With Christmas and Hanukkah just around the corner, charities throughout Florida are feeling stressed by diminished contributions and rising community needs. As they have in years past, insurance companies are helping fill the gap with cash and hands-on volunteer commitments. Yet insurers hesitate to call too much attention to corporate and employee contributions lest critics twist even this generosity into something negative. A more enlightened perspective recognizes the interdependence of serving societal needs through corporate-giving programs.

Most major corporations in a wide array of industries have charitable foundations that invest in the communities in which they do business. These foundations are funded either as endowments, with money coming from returns on the initial investment, or through pass-through organizations that are funded annually with 100 percent of the funds distributed each year. There are also hybrids combining the two approaches. Contributions to the charitable foundation are tax deductible for federal income tax purposes, an obvious reason to establish them. Under the Internal Revenue Code, a charitable foundation must be organized and operated exclusively for charitable, scientific, literary, or educational purposes. Foundation assets cannot be used to the benefit of a private individual, for lobbying, or for political campaigning.

Most major insurers, along with many of the domestic carriers in Florida, have corporate social responsibility programs of some sort, and many of them address specific societal issues with a strategic approach tied to the business. For example, it makes perfect sense for a health insurer to focus on programs designed to promote healthy lifestyles. It makes equal sense for automobile insurers to support programs related to safe driving behaviors, and for a property insurer to support mitigation programs or research related to building homes that are more resilient to hurricane damage.

The Allstate Foundation donated more than a half million dollars to worthwhile causes in the Sunshine State in 2010, which included several initiatives to support safe teen driving. The “Action Against Distraction” program made visits to five Florida cities in the past two years to offer a closed-course driving challenge to help teens learn the consequences of distracted driving. Car crashes are the number one killer of teens, and insurers know their education programs make a real difference in saving lives by teaching teens to be better drivers. Like many automobile insurers, State Farm also supports safe-driving initiatives for young drivers. Congress has declared the third week in October as National Teen Driver Safety Week, and many people may be unaware that the effort was spearheaded by State Farm.

Insurers are also top contributors to disaster response and relief organizations, with many companies making substantial donations to fund the national and local disaster response of the American Red Cross. Given the state of the current economy, corporate contributions are being directed more toward serving basic human needs, according to the “Giving in Numbers” report by the Committee Encouraging Corporate Philanthropy.

In addition to the checks and grant money from corporations, there are thousands of insurance company employees and agents who contribute directly as well. The insurance industry provides more than 181,000 jobs in Florida, according to the U.S. Bureau of Labor Statistics, and in most workplaces there are programs to garner employee contributions for civic and community causes. Most notable is the United Way, and in counties throughout Florida, United Way organizations often list insurers among their top donor groups.

In addition to cash gifts, the “Giving in Numbers” report showed that companies are increasingly encouraging employees to volunteer; 92 percent of companies have formal programs to make it easier for employees to donate their time.

You can learn more about the insurance industry's contributions to community development by reviewing the Insurance Information Institute's Impact magazine, available online at www.iii.org/impact. You also might take a look at the mission of the Insurance Industry Charitable Foundation. Although the IICF is not established in Florida, it is an example of the spectrum of support provided by insurers.

At this time of year, insurance companies across the state are filling collection bins in their offices with canned goods and toys to support multiple organizations. They are selecting names from the Salvation Army's angel tree to buy gifts to make the holidays special for needy families, buying bicycles, basketballs, and baby dolls to help people from the Keys to the Panhandle. Industry critics overuse those politically charged words “greedy insurance companies” when they refer to business decisions made in the marketplace. Let the critics overlook the generosity if they choose, while we continue to express the feelings of the holiday spirit in the unselfish acts done behind the scenes where it always matters and makes a difference.

Lynne McChristian is the Florida representative for the Insurance Information Institute. She may be contacted at 813-480-6446, [email protected]. Also, see www.InsuringFlorida.org for her insurance blog, “Straight Talk.”