Feature Stories - December 2004

The Season of Giving Lasts All Year

Corporate Philanthropy Thriving in Nevada

In 1941, during a speech given on behalf of the United Service Organizations, oil magnate and noted philanthropist John D. Rockefeller said he believed, "Every right implies a responsibility; every opportunity, an obligation; every possession, a duty." While few of today’s Nevada businesses leaders are old enough to have heard the speech, Rockefeller’s philosophy about philanthropy seems to have been passed on to them. It certainly is reflected in good corporate citizenship – the foundation of business generosity – exhibited by Nevada corporations.

Good corporate citizenship is alive and well in Nevada. According to Dan Goulet, president and CEO of United Way of Southern Nevada, corporate giving in Nevada last year, as reported by the National Center for Charitable Statistics, amounted to $949 million, or 27th among the 50 states – and that doesn’t include much of the giving by small businesses. That report contrasts with others, such as a United Way of America study and an April report by The Chronicle of Philanthropy, stating that Las Vegas tied for fifth on its list of least-generous cities in the nation.

These surveys don’t tell the whole story, and certainly ignore the underlying causes for the lower numbers, including the relatively young age of the state, especially its population center. In addition, most of the population has lived here less than 20 years.

"I think people beat Nevada up, saying that corporations here aren’t doing the job that everyone thinks they should," said Goulet. "But when you look at that $949 million, I think that makes a huge statement that corporations in this community are doing things that are critical and important." Ann Cory, president and CPO of United Way of Northern Nevada and the Sierra echoes Goulet’s statement and points out that the absence of a state income tax results in significant amounts of charitable donations going unreported.

It’s apparent that you can’t accurately compare Nevada’s relatively new charities to charities in eastern states that have existed for decades. Yet comparing the philanthropy of comparatively young companies in Nevada, many still in the startup mode, to the long-established companies of the East can be valuable in setting targets and goals for the future as the state’s corporations and charities mature.

As Nevada’s population swells, many new residents are slow to adopt their new home and continue to remain committed to the communities they left behind. Breaking old ties is difficult – it’s human nature to want to hold on to something – so it’s not unusual for newer residents to send their donations "home" to organizations with which they had previous ties. Cory also noted that Nevada is a second home for many residents. "They are still tied to the community they consider their primary home," she said, although she added that "there is a strong culture in Northern Nevada of giving back to the community."

Paul Stowell, senior vice president of public and shareholder relations for Business Bank of Nevada, said it takes time for new residents to develop an affinity for Nevada and cultivate a sense of community. "There is a lag from the time new residents move here to when they really feel they are a part of the community," explained Stowell, who also serves as spokesman for the Business Community Investment Council (BCIC).

Regardless of the level of corporate giving in Nevada, there is always room for improvement, and dedicated business leaders are proactive in enhancing the level of participation, giving and volunteerism. They recognize that one’s lifestyle is dependent upon a continuous process of give-and-take, whereby individuals and businesses alike contribute as much or more than they receive.

In Southern Nevada, the BCIC is committed to enhancing the effectiveness of business philanthropy through education and outreach. "We want businesses to be aware of community needs and the part they can play in meeting them," Stowell said, pointing out that BCIC partners with other business-related organizations such as the Chambers of Commerce and Nevada Development Authority to fulfill its mission.

Corporate philanthropy has many forms: direct cash donations, special events sponsorships, the purchase of tables at fundraising dinners, the establishment of scholarship funds, the donation of goods and in-kind services, and volunteerism. In addition, Nevada workers donate millions of dollars to United Way and directly to nonprofits. They also give generously to corporate foundations which provide an alternative to United Way, but through which they can designate the agency as one of the recipients.

Many Nevada corporations have foundations, but few are organized like MGM’s Voice Foundation, which is run by a Community Voice Council consisting of employees. The young foundation has donated more than $7.1 million to 400 charitable organizations in Southern Nevada in the three years since it was established. "The Voice Foundation is very successful because of the way MGM has empowered its employees to run it," said spokeswoman Cheryl Bella.

