2014 Giving in Numbers:

Highlights from CECP’s Annual Research

Michael Stroik Manager, Research and Analytics

CECP

Speaker: Facilitator:

Lauren Wagner Sr. Manager, Engagement

VolunteerMatch

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2 2

Giving in Numbers: 2014 Edition

Key Takeaways November 20, 2014

Michael Stroik Manager, Research and Analytics

CECP

mstroik@cecp.co

Today’s Discussion

About CECP

Explore Key Takeaways from Giving in Numbers

• Giving and Business Performance Rise Together

• Grantmaking Evolves in Post-Recession Era

• Employees Take Center Stage in CSR

• Corporations Evaluate the Social Value of Grants

4

5

About CECP

5

“I helped to start CECP with the belief that corporate

America could be a force for good in society.”

- Paul Newman

6

2013 Industry Giving Comparisons – Median Giving

as a % of Pre-Tax Profit

1.23%

1.06%

0.98%

0.76%

1.58%

0.96%

0.76%

1.12%

1.25%

1.10%

Utilities (n=18)

Technology (n=25)

Materials (n=16)

Industrials (n=25)

Health Care (n=24)

Financials (n=48)

Energy (n=11)

Consumer Staples (n=20)

Consumer Discretionary (n=26)

Communications (n=10)

7

Identifying the Most Generous Companies of 2013

using a Diverse Range of Metrics

Total Giving

(N=261)

Cash Giving

(N=261)

Total Giving

as a % of

Revenue

(N=241)

Total Giving

as a % of

Pre-Tax

Profit

(N=224)

Top 25%

(75th Percentile) $53.8 Million $35.5 Million 0.22% 1.95%

Bottom 25%

(25th Percentile) $7.5 Million $5.5 Million 0.06% 0.60%

Note: The Top 25% is the top quartile: the value of the data point below which three-quarters of the data lie when ranked in

ascending order. The Bottom 25% is the bottom quartile: the value of the data point below which one-quarter of the data lie when

ranked in ascending order.

Giving and Business Rise Together

64% of Companies Increased Giving from 2010 to 2013

9

Distribution of Companies by Changes in

Total Giving Between 2010 and 2013

Non-Cash Giving Drove Aggregate Increases

from 2010 to 2013

Companies Giving

at least 10% More

in 2013 than 2010

(N=75)

All Other

Companies (N=69)

Aggregate Total Giving +47% -16%

Total Direct Corporate Cash Giving +29% -14%

Total Foundation Cash Giving +4% -7%

Total Non-Cash Giving +66% -20%

Median Giving as a % of Revenue +0.05pp -0.02pp

Median Revenue +11% -3%

10

Among Companies Increasing Contributions By

More Than 10% Since The Global Recession…

11

Profits

increased for

the majority of

companies.

Median

revenues

increased

11%.

Understanding Context – Meta Study

Nearly all Consumer Staples Companies Increased

Giving from 2010 to 2013, Driven by Non-Cash Gifts

12

2010 to 2013

Industry % of Companies

Increasing Giving

Median % Change

in Revenues

Consumer Staples (N=12) 92% +14%

Industrials (N=11) 73% +19%

Health Care (N=21) 71% +5%

Materials (N=6) 67% +5%

Energy (N=8) 63% -19%

Financials (N=35) 63% +3%

Technology (N=19) 58% +26%

Consumer Discretionary

(N=17) 53% +2%

Communications (N=6) 50% +13%

Utilities (N=9) 44% -2%

“Excess

non-cash

resources.”

“Business

performance

is projected

to continue

improving.”

“Increasing

focus in

strategic

areas…thus,

moving away

from certain

categories.”

Giving Expansion Slowed in 2013

13

$22.1

$26.8

$31.3 $33.1

2010 2011 2012 2013

+21%

+17% +6%

$26.6 $25.4 $25.2

$23.8

2010 2011 2012 2013

-5% -1% -6%

Companies Giving at least 10%

More in 2013 than 2010 (n=75)

All Other Companies (n=75)

The year 2013 saw the largest marginal change by companies that decreased

giving and the smallest marginal change by companies that increased giving.

