Giving Vehicles: family
donor-advised fund, corporate
donor-advised fund
Giving Interests: helping people in need
When Paul White and his business partner, Earl Rasmussen, started
their metal stamping and fabrication business, BTD Manufacturing,
Inc., in 1979, they wanted to create a company unlike most they had
worked for in the past. "Our goal was to start a company that
would always remember its most important asset: its people,"
White says.
White and Rasmussen created a "sharing pyramid" to guide
them in how to use the net profits of their fledgling company, based
in Detroit Lakes. At the top of the pyramid is the reinvestment of a
percentage of profits back into the company, so that it can continue
to grow. On the second level is charitable contributions to help
people in need. Next comes employee profit-sharing, followed on the
fourth and final level by performance incentives for the company’s
management team.
It wasn’t long before BTD was profitable enough to reach the
pyramid’s second level and begin giving to charitable causes. By
1988, the company’s giving program had grown to the point where
White and Rasmussen decided to establish the BTD Manufacturing
Foundation at a local community foundation, so that BTD could provide
a more stable source of charitable funds from year to year.
"The challenge for Earl and I was the company’s day-to-day
operations, and the money was like baggage: it just came along with
it," says White, who has now retired from the company. "Our
goal in life is not to say ‘we have to make X number of dollars.’
Our goal has been to keep our employees as our number one asset,
create opportunities for them, and be able to share some of the
profits of BTD with others who are in need. Our sharing of dollars
with others is one of the most rewarding experiences that a person can
have."
White has also established his own donor advised family fund, the
White Family Foundation, at the same community foundation where
BTD’s corporate fund is located. He says he started the fund so that
his family could "work together and communicate with each other,
and gain a better understanding of ourselves and our Christian
values."
White’s philanthropic interests are driven in large part by his
belief that people with wealth are merely stewards of those dollars on
behalf of God. "God gave each of us specific gifts and
talents," he says. "If we use these talents in earning
dollars, then we need to share those dollars with others."