Going local:corporate community philanthropy

As the concept of Corporate Social Responsibility is driven higher up the business agenda, an increasing number of companies are deciding to demonstrate commitment to their local communities through giving to local charitable projects.

Motivations may vary, but in the main they come down to a desire to demonstrate to the world, the local community and their own employees that they care about the lives of those around them and are keen to ‘give something back’. Companies also receive relief against their corporation tax liability. The net effect is to improve their image as a good and caring employer, and as a positive presence in the neighbourhood.

Many local employers give money, often channelling their giving through a local trust or the relevant community foundation. Some companies want to engage more with the local community, and involve their staff in local projects. Increasingly, such initiatives are being seen as an effective alternative to expensive team-building days. For example, HSBC is part of the Community Foundation for Merseyside’s In Good Company scheme. Last year it joined with the Fire Service, the community foundation and the local Business in the Community to paint the community centre of the Somali Youth Association in Liverpool. “The kids came down when we were nearly finished and were thrilled. You could really see everyone was getting a lot out of it,” says Jack Miller, Corporate Fundraiser.

"In Good Company has given HSBC the opportunity to meet like-minded companies, those companies who want to help their community and give something back to the area in which we operate, the area our staff are from and the area where our past, present and future customers live," says Alison Clare, HSBC Commercial Manager.

Smaller companies can also make a difference. Builder David McLean gave about £10,000 a year ago to be targeted at environmental projects. But the company also wanted to get its staff involved with local projects. One example was in turning a bit of wasteland next to St Michaels in the Hamlet into an outdoor classroom. Several members of staff volunteered to take part in helping to landscape it, and found the experience very enriching. “We all know big companies can make a big impact with big money, but this really shows that small companies can make a lot of impact for not a lot of effort,” says Jack Miller.

BSkyB works with the Thames Community Foundation, specifically on the Sky Youth Action Fund, to which it has contributed £450,000 since 2003. The Fund supports projects aimed at developing the creativity of young people (between 11 and 21), enhancing communication skills, preparing for the world of work and building confidence and self-esteem. Grants are typically between £250 - £3,000.

One project was a special exhibition for Blind Art – set up to allow visually impaired young people to experience art through touch, smell and sound.

"Sky is committed to providing innovative education to groups of all ages. We were impressed by Blind Art's inclusive, educational approach and delighted that more than 40 children took part on the day," says Saskia Nelson, Corporate Community Investment Executive, BSkyB.

The Fund has also launched a website aimed at its own employees, www.sky-makeadifference.com, which offers opportunities to volunteer in the local community. Staff are encouraged to volunteer for up to 16 hours a year in paid time – over 2,000 employees have done so in the past year. The website also offers the opportunity to join payroll giving or to fundraise for their own causes, supported by an employer-matching scheme.

Meanwhile, insurance giant Axa has two funds managed by the Quartet Community Foundation in the South West. The Axa Sun Life Fund was set up in 1992 as an endowment fund and the income generated is used to make grants, year after year, at the discretion of the community foundation. “We want to ensure the help we give is long term and an endowment fund like ours is a lasting source of funds for worthwhile causes in the area,” says AXA’s Community Partnerships Manager Celia Arberry.

Axa set up a second fund when it handed over the running of its charitable trust to the community foundation in 2003. The new Axa Enterprise Fund supports young people's projects.

Local solicitor’s firm Osborne Clarke also has two funds with Quartet – an endowment fund to support the community foundation's core activities and a Charitable Fund for projects it chooses. The company has distributed around £50,000 in grants a year since 1997 through Quartet. The money has funded projects such as Penny Brohn Cancer Care, the North Somerset Agricultural Society and the Jessie May Trust which provides respite care for families with children with life-limiting diseases.