Altria Group Inc (MO)

[EZ2]

LOL ~~~ one thing the politicians always seem to miss in the equation ~~~~~~~~~~~ DUH !!!!! :-{
========================================================================================

Agencies gird for a big hit in funding: When Philip Morris leaves, so will cash gifts from the company and its employees

--------------------------------------------------------------------------------

MarketWatch
05:43 a.m. 07/05/2007


Jul 05, 2007 (The Charlotte Observer - McClatchy-Tribune Information Services via COMTEX) -- When Philip Morris USA announced last week it would close its Concord cigarette plant by the end of 2010, local nonprofit organizations started doing the math.

They had received thousands of dollars over the years from Philip Morris corporate and employee giving.

Now they knew that stream of money would eventually stop.

It's still too early to speculate about funding from corporate grants or from the Philip Morris Employee Community Fund, company spokesperson Paige Magness said.

"Our focus in the first few days is, what do our employees need to know?" Magness said.

Philip Morris is starting to delve into other issues, such as corporate community giving, she said. Over the next several months, company officials will meet with community leaders and nonprofits to find out what their concerns and priorities are.

The employee fund, established in 2000, is run by employees who decide focus areas and approve applications for funding. Last year, that fund raised $900,000 for 30 agencies in Cabarrus and surrounding counties, such as Rowan, Mecklenburg and Stanly.

Last week's announcement won't affect employee fund grants scheduled to be given out this summer, Magness said.

"Any impact that may occur will be determined by future campaigns," she said. The next employee fund campaign is scheduled to take place this fall.

Some agencies Philip Morris supported, such as the American Red Cross, also receive United Way dollars. Ed Runte, vice president of the Cabarrus United Way, said it probably will have to raise its fundraising target for upcoming campaigns because its agencies will lose Philip Morris dollars.

The Red Cross last year received $92,000 from Philip Morris ($55,000 in corporate gifts and $37,000 from the employee fund).

"We have found the employee community fund extremely generous to help with unusual situations," said Cabarrus County Red Cross Executive Director Nancy Litton.

For instance, Litton said the $37,000 contribution was higher than normal so the agency could cope with reduced FEMA funding at a time when local emergency response needs (such as emergency housing) were increasing.

In addition, Philip Morris employees volunteered their time and received Red Cross training, she said.

The United Way gave the Red Cross $155,466 for 2006-07. But Litton said she doesn't expect the United Way "to fix" the problem when Philip Morris funding goes away. Instead, she said, she hopes businesses and community groups will step up "to keep some of these programs ongoing."

Last year, the Cooperative Christian Ministry, which is not a United Way agency, received $10,000 in corporate and $40,000 in employee funding from Philip Morris.

For the past few years, Philip Morris has provided money to help fund the agency's food program, including food pantries and Samaritan's Table (the soup kitchen). The support helped fund the program director's salary and other costs, such as food, utilities and supplies, Ed Hosack, the ministry's executive director, said.

Losing a reliable partner means looking for support elsewhere. The ministry is always searching for new partnerships, such as foundations and other corporate opportunities, Hosack said.

"Their impact is more than just what goes out the door," he said of Philip Morris. "They have helped us build new programs and expand what we do."

Gail Smith-Arrants: 704-786-2185

To see more of The Charlotte Observer, or to subscribe to the newspaper, go to http://www.charlotte.com . Copyright (c) 2007, The Charlotte Observer, N.C. Distributed by McClatchy-Tribune Information Services. For reprints, email [e-mail], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.