Alabama Giving Survey Results

Alabama GivingSurvey Results

Respectfully Submitted By:New South Research3000 Riverchase Galleria, Suite 405Birmingham, AL 35244Phone: (205) 443-5350Fax: (205) 443-5340Email: [email protected]

Presented By: New South Research 2

“We are more than a business. We’re a part of the system of the community. It’s critical that we put money back into the community.”


Introduction

To assess the attitudes of business leaders of Alabama concerning charitable giving practices and to understand community involvement by businesses, New South Research conducted 400 surveys with leaders from a range of industries, geographies and company size. Specific objectives of the research were to examine:

Motivations for and perceived benefits of charitable giving; Hindrances to charitable giving; Key factors and people involved in the decision to donate and contribute; Whether respondents believe their giving helps Alabama’s economic and

community development; Philanthropic, volunteer and community involvement of the respondents’

businesses; Cross-tabulations of the results by the business’s industry, revenue, size and

geography.


Introduction

To accomplish these objectives, NSR conducted a telephone survey with 400 Alabama business leaders who have knowledge of their company’s charitable giving practices. Most often, these were company owners, managers or those who are specifically designated to be in charge of the company’s giving.

All telephone interviewing was conducted from a central telephone facility in Birmingham, Alabama, using professional interviewers. Prior to the commencement of interviewing, all interviewers were thoroughly briefed on the purposes of the study by a trained supervisor. Supervisors were present at all times interviewing was being conducted. No problems were encountered which would affect the quality of the data or the findings presented in this report.

During the course of the interview, the respondents were asked a couple of open-ended, non-multiple choice questions. Their various answers are grouped into categories that best fit their answers. The categories of answers are presented in the body of this work.

The statistical margin of error, based on 400 interviews, is 4.9 percent at the 95 percent confidence interval. That is, if all businesses in the area studied were included in the survey, the results should vary no more than 4.9 percentage points from the results reported in this study.


Introduction

The following slides represent a map of the sample’s geographical segments and segmentation by business size. The geographical sampling was used to accomplish a representative mix of companies in Alabama. The segmentation by business size allowed for a broader picture of giving in Alabama, from companies with many employees that have the means to give large amounts to companies with fewer employees that may give smaller sums.


Baldwin

Barbour

Bibb

Blount

Bullock

Butler

Calhoun

Chambers

Cherokee

Chilton

Choctaw

Clarke

Clay

Coffee

Colbert

Conecuh

Coosa

Covington

Dale

Dallas

De Kalb

Elmore

Escambia

Etowah

Fayette

Franklin

Geneva

GreeneHale

Henry

Houston

Jackson

Jefferson

Lamar

Lauderdale

Lawrence

Lee

Limestone

Lowndes

Macon

Marengo

Marion

Marshall

Mobile

Morgan

Perry

Pickens

Pike

Randolph

Russell

Shelby

St. Clair

Sumter

Tallapoosa

Tuscaloosa

Walker

Washington

Wilcox

Winston

Autauga

Talladega

CrenshawMonroe

Montgomery

Cullman

Cleburne

Madison

Sample Design

Target Area 1: Metro Birmingham

Target Area 2: Other Major Markets

Target Area 4: Rural Alabama

Target Area 3: Smaller Cities


Geography Business Size

Area% of

SampleInterviews

500+250-500

100-250

20-100

1-20

Target Area 1Metro Birmingham (Jefferson, Shelby,

Blount, St. Clair, Walker)25% 100 20 25 25 20 10

Mobile (Mobile Baldwin) 11% 44 9 11 11 9 4

Target Area 2 Huntsville (Madison Limestone) 7% 28 5 8 8 5 2

Montgomery (Montg. Autauga, Elmore) 7% 28 5 8 8 5 2

Anniston (Calhoun) 4% 17 2 6 6 2 1

Decatur (Morgan) 4% 17 2 6 6 2 1

Dothan (Dale, Houston) 4% 17 2 6 6 2 1

Target Area 3 Florence (Lauderdale, Colbert) 4% 17 2 6 6 2 1

Gadsden (Etowah) 4% 17 2 6 6 2 1

Tuscaloosa (Tuscaloosa) 4% 16 2 5 6 2 1

Target Area 4 Rural (all others) 25% 100 20 25 25 20 10

Total Sample 100% 400 71 112 113 71 34

Sample Design


Key Points

The general picture of charitable giving in Alabama is one of responsibility, coupled with satisfaction. On the one hand, most of Alabama’s business leaders feel it is their responsibility to give back to the community and most are currently engaged in charitable giving. Furthermore, the vast majority of respondents give to local causes. On the other hand, for the most part, respondents seem pleased with the amount of giving and involvement of Alabama businesses and most do not predict increases in giving.

