Global Corporate Philanthropy Global Corporate Philanthropy Anne C Petersen, PhD Global Philanthropy Alliance CASBS, Stanford University Invited Presentation Strategic Global Philanthropy: Challenges and Opportunities United Way of America Conference, Agilent Technologies San Jose, CA February 24, 2009

Outline Why give outside the US? Why give outside the US? Trends in international giving Trends in international giving Who gives internationally? Who gives internationally? Where does the money go? Where does the money go? Challenges and opportunities Challenges and opportunities

Why Give Outside the US? CSR: develop and maintain good relationships locally CSR: develop and maintain good relationships locally Globalization: “foreign” passe Globalization: “foreign” passe Global communicationGlobal communication Tremendous need globally Tremendous need globally Huge benefit to cost ratio (when done well) Huge benefit to cost ratio (when done well) Inspiring colleagues and projects Inspiring colleagues and projects Learning from global projects Learning from global projects

Trends in International Giving International increased more from 2002 – 2006 compared with all giving, even excluding Gates International increased more from 2002 – 2006 compared with all giving, even excluding Gates Community foundations increased international giving most, with corporate foundations close behind Community foundations increased international giving most, with corporate foundations close behind Growth over past 24 years even more dramatic Growth over past 24 years even more dramatic

Growth of International vs. Overall Giving by U.S. Foundations, 2002 to 2006 Source: The Foundation Center, International Grantmaking IV, Based on a sample of more than 1,000 larger foundations.

Growth of International vs. Overall Giving by U.S. Foundations, 2002 to 2006* Source: The Foundation Center, International Grantmaking IV, Based on a sample of more than 1,000 larger foundations. * Excluding Gates Foundation

Growth of International vs. Overall Giving by Foundation Type, 2002 to 2006 Source: The Foundation Center, International Grantmaking IV, Based on a sample of more than 1,000 larger foundations.

International Giving as a Share of Overall Foundation Giving, 1982 to 2006 Source: The Foundation Center, International Grantmaking IV, Based on a sample of more than 1,000 larger foundations.

Who Gives Internationally? All foundations All foundations Corporate foundations Corporate foundations

Top Ten Foundations in International Giving 1. Gates ($1974m, 79%) 2. Ford ($287m, 54%) 3. Hewlett ($116m, 42%) 4. Moore ($105m, 46%) 5. Rockefeller ($104m, 75%) 6. MacArthur ($100m, 54% 7. Starr ($88m, 22%) 8. Kellogg ($74m, 26%) 9. Buffett ($61m. 61%) 10. Packard ($57m, 31%)

Corporate Foundations 1. Citi ($38m, 44%) 2. GE ($16m, 36%) 3. Alcoa ($16m, 60%) 4. J&J ($15m, 30%) 5. ExxonMobil ($14m, 50%) 6. Abbott ($14m, 64%) 7. Bristol-Myers Squibb ($11m, 59%) 8. Merck ($9m, 26%) 9. Intel ($9m, 23%) 10. Nike ($9m, 94%)

Where does the money go? US international vs international US international vs international Regions of world Regions of world Program areas Program areas

Domestic and International Grant Dollars, 2006 Domestic $14.9 billion 78% Source: The Foundation Center, International Grantmaking IV, Based on a sample of more than 1,000 larger foundations. Intl-U.S.-Based Recipients $2.3 billion 12.1% Intl-Overseas Recipients $1.9 billion 9.9%

Growth of Overseas vs. U.S.-based International Giving, 2002 to 2006 Source: The Foundation Center, International Grantmaking IV, Based on a sample of more than 1,000 larger foundations.

Overseas Giving by Major Region, 2002 and 2006 Source: The Foundation Center, International Grantmaking IV, Based on a sample of more than 1,000 larger foundations. Asia & the Pacific Western Europe Latin America Sub-Saharan Africa E. Europe, Russia, and Independent States N. Africa & Middle East CanadaCaribbean

Total Overseas Giving = $1.9 billion Source: The Foundation Center, International Grantmaking IV, Based on a sample of more than 1,000 larger foundations. Asia & the Pacific 11.5% Sub-Saharan Africa 18.1% Latin America 6.6% E. Europe, Russia, & Independent States 3.3% N. Africa & the Middle East 6.1% Canada 3.5% For Other Regions 12% Global Programs 37.1% Western Europe 55.2% W. Europe 6.1% Overseas Giving by Major Region, 2006

International Giving by Major Program Area, 2002 and 2006 Source: International Grantmaking IV, Based on a sample of more than 1,000 larger foundations Total = $4.2 billion Intl. Develop. 21% Health 43% Environment 8% Intl. Affairs 6% Social Sciences 4% Human Rights 3% Public Affairs/ Society Benefit 4% Arts 4% Religion 1% Science 1% Education 6% 2002 Total = $2.2 billion Intl. Develop. 13% Health 32% Environment 8% Intl. Affairs 9% Social Sciences 8% Human Rights 6% Public Affairs/ Society Benefit 7% Arts 7% Religion 3% Science 2% Education 8%

Corporate Giving by Major Program Area 2006

Challenges and Opportunities Factors influencing international grantmaking Factors influencing international grantmaking Expectations for future international giving Expectations for future international giving

Principal Internal Factors Affecting International Grantmaking Since 2004 New Initiatives by Existing Leadership Increase in Assets Due to New Gifts Change in Leadership Change in Program Staff Restructuring of Intl. Grantmaking Programs Source: The Foundation Center, International Grantmaking IV, Percentages based on responses of 62 funders.

Principal External Factors Affecting International Grantmaking Since 2004 Major Natural Disasters Abroad Stricter Post-9/11 Regulatory Environment Significant World Events/Developments Source: The Foundation Center, International Grantmaking IV, Percentages based on responses of 58 funders. New Funding Partnerships Greater Urgency to Address Non- environmental Global Concerns

“The more demanding post 9-11 regulatory environment discourages giving to non-U.S.- based organizations.” Source: The Foundation Center, International Grantmaking IV, Percentages based on responses of 74 funders. Disagree 30% Don’t Know 12% Agree 58%

Estimated International Giving through 2007 for All U.S. Foundations Source: The Foundation Center, International Grantmaking IV, Dollars in Billions

“Over the next two or three years, how do you expect the total amount of giving by U.S. foundations to change?” Increase 52% Source: The Foundation Center, International Grantmaking IV, Percentages based on responses of 77 funders. Decrease 5.2% No Opinion 17% Remain About the Same 26%

“Because of the recent downturn in the U.S. economy, U.S. foundations are likely to turn their focus more to domestic rather than international issues.” Source: The Foundation Center, International Grantmaking IV, Percentages based on responses of 75 funders. Disagree 33% Don’t Know 24% Agree 43%

Other Challenges Effective grantmaking requires relationships Effective grantmaking requires relationships Partnership PrinciplesPartnership Principles Mutual interest Mutual interest Mutual benefit Mutual benefit Mutual responsibility Mutual responsibility Mutual respect Mutual respect Scale up Scale up Infrastructure, including technical expertise Infrastructure, including technical expertise Do no harm! Do no harm!

Why Give Outside the US?

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