Sam and Company

Now then, having straightened out the Mormon Church—rescind that excommunication, boys!—I can get right down to work on the Walton family.

Full disclosure: I worked for seven years for Wal-Mart, and was treated well, even when they decided to cut me loose (they gave me a severance package that was not legally required). And though someone once described founder Sam Walton as “the world’s nicest guy until he gets down to putting you out of business”—well, why not? This is business, guys, not a Sunday school class: do you think Macy’s isn’t going after Bloomingdale’s?

There were things I liked about Sam. He squeezed that dollar till the eagle squawked, once picking up a muffler he found on the side of the road, since he was mufflerless himself at the time. Did the guys at the shop sigh heavily, throw the damn thing away, install a new one, and never tell Sam? Think that’s how that story went….

There were the reporters who asked why he was still riding around in the famous red truck, which sits squarely in the Walton museum, or visitors’ center, or whatever it is. “Get a decent car, for God’s sake, Sam!” His response? Something like where was he gonna put his four hunting dogs in a Rolls Royce?

Well, I was thinking about all this yesterday, when I read an article Susan had sent me about the Walton Family Foundation. True, it’s from a website called Liberal America, which tells you right off the bat what song this choir will be singing, but the question is: is it true? Because the headline reads:

New Report Suggests Walmart Heirs’ Foundation Is A Massive Tax Dodge

Ouch! And a further ouch when I read this:

An analysis of 23 years of foundation tax returns revealed that Sam Walton’s heirs only gave only 0.04 percent of their combined net worth to their own foundation–not even a fraction of what other wealthy Americans give to charity.

The article goes on to say that Bill Gates and Warren Buffett give over 36% and 27%, respectively, of their net worths to charity. And Rob Walton? You know, chairman of the board, Sam’s eldest son? He hasn’t given anything.

OK—let’s let Walmart speak:

Sam Walton believed in the power of opportunity to change individual lives and communities, and that anyone through hard work and determination can achieve the American dream, something he personally experienced. His wife, Helen, understood the importance of giving back. In fact, one of her favorite sayings was “It’s not what you gather, but what you scatter that tells what kind of life you have lived.” Their combined vision has led the Walton family to contribute more than $5 billion to charitable organizations and causes and continues today to drive the work of the Walton Family Foundation. 

In 2013, the foundation invested more than $325 million in K-12 education reform, freshwater and marine conservation and quality of life initiatives in our home region. Family members carried forward a philanthropic approach of sustained and focused giving, believing that it is the key to achieving lasting change, and they continue to challenge the foundation to find new, innovative solutions as well as measure impact from the individual grant level to the effectiveness of overall strategies.

Here’s a view from the middle, Forbes Magazine:

The Walton family is America’s richest, worth some $140 billion between them and longtime fixtures of the Forbes 400 list thanks to their approximate 50% ownership of Walmart, the world’s largest retailer.

Their Walton Family Foundation, established by the late Sam and Helen Walton in 1988, is considered a heavyweight in the world of nonprofits with just under $2 billion in assets.

Granted, the Forbes article was based, as was Liberal America’s, on a report by the Walmart 1%, which is a project of Making Change at Walmart, which doesn’t sound rabidly pro-Walmart. But it’s still Forbes, which presumably vets things….

All right, how does the Walmart Family Foundation match up with other foundations? According to Wikipedia, the world’s largest fund is something out of the Netherlands called the Stichting INGKA Foundation with a cool thirty-six billion. Next up are Bill and Melinda's, with 34.6 billion. And the Walton Family Fund?

Not on the list…

Yes, that list only covers the top 31 (no idea why they chose that number…) and number 31, with 3 billion—that’s a billion more than Walton—is the Kresge Foundation.

Kresge?

Could it be?

Run back to Wikipedia:

In 1924, with an initial gift of $1.6 million, Sebastian Kresge established The Kresge Foundation in Detroit. Twelve years earlier, he and partner John G. McCrory opened the first 5-and-10-cent store, and parlayed the concept and operations into a chain of stores that were incorporated as the S.S. Kresge Company. Many years later the enterprise became known as Kmart.

What would Sam think?