The majority of the respondents seemed to understand the tie between their business’s giving and strengthening communities. In fact, enhanced quality of life for the community is the strongest factor (on average) in the decision making processes. However, Alabama’s business leaders do not have as clear of an understanding concerning how their giving aids Alabama’s economic development.


Key Points

In general, smaller companies (those with less than 100 employees) were less engaged in charitable giving and less likely to believe that their giving helps improve Alabama’s economy and communities. Conversely, larger companies were more involved in charitable giving and seemed to have a better understanding that their contributions do help the state.

While respondents claim that altruism, especially “giving back to the community,” is the primary motivator for their business’s charitable giving, they recognize business interests, particularly generating goodwill within the community, as the primary benefits. Thus, while 15% of respondents said they are not looking for benefits when they give, the majority need to see that giving will benefit their business.

According to respondents, public recognition is one of the greatest benefits of charitable giving. Such recognition is particularly important for the larger companies in Alabama.


Key Points

Alabama businesses are likely going to require increased motivation for giving in the future, for while 41% of respondents said their business’s donations have increased over the past five years, just 24% said they expect their donations to increase in the next year.

However, among the respondents who had an opinion, 85% believe Alabama businesses are doing a good or excellent job in terms of charitable giving. Thus, it may be difficult to encourage businesses that increased giving is needed. Highlighting the link between giving and economic development may add another dimension by which companies measure the effectiveness of giving and may encourage them to increase their charitable donations.


Executive Summary:Motivations and Benefits of Charitable Giving

MotivationsWhen respondents were asked what motivates their business to participate in charitable giving, most offered altruistic explanations, such as “to help needy people.” However, when respondents were asked what the benefits of charitable contributions are to their business, most offered benefits to the business, such as positive public relations, rather than altruistic benefits.The overwhelming response for what motivates the respondents’ businesses to give charitably was to give back to and improve the community. There was a sense among participants that businesses have a responsibility to give back to the community that supports them. Furthermore, many respondents noted that they are supporting their employees when they give back to the community, whether they are supporting specific causes in which their employees are interested or that they are simply improving the community in which their employees live. Some respondents noted that this boosts employee morale, but others said they believe it is simply their responsibility to give back to their employees.


Executive Summary: Motivations and Benefits of Charitable Giving

Motivations (continued)

In terms of business motivations for charitable giving, respondents noted that contributing to the community gives the company a good name, which ultimately enhances opportunities for growth.

In fact, 72% of respondents said it is at least a little important that their business receive public credit and recognition for its charitable giving or community involvement. Interestingly, public recognition was most important in the smaller cities, and became more important as business size increased.


Executive Summary: Motivations and Benefits of Charitable Giving

Benefits

According to the respondents, generating goodwill and a visible, positive reputation within the community are the primary benefits of charitable giving to their businesses.

Respondents also cited the benefits charitable giving yields in terms of their employees. They explained that contributing to the community not only increases morale and a familial atmosphere among their employees, but also, because of various improvements to the community, it generates a more educated and well-rounded pool of employees from which to hire.

While most respondents noted their desire to create a strong relationship with the community for increased business, 15% of participants said they are not looking for benefits when their business gives charitably and 15% said the benefit is community improvement.


Executive Summary:Charitable Giving Decision Making Process

InfluencesAccording to the respondents, the key influencer in deciding which causes to support is the enhanced quality of life for the community. Conversely, the least important influencer is what other companies are doing.Notably, smaller companies are more influenced by the personal values of the owner/CEO than are the large companies. On the other hand, the larger companies are more strongly influenced by the community; they are more likely to be swayed by projects that can be seen as enhancing the quality of life of the community, investing in the community and increasing opportunities for economic development. They are also more strongly influenced by business citizenship and the potential for an enhanced quality of life for their employees.Financial considerations, including profits, the economic climate and lack of funding, are the primary reasons respondents said they may not increase (or initiate) charitable giving.


Executive Summary:Charitable Giving Decision Making Process

Parties with Input

Owners and managers have the most significant input in making charitable giving decisions. Conversely, designated committees have the least input.

Encouraging Segments of Population

According to the respondents, community residents are slightly more encouraging than customers and business peers in terms of community involvement. However, in general, participants feel that each segment is somewhat encouraging.


Executive Summary:Perceived Effects of Charitable Giving

Impact on Alabama’s Community and Economic Development

Half of the respondents (49%) strongly agreed that their business’s charitable giving helps the state of Alabama with community and economic development.

However, the majority of respondents were not able to articulate exactly why they believe their giving helps. The most common answer, among those who strongly or somewhat agreed that their giving helps the state, was rather generic—“benefits the community” (17%). Furthermore, 16% simply answered, “Don’t know.”

On the other hand, there were a few participants who had more specific ideas about how their giving helps Alabama. Respondents most often mentioned that giving enhances the state economy (11%), brings in new businesses/jobs (6%) and helps school funding (also 6%).


