McDonalds Skimps Donations to Local Charity

Reports show McDonalds may be skimping on donations to what they

call their charity of choice. Despite the name, Ronald McDonald
House Charities (RMHC) receives little of their total income from the
McDonalds Corporation.
A report released by Eat Drink Politics and the Small Planet Fund has
raised questions about Americas favorite fast food chain and the extent of its
claimed philanthropic support.
The origins of RMHC begin in 1974 as Philadelphia Eagles player,
Fred Hills daughter, was diagnosed with Leukemia. After finding there
was no place to stay for he and his family while his daughter was
receiving treatment he discovered a need that was going unsolved for
many families. Fellow players stepped in and help and began to raise
funds for families to create a home away from home while their
children were in the hospital. Eagles General Manager, Jim Murray
helped by contacting a friend who at the time did advertising for
McDonalds. McDonalds agreed to help, but only by donating a
percentage of that weeks shamrock shake sales instead of a
percentage of overall profits.
40 years later it seems McDonalds lackluster support to RMHC
hasnt changed and still remains just a mere percentage of what has
become a multi-billion dollar Corporation.
The report claims that McDonalds is using the charity for good
publicity and a branding device rather than actually providing the
funding and support that the charities name suggests.
People associate the charity with the restaurant, there is no way
of avoiding that, said Texas State Junior, Brittany Hartman, most
people would think RMHC is 100 percent funded by McDonalds just
based on the name.
On average McDonald claims a total of 34 million in global, cash
and in-kind donations, which might, on paper, seem like a large
amount of money. This number is quickly swallowed in comparison to
McDonalds 55 billion-dollar net income. The average individual earning
over 50 thousand dollars a year, donates 4.7 percent of discretionary
income to charity, and even other leading corporations donate 1.01
percent; a large jump from McDonalds .32 percent.
RMHC makes sure to note the separation from the charities total
revenue and McDonalds as a primary funder. Despite what many would
assume, giving from McDonalds only accounts for 20 percent of
RMHCs total revenue. The Los Angeles Ronald McDonald House, which is
one of the nation's largest with 75 rooms, recognizes "although our House shares
a brand name with McDonald's Corporation, less than 10% of our annual $2
million budget comes as a result of financial contributions from the company's
local owner / operators."

Most of the houses are funded by personal donations and even

other large donators including Coca-Cola (whose CEO sits on the board
of directors), USA today, and Southwest Airlines, who contribute
significant amounts yet share no name with the charity. Customers
donations at drive through change boxes reached $50 million, making
customers giving through excess change more than 1.5 much as giving
of the company itself.
Executives of both McDonalds and RMHC refute the claims of the
report stating RMHC would fail to exist without the fast food chains
monetary contribution and the awareness the global brand creates. No
matter the numbers, the reality is that many still believe the restaurant
has an obligation to finically support the charity as much as name
recognition suggests.