Corporate Giving

1
Corporate Giving
Fighter Mom Friday WorkshopMay 9, 2008
2
Corporate Giving

• The McGraw-Hill Companies
• Our Business

3
Corporate Giving

• Education

Financial Services
Information Media
4
Corporate Giving
5
Corporate Giving
6
Corporate Giving
7
Transition of MHP Corporate Giving
Corporate Giving
Corporate Contributions and Community Relations
Strategic Philanthropy, Collaboration,
Leveraging skills, Employee Engagement
Contributions Office Formalizing of
grantmaking Broad support for civic, educational
cultural needs
MHP Foundation Ad-hoc funding/general support
mirrored McGraw family giving, i.e. literacy
little business unit interaction
1950s-1970s
1970s-1990s
1990s-Present
8
Corporate Giving
MHP Funding Focus

• Economic empowerment Financial Literacy
• Best reflects who we are as a corporation
• Maximizes opportunities for alignment with
  business objectives.
• Maximizes our impact.
• Builds deeper/more sustainable partnerships.

9
Corporate Giving
MHP Direct Grant Partnerships
10
Corporate Giving

• What Drives Corporate Giving?

11
Corporate Giving
Strategic Philanthropy

• The best way to keep philanthropy vibrant, well
  regarded, and well funded in a
• corporation is to demonstrate its regular
  contributions to business success. That
• means that good corporate philanthropy
  incorporates both business interest
• and societal need. To find those areas of
  confluence requires knowing a
• company's businesses, as well as its customers,
  competitors, markets, and
• driving forces.
• Reynold Levy, Give Take A Candid Account of
  Corporate philanthropy
• No longer check-book philanthropy
• Leverage money, people product
• Aligned with business strengths objectives
• Pro-Bono volunteering aka employee skills-based
  volunteering
• Holistic Philanthropy

12
Corporate Giving

• Merrill Lynch helps people in underserved
  communities around the world gain access to
  educational opportunities that lead to wealth
  creation and financial independence.
• The Citi Foundation is committed to enhancing
  economic opportunities for underserved
  individuals and families in the communities where
  we work throughout the world.
• Microsoft giving programs are designed to help
  community-based technology learning centers
  (CTLCs) provide technical skills and resources.
  Microsoft offers a variety of assistance to these
  centers including cash, software, teaching
  materials, and technical expertise.

13
Corporate Giving

• Behind the Scenes

14
Corporate Giving

• Types of grantmakers
• The Council on Foundations defines the two types
  of grantmakers as follows
• Corporate Foundation A corporate
  (company-sponsored) foundation is a private
  foundation that derives its grantmaking funds
  primarily from the contributions of a
  profit-making business. The company-sponsored
  foundation often maintains close ties with the
  donor company, but it is a separate, legal
  organization, sometimes with its own endowment,
  and is subject to the same rules and regulations
  as other private foundations.
• Corporate Giving Program A corporate giving
  (direct giving) program is a grantmaking program
  established and administered within a
  profit-making company. Gifts or grants go
  directly to charitable organizations from the
  corporation. Corporate foundations/giving
  programs do not have a separate endowment their
  expense is planned as part of the company's
  annual budgeting process and usually is funded
  with pre-tax income.

15
Corporate Giving
Types of Grantmakers contd.

• Community Foundations A community foundation is
  a tax-exempt, nonprofit, autonomous, publicly
  supported, philanthropic institution composed
  primarily of permanent funds established by many
  separate donors of the long-term diverse,
  charitable benefit of the residents of a defined
  geographic area. Foundations provide an array of
  services to donors who wish to establish endowed
  funds without incurring the administrative and
  legal costs of starting independent foundations.
• Family Foundations Family foundation" is not a
  legal term, and therefore, it has no precise
  definition. They are often foundations whose
  funds are derived from members of a single
  family. At least one family member must continue
  to serve as an officer or board member of the
  foundation. Most family foundations concentrate
  their giving locally, in their communities.
• Operating Foundations Also called private
  operating foundations, operating foundations are
  private foundations that use the bulk of their
  income to provide charitable services or to run
  charitable programs of their own. They make few,
  if any, grants to outside organizations. The
  Carnegie Endowment for International Peace and
  the Getty Trust are examples of operating
  foundations.
• Private Foundations A nongovernmental, nonprofit
  organization with funds (usually from a single
  source, such as an individual, family or
  corporation) and program managed by its own
  trustees or directors, established to maintain or
  aid social, educational, religious or other
  charitable activities serving the common welfare,
  primarily through grantmaking.
• Public Foundations Public foundations, along
  with community foundations, are recognized as
  public charities by the IRS. Although they may
  provide direct charitable services to the public
  as other nonprofits do, their primary focus is on
  grantmaking.
• Donor Advised Funds A fund held by a community
  foundation where the donor, or a committee
  appointed by the donor, may recommend eligible
  charitable recipients for grants from the fund.
  The community foundation's governing body must be
  free to accept or reject the recommendations.
• Sources Council on Foundations The Giving
  Forum

16
Corporate Giving
Nuts Bolts

• Funds for Corporate-based giving programs
  typically
• originate from a percentage of pre-tax net
  income (PTNI)
• PTNI Industry Standard is 2 approximately
• Recipient must be a 501(c)3 or operating
  under an
• umbrella 501(c)3
• Typically targeted to communities and markets
  that
• business serves.
• Programs are housed in variety of difference
• departments, e.g., HR, Corporate Affairs,
  etc.
• Corporate Contributions ? Corporate
  Responsibility

17
Corporate Giving
Making the ask

• Corporate Giving Officer, Contributions Manager,
  etc.
• Learn a little about the business and a lot about
  its giving program
• First focus locally
• Follow instructions
• Leverage personal relationships, but

18
Corporate Giving
Turning a no into a yes

• Employee Giving Programs (aka dollars for
  doers/dollars for donors)
• Matching Gift
• Annual Giving Campaigns
• Employee Volunteer Grant
• Global Day of Service
• Volunteers
• Participation in events, e.g. runs
• Board Service
• Pro-Bono Capacity Building support, e.g.,
  marketing or PR guidance
• Products and other in-kind support (See Tip 30)
• Space
• Underwriting events /or costs, e.g., food,
  t-shirts
• Auction items

19
Corporate Giving
20
Corporate Giving

• Where can I get more information?
• Fundraising for Social Change, Kim Klein
• Council on Foundations, e.g., About
  Philanthropy.
• Foundation Center, e.g., Foundations Today
  Tutorial.
• Forum of Regional Associations of Grantmakers,
  e.g., Understanding Philanthropy.
• OnPhilanthropy.com (Changing Our World)
• Chronicle on Philanthropy
• BoardNet USA (Volunteer Consulting Group)
• Grantwriting workshops, e.g., Hostos Community
  College

21
Thank you!