[ ] The Salvation Army Receives $1.5 Billion Gift
The Salvation Army announced last month that it will receive a gift from the estate of Joan B. Kroc, wife of Ray Kroc, the founder of McDonald’s Corporation. The trustees of the estate have estimated that the gift could be in excess of $1.5 billion. The exact amount will not be known until the completion of the administration of the estate.
The gift by Mrs. Kroc has been specifically designated for the development of community centers across the country, similar to the landmark Ray and Joan Kroc Corps Community Center in San Diego opened in June, 2002.
“We are obviously thrilled, but genuinely humbled by the exceptional generosity of Joan Kroc. We recognize the deep sense of trust she has placed into our hands with this gift,” stated Commissioner W. Todd Bassett, national commander of The Salvation Army, and a member of the CMA board of directors. “Mrs. Kroc was a wonderful friend of The Salvation Army and we miss her. Her passion for children and families, and her hope for community peace will live on forever through this incredible gift.” Mrs. Kroc died on October 12, 2003, and the Army is among several organizations that have received bequests from her estate.
According to Commissioner Bassett, the language and conditions of this bequest are precise in directing use of the funds. Half of the gift is to be placed into an endowment from which the earnings will be used as income to partially support operation of the centers; the remaining half is to be used solely for construction of the new centers. None of the gift is to be used for existing programs, services or administrative costs.
CMA Management Monthly asked several CMA members to comment on this huge gift—and to share any counsel they would have for the The Salvation Army. (And according to Commissioner W. Todd Bassett, in a recent CMA board conference call, his phone has not stopped ringing since the announcement!)
Steve Woodworth, President, Masterworks, Poulsbo, Wash.
“Use the money for capital projects that will require their general donors to continue to fund the operations. This is a win-win for their current donors, whose gifts are leveraged by the big gift.”
Larry Yonker, Partner, The Elevation Group, Colorado Springs, Colo.
“Very quickly define for the public, and more specifically, your donor file, what this gift will allow you to do and how it will
make every other donor dollars more effective.”
Tom McCabe, CEO, KMA Direct Communications, Dallas, Texas (a CMA Founders Council member)
"First, I would convey that this is an answer to prayer and will be used for the development of community centers, in accordance with the wishes of the donor. And, second, this is a wonderful provision for a particular need, at a particular period of time. The faithful support of many, many friends in virtually every city and town in America is needed as always to continue the work of the Army to meet the special needs of thousands and thousands of children and families every day of the year.”
Devlin Donaldson, The Elevation Group, Colorado Springs, Colo.
“It is important to realize that the $1.5 billion received by The Salvation Army was not an unrestricted gift. The designation for the use of the gift was very specific. It would serve The Salvation Army very well to do as much publicity with the public, as well as their current donors, as possible regarding this designation and use it as a fulcrum – leveraging giving from regular donors knowing that the overall impact of the organization is dramatically increasing.”
Dr. Edward D. Berkey, President, Berkey Brendel Sheline, Akron, Ohio
“Be concise and consistent. Make it clear much of the money is restricted for construction and operation of the community centers, but the feeding, clothing and care of the needs happens because generous Americans from all walks of life pray and give.”
[ ] What We Could Really Use: More Management Training
Jim Galvin, Galvin & Associates, Winfield, Ill., sent us this wake-up call: “The appeal for leadership training is undeniable, making us feel good and sustaining the fantasy that we might become the next Jack Welch. What we could really use, though, is more training in effective management, which depends on a far more teachable set of skills.” (Kerry J. Sulkowicz, Fast Company, January 2004)
[ ] Leading Corporate Transformation
Bob Kobielush, president of Christian Camping International/USA, Colorado Springs, Colo., highly recommends, Leading Corporate Transformation: A Blueprint for Business Renewal, by Robert Miles, published by Jossey-Bass. If you don’t read the entire book, he said the first 72 pages are the most critical.
[ ] Loving Monday
Olan Hendrix, CEO of Leadership Resource Group, Powell, Ohio, recommends the book, Loving Monday: Succeeding in Business Without Selling Your Soul, by John D. Beckett. “He elevates work to the biblical level it really deserves.”
[ ] Putting Leaders on the Couch
“Putting Leaders on the Couch” is just one of many excellent articles in the January 2004 special issue of Harvard Business Review on what’s inside the mind of a leader. “One mark of a future leader,” writes Warren G. Bennis, “is the ability to identify, woo, and win the mentors who will change his or her life.” Bennis writes on “The Seven Ages of the Leader.” The newsstand price is $16.95, but you can also buy individual articles online at www.harvardbusinessonline.org.
