Giving by Corporate Foundations Rises to a Record $4.2 Billion,
Foundation Center Report Shows
New York, NY — May 15, 2007. Giving by corporate foundations rose an estimated 6 percent in 2006 to a record $4.2 billion, according to Key Facts on Corporate Foundations, a summary report released by the Foundation Center. Increased giving is expected in 2007 as well: 57 percent of those surveyed said they expect to give more again this year.
The year 2005 had seen an exceptionally high 16.5 percent increase in giving — reflecting strong corporate profits and giving in response to the Gulf Coast hurricanes and South Asian tsunami.
"Corporate foundation giving exceeded $4 billion for the first time in 2006," said Steven Lawrence, senior director of research at the Foundation Center. "More importantly, funding continued to grow despite the completion of most giving related to the tsunami and Gulf Coast hurricanes."
In a separate development, a handful of pharmaceutical manufacturers continued to ramp up their giving through operating foundations, which are counted separately from corporate foundations. Support from these and other corporate-sponsored operating foundations totaled nearly $3.2 billion in 2005, with most of that giving coming from in-kind donation of medications to patients in need. In fact, four of these pharmaceutical foundations ranked among the top 10 U.S. foundations by giving.
"Beginning in the late 1990s, a number of pharmaceutical companies set up operating foundations to distribute medications," said Lawrence. "At the current rate, in-kind giving through corporate operating foundations may soon match standard corporate foundation giving."
Key Facts on Corporate Foundations highlights the Foundation Center's latest research on the size, scope, and giving interests of the nation's corporate foundation community.
Among the key findings:
- Nearly 2,600 corporate foundations gave an estimated $4.2 billion in 2006.
- 113 corporate-sponsored operating foundations — including roughly one dozen "pharmaceutical foundations" — provided an additional $3.2 billion in mostly in-kind corporate support in 2005.
- Corporate foundations accounted for 11% of all foundation giving, but that figure nearly doubles to more than 20% when combined with giving by corporate operating foundations.
- Close to three-fifths of corporate foundations surveyed expect to increase giving in 2007, surpassing the share that anticipated higher levels of giving last year.
- Among funding priorities, corporate foundations targeted a total of nearly half of their giving to education (25%) and public affairs/social benefit (22%), including support for community development, federated funds and other philanthropy, public affairs, and civil rights.
Findings from Key Facts on Corporate Foundations come from the Foundation Center's tracking of fiscal and programmatic information on more than 80,000 foundations, corporations, and public charities; annual surveys of leading grantmakers; and analyses of the giving patterns of the nation's nearly 1,200 largest foundations. The report can be downloaded at no charge from the Gain Knowledge area of the Foundation Center's web site.
About the Foundation Center
Established in 1956, and today supported by more than 600 foundations, the Foundation Center is the nation's leading authority on philanthropy, connecting nonprofits and the grantmakers supporting them to tools they can use and information they can trust. The Center maintains the most comprehensive database on U.S. grantmakers and their grants — a robust, accessible knowledge bank for the sector. It also operates research, education, and training programs designed to advance philanthropy at every level. The Center's web site receives more than 47,000 visits each day, and thousands of people gain access to free resources in its five regional library/learning centers and its national network of more than 325 Cooperating Collections. For more information, please visit foundationcenter.org or call (212) 620-4230.
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