Community Investment Budget & Spending Trends

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Community Investment Budget & Spending Trends

Highlights from LBG Canada Benchmarking
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Summary

This is a highlight from the LBG Canada Annual Community Investment Benchmarking Report 2010.  The report presents essential management information for companies seeking to maximize their corporate community investments and employee volunteering programs.  Exerpts from the public report will be distributed over the coming months in order to profile key trends in Canada today. 

To view the Executive Summary of the report, please visit www.lbg-canada.ca.

For a copy of the Public Summary Report, please contact info@lbg-canada.ca

Tuesday, July 6, 2010 - 9:00am

85% of LBG CANADA COMPANIES STATED THAT THEIR BUDGETS INCREASED OR STAYED THE SAME IN 2010 

Despite the economic turmoil experienced in 2009, only 10% of LBG Canada companies will experience a budget decrease in 2010. Fifty percent (50%) of companies stated that their community investment (CI) budgets will remain unchanged, while 35% stated that their investments would increase.
 
The fact that the total amount was either maintained or enhanced during a difficult economic period meant that average spending as a percentage of pre-tax profit increased from 0.06% in 2008 to 1.12% in 2009.
 
The reasons for a reported increase included:
  • Increased profits (56%)

  • Greater internal appreciation of the value of community investment (11%)

  • New programs and special grants (11%)

  • Increased customer requests (11%)

  • Proceeds from product sales to support community programs (11%)

Of the companies that reported a decrease in their CI budget, reasons given included the weakening economy and a reduction on number of thematic areas, therefore more focused giving.  
 
65% OF COMPANIES DISCOVERED PROJECTS WITH COMMUNITY BENEFIT IN OTHER DEPARTMENTS 

 
All LBG Canada companies agree to uphold a common definition of community investment, which both enables peer-to-peer performance measurement and ensures that expectations to create community benefit are matched with each company’s need to measure performance. The line-by-line review of each company’s portfolio through the benchmarking process ensures that key definitions are all upheld and applied consistently.
 
At the same time, LBG Canada companies often discover investments from departments outside of community investment that also created community benefit, albeit not every one of these investments can be valued at 100%.
 
In 2009, 65% of LBG Canada companies discovered investments that generated community benefit housed in other departments. This was up from 45% in 2008.
 
Examples of business units/department making investments that generate community benefit:
  • Marketing & Sponsorship (35%)

  • Community Relations (40%)

  • Regional Offices (25%)

  • Health/Safety/Environment (15%)

  • Human Resources (15%)

  • Operations (15%)

  • Executive Office (10%)

To view the Executive Summary of the report, please visit www.lbg-canada.ca.
For a copy of the Public Summary Report, please contact info@lbg-canada.ca.
 
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Keywords: Community Investment | LBG Canada | Management | budgets | spending

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