Black & Decker recognizes that the vitality of the communities in which our employees live and work is an important factor in our success.  Our headquarters and business sites are involved in their communities by:

• promoting volunteerism;
• sponsoring a payroll deduction program for combined-giving campaigns;
• matching employees’ tax-deductible contributions to qualified civic, cultural, educational, health/human services, and youth organizations; and
• making monetary and/or product contributions to qualified non-profit organizations through the Community Giving Program (CGP).  The CGP is focused primarily on two areas: Community Revitalization and Education.

Policy and Practice

a. Community Giving Program

The CGP is administered by the Corporate Secretary’s Department at our corporate headquarters and the Human Resources Department at each of our business sites. In addition to coordinating Black & Decker’s community involvement in the Greater Baltimore Metropolitan Area, the Corporate Secretary’s Department is responsible for considering requests from national or international organizations. Requests from local organizations are generally processed by the headquarters or business site nearest to the organization.

Black & Decker does not have an independent charitable foundation. The CGP budget is determined annually by the level of our corporate profits and other considerations. Because we strive to support as many worthwhile programs as possible, grant commitments are limited to one year. Where renewal is considered, evaluation factors include program effectiveness and the impact of previous contributions.  We do not publish reports of our contributions.

Focus Areas of Support:

The CGP is designed to support programs that reflect the nature of Black & Decker’s business and enhance the quality of life in communities where our headquarters and major business sites are located.

The CGP is focused primarily on certain aspects of (1) Community Revitalization and (2) Education:

• Community Revitalization - Our emphasis is on affordable housing and housing rehabilitation programs, particularly programs that support home ownership, involve the active participation of neighborhood residents and Black & Decker volunteers, provide the opportunity for residents to learn home improvement skills, and put our products to use.
• Education - Our emphasis is on: (a) engineering (electrical, electronic, industrial, manufacturing, materials, or mechanical) programs at colleges and universities important to our recruiting and training efforts; (b) school-based math, science, and technology programs that prepare students for a college education or for positions that provide technical support for engineers; (c) school-based vocational and skills training programs for construction and related trades and for home improvement.

Other Areas of Support:

Although community revitalization and education are our primary focus areas, we also consider grants to established civic, cultural, health/human services, and youth organizations in communities where our headquarters and major business sites are located:

• Civic - Organizations engaged in housing-related programs, municipal and statewide improvements, environmental issues, etc.;
• Cultural - Organizations such as science centers, museums, libraries, music organizations, etc., especially if programs to supplement school-based education in the areas of math, science, and technology are offered; and
• Health/Human Services and Youth - Organizations with programs that advance community health; promote job skills, education, and values; strengthen the family unit; and/or promote social and economic well-being in the community.

Special consideration is given to programs that support a diverse cross-section of the population.

We give preference to requests for projects or programs that are within our primary focus areas and:

• are supported by our employees;
• meet community needs in innovative ways;
• have specific objectives and mechanisms for measuring results;
• promote cooperation with and avoid duplication of programs and services provided by other organizations;
• provide evidence of and incentive for financial and volunteer support from others in the community; and
• demonstrate the applicant’s commitment to fiscal control and accountability.

For further details, including guidelines on types of organizations and the process of requesting support, see the Community Giving Guide (.pdf format).

b. Matching Gifts Program

Black & Decker encourages employees to support qualified non-profit organizations by offering a Matching Gifts Program (MGP). The MGP enables participating employees to double the effectiveness of their personal giving.

The MGP generally matches up to $2,000 in each calendar year on a dollar-for-dollar basis made by either (i) a participant, or (ii) a U.S. entity such as a donor-advised fund or a private foundation established by the participant for the sole purpose of making charitable gifts with the participant’s money or other property (a Charitable Fund). The $2,000 annual limit is a combined total of eligible gifts made by the participant (1) through payroll deductions to the United Way, (2) in the form of cash, checks, credit card charges, or securities, and (3) through a Charitable Fund.

Payroll deductions, which are available for contributions to United Way agencies in Black & Decker communities, are automatically matched.  The minimum payroll deduction is $1 per pay period for non-exempt employees and $2.50 per pay period for exempt employees. The minimum direct gift matched is $15 per organization.  This relatively low threshold makes it possible for many employees to take advantage of the program.

Gifts to public charities and private operating foundations qualifying under Section 501(c)(3) of the U. S. Internal Revenue Code and public institutions qualifying under Section 170(c)(1) of the Code are eligible for matching gifts. The employee’s donation must also meet the charitable contribution requirements in Section 170(c)(1) or (2) of the Code, which generally includes gifts to certain government entities, trusts, combined-giving organizations, funds, or foundations whose programs operate primarily within the U.S. and Puerto Rico, and U.S.-based charitable corporations whose programs operate internationally. We believe that our eligibility requirements are relatively broad for this type of program.  Examples of eligible organizations include:

• Civic – organizations engaged in community revitalization, economic development, environmental issues, fire prevention, housing, legal aid services, municipal and statewide improvements, public policy research, etc.;
• Culture – aquariums, botanical gardens, libraries, museums, performing and visual arts organizations, public radio and television, science centers, symphony orchestras, zoological societies, etc.;
• Education – private, public or parochial institutions, such as graduate or professional schools, colleges, technical schools, and elementary, secondary, and preparatory schools, provided the institution is accredited by a recognized accrediting agency;
• Health/Human Services – disaster relief, federated agencies, e.g., United Way, non-profit hospitals, family aid services, disease research and prevention agencies, disability services, etc.; and
• Youth – mentoring, skills training, literacy programs, etc.