Note: Matched-Set Data, Inflation-Adjusted.

$ M

illio

ns

Grantmaking Evolves in Post-

Recession Era

Grant Sizes are Growing while the Number of

Recipients Per Grantmaker Declined from 2010 to 2013

15 Note: Medians, Inflation-Adjusted, N=38.

16

Note: N=63

1000 975

744 701

2010 2011 2012 2013

Median # of Grants by Year

See Program Type Sheet ‘Prog Type – Grants Decreasers’

Giving Changes Among Companies

Decreasing # of Grants from 2010 to 2013

Program Type

% Change in

Average Giving

Level

Higher Education +69%

Community & Economic

Development +56%

K-12 Education -16%

Civic & Public Affairs -18%

Environment -19%

Disaster Relief -32%

Culture & Arts -40%

Note: N=29

Approved Grants Decline from 2010 to 2013; Culture &

Arts Hit Hardest by Changing Strategies

Despite Decline in Grants Approved, Team Sizes Have

Mostly Increased Since 2010

17

2.0

4.0

11.0

8.5

19.0

25.5

3.5

5.0

10.0 10.0

21.0

26.0

3.5

5.0

10.0 10.0

24.0

22.0

3.5

5.5

9.0 10.0

24.0

28.5

Cash Giving Under $5Million (n=14)

Cash Giving Between $5+and $15 Million (n=20)

Cash Giving Between $15+and $25 Million (n =14)

Cash Giving Between $25+and $50 Million (n=18)

Cash Giving Between $50and $100 Million (n=14)

Cash Giving Over $100Million (n=10)

Team Size (Contributions FTEs) by Giving Tier, 2010 to 2013, Medians

2010 2011 2012 2013

Education Continues to be the Most Popular Program

Area Supported by Corporations

18

Civic & Public Affairs, 5% Community &

Economic Development,

14%

Culture & Arts, 5%

Disaster Relief, 3% Education,

Higher, 12%

Education, K-12, 16%

Environment, 3%

Health & Social Services, 27%

Other, 15%

Note: Average Percentages, N=181.

Fastest Growing Cause

Area

Employees Take Center Stage in

Corporate Social Responsibility

CEOs at CECP’s Board of Boards Conference Identified

Employees as the Most Influential Stakeholder

20

Poll Question at February’s Board of Boards Conference: Encouragement from which stakeholder group would matter most in a decision to expand your company’s investment in the community?

0%

3%

3%

14%

22%

22%

36%

Government

Media

Nonprofit/Community Leaders

Shareholders

Board of Directors

Customers

Employees

CEO Perspective

21

“Our employee engagement programs pay for

themselves as they translate into loyalty, brand

reputation, and partnerships along the supply

chain.”

Ken Powell

CEO and Chairman

General Mills

Chief Giving Officers at Leading Companies Identify

Paid-Release-Time as Most Engaging Program

22

Poll Question at May’s CECP Summit: Which tactic do you

believe is the most effective for increasing employee satisfaction

with your company?

1. Volunteer Time Off: 47%

2. Ongoing (Year-Round) Matching Gifts: 22%

3. Communicating (internally) about Signature

Programs or Large Grants: 21%

4. Matching Gifts Events (like United Way): 9%

Note: N=135.

More Companies Gave Time Off for Volunteering

in 2013

23 Note: Matched Set, N=100.

Percentage of Companies Offering

Domestic Service Programs by Year

34% 33%

44%

50% 51% 53% 54%

59%

2010 2011 2012 2013

Pro Bono Service Paid-Release Time

Paid-Release-Time Volunteer Programs are Most Common

in the Financials and Cons. Discretionary Industries

24

33%

33%

38%

39%

45%

55%

60%

60%

68%

74%

Materials, n=15

Utilities, n=15

Consumer Staples, n=16

Industrials, n=18

Technology, n=20

Communications, n=11

Energy, n=10

Health Care, n=25

Consumer Discretionary, n=28

Financials, n=46

Percentage of Companies Offering

Volunteer Time Off in 2013

Employees Are Taking Advantage of Generous

Volunteer Opportunities

25

45,211 47,506

55,623

61,938

31.97%

33.53%

35.31%

36.56%

25.00%

28.00%

31.00%

34.00%

37.00%

40.00%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2010 2011 2012 2013

Median # of Hours Volunteered On Company Time (N=28)

