Many businesses have created community programs or foundations, matched employee donations, and increased charitable giving due to the Tax Cuts and Jobs Act
Companies from a variety of industries across the United States have increased their charitable and community giving, citing the Tax Cuts and Jobs Act as a factor.
Centennial Bolt is using tax savings to combat homelessness in Denver. The company supported the opening of a new, 150-bed women’s shelter:
In addition, Centennial Bolt is using some of its tax savings to give back to the community—namely, its efforts to combat homelessness in its native Denver. At the end of last year, Centennial Bolt supported the opening of a new, 150-bed women’s shelter—helping an important group of people that have long been overlooked.
Best Buy made a $20 million contribution to the Best Buy Foundation to expand teen tech centers and Geek Squad Academies. Best Buy plans to bring technology training to 1 million underserved teens a year:
In addition, Best Buy is making a one-time contribution of $20 million to the Best Buy Foundation to help further expand its teen tech centers and Geek Squad Academies across the U.S.
“Our goal was simple: to say ‘thank you’ to more than 100,000 of our employees and help accelerate our work to bring much needed technology training to 1 million underserved teens a year,” said Jeff Shelman, a Best Buy spokesman.
American Family Insurance is contributing $10 million to its Dream Foundation and is matching employee charitable donations two-to-one:
American Family said Friday the company will contribute $10 million to its Dreams Foundation, which supports programs and provides grants to nonprofits. This year, American Family said, the foundation will provide a one-time, two-to-one match for employee and agent donations to qualifying charities, a boost from the one-to-one match in place since the Dreams Foundation was established in 2016.
*** The following list includes 74 examples of increased charitable, foundation, or community contributions where the Tax Cuts and Jobs Act was cited as a factor. These examples are culled from ATR’s national list (www.atr.org/list) of tax reform good news. Please send any list additions to [email protected] ***
1st Summit Bank (Johnstown, Pennsylvania)
Johnstown, Pa.-based 1st Summit Bank provided a $1,000 bonus to all full-time employees on top of 2017 year-end bonuses, raised its salary ranges and increased its charitable giving budget by 10 percent. – Jan 22, 2018 ABA Banking Journal excerpt
Adams Community Bank (Adams, Massachusetts)
Finally, the Bank anticipates having more money to use for our long-standing goal of donating 10% of net income each year to local charitable and non-profit initiatives.
“The recent change to the Federal tax law offered a unique opportunity to assess how we can use this savings to improve our community,” said Charles O’Brien, President and CEO.
The bank will benefit from the lowering of corporate tax rates and as a true community bank headquartered in the Berkshires we would like to pass along these savings right here at home by investing in our staff, our customers, and the local community. These initiatives will put more money into the pockets of our employees, our customers, and the local non-profit community which will serve to benefit the Berkshire economy. We are thrilled that more than 80% of our staff will be positively impacted by these changes. In addition we are planning to add to our staff during 2018 by hiring several employees to better serve our growing customer base.– Jan. 25, 2018 Adams Community Bank press release
Advance Financial (Nashville, Tennessee)
In response to President Trump signing the tax reform bill, Advance Financial Chief Experience Officer Tina Hodges announced that the company will be sharing tax savings with its employees and with the communities it serves.
In an e-mail sent to all employees this morning, Hodges outlined three ways in which Advance Financial is passing on tax savings:
1) Increasing its 401(k) match from 3% to 5% for all employees
2) Increasing the share of profits that front line employees can receive from 3% to 5% — (Front line employees, who man Advance Financial’s 85 locations across Tennessee, account for 85% of the company’s 800+ employees.)
3) Increasing giving to the Advance Financial Foundation by 8% — (The foundation provides donations to non-profit organizations in communities served by Advance Financial.) – Jan 5, 2018 Advance Financial press release
Ally Financial Inc. (Charlotte, North Carolina)
The company plans to use some of the tax savings to pay a $1,000 bonus to its employees, and to increase its charitable contributions by around $6 million. – Jan. 30, 2018 American Banker article excerpt
Altria Group Inc. (Richmond, Virginia)
The Henrico County-based parent company of cigarette maker Philip Morris USA said it also plans to set aside $35 million over three years for philanthropic programs in the communities where it has operations, focusing particularly on nonprofit programs in youth development and workforce preparedness. The money is in addition to the roughly $55 million a year that Altria typically donates to philanthropy, a company spokeswoman said.
“Our employees drive our success,” said Marty J. Barrington, the company’s chairman and CEO, in a statement. “This bonus is one way we say thank you for everything they do to make Altria a business leader and a leader in our communities.” – Feb. 1 2018, Richmond Times- Dispatch article excerpt
Amboy Bank (Old Bridge, New Jersey)
The New Jersey Bankers Association said Amboy Bank was “sharing the benefits of the recent tax reform.”
“They are joining the growing group of banks across New Jersey and the country that are rewarding employees with increased wages, special bonuses and enhanced benefits programs as well as increased funding for charitable giving,” president and CEO John E. McWeeney, Jr. said in a statement. – Feb. 8, 2018 NJ Advance Media article excerpt
American Family Insurance (Madison, Wisconsin)
American Family said Friday the company will contribute $10 million to its Dreams Foundation, which supports programs and provides grants to nonprofits. This year, American Family said, the foundation will provide a one-time, two-to-one match for employee and agent donations to qualifying charities, a boost from the one-to-one match in place since the Dreams Foundation was established in 2016. – Jan. 26 2018, Milwaukee Journal Sentinel article excerpt
Amgen (Thousand Oaks, California)
We’ll also grow our already substantial commitment to our communities with plans for the Amgen Foundation’s investments in the proven Amgen Scholars and Amgen Biotech Experience programs which we expect to reach $100 Million of commitment within 4 years. We have engaged some 600,000 college and high school students in person through these programs and consider this our commitment to helping to build a pipeline of talented scientists and biologists in the U.S. and beyond.
