Corporate Giving Increases, but Some Cut Back  

(Nov. 19, 2007) A new report shows that while overall corporate philanthropic giving rose in 2006, a significant number of businesses reported decreasing their contributions levels from 2005.

Giving in Numbers 2007, produced by the New York-based Committee Encouraging Corporate Philanthropy (CECP), examined the giving activity of 136 corporations, including 55 in The Fortune 100 and 97 companies that were included in both the 2005 and 2006 surveys.

According to the report, the median dollar value of contributions rose from $29.50 million in 2005 to $32.60 million in 2006, an increase of 4.8 percent (median meaning that an equal number of corporations in the survey gave both more and less than that figure). The corporations involved in the survey accounted for $11.2 billion in corporate contributions.

However, while median total giving as a percentage of revenue was unchanged at 0.14 percent, the median total giving as a percentage of pre-tax profit fell from 0.98 percent in 2005 to 0.93 percent in 2006.

Increased and Decreased Giving

In addition, of the 97 companies that participated in the both the 2005 and 2006 survey, just 57 percent reported increasing their giving compared to 2005, and 43 percent reported decreasing their contributions.

Significant changes were seen at both ends of the spectrum. Of the companies that increased their giving, 35 percent increased their giving budgets by more than 10 percent. Concurrently, 21 percent of the companies reporting decreased giving cut their philanthropic budgets by  more than 10 percent.

Some of the most common reasons for increased philanthropic support included:

·        Strong profits, with the median increase in profits from 2005 to 2006 at 14.5 percent

·        Improvements in tracking contributions and their impact

·        Mergers and acquisitions, leading to increasing giving budgets

·        Pro bono valuations and an increased ability to track and value noncash contributions and services

·        International giving, with companies creating new programs to fund grant-making projects around the world

Corporations that decreased their giving often cited a lack of disaster-relief funding and drops in matching gifts related to relief efforts. In this sense, many corporations simply returned to their “normal” giving levels in 2006 after making considerable increases in 2005.

Other factors that led to decreases in charitable contributions included:

·        Corporate spin-offs and mergers, leading to cuts in philanthropy budgets

·        Completion of multiyear grants, leading to a period of review and evaluation by the corporation

·        Tightened procedures for noncash giving

·        Decrease in the value of donated products

·        Lower overall production of goods, thus making less available to donate

Where the Contributions Went

Health and social-service organizations continued to be the popular recipients of corporate philanthropy, with 31 percent of the typical company’s total giving budget. Education causes accounted for a quarter of the typical company’s contributions.

The least popular destination of contributions was environmental concerns, with just 3 percent going to organizations focused on this area.

The survey asked companies to list the top four focus areas of their giving in priority order.

However, slightly less than two-thirds of the companies (64 percent) committed the largest overall contribution to the area they identified as their highest priority. The survey notes that there are reasons for this discrepancy, including difficulties in categorizing programs and older, traditional programs that the corporation might have been giving to for years.

Direct cash (giving from headquarters and regional offices) continues to account for the largest percentage of corporate support (44 percent). Thirty-six percent of corporate support came from foundation cash, while 20 percent represented noncash gifts.

About the Survey

Begun in 2001, the CECP survey is administered annually and consists of questions that capture the totality of corporate giving, including cash and noncash contributions, pro bono services, volunteerism, matching of employee giving and management and program costs. Companies complete the survey online, thereby creating a data repository of corporate giving.

The full report can be found on the CECP website.

The Committee Encouraging Corporate Philanthropy is an international forum of business CEOs and chairpersons pursuing a mission exclusively focused on corporate philanthropy.

Most Americans Not Aware of Advantages of Giving Securities  

(Nov. 12, 2007) A new report shows that American donors could realize $4.5 billion in additional tax savings if they gave appreciated securities instead of cash, but most are not aware of the tax advantages.

According to Smart Giving: Maximizing Your Charitable Dollars Through Donations of Appreciated Stocks and Mutual Funds, published by Fidelity Investments, almost three-quarters of all contributions made by individuals in 2004 were in the form of cash.

However, a random sample of 50,000 Fidelity customer households with at least $25,000 in securities found that 90 percent of them could have donated $10,000 entirely in securities with long-term appreciation. Those households would have realized an additional $449 in federal tax savings above and beyond the tax savings made from just making the contribution. In addition, there could have been additional savings from state and local taxes since donating appreciated securities may help avoid them as well.

