Budgeting for charity - Corporate philanthropy downsized this Xmas
Published: Sunday | December 14, 2008

Avia Collinder, Gleaner Writer
Local companies, with the exception of a few, appear to be limiting or downsizing their spending on charitable gifts and projects in response to harsh economic times.
No estimate of the size of corporate philanthropy is available, but some companies spend tens of millions on children, the elderly and low-income communities, while others, including those whose bank accounts may not be as flush, encourage staff to give personal time.
Tax waivers
Speaking on condition of anonymity, a finance ministry representative said that more than $1 billion of tax waivers is granted each year for goods imported for charity.
He said, however, that the customs-duty waivers could not be used as a proxy for valuing philanthropy, as companies also claim tax credits for charitable expenses.
Indeed, a number of Jamaican companies - some of whose philanthropic efforts are quietly executed, others with sought-after publicity - have been cutting back on the gift of giving as part of efforts to rescue profits in an environment of waning sales.
Selling fewer meals
Thalia Lynn's Island Grill fast- food chain, for example, has reported a cutback, saying fewer meals were being sold as consumers' disposable income wanes.
"As a result, we have less to spend on gifts and charitable projects," said marketing manager Sahran Walters.
Still, Walters clarified that Island Grill's projects had never been restricted to the Christmas season.
The chain supports the Mustard Seed Communities, St Monica's Home, Missionaries of the Poor, Jamaica Reach to Recovery, the Abilities Foundation, Teen Challenge International, and a number of homes for the aged, places of safety and basic schools.
A number of companies have formalised their philanthropy through foundations, among them Scotiabank Jamaica, whose work spans education, medical assistance, and more.
Charity efforts
Scotiabank, Jamaica's most profitable company, which reported a surplus of $9.6 billion this year, is trying to expand its charitable efforts through 'partnerships'.
"We are asking customers to join us in outreach to charity and make a difference in a child's life," said communications officer Simone Hull.
"It's not that we are not conti-nuing our own efforts, but we are trying to be smart in how we give in terms of the impact and the number of people. Our decisions this year have been much more strategic."
In early December, for example, the bank donated an intra-aortic valve pump to the University Hospital of the West Indies - a piece of emergency equipment needed to revive patients in cardiac arrest.
Valued at over $3.5 million, it was funded through the efforts of staff members and Scotia volunteers who raised half the sum. The bank matched the amount they raised.
Scotiabank spent $170 million last year, through the bank and the foundation, on its programmes. The spend for this year was not immediately available.
National Commercial Bank (NCB), whose profits were almost as large - $8.7 billion - committed, through its foundation, $115 million, including $30 million in scholarships for more than 400 students, said Natalie Peterson, project and research coordinator at the NCB Foundation.
At the Multicare Foundation in Kingston, which is supported financially by LIME Jamaica (formerly Cable and Wireless), Caribbean Cement Company and ICD Group Limited, representative Elizabeth Campbell says the facility has operated on the same budget for the past two years.
Multicare operates sports and visual and performing arts programmes in 31 schools, primarily located in downtown Kingston, including the neighbourhoods of Whitfield Town, Balcombe Drive, Denham Town, Rae Town, Southside, Franklyn Town and Payne Lands.
Therapy programmes
Multicare also runs art-therapy programmes at, for example, the Jamaica Council For Persons With Disabilities.
Digicel Jamaica is the only local company reporting an actual increase in charitable spending.
According to company representative Benton McTaggart, the total budget this year was roughly US$1.4 million (J$110 million), compared to US$1.2 million (J$92 million) in 2007.
Projects pursued by the Digicel Foundation have included resource and reading centres for a number of high schools, construction and refurbishing of a number of basic schools and multi-purpose courts in a number of rural communities.
Digicel Foundation partnered with the Child Development Agency to stage Christmas treats for children, with one event staged December 6 for 600.
"So many bad things are happening to children in our society and we as a foundation have to raise the bar and show Jamaica that we care for our children so that others can follow," said McTaggart.
"We decided to start with children from charity homes across the island because they are the most vulnerable in the society and are disadvantaged."
The Digicel Foundation, to date, has managed more than 60 projects, all selected on the basis that they will contribute to the overall cultural, social or educational development of the country, a community, or a specific group of individuals, said McTaggart.
Island Grill notes that often, what starts off as a small community project - in the absence of a large budget - eventually blossoms into a long-term partnership.
Adoption of institutions
One example of this is the food chain's relationship with the Abilities Foundation, which began with the Manor Park store's adoption of the institution for its Christmas 2007 community project.
Recently, Island Grill provided a scholarship to one of Abilities Foundation's students and sponsored a sign for the institution.
Said Walters: "Although we might not be able to donate a lot financially this year, the spirit of giving continues amid the economic challenges."
avia.ustanny@gleanerjm.com













