Companies generally start foundations (or alternatives to corporate foundations) to help formalize their philanthropic programs. Ad hoc, nonstrategic giving is expensive, ineffective and time consuming, and a formal program can help to prevent that. Here are the four main reasons that companies start their own foundations.
The Las Vegas Metro Chamber of Commerce asked us to present a webinar on Corporate Social Responsibility. If you have 20 minutes or so, the video replay is now available!
When making a donation to charity, most companies want their gifts to be used effectively and efficiently. Donations shouldn’t be wasted on unimportant things, but should instead be used to maximize the social impact of a particular cause. So how should a firm measure the impact of their corporate philanthropy?
The term “corporate foundation” doesn’t actually have any official definition in US tax code. Usually, however, it is used to refer to either a private foundation controlled by a corporation, or a public charity associated with a corporation.
The business benefits of corporate social responsibility can be divided into four categories: Firm Value, Marketing & Sales, Reputation & Risk, and Human Resources.
Nonprofits regularly use the annual reports of other nonprofits to source new prospects. By making a donation, you're signalling that you're a philanthropic company, and philanthropic companies are likely to make donations to other charities. In other words, the number of charitable solicitations you receive will increase – sometimes dramatically. How do you manage the increased number of charity requests?
Recognizing that the motivations and resources available for corporate philanthropy will be different depending on firm size, the following process should provide an effective corporate philanthropy program.
The term “corporate foundation” doesn’t actually have any official definition in US tax code. Usually, however, it is used to refer to either a private foundation controlled by a corporation, or a public charity associated with a corporation. Each of these are variations on a theme, and while there are very important differences between the two, the process for setting them up is mostly the same.
Starting up a new CSR program can be a challenge, because there always seem to be more questions than answers. But here’s a process that should get you on the right track.