CLOSE
Original image

Is IKEA the World's Largest Charity?

Original image

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.

IngvarKamprad.jpgIngvar 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.

IKEA-dresser.jpgAll 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.)

Original image
iStock / Collage by Jen Pinkowski
arrow
The Elements
9 Diamond-Like Facts About Carbon
Original image
iStock / Collage by Jen Pinkowski

How well do you know the periodic table? Our series The Elements explores the fundamental building blocks of the observable universe—and their relevance to your life—one by one.
 
 
It can be glittering and hard. It can be soft and flaky. It can look like a soccer ball. Carbon is the backbone of every living thing—and yet it just might cause the end of life on Earth as we know it. How can a lump of coal and a shining diamond be composed of the same material? Here are eight things you probably didn't know about carbon.

1. IT'S THE "DUCT TAPE OF LIFE."

It's in every living thing, and in quite a few dead ones. "Water may be the solvent of the universe," writes Natalie Angier in her classic introduction to science, The Canon, "but carbon is the duct tape of life." Not only is carbon duct tape, it's one hell of a duct tape. It binds atoms to one another, forming humans, animals, plants and rocks. If we play around with it, we can coax it into plastics, paints, and all kinds of chemicals.

2. IT'S ONE OF THE MOST ABUNDANT ELEMENTS IN THE UNIVERSE.

It sits right at the top of the periodic table, wedged in between boron and nitrogen. Atomic number 6, chemical sign C. Six protons, six neutrons, six electrons. It is the fourth most abundant element in the universe after hydrogen, helium, and oxygen, and 15th in the Earth's crust. While its older cousins hydrogen and helium are believed to have been formed during the tumult of the Big Bang, carbon is thought to stem from a buildup of alpha particles in supernova explosions, a process called supernova nucleosynthesis.

3. IT'S NAMED AFTER COAL.

While humans have known carbon as coal and—after burning—soot for thousands of years, it was Antoine Lavoisier who, in 1772, showed that it was in fact a unique chemical entity. Lavoisier used an instrument that focused the Sun's rays using lenses which had a diameter of about four feet. He used the apparatus, called a solar furnace, to burn a diamond in a glass jar. By analyzing the residue found in the jar, he was able to show that diamond was comprised solely of carbon. Lavoisier first listed it as an element in his textbook Traité Élémentaire de Chimie, published in 1789. The name carbon derives from the French charbon, or coal.

4. IT LOVES TO BOND.

It can form four bonds, which it does with many other elements, creating hundreds of thousands of compounds, some of which we use daily. (Plastics! Drugs! Gasoline!) More importantly, those bonds are both strong and flexible.

5. NEARLY 20 PERCENT OF YOUR BODY IS CARBON.

May Nyman, a professor of inorganic chemistry at Oregon State University in Corvallis, Oregon tells Mental Floss that carbon has an almost unbelievable range. "It makes up all life forms, and in the number of substances it makes, the fats, the sugars, there is a huge diversity," she says. It forms chains and rings, in a process chemists call catenation. Every living thing is built on a backbone of carbon (with nitrogen, hydrogen, oxygen, and other elements). So animals, plants, every living cell, and of course humans are a product of catenation. Our bodies are 18.5 percent carbon, by weight.

And yet it can be inorganic as well, Nyman says. It teams up with oxygen and other substances to form large parts of the inanimate world, like rocks and minerals.

6. WE DISCOVERED TWO NEW FORMS OF IT ONLY RECENTLY.

Carbon is found in four major forms: graphite, diamonds, fullerenes, and graphene. "Structure controls carbon's properties," says Nyman.  Graphite ("the writing stone") is made up of loosely connected sheets of carbon formed like chicken wire. Penciling something in actually is just scratching layers of graphite onto paper. Diamonds, in contrast, are linked three-dimensionally. These exceptionally strong bonds can only be broken by a huge amount of energy. Because diamonds have many of these bonds, it makes them the hardest substance on Earth.

Fullerenes were discovered in 1985 when a group of scientists blasted graphite with a laser and the resulting carbon gas condensed to previously unknown spherical molecules with 60 and 70 atoms. They were named in honor of Buckminster Fuller, the eccentric inventor who famously created geodesic domes with this soccer ball–like composition. Robert Curl, Harold Kroto, and Richard Smalley won the 1996 Nobel Prize in Chemistry for discovering this new form of carbon.

The youngest member of the carbon family is graphene, found by chance in 2004 by Andre Geim and Kostya Novoselov in an impromptu research jam. The scientists used scotch tape—yes, really—to lift carbon sheets one atom thick from a lump of graphite. The new material is extremely thin and strong. The result: the Nobel Prize in Physics in 2010.

