Is IKEA the World's Largest Charity?

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iStock

If it's possible to assemble a piece of IKEA furniture without cursing at the top of your lungs, I've never seen it happen. There's always a missing piece of hardware, an unclear spot on the instructions, or an excruciating amount of hex wrenching to be done. The next time you ball your fists mid-assembly and curse all things Swedish, though, try to calm down. After all, IKEA's just another charity trying to get by.

Wait, what? You read that correctly; IKEA's technically a charity. But before you write down the umlaut-riddled name of your most recent dresser purchase as a charitable donation on your next tax return, it's worth exploring this ownership structure, which was brought to light by a 2006 article in The Economist.

Ingvar Kamprad founded IKEA in Almhult, Sweden in 1943 when he was just 17 years old. Kamprad originally sold low-priced consumer goods from his home and by mail, but added a furniture line in 1948. As the company began opening its trademark sprawling stores, Kamprad grew fabulously wealthy, although he retained frugal tastes like driving an aging Volvo and always flying economy class. By some debated estimates, Kamprad is the world's richest man, and even Forbes' more conservative accounting pegs him as the seventh-richest person in the world with a net worth in the neighborhood of $31 billion.

Why can't anyone agree on how much Kamprad's worth? Well, for one he doesn't technically own IKEA anymore. In 1982, his ownership stake in the company was given to the newly formed Stichting Ingka Foundation, a Dutch charity. The foundation in turn administers the stores through Ingka Holdings, a wholly owned subsidiary that operates as a for-profit company.

With an estimated endowment of over $36 billion in 2006, the Stichting Ingka Foundation is arguably the world's largest charity. The charity's stated goal is "to promote and support innovation in the field of architectural and interior design," surely a noble aim, but it's unclear how generous its support is. It's been confirmed that the foundation has given 1.7 million Euros a year to Sweden's Lund Institute of Technology for some time, but even that amount seems fairly tightfisted in light of its gigantic endowment. In other words, if you're an aspiring architect waiting for some financial support from IKEA, you're probably better off getting a job as a cashier at one of their stores than hoping for a grant.

So what's going on here? It would seem that the entire charitable foundation is a clever, if dubious, way for IKEA to avoid paying taxes. In 2004, the company pulled in a 1.4 billion euro profit, but since it's owned by a tax-exempt charity, it didn't pay a dime. Moreover, the Byzantine structure of for-profit holding companies nestled within non-profit charities effectively safeguards Kamprad from any sort of outside takeover bids for his housewares behemoth. The five-member board of the foundation, which is headed by Kamprad, is the de facto management for all of the IKEA stores.

All of this sounds pretty clever, but if the stores are all owned by a charity, how can Kamprad and his family make any cash off of them? Maybe he's doing all this out of the goodness of his heart after all, right? The company's been just as clever in that regard, too. If the Stichting Ingka Foundation is really just a giant piggy bank, it's got a rather sizable hole in it. While the charitable foundation owns the IKEA stores, it doesn't own the IKEA trademark or concept. These items belong to Inter IKEA Systems, a private, for-profit Dutch company. Inter IKEA Systems collects hefty franchise fees from each IKEA store; according to The Economist, these fees amounted to 631 million euros in 2004. However, thanks to a convoluted multi-national system of ownership here, too, the company ended up paying a scant 19 million euros in taxes on this huge sum.

Who owns Inter IKEA Systems and its maze of parent companies? Nobody knows. Since they're private companies incorporated in various locations, their ownership is kept secret, and IKEA's certainly not about to spill the beans. It would seem reasonable to suggest that Kamprad probably owns it.

Should we really be surprised, though? These are the same people who can make a dresser that weighs just ten pounds, fits in a box the size of a deck of cards, and sells for four dollars. Just remember, when you scarf down a two-dollar plate of Swedish meatballs after buying furniture, you shouldn't feel ashamed for pigging out. Instead, hold your head up high and know that you've made your contribution to charity today. (Wait, you have some sauce on your chin. You'll probably want to wipe that off first.)

What Happened to the Physical Copy of Martin Luther King's 'I Have a Dream' Speech?

