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Charitable Giving Takes Priority

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The Tampa Tribune

Published: October 8, 2007

Charitable giving in recent years has become more than just a fleeting trend or a practice of the wealthy - it has become an enduring habit that is not only engrained in our society, but in our household budgeting and decision-making processes as well.

As the annual giving season approaches, a few things are clear: Most Americans donate money and time to charitable organizations, and they expect large corporations to do the same. And when companies give, they get. They get customers who like to do business with them because they're philanthropic.

Nine in 10 Americans have donated money to charitable causes in the past five years, according to a recent survey by SunTrust Banks, and research shows that those who earn less actually give more. Those who can't give money often choose to donate their time and energy to help those in need, as evidenced by the millions of Americans who have trekked to New Orleans, Florida and other areas in the Gulf region to volunteer in post-hurricane rebuilding efforts.

As Americans, we give to charitable causes that range from homelessness and hunger to hurricane relief and animal protection, and seven in 10 of us prefer to do business with companies that do the same.
Corporate America is listening: Charitable donations by corporations rose in 2006, topping a year marked by increased giving in response to a string of natural disasters around the world, according to research by the Committee Encouraging Corporate Philanthropy, whose mission is to lead the business community in improving corporate philanthropy.

Among the 89 companies reporting two consecutive years of data, corporate giving grew an average of 4.7 percent last year, and philanthropic giving for the full study group of 113 companies reached a combined $10.6 billion.

So it goes: no matter which industry or company - Americans want to know that when they do business with corporations, they are part of something bigger, and that they are contributing to solutions.

A national grocery store chain regularly donates a percentage of its profits to a charitable cause one day per month, for instance, and a clothing retailer supports breast cancer research. A well-known coffee chain recently began supporting an international clean water campaign and the maker of a line of salad dressings donates all profits to charity.

Does this corporate philanthropy pay off? General consensus among analysts and recent surveys says yes: Corporate giving can increase revenue by attracting and retaining customers or by allowing a company to charge more for its goods and services. It can increase efficiency through such channels as improved recruiting, productivity or retention.

Above all, charitable giving and investing in welfare of the communities in which we live simply benefits all of us.

Daniel W. Mahurin is president and CEO of SunTrust Bank, Tampa Bay.

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