Is IKEA the World's Largest Charity?

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.)

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New Plant-Based Coating Can Keep Your Avocados Fresh for Twice as Long
Apeel
Apeel

Thanks to a food technology startup called Apeel Sciences, eating fresh avocados will soon be a lot easier. The Bill Gates–backed company has developed a coating designed to keep avocados fresh for up to twice as long as traditional fruit, Bloomberg reports, and these long-lasting avocados will soon be available at 100 grocery stores across the Midwestern U.S. Thirty or so of the grocery stores involved in the limited rollout of the Apeel avocado will be Costcos, so feel free to buy in bulk.

Getting an avocado to a U.S. grocery store is more complicated than it sounds; the majority of avocados sold in the U.S. come from California or Mexico, making it tricky to get fruit to the Midwest or New England at just the right moment in an avocado’s life cycle.

Apeel’s coating is made of plant material—lipids and glycerolipids derived from peels, seeds, and pulp—that acts as an extra layer of protective peel on the fruit, keeping water in and oxygen out, and thus reducing spoilage. (Oxidation is the reason that your sliced avocados and apples brown after they’ve been exposed to the air for a while.) The tasteless coating comes in a powder that fruit producers mix with water and then dip their fruit into.

A side-by-side comparison of a coated and uncoated avocado after 30 days, with the uncoated avocado looking spoiled and the coated one looking fresh
Apeel

According to Apeel, coating a piece of produce in this way can keep it fresh for two to three times longer than normal without any sort of refrigeration of preservatives. This not only allows consumers a few more days to make use of their produce before it goes bad, reducing food waste, but can allow producers to ship their goods to farther-away markets without refrigeration.

Avocados are the first of Apeel's fruits to make it to market, but there are plans to debut other Apeel-coated produce varieties in the future. The company has tested its technology on apples, artichokes, mangos, and several other fruits and vegetables.

[h/t Bloomberg]

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The Curious Origins of 16 Common Phrases
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iStock

Our favorite basketball writer is ESPN's Zach Lowe. On his podcast, the conversation often takes detours into the origins of certain phrases. We compiled a list from Zach and added a few of our own, then sent them to language expert Arika Okrent. Where do these expressions come from anyway?

1. BY THE SAME TOKEN

Bus token? Game token? What kind of token is involved here? Token is a very old word, referring to something that’s a symbol or sign of something else. It could be a pat on the back as a token, or sign, of friendship, or a marked piece of lead that could be exchanged for money. It came to mean a fact or piece of evidence that could be used as proof. “By the same token” first meant, basically “those things you used to prove that can also be used to prove this.” It was later weakened into the expression that just says “these two things are somehow associated.”

2. GET ON A SOAPBOX

1944: A woman standing on a soapbox speaking into a mic
Express/Express/Getty Images

The soapbox that people mount when they “get on a soapbox” is actually a soap box, or rather, one of the big crates that used to hold shipments of soap in the late 1800s. Would-be motivators of crowds would use them to stand on as makeshift podiums to make proclamations, speeches, or sales pitches. The soap box then became a metaphor for spontaneous speech making or getting on a roll about a favorite topic.

3. TOMFOOLERY

The notion of Tom fool goes a long way. It was the term for a foolish person as long ago as the Middle Ages (Thomas fatuus in Latin). Much in the way the names in the expression Tom, Dick, and Harry are used to mean “some generic guys,” Tom fool was the generic fool, with the added implication that he was a particularly absurd one. So the word tomfoolery suggested an incidence of foolishness that went a bit beyond mere foolery.

4. GO BANANAS

chimp eating banana
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The expression “go bananas” is slang, and the origin is a bit harder to pin down. It became popular in the 1950s, around the same time as “go ape,” so there may have been some association between apes, bananas, and crazy behavior. Also, banana is just a funny-sounding word. In the 1920s people said “banana oil!” to mean “nonsense!”