Average Percentage of Employees Volunteering At Least 1 Hour On Company Time (N=36)

Dollars for Doers and Employee Volunteer Awards

Were Most Common Programs in 2013

26

3%

4%

32%

40%

41%

47%

49%

50%

51%

55%

57%

59%

Volunteer Sabbatical

Incentive Bonus

Retiree Volunteering

Team Grants

Pro Bono Service

Board Leadership

Company Wide Day of Service

Family Volunteering

Flexible Scheduling

Paid Release Time

Employee Volunteer Awards

Dollars for Doers

Percentage of Companies Offering Each

Volunteer Program to Domestic Employees, 2013

Note: N=204.

86% of Companies Encourage Employee Contributions by

Offering At Least One of the Following Matching-Gift Policies

27

66%

56% 54%

42%

A Year-Round MatchingGift Policy

A Workplace GivingCampaign

A Dollars-for-DoersMatching Policy

A Disaster ReliefMatching Gift Policy

Percentage of Companies Offering…

Corporations Evaluate the Social

Value of Contributions

A Majority of Companies are Measuring the Societal

Value of their Contributions

29

18%

35%

47%

Very Experienced(5 Years or More)

ModeratelyExperienced(3-4 Years)

Slightly Experienced(2 Years or Less)

76% Measure

Outcomes

and/or

Impacts

24% Do Not

Measure

Outcomes

and/or

Impacts

Note: N=160. Note: N=119.

A Majority of Companies are Measuring the Societal

Value of their Contributions

30

24% Do Not

Measure

Outcomes

and/or

Impacts

Note: N=121.

Note: N=81. Only includes companies that

provided specific method.

77% Focus

Impact

Evaluation on

Specific Grants

24%

17%

47%

12%

Methods for Focusing Impact Evaluation

23% Evaluate

All Grants

Only grants to a specific

cause area

Only grants made for a

strategic philanthropic

program

Only grants larger than a

threshold AND to a

specific cause area

Only grants larger than a

specific threshold

Closing Thoughts – Q/A

• Read Giving in Numbers: 2014 Edition!

• Free for download at cecp.co/gin

• Check out CECP’s newest research publication, Giving Around

the Globe, released earlier this week!

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Giving in Numbers Participant List

Communications (n=11) Consumer Discretionary (n=34) Consumer Staples (n=25)

AOL (2) ADT Corporation (1) Altria Group, Inc. (12)

AT&T Inc. (3) Amway Global (2) Anheuser-Busch InBev (3)

DIRECTV, LLC (7) Apollo Education Group (3) BJ’s Wholesale Club, Inc. (1)

Discovery Communications, Inc. (2) Best Buy Co., Inc. (8) Brasil Foods (1)

Ogilvy & Mather (8) Carlson (12) Cargill (9)

Pearson plc (9) CarMax, Inc. (1) The Clorox Company (2)

Sprint Corporation (8) Darden Restaurants, Inc. (4) The Coca-Cola Company (12)

Time Warner Inc. (13) eBay Inc. (4) Colgate-Palmolive Company (7)

Verizon Communications Inc. (11) Ecolab Inc. (3) CVS Caremark Corporation (10)

Vodafone Group Plc (4) Gap Inc. (11) FEMSA (1)

The Walt Disney Company (9) General Motors Company (2) General Mills, Inc. (9)

Hasbro, Inc. (13) The Hershey Company (10)

The Home Depot, Inc. (12) The Hillshire Brands Company (2)

Honda North America (3) Kellogg Company (2)

