Companies invest in communities despite uncertain economy

A majority (85%) of Canadian companies have maintained or even increased their community investment budgets despite the uncertain economic climate of the past five years, finds The Conference Board of Canada.

“The community investment sector in Canada appears to be largely recession-proof,” says Michael Bassett, Senior Research Associate. “Corporate values and tradition, as well as reputation management, appear to be the main drivers of community investment programs.”

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One-third (39%) of respondents say their budgets have increased compared to the previous year, and 47% say they’ve stayed the same. Only 14% say budgets have declined.

Additional findings include:

• 50% report an upward trend in their community investment budgets;
• 34% say their community investments have remained constant in nominal dollars;
• The 180 companies who completed this survey contributed just over $710 million to communities in 2011;
• 69% say their president and CEO was either very involved or extremely involved in the community investment program;
• 38% report their company has a signature community investment program, which focuses on an issue the company feels it can align itself;
• 77% of companies contributed funds to civic and community organizations; two-thirds contributed to healthcare organizations.

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“The report suggests that matching gift programs represent untapped potential,” says Mike Meadows, director, corporate engagement and membership of Imagine Canada. “Companies, employees and charities themselves should explore new ways of communicating these opportunities.”

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.