| 11 Giving |  |
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A. FORMS OF CORPORATE GIVINGˇ@ CORPORATE GRANTS ˇ@ |
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| l One time contributions | Donations given to support specific programmes, events or projects. |
| l Annual renewable support | Funds that are provided on a yearly basis, often to support operating costs. With this type of support, a company usually plans for a long-term relationship with particular charitable organization. |
| l Pledges | A commitment to provide a set amount of funds for a specific number of years. Large projects are often funded in this manner. |
| l Loans | Low interest or interest-free loans offered by companies to charitable organizations.Loans allow companies to recycle their community investment dollars. |
| l Endowments | Large sums of money given to a charitable organization, often with a specific purpose. The charity uses the interest or earnings for the purpose outlined in the agreement. |
| ˇ@ EMPLOYEE-BASED GIVING |
| l Payroll Donations |
Companies facilitate employee donations through incorporation of a payroll deduction system. |
| l Matching Gifts |
Employee cash donations to charitable organizations trigger a matching financial gift from the company to the same organizations. |
| l Dollars for Doers | When an employee performs volunteer work for a charitable organization, the work triggers a specific cash donation from the company to the organization. |
| l Corporate Fundraising Campaign | The company encourages employees to organize and run a fundraising campaign for a pre-selected charitable organization or cause. |
| l Corporate Donations Committee | A staff committee with an annual budget is set up by the company to handle the donations to charitable organizations that fit within the companyˇ¦s donation criteria. |
| ˇ@ MARKETING RELATED DONATIONS |
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| l Sponsorship |
Sponsorship often involves the companyˇ¦s marketing and /or public relations staff working to maximize the companyˇ¦s benefits through advertising and special promotions. |
| l Cause related marketing |
The companyˇ¦s donations are linked to the sale of a specific product or service. It gives company an opportunity to create broad public recognition for its support of a cause. |
| l Event marketing |
A public event is organized either by the charity or the company. People are encouraged to participate, and a portion of the net proceeds is donated to a pre-identified cause. |
| l Affinity campaigns |
Similar to cause related marketing but usually longer in term. For example, donation of a percentage of the value of the purchases made on a credit card. |
| ˇ@ NON-CASH CONTRIBUTIONS |
| l Gifts-in-kind |
May include products or services normally sold by the business, supplies a business buys as part of its operations, the use of company facilities, used equipment no longer needed by the company, etc. |
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B. ESTABLISHING A CORPORATE FOUNDATION*ˇ@ BENEFITS OF ESTABLISHING A CORPORATE FOUNDATION ˇ@ |
| l Higher profile |
Signals a higher degree of corporate commitment to community investment. |
| l Clear identity |
Provides a clear, consistent identity for the source of the donations. |
| l Arms-length management |
Provides an arms-length organization to manage the community programme, thus creating a buffer between the companyˇ¦s executives and its charitable activities. |
| l Financial management |
Provides a vehicle through which the company can funnel its community investment budget each year or smooth the level of giving during lean periods of the business cycle. |
| *HKCSS will provide legal and management consultancy services to corporations. |
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