W.K. Kellogg Foundation

By Erica Curry

Graduate Student, Grand Valley State University

Definition

A philanthropic foundation has been defined as "a nonprofit, nongovernmental organization with a principal fund or endowment of its own that maintains or aids charitable, educational, religious or other activities serving the public good, primarily by making grants to other nonprofit organizations" (Boris 2000, 2). The two types of philanthropic foundations include community and private. Community foundations are publicly-supported entities which receive endowments from many donors within a region or community; this type of foundation primarily supports programs and initiatives specific to the region in which it resides. Private foundations are nonprofit organizations that receive their funds from corporate profits or wealthy individuals. These foundations, also referred to as independent, corporate or operating foundations , typically have a broader scope than a community foundation, with programs sometimes reaching national and, often, international communities.

Among the most influential and powerful of the private foundations in the world is the W.K. Kellogg Foundation, founded by Will Keith Kellogg, cereal entrepreneur. In 2002, the W.K. Kellogg Foundation ranked as the seventh largest private foundation in the United States, based on assets valuing over $5.5 billion. Surprisingly, this fortune amassed from a serendipitous discovery by Will Keith Kellogg in 1894. While working for his older brother, Dr. John Harvey Kellogg, at the Battle Creek Sanitarium, W.K. stumbled upon the process of flaking grain in his attempts to find a digestible bread substitute for patients of the sanitarium.

This discovery led him to founding the Kellogg Company in 1906, and, through the marketing of his cereals, he became one of the wealthiest men in America. W.K. established the W.K. Kellogg Foundation in 1930, which is located in Battle Creek, Michigan, along with the Kellogg Company headquarters. Over his lifetime, Kellogg donated more than $66 million to the foundation.

Today, the mission of the W.K. Kellogg Foundation, developed from Kellogg's beliefs, is "to help people help themselves through the practical application of knowledge and resources to improve their quality of life and that of future generations" (WKKF Who We Are: Overview 2003). The foundation has a board of trustees which oversees the strategic direction and performance of the foundation. The foundation remains one of the largest grant makers in the nation, with grants totaling over $220 million in 2002. Programming interests extend beyond the United States to include Latin America, the Caribbean and Southern Africa. Program investments typically fall within four areas which include: health; food systems and rural development; youth and education; and, philanthropy and volunteerism.

Historic Roots

With the rise of scientific philanthropy (a systematic approach to giving) and the emergence of a united workplace appeal through the community chest movement (asking individuals to donate to a pool of funds used for various community needs), leaders of industry began to establish private foundations. Early in the twentieth century, business tycoons Andrew Carnegie and John D. Rockefeller established trusts in order to "manage the business of benevolence properly and effectively" (Bremner 1988, 111). The contributions of these two men far outpaced other philanthropists of the day.

When the estate tax law of 1936 took effect, wealthy donors were further motivated to establish private trusts for the purpose of practicing benevolence in life and in perpetuity (continuing the gift after their death). A new chapter in philanthropic leadership was born of a handful of very wealthy men - several of the foundations established at this time (Ford, Rockefeller, and Kellogg) continue to influence modern philanthropy.

Concurrently and throughout World War I, many charitable organizations formed which still exist today. These organizations, including the YMCA, Boy and Girl Scouts, and American Red Cross, survived on the generosity of the human spirit to provide time and money to aid the less fortunate. As historian Marcus W. Jernegan wrote in March 1929, "Never in the world's history have such unprecedented amounts of money been granted by private and public agencies to alleviate human suffering" (Ibid., 134). These prophetic words could not prepare Americans for the dark days ahead.

As Americans entered the Great Depression of the 1930s, President Herbert Hoover recognized the spirit and power of American charity in addressing basic societal need. He said,

This is not an issue as to whether people shall go hungry or cold in the United States. It is solely a question of the best method by which hunger and cold shall be prevented. It is a question as to whether the American people on one hand will maintain the spirit of charity and mutual self help through voluntary giving and the responsibility of local government as distinguished on the other hand from appropriations out of the Federal Treasury for such purposes. (Hoover 2003)

It was in June of this same year, that W.K. Kellogg established the W.K. Kellogg Child Welfare Foundation, initially dedicated to the needs of children. Renamed the W.K. Kellogg Foundation a few months later, the foundation expanded its focus to include health, education and rural development. Kellogg remained passionate about the education and welfare of children. He said, "Use the money as you please so long as it promotes the health, happiness and well-being of children" (WKKF Who We Are: History 2003).

Through the last twenty-one years of his life (1930-1951), Kellogg endowed his foundation with over $66 million dollars in private investments, including Kellogg Company stock. During his life's journey, he endured financial woes, family division and tragedy, but he remained determined to the end, building an empire that far exceeded his imagination. He exercised great humility regarding his philanthropy, stating once that he was not a philanthropist because he helped children because he selfishly enjoyed it.

Importance

In 1996, W.K. Kellogg Foundation held $7.6 billion in assets, placing it at as the second largest private foundation in the United States. One cannot begin to articulate the political, social and philanthropic influence the foundation has had on modern civilization. The collective contributions made by it throughout the past seventy-three years have positively impacted the health and well-being of multiple generations of residents of Michigan, the United States, and countries across the world.

One of the W.K. Kellogg Foundations' earliest initiatives was the Michigan Community Health Project, which provided thousands of Michigan residents access to essential medical services. Serving as a national model in the area of health and medicine, the collaborative project (circa 1931-1948) was the catalyst for a long-term relationship between the Kellogg Foundation, rural development and public health.

Throughout the 1940s and 1950s, the foundation expanded interests to the United Kingdom and Western Europe. Its investments in agricultural research and equipment served to rebuild the industries of farming and food production. Early on, international projects were also forged in South Africa, Latin America and the Caribbean.

Back in the United States,