Measuring the total community investment
Experian measures its input to community investment using the methodology established and promoted by the London Benchmarking Group and Business in the Community. The total figure is calculated from a sum of cash donations and other costs, and then expressed as a fraction of the Group’s benchmark profit before tax* according to the formula below.
Percentage = (Cash + Volunteering + In-kind + Management) / benchmark profit before tax
In the year ending 2006, this total was £1.77m representing [0.2%] of the Experian Group’s reported benchmark profit before tax. This figure has been calculated using a pro-rated share of the total GUS donation to the GUS Charitable Trust.
| 2006 | 2005 | 2004 | 2003 | |
|---|---|---|---|---|
| Contribution to the GUS Charitable Trust | £560,000 | n/a | n/a | n/a |
| Employee volunteering | £126,000 | £60,000 | £65,000 | £80,000 |
| Gifts in-kind and donations | £262,000 | £163,000 | £69,000 | £41,000 |
| Other costs of community programmes | £825,000 | £669,000 | £210,000 | £187,000 |
| Total | £1,773,000 | n/a | n/a | n/a |
The table above illustrates the inputs to Experian’s community affairs work, but it is also important to consider the outputs in terms of benefits – both to the community and to Experian’s operations. Each major project is carefully evaluated to understand those benefits before, during and after support. The case studies that follow illustrate just two examples of how Experian has provided community benefit through its work.
* Benchmark profit before tax is defined as profit before amortisation of acquisition intangibles, goodwill impairments, charges in respect of the Demerger related equity incentive plans, exceptional items, net financing costs, financing fair value remeasurements and taxation, and includes Experian’s share of pre-tax profits of associates.