From the day it was founded in 1952, the Caterpillar Foundation’s guiding principle was and continues to be that its success should also contribute to the quality of life in, and the prosperity and sustainability of communities where we and work and live.
December 12 marks the Foundation’s anniversary, and in those 61 years the Foundation has contributed more than $500 million to help make sustainable progress possible around the world. In 2013 alone, the Foundation made investments ranging from $100 for the matching gift program to $3 million to Opportunity International, to more than $6 million to the United Way to invest in our communities.
How it Works
It may seem counter intuitive for the Foundation to still be investing to philanthropies when Caterpillar’s sales and revenues are down and employees have been asked to cut costs and make sacrifices as they have this year.
Much like many of you make tax-deductible donations to your favorite charities, Caterpillar Inc. does the same to what it considers a critical organization - the Caterpillar Foundation, a non-profit 501(c)(3) charity and a separate legal entity. The amount the company donates to the Foundation is equal to one tenth of 1 percent of sales and revenues each year. As a result, the amount donated fluctuates based on sales and revenues.
For example, in a record year like 2012, Caterpillar Inc. donated $60 million to the Foundation, which in turn invested in our communities worldwide. In 2009 during the worldwide recession, the Foundation's budget was cut more than 30 percent to $28 million.
A New Direction
Over the last six-plus decades, which organizations receive money and where they are in the world varies. What has remained steady is the company’s – and therefore the Foundation’s – commitment to promoting the health, welfare and economic stability of our communities around the world.
Currently, the Foundation's strategy is to invest in programs that alleviate poverty and grow economies worldwide. One of the best ways to do that is by investing in girls and women. When they are educated and empowered, their communities and economies thrive. To learn more, please visit: www.caterpillar.com/Foundation.