Wal-Mart Revises Charitable Donations for Optimal P.R. Impact

Wal-Mart’s charitable donations are a cheap way to get some positive publicity for a company that’s increasingly viewed as damaging to communities and local economies. It’s true that many boy scout troops and community centers have benefited from Wal-Mart’s charitable donations over the years. But the economic damage of Wal-Mart’s business practices far outweighs any check the company will ever write. Perhaps Wal-Mart is now facing a reputation crisis: the company announced today that it will be making fewer, but larger donations at the state level in hopes of attracting more publicity.

Bentonville : Wal-Mart revising donations [Arkansas Democrat Gazette]

Wal-Mart Stores Inc. is refocusing its charity to give it more punch.

America’s No. 1 corporate donor, Wal-Mart traditionally hands out thousands of small checks to Scout troops, food pantries and other local causes in Wal-Mart towns from coast to coast.

While store managers will still sprinkle those $ 500 checks around their communities, the Wal-Mart Foundation in Bentonville is now steering some dollars to state-level funding pools set up to make larger donations.

It’s also focusing more of its charity on a short list of national issues on which the company believes it can have real impact.

“I think Sam Walton said that if you’re not changing, you’re not going to be successful,” said foundation President Margaret McKenna, who replaced Betsy Reithemeyer last fall.

The new strategy complements the company’s traditional “ad hoc” way of giving to specific cases, McKenna said, by providing Wal-Mart the flexibility to make a dent on the high-priority causes it has chosen: education and the workforce, health care, and the environment.

The amount available in each state-level funding pool will depend on how many Wal-Mart and Sam’s Club stores that state has, McKenna said. She wasn’t sure how much that would be for Arkansas.

Wal-Mart’s moves come as more companies and individuals are laying calculated plans for their giving, said Bob Kenny, associate director of Boston College’s Center on Wealth and Philanthropy.

And if a company’s strategic giving plan aligns with its own image-building objectives, such as Wal-Mart’s attempts to “go green” or to counter criticism about the health-care benefits it offers its employees, then that is hardly unique, either, Kenny said. “We give to who we identify with,” he said. The National Committee for Responsive Philanthropy, which has previously criticized Wal-Mart’s giving as “more about corporate advertising than it is about helping nonprofits or communities,” had no immediate comment Tuesday.

Last year, Wal-Mart gave away $ 296 million in the United States and $ 41 million internationally, making it the top corporate giver of cash gifts, McKenna said. The total represents donations both from the foundation and directly from the company.

She said the company’s latest rounds of grants for education focused on students from 12 to 26 years old — particularly on improving high school graduation and college retention rates.

A $ 2. 3 million grant announced last month went to the Council of Independent Colleges in Washington, D. C., which will use it to help students who are the first in their families to go to college.

“It’s the largest grant we’ve ever received,” said council President Richard Ekman, which represents 580 liberal arts colleges. He said data show the smaller schools do a better job of keeping first-generation students in school.

Immigration and more demanding employment markets mean more first-generation students on college campuses, Ekman said.

He said the council, which applied for the Wal-Mart grant after “we became aware of the fact that Wal-Mart was changing its focus,” will distribute the gift to 20 schools that can show they are doing a good job with those students.

Wal-Mart says it and its foundation gave $ 67 million to education last year, $ 6 million for environmental issues and, including contributions from Wal-Mart customers, gave more than $ 39 million to local children’s hospitals across North America.

Posted by Alex Goldschmidt on Wednesday, March 19, 2008

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COMMENTS

“The amount available in each state-level funding pool will depend on how many Wal-Mart and Sam’s Club stores that state has, McKenna said. She wasn’t sure how much that would be for Arkansas."------------------------------------Now, this IS intrguing. State level funding pool? I wonder if the number of stores per state is reflective of whether or not that partiular state has combined reporting for state taxes? Do the states without combined reporting,which closes the REIT and royalty tax (Geoffery Loophole) ,have more stores,or less stores? Either way,when tax loopholes are used by WalMart to avoid giving states their rightful amount of sales taxes,this new manner of charity contributions could be an inducemnet to keep states from going to combined tax reporting...and closing the far more lucrative loopholes.

ddrb in
Wednesday, March 19 at 08:03 PM

I knew it, I knew it, I knew it!!  Not too long ago, people on this site, complained that Wal-Mart wasn’t giving enough to charity, now, Wal-Mart does and the responce is “Wal-Mart’s charitable donations are a cheap way to get some positive publicity for a company”!!

Then, ddrb, questions the method of dispersement, how typical!!  With this crowd, Wal-Mart can NEVER do anything right, no matter what they do!!

“America’s No. 1 corporate donor”

They give the most to charity, but, it’s not enough, right?

RDS in
Wednesday, March 19 at 10:29 PM

Years ago when I did some quick checking concerning Wal-Mart’s giving, I discovered something interesting. Most of their giving was to a fund that gave tons of money to Republicians. Why? Well, Republicians just love big business, and they love Wal-Mart.
Recently, I was in a Wal-Mart, and no it was not to go shopping. I stopped shopping there years ago. Anyway I saw their bulletin board which featured all their local contributions. I couldn’t believe HOW LITTLE they gave to the area. A few organizations received as little as $500.00. My thought was if I was that big of a corporation, I wouldn’t give so little and then HAVE THE NERVE TO BRAG ABOUT IT.
Wal-Mart, always cheap, always.

Jane in N.Y. in
Thursday, March 20 at 10:13 AM

Blame the decline in local newspapers and local TV. If you can’t get the publicity in the town where you are making the donation, why do it?

