11.20.08

Economy Affecting Businesses’ Charitable Donations

Posted in Uncategorized at 5:33 pm by nadia

SHRM Home > HR News
11/14/08 11:00 AM

By Kathy Gurchiek

U.S. charities looking under the Christmas tree likely will be disappointed in 2008, as they can expect to see a drop in donations from businesses as well as individuals.

Charity Navigator, which evaluates the financial health of more than 5,300 of the nation’s 1 million-plus charities, sees leaner philanthropic giving now and into 2009.

“It’s already happening as we speak that there are a variety of [donors] that are already cutting back, and at the same time the demand for services,” such as food banks and utility assistance, “are already beginning to rise. And we expect it to continue into next year,” Charity Navigator president and CEO Ken Berger told SHRM Online.

Giving can take a variety of forms, such as donations of tangible goods, but “we’re certainly talking money, first and foremost,” he said.

One-third to one-half of all charitable giving occurs between Thanksgiving and the end of the year, according to Berger, whose nonprofit group also relies on charitable donations.

His organization focuses on the “top tier” of charities, which he defined as groups with annual revenues of more than $1 million.

“We’re looking at the biggest charities and we’re looking at the charities that get at least a third or more of their money from private contributions. We’re looking at the charities [that] get a lot of money from the individual donors.”

Those are donors whose charitable deductions are indicated on an individual tax return; corporate giving, regardless of the organization’s size, also is based on cash and in-kind donations indicated on corporate tax returns, Berger explained.

In 2007, U.S. corporations, individuals and foundations donated $306 billion to charity. Of that $306 billion, nearly three-fourths (74.8 percent) came from individual contributions.

A variety of major economic indicators—tight credit, increased unemployment, falling wages, declines in the stock market, increased foreclosures, weak consumer spending, reduced consumer confidence—apply equally to employers and individuals, Berger said.

Other factors include the California fires and rising gas prices in the spring of 2008, according to a transcript of a roundtable discussion that Charity Navigator held with eight charities from around the nation.

Although some charities participating in the discussion reported a consistent, or increased, level of giving, “We’re hearing from charities from all over the country that the giving is down and the demand is up,” Berger noted in a video on Charity Navigator’s web site.

Giving from Small Business Impacted

Small businesses “are very engaged in charitable giving,” according to The Chronicle of Philanthropy, which reports on the nonprofit world. However, a weak economy has started to impact their giving, it found.

Sixty percent of 1,033 U.S. small business owners—those with annual revenues of $100,000 to $250,000—say the economy is having an effect, according to an August 2008 survey conducted for The Chronicle and Advanta Bank Corp., an issuer of credit cards to small businesses.

The Chronicle defines small business as those with fewer than 500 employees, and in most cases fewer than 20. There are 27 million small businesses in the United States, and they employ about half of the nation’s workers, according to The Chronicle.

While the median cash contribution from small businesses in 2007 was $500 to $2,000, just under half (47 percent) gave the same amount in 2008, 38 percent gave less and 14 percent gave more.

Some small business leaders (43 percent) say their organization is not doing enough charitable giving; they point to a lack of money, organization and time as the top three reasons they haven’t contributed more, The Chronicle reported.

Oftentimes, “they don’t have the infrastructure to support [charitable giving],” Chronicle editor Stacy Palmer told SHRM Online, including people who are professionals at thinking about philanthropy.

Many also lack the time to devote to developing relationships with charities or think about the best way to support a charitable cause, and may not know about organizations such as Charity Navigator that can be used for vetting charities, she said.

“Most of them don’t know what’s available.”

When small business owners do give, social service charities receive the largest amount of support (62 percent), followed by educational groups (55 percent), health-related charities (44 percent), arts institutions (28 percent) and environmental causes (27 percent).

Giving is not necessarily seen as having an influence on the success of their business, and most of those surveyed don’t have a plan for making charitable contributions, although young entrepreneurs are starting to incorporate philanthropy into their business plans, The Chronicle found. Business owners who align their charitable donations with their business tended to have businesses younger than five years old.

“It’s a very Gen Y feeling,” Palmer said. “They’re very interested in social causes … so when they start a business they think of working with a charity as a natural thing they would do,” she said. “I think young people have a much more integrated view.”

Among small business owners who give through their company, 66 percent donate cash, 51 percent volunteer, 41 percent give services and 39 percent contribute products.

Cause-related marketing, which aligns the sale of a product with a charitable cause publicly, is becoming a common method among businesses, he said. He pointed to businesses that partner with the Susan G. Komen breast cancer foundation as one example.

“Now we’re seeing millions and millions of dollars raised in that fashion,” he said. “We anticipate more of that.”

Among the nation’s largest businesses, some will increase their giving in 2008, but monetary donations from this group are expected to be flat or smaller.

