1. Emerging Trends in Corporate Philanthropy January 15, 2014 Michael Stroik Manager, Research and Analytics CECP mstroik@cecp.co

2. Today’s Agenda 2 About CECP CECP Organizational Beliefs Giving in Numbers Annual Trends Report Corporate Giving Trends Corporate Giving Before, During, and After the Global Recession New Jersey Benchmarking Statistics Employee Engagement Trends Recent Trends in Employee Engagement

3. About CECP 3

4. 4 Who We Are  Nonprofit organization founded by Paul Newman in 1999 as the Committee Encouraging Corporate Philanthropy  International forum of corporate CEOs and chairpersons What We Believe  Philanthropy is a long-term investment with the potential to drive significant societal and business returns  Executive leadership is essential for successful community engagement  Corporations have unique resources that can support communities Who is Engaged  149 CEOs and Chairpersons  Engaged companies from each industry Our Strategic Focus  Represent the CEO voice  Own the standard on philanthropy practice and measurement Introduction to CECP 4

5. 5 Corporate Giving Standard Survey and Trend Report Annual survey of Global 1000 companies on the scope and scale of their philanthropy and employee engagement programs. Survey conducted each spring in association with The Conference Board. 240 companies participated in the most recent survey on 2012 contributions. The survey on 2013 contributions launches in January. Includes corporate cash giving, corporate foundation giving, and non-cash contributions (including pro bono service). The survey, valuation guidance, and report are all available as free downloads at cecp.co/research. 5

6. Corporate Giving Trends 6

7. Business performance has slowly rebounded since the global recession began in 2008, but in 2012 companies did not earn as much as they did in 2007. 7 Business Has Been Slow To Recover As Profits Dropped in 2012 Median Revenues Note: Inflation-Adjusted, 6-Year Matched-Set Data, N=93 Median Pre-Tax Profits $ Billions Note: Inflation-Adjusted, 6-Year Matched-Set Data, N=96 $ Billions

8. Despite a slow economic recovery, the majority of companies increased giving from 2007 to 2012. 8 Companies Are Giving More Than Before The Global Recession Distribution of Companies by Changes in Total Giving Between 2007 and 2012 Note: Inflation-Adjusted, 6-Year Matched-Set Data, N=96 Percentage of Companies

9. 9 Non-Cash Giving Growth Drove Overall Giving Increase From 2007 to 2012 Note: All Figures in Billions, 6-Year Matched-Set Data, N=96 Non-cash giving as a percentage of total giving grew from 57% in 2007 to 69% in 2012. $10.58 $10.79 57% 69%

10. 10 Companies Aim To Support Communities With Unique Non-Cash Resources Aggregate Percentage of Non-Cash Giving to Total Giving Year All Companies (N=96) All Companies Excluding Pharmaceuticals (n=89) 2007 57%28% 2008 57%30% 2009 62%32% 2010 64%32% 201166%37% 2012 69%39% CECP member companies often support community partners with non-cash contributions, including product, pro bono service, and other in-kind contributions.

11. 11 Reasons for Giving Increases 1.Increased Non-Cash Contributions 2.Improved Business Performance 3.Increased Commitment to Education Initiatives Reasons for Giving Decreases 1.Company-Wide Cost Reductions 2.Reduced Disaster Spending 3.Refreshing Focus Areas Reasons For Giving Increases and Decreases in 2012

12. 12 Companies Support Education More Than Any Other Program Area For the first time since the introduction of Giving in Numbers, in 2006, Education (K-12 and Higher Education combined) became the most popular program area, inching ahead of Health and Social Services for the top spot on the list. Note: Average Percentages, N=172

13. Civic & Public Affairs Comm. & Eco. Dev. Culture & Arts Education: Higher Education: K-12 Enviro nment Health & Social Sciences Disaster Relief Other 20076.4%13.4%8.8%13.3%16.1%3.6%27.3%0.7%10.4% 20086.0%12.8%7.7%13.9%15.8%4.2%27.3%2.6%9.7% 20094.1%16.6%6.9%13.6%15.1%4.4%28.9%1.0%9.4% 20105.0%13.8%6.5%13.3%15.8%4.9%29.8%2.8%8.1% 20115.0%15.0%5.7%14.0%15.3%4.9%30.1%3.0%7.0% 20124.8%15.3%5.3%14.1%15.8%4.5%28.3%2.7%9.2% Overall Change Giving Allocations Shift Most Notably in Community & Economic Development and Culture & Arts Note: Average Percentages, 6-Year Matched-Set Data, N=51 <1% 13