Through our Foundation’s philanthropic giving we expect to deploy $100 Million over the next 5 years in the communities where we work and live. – Amgen CEO Bob Bradway, Amgen 4th quarter 2017 earnings call
Apple (Cupertino, California)
The company is also increasing funding for its ConnectED program, so students in historically underserved communities have a chance to learn app coding skills and enjoy other benefits of technology in the classroom. – January 17, 2018 Apple press release excerpt
BB&T (Winston-Salem, North Carolina)
BB&T Corporation today announced additional investments in its associates and communities made possible through the tax reform package recently signed into law. In light of the new corporate tax rate deductions, BB&T’s Executive Management team has made the decision to share some of the related benefits including:
Donating $100 million to BB&T’s philanthropic fund to support charitable organizations in our communities – Dec. 22, 2017 BB&T press release excerpts
Beckett Financial Group (West Columbia, South Carolina)
We recognize that our team members are the best ones to determine how to spend their dollars. This provides an opportunity for each individual to either spend money locally, save it for their retirement, decrease debt, or donate dollars to charity. In addition, we will be increasing our employee matching funds campaign by matching each of their contributions to charities dollar-for-dollar up to $1,000 per employee. – Jason (JB) Beckett, Managing Partner, Beckett Financial Group
Berkshire Hills Bancorp Inc. (Pittsfield, Massachusetts)
Berkshire Hills Bancorp, Inc., the parent of Berkshire Bank, today announced additional investments in its employees and communities following the recent passage of federal tax reform legislation.
These investments include:
Contributing $2 million to the Berkshire Bank Charitable Foundation which supports charitable organizations, scholarships, and volunteerism across Berkshire’s local communities. This will bolster the foundation’s endowment and allow for increased local giving. Last year we provided over $2 million to our local communities, complementing our employee volunteer program which helps our employees contribute over 40,000 hours of volunteer service each year. – Jan. 4, 2018 Berkshire Hills Bancorp Inc. press release excerpts
Best Buy (Richfield, Minnesota)
In addition, Best Buy is making a one-time contribution of $20 million to the Best Buy Foundation to help further expand its teen tech centers and Geek Squad Academies across the U.S.
“Our goal was simple: to say ‘thank you’ to more than 100,000 of our employees and help accelerate our work to bring much needed technology training to 1 million underserved teens a year,” said Jeff Shelman, a Best Buy spokesman. —Feb. 2 2018, Minneapolis Star Tribune article excerpt
Blue Cross and Blue Shield of North Carolina (Durham, North Carolina)
North Carolina’s largest health insurer said Thursday its windfall from the new federal tax cut will hold down rate increases in the future, but this year it will use it to give charities $40 million and pay employees a $1,000 bonus.
Blue Cross and Blue Shield of North Carolina said it will give away millions this year for health initiatives and give bonuses to about 4,700 employees. — Feb. 22 2018, Winston-Salem Journal article excerpt
BMO Harris Bank (Chicago, Illinois)
The bank cited the recent federal tax reform, which lowered the corporate income tax rate, in its decision to boost employee compensation.
The new rate is effective immediately, the company said Tuesday. BMO Harris, which is based in Chicago and owned by Toronto’s BMO Financial Group, has more branches than any other bank in Wisconsin.
BMO Harris also said it will increase its level of philanthropic community giving by 10% in 2018.
“We’re pleased to share the benefits of the strong economic conditions, and the effects of the recent tax reform changes, with our employees and communities,” David Casper, president and chief executive of BMO Harris Bank, said in a statement. “Our success is tied directly to the communities we serve, and we’re proud of the exceptional job our employees do in providing a great customer experience.” – Jan. 31 2018, Milwaukee Journal Sentinel article excerpt
Boeing Company (Chicago, Illinois)
Boeing Chairman, President and Chief Executive Officer Dennis Muilenburg praised the tax bill passed by Congress and about to be signed into law as a critical driver of business, economic growth and innovation for the United States and for Boeing.
“On behalf of all of our stakeholders, we applaud and thank Congress and the administration for their leadership in seizing this opportunity to unleash economic energy in the United States,” said Muilenburg. “It’s the single-most important thing we can do to drive innovation, support quality jobs and accelerate capital investment in our country.”
While Boeing is still studying all of the provisions of the new legislation, Muilenburg announced immediate commitments for an additional $300 million in investments that will move forward as a result of the new tax law:
$100 million for corporate giving, with funds used to support demand for employee gift-match programs and for investments in Boeing’s focus areas for charitable giving: in education, in our communities, and for veterans and military personnel. – Dec. 20, 2017 Boeing Company press release excerpts
Brown-Forman Corporation (Louisville, Kentucky)
Brown-Forman announced today that its Board of Directors has approved a number of capital deployment actions aimed at benefiting shareholders, employees, and the community. These actions include a stock split and a special dividend, as well as additional funding of the company’s defined benefit program and the creation of a charitable foundation.