That’s according to another Chronicle survey that collected data from some of the nation’s largest businesses as ranked based on those businesses’ annual revenue by Fortune magazine. Among 77 of those businesses that projected their 2008 giving level, 50 said their level would remain constant with 2007, 21 were increasing their donation level and six were dropping their level of donation, The Chronicle reported.

Tapping Employee Interest

The number of the nation’s largest companies that pair employees’ professional skills with charities’ needs continues to grow, The Chronicle found.

Palmer advises organizations to find ways employees can become involved with a charitable cause. Some businesses The Chronicle surveyed are giving employees more paid time off to volunteer, promoting volunteer opportunities on their internal web sites, and offering non-cash assistance to counterbalance a monetary cutback in cash donations.

“Employees really love getting engaged” beyond contributing to a United Way drive, she said, noting that it’s important for organizations to recognize the value employees place on giving back.

“Employees want that chance to get involved. The employees love the connection to the charitable cause, especially at a time when there’s not a lot of extra cash around,” she said.

Find an organized activity that taps into that value, Palmer advised. The skills used could serve as a development tool, she added.

“You need to keep people tied to your company and this charitable giving is terribly important to them,” she said. “They want a hands-on experience to help a charity.”

Battalia Winston’s Annual Survey on Corporate Holiday Celebrations found in its 2008 survey that 74 percent of 108 of the country’s leading businesses plan to participate in charity efforts even though many plan to cancel holiday parties and expect a drop in year-end bonuses. Those efforts include donating money, food, clothing and gifts, and volunteer efforts.

“We’re seeing more and more creative ways to try to find ways to give,” Charity Navigator’s Berger said. “Those kinds of volunteer efforts and innovative things that people do—I suspect there will definitely be more of those attempts” to give back.

Savvy Giving

“All charities are suffering in this economy, and they do need help,” Berger said.

His recommendations for savvy giving can apply to individuals and businesses, he said:

    • Look for charities that use at least 75 percent of every $1 donated toward the cause they purport to support, with no more than 25 percent for administrative and fund-raising costs.

    • Consider supporting a charitable organization through consumer spending. Some organizations sell gift cards, toys and other products as ways to raise funds.

    • Look for charities where the CEO is reasonably compensated; he noted that an average annual salary of $150,000 “is not unreasonable.”

    • Donating online reduces a charity’s processing expenses.

He urges employers to contribute to groups providing human services programs such as food banks, utility assistance and job training.

“When there are layoffs,” Berger said, “these are the places people would go for support.”

11.10.08

Saudi Arabia gives Morocco $100 mln in flood relief

Posted in Uncategorized at 5:35 pm by nadia

Tue 4 Nov 2008, 17:44 GMT
[-] Text [+]

RABAT, Nov 4 (Reuters) – Saudi Arabia has given Morocco $100 million in flood relief after flash floods made thousands of people homeless, Moroccan officials said on Tuesday.

In October, floods caused by the most rainfall in 35 years killed 28 people and left thousands homeless, the interior ministry said.

(Reporting by Lamine Ghanmi; Editing by Catherine Bosley)

www.reuters.com

Saudi Arabia Gives $100 Million Toward New Morocco Disasters Fund

Posted in Uncategorized at 5:34 pm by nadia

11-4-08 11:13 AM EST RABAT, Morocco (AFP)–

Saudi Arabia has given Morocco$100 million towards a new fund to counter the effects of natural disasters, an official source said Tuesday in Rabat. In heavy storms and flooding at the end of last month, 28 Moroccans were killed and 200 houses destroyed in various parts of the country. Two industrial zones were flooded in the port of Tangiers. The gift from Saudi King Abdallah was aimed at “attenuating the effects of the bad weather in Morocco,” the source said. Morocco’s King Mohammed VI has thanked the Saudi monarch and has decided on ” the creation of a special fund to combat the effects of natural catastrophes,” the official MAP news agency said. Besides the Saudi gift, the fund will be financed by 1.1 billion dirhams ($128 million) from the Moroccan public. The money will be spent on rescue operations and aid to victims

11.04.08

A rural weaver gains business skills and market exposure

Posted in Uncategorized at 4:32 pm by nadia

Abdelati Nejar was born in 1959 in Tamslouht, Morocco, a small town near Marrakech, known for its pottery and textiles. He became a weaver’s apprentice at age seven. At age 21, he began selling his weavings wholesale to bazaars in Marrakech. However, as tourist traffic to Marrakech slowed, shops began placing more emphasis on price rather than quality. The fierce price competition of the 1990’s drove Abdelati out of the market, and he lost the majority of his sales outlets.

His prospects took a turn for the better when he learned of a USAID program to aid artisans. Through the program, he participated in three Nomadic Craft Caravan events that exposed him to larger markets and helped expand his business.