AFP, Getty Images
AFP, Getty Images

On August 28, 1963, Martin Luther King Jr. stood on the steps of the Lincoln Memorial and gave a speech for the ages, delivering the oratorical masterpiece "I Have a Dream" to nearly 250,000 people.

When he was done, King stepped away from the podium, folded his speech, and found himself standing in front of George Raveling, a former Villanova basketball player who, along with his friend Warren Wilson, had been asked to provide extra security around Dr. King while he was speaking. "We were both tall, gangly guys," Raveling told TIME in 2003. "We didn't know what we were doing but we certainly made for a good appearance."

Moved by the speech, Raveling saw the folded papers in King’s hands and asked if he could have them. King gave the young volunteer the speech without hesitation, and that was that.

“At no time do I remember thinking, ‘Wow, we got this historic document,’” Raveling told Sports Illustrated in 2015. Not realizing he was holding what would become an important piece of history in his hands, Raveling went home and stuck the three sheets of paper into a Harry Truman biography for safekeeping. They sat there for nearly two decades while Raveling developed an impressive career coaching NCAA men’s basketball.

In 1984, he had recently taken over as the head coach at the University of Iowa and was chatting with Bob Denney of the Cedar Rapids Gazette when Denney brought up the March on Washington. That's when Raveling dropped the bomb: “You know, I’ve got a copy of that speech," he said, and dug it out of the Truman book. After writing an article about Raveling's connection, the reporter had the speech professionally framed for the coach.

Though he displayed the framed speech in his house for a few years, Raveling began to realize the value of the piece and moved it to a bank vault in Los Angeles. Though he has received offers for King’s speech—one collector wanted to purchase the speech for $3 million in 2014—Raveling has turned them all down. He has been in talks with various museums and universities and hopes to put the speech on display in the future, but for now, he cherishes having it in his possession.

“That to me is something I’ll always be able to look back and say I was there,” Raveling said in the original Cedar Rapids Gazette article. “And not only out there in that arena of people, but to be within touching distance of him. That’s like when you’re 80 or 90 years old you can look back and say ‘I was in touching distance of Abraham Lincoln when he made the Gettysburg Address.’"

“I have no idea why I even asked him for the speech,” Raveling, now CEO of Coaching for Success, has said. “But I’m sure glad that I did.”

What is a Polar Vortex?

Edward Stojakovic, Flickr // CC BY 2.0
Edward Stojakovic, Flickr // CC BY 2.0

If you’ve turned on the news or stepped outside lately, you're familiar with the record-breaking cold that is blanketing a lot of North America. According to The Washington Post, a mass of bone-chilling air over Canada—a polar vortex—split into three parts at the beginning of 2019, and one is making its way to the eastern U.S. Polar vortexes can push frigid air straight from the arctic tundra into more temperate regions. But just what is this weather phenomenon?

How does a polar vortex form?

Polar vortexes are basically arctic hurricanes or cyclones. NASA defines them as “a whirling and persistent large area of low pressure, found typically over both North and South poles.” A winter phenomenon, vortexes develop as the sun sets over the pole and temperatures cool, and occur in the middle and upper troposphere and the stratosphere (roughly, between six and 31 miles above the Earth’s surface).

Where will a polar vortex hit?

In the Northern Hemisphere, the vortexes move in a counterclockwise direction. Typically, they dip down over Canada, but according to NBC News, polar vortexes can move into the contiguous U.S. due to warm weather over Greenland or Alaska—which forces denser cold air south—or other weather patterns.

Polar vortexes aren't rare—in fact, arctic winds do sometimes dip down into the eastern U.S.—but sometimes the sheer size of the area affected is much greater than normal.

How cold is a polar vortex?

So cold that frozen sharks have been known to wash up on Cape Cod beaches. So cold that animal keepers at the Calgary Zoo in Alberta, Canada once decided to bring its group of king penguins indoors for warmth (the species lives on islands north of Antarctica and the birds aren't used to extreme cold.) Even parts of Alabama and other regions in the Deep South have seen single-digit temperatures and wind chills below zero.

But thankfully, this type of arctic freeze doesn't stick around forever: Temperatures will gradually warm up.

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