Corporate Aid for Poor

Claims by the Southern California Coalition for Responsive Philanthropy that the BankAmerica Foundation contributes too little to the poor are arbitrary and misleading (“Charities Failing the Poor, Group Says” April 14). The coalition complains that “only” 28% of the BankAmerica Foundation’s nationwide giving in 1992 went to poverty-related programs. However, as Times reporter Susan Moffat points out, this figure does not include $3.5 million in corporate gifts to the United Way. Indeed, we contribute more money to the United Way than any other corporation in California.

Our philanthropy program represents a balanced effort to meet the needs of communities throughout California and nine other Western states. Last year, the BankAmerica Corp. and its charitable foundation contributed $26 million to support priorities such as community economic development, affordable housing and education. Roughly $5 million went to Los Angeles, and a significant share was earmarked for low-income recipients.

Moreover, philanthropy is only one measure of corporate responsibility. Another is the way a company conducts its day-to-day business. And Bank of America vigorously seeks to empower low-income individuals through economic opportunity initiates. Examples include the following:

* Helping to rebuild L.A. The bank’s $25-million Small Business Investment Program is enabling more than 500 entrepreneurs to recover from the damage they suffered during civil disturbances two years ago.

* Providing capital to minority-owned employers. We recently joined forces with the Commerce Department to make loans and technical assistance more easily available to minority-owned businesses throughout Southern California.

* Financing affordable housing. Bank of America’s Community Development Bank is now the No. 1 source of affordable housing construction in all of California.

* Encouraging homeownership. We are the largest commercial bank provider of home loans in low-income areas of Los Angeles County.

The needs of the poor are tremendous. Their plight is society’s problem, and it must be addressed through the cooperative efforts of government, business and community-based organizations. So it is both ironic and unfortunate that a group seeking to alleviate poverty should take aim at Los Angeles County’s most committed organizations while sparing those companies which contribute little or nothing at all.

DONALD A. MULLANE

Chairman

BankAmerica Foundation

San Francisco

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* Regarding your article (April 14) on poverty programs and local foundations, on behalf of our board of trustees it should be noted that with respect to the Dan Murphy Foundation, the group conducting the study arbitrarily excluded grants “in the religious category” when in fact these grants were to Roman Catholic religious institutions and communities of religious men and women who have dedicated their lives to serving the poor through education, caring for the sick, the elderly, the homeless and the abandoned.

If these grants are included, the result is that over 80% of the foundation’s giving goes to people and programs assisting the poor.

RICHARD A. GRANT JR.

Secretary-Treasurer

Dan Murphy Foundation

Los Angeles