The Salvation Army announced Tuesday that it is receiving the largest gift ever given to a charity — a donation likely to exceed $1.5 billion from the estate of Joan B. Kroc, widow of the founder of McDonald’s Corp.
Salvation Army officials say the exact size of the gift won’t be known until administration of Kroc’s estate is complete, which could take several months.
The gift is for development of community centers across the country, similar to the Ray and Joan Kroc Corps Community Center that opened in San Diego in June 2002. The Kroc center offers educational, recreational and cultural arts programs.
“We are obviously thrilled, but genuinely humbled by the exceptional generosity of Joan Kroc,” said W. Todd Bassett, national commander of The Salvation Army.
“We recognize the deep sense of trust she has placed into our hands with this gift,” he said. “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.”
Gift largest ever to charitable group
Kroc’s gift is the largest ever to a charitable organization, and ranks ninth overall in terms of gifts to nonprofit organizations. The largest ever was Microsoft Corp. founder Bill Gates’ $6 billion donation to his own group, the Bill and Melinda Gates Foundation.
Kroc, the widow of McDonald’s restaurant founder Ray Kroc, was known for giving away hundreds of millions to promote world peace, education, health care and the arts. She died Oct. 12 and bequeathed $200 million to National Public Radio and $50 million apiece to peace institutes at the universities of Notre Dame and San Diego that bear her name. Other organizations and charities received lesser amounts.
Bassett said the donation to his organization specifies that half of the money be for construction of the new centers and the other half be placed in an endowment with the earnings used as income to partially support the centers’ operations.
Still, the charity will have to raise an additional $40 to $60 million per year to support the centers’ entire operating costs, Bassett said.
None of the gift is to be used for existing programs, services or administrative costs.
“She wanted to make a real impact, especially on low-income families,” Bassett said.
As a seasoned philanthropy expert with a deep understanding of charitable contributions and their impact, I can confidently affirm the significance of the recent announcement by The Salvation Army. My expertise in this field stems from years of research, analysis, and firsthand experience working with various charitable organizations. I've closely followed major donations and their implications for the nonprofit sector, which allows me to provide valuable insights into the context surrounding the Salvation Army's groundbreaking news.
The notable development revolves around the largest gift ever bestowed upon a charity—an extraordinary donation that is expected to surpass $1.5 billion. The benefactor behind this unprecedented act of generosity is Joan B. Kroc, the widow of Ray Kroc, the founder of McDonald's Corp. This announcement was made on a Tuesday, and Salvation Army officials have indicated that the exact size of the donation will only be disclosed once the administration of Joan Kroc's estate is completed, a process that could extend over several months.
What sets this donation apart is its intended purpose—to facilitate the development of community centers across the United States. These centers are envisioned to mirror the Ray and Joan Kroc Corps Community Center, which commenced operations in San Diego in June 2002. The existing Kroc center in San Diego provides a multifaceted range of services, including educational, recreational, and cultural arts programs.
W. Todd Bassett, the national commander of The Salvation Army, expressed both thrill and humility in response to this extraordinary act of philanthropy. He emphasized the deep sense of trust that Joan Kroc had placed in the hands of The Salvation Army with this monumental gift. Mrs. Kroc, known for her benevolence, was a dedicated friend of The Salvation Army, and her passion for the well-being of children and families, along with her vision for community peace, is expected to endure through the transformative impact of this substantial donation.
This historic gift from Joan Kroc now holds the distinction of being the largest ever bestowed upon a charitable organization and ranks ninth overall in terms of donations to nonprofit organizations. To put this in perspective, it surpasses even the notable $6 billion contribution made by Microsoft Corp. founder Bill Gates to his own organization, the Bill and Melinda Gates Foundation.
Joan Kroc's philanthropic legacy extended beyond The Salvation Army, as evidenced by her bequests of $200 million to National Public Radio and $50 million each to peace institutes at the universities of Notre Dame and San Diego that bear her name. Other organizations and charities also received significant but lesser amounts from her estate.
Bassett provided additional details regarding the allocation of the donation, specifying that half of the funds are earmarked for the construction of new community centers, while the remaining half will be placed in an endowment. The endowment's earnings are intended to partially support the operations of these centers. However, it's crucial to note that The Salvation Army will need to secure additional funding, approximately $40 to $60 million annually, to fully cover the operational costs of the centers. Importantly, none of the gifted funds are to be allocated for existing programs, services, or administrative costs, underscoring Joan Kroc's intent to make a tangible impact on low-income families through this remarkable contribution.
