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The Business of Giving

Exploring philanthropy, non-profits and socially motivated business, from the Gates Foundation to your donation. A fresh look at the economy of good intentions.

November 25, 2009 at 11:09 AM

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What will Boeing consolidation mean for local philanthropy?

Posted by Kristi Heim

Boeing has a long tradition of philanthropy in the Puget Sound region. Its total giving reaches almost $50 million a year, including its Employees Community Fund (ECF) of Puget Sound, which has given out well over half a billion dollars in its 58-year history.

At a time when many companies have cut matching gift programs, Boeing still matches employee charitable donations dollar for dollar up to a maximum of $6,000 per year.

Boeing people are involved in non-profit boards and community service projects of all kinds. This year Scott Carson, recently retired as CEO of Boeing Commercial Airplanes, is chairman of the United Way of King County's 2009-10 fund-raising drive.

"I think Boeing has played a phenomenal role as a philanthropic leader in the community," said Carol Lewis, CEO of Philanthropy Northwest. "They have a wonderful legacy."

Is that about to change?

Last week Boeing altered its management to combine two units responsible for local government relations and corporate philanthropy into one position and shift authority over both to an executive in St. Louis.

What impact does it have if the local area loses a vice president in charge of corporate giving and government relations? In the short term, maybe not much. This year the level of donations from Boeing remains constant at around $48 million.

"Titles and location aside, if we are giving the same amount of money to great causes in our community then what has changed? said Boeing spokesman Bernard Choi. "Nothing has changed in that realm at all."

Companies tend to give and get involved where their employees and operations are based. In the longer term, as those workers, managers and markets shift to new areas and are diffused all over the world, it's hard to see them remaining loyal to one geography.

The vice president may have had the ear of company executives around the board room, but much of the work investing in local organizations is done by a small group of Boeing staff here who specialize in areas such as arts and culture, early learning, environment, health and human services and primary and secondary education.

Whether that staff remains (and how many) is one test of the company's commitment.

Boeing hasn't said what it expects for next year's giving. The prediction for 2010 is that it will be even more difficult than 2009 for non-profits because needs are greater while assets are down. Many grants are planned in advance (based on assets of the previous year) so the fallout from losses during the recession takes longer to play out.

To comprehend how fast the pace of change is, read this profile just two years ago of Bob Watt, the man who used to be in charge of state and local government relations and global corporate citizenship and who hired Fred Kiga. In 2007 Boeing had 72,000 employees in Washington state, it paid tuition and books for any employee to pursue higher education, and things were looking brighter.

"I stand in awe of how beautifully Seattle supports its nonprofit world," Watt said. "We are blessed and we are thriving."


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