J. C. Penney Company, Inc. (8) Kimberly-Clark Corporation (8)

JM Family Enterprises, Inc. (4) The Kroger Co. (2)

Johnson Controls, Inc. (5) Land O'Lakes, Inc. (1)

KPMG LLP (11) McCormick & Company, Incorporated (4)

Macy’s, Inc. (8) Newman’s Own (2)

Marriott International, Inc. (3) PepsiCo (9)

Masco Corporation (4) Philip Morris International (5)

Mattel, Inc. (10) Procter & Gamble Company (5)

MGM Resorts International (1) S.C. Johnson & Son, Inc. (2)

Mitsubishi Corporation (Americas) (9) Target (12)

Newell Rubbermaid Inc. (4) Wal-Mart Stores, Inc. (10)

PricewaterhouseCoopers LLP (4)

Sabre Holdings (5)

Southwest Airlines Co. (3)

Starbucks Coffee Company (4)

Starwood Hotels & Resorts Worldwide, Inc. (6)

Toyota Motor North America, Inc. (12)

Under Armour, Inc. (1)

United Stationers Inc. (1)

Yum! Brands, Inc. (3)

Note: Number in parenthesis is the number of years the company completed the Giving in Numbers Survey. Bolded

companies are part of the 4-year matched set.

33

Giving in Numbers Participant List

Energy (n=14) Financials (n=55) Financials (Continued)

Chesapeake Energy Corporation (4) Allstate Insurance Company (9) MetLife, Inc. (10)

Chevron Corporation (13) American Express (9) Morgan Stanley (12)

CITGO Petroleum Corporation (4) Ameriprise Financial, Inc. (3) Mutual of Omaha Insurance Company (1)

ConocoPhillips (8) AXA Equitable (6) Nationwide Insurance (3)

Devon Energy Corporation (1) Banco Bilbao Vizcaya Argentaria, S.A. (6) Neuberger Berman (3)

Exxon Mobil Corporation (8) Bank of America Corporation (13) New York Life Insurance Company (6)

Halliburton (8) Barclays (4) Northern Trust Corporation (2)

Hess Corporation (7) BNY Mellon (9) Northwestern Mutual (4)

Peabody Energy Corporation (5) Capital One Financial Corporation (6) NYSE (9)

Phillips 66 (1) The Charles Schwab Corporation (2) PIMCO (1)

Shell Oil Company (11) Citigroup Inc. (11) The PNC Financial Services Group, Inc. (9)

Spectra Energy (2) Citizens Bank (8) Popular, Inc. (5)

Total S.A. (2) Credit Suisse (3) Principal Financial Group (8)

TransCanada Corporation (2) CSAA Insurance Group (2) Prudential Financial, Inc. (10)

Deutsche Bank (9) Royal Bank of Canada (4)

First Niagara Financial Group, Inc. (2) State Farm Mutual Automobile Insurance Company (10)

Genworth Financial, Inc. (7) Thrivent Financial for Lutherans (1)

The Goldman Sachs Group, Inc. (11) The Travelers Companies, Inc. (8)

The Guardian Life Insurance Company of America (5) U.S. Bancorp (3)

The Hartford (7) UBS (7)

HSBC Bank USA, N.A. (10) Unum Group (1)

JPMorgan Chase & Co. (13) Vanguard (2)

KeyCorp (3) Visa Inc. (1)

Lincoln Financial Group (3) Voya Financial, Inc. (7)

Macquarie Group (3) Wells Fargo & Company (12)

Marsh & McLennan Companies, Inc. (4) The Western Union Company (8)

Massachusetts Mutual Life Insurance Company (6) Weyerhaeuser Company (3)

MasterCard Worldwide (9)

Note: Number in parenthesis is the number of years the company completed the Giving in Numbers Survey. Bolded

companies are part of the 4-year matched set.