Tax Advantages Not Well Known

While many households may have the resources to donate such gifts, 68 percent of respondents to a Fidelity survey were not aware of the additional tax advantages they would receive by make gifts of appreciated securities. More than half (54 percent) could not identify any additional advantages, even when the benefit of reduced capital gains tax was offered as a response option. Nearly 40 percent said they did not want to give up high-performing securities (the report notes they can be immediately repurchased), and 23 percent cited too much paperwork.

Just 5 percent of respondents indicated having made a donation of appreciated securities to charities over the past three years. Even among respondents who gave more than $5,000 in 2006, just 17 percent reported donating securities to charity.

Donor-Advised Funds

The survey also asked respondents about their knowledge of donor-advised funds. Eighty-six percent had either not heard of donor-advised funds or knew little about them. Only 3 percent reported giving to or using a donor-advised fund.

Gifts to charities with donor-advised fund programs accounted for just $6 billion of the almost $300 billion in charitable contributions in the United States in 2006, according to the report.

About the Report and Survey

The survey used in Fidelity’s report consisted of 500 households with at least $100,000 in investable assets that had reported donating $1,000 or more to charity at least once in the past three years. The survey was conducted online on Sept. 11–13, 2007, by Richard Day Research.

The full report is available on the Fidelity website.

Fidelity Investments is one of the world’s largest providers of financial services, with custodied assets of $3.3 trillion, including managed assets of more than $1.5 trillion as of Sept. 30, 2007. Fidelity offers investment management, retirement planning, brokerage, band human resources and benefits outsourcing services to more than 23 million individuals and institutions as well as through 5,500 financial intermediary firms.

IRA Rollover Extension Approved by the House  

(Nov. 12, 2007) The House of Representatives has passed legislation, the Temporary Tax Relief Act of 2007 (H.R. 3996), that includes a one-year extension of the Individual Retirement Account (IRA) rollover provision and several other charitable giving incentives.

The version of the IRA rollover provision in H.R. 3996 is exactly the same as current law, which means that:

·        Donors must be age 70˝

·        There is a $100,000 annual gap on IRA rollover gifts

·        Gifts must be made directly to a charitable organization (no planned or deferred gifts)

The bill changed the termination date of the IRA rollover provision to Dec. 31, 2008, allowing donors another year to take advantage of the giving incentive.

“While we want the IRA rollover expanded and ultimately made permanent, an extension of the provision was our baseline goal,” said Paulette V. Maehara, CFRE, CAE, president and CEO of AFP. “We appreciate the work of Congressman Rangel [Charles B. Rangel (D-N.Y.), chairman of the Ways and Means Committee] for his work and support in introducing the legislation and shepherding it through the House.”

AFP continues to encourage members to contact their U.S. Senators and urge them to not only extend the IRA rollover but expand it as well. “The provision has extensive support in the Senate, and if we continue to make calls and fax letters, Congress may decide to consider an improved version of the bill,” Maehara added.

Additional Incentives

H.R. 3996 also included several other charitable giving incentives that are much more narrowly focused:

·        Extension of provision encouraging contributions of capital gain real property made for conservation purposes

·        Extension of enhanced charitable deduction for contributions of food inventory

·        Enhanced charitable deduction for contributions of book inventories to public schools

·        Extension of enhanced deduction for corporate contributions of computer equipment for educational purposes

·        Extension of special rule for S corporations making charitable contributions of property

A summary of the bill can be found on the House of Representatives’ Ways and Means Committee website (the IRA rollover extension and other charitable incentives can be found on page 7).

 National Philanthropy Day® Celebrated Across North America  

(Nov. 19, 2007) More than 50,000 people in 125 events across North America celebrated the 22nd anniversary of National Philanthropy Day®(NPD), which recognizes and pays tribute to the extraordinary contributions that charitable giving and volunteerism have made to society.

Most of the events, which are coordinated by AFP chapters, feature awards presented to outstanding local philanthropists, volunteers, foundations, businesses, young people and others to honor them for their charitable work. Some events are held in conjunction with a conference, workshop or plenary speaker presentation.

“Millions of people around the world have given billions of dollars and volunteer hours,” said Paulette Maehara, CFRE, CAE, president and CEO of AFP. “National Philanthropy Day provides an opportunity to recognize the people and organizations that give of themselves and work to make our world a little better every day.”

First celebrated in 1986, NPD began with a presidential proclamation from then-president Ronald Reagan. Celebrities such as Bob Hope and Art Linkletter have served as National Philanthropy Day® spokespersons. Noted songwriter Marvin Hamlisch even wrote an official theme song for the day, “Now More Than Ever.”

