Global Corporate Global Corporate

PhilanthropyPhilanthropyAnne C Petersen, PhDAnne C Petersen, PhD

Global Philanthropy AllianceGlobal Philanthropy AllianceCASBS, Stanford UniversityCASBS, Stanford University

Invited PresentationInvited Presentation

Strategic Global Philanthropy: Challenges and Opportunities Strategic Global Philanthropy: Challenges and Opportunities United Way of America Conference, Agilent Technologies United Way of America Conference, Agilent Technologies

San Jose, CASan Jose, CA

February 24, 2009February 24, 2009

OutlineOutline

Why give outside the US?Why give outside the US? Trends in international giving Trends in international giving Who gives internationally?Who gives internationally? Where does the money go?Where does the money go? Challenges and opportunitiesChallenges and opportunities

Why Give Outside the US?Why Give Outside the US?

CSR: develop and maintain good CSR: develop and maintain good relationships locally relationships locally

Globalization: “foreign” passeGlobalization: “foreign” passe• Global communicationGlobal communication

Tremendous need globallyTremendous need globally Huge benefit to cost ratio (when done Huge benefit to cost ratio (when done

well)well) Inspiring colleagues and projectsInspiring colleagues and projects Learning from global projectsLearning from global projects

Trends in International GivingTrends in International Giving

International increased more from International increased more from 2002 – 2006 compared with all giving, 2002 – 2006 compared with all giving, even excluding Gateseven excluding Gates

Community foundations increased Community foundations increased international giving most, with international giving most, with corporate foundations close behindcorporate foundations close behind

Growth over past 24 years even more Growth over past 24 years even more dramaticdramatic

Growth of International vs. Overall Giving by Growth of International vs. Overall Giving by U.S. Foundations, 2002 to U.S. Foundations, 2002 to

20062006

16%21%

92%

10%

0%

20%

40%

60%

80%

100%

Grant Dollars Number of Grants

Change in Intl. Giving

Change in All Giving

Source: The Foundation Center, International Grantmaking IV, 2008. Based on a sample of more than 1,000 larger foundations.

Growth of International vs. Overall Giving by Growth of International vs. Overall Giving by

U.S. Foundations, 2002 to 2006*U.S. Foundations, 2002 to 2006*

15%12%

34%11%

0%

20%

40%

60%

80%

100%

Grant Dollars Number of Grants

Change in Intl. Giving

Change in All Giving

Source: The Foundation Center, International Grantmaking IV, 2008. Based on a sample of more than 1,000 larger foundations.

* Excluding Gates Foundation

Growth of International vs. Overall Growth of International vs. Overall Giving by Foundation Type, 2002 to Giving by Foundation Type, 2002 to

20062006

92%

21%

90%

19%

127%

12%

179%

39%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

All Foundations Independent Corporate Community

Change in Intl. Giving

Change in All Giving

Source: The Foundation Center, International Grantmaking IV, 2008. Based on a sample of more than 1,000 larger foundations.

International Giving as a Share of International Giving as a Share of Overall Foundation Giving, 1982 to 2006Overall Foundation Giving, 1982 to 2006

5%

8%

12% 12% 11%

14%

14%

0%

5%

10%

15%

20%

25%

1982 1984 1990 1994 1998 2002 2006

22%

Source: The Foundation Center, International Grantmaking IV, 2008. Based on a sample of more than 1,000 larger foundations.

Who Gives Internationally?Who Gives Internationally?

All foundationsAll foundations Corporate foundationsCorporate foundations

Top Ten Foundations in Top Ten Foundations in International GivingInternational Giving

1. Gates ($1974m, 1. Gates ($1974m, 79%)79%)

2. Ford ($287m, 2. Ford ($287m, 54%)54%)

3. Hewlett ($116m, 3. Hewlett ($116m, 42%)42%)

4. Moore ($105m, 4. Moore ($105m, 46%)46%)

5. Rockefeller 5. Rockefeller ($104m, 75%)($104m, 75%)

6. MacArthur 6. MacArthur ($100m, 54%($100m, 54%

7. Starr ($88m, 22%)7. Starr ($88m, 22%)8. Kellogg ($74m, 8. Kellogg ($74m,

26%)26%)9. Buffett ($61m. 9. Buffett ($61m.

61%)61%)10. Packard ($57m, 10. Packard ($57m,

31%)31%)

Corporate FoundationsCorporate Foundations

1. Citi ($38m, 44%)1. Citi ($38m, 44%)

2. GE ($16m, 36%)2. GE ($16m, 36%)

3. Alcoa ($16m, 60%)3. Alcoa ($16m, 60%)

4. J&J ($15m, 30%)4. J&J ($15m, 30%)

5. ExxonMobil 5. ExxonMobil ($14m, 50%) ($14m, 50%)

6. Abbott ($14m, 6. Abbott ($14m, 64%)64%)

7. Bristol-Myers 7. Bristol-Myers Squibb ($11m, Squibb ($11m, 59%)59%)

8. Merck ($9m, 26%)8. Merck ($9m, 26%)

9. Intel ($9m, 23%)9. Intel ($9m, 23%)

10. Nike ($9m, 94%)10. Nike ($9m, 94%)

Where does the money go?Where does the money go?

US international vs US international vs internationalinternational

Regions of worldRegions of world Program areasProgram areas

Domestic and International Domestic and International Grant Dollars, 2006 Grant Dollars, 2006

Domestic$14.9 billion78%

Source: The Foundation Center, International Grantmaking IV, 2008. Based on a sample of more than 1,000 larger foundations.