Additionally, with the goal of helping to fund the company’s ongoing philanthropic endeavors in the communities where Brown-Forman employees live and work, the company is pursuing the creation of a foundation with a contribution of $60-$70 million. The company anticipates that the foundation’s proceeds will provide a consistent amount of revenue per year for its charitable giving program independent of the company’s yearly earnings. – Jan. 23, 2018 Brown-Forman Corporation press release excerpts
Centennial Bolt (Denver, Colorado)
In addition, Centennial Bolt is using some of its tax savings to give back to the community—namely, its efforts to combat homelessness in its native Denver. At the end of last year, Centennial Bolt supported the opening of a new, 150-bed women’s shelter—helping an important group of people that have long been overlooked. Centennial Bolt also plans to expand its charitable giving to California, where it also has a sister facility, Cordova Bolt, Inc. where he is also the President of the family business. – April 24, 2018 National Association of Manufacturers article excerpts
Citizens Financial Group (Providence, Rhode Island)
“Corporate tax reform provides us with an opportunity to recognize the role our colleagues have played in delivering better results for customers and shareholders, and to positively impact the communities where we live, work and play,” said Bruce Van Saun, chairman and chief executive officer of Citizens Financial Group.
Specifically, the bank plans to contribute $10 million to the Citizens Charitable Foundation to further the impact it makes on its communities and to benefit its partners. The Foundation focuses on improving financial literacy, helping to provide affordable housing and fight hunger, and supporting economic development across the Citizens footprint. – Citizens Financial Group press release excerpts
Commerce Bancshares, Inc. (Kansas City, Missouri)
The new tax reform legislation should be very positive for economic growth and capital investment which will benefit the banking industry.
In addition, we are very pleased to provide significant additional funding to The Commerce Bancshares Foundation which will strengthen our ability to continue to support the communities where we do business and whose prosperity is so important to our business. – Jan. 2, 2018 Commerce Bancshares, Inc. press release excerpts
Community Valley Bank (El Centro, California)
In consideration of the expected benefit from the corporate tax reduction, the bank awarded each employee a $500 bonus. The bank has also enhanced employee education and training opportunities for 2018 and expanded its community contribution budget toward local non-profit services. — Jan. 29 2018, Community Valley Bank press release
CUNA Mutual Group (Madison, Wisconsin)
CUNA Mutual Group said Tuesday the company is making its largest contribution ever to its philanthropic foundation, a $20 million donation made possible in part by federal tax reform. – Feb. 13 2018, Journal Sentinel article excerpt
Customers Bank (Wyomissing, Pennsylvania)
Customers Bank will also increase its charitable giving by $1 million in 2018, and will continue to invest in its talent, who all already earn at least $15 per hour – a rarity in banking. “By increasing our charitable giving and investing in our talent, we’re investing in the growth of the communities we serve,” said Sidhu. “These tax savings will ensure that we can put more money in the hands of communities, families, and small business owners. We expect that this bill will be positive for growth.” – Jan. 5, 2018 Customers Bank press release
Ecolab Inc. (St. Paul, Minnesota)
In response to the passage of the new U.S. tax law, Ecolab announced its intent to make a $25 million contribution to the Ecolab Foundation. Since 1986, the Ecolab Foundation has contributed more than $100 million to communities in which we do business by providing basic needs, including hunger relief and affordable housing; supporting education, the arts and environmental conservation; as well as providing support to global relief organizations during times of natural disasters. – Jan. 23, 2018 Ecolab Inc. press release
Evans Bancorp Inc. (Hamburg, New York)
Evans Bancorp, Inc., a community financial services company serving Western New York since 1920, today announced a number of investments, continuing a pattern of support for its employees and the communities it has served and invested in for almost a century. These investments are being made in conjunction with expected improvements in after-tax income as a result of Federal tax reform in the Tax Cuts and Jobs Act.
The Company recently made a $300,000 contribution to its Foundation, the largest such contribution in its history. Disbursements from the Foundation are invested in not-for-profit entities to enhance the quality of life within Western New York.
Benefits provided by tax reform will also allow the Company to increase its returns to shareholders and provide additional investment in our community. Evans is currently researching initiatives that will be impactful and make a difference in the fabric of the community that is responsible for our success.
“With a nearly 100-year record of serving our communities, employees, customers and shareholders, these actions will expand our efforts even further,” stated David J. Nasca, President and CEO of Evans Bancorp. “As we will be directly benefiting from the tax reform, we believe that it is our obligation to share it with all of our stakeholders for the advancement of Western New York.”—Jan. 31 2018, New York Business Journal article excerpts
Express Scripts (St. Louis, Missouri)
The company will also create a $30 million education fund for employees’ children. The fund will assist with paying for college and vocational training.
Wentworth said additional funds will be donated to charitable programs in the communities the company serves. – Feb. 28 2018, St. Louis Post-Dispatch article excerpt
Fidelity Bank (Dunmore, Pennsylvania; not to be confused with Fidelity Investments)
Fidelity Bank is pleased to announce additional investments in its Bankers and communities made possible by the passing of the recent tax reform bill. Fidelity Bank’s Board of Directors and Executive Management Team have decided to share in the benefits of the lower corporate tax burden by:
Taking a $500,000 contribution to the newly created Fidelity D & D Charitable Foundation that will support the local philanthropic and community needs. The newly formed and funded foundation creates a sustainable way to give back to the communities Fidelity Bank serves.