The sign of a donation that is done for truly altruistic reasons is one that is given anonymously.

robertdfeinman in Long Island, NY
Thursday, March 20 at 10:38 AM

rdf:The decline in local newspapers and T.V. has worked to WalMart’s advantage in another way,also. There is less coverage of site fights,or crime in the parking lots, or violations of environmental issues germane to the areas in question. Buying local advertising was once one of the ploys used by WalMart to “sell” their stores to a community. This was again,more rhetoric,as Wal Mart rarely bought local print ads...they print their own circulars,even using WalMart employees in the ads to avoid paying for models.(BTW,they stopped doing that.)

ddrb in
Thursday, March 20 at 11:16 AM

““America’s No. 1 corporate donor”

They give the most to charity, but, it’s not enough, right?”

RDS in

So where is the number 1 when it comes to paying their workers Bob? All of a sudden the pot went dry?
Walmart is just one publicity game after another.
I am amazed how many press releases they do here just to try and get free advertising in the media. The fact is this game is only going to go on for so long. They will not keep fooling the people.

R E M E M B E R
J O N Q U I E R E
Q U E B E C
Home of Walmart Worker Abuse

R E M E M B E R
J A C K S O N V I L L E
T E X A S
Home of Walmart Worker Abuse

Alex in Ontario, Canada
Thursday, March 20 at 05:19 PM

Alex,here is an interestring excert from the Nation,2005:-----Communities where Wal-Mart faced a particular battle over opening a new store--Inglewood, California, or New York City--enjoyed especially generous largesse. Like the flowers and other tokens of courtship from a suitor who later becomes a wife-beater, such gifts are often followed by demands for public subsidies and tax breaks. In this way Wal-Mart is repeating the strategy that has served it so well in Arkansas, where Wal-Mart and the Waltons’ charitable gifts are many and company critics are relatively few. Says Lindsay Brown, president of the Central Arkansas Labor Council, “It’s a hell of a plan, and it works.”

We are supposed to applaud philanthropy--the very word connotes altruism and “giving back"--but Walton and Wal-Mart giving serves as a reminder that philanthropy provides an alternative to taxation, a way for rich people and corporations to decide what to do with their extra money, as opposed to letting the rest of us decide through our elected governments. Since charitable donations are a tax write-off, as Krehely points out, “they are supposed to benefit the public good.” He thinks it is reasonable to ask whether a family’s--or a company’s--philanthropy serves the common good, or at least enough good “to make up for the public revenue that we’re losing.”

Funny he should mention taxes: Wal-Mart and the Waltons have, after all, been notably reluctant to pay them. Not only has the company lobbied for tax breaks in communities all over the nation, the Waltons--the family that former Wal-Mart board member Hillary Clinton has called “the best America has to offer"--have campaigned vigorously against the estate tax. They have donated money to its opponents, Republicans like John Thune of South Dakota and David Vitter of Louisiana, and enlisted one of Washington’s top lobbying firms, Patton Boggs--a leading anti-estate tax lobbyist--to represent their interests.

In addition to campaigning specifically against the estate tax, the Waltons also give money to groups that generally favor tax giveaways to the rich, like Americans for Tax Reform. And the Waltons have already reaped the benefits of tax policies enacted by the conservatives they helped put in office: This year Bush’s dividend tax cut will save the family $51 million, according to Lee Farris, an estate-tax expert with the Boston-based United for a Fair Economy.

The Waltons’ philanthropy--and their hostility to paying their fair share of taxes--also needs to be viewed in the context of tax subsidies Wal-Mart has received for building new stores, which Good Jobs First places at more than $1 billion, an estimate that does not include the many other ways taxpayers subsidize Wal-Mart stores, for instance, through numerous forms of public assistance--Medicaid, Food Stamps, public housing--that often allow workers to subsist on Wal-Mart’s low wages.

Since the Waltons don’t say much about their future plans, or about their internal family politics, it’s unclear what lies in store for this--currently--right-wing fortune. 

One item in the Walton Family Foundation’s most recent IRS filing shows how uninterested this family is in true social responsibility: a measly $6,000 to something called the Wal-Mart Associates in Need Fund. Contrast that with the millions the family spends promoting right-wing causes, and it becomes painfully clear that the Waltons value conservative ideology far more than they value the human beings who have made them the richest family on earth. Told about these figures, Kathleen MacDonald, a Wal-Mart candy department clerk in Aiken, South Carolina, responded bluntly, “All I have to say about that is, it doesn’t surprise me. Like Bush, they don’t have a clue what working families go through.” MacDonald would like to see The Simple Life do a show about working at Wal-Mart. “I could see Paris Hilton on a register at Christmastime, or stocking shelves,” she says. Or perhaps Alice Walton as a greeter, on her feet all day, thanking us for shopping at Wal-Mart.

ddrb in
Thursday, March 20 at 08:36 PM

Thanks ddrb. Everything is so calculated these days!
If Alice Walton does become a greeter [at Walmart], will she still be able to wear the big ugly hats that make her look ridiculous?

R E M E M B E R
J O N Q U I E R E
Q U E B E C
Home of Walmart Worker Abuse

R E M E M B E R
J A C K S O N V I L L E
T E X A S
Home of Walmart Worker Abuse

Alex in Ontario, Canada
Friday, March 21 at 11:22 AM

Alex: Think it woud really make a difference?

ddrb in
Friday, March 21 at 02:40 PM

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