Corporate donations adjust to economy

Chicago Tribune

CHICAGO — As 2008 drew to a close, Family Rescue knew it would have to dig in for several hard months.

The weak economy had dealt a heavy blow to United Way of Metropolitan Chicago, a major funder of Family Rescue, which provides services to victims of domestic violence.

“We didn’t feel the hit until this year, but we knew it was coming,” said Stephanie Scott, director of human resources at Family Rescue. To prepare, the nonprofit left several vacant positions unfilled and streamlined some programs, hoping it could avoid big cuts in services.

Now, as companies wrap up their annual workplace giving campaigns, organizations such as Family Rescue are feeling a bit better.

Family Rescue was able to rehire seven employees who were laid off this year and, because of an expected uptick in funding, is planning to add two positions.

“Right now, things seem to be a little bit more on the upswing,” Scott said.

Employee-giving campaigns are staging a slow recovery after a rough 2008, when layoffs, tight budgets and economic malaise prompted a sharp pullback in corporate philanthropy.

This year, giving isn’t expected to match pre-recession levels, but many companies are noting an improvement in worker morale and ability to donate.

Organizers of charitable campaigns also are tailoring their programs to fit the economic climate, emphasizing participation and volunteerism over financial contributions.

“There’s been a different philosophy this year,” said Rita Kusler, chief operating officer of the JK Group, a corporate philanthropy consulting firm. “Some companies have not wanted to promote [giving campaigns] as strongly, thinking that people are exhausted.”

Discover Financial Services has handled requests for financial donations with a light touch.

“We have moved away from fund-raising activities for employees,” said Matt Towson, senior manager of community affairs. “So rather than ask employees to give to a certain charity, we have used volunteerism as a way to engage employees.”

Discover did keep in place its workplace-giving campaign and saw donations rise 6 percent in dollar terms compared with 2008, Towson said.

On the volunteer side, Discover is rewarding employees who log 24 hours of service with a $100 donation to any nonreligious or nonpolitical organization of their choice.

The firm also made September its volunteer month, with employees rehabbing schools and participating in other local beautification projects.

In 2008, the first year of the program, 60 percent of the work force in Riverwoods donated time.

This year, participation rose to more than 70 percent of employees, and the number of volunteer hours rose by more than 50 percent.

Volunteerism is also a key component of the philanthropy program at MillerCoors, which opened its headquarters in Chicago in June. Brian Erhardt, vice president of strategy and the chairman of the company’s first United Way campaign, said organizers wanted employees to know that donations of time and money would be equally valued.

The campaign also stressed that employees could donate to any nonprofit group through the firm’s campaign.

The program emphasized “respect of individual choices,” Erhardt said. “There are no mandates, personal targets or participation rates we’re trying to hit.”

Although individual companies may be treading carefully, United Way of Metropolitan Chicago is being more aggressive, because so many groups rely on the nonprofit.

The organization saw a significant decrease in donations last year, so Chief Executive Laura Thrall said her message for this season was “flat is not OK. We need to bump the campaign up.”

United Way of Metropolitan Chicago’s initial 2008 fund-raising goal was $68 million, just above the amount raised in the previous year.

The organization scaled back the goal to $62 million and ultimately raised $58 million. The decline forced United Way to notify local agencies that they would be receiving 20 percent to 30 percent less funding than normal.

Thrall got such a letter at YWCA Metropolitan Chicago, where she served as CEO before joining United Way in March.

“The feeling we get from our corporate partners [this year] is that they’re feeling a level of stability,” Thrall said. The organization’s 2009 goal is $60 million. “That fear of falling from last year has kind of subsided. We’re cautiously optimistic. ... We had to be aspirational.”

The recession also prompted United Way to improve its cam- paigns and outreach.

Thrall said the organization revamped its marketing to reach younger donors and emphasize several key funding areas, giving contributors a better sense of where their dollars are going.

Don Sodo, CEO of America’s Charities, a federation of charities that runs work-place-giving campaigns, noted that the country has “a younger, more diverse work force than 20 years ago.”

Younger workers also tend to be more interested in social issues and global charities than the older generation, Sodo said.

One result of the demographic shift is that nonprofits such as the Human Rights Campaign and Amnesty International have become part of employee giving campaigns.

“Another element is technology, and this is important,” Sodo said. “There’s robust information [online] about charities now.”

At Abbott Laboratories, employees in charge of their location’s workplace giving campaign are encouraged to invite representatives from nonprofits to address workers.

Abbott also set up cyber cafes in the cafeterias of manufacturing facilities so employees can make pledges during breaks.

Even with economic stresses, “I knew they were going to rise to the occasion,” Cindy Schwab, vice president of the Abbott Fund, said of her co-workers.

Abbott hasn’t crunched the final numbers from its 2009 campaign, but it is on pace to set a record in employee participation — 77 percent — and financial commitments. This year’s program has raised almost $5.7 million so far, an increase of more than $500,000 from 2008.