US: The Salvation Army will receive a $1.5 billion bequest from McDonald's heiress Joan Kroc to build a network of 25 to 30 community centres across the US, jubilant Salvation Army officials announced yesterday.
The donation, one of the largest individual gifts ever given to one charity, represents an "historic day" for the 138-year-old Christian charity, said a smiling W. Todd Bassett, national commander of the organisation, at a news conference at the National Press Club.
The donation far eclipses other individual donations to the organisation, which brought in $2.5 billion in overall revenue last year. Despite its size, it tends to keep a low profile. The group's largest previous contribution, $92 million, came from Joan Kroc five years ago. Its purpose was to build a community centre in San Diego.
In keeping with its founder's vision to offer "soup, soap and salvation," the Salvation Army offers an extensive network of programmes around the country, including soup kitchens, addiction recovery centres, disaster assistance, and after-school programmes.
Salvation Army officials said Kroc stipulated that one-half of her $1.5 billion donation be used to build new community centres, with the other half going to an endowment. The organisation can use the interest from the endowment to operate the centres. But Salvation Army officials estimated that they will still have to raise an additional $40 million to $60 million annually to fully fund the centres. They will not be permitted to use any of the money to fund their existing programmes.
Kroc died last year at 75. She inherited her estate, valued at about $2 billion, from her husband, McDonald's founder Ray Kroc, who died in 1984. Her estate has already announced several other large gifts from her will, including $200 million to National Public Radio and $60 million to the Ronald McDonald House Charity programme, which houses ill children and their families near hospitals.
The gift, while welcomed by the Salvation Army, also presents it with a "communications challenge," Mr Bassett said.
The charity, which raised about $625 million from the public last year, must convince its donors that it needs even more money in the coming years to fund the centres and as well as its network of other activities.
"We have to get the message out that the gift in no way supports our existing programmes," said Mr Bassett. - (Washington Post Service)