Berkshire Gives Up On Giving How a pro-life housewife took on Warren Buffett.

Warren Buffett has drawn criticism in the past for supporting pro-choice causes, but it never affected Berkshire Hathaway's charitable giving—that is, until Cindy Coughlon, a 34-year-old stay-at-home mom in Peoria, Ariz., came along. Now, as a result of her campaign against pro-choice donations, the most powerful man in business has terminated Berkshire's entire contribution program, which distributed nearly $200 million over the past two decades to institutions ranging from schools to groups on either side of the abortion debate.

The unusual program—call it a charitable dividend—allowed Berkshire shareholders to designate $18 per share annually for up to three charities of their choosing. Some shareholders, including Buffett via his foundation, used the mechanism to give to pro-choice causes such as Planned Parenthood. (FORTUNE editor at large Carol Loomis is a director of the Buffett Foundation.)

The events were set in motion this winter by Coughlon, a mother of three who wanted to earn some money by selling for the Pampered Chef, a recent Berkshire acquisition with $740 million in revenues. Some 70,000 freelance "consultants" sell kitchen wares through Tupperware-style parties in people's homes. Coughlon says she was drawn to the Pampered Chef because she felt it shares her Christian, pro-family values. The company's mission statement, for example, encourages people to "develop their God-given talents."

But Coughlon was dismayed to learn that Berkshire's purchase of the Pampered Chef meant that some portion of the profits she'd generate could fund pro-choice groups. She e-mailed a petition, which asked Berkshire and Buffett to end donations to such organizations, to 100 friends and family in January. Pro-life organizations such as Life Decisions International began publicizing it.

Pampered Chef chairman Doris Christopher initially told consultants in an April e-mail that though "my personal views on some issues differ from Warren Buffett's ... it is not my place to ask or to judge." But her message didn't quell the furor. Consultants were resigning, says Coughlon, and customers complaining. (Coughlon numbers the petitioners at "less than a thousand.") By late June the pressure had become intolerable, and Christopher "went to Warren with a heavy heart," according to an e-mail she wrote to consultants. "It troubled him deeply that charitable donations from Berkshire Hathaway were causing you difficulty." On July 3, Berkshire announced the end of the charity program.

Before this year, Berkshire seemed impervious to such pressures. Pro-life activists had picketed its annual meetings and boycotted it for years. Last year a shareholder resolution to cancel the charity program was soundly defeated, with 97% of shares voted against it. And Buffett defended the program in Berkshire's 2001 annual report, saying Berkshire makes "no contributions except those designated by shareholders," who "are probably on both sides of the abortion issue in roughly the same proportion as the American population."

So why did Berkshire abandon the program now? The company's announcement said that "its ownership is now harming" not only a subsidiary, but also individuals. The board was willing to accept some damage from boycotts in the past because the cost was diffused across a giant corporation, but this was affecting Pampered Chef consultants, who had nothing to do with Berkshire's policy.

For her part, Coughlon is "just delighted with the decision." But she says she won't be satisfied until the man she deferentially refers to as "Mr. Buffett" stops donating to pro-choice causes. "Now," she says, "the focus is on him."

For future reading:

http://family.org/cforum/fnif/news/a0026817.cfm

Pampered Chef Profits Won't Fund Abortion, July 9, 2003 [excerpt]

By Steve Jordahl, correspondent

It's a tale of David and Goliath: Some businesswomen, who are also stay-at-home moms, confronted one of the richest men in history.

Tycoon Warren Buffett will no longer donate proceeds from his Berkshire Hathaway conglomerate to fund pro-abortion organizations. The decision came after a group of stay-at-home moms petitioned Buffett, who happens to be one of the richest men in history.

The women are associated with The Pampered Chef — a kitchenware company owned by Berkshire Hathaway.

With an estimated fortune of $28 billion, Buffett can afford to give away a lot of money — and he does, mostly to pro-abortion causes. It's estimated that his Berkshire Hathaway Foundation gave $11 million dollars in 2002 to organizations like Planned Parenthood.

Cindy Coughlon, who is a Pampered Chef consultant, was unhappy about her profits helping to fund abortions. An article in Focus on the Family's Citizen magazine alerted other consultants, who joined in protest.

"It was having a devastating effect on Pampered Chef's business. They were losing consultants and they were losing customers as a result," Coughlon said.

She added: "I don't think God could have made this any louder or clearer. There are simply no excuses for the Christian community not to stand up and make (its) voice heard."

Buffett decided Berkshire-Hathaway will no longer fund any charities, opting instead to let subsidiaries like Pampered Chef decide what charities to support. Wendy Wright, of Concerned Women for America, is pleased with the action.

"Hurray for these ladies! What an incredible impact they had on an empire," Wright said. "It usually takes years and years of effort, and is not always successful."

Wright said this action is proof that a good moral policy can be the basis of sound financial decisions.

"These are ventures that are not only offensive to many, many people, but it does not make good business sense because he's doing away with the next generation of customers," Wright said.

Warren Buffett and Pampered Chef declined to be interviewed for this story.

The article that helped change minds in this situation is found in the June edition of Focus on the Family's Citizen magazine.

With an estimated fortune of $28 billion, Buffett can afford to give away a lot of money — and he does, mostly to pro-abortion causes. It's estimated that his Berkshire Hathaway Foundation gave $11 million dollars in 2002 to organizations like Planned Parenthood.

I have read in other places that Buffett does not give much of his money to any charity and the above is further evidence of this. His foundation gave $11 million when the man has a fortune of $28 billion? Not much in the way of generosity, in my estimation.

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