Executive Summary: Perceived Effects of Charitable Giving

Impact on Alabama’s Community and Economic Development (continued)

Of the 49 respondents who did not strongly or somewhat agree that their business’s giving helps the state of Alabama, nearly one-third (29%) said they did not know why they did not agree. Others seemed to feel their donations were too small (those with less than 100 employees were more likely to disagree that their donations help the state) or noted that they give their money out of state. (Of note, 82% of the respondents give their money to local causes.)

Perceptions of Alabama Business’s Efforts

Nearly half of the respondents (44%) believe Alabama businesses are doing an excellent or good job in terms of community involvement. On the other hand, 17% did not know enough to answer this question, and 39% said Alabama businesses are doing a poor or fair job.


Executive Summary: Charitable Giving Practices

Charitable Programs/Activities

Of seven charitable programs, the most common among respondents’ businesses are community partnerships with non-profit organizations, schools, little leagues, etc (73%) and their employees serving on city, county or non-profit boards (66%).

In terms of formal company programs, 43% have a formal company giving program and just 14% have a company philanthropic foundation.

Approximately one quarter of businesses surveyed have a system for evaluating the effectiveness of their business’s charitable giving (27%) or to measure employees’ volunteer hours (26%).



Types of Contributions

In terms of types of contributions, many of the businesses surveyed have programs in place that encourage their employees to become involved in charitable giving. Most commonly, 76% of businesses said they encourage their employees to volunteer and 62% said they have a payroll deduction program for contributions.

When asked about specific donation or sponsorship programs, respondents most often said their business sponsors scholarships or educational programs (73%) or donates cash directly to clubs, community foundations, etc (70%).

Most respondents (65%) said their company has never considered a community or private foundation as a means of giving.



Trends in Giving

Respondents were not as positive concerning the future of their charitable giving as they were about past giving trends. While 41% said their charitable donations have increased over the past five years, just 24% said they expect their donations to increase in the next year.

In the last fiscal year, 36% of respondents’ companies donated less than $25k, 25% donated $25-$100k and 17% donated over $100k. (Twenty-four percent either did not know or did not divulge this information.)

Motivations and Benefits of Charitable Giving


Insight

“We are involved with causes undertaken by clients, which enhances public relations with our clients.”

“The main benefit is that it builds brand loyalty. We give back to the community and build a strong loyalty base.”

“We become better known in our community as a caring company, who cares about our community and its employees. The better known we are, the more support we generate for the things we need to do. For instance, if we have to go up on rates, we don’t get so much opposition from the community we serve.”


Insight

“The goodwill of the community. Desire to be in the contributing part of the community.”

“Good for employee morale. Employees who see their interests and needs being catered to feel more than just an employee to the company.”

“To have a good name out in the community. I think employees are happier working for a company that gives charitably. It gives your company a good name.”


In an open-ended question, respondents were asked what motivates their business to be involved in the community. As the chart below shows, the most common answer was that the respondents believe they should give back to the community.

3%

3%

4%

7%

7%

7%

9%

10%

10%

15%

48%

0% 10% 20% 30% 40% 50%

Increase business

Improve quality of life

Gives company good name

For a worthy cause

Partner with community

Benefit/support employees

Shows concern for community

Good corporate citizen

Help needy people

Our responsibility/right thing to do

Give back to/improve community


All of the answers given for the open-ended question that asked respondents what motivates their business to be involved in the community were grouped into two categories: altruistic (such as “help the needy”) and business (such as “creates goodwill”) interests. Clearly, participants were more inclined to respond that their business gives for altruistic rather than business reasons. (Totals can exceed 100% because this was a multi-response question.)

30%

120%

0% 20% 40% 60% 80% 100% 120% 140%

BusinessInterests

AltruisticInterests


In an open-ended question, respondents were asked what the benefits of charitable contributions are to their business. Thirty-five percent of respondents noted the relationship and reputation that charitable contributions can create for them in the community.

5%

6%

6%

7%

14%

14%

15%

15%

17%

18%

0% 10% 20%

Like to see people helped

Good corporate citizen

Tax breaks/deductibles

Increases business

Generates good/high morale employees

Advertisement for company

Not looking for benefits

Community improvement/involvement

Creates good reputation/visibility

Generates goodwill/relationship with community


The respondents’ answers to how charitable giving benefits their business were grouped in two categories: business (such as “advertisement for company”) and altruistic (such as “benefits youth”) interests. Interestingly, while most respondents said altruism motivates their business’s charitable giving, most said that business interests are the benefits of charitable giving.

33%

81%

0% 20% 40% 60% 80% 100%

Altruistic Interests

Business Interests


When asked directly, 72% of the respondents said it is at least a little important that their business receive public credit and recognition for its charitable giving or community involvement.