In 2005, Black & Decker matched gifts above the usual limits in response to the hurricanes affecting the Gulf region.

Other guidelines and administrative procedures are provided to employees through intranet sites and at our locations.

c. Alonzo G. Decker, Jr. Annual Community Service Awards Program

Guided by his own belief that all people owe something to the society in which they live, Alonzo G. Decker, Jr. gave generously to a variety of organizations by donating his time, money, and business expertise. Specifically, Mr. Decker was deeply involved in three Baltimore-area universities, the National Council of Boy Scouts of America, the Baltimore County March of Dimes, the American Red Cross, and the Baltimore County Planning Board. Mr. Decker donated millions of dollars during his lifetime and bequeathed his own beloved farm to charitable causes. For his extraordinary philanthropic achievement, Mr. Decker was recognized with five honorary degrees and a host of community service awards.

Giving the Alonzo G. Decker, Jr. Annual Community Service Awards in the spirit of Mr. Decker’s service, provides Black & Decker an annual opportunity to thank employees who have contributed to worthy causes through their exceptional levels of commitment, creativity, and achievement and who have truly made an impact on improving the quality of life within their communities. Since 1991, employees’ selfless acts of service have been recognized by the Company.

All current full-time employees are eligible to receive a Decker Community Service Award, as may recent retirees cited for service contributed over the past year while they were active employees. Each nomination form is reviewed by a Decker Community Service Awards Selection Committee that is formed cross-divisionally within the Company. Selection criteria include personal leadership, innovation, and accomplishment, length of service, and impact on the community. Awards may also be granted to employees who act out of heroism or in response to an emergency.

Each Service Award recipient is entitled to select a qualifying non-profit organization to receive a grant from Black & Decker. Grants are awarded to non-profit organizations that perform local community services, which could be classified under such broad headings as health and human services, education, civic, and cultural affairs. Grants cannot be made to political parties or candidates or for the propagation of a religion, faith, or creed. The cash grants and public awareness provided by the program go a long way toward helping people in need within the communities where the Company has a presence.

d. Community Giving Example – Habitat for Humanity

Black & Decker supports chapters of Habitat for Humanity in many of the communities where its employees live and work.  Habitat is an excellent example of the community revitalization focus area of our giving program, as well as the focus on employee involvement.  The communities where Black & Decker has been particularly active include Denison, Texas, where a Kwikset plant is located, and in Connecticut near the headquarters of the Emhart fastening business.  In the Baltimore area, where the Corporation and the Power Tools & Accessories business are headquartered, Black & Decker has been a major partner with Sandtown Habitat for Humanity since 1992.
Sandtown Habitat for Humanity is a nonprofit Christian housing organization whose purpose is to rebuild vacant housing in the Sandtown-Winchester neighborhood of West Baltimore, increase homeownership and improve the health of the community.  It was initiated in 1989 by members of New Song Community Church in response to the deteriorating housing stock in this vibrant, historic community.  As of June 2006, the organization has completed nearly 230 homes and plans to have completed 350 homes within the next several years.
By using mostly volunteer labor and private funding, Sandtown Habitat rehabilitates and builds houses at an average cost of around $50,000, about one-third of the cost for traditional development.  Families are selected for Habitat houses based on level of need, willingness to become partners in the program, and ability to repay a loan. They invest at least 330 hours of “sweat equity” in their own home, or other Habitat homes, and buy their home at cost, using a 20-year, no-interest mortgage.
Hundreds of Black & Decker employees have worked to rehabilitate and build homes, volunteering thousands of hours.  The Corporation has also made significant contributions of cash, tools and supplies.  In 1997, Black & Decker was the first organization to provide all of the volunteer labor for a single house in Sandtown.  In 2006, Black & Decker sponsored Sandtown Habitat for Humanity’s Annual Building Week.
Following the completion of the “Black & Decker House” in 1997, Allan Tibbels, Co-Executive Director of Sandtown Habitat for Humanity, commented, “We have worked with many corporate sponsors before, and this is the only company that sponsored a house and staffed it from start to finish.  I applaud Black & Decker and their committed employees.  They have single-handedly raised the bar.”

Black & Decker employees and tools at work with Sandtown Habitat for Humanity

e. Community Giving Example - University of Maryland (UMD) School of Engineering

In addition to financially supporting the UMD School of Engineering, a number of Black & Decker engineers have volunteered their time to assist engineering students in learning the practical aspects of their future careers. As part of Black & Decker’s focus on education, company engineers have assisted in the design of an upper level required course, Product Engineering and Manufacturing, which follows the product development process. In addition to the professors who teach the course, a number of Black & Decker engineers serve as guest lecturers each semester. Black & Decker products are donated to the Engineering School for use in the course and Black & Decker engineers observe and critique presentations made by the students at the end of the semester.

Additionally, Black & Decker engineers participate in mentoring of women engineering students. There is also a program for freshman engineering students called the Keystone Program, which utilizes guest lecturers from Black & Decker, discussing product development to allow these young students to obtain a practical view of engineering. In the area of strategic direction, a high-level engineering executive from the company serves on the Board of Visitors for the College of Engineering and the Visiting Committee for the Mechanical Engineering Department.