Corporate Philanthropy: What Is the Strategy?

Abstract

Strategic philanthropy, according to the literature, is becoming the state of the art in corporate contribution management. The term is defined in this study as the process by which contributions are targeted to meet business objectives and recipient needs. It represents the integration of philanthropy into the overall strategic planning of the corporation. Given this trend, this research examines the extent to which corporate philanthropy has become predominantly a business deal with direct and measurable financial returns to shareholders. The study presents the results of a national survey of corporate direct contribution programs. The 226 corporations that responded to the mailed questionnaire were primarily large corporations from over 20 different industries. The findings suggest that contributions made directly by corporations are primarily used in less tangible ways to meet responsibilities to employees and their communities.