28%

22%33%

17%

Not at all important A little important Somewhat important Very important


The chart below shows, by size of company, the percentage of respondents who said it is somewhat or very important that their business received public credit for its charitable giving. Clearly, as company size increases, so does the importance of public recognition.

40%

51%58%

0%

20%

40%

60%

80%

<100 101-250 251+


The chart below shows, by target area, the percentage of respondents who said it is very important that their business receive public credit for its charitable giving. Businesses in more rural areas are more likely to say it is very important that they receive public recognition, perhaps because they are not as often recognized.

14% 13%

29%

18%

0%

10%

20%

30%

Metro B'ham(target area 1)

Other majormarkets (target

area 2)

Smaller cities(target area 3)

Rural AL(target area 4)

Decision Making Process


Insight

“We don’t see a return on anything. If you help those in need and see how they benefit from the company contributions, that’s satisfying in itself.”

“Community involvement. Businesses don’t need to be just taken by the company, but also give back for the benefit of the community by giving to schools and churches.”

“I think it’s our responsibility as leaders.”

“To build a better feeling from the community about my business, so they would feel comfortable supporting me with business down the road.”


Respondents were read a list of factors that may influence their business’s decision to support different causes. The respondents then rated those factors on a scale of 1 (not a factor at all) to 5 (strong factor). The mean scores are shown on the graph below. According to the respondents, enhanced quality of life for the community has the strongest influence on charitable giving, while the example of other companies has the weakest influence.

2.5

3.5

3.6

3.6

3.7

3.7

3.8

4.0

4.1

4.2

4.2

4.6

1 2 3 4 5

Example of other companies

Precedents (past donations, etc.)

Increased opportunity for econ. development

Interests of employees

Strategic interests of your business

Condition of your business (profits, etc.)

Position of company in community (PR)

Personal values of owner/CEO

Enhanced quality of life for employees

Business citizenship (responsibility of businesses)

Long term investment in community

Enhanced quality of life of community you serve


Based on the list of factors that were read to them, respondents were also asked to name the most important factor that influences their decisions concerning charitable giving. The chart below reiterates that enhanced quality of life for the community is the most important factor.

0%

1%

1%

2%

3%

3%

4%

6%

8%

10%

10%

14%

37%

0% 10% 20% 30% 40%

Example of other companies

Precedent (past donations, etc.)



Strategic interests of business

Condition of your business (profits, etc.)

Investment in community

Position of company in community (PR)

Don't Know




Enhanced quality of life for community


Key Influencer Cross-Tabulations

The factors considered in the charitable giving decision making processes were cross-tabulated by company size and target area, revealing the following:

Enhanced quality of life is a stronger influence with larger companies and with companies in the rural target area. It appears, then, that such companies feel greater responsibility for their communities than do larger companies in less rural areas.An increased opportunity for economic development is a less important factor for mid-sized businesses than it is for smaller and larger businesses. That charitable giving can be seen as a long term investment in the community and the interests of employees are less important factors to smaller businesses.In the smaller cities (target area 3), the personal values of the owner/CEO are less likely to be a strong factor in the decision making process. On the other hand, the personal values of the owner/CEO are more likely to be a strong factor for companies with less than 100 employees.


Key Influencer Cross-Tabulations

In metro Birmingham, business citizenship is less likely to be a strong factor, while the condition of the business is more likely to be a strong factor.

On the other hand, business citizenship becomes a stronger factor for companies as company size increases.

The graphs on the following two slides illustrate these key differences.


The chart below represents cross-tabulations that revealed statistically significant differences in the charitable giving decision making by company size. Respondents rated each factor’s importance on a 1 (not a factor at all) to 5 (strong factor) scale. The percentage of respondents who gave a 4 or 5 rating are shown.

51%

41%

69%

26%

64%

65%

48%

39%

57%

59%

40%

76%

75%

59%

64%

54%

55%

52%

85%

78%

68%

0% 20% 40% 60% 80% 100%






Long term investment in community

Enhanced quality of life of community you serve

Less than 100 101-250 251+


The chart below represents cross-tabulations that revealed statistically significant differences in charitable giving decision making by target area. Respondents rated each factor’s importance on a 1 (not a factor at all) to 5 (strong factor) scale. The percentage of respondents who gave a 4 or 5 rating are shown.

60%

62%

64%

70%

50%

63%

68%

77%

50%

54%

61%

80%

53%

63%

78%

77%

0% 20% 40% 60% 80% 100%

Condition of business

Personal values ofowner/CEO

Enhanced quality of life foremployees

Business citizenship(responsibility of

businesses)

Metro Bham Other Major Markets Smaller Cities Rural AL


Respondents were asked to indicate, on a scale of 1 (Not Significant) to 5 (Very Significant), how significant the input of various parties is in making decisions concerning charitable giving. The mean scores are shown on the chart below. Clearly, the owners and management have the most significant input.

