NATION
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Wednesday, January 21, 2004
Salvation Army to get record donation
c rom estate of McDonald’s heiress
By Hope Yen
THE ASSOCIATED PRESS
I WASHINGTON —The charity famous for its red Christmas ket-
Is is getting a record donation from the woman behind the golden
Iches.
I The estate of Joan Kroc, the McDonald’s heiress, said Tuesday it
■ giving an estimated $1.5 billion to the Salvation Army to build
Immunity centers across the country. It’s the largest single dona-
In ever given to a charitable organization.
I The Salvation Army, which promises “soup, soap and salvation,”
/; ^ a favorite of her husband, Ray Kroc, who died in 1984. He was
fcell-ringer for the charity in the 1950s and ’60s. “He used to bring
Iffee and hamburgers to kettle workers,” said W. Todd Bassett,
i;itional commander of the organization.
I The exact size of the gift won’t be known until administration of
vi >c’s estate is complete, which could take several months.
I “We are obviously thrilled, but genuinely humbled by the excep-
ii nal generosity of Joan Kroc,” said Bassett. “We recognize the
leep sense of trust she has placed into our hands with this gift.”
I The money will be used to build about 25 to 30 community cen-
e^ across the country similar to the Ray and Joan Kroc Corps
Community Center. That facility opened in San Diego in June 2002
it er a $92 million gift by Kroc to the Salvation Army.
I The 12-acre recreation and cultural arts center serves about 6,600
numbers, who participate in classes such as skating, swimming and
;\ nnastics. The goal. Kroc remarked at the time, was to create a
)L e where youths can reach their full potential and “learn of each
)ther.”
I Kroc was the widow of Ray Kroc, who founded McDonald’s
rorp. in 1955. A noted philanthropist, she gave away hundreds of
millions of dollars to promote world peace, education, health care
Id the arts.
I Mrs. Kroc died (3ct. 12 and bequeathed $200 million to National
Alblic Radio and $50 million apiece to peace institutes at the uni-
/e sities of Notre Dame and San Diego that bear her name. Other
organizations and charities also received millions of dollars.
■ Kroc’s gift to the Salvation Army is the ninth biggest ever to a
ii nprofit organization, the Salvation Army said. The largest ever
a; s Microsoft Corp. founder Bill Gates’ $6 billion donation in 1999
:o his own philanthropic group, the Bill and Melinda Gates
Fo nidation.
I The Salvation Army, which began providing services in 1880,
operates about 9,000 centers, including soup kitchens, addiction
etovery centers and disaster assistance shelters. Its leaders are
on ined ministers and receive about $50,000 annually in salary,
lousing and benefits, a spokesman for the charity said.
Salvation Army gets record donation
The estate of Joan B. Kroc, widow of the founder of McDonald’s
Corp., is giving the largest gift ever to a charity - $1.5 billion to
build and operate Salvation Army community centers across the
United States.
The Ray and Joan Kroc Corp
Community Center in San
Diego which
was built
from a $92
million Kroc
donation in
1998, is the
model for the
centers. Half
of the money will be used to
build the centers and the other
half will be used to set up an
endowment to operate them.
Other Joan B. Kroc estate
donations in 2003
National
Public Radio $200 million
Ronald McDonald
House Charities $60 million
University of
Notre Dame’s
peace-studies
institute
UC San Diego’s
peace-studies
institute
$50 million
$50 million
SOURCES: Salvation Army; The Chronicle of Philanthropy
AP
Kroc’s gift comes at a time when many charities are strug
gling to attract money. While donations are showing a bit of an
uptick following a l.2 percent decline in 2002, a strong pickup
in gift-giving isn’t usually seen until an economic rebound is
well under way.
“This is very significant,” said Stacy Palmer, editor of The
Chronicle of Philanthropy. “Organizations like the Salvation Army
don’t usually get big billion-dollar gifts. There have been cuts in
state and federal budgets — this is a group that relies on government
as well as private donations.”
The Alexandria, Va.-based charity took in about $2.3 billion last
year.
About 83 cents of every dollar donated, or $1.9 billion, is devot
ed to program services, according to the group. It has ranked in the
top third in efficiency of operations, according to the Chicago-based
American Institute of Philanthropy.
Bassett said Kroc’s donation specifies that half the money be for
construction of the new centers and the other half be placed in an
endowment, with the eamings used as income to partially support
the centers’ operations.