“From just a few local events in 1986 to a truly international celebration in 2007, National Philanthropy Day has grown significantly, just as charitable giving and volunteerism have increased exponentially,” Maehara said. “Service to the community is the foundation of our country and our society, and it’s critical that we take a moment to step back and remember what philanthropy and charitable organizations have accomplished.”

Oliver “Buzz” Thomas, director of the Niswonger Foundation, was the guest speaker for the Philanthropy Day Celebration held in Johnson City by AFP – Mountain Empire Chapter.

Philanthropy is Alive in Greeneville, Tennessee…

In Wisconsin, a grateful patient walks into a radiology/oncology department and presents the attending physician a check for $10,000.00.

In Maryland, a family transforms a personal tragedy into support for two hospitals and embarks on a program to raise $1 million.

This Is Healthcare Philanthropy In Action.

We have created a tradition of patient-oriented health care in the community and take pride in our strength, built on the following principles:

1. Diligent, sound management practices;
2. Attracting and maintaining a highly skilled and diversified medical group;
3. Providing a dedicated medical and administrative support staff.

It was timely that a philanthropic and development vehicle be established, by which grateful patients, corporate friends, healthcare philanthropists, and Laughlin supporters (internal and external) can be rewarded, philosophically and psychologically, through their participation in this charitable endeavor.

As we embarked on this visionary mission, we did so with great confidence in our employees, medical staff, hospital board of directors, volunteers, foundation board of trustees, and a giving, caring community.

The Laughlin Health Care Foundation

Since the founding of Laughlin Clinic, there has not been a vehicle to provide donors an opportunity to support the work of Laughlin Memorial Hospital. With the challenges of health care reform and in order to meet emerging health care needs, this is an appropriate time to present donors an opportunity to invest in the future of health care in the community.

The Foundation provides for investments in two ways:

1. The future, through endowment funds
2. And for current health care support through active funds.

These funds assure safety and growth for Laughlin Memorial Hospital, Laughlin Healthcare Center, and Laughlin Home Health. And, of utmost importance, the funds are designed to meet the philanthropic impulse of the donors, and there are choices:

The Growing Tree - Support for The Children's Center
The Giving Tree - Support for cancer care
Loving Hearts - Support for ICU and Fourth Floor
Tree of Life - Major gifts - designated and undesignated
Gifts of the Heart - In memorial and in honor giving
Hearts with Hands Employee Emergency Fund - Payroll deduction and fund raising activities

Laughlin Health Care Foundation Mission Statement

Laughlin Health Care Foundation is a not-for-profit, philanthropic organization concerned with the long-term health care needs of our community and with health care education.

The Foundation is dedicated to building strong relationships with the community and providing opportunity for investments in the future of health care at Laughlin Memorial Hospital, Laughlin Healthcare Center, and Laughlin Home Health.

Laughlin Health Care Foundation is led by dedicated volunteers, who are committed to preserving, enhancing, and advancing the quality of health care in the area.

Philanthropy is…
The voluntary giving and receiving
of time and resources, frequently
within an organizational context,
directed toward charitable purposes
and/or betterment of the quality of life.

Copyright: Saint Mary's University
Graduate School of Philanthropy and Development Class of 1991

Since 1939 the name Laughlin has stood for superior healthcare, attracting and maintaining a pool of highly skilled medical professionals to deliver superior healthcare to this community. We are now offering an opportunity for individuals and corporations to become healthcare partners and to assist interested parties in meeting their charitable impulses through a variety of giving programs.

The foundation's establishment is visionary...it will help provide care into the next century and beyond.

There was a time when foundations and endowments were only for the rich: wealthy people and successful organizations. The Laughlin Health Care Foundation will make it possible for everyone to be a philanthropist.

As Laughlin Memorial Hospital, Laughlin Healthcare Center, and Laughlin Home Health are positioned to be the lead providers of healthcare in Greeneville and Greene County, philanthropy will play an increasingly important role in our ability to deliver the best facilities, technology, and comprehensive education and outreach programs for the residents of our community.

An old Chinese proverb states: 'Without vision, we and our institutions perish.' The foundation is an investment for the present and in the generations that will follow us.

Your comments are invited. The foundation office is located on the first floor of the Laughlin Memorial Hospital. The phone number is 423.787.5117. Betty S. Weemes, MA, CFRE, is the director of Laughlin Health Care Foundation.

Laughlin Health Care Foundation
1420 Tusculum Blvd.
Greeneville, TN 37745

What if Laughlin Health Care Foundation earned a penny every time you searched the Internet?  Well, now we can!

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Just go to www.goodsearch.com and be sure to enter Laughlin Health Care Foundation as the charity you want to support.