The Key West citizen., 1952-06-17
Todoy's
Business
Mirror
BY SAM DAWSON


worthy causes can run into a heap
OF money - as most businessmen
know. And screening the most
worthy - and saying mo" without
losing friends - can be a major
headache for many companies.
Corporate contributions for char
table, health and educational pur-
poses are estimated to run around
800 million dollars a year now,
five times what it was 10 years
ago.
This means that the nations cor
porations as a whole are giving
about three fourths of one per
cent of their profit before taxes,
Even SO, the federal income tax
law leaves room for contributions
to grow. The law permits deduc-
tons for donations up to five per
cent of profit before taxes. At the
present rate of corporate earnings,
this five per cent could be around
two billion dollars.
But if the u. S. Treasury should
lose such money donated for char
liable, health and educational pur-
poses, so would the stockholders.
And they have to be sold on the
worthiness of the causes aided.
Increased contributions in the
future - and many businessmen
concede that they win increase
viii sprout from many reasons:
l. The growing needs of an in.
creasing population and expanding
social programs, plus the swelling
costs of operating charitable or
ganizations.
2. The increasing awareness by
businessmen of community respon-
s'bility.
3. The shrinking of private for
tunes (once the mainstay of char
ity) under income and Inheritance
taxes, which make corporations the
main source to which organizations
can turn.
Some companies meet the prob
lem of how to give by setting up
foundations for the purpose. Ford
and Sears. Roebuck are examples.
Others set up annual contribu-
ton budgets. And some, like Jer.
sey Standard Oil, take the burden
off the shoulders of top executives
by setting up a committee of Off
cials with a full time executive
secretary. This committee submits
contribution budget annually to
the board of directors.
The secretary, Claude L. Alex
ander, explained to a meeting of
the National Industrial Conference
Board how the Jersey Standard
plan works.
The committee classifies organ
izations. reviews the work they do,
and appraises the benefit to Jersey
Standard, direct or indirect, that.
contributions to them might bring.
The size of the donation is deter.
mined by a number of things, in.
cluding these three:
/. Establishing the company's
advantage from funds given edu.
cational institutions for research
closely related to the oil company S
activities.
2. Determining that contributions
to hospital funds and recreational
facilities are used in areas where
major plants are located, and that
the employees will make substantial
use of the facilities.
3. Supporting those charitable or.
ganizauons that are highly regard.
ed in the community.
For donations to organizations
engaged in research and public
education on national and interna.
uonal economic problems, the
company has these rules of thumb:
The organization must be really
helping solve problems of the day.
1t must earn and hold the attention
OF top leaders of business. govern
ment and education. And, in turn,
the leaders thus reached should
be influencing public opinion and
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