Economic Factors in the Growth of Corporate Giving

Economic Factors in the Growth of Corporate Giving

RALPH L. NELSON
Copyright Date: 1970
Published by: Russell Sage Foundation
Pages: 220
https://www.jstor.org/stable/10.7758/9781610446747
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  • Book Info
    Economic Factors in the Growth of Corporate Giving
    Book Description:

    Examines the dramatic changes in the philanthropic behavior of business corporations in their support of education, health, welfare, and the arts. This analysis shows how traditional patterns of corporate philanthropy have undergone changes across the years, and how, presently, a favorable attitude exists toward giving. The author traces these shifts through periods of depression, war, and peace. He examines economic and non-economic reasons for the growth of corporate giving, and treats the innovative role of company-sponsored foundations.

    eISBN: 978-1-61044-674-7
    Subjects: Business, Sociology

Table of Contents

  1. Front Matter
    (pp. i-xii)
  2. Table of Contents
    (pp. xiii-xx)
  3. ONE Introduction and Summary
    (pp. 1-12)

    In 1964, business corporations in the United States reported $729 million in gifts and contributions on their income tax returns. In that year the gross national product was $629 billion. This meant that, of every $1,000 spent by all purchasers of goods and services in the country, $1.16 was used to support the recipients of corporate philanthropy. These recipients, in turn, used these contributions to provide society with health and welfare services totaling about $320 million, educational services totaling about $280 million, civic and cultural services totaling about $40 million, and other philanthropic services totaling about $90 million.

    The growth...

  4. TWO The Focus and Growth of Corporation Giving
    (pp. 13-36)

    Corporation giving accounts for a relatively small share of total private giving. In 1962 it amounted to a little less than one-twentieth of the total (Table 3). Part of the reason for this is that about three-fifths of total contributions are to religious institutions, and this represents the contributions of individuals and families almost exclusively.

    If one excludes gifts to religious institutions, the share of corporations is doubled to about 9 per cent (Table 4). There is some justification for excluding religion from the total. Though voluntary in the United States, most of religious giving may be regarded as the...

  5. THREE Economic Analysis of Corporate Giving
    (pp. 37-74)

    The rapid growth of corporate giving from the late 1930’s to the early 1960’s was accompanied by other significant economic changes. The period saw considerable growth in corporate revenues and profits and a decline in the after-tax cost or “price” of a dollar in contributions. It was also marked by related changes in corporate attitudes about the legality, appropriateness, and desirability of giving. It is the purpose of this chapter to measure, if possible, the separate contributions of each of these developments to the observed growth.

    In the technical language of economics the effect of the level of corporation activity...

  6. FOUR Company-Sponsored Foundations
    (pp. 75-88)

    In recent years, particularly since 1950, many corporations have channeled their contributions through philanthropic foundations. It is the purpose of this chapter to measure the importance of company-sponsored foundations in total corporate giving, and to determine the degree to which the use of these foundations may have altered the patterns previously observed in the tax return data.

    Tax return data on contributions are not classified by type of recipient, and so there is no way to measure precisely the amount channeled through company-sponsored foundations, or of identifying its growth over the period. Other data, available only since 1956, indicate that...

  7. Appendix A Basic Tables on Gross National Product and Corporate Contributions, Income and Tax Rates, 1936–1964
    (pp. 91-97)
  8. Appendix B Illustrative Computation of Net After-Tax Cost of Corporate Contributions
    (pp. 98-100)
  9. Appendix C Regression Coefficients Relating Corporation Giving to Successively Larger Numbers of Explanatory Variables, Based on Time-Series Data (Data, logarithmically transformed, are for the period 1936–1963; T-ratios given in parentheses)
    (pp. 101-105)
  10. Appendix D APPENDIX TABLE XIV Matrix of Simple Correlation Coefficients for Regression Equations Based on Cross-Sectional Data, Presented in Text Table 14
    (pp. 106-106)
  11. Appendix E Comparison of Nelson and Schwartz Analyses of the Determinants of the Growth in Corporate Giving
    (pp. 107-110)
  12. Appendix F APPENDIX TABLE XVI The Contributions Dollar
    (pp. 111-114)
  13. INDEX
    (pp. 115-116)