DETROIT, Oct. 13, 2014 -- Auto dealers continue to increase their level of giving to charitable causes, according to new survey data from the National Automobile Dealers Association (NADA) and Ally Financial.
More than 70 percent of new-car dealers surveyed in September said they increased their charitable giving in 2014, up from 65 percent last year. About 43 percent of dealers said they expect to increase their contributions again in 2015, up from 39 percent in 2013.
The bulk of this giving is staying in dealer's local communities, as nearly 90 percent of dealers said their contributions go to supporting community service and local organizations. More than 65 percent of dealers surveyed said they organize staff volunteerism opportunities in their community.
"Franchised new-car dealers are among the largest supporters of community-based programs and charitable organizations in most towns across the country," said NADA President Peter Welch. "New-car dealers support their local communities in many ways—from creating well-paying jobs, generating significant revenue in taxes to providing other economic benefits. It's difficult to keep track of the level of charitable involvement because so many dealers do not seek publicity or recognition."
"Dealers see the value of giving back in a variety of ways – from their businesses, to their communities and beyond," said Tim Russi, president of Auto Finance for Ally. "Auto dealers are leaders in their communities, and their giving often inspires others to make a difference as well, which pays dividends for all."
The survey results were part of NADA and Ally's annual Dealer Charitable Survey for 2014. Results also showed:
- Nearly 50 percent of dealers gave more than $25,000 to nonprofit organizations and charitable causes in 2013, with 13 percent giving in excess of $100,000.
- Dealers surveyed donated or lent out approximately $4.5 million worth of vehicles for charitable causes.
More than 97 percent of dealers surveyed said that engaging in community outreach or giving back efforts enhances a dealership's reputation. Nearly 90 percent agreed or strongly agreed that supporting nonprofit organizations has helped to promote and drive awareness of their business within their local community.
Welch added that aside from the countless donations from individual dealers in cities across the U.S., thousands of NADA members are involved with the National Automobile Dealers Charitable Foundation, which supports numerous causes and organizations.
*NADA and Ally Financial conducted a random sample survey during September 2014 and received about 310 responses from U.S. dealer principals. Survey questions focused on dealer levels of involvement in charitable giving and volunteerism in communities. References to 'dealers surveyed' refers to a percentage of the 310 responding dealers. Statistical relevancy +/-5.5 percent.
About National Automobile Dealers Charitable Foundation
The NADA Foundation, established in 1975, is the philanthropic arm of NADA. Funds contributed by new-car and -truck dealers and friends of the industry provide financial support to schools, hospitals and private colleges, as well as emergency disaster relief, support for Canine Companions for Independence and other community service programs. For more information, visit www.nada.org/charitablefoundation.
NADA represents 16,000 new-car and -truck dealerships with about 32,000 domestic and international franchises. For more information, visit www.nada.org.
About Ally Financial
Ally Financial Inc. is a leading automotive financial services company powered by a top direct banking franchise. Ally's automotive services business offers a full suite of financing products and services, including new and used vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans and vehicle remarketing services. Ally Bank, the company's direct banking subsidiary and member FDIC, offers an array of deposit products, including certificates of deposit, savings accounts, money market accounts, IRA deposit products and interest checking. Ally's Corporate Finance unit provides financing to middle-market companies across a broad range of industries.
With approximately $149.9 billion in assets as of June 30, 2014, Ally operates as a financial holding company. For more information, visit the Ally media site at http://media.ally.com or follow Ally on Twitter: @Ally.
NADA Public Affairs