Generating Social Capital Revenue Streams for Non-Profit and Charitable Organizations

Definitions What is philanthropy? –A moral response to a social dilemma –As a phenomenon, philanthropy is actively practiced throughout the world through voluntarily giving of time, talent and resources in support of the common good (Wagner et al, 2003, p 442)

Definitions What is a community investment? –The act of investing resources (human and financial) into community projects and non- profit or charitable organizations What is corporate social responsibility? –A business strategy incorporating community, environment and financial values

Definitions What is social enterprise? –Social enterprises are social mission driven organizations which trade in goods or services for a social purpose. The profit from the business is used to support related social aims, or that the business itself accomplishes the social aim through its operation (Wikipedia)

Definitions What is Venture Philanthropy? –Venture Philanthropy is a model of building long-term relationships between an investor and its beneficiary, providing capacity building expertise, and implementing Return on Investment (ROI) and Social Return On Investment (SROI) models strategies to create social change.

Who are the players in philanthropy? Individuals –Families –Giving Circles Corporations Foundations –Public –Private Government

Stages of Corporate Philanthropy Cheque Book Philanthropy Strategic Philanthropy Community Investment Corporate Social Responsibility Corporate Citizenship

Corporate Philanthropy in Canada Imagine Canada Research –3% of businesses claimed just over $1 billion in charitable donations on their 2003 tax returns. –Represents less than 1% of the pre-tax profits of these companies, –15% of the $6.5 billion in donations came from corporations

Corporate Philanthropy in Canada Imagine Canada Research –More than half of all donations claimed by businesses came from two industries: Finance and Insurance (32.1%) and Manufacturing (19.4%) –Accommodation and Food Services companies gave the largest percentage of their pre-tax profits

Corporate Philanthropy in Canada Imagine Canada Research –Businesses with annual revenues between $5 and $25 million contributed 1.9% of their pre- tax profits to charity. –In comparison, companies with annual revenues over $25 million donated only 0.6% of their pre-tax profits.

Where are companies investing their charitable dollars? only 20% of charitable and non-profit organizations received corporate donations, grants, or sponsorships in Sports and Recreation (33%); Grantmaking, Fundraising and Voluntarism Promotion (15%); and Arts and Culture (10%)

Why do companies invest in community? 1)market the company’s brand; 2)success of the company depends upon having strong communities; 3)because of the need for a social license to operate; 4)improves the ability to recruit and retain employees. Companies contribute to charities and non- profit organizations primarily because of their philanthropic commitment to communities

How is your company investing in community? Discussion

For Further Information Imagine Canada – Rosso, Hank; Achieving Fundraising Excellence Pelosi, Peggie; Corporate Karma

Contact Information Gena Rotstein Community Investment Strategist Dexterity Consulting