Wal-Mart Funds Hometown Charities
by July 9, 2001 12:00 am 72 views
The Wal-Mart Foundation has grown by a multiple of about 500 since it was established in 1979 by Sam Walton, David Glass and Jack Shewmaker.
That first year, the foundation gave a total of about $200,000, and all of it went for scholarships.
In the fiscal year ended Jan. 31, the foundation spent about $100 million on a variety of projects, including $7.3 million on scholarships, said Betsy Reithemeyer, director of the foundation.
That $100 million is part of $190.3 million that the company classifies as “community involvement,” meaning about half of the $190.3 million was raised through managers and employees at the store level.
Walton died in 1992. Glass and Shewmaker are still on Wal-Mart’s board of directors. Glass, Donald Soderquist and Rob Walton are the foundation’s trustees. Rob Walton, Sam’s son, is chairman of the Wal-Mart board. Soderquist retired last year from his position as senior vice chairman at Wal-Mart after 20 years with the company.
Reithemeyer said Wal-Mart releases money to the foundation as it develops programs for which funding is needed. So the foundation basically spends all of the money it receives each year and has no endowment. The numbers above pertain to calendar 2000. Our list on Page 23 reflects the foundation’s finances for 1999 because the list is based on income tax records, and 1999 is the last year for which the records are available.
The Wal-Mart Foundation shouldn’t be confused with the Walton Family Foundation, which has about $1 billion in assets and primarily funds education. The Walton Family Foundation gave $50 million in 1998 to the University of Arkansas business college, which in turn was named for Sam Walton.
The foundation doesn’t accept unsolicited proposals, Reithemeyer said.
Reithemeyer said almost all of the money raised through an individual store stays in that community.
About 97 percent of the foundation’s funding initiatives are directed by Wal-Mart Stores, Sam’s Clubs and distribution center associates in their own communities, Reithemeyer said.
“We also believe that being involved means more than making financial or material contributions,” the foundation’s Web site states. “We strongly encourage our associates to be involved in the community by seeking out volunteer opportunities. The majority of our community involvement programs require our associates to assist community non-profits by helping raise funds. It is rare that we fund national or regional causes. When we do support national causes, we require that funds stay in the local community to benefit the area where they are raised.”
Wal-Mart’s Community Involvement for 2000
Community Matching Grants* — $71,365,980
Children’s Miracle Network* — 31,195,296
Store Contribution Account — 20,432,657
United Way* — 19,391,752
World War II Memorial* — 14,751,360
Other Donations — 9,510,057
Scholarships — 7,365,342
Holiday Charitable Contribution — 5,200,000
In-Kind Contributions — 3,145,186
Make A Difference Day — 3,024,752
Economic Development — 2,132,001
Teacher of the Year — 1,513,000
Environment — 1,302,817
TOTAL — $190,330,200
* Indicates a category amount that includes money raised through individual stores. In the case of Community Matching Grants, Reithemeyer said, more than 50 percent of the funding came from the corporation. In all categories without an asterisk, the total amount was contributed by Wal-Mart as a corporation.
Source: Wal-Mart Foundation.