Subject: WFP and YUM
From: "Blum, Jonathan" <[email-masked]>
To: "Rick Leach" <[email-masked]>
Cc: "Hunter Biden" <[email-masked]>
Date: Tue, 30 Jun 2015 18:27:11 +0000

Rick,
I've reflected on our conversation yesterday, and would like to offer some observations about the State Department, our funding and my Board seat.  I appreciated your candor and direct commentary, which is always more helpful than obfuscation.  I have detected a strain in our relations of late, particularly on the last Board call, so I'm glad you've surfaced your concerns.

First, thanks for the update on the State Department event.  At this late juncture, we'll take a pass on participating.  I have offered over the years for David or me to visit with other corporations, speak by phone or do a video to explain our strong support for the WFP, and how we've successfully developed and implemented a global campaign with employees, franchisees, suppliers and customers, raising over $100 million for the WFP and millions more for other hunger relief organizations.  We are passionate about the cause.  If we can be of assistance to you in this regard at any time during the year, please let me know.  Given the late nature of our invitation to the event at the State Department, it isn't possible for us to participate this time.

As you know, our Agreement is with the WFP, and our funds go directly toward hunger relief programs in the field.  We have raised awareness and funds around the globe toward this purpose, primarily focused on school feeding, but also on disaster relief periodically.  Our administrative fee is to cover the cost associated with administering those programs.  We recognize WFP USA exists to support the WFP, but our fundraising is designed specifically to fund WFP programs, not WFP USA work in DC or with other corporate donors.  That said, I know you're aware we have provided WFP USA support from time to time by sponsoring various events in support of your agenda.   Hopefully you'll agree that our corporate support of WFP USA over the years has been generous.  Our Corporate Auditor and Controller have asked WFP and WFP USA for an accounting of how funds we pay ($2mm annually) toward our administrative expenses are used by each respective organization.  This is for accounting purposes.  The template used by WFP USA last year should suffice for 2015, but if you'd like to adjust that, please let us know.   I'm afraid that your comment that you will not comply with this request simply isn't appropriate or helpful.  The YUM Foundation has made payments of $2mm annually and we need the funds to be accounted for by both organizations, so I hope you'll reconsider the simple request or we may have to stop paying the administrative fee.  In addition to raising funds, we generate massive amounts of awareness around the globe each year.  As I mentioned on the Board call, we are doing a 6-part documentary called Chefs Without Borders with Lions Gate and Wayfarer, and that will create much social media attention in the US, which should help WFP USA.  Also, our annual PSAs, PR outreach and in-store posters with Christina Aguilera as our spokesperson raises awareness, and will be continued.  I appreciate your kind comments about the good work YUM and I have done on both our fundraising, and awareness-building.  It is a source of pride for the organization, and for me personally.  As you know, the fundraising will primarily be done by KFC around the globe in 2016 and beyond, but YUM employees also will continue to be engaged in WFP as our primary focus of philanthropy.  I envision continued financial and emotional support from our organization over the long-term.

Lastly, I now understand based on your comments yesterday that I'm the wrong person to serve on your Board.  You believe I don't support WFP USA, but rather WFP.  That isn't true - I do support both organizations and firmly belief each has an important role and purpose.  I was glad to learn yesterday that WFP and WFP USA have aligned on respective roles, and assume you have signed the MOU at long last.  I wasn't aware, but that's great news - congratulations.  I hope you know I have the utmost respect and admiration for Hunter, the Board, your staff and you.  I believe you are doing critically important work to advocate for WFP and hunger relief with a number of stakeholder constituencies in the United States.  And you are getting great results.   Given your comments and that this is a voluntary position on a non-profit board, I don't see myself continuing it.   I therefore intend to step off the Board, and will leave it to Hunter and you to decide if that is best to do now, or at the end of the year as I initially planned.  You should have a Board that you believe fully supports you and your mission, and directors who may be more active than I given other constraints on my time.  Please let me know when Hunter and you would like to make my resignation effective.  I, of course, wish WFP USA and you much continued success, and have thoroughly enjoyed our relationship and the important work we are all doing to address hunger.

Regards, Jonathan
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