Shareholder Proposals – Item 9 on Proxy Card
National Legal and Policy Center, 107 Park Washington
Court, Falls Church, Virginia 22046, owner of 77 shares
of the Company’s common stock, proposes the
Charitable Contributions Report
RESOLVED: The shareholders request that Verizon provide
a report updated semi-annually, omitting proprietary
information and at reasonable cost, disclosing the
Policies and procedures for charitable contributions
(both direct and indirect) made with corporate assets;
Monetary and non-monetary contributions made to
non-profit organizations operating under Section 501(c)(3)
and 501(c)(4) of the Internal Revenue Code, and any
other public or private charitable organizations;
Rationale for each of the charitable contributions.
To the extent reasonable and permissible, the report
may include the type of information requested above
for charities and foundations controlled or managed
by the Company.
This report may be posted on the company’s website
to reduce costs to shareholders.
SUPPORTING STATEMENT: Verizon’s assets belong
to its shareholders. The expenditure or distribution
of corporate assets, including charitable contributions,
should be consistent with shareholder interests. Accordingly,
the Company’s rationale for charitable contributions
should be disclosed to shareholders.
Company executives exercise wide discretion over the
use of corporate assets for charitable purposes. Absent
a system of transparency and accountability for charitable
contributions, Company executives may use Company
assets for objectives that are not shared by and may
be inimical to the interests of the Company and its
Current disclosure is insufficient to allow the Company’s
Board and its shareholders to fully evaluate the charitable
use of corporate assets, especially for controversial
Details of contributions only sometimes become known
when publicized by recipients. The Company is identified
as a “Platinum Sponsor” in the program
of the 2006 Rainbow/PUSH Wall Street Project, a designation
costing $100,000 or more.
BOARD OF DIRECTORS’ POSITION
Verizon currently provides extensive information about
these activities, most of which are conducted through
the Verizon Foundation, including, among other things,
its giving philosophy, the nature of the contributions
and the recipients of the grants. The Board believes
that Verizon’s philanthropic activities help
to make a difference in thousands of communities where
Verizon’s customers and employees live and work.
The Verizon Foundation posts information on its website
at http://foundation.verizon.com that
describes its philanthropic philosophy, which focuses
on education and literacy, safety and health, and
volunteerism. Verizon’s Corporate Responsibility
Report, which can be accessed at http://multimedia.verizon.com/responsibility/,
provides more information on these activities and
includes a section entitled “Partnering with
Communities” that discusses the Company’s
rationale for focusing its charitable giving in certain
areas. Verizon provides detailed information about
the Foundation’s grant guidelines and the core
programs that it supports at http://foundation.verizon.com.
The Foundation lists all contributions for each fiscal
year in its federal tax returns, which are posted
at http://foundation.verizon.com. These
forms list all of the recipients of contributions,
including matching contributions, made by the Verizon
Foundation in alphabetical order.
In view of the significant information that is publicly
available about the Company’s philanthropic
activities, the Board does not consider implementation
of the proposal to be an efficient use of the Company’s
Accordingly, the Board of Directors recommends a vote
AGAINST this proposal.
* This is an interactive electronic version of Verizon’s 2006
Annual Report to Shareholders, and it is intended to be complete and
accurate. The contents of this version are qualified in their entirety
by reference to the printed version. A reproduction of the printed version
is available in PDF format on this website.