Strategic Philanthropy

Over many years, we have worked to align our community investments with what we do best as a business. As a global food company, we believe it is important to support issues relating to nutrition, particularly hunger. In 2012, we revisited our charitable giving strategy with an eye toward further sharpening our focus and creating better alignment between our giving programs and our core competencies. We want to be as strategic with our corporate philanthropy as we are with our business as a whole, so these investments have the greatest impact where they are needed most.

As part of this focus, we launched a new corporate philanthropy initiative in early 2013 – Breakfasts for Better Days™ – with more targeted goals and investments, including a focus on hunger relief and programs that support breakfast for children and families. As the world’s leading cereal company, we have committed to providing 1 billion cereal and snack servings1 – more than half of which are breakfasts – to children and families in need around the world by the end of 2016.

To help these children get a healthy breakfast, we pledged $1 million in grants in the U.S. to nonprofit partners Action for Healthy Kids, Share Our Strength’s No Kid Hungry® campaign and the Food Research and Action Center so that more schools can participate in federally funded breakfast programs.

While we know that our philanthropic dollars and programs have been doing much good, we believe that a more strategic approach can achieve even greater, and more measurable, impact. We are also exploring ways to maximize product donations for people in need and to further engage our employees in hunger-relief service projects. We look forward to sharing more details on this strategic initiative in our next Corporate Responsibility Report.

In 2012, we supported a variety of nonprofits and charitable programs, providing $13 million in cash and $39 million in food during the year. The cash total includes charitable contributions made by some of our individual brands for specific causes, many of which are highlighted on product packages or advertised in stores or through online campaigns. We achieved our goal of donating the equivalent of 2 to 2.5 percent of pre-tax annual profits through both cash and in-kind contributions.

W.K. Kellogg Foundation

The W.K. Kellogg Foundation (WKKF) supports children, families and communities as they strengthen and create conditions that propel vulnerable children to achieve success as individuals and as contributors to the larger community and society. Guided by the belief that all children should have an equal opportunity to thrive, WKKF works with communities to create conditions for vulnerable children so they can realize their full potential in school, work and life.

Based in Battle Creek, Mich., WKKF works throughout U.S. and internationally, as well as with sovereign tribes. Special emphasis is paid to priority places where there are high concentrations of poverty and where children face significant barriers to success. The Kellogg Foundation’s priority places in the U.S. are in Michigan, Mississippi, New Mexico and New Orleans, and, internationally, are in Mexico and Haiti.

The foundation’s integrated philanthropic approach centers on whole child development – ensuring the emotional, social, cognitive, physical, cultural and civic development of young children, with a special emphasis on prenatal months to age 8, within the context of families and communities.

The Kellogg Foundation was founded in 1930 as an independent, private foundation by our company’s founder, W.K. Kellogg. It receives its income primarily from the W.K. Kellogg Foundation Trust, which was set up by Mr. Kellogg when he donated most of his fortune – $66 million – to create the foundation’s endowment, which is held by the trust. In addition to its diversified portfolio, the trust continues to own substantial equity – more than 20 percent – in the Kellogg Company. In 2012, Kellogg paid more than $135 million in dividends to the trust to support the foundation’s work.

While the company, the trust and the foundation have enjoyed a longstanding relationship, each is governed by its own independent boards of trustees.