At the events, rural artisans showcase their work to potential buyers. Select artisans also participate in valuable on-site training sessions covering a range of topics designed to help their business grow, including product display, sales techniques, product development, costing and pricing, and future planning. Abdelati’s revenue from the three fairs totaled $1,385 — four times more than his average monthly sales.

Abdelati’s superior quality and leadership skills were immediately apparent during the Caravan events, and USAID offered to help him prepare for the international export market. As a result, Abdelati’s weavings made their U.S. debut at the New York International Gift Fair in August 2005. Abdelati’s orders totaled $1,705. He filled and shipped the New York orders within two months, and then went straight back to work — to develop his spring collection for the next New York fair.

Abdelati has big plans for his weavings and the export market. He intends to expand his production line by hiring other local weavers in Tamslouht. He also plans to hire someone to handle international orders through the internet. With the experience and exposure he received through USAID, Abdelati is now well on his way to fulfilling his dream of becoming an international exporter.

http://www.usaid.gov/stories/morocco/ss_mc_weaver.html

Business-savvy coop transforms women’s lives and livelihood

Posted in Uncategorized at 4:31 pm by nadia

Known as Morocco’s liquid gold, argan oil is a prized commodity for Berber tribes. Increasingly coveted by Parisian chefs, the aromatic oil is used as a seasoning and is said to have medicinal properties. The oil is extracted from the almond-shaped seed kernel of the argan, a fruit that resembles a peach, through an arduous process involving intense manual labor. The people of Tazarine live from the sale of argan oil, traditionally harvested by Berber women. In 2002, USAID helped a group of women establish a cooperative that changed their lives. USAID first provided financing to help the coop build a facility and purchase modern machinery for oil extraction. USAID then saw an opportunity to use the oil as a magnet for tourists in Morocco’s southern region. But there was much to be done if the cooperative wanted to entice tourists. First, the oil was packaged in used water bottles. Second, the coop was virtually invisible from the road. Third, prospective buyers had little information about the product. USAID first helped to diversify the produce line and purchase attractive, cost-effective containers for different oils. Then, USAID installed a sign directing passers-by to the coop along the main road. The coop’s location in the highly-visited Agadir region made it an ideal tourist spot. Finally, the coop built a large display explaining the extraction process and daily life in the coop. An area map informs visitors about nearby attractions. Their argan oil now commands a higher selling price and a larger clientele. With more business and with new bottles and labels, the coop now sells one liter of culinary oil for $43, up from $18. The cosmetic oil, a brand new product, sells for $65 per liter. The coop’s success has empowered its 44 members, giving them confidence to plan for the future. “With the coop, I feel my life is full,” said its president Aïcha Boumhati. “I feel it’s given me some direction.”

http://www.usaid.gov/stories/morocco/ss_mc_coop.html

A literacy class helps a woman become an entrepreneur

Posted in Uncategorized at 4:29 pm by nadia

Rachida was born in 1973 in a rural Moroccan village. She is married and has four children. Her husband is a seasonal agricultural worker who earns about $75 per month when he works. She once described her life as a tapestry woven from dashed expectations and frustrations, but also hope.

Her optimism was well founded. When USAID offered a literacy class in her village, Ain Jdid, she immediately recognized that a world of opportunity was suddenly within her grasp. The class signaled a new beginning for Rachida — if she took classes, she would be able to read and write, add and subtract, and acquire skills that were always reserved for others. When she first learned how to write her name on a slate, and then on paper, she was overjoyed. Although Rachida and her classmates endured taunts from some villagers as they walked to school each day, they ignored them and found pride in their accomplishments.

The course went a step beyond providing basic literacy training to the women of Ain Jdid. Those who performed the best on the final exam were also offered support in starting a business — a farm animal cooperative. Armed with their newly acquired numeracy and literacy skills, and with technical assistance from USAID, they started a successful business. Their example gave rural women a new image – that of independent female entrepreneurs who could manage their own businesses and daily affairs. They were no longer mere field workers.

Rachida now purchases and sells farm animals through the coop and earns enough income to support her family. More importantly, she can share the joy of learning with her school-aged children and help them with their homework.

As a testament to the program’s success, now even some of the men in the village who had taunted Rachida and her classmates want to attend literacy classes.

Rachida is confident about the future. She says her new skills have given her more than just an income. “Through this program, we women have paved the way to a new life,” she said.

http://www.usaid.gov/stories/morocco/fp_mc_literacy.html

Dormitories help rural girls get access to middle school education

Posted in Uncategorized at 4:28 pm by nadia

Since she had no family living near the closest middle school and high schools to her home, Souad was afraid she would be unable to finish her education. The schools were located dozens of miles away from her home, and she had no way to get there each day. In addition, her family could scarcely afford the school fees she would have to pay.

