Corporate giving to tsunami victims rivaled only by post-9/11 donations

Corporate giving to tsunami victims rivaled only by post-9/11 donations

Associated Press, New York

U.S. companies have donated more than US$180 million in cash and products to assist victims of the tsunami that ravaged South Asia two weeks ago -- an outpouring some philanthropy experts say may eventually exceed corporate giving tied to the 2001 terrorist attacks.

The list is topped by pharmaceutical giant Pfizer Inc.'s gift of $10 million in cash and $25 million worth of its products. Competitor Merck & Co. is giving $3 million in cash and $7.4 million in products. The Coca-Cola Co. is contributing $10 million.

"Just about every company of every size is doing something," said Curt Weeden, president of Contributions Academy, a Charleston, South Carolina, company that trains managers of corporate philanthropy programs. "It really has engendered an amazing kind of response."

Companies say they're acting because the need and scope of the tragedy cannot be ignored. But their generosity also is being driven by a strong push by employees at many firms to respond to the disaster, and companies' own desire to improve their standing with consumers, experts say.

"Our reasons for doing this is not directly connected to our business," said Mark Schussel, a spokesman for insurer The Chubb Corp., which has earmarked $1 million. "I think it's more from a good citizenship standpoint."

But the outpouring is raising concerns in fundraising circles that it could lead businesses to cut donations they would have made to smaller, local causes. That was the case in 2002, as companies rethought their contributions after 9/11.

Firms downplay such worries, however, and for now, the response of companies to the disaster is drawing attention primarily for its largesse, which has been topped only by the $410 million pledged in 2001 by businesses and their foundations following the Sept. 11 attacks.

"There was this follow-the-leader scenario (after 9/11) and corporations that had never made a $1 million gift were making million dollar gifts ... because they didn't want to appear out of touch with the needs of the country," said George Ruotolo Jr., vice chair of the American Association of Fundraising Counsel, an association of fundraising consulting firms.

"The same thing is going to be happening here," said Ruotolo, who also is chairman of Ruotolo Associates, a Creskill, New Jersey, fundraising firm.

Corporate philanthropy experts say the figure likely will swell in coming weeks as firms fulfill pledges to match employee contributions, and still more businesses join or increase their gifts.

Weeden estimates corporate tsunami donations could eventually reach as high as $750 million -- based on an assumption that companies will earmark roughly 5 percent of their total charitable gifts for the year to the cause. That would far exceed donations after Sept. 11.

By the end of last week, at least 142 U.S. companies had publicly announced $182.7 million in donations or pledges to assist tsunami victims, according to a tally compiled by The Associated Press.

The list does not include gifts by smaller companies that have likely gone unnoticed, as well as some very large contributions reportedly made by firms that would not publicly confirm them. It also does not include contributions by numerous overseas firms, although it does include donations made specifically by U.S. subsidiaries of international firms.