7. DIAMONDS AREN'T CALLED "ICE" BECAUSE OF THEIR APPEARANCE.

Diamonds are called "ice" because their ability to transport heat makes them cool to the touch—not because of their look. This makes them ideal for use as heat sinks in microchips. (Synthethic diamonds are mostly used.) Again, diamonds' three-dimensional lattice structure comes into play. Heat is turned into lattice vibrations, which are responsible for diamonds' very high thermal conductivity.

8. IT HELPS US DETERMINE THE AGE OF ARTIFACTS—AND PROVE SOME OF THEM FAKE.

American scientist Willard F. Libby won the Nobel Prize in Chemistry in 1960 for developing a method for dating relics by analyzing the amount of a radioactive subspecies of carbon contained in them. Radiocarbon or C14 dating measures the decay of a radioactive form of carbon, C14, that accumulates in living things. It can be used for objects that are as much as 50,000 years old. Carbon dating help determine the age of Ötzi the Iceman, a 5300-year-old corpse found frozen in the Alps. It also established that Lancelot's Round Table in Winchester Cathedral was made hundreds of years after the supposed Arthurian Age.

9. TOO MUCH OF IT IS CHANGING OUR WORLD.

Carbon dioxide (CO2) is an important part of a gaseous blanket that is wrapped around our planet, making it warm enough to sustain life. But burning fossil fuels—which are built on a carbon backbone—releases more carbon dioxide, which is directly linked to global warming. A number of ways to remove and store carbon dioxide have been proposed, including bioenergy with carbon capture and storage, which involves planting large stands of trees, harvesting and burning them to create electricity, and capturing the CO2 created in the process and storing it underground. Yet another approach that is being discussed is to artificially make oceans more alkaline in order to let them to bind more CO2. Forests are natural carbon sinks, because trees capture CO2 during photosynthesis, but human activity in these forests counteracts and surpasses whatever CO2 capture gains we might get. In short, we don't have a solution yet to the overabundance of C02 we've created in the atmosphere.

Original image
iStock
arrow
Big Questions
Why Don't We Eat Turkey Tails?
Original image
iStock

Turkey sandwiches. Turkey soup. Roasted turkey. This year, Americans will consume roughly 245 million birds, with 46 million being prepared and presented on Thanksgiving. What we don’t eat will be repurposed into leftovers.

But there’s one part of the turkey that virtually no family will have on their table: the tail.

Despite our country’s obsession with fattening, dissecting, and searing turkeys, we almost inevitably pass up the fat-infused rear portion. According to Michael Carolan, professor of sociology and associate dean for research at the College for Liberal Arts at Colorado State University, that may have something to do with how Americans have traditionally perceived turkeys. Consumption was rare prior to World War II. When the birds were readily available, there was no demand for the tail because it had never been offered in the first place.

"Tails did and do not fit into what has become our culinary fascination with white meat," Carolan tells Mental Floss. "But also from a marketing [and] processor standpoint, if the consumer was just going to throw the tail away, or will not miss it if it was omitted, [suppliers] saw an opportunity to make additional money."

Indeed, the fact that Americans didn't have a taste for tail didn't prevent the poultry industry from moving on. Tails were being routed to Pacific Island consumers in the 1950s. Rich in protein and fat—a turkey tail is really a gland that produces oil used for grooming—suppliers were able to make use of the unwanted portion. And once consumers were exposed to it, they couldn't get enough.

“By 2007,” according to Carolan, “the average Samoan was consuming more than 44 pounds of turkey tails every year.” Perhaps not coincidentally, Samoans also have alarmingly high obesity rates of 75 percent. In an effort to stave off contributing factors, importing tails to the Islands was banned from 2007 until 2013, when it was argued that doing so violated World Trade Organization rules.

With tradition going hand-in-hand with commerce, poultry suppliers don’t really have a reason to try and change domestic consumer appetites for the tails. In preparing his research into the missing treat, Carolan says he had to search high and low before finally finding a source of tails at a Whole Foods that was about to discard them. "[You] can't expect the food to be accepted if people can't even find the piece!"

Unless the meat industry mounts a major campaign to shift American tastes, Thanksgiving will once again be filled with turkeys missing one of their juicier body parts.

Have you got a Big Question you'd like us to answer? If so, let us know by emailing us at bigquestions@mentalfloss.com.

SECTIONS

arrow
LIVE SMARTER
More from mental floss studios