“The tax reform law creates an opportunity to reward our most valuable asset, our Bankers, who are working hard each day to serve our clients, building strong relationships in our communities, and creating long term shareholder value. The Fidelity Bankers put forth perfect effort to position Fidelity Bank as the best bank,” said Daniel J. Santaniello, President & Chief Executive Officer. — Jan. 2 2018, Fidelity Bank press release excerpts
First Farmers Bank & Trust (Converse, Indiana)
In response to the recently passed legislation affecting corporate tax, Gene Miles, President and CEO of First Farmers Bank & Trust recently announced a new corporate wage and community support program that commits to four points of emphasis.
1. Raise the minimum hourly starting wage by $2.50 for all new FFBT employees.
2. Provide a minimum year-end bonus of $750 annually to all full time FFBT employees.
3. Invest a minimum of $250,000 annually to community development and support of local branch markets.
4. Invest a minimum of $150,000 annually to FFBT employee development and education.
“With this special opportunity, we are pleased to further our commitment to our community and to our people. Since 1885, First Farmers has prided itself in supporting the communities in which we serve and our employees are the primary reason for our corporate success and growth”, Gene Miles, President and CEO, First Farmers Bank & Trust. – First Farmers Bank & Trust statement
First Federal Community Bank (Dover, Ohio)
First Federal Community Bank of Dover gave bonuses to its part- and full-time employees and increased its charitable contributions. – June 1, 2018, Steve Stivers Article excerpt
First Financial Bancorp (Cincinnati, Ohio)
Additionally, the bank has made a $3 million contribution to its newly established charitable foundation. This announcement comes as a result of the recently passed tax legislation, which includes a reduction in corporate tax rates. – Jan. 3, 2018 First Financial Bancorp press release
First Midwest Bancorp, Inc. (Itasca, Illinois)
First Midwest Bancorp, Inc. (“First Midwest”) the holding company of First Midwest Bank, announced today expanded investments in its colleagues and communities. These investments include the following:
A $2 million contribution to the First Midwest Charitable Foundation.
“As we celebrate 35 years as First Midwest, our continuing investment in our colleagues, communities and business stands at the core of our success. I am therefore very pleased to take these important actions,” said Michael L. Scudder, Chairman and Chief Executive Officer of First Midwest. “The growth of our Company as well as the expected benefits from tax reform position us to reward our colleagues for their commitment and hard work as well as expand our investment in the communities in which we live and work.” — Jan. 11, 2018 First Midwest Bancorp, inc. press release excerpts
First Northern Community Bancorp (Dixon, California)
Furthermore, in line with First Northern’s Purpose Statement of being committed and passionate about making a difference in its communities, the Bank will be contributing an additional $100,000, or $10,000 within each of its 10 local branch markets, to support local non-profits and charities. The ‘First Northern Community Giving & Outreach Program’ is the name of the Bank’s 2018 employee-engagement initiative whereby employees bank wide will be involved in the nonprofit selection and notification process, as well as participating in team volunteer time with the non-profit organizations. First Northern’s employees volunteer an average of over one week per year in community service, and the Bank has donated millions to its communities over the past decade. – Feb 1, 2018 First Northern Community Bancorp press release
F.N.B. Corporation (Pittsburgh, Pennsylvania)
F.N.B. Corporation today announced a significant financial commitment to both its employees and the communities it serves relating to the signing of the Tax Cuts and Jobs Act of 2017.
During the first half of 2017, FNB also made a $5 million contribution to its Foundation, which was established to provide grants for a variety of non-profit entities throughout its multi-state footprint. Moving forward, these funds will be utilized to support causes within its service area. This contribution was also part of a broader community benefit plan focusing on charitable giving, community development investments and lending efforts serving financially-vulnerable and historically underserved populations.
“We are pleased that the current tax law changes present the opportunity for substantial benefits for our clients, employees, communities and shareholders,” said Vincent J. Delie, Jr., Chairman, President and Chief Executive Officer of F.N.B. Corporation. “Increased investment in our employees and in improving the quality of life within our communities creates an enhanced experience for our clients and superior long-term shareholder returns.” – Jan. 18, 2018 F.N.B. Corporation press release excerpts
Fulton Financial Corporation (Lancaster, Pennsylvania)
As a result of the recently enacted Tax Cuts and Jobs Act of 2017, Fulton will commit an additional $2 million as part of its Fulton Forward Initiative, which broadly supports communities across the company’s footprint. The initiative was designed to support underserved communities to create affordable housing, provide financial literacy and education programs, and to accelerate economic development.
“Giving is a cornerstone of our culture, and we already provide thousands of volunteer hours and millions of dollars of existing support to community organizations,” said Wenger. “I am thrilled that our communities and employees will benefit from the savings we will realize from the changes in our corporate tax rate.” – Jan. 18, 2018 Fulton Financial Corporation press release excerpts
Gate City Bank (Fargo, North Dakota)
“This new tax reduction enables us to make decisions that benefit our customers, communities and team members in a significant way which has been our culture for decades. Gate City Bank is making a commitment to reinvest an additional $1.6 million in 2018.”
