The Ben & Jerry’s Foundation may cease operations

The Ben & Jerry’s Foundation may be forced to cease its operations, as Magnum has cut off its funding and evicted the organization from its offices. The foundation is hoping for a favorable ruling in a lawsuit against the publicly traded ice cream giant.

Long-running conflict

In April of last year, The Magnum Ice Cream Company decided to stop funding the charity associated with the Ben & Jerry’s ice cream brand after an audit allegedly uncovered misconduct within the organization. The foundation was required to vacate its offices by July 15 of this year.

In practice, this means that the Ben & Jerry’s Foundation will have to cease operations by the end of this year due to a lack of funds, the foundation said in a press release. However, the foundation still has a lawsuit pending against The Magnum Ice Cream Company. A favorable ruling could still reverse Magnum’s decisions.

This is yet another chapter in the protracted conflict between the activist ice cream brand and its publicly traded owner. Co-founder Ben Cohen has spent the past few years pleading in vain for the “liberation” of his brand, arguing that Magnum has abandoned the company’s original social mission. “For Magnum Corporation to now be shutting down the Ben & Jerry’s Foundation is a profound betrayal of everything it was created to stand for. And I will do everything I can to oppose this abuse of power and help Magnum to see the light,” he says.

The Ben & Jerry’s Foundation was established in 1985 when Ben & Jerry’s went public. At that time, the company pledged to donate 7.5% of its pre-tax profits annually to philanthropic causes.