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The Practice of Charity
Intent and Oversight
Brett Anderson and Thomas M. Kostigen
02/02/2004

The following article is an excerpt from The 100 Year Plan series from the December, January, February and March editions of Robb Report Worth. To subscribe or to order back issues, please call (800) 777-1851 or order online now.


Phil Knight, founder of Nike, reneged on a $30-million pledge to the University of Oregon. Ted Turner has had to renegotiate the terms of his commitment to the United Nations. And hundreds of foundations are holding the now worthless donations of dot.com stock. Good intentions can go bad, but there are steps donors can take to avoid disappointments.

Each of us has to do our own personal due diligence, as well as due diligence on the charity to which we are giving, before we invest, says Ann Fritschner of the Association of Fundraising Professionals. "Both the donor and the organization should look at their expectations up front."

A study by the New York University School of Law found a general reluctance on the part of charities and donors to commence legal proceedings against one another. Into what is supposed to be a benevolent relationship, few want to introduce malice. However what may not play out in a judicial court sometimes does in the court of public opinion.

"There has been a shift in thinking from the nonprofit’s perspective and the donor’s perspective," says Tim Seiler, director of the Fundraising School and Public Service at Indiana University’s Center on Philanthropy. "It’s fine to feel good, but donors want to feel they are also making a good investment."

As the nonprofit world comes more and more to resemble the for-profit world in terms of its business practices, so too may change the feel-good relationship between philanthropist and philanthropy. This means embracing business-like practices to accomplish goals.

To protect themselves, donors should proceed slowly. "Join a committee first," recommends Fritschner. "Once you get to know the organization and get comfortable with the people and the programs, then make a board level commitment; it’s like dating before you get married."

 Return to main article, "The Practice of Charity"

Illustration by Jonathan Barkat

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