The property and casualty insurance industry's charitable giving has increased by 15% since 2011, revealed a new IICF and McKinsey and Co. report. Respondents to the survey said the industry's contribution of $575 million to charity in 2014, met or exceeded public expectations for charitable giving.

There has been consistency in the top three program areas for giving, although the order has shuffled:

•  Direct giving to education has fallen by almost 50%.
•  Health and social services and community needs are receiving much more attention.
•  Fewer than half of the carriers surveyed measure either the social or business impact of their charitable giving.

The research, conducted by McKinsey in 2014 through surveys and interviews, included almost 24 insurance company foundations. The results, when compared to the 2011 research, provides a perspective on how corporate charitable giving in the industry is changing, with a number of meaningful trends:

• The industry is giving more

Since 2011, the industry's giving has increased by 15%, to an industry total of $575 million, outpacing inflation and moving closer to what many industry leaders believe the public expects.

• The focus of giving is shifting

Although the industry continues to direct almost two-thirds of its giving to education, health and social services, and community needs, education funding has declined by about 50%, while contributions to health and social services increased by 50% and contributions to community needs rose by about 70%.

• More foundations are aligning philanthropy with business strategy

The research revealed a strong trend toward aligning charitable giving strategy with business strategy. More than 1 in 5 foundations are now seeking this alignment.

• More foundations judge the impact of their giving according to its appeal to employees

Few foundations track the social impact of their contributions, but many see giving as a tool for engaging employees.

• Many property-casualty insurance CEOs continue to direct giving strategy

About 30% of foundations say that the CEO of the insurer sets charitable strategy, versus 13% who describe foundation leaders as the chief strategists—half as many as in 2011. The research revealed that CEOs are now also much more likely to act as role models for charitable giving and communicate with internal audiences about giving.

Approximately 38% of charitable contributions were made in the form of direct cash donations or grants. Another 11% were matching funds for employee donations, of which more than 90% were made in cash. About 6% of company contributions were in the form of scholarships, in-kind donations and other non-cash gifts. Some firms contributed by allowing employees to volunteer for charitable organizations on company time. Although most of the companies surveyed said they prefer to make contributions in communities where their employees live and work, especially near corporate headquarters, about 16% say they do not consider geography when making contribution decisions.