Outlook for corporate giving better than expected

Outlook for corporate giving better than expected

News

Corporate charitable giving may hold better than expected in 2009, according to a new survey of over 70 major US corporations by the LBG Research Institute.

The majority of corporations say that their budget for giving will increase or stay the same in 2009, according to Doing More with Less: How the Economic Downturn Will Impact Corporate Giving in 2009. Half of those with corporate foundations report that the foundation’s budget will stay the same in 2009.

The overall drop in corporate giving should be far smaller than the 12.1% fall in corporate giving reported by Giving USA in 2001, according to the report.

Donna Devaul, executive director of the LBG Research Institute, said, “When you look at the size of the predicted budget increases and decreases across the sample, the percentage decrease will probably be in the range of 3% to 5%.”

Although this could still have a serious impact on many non-profit organisations, others may benefit. Over 80% of corporations reported that their giving will be more strategic in 2009.

Around 23% of companies that support basic needs charities reported that they plan to increase support. Of those charities that support environmental causes, 24% said that their support would increase.

Support for arts and culture organisations seem most under threat. Of the companies that support such organisations, only 4% plan to increase their giving and 49% plan to decrease their support in this area.

For enquiries or to purchase a copy of the complete report, visit the LBG website.