This article appeared in the December 2006 issue of DiversityInc magazine. To purchase the issue, click here.

With strong petitions for giving coming from such bigwigs as Bill Gates, Warren Buffett and former President Bill Clinton, corporate philanthropy has gained increased national exposure this year. What is missing from the discussion is the necessity and benefit of giving to diverse communities.

Americans like to give. Last year, U.S. donations to philanthropic causes exceeded $260 billion. To give you an idea of how much money that is, it's equivalent to annual auto sales in the United States, according to Geneva Global, an organization that measures philanthropic performance. And U.S. giving is growing, up 2.7 percent this year, according to Giving USA Foundation. As corporate America also increases its giving, studies have found that corporate foundations gave more than $1.8 billion to diverse communities in 2003. Even more telling are the companies that comprise The 2006 DiversityInc Top 50 Companies for Diversity^® list, where more than 33 percent of their philanthropic endeavors are going to ethnic and/or GLBT groups.

We asked eight companies with demonstrated philanthropic success in diverse communities why this has been good for them. Here are their top five reasons:

Increases Customer Loyalty

As a leader in the healthcare industry, it is vital for WellPoint, No. 47 on The 2006 DiversityInc Top 50 Companies for Diversity list, to connect with its consumers. In an industry that historically has evoked distrust and doubt among people of color, WellPoint has put great emphasis on following through on its commitment to diversity, especially with philanthropy.

"Consumers and our associates pay more attention to what we do than what we say," says David Casey, vice president, diversity and work-force development. "It is imperative that we engage in tangible programs and initiatives that don't just speak to our commitment to diversity but demonstrate it."

Keeping this in mind, WellPoint invested approximately $35 million in charitable giving to the diverse communities where its employees live and work in 2005. Much of its giving specifically targeted Latinos and blacks, including such projects as a $1-million grant to improve the quality of care of Latino parents to supporting African Community International, which assists 15,000 African immigrants in central Indiana.

"By aligning our social-investment goals with our business objectives, we put the full weight of the company into finding lasting solutions to the social issues we understand," says Caroline "Caz" Matthews, president, WellPoint Foundation.

Verizon, No. 1 on the Top 50, also has increased consumer loyalty by building relationships with diverse communities through its giving, of which 60 percent is aimed at ethnic and/or GLBT groups. One example is the company's partnership with Scholastic and the National Council of La Raza on its Lee y Serás program, which targets the U.S. Latino population. Lee y Serás is an early literacy initiative that empowers families and communities to foster children's literacy development.

"We see our role as one where our advanced technology and other resources are used to empower communities and nonprofit groups committed to helping people succeed in the digital age," says Patrick Gaston, president of The Verizon Foundation.

Develops Candidates

Marriott, No. 22 on the Top 50, began a foundation more than 15 years ago called Bridges, specifically targeting young people with disabilities. It has helped more than 9,000 young people with disabilities find competitive positions in more than 1,500 different companies, including jobs at Marriott.

What Marriott has learned from working closely with young people with disabilities is that "the businesses employ the young people because it's good for business," says Tad Asbury, executive director of Marriott Foundation for People with Disabilities.

Food Lion, the grocery-store chain, also has used its philanthropic efforts to help the company recruit diverse candidates. "As a founding partner of Bennett College's Johnnetta B. Cole Global Diversity & Inclusion Institute, we have access to interns, diverse talent and improved educational opportunities for women of color," says Eric Watson, Food Lion's vice president of diversity and inclusion.

Executives at Starwood, No. 33 on the Top 50, realized that giving to college funds for students of color provided the hospitality company a chance to pursue new opportunities with students after graduation.

Shelley Freeman, director of global diversity and inclusion at Starwood, explains that by building an early relationship with these students of color, Starwood not only increases the likelihood of employing this talent in the future but also creates the potential to "buy their goods and services if they go into business for themselves." Freeman adds that building this type of relationship helps Starwood to learn more about how its product brands connect with different cultures.

Starwood gives more than 50 percent of its philanthropic contributions to ethnic groups, including financial support to the Hispanic College Fund, the Thurgood Marshall Scholarship Fund and the MLK Foundation, all organizations helping students of color.

Increases Brand Recognition

Allstate, No. 23 on the Top 50, gives 75 percent of its philanthropic resources to ethnic and/or GLBT groups, which has created enhanced name recognition in these communities. By focusing a lot of its attention on organizations that promote diversity, such as Latino, black, Chinese and Native American nonprofits, Allstate is gaining new customers within these communities.

"Diversity drives higher performance, connects us to our customers and enhances our brand and corporate reputations," says Anise Wiley-Little, chief diversity officer at Allstate. "So naturally, a key focus area of our corporate and foundation giving is supporting organizations that promote diversity in the communities that they serve."

