Despite a net worth of nearly $140 billion, a new report released by the Walmart 1 Percent, a subproject of Making Change at Walmart, reveals that America’s wealthiest family and the owners of Wal-Mart Stores Inc., the Waltons, have contributed almost nothing to their own charitable organization, the Walton Family Foundation.
Even more concerning to the group is the finding that the Walton family has used the foundation to avoid paying taxes. In other words, not only do the Waltons give less to charity than their billionaire peers and even average, middle class Americans, the 0.4 percent of their estimated worth that they do give to the foundation allows them to avoid paying taxes.
Specifically, the report says, “[T]he Waltons do not contribute generously to their family foundation. Instead, they fund it almost entirely with income generated by special trusts — trusts that are designed to help the family avoid estate taxes on money left behind by deceased relatives.”
“The Waltons are using their foundation to game the system. At almost no cost to themselves and with the help of financial experts, they have funneled money to their foundation from special trusts to avoid paying an estimated $3 billion in estate taxes,” Jessie Spector of Resource Generation, a group that helps wealthy young people become transformative leaders, said in a press release.
According to the report’s findings, of the Wal-Mart heirs, Rob Walton, chairman of Wal-Mart’s board of directors, has not made a single contribution to the foundation, nor has his sister, Alice Walton. Jim Walton donated $3 million more than 15 years ago, but has not made any recent donations.
Christy Walton, the widow of Wal-Mart heir John T. Walton, seems to be one possible exception in the “greedy” family. She donated $52.2 million in 2012, but since 88 percent of American households donate more than $2,000 per year on average, it’s debatable how generous Christy Walton’s donation can be considered. The percentage of her income that she donates is well below the 6 percent that average Americans give. It’s also far less than what other billionaires donate, including Bill and Melinda Gates and Warren Buffett, who donate 36.2 percent and 26.9 percent of their considerable wealth, respectively.
“While the Waltons accumulate $8.6 million per day in Walmart dividends, Walmart workers are struggling to get by,” said Sarita Gupta, executive director of Jobs with Justice, in a press release announcing the publication of the report. “Many of them rely on taxpayer-funded programs like food stamps to provide for their families.”
“Workers have been calling on the company to pay a minimum of $25,000, offer full-time work, and end retaliation against workers who speak out for better jobs,” she added. “The Waltons could earn goodwill and public respect by improving conditions for workers and their families.”
Aaron Dorfman of the National Committee for Responsive Philanthropy, a watchdog for institutional grantmakers, echoed Gupta, saying the Waltons have the financial means to effect real change with their charitable contributions. They have as much wealth as 42 percent of the families in the U.S., he noted, which is why it’s so disheartening that they don’t even donate to their own foundation.
“Our nation has a great history of wealthy entrepreneurs who have given away nearly all their wealth to support worthy philanthropic causes,” Dorfman said. “It’s a shame to see a family like the Waltons with such tremendous means give so little.”
Since the combined total donations made to the Walton Family Foundation by Wal-Mart heirs is $58.49 million, the authors report say one question must be asked: Who or what is funding the foundation?
While some people may point out that Wal-Mart does donate to local charity organizations, the New York Post recently reported that 26 of the 51 members of the New York City Council have issued a letter to the retail giant asking it to stop making donations to local groups.
“We know how desperate you are to find a foothold in New York City to buy influence and support here,” the letter reportedly says. “Stop spending your dangerous dollars in our city. That’s right: this is a cease-and-desist letter.”
When Wal-Mart responded to the letter, saying the move “aligns with supporting the local organizations that are important to our customers and associates,” Council Speaker Melissa Mark-Viverito said Wal-Mart was using “toxic money” to conduct a “cynical public-relations campaign that disguises Walmart’s backwards anti-job agenda.”