Valuation Guidance
Question V.E: Management & Program
Costs
The
goal of this question is to capture how much it costs to operate the giving and
employee engagement programs. These costs are not included in “total giving,”
yet they are an important statistic to compare across companies. Over the
years, this question has been simplified significantly, such that, at present,
only the top row is enabled for data entry. Answers to the other question parts
are no longer required, but the questions remain visible for any companies
wishing to analyze surveys completed prior to 2007. Please see page 10 for a description of how
to use “Consolidated” fields.
Types of Costs to
Include
Compensation: Staff salaries and benefits
for all Contributions FTEs listed in Question V.A. Programmatic
expense:
Funds used to support specific grants, not including the grant
contribution itself. These costs include office supplies, postage, travel,
promotional items (e.g., banners, T-shirts, catering, facilities, and
equipment rental) and any other money spent to conduct a specific
program or initiative. You may also include the cost of freelancers,
consultants, or other outsourced employees hired to assist with specific
grants by contributing services such as writing, researching grant
effectiveness, project management, etc. These costs can include cash and
non-cash contributions. Operating
expense/overhead: Costs of day-to-day operations, such as electricity, telephone,
computer software, printing, attendance at industry events, internal
communications, and facilities charges. These are your general “costs of
doing business” and are not associated with specific grants. Include
subscription or membership fees to 501(c)(3) organizations where the primary
membership benefit goes to the company (i.e., membership fees for CECP and
The Conference Board). You may also include the cost of freelancers,
consultants, or other outsourced employees whose services aid the general
operation of your philanthropic programs. This might include the costs of
implementing or customizing software, processing grant applications or
checks, strategic consulting, etc. Any fees paid to vendors for
grants-management software and grants-processing (e.g., MicroEdge, CyberGrants,
JK Group, etc.) should also be included here. Budget-Source
Designations
Foundation
& Corporate Community Affairs: Combine spending from your foundation (if
applicable) and your corporate community affairs (or similarly named)
department. If you have only a foundation or only a corporate community
affairs office, enter that data in this column. All Other
Groups:
Use this column for costs incurred by offices, regions, business units, or
groups outside the corporate headquarters giving office and the
foundation (in other words, from budgets not included in the category above).
Volunteerism: These are the costs
specifically related to the management of volunteer initiatives and can be
incurred by either of the groups above (“Foundation & Corporate Community
Affairs” or “All Other Groups”). In order to avoid double-counting, do
not include volunteerism costs in the “Foundation & Corporate
Community Affairs” column or in the “All Other Groups” column. |