When Souad learned about a boarding program in Tighassaline, central Morocco, supported by USAID and run by a local group, the Rural Girls Scholarship Committee, she jumped at the chance to continue learning. The organization runs a dormitory for academically gifted middle school girls who cannot afford to continue studying. It provides scholarships for boarding, lodging, academic support, and a small grant to cover books and fees. Souad applied, was accepted, and was able not only to complete middle school, but to continue on to high school.

When Souad finished middle school, the organization’s director invited her to continue living in the dormitory so that she could complete her high school education. In return, he asked her to tutor the younger girls and help them with their homework. Souad was grateful — her family would never have been able to afford other boarding alternatives.

“I feel that I have been given a wonderful opportunity, and I know that opportunities in life don’t come twice. I have succeeded in middle school and I don’t want to lead the same life as my mother. I know that education has changed my life. My interests are different from those of my sisters and I have learned to make my own decisions and judgments.”

With tears in her eyes, Souad thanked USAID and its partners for having given her the opportunity to complete her secondary education. “I want you to be proud of me,” she said. “And I want to do something for girls and women later on.”

In July 2005, Tighassaline proudly graduated the first cohort of scholarship students who completed three years of middle school. USAID’s assistance is helping to increase the number of girls benefiting from scholarships, fill the dorm to capacity, and help more girls like Souad finish their schooling.

http://www.usaid.gov/stories/morocco/fp_mc_scholarship.html

Pilot projects support water conservation by drastically reducing soil erosion and pollution

Posted in Uncategorized at 4:27 pm by nadia

Pollution and destructive agricultural practices threaten Morocco’s limited water supply. The projected doubling of the country’s population over the next thirty years will worsen the problem, causing demand to go up and supply to fall. This, along with continued drought and soil erosion, has added to the urgency of managing Morocco’s water more efficiently.

USAID implemented three pilot projects to show Moroccans that protecting the environment does not mean less income. First, USAID built a chromium-recovery plant that connected sixteen tanneries in Fez using pipelines. The tanneries had severely polluting the Sebou River by dumping the chromium used to cure hides. USAID worked with the recovery plant in Fez to reduce chromium concentrations by more than 90%. The recycled chromium is sold back to tanneries, making the plant financially self-sufficient.

Next, USAID built a financially self-sustainable wastewater-treatment plant in Drarga, where raw sewage had compromised residents’ health and severely contaminated the aquifer from which the village draws its water. The plant provides compost and treated wastewater to farmers for purchase, and for use in irrigation, taking pressure off the aquifer.

In the Nakhla watershed near Tetouan, USAID implemented a program to prevent soil erosion and silting of the reservoir by introducing innovative farming techniques such as the planting of 160,000 income-producing trees, and stabilizing 1.5 kilometers of ravines using check dams and gabions. USAID introduced wood-conservation mechanisms, including importation of goats and bees, which provide alternative sources of revenue instead of cutting down trees for income, as well as better stoves which reduce the usage of wood for heat. These techniques have prolonged the life of the reservoir by fifteen years.

Pilot projects support water conservation by drastically reducing soil erosion and pollution

Posted in Uncategorized at 4:27 pm by nadia

Pollution and destructive agricultural practices threaten Morocco’s limited water supply. The projected doubling of the country’s population over the next thirty years will worsen the problem, causing demand to go up and supply to fall. This, along with continued drought and soil erosion, has added to the urgency of managing Morocco’s water more efficiently.

USAID implemented three pilot projects to show Moroccans that protecting the environment does not mean less income. First, USAID built a chromium-recovery plant that connected sixteen tanneries in Fez using pipelines. The tanneries had severely polluting the Sebou River by dumping the chromium used to cure hides. USAID worked with the recovery plant in Fez to reduce chromium concentrations by more than 90%. The recycled chromium is sold back to tanneries, making the plant financially self-sufficient.

Next, USAID built a financially self-sustainable wastewater-treatment plant in Drarga, where raw sewage had compromised residents’ health and severely contaminated the aquifer from which the village draws its water. The plant provides compost and treated wastewater to farmers for purchase, and for use in irrigation, taking pressure off the aquifer.

In the Nakhla watershed near Tetouan, USAID implemented a program to prevent soil erosion and silting of the reservoir by introducing innovative farming techniques such as the planting of 160,000 income-producing trees, and stabilizing 1.5 kilometers of ravines using check dams and gabions. USAID introduced wood-conservation mechanisms, including importation of goats and bees, which provide alternative sources of revenue instead of cutting down trees for income, as well as better stoves which reduce the usage of wood for heat. These techniques have prolonged the life of the reservoir by fifteen years.

http://www.usaid.gov/stories/morocco/fp_morocco_environ.html