14. Companies today are more likely to invest the majority of their philanthropy programs in individual program areas compared to before the global recession. 14 Companies Are Focusing Philanthropy Programs To Achieve Deep Societal Impact “I helped to start CECP with the belief that corporate America could be a force for good in society.” - Paul Newman Percentage of Companies Investing 50% or More to One Program Area (N=51) 2007 22% 2008 18% 2009 25% 2010 31% 2011 29% 2012 33%

15. New Jersey companies supported Health & Social Services considerably more than the average global company. 15 New Jersey Company Program Area Allocations Note: Average Percentages, N=9 Note: Average Percentages, N=172

16. Employee Engagement Trends 16

17. 17 Companies Match Gifts Primarily Through Workplace Giving Campaigns and Year-Round Policies 8% of employees participated in the typical Year-Round Policy while 44% of employees participated in the typical Workplace Giving Campaign (medians). Note: Average Percentages, N=181 2012 Matching-Gift Program Allocation

18. Studies show that employees with favorable impressions of a company’s philanthropy program are three times more likely to be truly loyal to the company. In addition, employees who volunteered through employee-volunteer programs strengthen relationships with co-workers and feel happier overall. 18 Research Indicates That Engaged Employees Are More Loyal To Their Employers 2012 CGS Volunteer Data All Companies (N=188) Northeast Companies (n= 61) New Jersey Companies (n=11) % of Companies Offering a Paid-Release-Time Program57%66%55% % of Companies Offering a Flexible Scheduling Volunteer Program 55%54%45% 2012 CGS Matching Gifts Data (Medians) All Companies (N=175) Northeast Companies (n=61) New Jersey Companies (n=11) Total Matching Gifts$1,700,000$1,670,000$981,075 Matching Gifts as a % of Total Cash Giving 11.99%13.03%

19. 19 Companies Strive To Engage Employees In Community Investment Programs More companies offered on-company-time and outside-company- time employee volunteer programs in 2012 than in 2007. Note: Matched-Set Data, N=53 Percentage of Companies with Paid-Release-Time and Outside-Company-Time Volunteer Programs

20. Paying Employees While Volunteering Is More Popular In The Northeast And Midwest 20 66% of companies based in the NE offer a Paid- Release-Time Volunteer policy 51% of companies based in the South offer a Paid-Release- Time Volunteer policy 45% of companies based in the West offer a Paid- Release-Time Volunteer policy 64% of companies based in the Midwest offer a Paid-Release- Time Volunteer policy Note: Among companies based outside of the U.S., 47% of companies offer a Paid-Release Time policy

21. A Growing Percentage Of Companies Offer Domestic and/or International Pro Bono Programs Since CECP began tracking pro bono programs in 2008, companies have increased offerings. Note: 6-Year Matched-Set Data, N=68 Percentage of Companies with Pro Bono Service Engagement Programs 21

22. Financials and Information Technology companies provided the highest average levels of total pro bono support as a percentage of total non-cash gifts. 22 Service Companies Have Traditionally Been More Engaged With Pro Bono Work Note: Telecommunications Services companies are excluded due to a small sample size, Average Percentages.

23. 23 Paid Release Time Programs Stand Out As The Most Successful Employee Volunteer Program Most Successful Volunteer Engagement Programs in 2012 DomesticInternational 1. Paid Release Time 2. Dollars for Doers 2. Company-Wide Day of Service 3. Company-Wide Day of Service 3. Employee-Volunteer Awards 4. Employee-Volunteer Awards 4. Flexible Scheduling 5. Flexible Scheduling 5. Team Grants

24. Regions Differ In Approach To Employee Engagement Programming 24 Paid-Release- Time programs were most popular in the Northeast and Midwest Family Volunteering programs were most popular in the South. Dollars for Doers programs were most popular in the West. Paid-Release- Time programs were most popular in the Northeast and Midwest

25. 25 Industries Differ In Approach To Employee Volunteer Engagement Volunteer Engagement Offerings by Industry IndustryMost Prevalent Program % of Companies Offering Program Consumer DiscretionaryEmployee Volunteer Awards66% Consumer StaplesFamily Volunteering64% EnergyDollars for Doers86% FinancialsPaid-Release-Time73% Health CareEmployee Volunteer Awards75% IndustrialsEmployee Volunteer Awards67% Information TechnologyFlexible Scheduling65% MaterialsBoard Leadership50% Utilities Retiree Volunteering and Family Volunteering 77%

26. Why Are Companies Offering More Employee Engagement Programs? 26 Millennials (individuals born between the early ‘80s and the early 2000s) are holding companies accountable for engaging them in community programs.

27. Open Discussion 27