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Wal-Mart's charitable giving growth rate declines

Zac Bissonnette — Tue, 26 Feb 2008 17:32:00 EST

Filed under: Wal-Mart (WMT), Berkshire Hathaway (BRK.A)

Wal-Mart Stores, Inc. (NYSE: WMT) has done a lot to improve its image in recent months, but this latest bit of news might not help. In 2007, the Bentonville, Arkansas company increased its charitable giving 8% to $296.2 million. The company's giving grew 10% in 2006 compared with 19% in 2005, a spike inspired by Hurricane Katrina.

I'm sure Wal-Mart critics -- whom I frequently agree with -- will criticize the slowing growth, but I disagree. The problem with corporate philanthropy is that it's the shareholders' money. It would be far better, I think, if companies did little in the way of charitable giving, and focused on providing shareholders with strong returns, letting them decide what to do with their money.

Too often, philanthropy by public companies focuses on the pet causes of executives. To Wal-Mart's credit, the USA Today reports that "Most donations were made locally by the more than 4,000 Wal-Mart and Sam's Club stores to charities they pick. Wal-Mart said U.S. donations went to organizations including the National Teacher of the Year program, hospital aid group Children's Miracle Network, The Salvation Army, United Way and food bank America's Second Harvest."

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Wal-Mart's charitable giving growth rate declines originally appeared on BloggingStocks on Tue, 26 Feb 2008 17:32:00 EST. Please see our terms for use of feeds.

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Warren Buffett's charity can be replicated (sort of)

Sarah Gilbert — Wed, 05 Jul 2006 18:05:00 EST

Filed under: Consumer Experience, Newspapers, Berkshire Hathaway (BRK.A)

We all know that you don't have money like Warren Buffett does (unless you is Bill Gates, and then you're probably not wondering about this, now are you?). But that shouldn't prevent you from giving money the same way he does. Even if it's a lot less money, it's still fun to use the same buzzwords.

And this buzz phrase, from the Wall Street Journal today [subscription required]: "giving while living." Often called "charitable gift annuities" after one of the most popular forms of high-dollar charity, the sort of thing Warren Buffett has done with his substantial fortune is really quite common. Other than the value of seeing the reaction to your largess while you're still alive to have an ego, there are tax and control benefits to giving while living (one: "you can keep an eye on how your legacy is fulfilled," according to NYU professor Jan T. Vilcek).

We non-billionaires can get more satisfaction, too, from getting involved in the charities who receive our substantial living gift. "It's the opposite of just saying, 'Here's the check, good luck,'" says one charitable advisor. Think of it as the non-profit answer to a venture capitalist -- you can provide both funds and strategic assistance.

Warren Buffett's charity can be replicated (sort of) originally appeared on BloggingStocks on Wed, 05 Jul 2006 18:05:00 EST. Please see our terms for use of feeds.

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