United Way is the leading agency in Nevada for collecting and dispensing employee donations. In 2003, Nevada’s three United Ways received about $13 million in pledges from employees of Nevada companies. Their success is directly related to the type of support they receive from businesses that not only encourage employees to contribute, but frequently provide incentives. Sprint, for example, allocates special reserved parking places for employees who become members of United Way’s Paladin Society by donating at least $1,000 annually. This year, 35 Sprint employees are enjoying the special parking spaces.

Businesses also recognize they have an obligation of community support beyond that provided by employees and therefore donate hundreds of millions in corporate dollars. "We are committed to enhancing the quality of life for our family of 40,000 employees and for our communities, and each year we give back millions of dollars through our corporate charitable-giving program," said Shelley Mansholt, vice president of corporate communications for the MGM Mirage. Mansholt says it is important for the MGM Mirage, as a corporate citizen and Nevada’s single largest employer, to help build stronger communities where its employees live, work and care for their families.

Dawn Merritt, BCIC member and public affairs manager for Sprint, noted that her company, which is headquartered in Kansas City, has a substantial local donations budget and its charitable priorities are essentially set locally. "Sprint recognizes that we who live here know and understand our community needs," she said, pointing out that Lou Emmert, vice president and general manager, is active on the boards of several local nonprofit organizations.

Cox Communications this year will contribute more than $1.8 million in Southern Nevada, up $200,000 from last year’s total. "We feel we have a mandate to be a good corporate citizen because all of our employees live here," said Steve Schorr, vice president of public and government affairs, who cited numerous occasions of Cox philanthropy. Schorr spoke proudly of the cable company’s employees and told of Cox Connects Day. More than 110 employees, supported by Cox corporate dollars for some materials and recreation equipment, performed an extreme makeover on the Lied Boys & Girls Club. They gave up a Sunday to paint, remove linoleum, install new floor coverings, rewire the computer lab and repair computers.

"It boils down to one thing, and that is employees," said Schorr of corporate philanthropy. "It is making employees proud of who they work for and the company they represent." He related the story of an employee who participated in Cox Connects Day and came to him with tears in her eyes, saying she never knew she could work for a company that could touch her heart. "That’s what this is all about," asserted Schorr.

Paul Dykstra, president & CEO of GES Exposition Services, stated, "As Nevada grows, it is even more vital for companies to foster that growth by supporting the efforts of our communities. GES is proud to deliver financial contributions, in-kind services and learning programs to several local organizations, including UNLV, the Public Education Foundation, Nevada Cancer Institute and Opportunity Village. GES employees give hundreds of volunteer hours each year to support our local charitable events."

The SBC Companies last year invested $106 million in Nevada – mostly in the north –including $700,000 in grants and corporate contributions and 38,000 volunteer hours worth some $638,000. SBC is highly focused in its philanthropy, with its giving coming primarily through the SBC Foundation. "SBC is committed to enriching and strengthening our communities through education," said Sylvia Samano, president, SBC Nevada, during its recent announcement of more than $135,000 in education grants for the state.

While the corporate largess of Nevada’s leading businesses is well-documented, the contributions of small businesses are also vitally needed. Although these businesses number in the thousands, their philanthropy is less visible. However, their contributions of in-kind services and material are significant and often fill needs that otherwise would go unmet. Their donations can also exhibit an imaginative approach sometimes lacking at the larger corporate level.

One example of small-business philanthropy is exhibited by the Fabric Boutique Quilt Shop in Las Vegas. This retailer has a variety of imaginative projects to support domestic violence and cancer victims. In its quarterly Quilt for Cure, employees and customers join to make 25 to 40 quilts for victims of breast cancer. Another 10 queen-sized quilts were sewed as part of a national program to auction items on E-Bay to benefit the Susan G. Komen Breast Cancer Foundation. In its Diaper Dash, 1,200 diapers were collected for the SafeNest domestic violence shelter and more than 800 pairs of women’s panties were collected this year for SafeNest in the store’s Great Panty Raid. Even an e-mail customer from the United Kingdom sent panties.

