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W W W. M A I N E B I Z . B I Z 9 G I V I N G G U I D E 2 0 1 8 – 2 0 1 9 B Y A L Y S S A L O D E W I C K H OW TO A ccording to the latest "Giving USA" report, charitable giving in the United States totaled $410 billion in 2017, surpassing the $400 billion mark for the fi rst time ever. While it is true that corporate contri- butions constituted only 5% of all chari- table giving, the importance of corporate philanthropy should not be underesti- mated — in part because it has been on an upward trajectory. Between 2016 and 2017, corporate giving increased by 8%, outpacing growth in giving by individu- als, foundations and bequests. In a competitive nonprofi t land- scape, corporations can take steps to maximize their giving by considering the following best practices. Shift mindsets: In "Increasing Impact, Enhancing Value: A Practitioner's Guide to Leading Corporate Philanthropy," the Council on Foundations encourages corpora- tions to stop viewing philanthropy as charity. A better framework is to think of it as "an investment in society" that can "contribute to break-through col- laborations and innovations that address complex social challenges." Think strategically: "Feel-good" philanthropy — making charitable donations in response to emotional reactions, heartfelt appeals and immediate needs — can encourage positive feelings and bolster goodwill. But businesses that want their corpo- rate giving programs to be more than public relations campaigns need to proactively consider "both where they focus their philanthropy and how they go about their giving," according to consulting fi rm FSG, citing a 2002 Harvard Business Review article, " e Competitive Advantage of Corporate Philanthropy." By engaging in corpo- rate philanthropy that is truly strategic, companies have the power to "improve their competitive contexts and the communities in which they operate." FSG's "Simplifying Strategy" toolkit can help businesses refi ne grant making and social engagement. Align corporate and philanthropic goals: In a report for the Conference Board, "Making the Business Case for Corporate Philanthropy", Baruch Lev, Christine Petrovits, and Suresh Radhakrishnan argue that the most eff ective corporate giving initiatives "use the company's unique resources to address a social problem aff ecting the company's competitive context." In other words, there should be a con- nection between a company's busi- ness activities and its philanthropic activities. Per the authors' example, a publishing company might maximize its philanthropic impact by contributing not only its money, but also its unique resources and knowledge, to initiatives that combat illiteracy. Consider collaboration: Society's biggest problems are far too large for any single organization to tackle alone, as the above-referenced Council on Foundations report attests. By work- ing with partners — including non- profi ts, foundations, regional grantmak- ing associations, government agencies, and other businesses — corporations can take advantage of the multiplier eff ect. Diff erent types of organiza- tions possess diff erent strengths and competencies. When these diverse skillsets are strategically harnessed and leveraged, corporations and their col- laborators have a better shot at moving the needle on complex issues. Develop multiple channels for generosity and promote participation: Based upon its work with corporations, fundraising consulting fi rm FrontStream has put together a list of "Best Practices for Corporate Giving." One of the most eff ective things a business can do to maximize its philanthropic impact is to build out a "comprehensive approach to corporate giving," through which "corporate donations, employee giving, corporate gift matching, and employee volunteer initiatives can be tied together in a way th at achieves results greater than the sum of the parts." It is impor- tant for companies to engage people at all levels of the organization, because the success of corporate giving programs depends upon employee involvement. Like all other corporate endeavors, philanthropy should be subject to evalua- tion, analysis and processes of continuous improvement. By devoting resources and time to assessing the eff ectiveness of their philanthropic initiatives, companies can maximize their philanthropic impact. A L is program and communications director for Maine Philanthropy Center. She can be reached at @ .org or 207-228-8289 Use best practices to maximize philanthropic impact SP ONSORED BY Ellen Belknap: Principal & President of SMRT Aaron Moser: CEO of Thos. Moser MODERATED BY: Don Gooding: Chief Content Officer at Four Colors of Money for Entrepreneurs Anthony Shurman: CEO of Wymans Steve Smith: CEO of LL Bean Nancy Strojny: Chair of the Portland Chapter of SCORE PA N E L I S T S Family Wealth Management Partners UBS Financial Services Inc. W W W. M A I N E B I Z . B I Z / C E O F O R U M DoubleTree by Hilton Hotel, South Portland Ticket includes breakfast October 11 7:30–10:30am 60 Ideas in 60 Minutes The Mainebiz CEO Breakfast Forum will bring together a panel of Maine CEOs to share their personal stories of success and learning experiences. YOU 'R E IN VITED! Six Maine CEOs will share 10 ideas on their keys to success in business and in life. The discussion will cover everything from how to successfully run a business, to effective ways to motivate and manage people. FOLLOW US @MBEVENTS #MBCEO18 T H I S Y E A R ' S T O P I C

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