Intl-U.S.-Based Recipients$2.3 billion

12.1%

Intl-Overseas Recipients$1.9 billion

9.9%

Growth of Overseas vs. U.S.-based Growth of Overseas vs. U.S.-based International Giving, 2002 to 2006International Giving, 2002 to 2006

92%

16%

124%

6%

72%

23%

0%

40%

80%

120%

Intl-All Grants Intl-Overseas Intl-U.S.-based

Change in Dollar Amount

Change in No. of Grants

Source: The Foundation Center, International Grantmaking IV, 2008. Based on a sample of more than 1,000 larger foundations.

$0

$250

$500

$750

$1,000

Mil

lio

ns

of

Do

lla

rs 2002

2006

Overseas Giving by Major Region, Overseas Giving by Major Region, 2002 and 2006 2002 and 2006

Overseas Giving by Major Region, Overseas Giving by Major Region, 2002 and 2006 2002 and 2006

Source: The Foundation Center, International Grantmaking IV, 2008. Based on a sample of more than 1,000 larger foundations.

Asia & the Pacific

Western Europe

Latin America

Sub-Saharan Africa

E. Europe, Russia, and Independent

States

N. Africa & Middle East

Canada Caribbean

Total Overseas Giving = $1.9 billion

Source: The Foundation Center, International Grantmaking IV, 2008. Based on a sample of more than 1,000 larger foundations.

Asia & the Pacific

11.5%

Sub-SaharanAfrica18.1%

Latin America6.6%

E. Europe, Russia, &

Independent States3.3%

N. Africa &the Middle East

6.1%Canada 3.5%

For Other Regions12%

Global Programs 37.1%

WesternEurope55.2% W. Europe

6.1%

Overseas Giving by Major Region, Overseas Giving by Major Region, 20062006

International Giving by Major Program Area, International Giving by Major Program Area, 2002 and 20062002 and 2006

Source: International Grantmaking IV, 2008. Based on a sample of more than 1,000 larger foundations.

2006Total = $4.2 billion

Intl. Develop.

21%

Health43%

Environment8%

Intl. Affairs6%

Social Sciences4%

Human Rights

3%

Public Affairs/Society Benefit

4%

Arts4%

Religion 1%

Science 1%

Education6%

2002Total = $2.2 billion

Intl. Develop.

13%

Health32%

Environment8%

Intl. Affairs9%

Social Sciences8%

Human Rights

6%

Public Affairs/Society Benefit

7%

Arts7%

Religion 3%Science 2%

Education8%

Pub Affairs/Soc Bene

8%

Arts and Culture

3%

Education8%

Intl. Affairs8%

Environ.6%

Health17%

Intl. Develop.45%

Corporate Giving by Major Corporate Giving by Major Program Area 2006Program Area 2006

Challenges and OpportunitiesChallenges and Opportunities

Factors influencing international Factors influencing international grantmakinggrantmaking

Expectations for future international Expectations for future international givinggiving

Principal Principal InternalInternal Factors Affecting Factors Affecting International Grantmaking Since 2004International Grantmaking Since 2004

0% 10% 20% 30% 40% 50% 60% 70%

New Initiatives by Existing Leadership

Increase in Assets Due to New Gifts

Change in Leadership

Change in Program Staff

Restructuring of Intl. Grantmaking Programs

Source: The Foundation Center, International Grantmaking IV, 2008. Percentages based on responses of 62 funders.

Principal Principal ExternalExternal Factors Affecting Factors Affecting International Grantmaking Since 2004International Grantmaking Since 2004

0% 10% 20% 30% 40% 50%

Major Natural Disasters Abroad

Stricter Post-9/11 Regulatory Environment

Significant World Events/Developments

Source: The Foundation Center, International Grantmaking IV, 2008. Percentages based on responses of 58 funders.

New Funding Partnerships

Greater Urgency to Address Non-environmental Global Concerns

““The more demanding post 9-11 regulatory The more demanding post 9-11 regulatory environment discourages giving to non-U.S.-environment discourages giving to non-U.S.-

based organizations.”based organizations.”

Source: The Foundation Center, International Grantmaking IV, 2008. Percentages based on responses of 74 funders.

Disagree30%

Don’t Know12%

Agree58%

Estimated International Giving through Estimated International Giving through 2007 for All U.S. Foundations2007 for All U.S. Foundations

$1.6$2.0

$3.2 $3.3 $3.2 $3.2$3.5

$4.2

$5.0$5.4

$0

$1

$2

$3

$4

$5

$6

'98 '99 '00 '01 '02 '03 '04 '05 '06 '07

Source: The Foundation Center, International Grantmaking IV, 2008.

Dollars in Billions

““Over the next two or three years, how do you Over the next two or three years, how do you expect the total amount of giving by U.S. expect the total amount of giving by U.S.

foundations to change?”foundations to change?”

Increase52%

Source: The Foundation Center, International Grantmaking IV, 2008. Percentages based on responses of 77 funders.

Decrease5.2%

No Opinion17%

Remain About the Same

26%

““Because of the recent downturn in the U.S. Because of the recent downturn in the U.S. economy, U.S. foundations are likely to turn their economy, U.S. foundations are likely to turn their focus more to domestic rather than international focus more to domestic rather than international

issues.”issues.”

Source: The Foundation Center, International Grantmaking IV, 2008. Percentages based on responses of 75 funders.

Disagree33%

Don’t Know24%

Agree43%

Other ChallengesOther Challenges

Effective grantmaking requires Effective grantmaking requires relationshipsrelationships• Partnership PrinciplesPartnership Principles

Mutual interestMutual interest Mutual benefitMutual benefit Mutual responsibilityMutual responsibility Mutual respectMutual respect

Scale upScale up Infrastructure, including technical Infrastructure, including technical

expertiseexpertise Do no harm!Do no harm!

Why Give Outside the US?Why Give Outside the US?

Thank

s!