non profit ethics

The Clinton Foundation’s OTHER Ethics Problem—And An Ethics Trainwreck Update

/ Jack Marshall / 15 Comments

clinton_foundationEven if it weren’t being used for what looks like influence peddling…even if the foreign contributions to it didn’t create a textbook “appearance of impropriety,” which is prohibited for a Secretary of State…even if Hillary Clinton’s unilateral destruction of thousands of e-mails makes her surrogates’ (and imagine: one of those surrogates is an ABC new show host, and the network sees nothing wrong with that) argument that there’s no “smoking gun” evidence of wrongdoing a shining example of gall for the ages…there is another ethics problem with the Clinton Foundation, one that is beyond reasonable debate, and one that even the most shameless Clinton acolytes won’t be able to deflect by attacking the messenger.

It’s an unethical foundation, by well-established non-profit standards, and that has nothing to do with politics. Continue reading →

Comment of the Day: “Why The Sweet Briar College Fight Matters”

/ Jack Marshall / 14 Comments

Sweet Briar2

Ethics Alarms has been graced with a wave of new commenters, prompted by this post and its predecessor, “The Sweet Briar Betrayal.” The issue is the ethics of a college board surrendering to adversity without a fight, with millions in the bank, a beautiful campus, and an important mission, and doing so before fully informing and involving the larger college community, especially alumnae. I opined that the board had an ethical duty to both  mission and the school itself not to euthanize Sweet Briar College prematurely, at very least, not before a last ditch capital fundraising campaign.

Thousands of readers seemed to agree, and my posts on the looming Sweet Brier closing have become part of the effort to promote and coordinating a growing movement by concerned alumnae and others to reverse the board’s decision. A few, in contrast, accused me of being unfair to the board, arguing that it has taken an unpopular but responsible course, and was courageous to do so. SBCFan2000, a new  commenter who arrived in the crowd of Sweet Briar supporters, reinforces my assumptions in this revealing Comment of the Day: Continue reading →

Why The Sweet Briar College Fight Matters

/ Jack Marshall / 31 Comments

sweet-briar-collegeEthics Alarms has been besieged by interest in the threatened Sweet Briar College closing, with the recent post on the topic already the third most viewed essay in the history of the blog. I was surprised; I shouldn’t have been. From an ethics and societal perspective, what the controversy stands for is as important as any covered here. It is also central to the nation itself.

When a business fails, the casualties include ambitions, opportunities, dreams, financial resources, community assets, and jobs. That is serious and tragic. Non profit organizations, however, exist to turn ideas into reality, to strengthen them, bolster them, and prove that they deserve to survive and flourish. The death of Sweet Briar will also mean the loss of ambitions, opportunities, dreams, financial resources, community assets, and jobs. Far more important, however, is that it will mean the death of an idea, or at very least the serious wounding of one.

This is why non profit boards should not be, as they so frequently are, merely comfortable curriculum vitae-stuffers  and networking forums for prominent dilettantes. Non profit boards are stewards of ideas, and they must also be willing and able to be warriors in defense of those ideas, if an idea is imperiled. It is not a job for the faint of heart, and the consequences of failure, or, as in the case of Sweet Briar, fearful and premature capitulation, are catastrophic, not just for the organization, institution and its constituents, but the entire U.S. culture.

Sweet Briar exists to nurture a particularly vital idea, the mission of training young women… Continue reading →

The Sweet Briar Betrayal

/ Jack Marshall / 100 Comments

white-flag-2

After 114 years, Sweet Briar College, the venerable women-only college in rural Virginia, announced Tuesday that this will be its final year despite strong alumnae support and more than $90 million left in its endowment, even after several years of running a deficit.

Paul G. Rice, board chair, said that he realized some would ask, “Why don’t you keep going until the lights go out?” but that doing so would be wrong. “We have moral and legal obligations to our students and faculties and to our staff and to our alumnae. If you take up this decision too late, you won’t be able to meet those obligations,” he said. “People will carve up what’s left — it will not be orderly, nor fair.”

Well, at least the board is taking this lying down.