Giving back and volunteering is extremely important to us. We want to continue our passion for making a difference through giving. Since 2005, we have volunteered over 174,000 hours and donated over $19.8 million to help build a better quality of life in the communities we serve. In 2018, we will be donating an extra $500,000 to our communities! This is in addition to our current commitment of over $1 million including $300,000 for Giving Hearts Day charities on February 8th to celebrate our 95th anniversary across North Dakota and west central Minnesota. – Gate City Bank statement excerpts
Great Southern Wood Preserving, Inc. (Abbeville, Alabama)
In late 2017, Congress passed and the President signed into law legislation providing significant tax breaks for corporations. Across America, many companies have chosen a variety of options for applying these savings, such as providing one-time bonuses to employees, increasing charitable giving and reinvesting in facilities upgrades.
For its part, Great Southern Wood will make investments on an ongoing basis to lower healthcare costs for eligible employees, allow employees to accrue more paid time off based on length of service, develop scholarships for dependents of employees and enhance other benefits going forward.
“I’m very pleased that every employee across the company will see the results of the change in tax laws,” said Jimmy Rane, Great Southern Wood’s founder, president and CEO. “The success we’ve enjoyed as a company comes from every one of us working hard and doing our part, and I can’t think of a better way to apply our tax savings than by further investing in benefits programs for our employees. We strive to be an employer that draws the best and brightest to our company, and we believe that providing stronger benefits is essential to this continuing effort.”
Great Southern employs almost 1,200 at locations in eleven states. [Texas, Missouri, Arkansas, Georgia, Alabama, Mississippi, Louisiana, Pennsylvania, Virginia, Maryland, Florida] — March 29, 2018 Great Southern Wood Preserving, Inc. press release
Great Western Bancorp, Inc. (Sioux Falls, South Dakota)
In addition to making investments in its people, Karels said the Company is planning to double its annual contribution to its hallmark community reinvestment program – Making Life Great Grants.
“The doubling of our commitment to our Making Life Great Grants program reflects a long-term expansion in our ability to invest in and revitalize our communities for years to come,” Karels continued. Giving back to the communities where we work and live is part of our culture and aligns with our mission to Make Life Great. It’s the right thing to do.”
The investments in people and community will take effect over the next several months. – Jan. 10, 2018 Great Western Bancorp, Inc. press release
Gulf Coast Bank & Trust Company (New Orleans, Louisiana)
Gulf Coast Bank & Trust Company CEO & President Guy T. Williams announced a 50% increase in funds to be given away in its Community Rewards Program – an annual online contest hosted by Gulf Coast Bank that awards funds to the top 10 nonprofit organizations voted on by the community.
Williams said, “This year we are increasing the amount to be given away in our Community Rewards Program from $50,000 to $75,000 in response to the tax reform bill and because we want to help our local nonprofits even more.”– Jan. 4, 2018 Gulf Coast Bank & Trust Company press release
Humana (Louisville, Kentucky)
One change with immediate consequences is the new tax reform law which took effect January 1. Like many U.S. companies, Humana will begin benefitting this year from one element of this law: a lower corporate income tax rate. Our steadfast commitment to simplifying the healthcare experience and improving health outcomes for seniors, for TRICARE beneficiaries, and for employer group members remains our top priority, and will guide our decisions as to how to allocate tax-reform proceeds.
In addition, we will also be sharing with you additional investments that will align around three important Humana priorities:
-Community investments to assist in addressing the social determinants of health for seniors, such as food insecurity, social isolation, and transportation
-Accelerated investments in technology and operational processes to reduce consumer and clinician friction points, increase engagement in health-related activities and increase productivity – Excerpts from Jan. 15, 2018 letter to associates
Huntington Ingalls Industries (Newport News, Virginia)
Newport News-based Huntington Ingalls Industries also will accelerate $200 million in discretionary contributions to its pension plans and increase charitable contributions in the community, said Petters. – Feb 15, 2018, Daily Press Excerpt
J.M. Smucker Company (Orrville, Ohio)
With the benefit resulting from U.S. income tax reform, the Company contributed an incremental $20.0 million to its employee pension plan and has announced a one-time bonus of $1,000 to nearly 5,000 employees and a $1 million increase to its charitable contributions. – Feb. 16, 2018 J.M. Smucker Company press release
JPMorgan Chase & Co. (New York, New York)
This long-term investment, which both increases and accelerates the firm’s current growth, is made possible by the firm’s strong and sustained business performance, recent changes to the U.S. corporate tax system and a more constructive regulatory and business environment.
Through this new investment, the firm will develop hundreds of new branches in several new U.S. markets, increase wages and benefits for hourly U.S. employees, make increased small business and mortgage lending commitments, add 4,000 jobs throughout the country and increase philanthropic investment.
The investment brings together the best of the firm’s business and philanthropic efforts to drive inclusive economic growth and help create opportunity for more Americans.
The $20 billion investment will focus on the following key areas:
1.Investing in employees with further increases to wages and benefits. Wages will increase 10 percent on average—ranging from between $15 and $18/hour—for 22,000 employees.
2. Expanding the branch network into new U.S. markets, leading to increased small business lending and philanthropic investments, and further support for local low-and moderate-income communities.