34

Giving in Numbers Participant List

Health Care (n=26) Industrials (n=26) Materials (n=18)

Abbott (8) BAE Systems, Inc. (2) 3M (10)

Aetna Inc. (12) The Boeing Company (7) Alcoa Inc. (9)

Agilent Technologies, Inc. (10) Caterpillar Inc. (6) Ashland Inc. (4)

Amgen Inc. (4) CH2M Hill Companies, Ltd. (1) Bemis Company, Inc. (2)

BD (8) Crane Co. (10) The Dow Chemical Company (10)

Boston Scientific Corporation (3) CSX Corporation (5) DuPont (6)

Bristol-Myers Squibb Company (13) Cummins Inc. (3) FMC Corporation (5)

Cardinal Health, Inc. (7) Eaton Corporation (5) Gerdau (2)

CIGNA (5) Emerson Electric Co. (9) International Paper Company (2)

DaVita Inc. (5) FedEx Corporation (6) MeadWestvaco Corporation (3)

Eli Lilly and Company (13) Fluor Corporation (2) Monsanto Company (2)

Express Scripts, Inc. (5) General Electric Company (12) The Mosaic Company (5)

GSK (12) Itron (1) Novelis, Inc. (1)

HCA Inc. (9) John Deere (4) Owens Corning (3)

Humana Inc. (5) Lockheed Martin Corporation (7) Praxair, Inc. (5)

Johnson & Johnson (11) Meritor, Inc. (8) The Sherwin-Williams Company (2)

Kaiser Permanente (3) Northrop Grumman Corporation (7) Vale (3)

McKesson Corporation (10) PACCAR Inc (4) Vulcan Materials Company (4)

Medtronic, Inc. (5) Raytheon Company (4)

Merck (10) Rockwell Automation, Inc. (3)

Novo Nordisk A/S (2) Rockwell Collins, Inc. (4)

Pfizer Inc (11) Union Pacific Corporation (4)

Quest Diagnostics Incorporated (5) United Technologies Corporation (11)

Sabin (1) UPS (3)

UnitedHealth Group (8) Votorantim Group (2)

WellPoint, Inc. (8) Xylem (3)

Note: Number in parenthesis is the number of years the company completed the Giving in Numbers Survey. Bolded

companies are part of the 4-year matched set.

35

Giving in Numbers Participant List

Technology (n=31) Utilities (n=21)

Accenture (9) Ameren Corporation (1)

Adobe (7) American Electric Power Company, Inc. (4)

Alcatel-Lucent (1) Arizona Public Service Company (3)

Applied Materials, Inc. (5) CenterPoint Energy, Inc. (1)

Autodesk, Inc. (2) Consolidated Edison, Inc. (13)

BMC Software (10) Dominion Resources, Inc. (4)

Booz Allen Hamilton Inc. (1) DTE Energy Company (2)

CA Technologies (7) Duke Energy Corporation (9)

Cisco Systems (13) Entergy Corporation (9)

Corning Incorporated (3) Exelon Corporation (7)

Dell Inc. (8) FirstEnergy (5)

EMC Corporation (4) NRG Energy (1)

Google Inc. (4) Pepco Holdings, Inc. (2)

IBM Corporation (13) PG&E Corporation (9)

IHS Inc. (1) PNM Resources, Inc. (7)

Intel Corporation (7) PPL Corporation (2)

McGraw Hill Financial (12) Public Service Enterprise Group Incorporated (6)

Microsoft Corporation (7) Sempra Energy (8)

Moody’s Corporation (9) Southern California Edison (9)

Motorola Solutions, Inc. (2) Southern Company (3)

NVIDIA Corporation (2) TECO Energy, Inc. (5)

Pitney Bowes Inc. (7)

Qualcomm Incorporated (8)

salesforce.com (9)

Samsung Electronics America, Inc. (4)

SAP AG (2)

Symantec Corporation (5)

Synopsys, Inc. (2)

Texas Instruments Incorporated (6)

Toshiba America, Inc. (2)

Xerox Corporation (9)

Note: Number in parenthesis is the number of years the company completed the Giving in Numbers Survey. Bolded

companies are part of the 4-year matched set.

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