De Rance Foundation Explained

The De Rance Foundation was the world's largest Catholic charity until its dissolution in 1992. It was named for Armand Jean le Bouthillier de Rancé, the 17th-century abbot of the monastery at La Trappe, France.

Begun in 1946 by Harry G. John, a grandson of Miller Brewing Company founder Frederick Miller, De Rance was worth $188 million in March 1983. By October 1984, the charity's value plummeted to $83 million as a result of Harry John's questionable expenditures and investments of its assets.[1] John's wife, Erica, and Dr. Donald Gallagher, two of the three foundation directors, subsequently sued to have John removed as a De Rance director.[2] They claimed he was spending too much on a major television venture based at KIHS-TV in Ontario, California.[3] Harry John was found guilty of gross mismanagement and was permanently removed by a judge from the De Rance board in August 1986.[4]

After Harry John died in December 1992, the De Rance board voted to award $30 million of the charity's $100 million in assets to several of John's favorite causes and then dissolved in order to prevent assets from being transmitted to Southern Cross Inc., a conservative Catholic agency.[5] The remainder, $70 million, was used to create a new charitable organization, the Archdiocese of Milwaukee Supporting Fund. The fund was further renamed in 2009 as the Erica P. John Fund and reportedly contributes around $600,000 annually to the archdiocese.[6] The fund was involved in leading a class action suit, Erica P. John Fund, Inc. v. Halliburton Co., at the Supreme Court of the United States in June 2011.[7]

Notes and References

  1. News: Couple fight over millions held by charity. March 3, 1986. La Crosse Tribune. 11. Associated Press.
  2. News: Philanthropist's spending scrutinized. Sheboygan Press. Associated Press. 25. October 29, 1984.
  3. News: New TV station in Ontario will combine religion, entertainment. San Bernardino County Sun. April 21, 1984. B-7, B-11. Mark. Lundahl. March 14, 2020.
  4. News: Judge drops Derance from foundation. Chippewa Herald-Telegram. August 22, 1986. UPI. A3.
  5. News: Charity dissolves after giving away $100 million. The Chicago Tribune. Religious News Service. January 1, 1993. October 11, 2021.
  6. News: Archdiocese fund part of class-action case against Halliburton . Milwaukee Journal Sentinel. Annysa. Johnson. October 11, 2021.
  7. Web site: Erica P. John Fund, Inc. v. Halliburton Co., No. 3:02-CV-1152-M Casetext Search + Citator . 2024-02-23 . casetext.com.