3. Increasing community-based philanthropic investments by 40 percent to $1.75 billion over five years.
4. Increasing small business lending by $4 billion.
5. Accelerating affordable housing lending by (a) increasing mortgage lending in low-and moderate-income communities and (b) accelerating commercial lending to build affordable housing. – Jan. 23, 2018 JPMorgan Chase & Co. press release
Jonah Bank (Wyoming)
Jonah Bank has announced it will give each of its employees a thousand dollar bonus and “significantly increase” its giving in the Casper and Cheyenne communities as a result of Congress passing the tax reform bill, according to a press release. – K2.com powered by KTWO news article excerpt
Kish Bancorp, Inc. (Belleville, Pennsylvania)
“The Tax Cuts and Jobs Act will be very favorable for banking by reducing corporate income tax rates, stimulating the economy, and providing incentives to invest in infrastructure and employees,” Kish CEO William P. Hayes said.
Sighting an “improved outlook for Kish, Hayes also said it will expand its 2018 budget for support of community and charitable organizations by a minimum of $50,000, about a 33 percent increase.” The company will also elevate its starting minimum wage for entry level personnel. – Jan. 18, 2018 Centre Daily Times article excerpts
M&T Bank Corporation (Buffalo, New York)
Over the past 31 years, The M&T Charitable Foundation has consistently invested in a diverse range of civic, cultural, health and human services organizations that strengthen M&T communities. To sustain that commitment, M&T contributed $50 million to The M&T Charitable Foundation during 2017—the largest amount in the company’s history. By comparison, a total of $178.7 million was contributed by M&T to The M&T Charitable Foundation over the past 10 years. –- Jan. 17, 2018 M&T Bank Corporation press release
MB Financial, Inc. (Chicago, Illinois)
As a result of the recently enacted Tax Cuts and Jobs Act of 2017 MB will contribute $7.5 million to the MB Charitable Foundation, specifically to help the most disadvantaged communities where MB operates for the creation of affordable housing, strong educational programs, vital community services, and to accelerate economic development. “Giving is a cornerstone of our culture,” said Rose Bouman, Executive Vice President of MB Financial Bank, “Our programs such as ‘MB on the Block’, wherein over 500 MB employees dedicate a day of service to the community each year, are at the heart of who we are.” – Jan. 2 2018, MB Financial, Inc. press release
Merck (Kenilworth, New Jersey)
The recently enacted U.S. tax legislation improves Merck’s financial flexibility to invest in sustainable long-term value creating opportunities. In addition to the company’s ongoing investment in R&D, business development and continued support of the dividend, as well as share repurchases, the company also:
Plans to invest approximately $12 billion over 5 years in capital projects including approximately $8 billion in the United States
Made a contribution to the Merck Foundation in the fourth quarter of 2017
Plans to provide a one-time, long-term incentive award for its eligible non-executive employees in the second quarter of 2018 – Feb. 2 2018, Merck press release
Meridian Bancorp, Inc. (Boston, Massachusetts)
Meridian Bancorp, Inc. (the “Company” or “Meridian”) (NASDAQ:EBSB), the holding company for East Boston Savings Bank (the “Bank”), following the new tax law being passed by Congress and signed by the President on December 22, 2017, announced the following enhanced commitments to the Bank’s employees, infrastructure investment and charitable giving which will benefit its customers and the communities it serves:
· The minimum wage for all employees will increase to $15 per hour
· An additional 20% will be added to the 2017 bonus as part of the Bank’s Incentive Compensation Plan that will be paid to the Bank’s 500+ employees in January 2018
· An increase to the Capital Spending Budget as a result of plans to build six new branch locations in 2018
· An increase in charitable giving by targeting $1 million in donations to community and non-profit organizations in 2018 – Jan. 3 2018, Meridian Bancorp, Inc. press release excerpt
NexTier Bank (Butler, Pennsylvania)
“The tax reform bill not only allows us to invest in our employees, but to accelerate lending to small businesses, increase hiring, and enhance our charitable giving. It’s a win-win,” continued Rosenberger. “We fully expect to see significant growth, not only as a company, but throughout the local and national economy as a result of this historic legislation.” – Jan. 12 2018, NexTier Bank press release
Peoples Bank (Magnolia, Arkansas)
Magnolia, Ark.-based Peoples Bank provided a $500 bonus and contributed $50,000 to its charitable fund. – Jan 16, 2018 ABA Business Journal excerpt
Pilgrim Bank (Cohasset, Massachusetts)
Increased charitable contributions budget for 2018 – ABA Press Release excerpt
PNC Financial Services Group, Inc. (Pittsburgh, Pennsylvania)
PNC will: Make a $200 million contribution to the PNC Foundation, which supports early childhood education through PNC’s Grow Up Great® initiative. – Dec. 22 2017, PNC press release
Regions Financial Corporation (Birmingham, Alabama)
Contributing $40 million to the company’s charitable foundation to support financial education, job training, economic development, and affordable housing, all of which help foster an environment of inclusive prosperity and create shared value for Regions’ customers, communities, and shareholders. – Regions Financial Corporation press release
Robert W. Baird & Company (Milwaukee, Wisconsin)
Baird leaders will receive the benefit in the form of a $1,500 donation to the charity of their choice, which could amount to an additional $1.2 million being contributed to the community in 2018, the company said.
