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Amid Recession, U.S. Companies Boost Non-Cash Giving
Source: ABC News  ·  October 27, 2010  ·  Excerpt

Most U.S. companies gave less money to charity in 2009, but total corporate philanthropy rose seven percent to $9.9 billion, boosted by product, service, land and space donations, a study released on Wednesday found.

The Committee Encouraging Corporate Philanthropy's "Giving in Numbers" report said cash giving fell to $3.8 billion last year from $4 billion in 2008, while noncash philanthropy rose to $6.1 billion from $5.3 billion..

"In terms of the companies that decreased giving one of the most prominent reasons was that there were mandated spending decreases within the company, their budgets were reduced, and they were looking for other ways to continue to support their nonprofit partners," said the report's author Alison Rose.

About two-thirds of companies reduced their cash giving last year with many cutting contributions by more than 10 percent, the study found, amid the worst financial crisis in decades.

But the country's financial woes resulted in companies focusing their philanthropic efforts a little more on health and social services and community and economic development.

Our take
In times of financial crisis, the ripple effect of corporate budget cuts have the potential to wreak havoc on for-profit and nonprofit organizations alike. However, the above article illustrates that companies will nonetheless find ways to make noncash gifts to charities and other organizations.

Let us help you discover these alternative forms of corporate giving and determine how your organization might capitalize on them. Contact us now for help answering these questions and more:

  • What are the current trends in corporate giving for the industries or donor groups you focus on most?
  • Are there noncash donations that can be secured as part of long-term planning, with cash giving making a more gradual return to the mix after the economy has improved?

 

 
 
       
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