1.8

2.5

2.7

2.8

3.0

4.1

4.1

1 2 3 4 5

Other persons or groups

Designated committee

Owner's family

Staff person

Employees as a whole

Management

Owners

The “other” persons mentioned by respondents as having input in charitable giving decisions were charitable organizations (5), corporate (3), the public (3), foundation (2), community leaders, BCA, board of directors, union and volunteers.


Respondents were asked to indicate, on a scale of 1 (Very Discouraging) to 5 (Very Encouraging) how encouraging various segments of the community may be in terms of charitable giving and community involvement. As the chart below shows, respondents seem to feel encouraged by most segments of the community. (The chart represents mean scores.)

3.9

3.9

4.2

1 2 3 4 5

Business peers

Customers

Communityresidents as a

whole


Key Input/Encouragement Cross-Tabulations

In the most rural area, target area 4, the owner’s family is more likely to have a very significant input in charitable giving decisions.

Furthermore, as would be expected since the personal values of the owner are a strong influence in smaller companies, as business size decreases, the owner and owner’s family’s input becomes more significant, while a designated committee’s input becomes less significant. This dynamic is illustrated in the graph on the following slide.

Of note, in major markets other than Birmingham, business peers are less likely to be very encouraging. On the other hand, business in more rural areas (target areas 3 and 4) were more likely to find community residents to be encouraging.

Furthermore, companies with less than 100 employees were less likely to find business peers and community residents to be very encouraging, but more likely to find customers to be very encouraging.


The chart below represents cross-tabulations that reveal statistically significant differences in charitable giving decision making by business size. Clearly, the owner and owner’s family have a greater input among the smaller companies, while a designated committee has a stronger input among the larger companies.

11%

29%

13%

13%

47%

75%

12%

22%

13%

18%

48%

71%

34%

9%

19%

18%

53%

46%

0% 20% 40% 60% 80%

Designatedcommittee

Owner's family

Staff person

Employees as awhole

Management

Owners

<100 101-250 251+


In an open-ended question, respondents were asked what keeps their business from increasing (or initiating) its charitable contributions. As the chart below shows, financial considerations in general and profits specifically are clearly the primary determinants.

1%

1%

2%

2%

3%

3%

4%

7%

9%

12%

20%

42%

0% 10% 20% 30% 40% 50%

Company growth

Gross revenue percentage

Home office decides

Time

Their needs

Employee participation

Depends on charity

Nothing

Lack of funds

Our budget

Economic climate

Profits

Perceived Effects of Charitable Giving


Insight

“It’s good to help the whole community lift their economic status and keep them from depending on welfare. It also helps the citizen maintain his taxpayer status. By supporting a lot of these services, you sustain their independence…”

“It helps the community grow. Our giving to the community is proportionate to our growth…”

“The employees live in our community. It’s our first responsibility to them, but others need help, so we do it whenever we can.”

“We feel that supporting the community is a benefit to the community in the long term and a benefit to the quality of life for our employees.”


Most respondents agreed that their business’s charitable giving helps the state of Alabama with community and economic development.

9%

38%

49%

4%

Strongly disagree Somewhat disagree Somewhat agree Strongly agree


The chart below shows, by company size, the percentage of respondents who strongly agree that their business’s giving helps the state of Alabama. Clearly, as the number of employees increases, so does strong agreement that their contributions help the state.

35%

52%

60%

0%

20%

40%

60%

80%

<100 101-250 251+


The chart below shows the most common reasons respondents mentioned for why they agree that their business’s charitable giving helps the state of Alabama with community and economic development. The respondents’ answers reveal that many do not have specific ideas about how giving impacts development. (N=348)

6%

6%

6%

7%

8%

11%

16%

17%

0% 10% 20%

Helps school funding

Brings in new businesses/jobs

Give to local charities

Anything will help the state

Give to good charities

Enhances state economy

Don't Know

Benefits the community


The chart below shows all of the answers respondents gave for why they believe their giving helps the state of Alabama with community and economic development. They are grouped under category headings (shaded in gray).

Improves Community 32% Helps Economy 21% Give Locally 12%

Makes the community better 9% Enhances state

economics 10% Give to local charities 8%

Benefits the community 7% Brings in new

businesses/jobs 4% Give to Alabama charities 3%

Helps school funding 6% Stimulated economy 2% Our charities go to state 1%

Helps the children/youth 3% Helps them be more

productive 2% Anything Helps 12%

We give to police dept/state troopers 3% Sharing of resources 1% Anything will help the state 6%

We give large contributions 1% Helps state funded

programs 1% Any amount helps 4%

Shows responsibility 1% Economic development 1% State has no money 2%

In healthcare industry 1% Important Causes 13% Improved Quality of Life 4%

Helps churches 1% Give to good charities 9% Helps people's quality of life 3%

Support health based charities 1%

We get good recipient response 2% Our products help people 1%

We have annual

fundraisers 1% Don't Know 9%

Our giving is for

substance 1%


The chart below shows the most common reasons respondents mentioned for why they disagree that their business’s charitable giving helps the state of Alabama with community and economic development. Nearly one-third of these respondents were unable to provide a reason. (N=49)

8%

12%

22%

29%

0% 10% 20% 30%

Our charities areout of state

Our donations don'thelp

Our donations aresmall

Don't Know


The chart below shows all of the reasons respondents gave to explain why they do not believe their contributions help the state’s economy and communities. Answers are grouped under categorical headings (shaded in gray).