The one-time benefit will be awarded to Baird’s more than 3,500 global employees and amounts to more than $5 million. – March 2 2018, Milwaukee Journal Sentinel article excerpt
Scheels All Sports (Fargo, North Dakota)
SCHEELS is about our PEOPLE and the communities in which we live and work. As we enter 2018, the new tax reform bill offers a huge opportunity for American business and notably our employee-owned company. This new bill allows SCHEELS to:
– Invest in new stores
– Create jobs in new and existing markets
– Increase our charitable impact in our communities
– $1,000 bonus for Scheels associates working >1000 hours
– $500 bonus for Scheels associates working 500 hours
It’s opportunities like this that give our employee-owned company the ability to create a vision for steady and healthy growth in our communities. – Dec. 28, 2017 Scheels statement
SkyWest Airlines (St. George, Utah)
“Our employees are the foundation of everything we do,” said SkyWest, Inc. President and CEO Chip Childs. “This tax reform enhances our ability to maintain strong, sustainable careers and we’re pleased to recognize our people by passing its positive impact throughout 2018 and beyond. Additionally, given the new long-term benefits of the reform, SkyWest plans to increase our charitable contributions, as well as reinvest in our fleet and across our operation to provide even more confidence in our airline and future.” – SkyWest Memo Excerpt
Sound Financial Bancorp Inc. (Seattle, Washington)
At the Annual Employee Meeting on February 3rd, President and CEO Laurie Stewart unveiled a suite of employee and community initiatives. These include enhancing employee incentive compensation, expanding charitable giving and implementing a down payment assistance program for first time homebuyers. – Feb. 9 2018, Sound Financial Bancorp Inc. press release excerpt
Southwest Airlines (Dallas, Texas)
Kelly continued, “I am also proud to report that we have donated an incremental $5 million to charitable causes as a result of tax reform. Throughout 2018, we will work with our charitable partnerships to put this money to work in the communities we serve and where our Employees work and live.” – Jan. 2 2018, Southwest Airlines press release
State Street (Boston, Massachusetts)
State Street will use this year’s proceeds from the US tax overhaul measure to improve employees’ retirement benefits and training and community grant programs, the company’s chairman and chief executive said. – Jan. 23 Dow Jones Newswires report
SunTrust Banks, Inc. (Atlanta, Georgia)
“The anticipated benefits from tax reform allow us to build upon our purpose of Lighting the Way to Financial Well-Being in a sustainable way by implementing actions that will have a multi-year impact for many of the constituents that count on us,” said Bill Rogers, SunTrust chairman and CEO. “We believe tax reform will improve the competitiveness of American business and promote economic growth, and this gives us confidence to invest more in our company, our teammates and the communities we serve.”
SunTrust has made the following commitments:
$50 million in additional community grants to national and local financial well-being efforts – Dec. 28 2017, SunTrust Banks, Inc. press release excerpt
Taco John’s (Cheyenne, Wyoming)
The Executive Council of Taco John’s International, Inc. (Vice Presidents and above) donated their $1,000 bonuses (a total of $10,000) to CORE, a national not-for-profit organization that grants support to children of food and beverage service employees who are navigating life-altering circumstances.
“At Taco John’s International, our team is our family, so sharing the financial benefits that were a result of the recent tax reform legislation only makes sense,” said Jim Creel, CEO of Taco John’s International, Inc. “We encourage other restaurant brands to follow our example and give a portion of their savings to the people that are at the heart of what we do and to great organizations like CORE that support our crew. One hundred percent of CORE’s funds directly benefit children of restaurant employees who have been afflicted with life-threating conditions.”
“We are so grateful to the Taco John’s team for their generous donation to our CORE family members,” said Lauren LaViola, executive director of CORE. “Donations like theirs help us provide for our food and beverage service families experiencing loss, illness and other life-changing circumstances, and help us get closer to our goal of helping even more families across all 50 states in 2018.”
The total amount that Taco John’s International, Inc. gave exceeded $150,000.00. – Feb. 28, 2018 Taco John’s International, Inc. press release
TCF Financial Corporation (Wayzata, Minnesota)
Additionally, TCF will donate $5 million to TCF Foundation to increase grants to nonprofit organizations in the communities it serves, including increasing its match of team member contributions to nonprofit organizations from 100 percent to 200 percent in 2018. – Friday Dec. 29, 2017 TCF Financial Corporation press release
Thermo Fisher Scientific (Waltham, Massachusetts)
Thermo Fisher Scientific Inc., the world leader in serving science, will make additional investments totaling $50 million as a result of the benefit of recently enacted Federal tax reform legislation in the U.S. This investment includes:
· $34 million for a one-time bonus of $500 to be paid to each of the company’s approximately 68,000 eligible non-executive employees globally
· $16 million to accelerate key breakthrough R&D programs and also to increase the impact of the company’s sustainability initiatives and philanthropic activities in support of STEM (Science, Technology, Engineering and Math) education. – Jan. 31 2018, Thermo Fisher Scientific press release
The Rabine Group (Schaumburg, Illinois)
Take my company, the Rabine Group, a group of nine small Illinois-based companies providing paving, roofing, property assessment technology, dump trucking and exterior facility maintenance and construction. Because of tax cuts, our companies are able to do additional things that will spark economic growth. These include raises and bonuses for our teammates, larger donations to nonprofits, more hiring and jobs, larger research and development (R&D) spending, and expansion.
We will be giving raises that are roughly 50% larger than the past eight years and also larger bonus incentives. Our donations to the nonprofit foundations we support will in many cases double in 2018, and we will be adding jobs across the board from entry-level to leadership.
