Despite tough times, retailers are giving more to charity

— -- Double-digit sales declines notwithstanding, retailers have shown this is the season of giving after all.

Often-empty sales floors have made some stores look a bit like charity cases themselves lately. The pre-Christmas discounting was at levels not seen in decades, and store closings have become chillingly commonplace. But retailers have been pulling out all the stops to be charitable.

Turns out, it's a smart business move, along with a socially responsible one. More than 75% of 1,100 consumers polled in August said companies should still support social or environmental causes and non-profit organizations during an economic downturn. In the survey, by Opinion Research for cause-marketing company Cone, respondents said businesses should give as much as ever — or more.

"There's an expectation that companies better pay up," says Marian Salzman, a trends expert and chief marketing officer at Porter Novelli Worldwide. Consumers "want the retailers and brands to be accountable to the community but feel broke themselves."

The Chronicle of Philanthropy's annual report on corporate giving, out in August, looked at charitable giving by the top 150 companies in the Fortune 500. Of 11 retailers on the list that provided information, Target, Wal-Mart, Home Depot and Costco said they planned to increase giving this year, and the others said theirs would remain the same.

"There's no formula that says when profits are up, giving is up and when profits are down, giving is down," says Margaret Coady, director of the Committee Encouraging Corporate Philanthropy. "There are many factors that determine giving, including the commitment that companies have to communities and non-profit partners."

A few factors are making retailers more charity-focused:

•Retail charitable giving and cause marketing is increasingly resonating with consumers. Even as they cut back on their own spending, consumers increasingly say they are more inclined to buy cause-related products or support retailers who help the needy. When asked if they had to choose between two gifts priced the same and of similar quality, 77% of 1,070 people polled said they'd pick the one supporting a cause, according to a November 2007 survey by Opinion Research for Cone.

The gifts sold at Things Remembered that include a $2 donation to the Make-A-Wish Foundation are among the stores' top sellers. Boosting the sales: the story of Elysia Bryan, who in 1997 made a wish before she died of cancer that she could give her family and friends personalized gifts saying, "Thank you, I love you, and always remember me." That led to a program that has raised more than $5.5 million since 1998 and helped 750 kids.