5. RUN OF THE MILL

If something is run of the mill, it’s average, ordinary, nothing special. But what does it have to do with milling? It most likely originally referred to a run from a textile mill. It’s the stuff that’s just been manufactured, before it’s been decorated or embellished. There were related phrases like “run of the mine,” for chunks of coal that hadn’t been sorted by size yet, and “run of the kiln,” for bricks as they came out without being sorted for quality yet.

6. READ THE RIOT ACT

The Law's Delay: Reading The Riot Act 1820
Hulton Archive/Getty Images

When you read someone the riot act you give a stern warning, but what is it that you would you have been reading? The Riot Act was a British law passed in 1714 to prevent riots. It went into effect only when read aloud by an official. If too many people were gathering and looking ready for trouble, an officer would let them know that if they didn’t disperse, they would face punishment.

7. HANDS DOWN

Hands down comes from horse racing, where, if you’re way ahead of everyone else, you can relax your grip on the reins and let your hands down. When you win hands down, you win easily.

8. SILVER LINING

The silver lining is the optimistic part of what might otherwise be gloomy. The expression can be traced back directly to a line from Milton about a dark cloud revealing a silver lining, or halo of bright sun behind the gloom. The idea became part of literature and part of the culture, giving us the proverb “every cloud has a silver lining” in the mid-1800s.

9. HAVE YOUR WORK CUT OUT

The expression “you’ve got your work cut out for you” comes from tailoring. To do a big sewing job, all the pieces of fabric are cut out before they get sewn together. It seems like if your work has been cut for you, it should make job easier, but we don’t use the expression that way. The image is more that your task is well defined and ready to be tackled, but all the difficult parts are yours to get to. That big pile of cut-outs isn’t going to sew itself together!

10. THROUGH THE GRAPEVINE

A grapevine is a system of twisty tendrils going from cluster to cluster. The communication grapevine was first mentioned in 1850s, the telegraph era. Where the telegraph was a straight line of communication from one person to another, the “grapevine telegraph” was a message passed from person to person, with some likely twists along the way.

11. THE WHOLE SHEBANG

The earliest uses of shebang were during the Civil War era, referring to a hut, shed, or cluster of bushes where you’re staying. Some officers wrote home about “running the shebang,” meaning the encampment. The origin of the word is obscure, but because it also applied to a tavern or drinking place, it may go back to the Irish word shebeen for a ramshackle drinking establishment.

12. PUSH THE ENVELOPE

Pushing the envelope belongs to the modern era of the airplane. The “flight envelope” is a term from aeronautics meaning the boundary or limit of performance of a flight object. The envelope can be described in terms of mathematical curves based on things like speed, thrust, and atmosphere. You push it as far as you can in order to discover what the limits are. Tom Wolfe’s The Right Stuff brought the expression into wider use.

13. CAN’T HOLD A CANDLE

We say someone can’t hold a candle to someone else when their skills don’t even come close to being as good. In other words, that person isn’t even good enough to hold up a candle so that a talented person can see what they’re doing in order to work. Holding the candle to light a workspace would have been the job of an assistant, so it’s a way of saying not even fit to be the assistant, much less the artist.

14. THE ACID TEST

Most acids dissolve other metals much more quickly than gold, so using acid on a metallic substance became a way for gold prospectors to see if it contained gold. If you pass the acid test, you didn’t dissolve—you’re the real thing.

15. GO HAYWIRE

What kind of wire is haywire? Just what it says—a wire for baling hay. In addition to tying up bundles, haywire was used to fix and hold things together in a makeshift way, so a dumpy, patched-up place came to be referred to as “a hay-wire outfit.” It then became a term for any kind of malfunctioning thing. The fact that the wire itself got easily tangled when unspooled contributed to the “messed up” sense of the word.

16. CALLED ON THE CARPET

Carpet used to mean a thick cloth that could be placed in a range of places: on the floor, on the bed, on a table. The floor carpet is the one we use most now, so the image most people associate with this phrase is one where a servant or employee is called from plainer, carpetless room to the fancier, carpeted part of the house. But it actually goes back to the tablecloth meaning. When there was an issue up for discussion by some kind of official council it was “on the carpet.”

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