Community Investment Budget & Spending Trends
Highlights from LBG Canada Benchmarking
Jul 6, 2010 10:00 AM ET
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%)
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Greater internal appreciation of the value of community investment (11%)
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New programs and special grants (11%)
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Increased customer requests (11%)
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Proceeds from product sales to support community programs (11%)
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Marketing & Sponsorship (35%)
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Community Relations (40%)
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Regional Offices (25%)
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Health/Safety/Environment (15%)
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Human Resources (15%)
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Operations (15%)
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Executive Office (10%)