The combination of small business and corporate tax cuts has created small business optimism like we haven’t seen in more than a decade. Small businesses like ours work for great companies like Exelon, Walmart, Home Depot, and Lowe’s. And when they are growing, we can count on more opportunity. — Feb. 21, 2018 USA Today op-ed excerpt
The TJX Companies Inc. (Framingham, Massachusetts)
The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:
Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving. – Feb. 28, 2018 The TJX Companies Inc. press release excerpts
Umpqua Holdings Corporation (Portland, Oregon)
Umpqua Bank, based in Portland, Ore., announced in its latest earnings call that it had paid $3.2 million in employee profit-sharing and contributed $2 million to the Umpqua Bank Charitable Foundation as a result of the tax bill. – Jan. 31 2018, ABA Banking Journal article excerpt
Unum (Chattanooga, Tennessee)
On the heels of announcing record financial results for 2017, Unum today said, in addition to the existing all-employee annual bonus program, it is investing in its people and communities with a new paid parental leave benefit for both mothers and fathers in the U.S.; enhancements to the compensation program so that all U.S. employees earn at least $15 an hour; and an additional $1 million in charitable contributions this year in support of the communities where Unum employees live and work. – Feb. 1 2018, Unum press release excerpt
U.S. Bancorp (Minneapolis, Minnesota)
Cecere continued: “Our one-time $150 million contribution to the U.S. Bank Foundation reflects a long-term expansion in our ability to invest in and revitalize our communities for years to come. We know how important it is to everyone at U.S. Bank that we strengthen our neighborhoods and communities with our time and financial resources. It is a privilege to make this decision to benefit our communities.” – Andy Cecere, President and CEO
Valley Bank (Harrisonburg, Virginia)
“This is an opportunity we haven’t seen during my career, as far as cuts in corporate tax rates,” said Executive Vice President Neil Hayslett. “Rather than just banking all that, so to speak, we wanted to share it with the employees.”
The Timberville-based bank also announced a special dividend to shareholders and the formation of a community fund. During a scheduled training session, the company awarded $250,000 to three community foundations. – Feb. 20 2018, WHSV 3 news article excerpt
Webster Financial Corporation (Waterbury, Connecticut)
Webster Financial Corporation the holding company for Webster Bank, N.A. and its HSA Bank division, today announced an acceleration of investment in its employees and the communities it serves following the passage of new federal tax reform legislation.
These investments include:
· Payment of a one-time $1,000 cash bonus in the first quarter of 2018 to full-time employees who are below the vice president level. This payment will benefit approximately 70 percent of all Webster full-time employees;
· Increasing Webster’s minimum wage to $15 per hour by the end of 2018;
· Beginning in 2018, augmenting Webster’s annual philanthropic and community investment by $1 million; and,
· Enhancing Webster’s investment in strategic employee development initiatives and early career programs, creating new job opportunities in our markets. – Jan. 4 2018, Webster Financial Corporation press release excerpt
Wells Fargo (San Francisco, California)
Wells Fargo also said it was “targeting $400 million in donations to community and nonprofit organizations in 2018” and would target contributions of 2% of after-tax profits for corporate philanthropy beginning in 2019.
“We believe tax reform is good for our U.S. economy and are pleased to take these immediate steps to invest in our team members, communities, small businesses and homeowners,” Wells Fargo Chief Executive Tim Sloan said in the news release. – Dec 21, 2017, Los Angeles Times article excerpt
Winnebago Industries (Forest City, Iowa)
“During the quarter, we recorded a tax reform benefit and expect a similar favorable tax rate for the remainder of Fiscal 2018. We are committed to passing a portion of the tax savings to our hard-working Winnebago Industries employees in the form of a bonus and other selective wage adjustments, making a donation to our foundation, and accelerating facility improvements over the coming months which will create better work environments. As always, I want to sincerely thank each and every one of our employees for their tremendous efforts and dedication to building a stronger future for our Company.” — March 21, 2018 statement of Winnebago Industries President and CEO Michael Happe, Second Quarter Fiscal 2018 announcement
Worldpay Inc. (Cincinnati, Ohio)
An Ohio-based payments-processing giant said Friday it’s giving bonuses, upping pay and improving benefits while crediting the GOP tax cuts.
Worldpay said U.S. hourly workers are getting bonuses of $1,000 to $2,000 each, and some hourly wages are being hiked. The company is increasing its 401(k) match and investments in wellness and recognition programs. Charles Drucker, the company’s executive chairman and co-CEO, said the company also will increase charitable giving. – March 2 2018, U.S. News and World Report article excerpt
Zions Bancorporation (Salt Lake City, Utah)
Zions Bancorporation announced today that as a result of the Tax Cuts and Jobs Act of 2017, it will be increasing ongoing compensation for more than 40% of its employees as of January 1, 2018, and providing nearly 80% of employees with $1,000 bonuses during 2018, subject to certain conditions.
Additionally, Zions intends to contribute $12 million to the Zions Bancorporation Foundation, which is expected to benefit local communities in which Zions does business. In 2017, Foundation beneficiaries included the United Way, youth programs, food pantries, homeless shelters, affordable housing projects, and educational programs.
Zions expects to incur an increase in noninterest expense in the fourth quarter of 2017 of approximately $12 million as a result of the contribution to the Foundation, while compensation adjustments are expected to be incorporated into 2018 expense. — Jan. 2, 2018 Zions Bancorporation press release