PND (11/16/99) -- Sale of UPS Stock Doubles Foundation's Assets

The Baltimore-based Annie E. Casey Foundation, which was created by the founder of United Parcel Service, doubled its assets on the package-delivery service's first day of public trading, the Baltimore Sun reports.

Before the public offering, the Casey Foundation's 41.6 million shares of UPS stock — valued at $26 per share — accounted for roughly 56 percent of the value of the 51-year-old philanthropy's $1.8 billion in assets. After the market's close on Wednesday, November 10, the foundation's UPS stock was worth $2.8 billion and comprised nearly 80 percent of the value of the foundation's holdings.

Casey Foundation CFO Rama Ramanathan emphasized that the gain in the value of the foundation's assets was on paper only.

The foundation will wait several months to see where the price of UPS stock settles before deciding how to use its windfall, said foundation president Douglas W. Nelson. "We are hoping it builds a bigger base underneath the work we want to do in the next 10 years," Nelson added.

The Annie E. Casey Foundation was created in 1948 by UPS founder James Casey, who left most of his estate to the foundation when he died in 1983. Named for Casey's mother, a single parent, the organization focuses on helping needy children and families nationwide.

The foundation expects to give out $120 million this year. Its budget for next year, which has not yet been approved, projects about $146 million in grants.

FCnote: The Annie E. Casey Foundation (MD) had assets of $1,569,181,105 and made grants totaling $91,718,780 in the fiscal year ending 12/31/98.

Associated Press. Baltimore Sun 11/10/99.

Ambrose, Eileen. "Maryland Charity Gets $1.75 Billion Delivery; Casey Foundation Rides on UPS Stock." Baltimore Sun 11/11/99.

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