While charitable giving has been relatively low in the years following the recession, the last two years have seen an upturn in contributions made by corporations and large businesses. Most financial analysts expect full recover to take at least another four years for charities and foundations to regain the stability and productivity they experienced before the market crash. Cumulative contributions from foundations, businesses and individuals in 2012 yielded an impressive $316 billion for philanthropic efforts. However with donation rates rising only 1.5% from 2011 there recovery process seems gradual. This trend is expected to be reflected in The Chronicle of Philanthropy’s upcoming report examining the 2013 charitable contribution figures, which is expected to be released later this year. While less than the pre-recession zenith, $316 billion remains an impressive figure especially in a recovering economy. These figures coincide with the increasing demand for more corporate responsibility to the communities they serve.
Leading the way are big names in the corporate world including financial institutions, energy companies and major retail chains. Walmart continually ranks highly among charitable contributors despite reducing their cash offerings from 4.1% to 1.3% of their pretax profits between 2011 and 2012. With a cash contribution of $311.6 million and an additional $755,868,381 in product donations, the total value of their aid is worth well over a billion dollars. Walmart budgets show plans to increase their philanthropic efforts over the next few years.
Google donated 9.3% of their overall profits culminating in $144,606,000 in cash contributions in 2012 and their financial plans indicate plans to continue large contributions. Their philanthropic efforts include a reported $100,000,000 in grants and $1 billion in products annually. Target offered 5% of their profits to humanitarian efforts, with an average of over $3 million a week. Target has been a longtime supporter of education and child development, as such they focus a great deal of their efforts giving back to their local communities as well as developing countries.
Corporate giving has helped many companies generate positive public opinions and rapport with their customers and public. Incorporating charitable giving into your Hartford business financial planning strategy can help improve your community while benefiting your business as well.
At Sinclair Risk & Financial Management we offer top notch financial planning services. The right Charitable Giving Strategy can maximize the mutually beneficial advantages of your organization’s humanitarian efforts. We work with businesses to help create effective Corporate Financial Management tactics and help set up charitable trusts, donor-advisor funds, private foundations and other tax-smart accounts. To find out more about our services give us a call at (877) 602-2305.