A Case Study on Motivation and Constraints of Corporate Product Philanthropy

Abstract

Due to the limited public resources in comparison to the growing need for social welfare, it has increasingly been concerned to develop resources in the private sector. However, it has been less discussed about product donations comparing with cash giving. Product donations, popularly known as gifts-in kind, are a form of non-cash philanthropic contributions. Recently, product giving have increasingly become both a form of corporate philanthropy and a source for nonprofit organizations. This study is to explore perceptions on motivation and constraints of corporate product philanthropy for more effective management of product donations. Data were collected by interview in-depth with four corporate managers and two NPOs staff in charge for product donation in South Korea. As the result, three categories were identified as motivation of corporate product donation: ‘charitable and altruistic cause’, ‘effective use of excess inventory’ and ‘strategic corporate philanthropy’. Also, the staff of corporations and NPOs perceived three categories as constraints on product philanthropy: ‘tax benefits less than disposal and liquidation’, ‘ambiguity of the calculating of value of donated products’, ‘lack of intermediary service and recognition’ and ‘weak partnership among government, corporations and NPOs’. Based on the findings of study, suggestions are discussed for policy implications and effective intermediary systems such as the on-line catalog of Good 360.