Insignificant Donations 39% Give to Ministries/Charities 16% Don't know 29%

Our donations are small 21% Give to local charities 4% Our charities are out of state 14%

Doesn't help economy 7% We give to ministries 4% In healthcare industry 4%

Our donations don't help 4% Our giving is for substance 4%

They don't know we exist 4% We sponsor fundraisers 4%

State doesn't want our help 4%


Over one third of the respondents (39%) think businesses in Alabama are only doing a fair or poor job when it comes to community involvement.

6%

33%38%

6%

Poor job Fair job Good job Excellent job

Seventeen percent of respondentseither did not know the answer to this question or refused to answer it.


Perceived Effects of Giving Key Cross-Tabulations

Those who agreed that their charitable giving helps Alabama but did not know why were more likely than those who were able to offer some explanation to be based in metro Birmingham and more likely to only somewhat (as opposed to strongly) agree that their giving helps the state.Participants who did not agree that their business’s giving helps Alabama’s community and economic development were less likely than the overall sample to have increased their donations over the past five years, have over 100 employees and/or be located in the smaller cities (target area 3). Additionally, they were more likely to have given less than $25k in the last fiscal year.Respondents whose businesses have 251+ employees and those who are located in metro Birmingham were more likely to believe Alabama businesses are doing a good/excellent job in terms of charitable giving. On the other hand, those whose businesses are in the other major markets and who give annual contributions less than $25k were more likely to believe that Alabama businesses are doing a poor/fair job.

Charitable Giving Practices


Insight

“We try to get involved in the whole community by helping children’s causes across the country.”

“Our charitable work primarily goes to education. We want to have a more educated pool to draw from in terms of employees.

“To help those that are in most need of it, especially kids’ programs and those who don’t get it from other sources. We give to schools, little leagues, educational and charitable causes.”

“Because of the needs of the community. We can see first hand that a lot of people are hurting. It is crucial that we help provide services for our community’s citizens.”


Respondents were asked (in a yes/no question) whether their business is involved in various charitable programs. The most common programs in which the businesses are involved are community partnerships and employees serving on local boards. (“Yes” answers are shown.)

14%

26%

27%

43%

46%

66%

73%

0% 20% 40% 60% 80%

Company philanthropic foundation

System to measure employee volunteer hours

System for evaluating effectivness of charitable giving

Formal company giving program

Technical/financial assistance in communitydevelopment

Employees serving on city, county, non-profit boards

Community partnerships with non-profit orgs orschools


Respondents were asked whether their business makes certain types of contributions. Those contributions that concern employee incentives are shown on the graph below. Most commonly, respondents said their businesses encourage their employees to volunteer (76%) or offer payroll deduction programs for contributions (62%). (“Yes” answers are shown.)

38%

40%

43%

62%

76%

0% 20% 40% 60% 80%

Program to matchemployee contributions

Employee time off forvolunteer activities

Paying for membership inservice clubs

Payroll deduction programfor contributions

Encouraging employees tovolunteer


Respondents were also asked about certain donation or sponsorship programs. Nearly three-fourths of those surveyed sponsor scholarship or educational programs (73%) and donate cash directly to clubs, community foundations, etc. (70%). (“Yes” answers are shown.)

17%

30%

55%

62%

70%

73%

0% 20% 40% 60% 80%

Donating percentages of sales (cause-relatedmarketing)

Donating company assets

Providing management resources

Donating company products

Donating cash directly to clubs, tax-exempt orgs.,community foundations

Sponsoring scholarship, educ. program


The chart below represents the types of contributions that the fewest number of respondents make. Only 17% participate in cause related marketing. (Graph is continuation from previous slide.)

17%

30%

38%

40%

43%

0% 20% 40% 60% 80%

Donating percentages ofsales (cause-related

marketing)


Program to matchemployee contributions

Employee time off forvolunteer activities

Paying for membership inservice clubs


Key Charitable Giving Practices Cross-Tabulations

Charitable Programs/ActivitiesAs company size increases, so does the likelihood that respondents will have a company philanthropic program, have a formal giving program, offer technical and financial assistance, have employees serving on local boards and have community partnerships with non-profit organizations. Of note, while the larger businesses are more likely to have other philanthropic programs, business size made no difference in terms of which businesses have evaluative systems. However, businesses in the smaller cities (target area 3) are less likely than those in other areas to have a system for evaluating the effectiveness of their charitable giving.



