CORPORATE COMMUNITY INVESTMENT PRACTICES, MOTIVATIONS AND CHALLENGES: Findings from the Canada Survey of Business Contributions to Community

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The Business Contributions to Community Study Funded through the generous support of EnCana corporation First phase: Roundtable consultations with 47 business representatives (2006 and 2007) Second Phase: Benchmarking representative survey of 1,500 businesses and a targeted sample of 93 of Canada s largest businesses (2007 and 2008)

Views About Charities and Nonprofit Organizations 100% 100% 80% 60% 40% 20% 52% 41% 72% 27% Strongly agree Somewhat agree 80% 60% 40% 20% 49% 45% 71% 27% Strongly Agree Somewhat Agree 0% All Business 25 million+ 0% All Business $25 million + Charities and nonprofits generally improve the quality of life in Canada Businesses and nonprofits can mutually benefit from a collaborative relationship

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Views About Charities and Nonprofit Organizations 26% 48% All Business 24% 55% 25 million+ Most businesses that donate to charity would do so even if they did not get any business benefits in return Strongly agree Somewhat agree

Types of Direct Contributions Donate money Donate goods / products Donate services Sponsorship Cause marketing Donate to corporate foundation 14% 26% 8% 17% 5% 43% 51% 59% 72% 69% 76% 97% 0% 25% 50% 75% 100% $25 million + All businesses

Value of Direct Contributions by Large Corporations ($25 million +) Sponsorship and Cause Marketing $63.5M Donations $270 Million Cash Donations $174 Million Non Cash Donations $96M

Value of Direct Contributions: Large Corporations vs. All Businesses All Businesses Large Corporations Median TotalContribution $3,000 $275,000 Median Cash Donation $2,000 $190,000 Median Contribution as % of Pre Tax Profit Amount Contributed by 25% of Companies 1.25% 1.00% 0%.06%

Beneficiaries of Direct Contributions Social Services 90% 66% United Way 82% 28% Health 81% 66% Sports & Recreation 74% 58% Hospitals 53% 48% Public / Private Schools 51% 36% Arts and Culture 71% 30% Universities & Colleges 67% 24% Protect Animals / Wildlife / 46% 24% International aid 28% 22% Environmental 57% 20% Industry or Trade 44% 13% 0% 25% 50% 75% 100% $25 million + All Businesses

Distribution of Direct Contributions By Type of Organization Social Services United Way Health Sports & Recreation Hospitals Public / Private Schools Arts and Culture Universities & Colleges Protect Animals / Habitat International aid Environmental Industry or Trade 2% 4% 1% 4% 5% 2% 8% 10% 13% 15% 17% 19% 0% 5% 10% 15% 20% Direct Contributions

Other Types of Contributions: Mobilizing Stakeholders Raise money from employees Support / encourage company employee volunteering 18% 43% 83% 82% Provide a payroll deduction program Make matching grants for employee contributions 8% 9% 62% 71% Raise money from customers or suppliers 22% 50% 0% 50% 100% $25 million + All businesses

It helps build a strong and healthy community which is good for business It is good for your company's relationship with the community If fits your company's traditions and values Reasons for Making Contributions for Large Corporations 22% 21% 22% 72% 72% 72% It is a good thing to do irrespective of financial returns It is good for your company's relationship with clients or customers 44% 39% 51% 45% It is good for you company's reputation 44% 51% It helps you recruit and retain employees 47% 28% 0% 50% 100% Somewhat Important Very Important 0% 50% 100%

Perceived Challenges to Contribution Efforts Among Large Corporations Difficulty responding to increasing requests 74% Lack of company's resources Difficulty measuring the impact on business Difficulty managing the expectations of multiple stakeholders Lack of interest or support from employees Lack of interest or support from management 27% 24% 47% 50% 58% 0% 25% 50% 75% 100% $25 million +

How Organized is Business Support? All Businesses 22% have regular ongoing programs for contributions 46% have senior management team or board leadership 13% measure the benefits of their community contributions 8% have a written policy Large Corporations 79% have regular ongoing programs for contributions 64% have senior management team or board leadership 27% measure the benefits of their community contributions 39% have a written policy

Conclusion Most businesses support charities and nonprofits Large corporations lead the way: Seek benefits in addition to doing good More contributions of all kinds Mobilize clients, customers and employees in fundraising Organized and strategic Challenges of meeting demand and measuring benefit

Creating Greater Impact Develop strategies to maximize impact for business and for community Deploy all available assets Find new niches for investment Get organized Communicate strategy Measure impact to better target efforts

our future depends on the success and the vibrancy and the health of this community as a whole so we recognize that we need to step up and support that in a meaningful way.

Made possible through the generous support of EnCana http://www.encana.com/