PS3 News: Call Of Duty Endowment Donates $1.1 Million To Charity Growth - PS3 News

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Call Of Duty Endowment Donates $1.1 Million To Charity Growth

They've made billions on the Call of Duty name, so now it's time to give back a little.

The Call of Duty Endowment fund has announced $1.1 million in new grants to help local veterans' charities grow. These funds are thanks to the organization's new "Chapterization" strategy where grants are given to veterans' groups that can expand by opening new chapters, which in turn offer military vets employment services.

This comes hot on the heels of a recent Bureau of Labor Statistics 2012 Employment of Veterans report, which shows that over 20% of veterans between the ages of 18 and 24 are unemployed, which is 5% higher than their non-veteran counterparts. Said Activision CEO and Call of Duty Endowment founder Bobby Kotick:

"Our new chapterization strategy allows us to continue to have an impact on this important national issue by applying sound business principles to the veteran employment effort--and can be a model for the non-profit world. We want to support organizations that have proven business models and that are able to apply those best practices in targeted markets where the most veterans have the most need. By providing the funds to open new chapters in these targeted areas, we believe that goal will be accomplished."

The first five Endowment grants are going to Hire Heroes USA, Veterans Green Jobs, AMVETS, Still Serving Veterans and the National Chamber Foundation. Well, that's a start, at least.

Tags: call of duty endowment, cod endownment, activision blizzard

3/20/2013 10:19:55 PM Ben Dutka

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Comments (6 posts)

WorldEndsWithMe
Wednesday, March 20, 2013 @ 10:51:58 PM
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Well, CoDpiece is well endowed.

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Underdog15
Wednesday, March 20, 2013 @ 11:38:54 PM
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They do this every year. This fundraiser is the -only- way the charity makes money. It's literally the FULL extent of their fundraising campaign. It's in place as a tax benefit to the company. Not only that, but the "volunteer" board of directors for the not-for-profit is made up mostly of Activision bosses... who are paid a non-taxable "honorarium" for their services to the not-for-profit which comes from that 1.1 million.

True... -SOME- good comes from it. But only enough to hire 2-5 full time employees or contribute a few pieces of equipment. Certainly not enough to run a program.

To give an example of how little it is... I work for a not-for-profit agency. The program I work for has 8 employees, 6 of us are full time. Our budget is somewhere near 800k. Everyone is on salary only, and our budget is always tight.

My point is, even if most of that money went to a charitable cause, (the fund just gives money to other not-for-profits to do the work, much like a United Way would) it does very little work for soldiers who need it. The biggest benefit of the not-for-profit is a way to avoid tax for the company, and again for the board of directors. It basically turns the 1.1 million into a fully tax-refundable donation (it's barely under the allotment for major corporations over a certain value to donate to charity for 100% tax return), then the money they make through the honorarium is untaxed. In overall terms, it saves roughly 38% business tax on the 1.1 million, then the full 1.1 million isn't even lost in the first place. (So they give 1.1 mil to charity, then the government reimburces them that 1.1 mil, or most of it, AND they avoid paying nearly 400k in business taxes) then, of the 1.1 million, a bunch go to the board members in non-taxable honorarium, so it's extra income for their higher ups so subsidize the tax they had to pay on their personal wages.

Yeah... They're so generous. lol. At least some of it will be used well, though. That's a small bright side, at least.

Last edited by Underdog15 on 3/20/2013 11:39:52 PM

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Underdog15
Wednesday, March 20, 2013 @ 11:42:24 PM

Oh yeah... and don't forget how something like this adds additional advertisement and branding for their Call of Duty trademark. It's an extremely wise investment on their part that conveniently also makes them look generous to those that don't have experience with not-for-profits.

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Simcoe
Thursday, March 21, 2013 @ 9:27:02 AM

Well put, Underdog.

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Underdog15
Thursday, March 21, 2013 @ 1:18:46 PM

Thanks.

If you combine what they make in untaxed honorariums, and the family trust funds I'm sure they all employ to distribute income on smaller tax brackets to their kids/spouses (yes... you can do that if you have a lawyer set that up) along with other tax breaks, I'm quite certain these bosses essentially lose no money to income tax.

And -THAT- is how smart and rich businessmen don't pay taxes... they do, but with enough money, you can move it around in such a way it basically makes it's way back to you.

lol

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Simcoe
Thursday, March 21, 2013 @ 9:26:04 AM
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$1.1 million in grants that Activision "gives" it's charity, so that's roughly 0.1% of the sales they made after what two or three weeks of the games release.

Hmmmm....

Also, what about the armed forces in other countries where this game is the number one seller?

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