"We feel we need to give something back to the community," said the quilt shop’s co-owner Ev Dahl. She said customers receive a 20 percent discount coupon for donating diapers or panties, but really need no incentive and receive none for the quilts they donate. "Our customers join us in feeling they can also give something back to the community."

Computers Inc., a small service company, also makes a difference. Learning that computers at the Salvation Army’s Henderson Adult Daycare Center were destroyed by vandals, President Jim Morgan had his technicians refurbish three computers, load them with up-to-date software and install them. An anonymous Henderson attorney also donated four more. As a result, the Salvation Army ended up with more and better computers and was able to enhance its program for seniors.

Businesses clearly are not uncaring and faceless monolithic entities, as they are frequently portrayed. Instead, they are people – customers, employees and shareholders – people who can and do make a difference. The important thing is that every business, no matter how small or large, has the ability and the responsibility to get involved.

Nonprofit beneficiaries of corporate philanthropy admit they are heavily dependent on business support, sometimes for their very survival. Others note they can exist without it, but often at just a subsistence level. "We have 213 business partners at St. Mary’s Medical Center in Reno," declared Stephanie Hauk, vice president and foundation leader. "Their support is critical to meeting community needs and keeping up with technology advances," she said, adding that because healthcare is really big business, people sometimes think philanthropy is not important to its well-being. Not so, she said, emphasizing that, "Philanthropy is what makes the difference between a good hospital and a great hospital."

In addition to the vast infusion of cash that nonprofit organizations receive through corporate philanthropy, volunteerism is also critical to their success. It is defined as the human-resource component. In 2003, the value of volunteer time in America was estimated at $266.4 billion, based on an average value of $17.19 per volunteer per hour. In Nevada, the dollar value for a volunteer in 2002, the latest year for which information is available, was $15.12.

By partnering and collaborating with businesses, nonprofits gain access to volunteers with a breadth of expertise and experience that would rival even the best consultants. Nevada’s corporate leaders and managers contribute thousands of hours serving on the boards of directors of these organizations. Countless other employees volunteer to assist with special events, committees and fundraising.

Volunteerism is encouraged by good corporate citizens to the point where they sometimes match employee donations or give them compensated time off when volunteering. The MGM Mirage, in its Dollars for Doers program, supports volunteerism with $250 grants to eligible nonprofits at the request of an employee who has volunteered 25 to 50 hours per calendar year; grants can grow to $500 for 51 or more volunteer hours.

"One of the most important elements volunteers provide nonprofit organizations is the know-how to operate like a business," said BCIC’s Stowell. "In today’s competitive world, charities have to operate like businesses if they are to survive."

Corporate philanthropy also begs the question, "What’s in it for the business?" Certainly, businesses reap both tangible and intangible rewards. "Charitable donations by businesses and individuals may be tax-deductible to the extent that there is income to offset the deduction," said Jason Thomas of Fair, Anderson & Langerman, a Las Vegas accounting firm known for its strong philanthropic support. Thomas advised that everyone should check with a certified public accountant on the deductibility of any charitable contributions.

One benefit businesses receive for employee volunteerism is valuable networking and training opportunities. "The training ‘loaned executives’ receive from us is very valuable to their companies," said Cory of United Way in Reno. Stowell also cited employee loyalty and reduced turnover as a return on investment from business giving, noting a survey that indicated 86 percent of employees "feel a stronger loyalty to their employer when it is community-minded."

Corporations and consumers alike are inclined to patronize or do business with companies that demonstrate good corporate citizenship. Certainly, that is ample reason to be generous. In the final analysis, however, the best justification for corporate philanthropy is that it is the right thing to do. "The more I give, the more I get," explained one spokesman. "We all have to give back to the community," said another.

Stowell said the BCIC would like all businesses to look internally and ask, "If I’m not giving, how can I get involved? If I am giving, how can I do more?" Advice and mentoring is available from the BCIC and organizations like the Independent Sector (www.independentsector.org) and United Way. Nevada’s charitable foundations and corporate donors are also good sources of information and advice. The simple answer,however, is probably, "Just do it."

Finally, any business considering a philanthropic investment through a charitable donation should remember the words of Henry David Thoreau, "Goodness is the only investment that never fails."