The charity estimates it will have to raise an additional $40 mil
lion to $60 million per year to fund the rest of the operational costs
for the centers.
None of the gift is to be used for existing programs, services or
administrative costs.
Legislators discuss whether students
Ire aware of financial aid options
By Matt Joyce
THE ASSOCIATED PRESS
■ AUSTIN — Texas legislators on Tuesday
juestioned whether students are getting enough
nlormation about financial aid opportunities as
le egulated tuition rates rise at some state
icliools.
■ “There’s $2 billion available every year to help
fe ;ans attend college, but many of our families
lon’t know that these funds are available to them
/in financial assistance,” said Rep. Roberto
jutierrez, D-McAllen.
■ As students cracked open their
Hiks to begin the spring semester,
nembers of two legislative higher
:ducation committees met with
inancial aid officials and school rep-
Jentatives from across the state.
■Don Brown, the state commis-
ioner of higher education, said the
'exas Higher Education
Coordinating Board has made an
Mirt to promote financial aid pro-
‘'jrains at high schools, on the
ntemet and with a toll-free phone
niprmation line.
fHCommittee members focused on
whether two specific state grants
rd fulfilling students’ needs: the B-
)n-Time loan program, a forgiv-
ble loan program established last
ear, and the Texas Grant program, which took
H:ct in 1999.
®Jlhe Texas Grant program is a need-based
cl olarship for students who succeed academical-
1 / n high school. At current funding levels, 19,000
li ;ible students will not be able to get first-year
n nts this year, and 30,000 next year, Brown said.
‘We are in a watershed moment for both pro-
u
Our job as a
Legislature is to
assure the citizens
that they're not
being gouged in
light of the
changing
circumstances.
— Royce D. West
Representative, D-Dallas
grams in respect to determining whether there can
be enough money committed to both of them,
allocated in the right ways, to make a real differ
ence in closing the gaps in providing education to
all of Texas,” Brown said.
Committee members also heard from state
schools that have increased their tuitions more
than would have been allowed before deregula
tion, or more than $46 per semester credit hour.
Representatives from the University of Texas,
Texas A&M, Houston, North Texas, Tech Tech,
Texas State and Texas Woman’s university sys
tems were scheduled to testify in
the hearing, which will continue
Wednesday.
Mark Yudof, chancellor of the
University of Texas system, said
that tuition increases were prompt
ed by a drop in state appropria
tions for general revenue of more
than 6 percent.
Different universities are experi
menting with incentives to encour
age students to complete their
coursework on schedule, thereby
freeing up financial aid dollars for
other students.
These innovations include a dis
count for courses taken during off-
peak hours at UT-Tyler and free
tuition for students who take more
than 14 hours at UT-Pan
American, he said.
Rep. Royce West, D-Dallas, said the commit
tee was trying to ensure that tuition increases are
in line with any shortcomings related to state
funding cuts.
“Our job as a Legislature is to assure the citi
zens that they’re not being gouged in light of the
changing circumstances in higher education,”
West said.
NEWS IN BRIEF
Perry appoints
Herring until 2009
AUSTIN (AP) — Gov. Rick
Perry has appointed James
Herring of Amarillo and reap
pointed Jack Hunt to the Texas
Water Development Board.
The state agency oversees
statewide water planning and
administration of financial pro
grams for water supply, waste-
water treatment, flood control
and conservation projects.
Herring, a graduate of the
University of Texas and
Harvard Business School, is
president and CEO of Friona
Industries, L.P., a cattle feeding
and livestock feed manufactur
ing company.
Hunt was appointed to the
board in 1998. He is president
and CEO of King Ranch, Inc, a
land-based multi-business
resource company.
Truck driver will
not face charges
FORT WORTH, Texas (AP)
— The unlicensed commercial
truck driver who hit a 4-year-
old riding his bike will not face
felony criminal charges
because the boy’s death was
an accident, police said.
But Paulo Cesar Ramirez-
Hernandez, 21, of Kepnedale
will be charged with two Class
C misdemeanors — one for no
commercial driver’s license
and the other for no operating
authority, police Lt. Jesse
Hernandez said.
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education, environment, health and VI
information technology. All majors are
welcome. Benefits include medical,
dental and housing, as well as a
monthly stipend and 24 vacation days a
year. Graduates can defer student
loans while serving.
Visit the TAMU Career Center
209 Koldus Building to pick up
a Peace Corps Catalog.
www.peacecorps.gov • 800.424.8580
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