India is a Favorite Destination for Global Corporate Giving


India topped the list of countries where most corporate giving went from international businesses in 2012, according to a recent report by the Committee Encouraging Corporate Philanthropy (CECP). Among 60 large multinational companies that gave a total of $6.8 billion, nearly 70 percent earmarked a share of   their corporate giving to India.

The study, authored by CECP’s Carmen Perez found that most large businesses chose to invest their  funds in geographical neighbors and emerging markets. The study  tracked giving according to three categories, namely direct cash, foundation cash and in-kind contributions.  Total giving per company ranged from $450,000 to about $1.5 billion. The median total giving was $29.25 million.

Below are key points from the study that show trends in global corporate giving :

  1. Global corporate giving remains unevenly distributed. Some companies elected to give large contributions to a select few countries while the others received much less.
  2. A company’s strategic business needs dictate corporate giving, especially among multinationals investing in emerging markets.
  3. Corporate interests govern giving and funds typically flow into neighboring countries or to emerging markets.
  4. Emerging markets namely India, Brazil, China, Colombia, Indonesia, Malaysia and Mexico received larger charitable contributions in 2012, driven largely by robust economic growth.
  5. Businesses gave less in countries like Turkey and Venezuela citing instability and political turmoil.
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Building effective relationships matters


On either side of the Atlantic, the wisdom you get to build relationships with your donors is interesting to learn. This came  true when  Professor Ian Bruce, President, Center for Charity Effectiveness at London’s Cass Business School talked about the theory and practice of building effective relationships.

According to Prof. Bruce, successful relationship building has four components: establishing relationships, strengthening relationships, customer appreciation and relationship strategies. In American terms,  this  means relationship building, stewardship and ongoing donor communications.

You scan your environment to seek out the most influential people interested in your cause. Engage them well, pay close attention to their needs and consider them the most important people in your network. Prof. Bruce advises that you must be ready to talk about the negative things that are  happening at your organization and how you are trying to fix them. What are the pillars that need to be strengthened?

Often, most of us forget the common sense initiatives we need to take to build relationships. This includes reliability (deliver what you promised), responsiveness (give prompt service always), assurance (convey trust and confidence), empathy (a caring attitude), and  always make sure  that you provide the best tangible experience of your assets.

Sometimes, giving up top spots allotted to your  CEO or leadership to high value customers will help strengthen relationships. According to Prof. Bruce, this will help you build financial and social bonding with your high value customer.

His highly acclaimed book “Charity Marketing: Delivering Income, Campaigns and Services,” elaborates on the theory and practice of building effective nonprofit marketing strategies.

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