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BANKING ON PHILANTHROPY:
Impact of Bank Mergers on Charitable GivingThe 1990s saw significant growth in banking corporations, with numerous mergers and acquisitions, as well as organic growth and expansion. The decade also was a time of significant change in the way the broader corporate sector viewed, and utilized, philanthropy. Banking on Philanthropy: Impact of Bank Mergers on Charitable Giving is an attempt to make sense of how those changes affected the sector's philanthropy.
NCRP examined the giving levels of Bank of America, Citigroup, JPMorgan Chase, SunTrust, Wachovia, Washington Mutual and Wells Fargo, comparing them to levels prior to their mergers.
The report found that instead of the expected decrease following the mergers, philanthropic giving by these banks actually increased. There is evidence among some banks of a shift toward funding national organizations, with a corresponding drop in local giving. There has also been a shift across regions, with the South being a clear winner of increasing bank philanthropy among the banks studied.
Another finding is that community advocates have contributed to increased levels of philanthropic giving by banks and that a strong philanthropic culture at one or both banks prior to a merger contributes to increased levels of philanthropic giving after the merger.
Finally, the study found that a significant majority of the bank foundations’ IRS 990- PF returns are in violation of the IRS rules regarding what information should be included in the return. Many claims made by banks about their philanthropy are not externally verifiable, and there is a lack of standardization regarding what is included in the sector's definition of
“philanthropy.”
Based on these findings, NCRP makes several recommendations for continued advocacy for increased philanthropic giving and for improved disclosure and tracking of corporate philanthropy.Banking on Philanthropy was funded by the Rockefeller Foundation.
Executive Summary (PDF) Findings and Recommendations (PDF) Full Report (PDF) Press Release Author's Bio For Community Advocates (PDF) For Bank Staff (PDF) We appreciate hearing from our readers. Share us your thoughts about Banking on Philanthropy by visiting our blog, sending us an email at readers[at]ncrp.org, or calling us at (202) 387-9177.
