Canada's corporate sector has stepped up to the plate this year when it comes to charitable donations, even with a global economic slowdown eating into its bottom line.

But that good news could be fleeting.

Most companies put their charitable plans in place early in the year and prospects for 2009 are not looking anywhere near as bright as the beginning of 2008, when both the Canadian and world economies were much stronger.

Officials in Canada's fundraising sector remain hopeful economic conditions will turn around next year, but they say it's too early to tell what effect the downturn will have on corporate charitable donations in 2009.

"Most United Ways do their corporate campaigns pre-campaign (before the full campaign launch). The economic downturn didn't happen until September, so there we're tracking ahead of last year," says Bonnie Morris, vice-president of resource development for the United Way of Canada.

"The corporate impact could be next year. When we now think of the economy, we wonder where the bottom is. The question is, will it come back in time for next year's donations?" However, a recent U.S. study may bode well for the future.

The Boston College Center for Corporate Citizenship survey, released in mid-November, showed that half of the 50 members surveyed believe that corporate citizenship will become more critical to corporate reputation and business success, even as corporate budgets get slashed.

Most of the rest believe the situation will remain unchanged, while less than 10 percent see the corporate role diminishing.

Michael Hall, vice-president of research for Toronto-based Imagine Canada, says the study is encouraging.

"To me, it just shows that although many people expect this kind of economic downturn will make business look at their community investment and reduce it, this is quite the opposite," says Hall.

Imagine Canada, which works to advance the role and interests of the charitable and voluntary sectors, recently completed a major research project on corporate philanthropy.

The project examined 93 of Canada's largest companies (annual revenues exceeding $25 million) and their community investment practices, providing the first-ever, comprehensive portrait of business contributions to charities and non-profit organizations in Canada.

In part, it showed that 50 percent of companies surveyed are meeting or exceeding the contribution standard set by Imagine Canada's Caring Company Program (one percent of profits to be directed to charities and non-profit organizations).

Other findings included:

* Ninety seven percent of the large corporations in the study made financial donations to charities and non-profit organizations.

* Leaders of Canada's largest corporations have very positive attitudes about the charitable sector.

* Almost eight in 10 (79 percent) agreed that most businesses would donate to charity, even without financial benefits.

* Most (71 percent) strongly agree that these organizations generally improve the quality of life in Canada.

Like United Way's Morris, Hall says that it's premature to talk about what the global downturn will mean when it comes to corporate charitable contributions in 2009.

Steve Baker, president of the board of directors of the Edmonton chapter of the Association of Fundraising Professionals (AFP), agrees it may be well into 2009 before any new trend is noticed. "By that, I mean whether or not there are going to be some companies that make a dramatic change," he adds.

The AFP represents more than 30,000 members in 200 chapters around the world that work to advance philanthropy through advocacy, research, education and certification programs.

Baker says it's quite possible that some industries and some companies could scale back their corporate giving - but that provides others the opportunity to step in.

"There will be those, no doubt, that will for varied reasons - all very justified - have to reel back more than others. But there will be others that will step up to the plate even more," says Baker.

"A corporation wants to thrive, and they thrive in a community that's healthy. A healthy community provides a healthy economy so it eventually comes back around."

The Toronto-based Salvation Army also remains optimistic about corporations and charitable donations.

"So far, we're pretty consistent when it comes to corporate donations," says Andrew Burditt, Territorial public relations director for the Salvation Army.

"We're definitely not up, but so far, we're doing OK ... They might not be giving as much, but they are still giving."

Wal-Mart Canada is playing a bigger role in the Sally Ann's annual Christmas Kettle Campaign.

Even though it has allowed the fundraising program at its stores in the past, it has now partnered with the Army for the first-ever national Kettle Campaign launch in cities including Calgary, Edmonton, Ottawa, Saskatoon, Scarborough and Vancouver.

TAXI Inc., a Canadian advertising and design company, is also joining the Army and has been distributing jackets to the homeless in Vancouver, Calgary, Toronto and Montreal.

Other corporate sponsorships and involvement are pending.

"What our take is on this so far - anything to do with donations - is that it's really too early to know how it will affect us. But the services we provide will not stop, we will not cut services," Burditt says.

"We have always found a way through a century and a quarter to make things work, and we will continue to do that."

Meanwhile, according to a new poll, a majority of individual Canadians plan to tighten their belts on gift shopping and entertainment this Christmas, but 82 percent say they will give as much or more to charity, in part because they realize the poor need their help even more this year.

According to the Ipsos Reid poll conducted for World Vision, charitable giving will be the last of five areas where Canadians will cut back.

Dining out will be the first to go, with 74 percent indicating that they are likely to trim this expense, followed by Christmas gifts and entertainment (72 percent) and then clothing purchases (70 percent).

By comparison, when it comes to charitable giving this Christmas, 56 percent indicated they are likely to reduce the amount they will spend.

(Laura Severs can be reached at laura@businessedge.ca)