The most generous companies in America
Two supermarket chains and Macy's give the biggest chunk of pre-tax profits to charity. But add it up another way, and Wal-Mart and Goldman Sachs rise to the top.
By Susan Adams for Forbes
At a time when Occupy Wall Street is shining a light on greed in America, some companies make a point of donating a significant chunk of their profits to charity.
Example: In 2010 Kroger (KR), the Cincinnati supermarket operator, gave away 10.9% of its $589 million in 2009 pre-tax profits, amounting to $64 million.
Kroger tops an annual list put together by The Chronicle of Philanthropy. The magazine tracks corporate giving through a survey it sends to 300 of the nation’s largest companies by revenue. This year, the Chronicle compiled data on 180 companies, culled from survey results and tax forms.
In 2010, total cash donations by the group rose 13%, to $4.9 billion, a boon to nonprofits after the recession resulted in a 7.5% decline in giving in 2009.
- At Forbes: The 10 companies that give back the most
The Chronicle helped Forbes put together two lists. The one we think is most meaningful names the companies that are most generous in their cash donations as a percentage of pre-tax profits. Kroger tops that list. According to the company's vice president of corporate affairs, Lynn Marmer, $40 million of Kroger's cash giving flows through a 15-year-old community rewards program, whereby shoppers who carry Kroger's loyalty cards name a local charity they want to support. Kroger then gives 2% to 5% (determined by local stores) of each shopper’s bill as a cash contribution to the school, church, or community group chosen by the customer.
Macy's (M) comes in second on that list; it gave away 8.1% of 2009 profits in 2010, or $41 million. The third most generous: Safeway(SWY), the Pleasanton, Calif., supermarket chain, which gave away 7.6% of 2009 profits, totaling $76.5 million.
The raw cash numbers
The second list shows companies that gave away the most cash as a raw number. Wal-Mart Stores (WMT), which donated $319 million last year, tops that roster. Given that the Bentonville, Ark., retail colossus had pre-tax profits of $22 billion in 2009, its charitable cash donations came to just 1.45% of that sum.
Wal-Mart maintains that it is also giving away products and expertise. Last year it announced a $2 billion five-year effort to fight hunger. But most of that donation will be in food and only $250 million in cash. Food and other product donations are meaningful but tough to measure, since corporations and the Chronicle survey measure product-giving in terms of fair market value, while the cost to the company of such donations is far lower. For that reason, we focused our lists on cash giving.
Second on the list of companies that donated the most cash in 2010 is Goldman Sachs (GS), which increased its contributions by more than threefold to $315 million at a time when its pre-tax profits dropped 35%. Critics have voiced skepticism about Goldman’s generosity, suggesting it may be a way to fend off the criticism of its actions during the liquidity crisis. In April, a Senate panel issued a report accusing Goldman of betting against the mortgage assets it was pitching to clients.
But Goldman officials have said that planning for the three projects responsible for its giving surge was in the works before the financial meltdown. One, a donor-advised fund that takes contributions from firm partners who then recommend charity recipients, was announced in November 2007. Goldman also has a program to help female entrepreneurs in the developing world, called 10,000 Women, announced in March 2008, and another, 10,000 Small Businesses, that aids small enterprises in the U.S., announced in December 2009.
Wells Fargo (WFC) is third on the raw cash list, with $219 million in 2010 donations. A recipient of $25 billion in government bailout money in 2008 which it repaid in 2009, last year the company boosted its giving by 8.5% over 2009. However it didn’t restore donations to the $226 million it gave in 2008, the year it merged with Wachovia.
The Chronicle also asked survey respondents about their giving plans for 2011, and most said that donations would remain steady. Of the 103 companies that responded to this query, 71 said they would keep their cash giving at the same levels as 2010.
Lynn Marmer of Kroger, which supports food banks through a hunger charity called Feeding America, says Kroger’s giving level has remained flat in 2011, though she says the company has seen a hike in demand by the food banks it supports. Kroger donates both cash and food that Marmer says is the equivalent of 125 million meals a year, to food banks. "Food stamps only provide about a half a month’s worth of food," she points out. "Food pantries have seen their volume not just double but quadruple."
Related at Forbes.com:
VIDEO ON MSN MONEY
It is odd to me that people would frown on workers making a livable wage, what is there to frown about?
I work for a family owned company not a large corporation and not one person here makes minimum wage. Everyone here works hard, cares about the customer and a quality product goes out the door. If the employee does not live up to that they are let go (no union reps here).
This has worked well for the last forty years the company makes a very nice profit. Everybody benifits, the owners, employees and the customer.
When I find a business that lives up to this standard I support them even if it means a little higher price for me. I would rather have less "stuff" than buy cheap crap from cheap companies, that in my opinion does harm to our community.
I'll speak up for Kroger, AT St. Jude Childrens Research in Memphis, Kroger donates shopping gift cards to families that are down there with their children. Some families are there for years on end treating their kids and Kroger's is a huge part of helping save lives. Without such generosity on thier part the strain on the families trying to save their children
would be monumental.
Thank You Kroger, I'm a St. Jude Partent myself.
Wal-Mart, always low wages, dismal health benefits. And, why do you fund life insurance premiums for employee's - who's the beneficiary?
Yeaa...you donate your share of "pre-tax"(tax-deductible) community (P.R.) $'s.
My mother taught me that charitable giving stats at home. You've got 100, 000 employees. Why not spread some of your $400 mil in ex-ternal givng, too the employees that helped you make it!?
I am sorry this does not warm my heart! If these same companies would stop cutting benefits (Wal-Mart) and pay their employees a livable wage then perhaps they would not need to give to so many charities. Oh but these "generous" donations are probably pretty good tax write offs. I could be wrong as I am not a corporate tax lawyer. (though the article did say these are pretax dollars)
Just pay people enough to live on so they do not have to stoop to handouts. I will not shop anywhere that does not respect their employees.
I would make sure my people are paid extremely well before I start giving the money away. Believe me you don't make much at any Grocery store.
The Kroger company focuses its charitable efforts on supporting hunger relief, health and wellness initiatives, and local organizations in the communities it serves. The company also supports our Troops. Walmart does all the same. But, what about the employees?
I stand by Kroger because I work for them. My mother worked for Walmart making a crappy $8.50/hr. I made $9.50 doing the same thing at Kroger back home in New Mexico. Hopefully more now that I live in Texas. That little dollar makes a difference. I also get more hours. I actually like going to work because the company makes me feel like I actually matter. I've also recieved bonuses here and there.
For a 20 year old such as myself that's not bad in my book. It'll help with school.
have you ever been asked to give a donation to a cause when paying for your merchandise or groceries while shopping? just know, while it is admirable that you may do so and it probably is good for the recipients of the donations that big stores are asking you, when you give via a large store, for example Safeway groceries (they always ask), it is safeway credited in publicity and large write-offs for your donations. Many of the donations these companies are credited with are not necessarily part of donations from true earnings but are are your donations. If you just donated regularly from your own home to the same organization, it is you credited with it and not a third party. They save a big chunk of money when they donate your donation when they file taxes. With that said, I am sure they collect more money through persistantly, dilligently asking for the donations via the millions of shoppers they attract and I don't want to say anthing to detour from that. I only wish the data pertaining to THEIR donations was broken down to reflect what others have contributed...and maybe a holiday turkey @ the end of the year, which you can choose to donate if you like, since you won't be writing it off. Maybe some donations done in this manner are written off by the individual but my spidey senses tell me otherwise.
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[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.
The final week of August represented one of the quietest stretches for the stock market so far this year. The first four sessions of the week produced the ... More
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