Charitable Programs/Activities

Businesses in the major markets other than Birmingham are more likely to have community partnerships with non-profit organizations.

Rural businesses are more likely to offer technical assistance and less likely to have a company philanthropic foundation.

The following slides illustrate statistically significant differences by business size and geography.


The chart below represents cross-tabulations, by size of company, that revealed statistically significant differences in charitable programs businesses may have. The percentages represent those who said they have the program.

7%

35%

35%

52%

62%

14%

43%

48%

69%

78%

22%

51%

55%

77%

79%

0% 20% 40% 60% 80% 100%

Co. philanthropic found.

Formal co. giving program

Tech/financial assistance

Employees serving onboards

Community partnershipswith non-profits

Less than 100 101-250 251+


The chart below represents cross-tabulations that revealed statistically significant differences in charitable programs businesses may have by target area. The percentages represent those who said they have the program.

15%

32%

43%

67%

16%

28%

43%

80%

19%

19%

44%

73%

9%

26%

54%

71%

0% 20% 40% 60% 80% 100%

Co. philanthropic found.

System for evaluatingeffectiveness of charitable

giving

Tech/financial assistance

Community partnershipswith non-profits




Types of Contributions

In terms of employee incentives, as the number of employees increases, so does the likelihood that businesses will contribute via donating company assets or running payroll deduction programs.

Also, businesses with less than 100 employees are far less likely to donate cash directly, encourage employees to volunteer for community events, sponsor educational programs, run a program to match employee contributions or provide management resources for community organizations.

Clearly, larger businesses are far more likely to be involved in various types of contributions than are smaller businesses.

The target areas differed in terms of likelihood to have various programs or types of contributions. The graphs on the following two slides illustrate statistically significant differences.


The chart below represents cross-tabulations, by size of company, that revealed statistically significant differences in types of contributions businesses may give. The percentages represent those who give in the manner indicated.

20%

38%

63%

62%

45%

65%

30%

63%

74%

78%

63%

81%

39%

65%

74%

79%

78%

81%

0% 20% 40% 60% 80% 100%


Providing managementresources

Donating cash directly

Sponsoring educationalprograms

Payroll deductionprograms

Encouraging employeesto volunteer

Less than 100 101-250 251+


The chart below represents cross-tabulations that revealed statistically significant differences in types of contributions businesses may give by target area. The percentages represent those who give in the manner indicated.

69%

27%

68%

63%

69%

37%

75%

63%

81%

25%

75%

68%

67%

27%

77%

56%

0% 20% 40% 60% 80% 100%


Donating cash directly

Sponsoring educationalprograms

Payroll deductionprograms



Most respondents said their company has never considered a community or private foundation as a means for giving.

65%

35%

No Yes


The vast majority of the respondents give their money to local causes.

4%

4%

10%

82%

0% 20% 40% 60% 80% 100%

State causes

National causes

Evenly

Local causes


Most of the respondents said that their company’s charitable donations have either increased or stayed the same over the past five years.

16%

44%

41%

Decreased Stayed the same Increased


Most respondents believe their charitable donations will stay the same for the next year.

9%

67%

24%

Decrease Stay the same Increase


While 24% of respondents either did not know or did not divulge their annual contributions for the last fiscal year, 36% said their company donates less than $25k, 25% said their company gives $25-$100k and 17% said their company gives over $100k.

36%

25%

17%

<$25k $25-$100k $100k+


Key Charitable Giving Practices Cross Tabulations

Trends in Giving Participants whose businesses have been in Alabama for more than 50 years were more likely than other respondents to say their donations have increased in the past five years. However, a slightly greater percentage of companies who have been in Alabama for more than 50 years also predicted their donations will decrease over the next year. Thus, while more established Alabama businesses have increased their donations over the past five years, this does not necessarily indicate that their donations will continue to increase.Those whose businesses will increase their charitable contributions over the next year were more likely than the overall sample to donate over $100k and more likely to strongly agree that their charitable giving helps the state of Alabama.Businesses with less than 100 employees were less likely to have increased their donations over the past five years, while businesses with 101-250 are more likely to increase their donations over the next year.The most rural businesses (those in target area 4) were slightly more likely to say their donations have decreased in the past five years and will decrease over the next year.


The charts below show the differences in the past and future contributions of companies who have been in their current Alabama location less than 50 years and those who have been in their current location more than 50 years.

