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economic performAnce And GivinG Philanthropy RiSE in aGGREGatE total GiVinG MEDian total GiVinG REMainS Flat Ratio oF GiVinG to pRE-taX pRoFit striking finding is that one-third of companies have increased their ��� 13 percent decreased giving, then increased it giving by 25 percent or more. By contrast, 10 percent of companies ��� 18 percent of Since 2009, aggregate total giving, Median total giving indicates what companies had profit and in one or more not Pre-tax flat giving giving levels are reported the sum of all givingpercentCECP since 2009. This time periods. i.e., giving reduced by 25 in the or more companies gave each year. While strictly correlated as a result of the represents an improvement on the extremes reported by 2010 data. sample, has risen by 27%, as shown medians prevent extreme values from wide variety of budget-determining Year-by-Year Headlines in Philanthropy Rise in Aggregate Total Giving in Figure 2. While cash and non-cash affecting the outcome, minor jumps factors across surveyed companies. In Since 2009, aggregate total giving���the sum of all giving in the CECP giving have both been on the rise,the beginning ofresults appear in year-over-year by 27 percent, as shown in Figure 2. While cash the in the the fact, in 2011, 45% of the companies Here is a recap of giving headlines since sample���has risen proportion of cash to non-cash giving comparisons because and non-cash giving have both been on the reductionsproportion of the increments that reported profit rise, the nevertheeconomic downturn: in aggregate has declined in recent between companies in a sorted list giving in aggregate has declined in recent years. less increased their total giving (n=51). ��� 2007: Despite late-summer economic warning signs, a strong cash to non-cash years of companies increased giving from 2006 to 2007, with a median) are uneven (N=144): (used to find the majority Nonetheless, the economic health of the by nature. quarter of companies doing so by 25 percnet or more. % Cash % non-Cash Figure 3 shows that median giving ��� 2008: Distress at companies such as AIG 60% Lehman Brothers and 2009 40% remained almost dominated headlines in 2008, yet corporate giving levels held steady,flat between 2010 2010 37% 63% with few companies making significant increases and 2011 ($24.6 million and $24.4 or decreases. 2011 36% 64% million, respectively). However, firm impacts all budgets, including for corporate philanthropy. For this reason, it is interesting to note changes in a firm���s profitability. From 2009 to 2011, pre-tax profit increased for 70% of companies, decreased for 26%, and remained flat for 3% (N=134). ��� 2009: Though profits began to rebound after the low of3 also shows a quick restoraFigure 2008, iMpaCt oF thE corporate giving dropped in 2009 for 59 percenttion of the median from a low in of companies. hEalth CaRE inDuStRy Many companies compensated for fewer cash grants with 2009 of $22.6 million. product donations. Impact of the Healthcare Industry corporate pre-tax profit Depressed Pharmaceuticals companies account Pharmaceuticals companies account for 72 percentof giving to in 2009 caused the ratio of total non-cash Ratio oF GiVinG to REVEnuE for 72% surged non-cash giving ��� 2010: Profitsof total back for many companies, although some giving (largely due to medicine donations). Excluding Pharmaceuticals pre-tax profit to spike. The ratio later industries were still awaiting donations). companies from (largely due to medicine recovery. Giving was atanalysis of same-year total givingthe analysis shows: profits rose in 2010 and An extremes��� withdrew as either much higher or much lower for each company than in 2007. Excluding Pharmaceuticals companies as a percentage of revenue showed the ratio unchanged, at 0.11% each year The Path Toward Stabilizing Giving from how to 2011 At the individual company level, here is a breakdown of2009 giving (N=140). from the analysis shows (n=136): % Cash 2011 (N=114): total Giving as a % of pre-tax profits (Medians) % non-Cash changed from 2009-2010 and from 2010-2011: 2009 69% 31% ��� 36 percent increased giving in both time periods 2010 69% both time periods 31% ��� 15 percent decreased giving in ��� 18 percent 2011 increased giving, then decreased it 64% 36% 2009 1.15% 2010 0.96% 2011 0.98% fiGure 2 fiGure 3 Cash and non-Cash Giving for all Companies, aggregates, inflation-adjusted total Giving for all Companies, Medians, inflation-adjusted $15.72 $14.57 $24.56 $24.40 $12.35 $10.12 $9.15 $7.41 $4.94 $5.42 $5.60 2009 2010 2011 cash 2009 2010 2011 non-cash n=144 10 $ millions $ billions $22.62 GivinG in numbers: 2012 edition mAtched-set dAtA n=144 mAtched-set dAtA committee encourAGinG corporAte philAnthropy WINTER 2012 | www.thecro.com [9]