As seen in Bloomberg.com on May 15, 2007:
Corporate Foundations Gave $4.2 Billion in 2006, Report Says
by Laurence Arnold
U.S. companies donated $4.2 billion through corporate foundations in 2006, an increase of about 6 percent for the second consecutive year, according to a new report by the Foundation Center.
Colleges, universities and other education-related organizations received 25 percent of the giving in 2006, followed by community development or public affairs (22 percent), human services (19 percent), health (12 percent) and arts and culture (11 percent).
Last year's increase assuaged concerns that the 5.8 percent rise in 2005 was an anomaly because of the increased support of relief efforts after the Dec. 26, 2004, tsunami along the Indian Ocean rim, said Steven Lawrence, senior director of research at the Foundation Center, a philanthropic research group.
"There was an expectation that corporate foundation giving would not grow in 2006," Lawrence said in an interview. He said the growth was a reflection of strong corporate earnings and corporate foundations' commitment to philanthropy.
The outlook for 2007 giving is upbeat. In a survey of about 100 of the largest corporate foundations, 57 percent said they expect to increase giving this year, the New York City-based center reported. Last year, 34 percent of survey respondents said they planned to boost giving in 2006.
Corporations, through foundations or direct giving programs, accounted for about 5 percent of overall philanthropic giving in the U.S., which totaled $260 billion in 2005, according to research group Giving USA. Figures for 2006 will be released later this year.
Corporate giving through foundations is generally done in cash, while direct corporate giving is often in-kind donations of products.
The statistics in today's report do not account for 11 "operating" foundations created by pharmaceutical companies between 1996 and 2003 to handle philanthropic distribution of drugs to those who can't afford them. Those foundations donated drugs worth $3.2 billion at retail in 2005, a 90 percent increase from 2004, according to the Foundation Center.
The center said preliminary information shows the pharmaceutical operating foundations "continued to ramp up their giving" in 2006. Specific dollar figures are not yet available because nonprofits are still filing their reports with the Internal Revenue Service.
Four of the pharmaceutical operating foundations were ranked among the top 10 U.S. foundations by total giving in 2005: the Bristol-Myers Squibb Patient Assistance Foundation (No. 2), the Merck Patient Assistance Program (No. 3), the GlaxoSmithKline Patient Access Programs Foundation (No. 5) and Janssen Ortho Patient Assistance Foundation (No. 7). The Bill and Melinda Gates Foundation was ranked No. 1.
© 2007 Bloomberg L.P. All rights reserved. Reprinted with permission.
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