What to do With “Dirty Money”?
Kent State University fundraisers revealed today that a potential $1-million dollar gift to the school is being withdrawn after the school newspaper questioned the donor’s ethics. Potential donor and Kent State graduate Jason Cope was previously fined by the SEC in connection with stock fraud. After a student-journalist revealed the connection, Cope pulled the gift because of “unforeseen changes.”
The issue of “dirty money” is one that comes up a lot in nonprofit. Think, for example, about the fact that Kentucky Fried Chicken has historically given money to the Juvenile Diabetes Research Foundation. Or accepting money from any one or any group who doesn’t share your organization’s stated values. It’s a difficult question to answer, because for so many nonprofits, the money is necessary to do good work, no matter where it came from. This 2006 article from Guidestar shows just how big of a concern dirty money is to nonprofits, with the responses being very torn. As a donor, knowing that an organization you support accepts dirty money can also taint your feelings about the nonprofit, making it an association that no longer brings you pride.
Overall, the best time for a nonprofit to deal with the issue of dirty money is BEFORE you are ever offered any. Have a policy in place, and revisit it regularly. This article on the Nonprofit Law Blog is a great place to start working through your thoughts.
Philanthropic giving is personal, emotional, and relationship-driven. We all want to feel good about our relationships with nonprofits, so let’s all use funding we can feel good about.
