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donation from the company. However, Microsoft Silicon Valley further bolsters the impact and effectiveness of this program by providing the nonprofit organizations support from technology consultants. These consultants provide initial input on the nonprofits’ technology needs, and eventually support the implementation of the donated software. Through this approach, Microsoft is leveraging its core competencies and non-cash assets while building the capacity of its nonprofit partners. Companies may also offer space at their headquarters for the nonprofit to host events, or may leverage the company’s social media networks, marketing expertise and brand. This strategy focuses on providing more comprehensive support for the nonprofit, especially for services that would be quite costly to the nonprofit to procure independently. One example of a corporation utilizing its business model and non-cash support to aid nonprofits is StubHub. With more than 20 million visitors per month to its site, the company has worked with nonprofits to develop a customized tool to its platform and audience reach to help nonprofits sell tickets to their own fundraising events. StubHub is also exploring new models which would leverage its core business and support additional revenue generation for nonprofits. Motivators for Engagement There are a number of reasons that companies give to the causes they do. Respondents to the SVCF survey of local companies reported a mix of motivations, including:
Many Bay Area corporations also focus their giving on causes that align with their core business values, as well as areas in which they can utilize their expertise and strengths to make a positive social contribution. When asked to identify up to three of the greatest social challenges facing Bay Area communities, 73 percent of survey respondents said K-12 education was a top concern. The identified social challenges align with giving in the Bay Area. Bay Area companies that were surveyed identified K-12 education as the single largest priority category of giving in 2012 (18%). When asked to identify which program areas received contributions, Bay Area companies again identified K-12 education as the most common area (64%). Giving Patterns Align with Local Need Many Bay Area companies give in areas surrounding their company headquarters or regional office, and the priority area of focus in K-12 education aligns with local need. In particular, the Bay Area has clear disparities in educational attainment by race and ethnicity. Bay Area companies’ innovative non-cash giving methods are illustrated by their approach to investing in education. In fact, more companies responding to the SVCF survey thought that “Bay Area companies can make the biggest difference in local education” through non-cash (60 percent) compared to cash contributions (40 percent). The most common non-cash contribution for education mentioned was employee engagement, followed by a diverse mix of ideas including senior executives working directly with education leaders, raising awareness of the issues, and pro bono projects. In response to the local need and identified areas of impact on local education, Bay Area companies are focusing their contributions on helping close the educational gap in the region. Given the innovation and technology-based Bay Area economy, many companies focus on science, technology, engineering and mathematics (STEM) education to prepare youth to join the regional workforce. In fact, 40 percent of Bay Area companies responding to the SVCF local survey cited both STEM education and access to higher education as priorities for their giving. Closing gaps in educational attainment is a very complex and multi-faceted challenge for any one funder or organization to tackle. In recognizing the potential for greater impact on this issue through collaboration, some Bay Area corporations have developed longer-term relationships with each other to strategically allocate resources and increase their impact. In contrast to one-time grants, these partnerships generally entail
Greatest Social Challenges Facing Bay Area Companies
K-12 education Workforce development Affordable housing Health and social services Poverty Higher education Other Arts and culture Environment Economic securty Regional planning Not sure Disaster preparedness
n = 15 Data Source: SVCF, Corporate Citizenship Survey, 2013 Analysis: Collaborative Economics
longer-term resource commitments and symbiotic benefits for each partner, ultimately leveraging the strengths of both corporations to provide systematic support. Working with another corporation to meet a common goal can be an effective way to solve deep-rooted societal problems, but partnership has proven difficult. While comments from Bay Area companies suggest this tactic is growing in popularity in the region, it is challenging for companies to maintain a distinct corporate identity around giving and partnering with another organization to leverage resources. Launching inter-company collaboration on giving can be difficult. Not all companies engaged in a given issue have the same level of interest in sharing their ideas. In some cases, several companies have already established programs, and are unwilling to give up their brand and signature initiatives. However, if companies can find areas for alignment, these partnerships can be effective.
CASE STUDY
73%
60% 33% 27% 20% 13% 13% 7% 7% 7% 7% 7% 0%
Here is one example of how two longstanding corporate citizens in the region are exploring an effective partnership model:
Cisco and the Applied Materials Foundation have partnered to increase their impact in education in a specific, high-needs community. The two companies combined efforts to focus on the Alum Rock community in East San Jose, and have encouraged and welcomed other funders to join them to drive systemic change. While each funder adheres to its own philanthropic guidelines and strategies, Cisco and the Applied Materials Foundation have made complementary investments in support of traditional public schools and districts, charter schools and nonprofit education organizations that are all working to increase the efficacy of teaching and enhance academic achievement. The Alum Rock Union Elementary School District has led the way in coalescing the work of multiple organizations, and the results have been impressive. The district has achieved an increase of 93 points, improving its API of 692 in 2008 to 785 in 2013. Additionally, the district has dramatically increased the number of schools meeting California’s target API score of 800, from one school in 2008 to sixteen schools in 2013, with another five schools not far behind with scores over 790.
Opportunity for Impact on Local Education
8
SVCF CORPORATE CITIZENSHIP REPORT
SVCF CORPORATE CITIZENSHIP REPORT
9
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