About Us
History
The Beaumont Foundation of America was created using funds generated by the settlement of a class action lawsuit. In Shaw v. Toshiba, plaintiffs filed a class action complaint against Toshiba regarding sales of allegedly defective computer equipment. The Federal District Court in Beaumont, Texas, where the suit was pending, approved the settlement in January of 2000 and held that purchasers of computers were entitled to compensation. The settlement included a number of benefits. One of the benefits was a guaranteed settlement fund in the amount of $597.5 million for owners of Toshiba laptop computers purchased after March 5, 1998. Three Beaumont, Texas attorneys, Wayne A. Reaud, Gilbert I. Low and Hubert Oxford, III, devised a plan to utilize large class action litigation for the public good. Plaintiffs’ lead attorney, Wayne A. Reaud, insisted that the unclaimed portion of the guaranteed settlement fund be used to form a charitable foundation. As a result, the Beaumont Foundation of America (BFA) was created with over $350 million in assets in October 2001.
The settlement required the Foundation to use the unclaimed funds to purchase Toshiba branded computer equipment for distribution throughout the United States to “schools, churches, non-profit organizations, libraries, hospitals, and the poor.” The Foundation was to distribute the computers over a five-year period. By providing access to digital information, the Foundation hoped to give people a more equal opportunity to advance socially, economically and intellectually with its mission of providing access to information for everyone, everywhere, anytime.
Beginning in 2002, the Foundation engaged in a series of pilot projects in six states: Illinois, New Mexico, New York, North Dakota, South Dakota, and Texas. Projects were selected based on their geographic and demographic diversity, as well as their computer needs. Through these pilot programs, 3200 computers and associated equipment valued at $6.3 million were distributed to 128 schools and community-based programs.
In 2003, the Foundation awarded technology grants in 15 additional states and the District of Columbia, valued at more than $27 million. Recipients included 153 public, private, parochial, and charter schools and 620 community-based groups and nonprofit organizations. Additionally, the Foundation formed national alliances with two partners. As part of the community awards, technology equipment was distributed to nearly 500 Boys and Girls Clubs of America’s Operation Connect and Salvation Army’s eQuip for Success sites. Through these collaborations, the Foundation was able to enhance the impact of its philanthropy and affirm the power of community involvement. Rounding out the grants for 2003, the Foundation awarded 1,000 state-of-the art computers to individuals of all ages, races, and abilities.
In 2004, the Foundation funded grants totaling about $20 million in the remaining 29 states, completing the mission of reaching all 50 states and the District of Columbia. The Foundation continued making grants to schools, the Boys & Girls Clubs of America and The Salvation Army.
The Foundation began a year of change in 2005 by distributing 594 gifts. The Foundation awarded grants to schools and continued its relationship with the Boys & Girls Clubs of America and The Salvation Army. The Foundation also began the Children and Spouses of Fallen Heroes program. Through this ongoing program, the Foundation grants state-of-the-art laptop computers to dependent children and spouses of military personnel who have given their lives in the Iraq and Afghanistan war theatre since September 11, 2001.
As 2005 ended, the Foundation neared the end of the 5-year period for its technology grants. During this initial phase of existence, the Beaumont Foundation of America was a national leader in helping bridge the Digital Divide. The Foundation provided grants of technology equipment valued at more than $63 million. These grants included over 28,000 wireless, Internet-enabled laptops to 524 education sites, 309 community organizations, 553 Boys and Girls Clubs, 216 Salvation Army sites and 1400 individuals in all 50 states and the District of Columbia.
A very important event for the Foundation occurred in January 2006. With the Federal Court’s oversight and approval, a three party agreement was reached between Toshiba, the Texas Attorney General and BFA to extend the Foundation’s lifespan indefinitely and to broaden the organization’s mission to include new types of grants. Most notably, the Foundation is no longer limited to granting only technology packages or focusing exclusively on groups working to bridge the ever-narrowing Digital Divide.
In February 2006, the Beaumont Foundation of America amended its Articles of Incorporation and broadened its operations to include all charitable purposes rather than exclusively technology programs. Under the revised Articles of Incorporation, the Foundation can deliver direct monetary gifts to a broader array of organizations dedicated to helping the poor and disenfranchised. The Beaumont Foundation of America awarded grants totaling approximately $11 million in 2006. The expanded purpose of the Foundation is clearly demonstrated by the diverse nature of these grants. The largest grants included $4.5 million for scholarships to promote education in underserved communities. Additionally, $1.1 million was dispersed to Food Bank Programs, $1 million was granted to promote cancer treatment and research, and $1 million was granted to assist with Foster Care Programs.