Corporate giving: Support those who support Southwest Florida

This week, I would like to continue the discussion on foundations by looking at corporate giving through Corporate-sponsored Foundations and corporate giving programs.

Corporations of all sizes give philanthropically through a variety of ways.

Cash donations are not the only type of corporate support. In-kind support such as the donation of equipment, the use of corporate facilities, printing or design services, staff volunteers or access to staff expertise are common forms of corporate giving as well.

Corporate donations to charity can be facilitated through a formal Foundation, simply through a giving program often managed by a company's community or public relations department, or by a combination of the two. Some corporations also give sponsorships through their marketing budgets. Nonprofit organizations need to be aware of what type of gift they are asking for when approaching a company.

Corporate giving, whether through a foundation or not, is usually limited to programs of benefit to employees, their families, or residents of specific locations where the company conducts business.

Corporate-sponsored Foundations are separate legal entities that have strong ties to the corporation and rely on regular contributions from the parent company and/ or subsidiaries to support their giving programs. They must follow the appropriate regulations governing private foundations, including filing an annual Form 990-PF with the IRS. Often, Corporate-sponsored Foundations grow their endowments in profitable years and tap them in leaner years.

Giving by the nation's nearly 2,600 grantmaking corporate foundations grew to an estimated $4.4 billion in 2007, up about 7 percent from 2006 according to a report published by the Foundation Center.

Examples of Corporate Foundations are the AT&T Foundation, The Target Foundation, Home Depot Foundation, and Wal- Mart Foundation.

Corporate giving programs, on the other hand, are not separately incorporated and do not adhere to private foundation laws or regulations or file a Form 990-PF, do not have an endowment, and frequently include employee matching gifts and in-kind gifts as part of their grantmaking activities.

This category also includes companies that donate a portion of their profits to a charity or cause.

A well-known example of a giving program is Target's "5% Giving" program where 5 percent of the corporation's income goes back into the communities (where they have a store) through local store grants to nonprofit organizations, team member involvement, and their Take Charge of Education program.

The Foundation Center reports that more than half of all active corporate foundations have been established since 1990.

The idea of corporate giving isn't just a "fortune 500" concept. Local businesses are seeing the value of supporting the community. Companies ranging from small single "mom and pops" to regional corporations help sustain our nonprofit agencies, schools and churches through marketing sponsorships, inkind donations, and volunteering of their employees' time and services.

This year, our division, Bonita Springs Community Foundation honored Sarah and David Zimmermann, owners of Royal Scoop, with the Love of Bonita award for their tireless and wide-spread support of their community. In the past this award has been given to an individual, but this year the couple received the award together for their efforts made through their company to build up and give back to the Bonita Springs area.

By strengthening communities and motivating employees, companies are creating a double bottom line for themselves that should encourage corporate philanthropy, even in challenging economic times.

As I said in previous weeks about other types of foundations, it's important to know who is supporting your community. Do you know what kind of philanthropy the stores you are frequenting engage in?

Are you spending your dollars at the companies who are giving back to your community? Make a difference. Support your community by supporting local businesses who give back to Southwest Florida.

The Southwest Florida Community Foundation has been supporting the communities of Lee, Charlotte, Collier, Glades and Hendry through endowed funds for more than 30 years. With assets of more than $57 million and 314 endowed funds, the community foundation has provided more than $30 million in grants and scholarships to the communities it serves.

For more information, please call 274-5900, or visit their web site at www.floridacommunity.com.