trisha Cunningham, chief citizenship officer, Texas Instruments Inc. Corporate giving is expected to continue gaining steam this year. As companies become more comfortable with the national economy and their own position, perhaps we'll start to see more cash donations to match the uptick we've seen in in-kind donations, volunteerism and pro-bono services.

Sheryl Jean, staff writer, The Dallas Morning News