Gov. Bill Owens lauded Colorado’s corporate community for its generosity following Hurricane Katrina, saying Wednesday that many of the donations represent “new money.”
At a Capitol press conference Wednesday to announce two private grants to the American Red Cross totaling more than $1.6 million, the governor expressed concern that some gifts that would have normally gone to local nonprofits would instead go to hurricane relief.
“I would hope it doesn’t happen … but we’ll have to wait and see,” he said.
Some local charities saw donations decline after the Asian tsunami and the Sept. 11 terrorist attacks, said Charley Shimanski, president and chief executive of the Colorado Nonprofit Association, formerly the Colorado Association of Nonprofit Organizations.
“Typically when there is a lot of giving outside the state, there is an impact inside the state,” said Shimanski, whose group represents Colorado’s roughly 17,000 nonprofits.
Dozens of Colorado companies have pledged support for the hurricane-ravaged Gulf Coast. On Wednesday, Owens announced a $1 million donation from the Gary-Williams Energy Corp. and $622,700 in donations from the Colorado Springs-based El Pomar Foundation and its employees.
Gary-Williams, a Denver- based oil and gas company, pledged the money late last week to the Mile High chapter of the American Red Cross. The gift, which was not made public until Wednesday, marked the largest single corporate gift the local chapter has received during this relief effort, Red Cross officials said.
El Pomar, established in 1937 by Broadmoor resort founders Spencer and Julie Penrose, and its employees are giving money to the seven Colorado chapters of the American Red Cross and to a fund administered by Pikes Peak United Way and Homeward Pikes Peak, a coordinator of homeless services.
Foley’s department stores, a unit of Federated Department Stores Inc., announced it will match customer donations dollar for dollar up to $1 million. Company officials declined to say whether the money was previously earmarked for charity.
The Gill Foundation, established in 1994 by Denver software entrepreneur Tim Gill, last week announced a $1 million matching grant to the American Red Cross. The money was donated through the Gay & Lesbian Fund for Colorado and was given in addition to the group’s previous charitable commitments, officials said.
Other Colorado companies have donated money, merchandise or both, but several corporate branding consultants said such efforts can backfire if they appear as marketing ploys.
“There is always that concern,” said Rick Jacobs of Denver’s Monigle Associates, which specializes in corporate branding. “In today’s environment, people are more knowledgeable about what the company is doing, whether it’s with the environment or charitable giving.”
That’s particularly true for large companies, said Sanford Keziah, a corporate branding consultant in Boulder.
Wal-Mart Stores Inc., for example, came under fire for initially giving thousands of employees at devastated stores just three days of additional pay. The company quickly increased its efforts, donating $15 million to the Bush-Clinton Katrina Fund.
Large companies “run a risk that if they don’t step up in a big enough way, that they aren’t fulfilling their responsibility,” he said.
Staff writer Will Shanley can be reached at 303-820-1260 or wshanley@denverpost.com.
