Valuation Guidance

Question IV.B: Philanthropic Leverage

For some companies, part of their philanthropy effort includes raising money from employees, customers, suppliers, and/or vendors. This question allows companies to capture the total dollar amount raised from others, a figure not captured elsewhere in this survey.

To be included in this question, funds must be raised from formal campaigns meeting the following criteria:

o Corporate Commitment: These campaigns must be company-sponsored, organized by a professional giving officer, and run nationally (at least). Campaigns that occur only in particular offices, regions, or stores are not included.

o Nonprofit Beneficiaries: Recipient organizations of the funds raised must be 501(c)(3) organizations or the international equivalent.

o What to Exclude: Any contribution provided by the company should not be included here. All corporate contributions to 501(c)(3) organizations or the international equivalent are covered by Questions II.A-IV.A.

The first part of the question specifically relates to money raised by your company from non-employees such as customers, vendors and suppliers.

Examples:

o During the month of May, Smith’s Hardware, a national retail chain, allows shoppers to donate money at the register to benefit a local hospital. Smith’s Hardware then forwards all donations to the 501(c)(3) organization.

o FillUp, an energy company, allows customers to make a personal donation of $1 at the gas station during their fuel-purchasing transaction; this donation campaign runs for three weeks in December and FillUp sends all money raised to the selected 501(c)(3) organization.

o ChargeIt, a credit card company, is raising money to save a national landmark by supporting a nonprofit organization that works for its preservation. As such, ChargeIt allows its customers also to contribute to the cause by making a personal donation that ChargeIt adds to the customer’s bill and then forwards all funds received to the 501(c)(3) organization.

o A tsunami recently wreaked havoc on an island community and many companies are raising funds to support the inhabitants. InTouch, a telecom company, invites customers to text the name of the cause to a specific number, thereby notifying InTouch that they would like a $10 donation to appear on their next phone bill. InTouch forwards all customer contributions to a 501(c)(3) organization providing health care in the region affected by the tsunami.

o In response to the economic downturn, LightsOn, a utility company, created a unique program that allows customers to elect to add a personal donation to their monthly bills in order to help other customers who cannot afford to pay their own electric bills. LightsOn forwards these contributions directly to PayItOn, a 501(c)(3) organization that manages this program and applies the donations to customers in need.

Money Raised from Employees:

Examples:

o MoneyWise, a financial company, offers a year-round matching-gift program by which all employees can choose to donate personal funds to any educational institution and MoneyWise will match the contribution 1:1. The contributions made by the employee only should be included here (the corporate side of the match should be recorded in Question IV.A).

o The philanthropy team at BankTen decides to organize company-wide participation in a national cancer walk and invites all branches to create teams. The teams primarily consist of employees and their families. All funds raised by employees and their families go directly to CancerResearch, a 501(c)(3) organization. The company’s grant is not included here—only the amount raised by employees and their families.

o A car manufacturer runs a United Way Campaign by which employees are encouraged to make donations. While the company does not match employee donations, the company makes a contribution to the campaign, which should not be included here. However, the employee donations to the United Way should be included here.

Giving that Should Not be Included in this Question:

• Any corporate giving (direct-cash, foundation-cash, or non-cash contributions). Corporate giving to a 501(c)(3) organization or the international equivalent should be included in Questions II.A-III.C.

Example: A laptop manufacturer sells one of its models with the agreement that for every unit sold, the laptop manufacturer will donate a percentage of the retail price to a nonprofit organization working on TB prevention throughout the developing world. This is corporate giving and should be included in Questions II.A-III.C.

• Fundraising for a run/walk that involves only one office/region/store and which is not company-sponsored. Such a fundraiser would have to be organized by a professional giving officer at the company and open to participation by all company branches in order to be included in this question.

Example: An employee in the Ohio office has a family member diagnosed with MS. The Ohio office participates in a walk to benefit MS and raises funds from employees, families, and other local supporters. This is a local fundraising effort, not supported by a member of the philanthropy department and not run on a national level.

Survey Instructions:

• For fundraising efforts primarily targeting non-employees, record the total number of campaign days across all campaigns offered during the 12 months of this survey.
• The total marketing and administrative dollars spent to promote these non-employee campaigns includes funds spent on the following: in-store marketing, thank-you items, space in circulars, paid advertising, website design, social media costs, etc. While these costs may also be included in your response to Question V.E (Management and Program Costs), this question allows companies to separate these costs out for benchmarking purposes.
• For fundraising efforts primarily targeting employees, record the total dollar amount raised from employee payroll deductions and the total dollar amount raised from non-payroll employee contributions.
• The number of nonprofit partners should reflect the number of nonprofit organizations that are the recipients of these fundraising campaigns throughout the year.