The same is true at Food Lion, which has partnered with several diverse groups to create a positive image of the company. The company's diversity partners include the NAACP, the National Urban League, minority supplier-outreach organizations, Bennett College for Women, and the sponsorship of the Central Intercollegiate Athletic Association, a conference of HBCUs.

"Our diversity and inclusion goals are to improve profitability, increase productivity and have a positive public image, making us the grocer of choice, employer of choice and an unsurpassed community leader," Watson says.

Increases Engagement

Employees who get involved in extracurricular community projects feel more connected to their companies, according to the companies surveyed by DiversityInc. The power of engagement can lead to numerous positive results, especially increased retention and productivity. Understanding this, Allstate has encouraged its employees to get involved with each other and their communities, resulting in more than 50 percent of Allstate employees participating in volunteerism, such as the Helping Hands program. In the past year, 27,353 of its employees (nearly 74 percent of its total work force) donated $9.5 million to the diverse communities in which they operate.

Strengthens Inclusion

Sodexho, No. 14 on the Top 50, believes that "helping those in our communities is essential to creating a culture of diversity and inclusion in our company," says Jennifer Williamson, senior director of strategic initiatives and communications. Sodexho's strong volunteerism effort and involvement in activities that directly serve its diverse communities have led to collaboration within its employee-resource groups and recognition by those in the company that diversity at Sodexho goes beyond platitudes.

Sodexho annually publishes a full report on its outreach progress. Sodexho also encourages its employees and network groups to contribute money and hours to causes that impact the diverse groups they represent, ranging from Asian Americans to gays to Latinos.

Donated funds to the Vocational Guidance Services (VGS) of Cleveland to support the training of people with disabilities for work-force development.

Why Do They Do It?

In giving, KeyBank has seen communities grow while experiencing positive growth as a company. Copeland agrees being regarded well in the community and being a relevant corporate citizen have enhanced brand recognition, but the greater reward has been seeing communities gain economic strength.

"As a bank, our interest is in the economic condition of the communities we live in, and financial investment and economic stability is important," says Michael Sherman, regional public-relations director. "A vibrant economy means people need banks, and we're in that business."

KeyBank recognizes the growing Latino population and has paid particular attention to northeast Ohio, where the Latino population has tripled in the last few years. With many in the Latino community still lacking financial literacy, providing student tuition and supplying literacy classes have helped families improve their economic situations.

Company: Deloitte & Touche

Business Type: Financial Services

Deloitte & Touche's philanthropic efforts revolve around the firm's core business--financial education.  

"Our community-involvement efforts are extensive, but they happen at a very local level," says Evan Hochberg, national director of community involvement at Deloitte, one of DiversityInc's 25 Noteworthy Companies in 2006. To ensure that Deloitte understands the diverse communities it serves, it charges full-time community staffers in each region to build relationships with various organizations and the community as a whole.

Where Is the Focus?

Deloitte wants to make an impact by applying the skills and assets of its employees to strengthen financial literacy. Deloitte does this mostly by going into urban schools and teaching families how to become financially secure.

What Do They Do?

Deloitte's Impact Day has nearly a 70 percent turnout of its employees, most from employee-resource groups. They spend a work day on 575 separate projects in 111 communities.  

Deloitte volunteers help New York City public-school students that are 95 percent people of color with business-simulation programs.

More than $1 million in staff time has been spent on mentoring programs at New York City high schools.

The tax-assistance program has served more than 1,000 underserved families and has resulted in more than $1.6 million returned to communities such as Atlanta.

Why Do They Do It?

Deloitte directly benefits from its efforts in education and talent development, even recruiting some of its current employees from such outreaches. "Our firm is driven by diverse and talented people," Hochberg says. "We need this steady pipeline of talent to recruit." The firm's volunteer efforts also foster an internal networking of employee-resource groups and help to engage employees from diverse backgrounds. "[Resource-group members] will often go out to do community service as a way to logically connect with each other," says Hochberg.

Company: Food Lion

Business Type: Supermarkets

With most of its stores in the Southeast, Food Lion needs to make connections with people of color.

Eric Watson, vice president of diversity and inclusion at Food Lion, believes partnering with numerous diverse organizations such as the Urban League and minority supplier programs, as well as giving back to its local communities, is a no-brainer for its business. "We clearly feel our customers, associates and communities make us a better business, so our support is easy to do," says Watson.

Where Is the Focus?

Food Lion keeps its main philanthropic focus on education and providing food for the hungry, and the best way to carry this out is by partnering with diverse organizations already implanted in the community as well as getting its employees plugged into its local community organizations.

What Do They Do?

Food Lion gave 22.8 million pounds of food, which is worth approximately $34.2 million, to Second Harvest affiliates in 11 states. Second Harvest is the nation's largest domestic hunger-relief organization.

In 2005, North Carolina Food Lion stores gave more than $1.5 million to Easter Seals, an organization that specializes in providing assistance to people with disabilities.

Why Do They Do It?

From working with people with disabilities to st