Corporations Creating Foundation
Know what geographic focus the corporation has and to what degree that has defined or restricted the corporate giving effort. Knowing any employees of a company will provide better access to the corporation or to the board foundation set up by a corporation for giving. Community giving to the geographic area in which the corporation has a presence is one means to provide maximum impact in the nonprofit community.
Statistically information from government and nonprofit sources provide a base of information to focus on giving in a philanthropic campaign. Two basic variables to use are zip codes and the US census data. The use of data on a city or town provides the geographic focus and can provide the extent of the impact the corporate philanthropic campaign can make. Measure what the money is spent on. Feel comfortable restricting the use of the funds for certain purposes. Administrative and fixed costs to support an organization should be no more than your corporation.
So what is the difference or advantage for corporations to set up foundations? It allows for the corporate giving program to be built and managed less contingent on the current standings of the company. In the times of positive corporate returns money can be donated above what will be disburse. In the times of negative corporate returns money donated can be less but still have the impact intended under the corporate philanthropy effort for giving. To the degree the corporation wants to run annual corporate giving campaigns is another deciding factor to whether establish a corporate foundation.
Corporate philanthropy is about making an impact. To turn over funds to a United Way or Donor Advisor fund entity to give, sets the stage for giving to be base on whom someone knows, meeting another entities agenda and most likely the same general group of nonprofits receiving the funds. It is wise to remember that possession of the money allows for 90% of the decision-making.
The nonprofits are responding to the entity that has the money. Therefore, if the corporate philanthropy initiative for giving is to be tied to the corporate mission, then it needs to be in the corporation’s control.