Contributions Over Past 5 Years

4%

15%

44%

37%

5%

13%

32%

50%

0% 20% 40% 60%

Refused/DK

Decreased

Stayedsame

Increased

Been at current AL location more than 50 years

Been at current AL location less than 50 years

Contributions Over Next Year

7%

7%

64%

22%

9%

14%

54%

23%

0% 20% 40% 60% 80%

Don'tknow/Refused

Decrease

Stay same

Increase

Been at current AL location more than 50 years

Been at current AL location less than 50 years


The charts below show the differences in the past and future contributions of companies based on the number of employees.

Contributions Over Past 5 Years

5%

18%

46%

32%

4%

14%

38%

45%

6%

13%

42%

39%

0% 20% 40% 60%

Refused/DK

Decreased

Stayedsame

Increased

<100 101-250 251+

Contributions Over Next Year

6%

8%

66%

19%

8%

5%

57%

30%

11%

10%

62%

18%

0% 20% 40% 60% 80%

Don'tknow/Refused

Decrease

Stay same

Increase

<100 101-250 251+


Key Charitable Giving Practices Cross Tabulations

Trends in Giving

Businesses that donated less than $25k in the last fiscal year were more likely to be an independent firm with one location and more likely to be in the healthcare industry. (Note: Industry comparisons were made only among industries with at least 15 representative respondents: healthcare, financial services, manufacturing, retail, service and utility.)

On the other hand, those businesses who donated over $25k were more likely to be in metro Birmingham, have seen their donations increase over the past five years and strongly agree that their giving helps the state.

Furthermore, as donations for the last fiscal year increased, so did the number of employees the company has. Additionally, those who donated over $100k in the last fiscal year were more likely to be a part of the financial services industry.

Demographics


Company Demographics

Years Business in Operation Years Business at Current AL Location # of Employees

1-10 Years 16% 1-10 Years 27% 1-20 Employees 6%




41-50 Years 10% 41-50 Years 6% 501+ Employees 16%

51+ Years 29% 51+ Years 15%

Last Fiscal Year's Gross Revenue Corporate Structure Headquarters (Only among those with

headquarters elsewhere)

Under $1 Million 2% Independent Firm/One Location 26% In same county 5%

$1-$4 Million 8% Headquarters/Mult. Locations 36% Elsewhere in AL 14%

$5-$14 Million 11% Branch of Firm 38% Elsewhere in US 71%

$15-$24 Million 8% Outside US 8%

$25-$49 Million 8% RF 4%

$50-$100 Million 6%

$100 Million+ 12%

Refused 17%

DK 28%


Company Demographics (continued)

Annual Contributions Industry Category

Under $25K 36% Healthcare 8%

$25-$50K 18% Financial Services 4%

$50-$100K 7% Manufacturing 36%

$100-$500K 8% Retail 12%

$500-$1 Million 4% Service 21%

$1 Million+ 5% Utility 4%

RF 9% Construction 3%

DK 15% Other 13%

Target Area Charitable Decisions Made

Target Area 1 29% At This Location 49%

Target Area 2 31% At Headquarters 8%

Target Area 3 16% Both 40%

Target Area 4 25% Refused 4%

Cross Tabulations by Business Size


Key Findings

Businesses with less than 100 employees were less likely to say:

Their donations help the state of Alabama with community and economic development.

Investing in the community and the interests of their employees are strong factors in their charitable giving decisions.

Business peers and community residents are encouraging in terms of charitable giving.

They participate in various charitable giving programs.

They have increased their donations over the past five years.

Businesses with less than 100 employees were more likely to say their charitable giving decisions are strongly influenced by the personal values of the owner and the owner’s family and that they find their customers encouraging in terms of charitable giving.


Key Findings

Businesses with 101-250 employees:

Were less likely to say an increased opportunity for economic development is a strong factor in their charitable giving decisions.

Were more likely to predict increased donations in the next year.


Key Findings

Businesses with 251+ employees were more likely to:Have various charitable giving programs (with the exception of evaluative systems).Have donated greater sums in the last fiscal year.Say public recognition for charitable giving is important.Say enhanced quality of life for the community and for employees, business citizenship and increasing opportunities for economic development are strong factors in their charitable giving decisions.Say designated committees have significant input in their charitable giving decisions.Agree that their contributions help the state of Alabama with community and economic development.Agree that Alabama businesses are doing a good/excellent job in terms of charitable giving.

Cross Tabulations by Target Area


Key Findings

There were few important distinctions in terms of target area. Target area 4 (rural

Alabama) was the most unique geographical area, in that rural Alabama

businesses were more likely to take personal responsibility for the welfare of their

communities. Rural Alabama businesses were more likely to:

Say enhanced quality of life is a strong factor in their charitable giving decisions.

Say the owner’s family has significant input in charitable giving decisions.

Find community residents encouraging in terms of charitable giving.

Offer technical assistance to the community.

Have decreased their donations over the past five years and predict decreases for the next year (these were slightly greater percentages than in other areas).

Documents

Alabama Giving Survey Results