Rice’s excuse is nonsense, and the board’s action  is an abdication of a difficult duty, not an acceptance of one. Non profits have missions, and their boards are obligated to keep pursuing that mission until it becomes hopeless, not until it becomes tough. Yes, small colleges face challenges, and single-sex education has been out of favor since the Sixties. On the other hand, feminists are making the case that co-ed universities are little better than hunting grounds where women are the helpless prey of serial rapists. Surely Sweet Briar’s niche might become an asset with some vision and leadership. Continue reading →

All Aboard The Sterling Train Wreck: The Foolish, The Grandstanders, The Dishonest And The Irresponsible

/ Jack Marshall / 33 Comments

Hypocrites

The question is, which is which?

I’ll let you puzzle it out; I’ll be busy retching:

And now, the latest and deplorable passengers on this distasteful Ethics Train Wreck…

Sen. Harry Reid

Reid saluted NBA Commissioner Adam Silver for his “work to swiftly move to stamp out bigotry in its ranks,” as if that had any thing at all to do with what Silver was doing. Reid’s endorsement, however, places a high elected official’s stamp of approval on the proposition that those with unpopular ideas and biases should be punished and have their property taken away from them. Reid said that the league has set a new standard for how professional sports leagues should respond to racism. Of course, Sterling did nothing racist at all, not did he attempt to, or publicly announce such intent. The “new standard” that Reid is applauding is economic penalties for non-conforming beliefs. Finally, Reid attempted to make the absurd parallel to the Washington Redskins’ controversial name: “How long will the NFL continue to do nothing — zero — as one of its teams bears a name that inflicts so much pain on Native Americans?” Reid asked Continue reading →

Those Unethical, Exorbitant, Non-Profit Speaking Fees…But Don’t Blame Bill Clinton!

/ Jack Marshall / 7 Comments
No wonder Bill looks so happy...

No wonder Bill looks so happy…

In the middle of instituting two rounds of major layoffs in 2012,  the non profit Washington Hospital Center gave Bill Clinton a whopping $225,000 speaking fee  to appear at its annual Cardiovascular Research Technologies conference, where Clinton expounded on health care reform and his own battle against heart disease. The hospital didn’t disclose the $225,000 payment on its annual Internal Revenue Service forms, but it surfaced on the list of income sources the ex-President provided on his wife’s required ethics filing as Secretary of State. This waste of precious funds is unconscionable, and it is also all too common.

The story was originally broken by the Washington Times, with its angle being that Clinton was the villain. I will always enjoy a little Clinton-bashing, but that is unfair and ridiculous. No one forced the hospital to pay such an exorbitant fee. No one forces any organization to pay such speaking fees; if organizations wouldn’t pay them, Clinton and other blue chip speakers would charge what the market would bear. Both Clintons charge in this range to speak, and remember, the time they devote to spreading their pearls of wisdom is typically an hour or less. Non profits as well as deep pocket corporations like Goldman Sachs, American Express and Fidelity Investments also pay the fees or similar ones, and it is an abuse of discretion whether the payer is a non profit or not. * Continue reading →

The Susan G. Komen Foundation-Planned Parenthood Ethics Train Wreck

/ Jack Marshall / 53 Comments

Unlike the 26 U.S. Senators who are unethically abusing their positions by presuming to demand that an independent non profit organization expend its funds according to their interests, I am not going to tell the board of the Susan G. Komen Foundation how to pursue its mission…because as with the Senators, it is none of my business. Ethics is my business, and the full-blown ethics train wreck surrounding the Foundation’s decision to end its substantial financial support of Planned Parenthood has been created by dishonesty, misrepresentation and a lack of fairness from all directions.

Here are some unpopular ethics truths in this fiasco. Continue reading →

Memorial Ethics, Part Two: The Betrayal of 9-11 Donors

/ Jack Marshall / 16 Comments

Where's the money going? Sometimes the charity has no idea.

A decade later after the attack on the Twin Towers, an Associated Press investigation has revealed wide-spread incompetence, dishonesty and waste among the many 9-11 memorial charities set up in the wake of the tragedy.

“There are those that spent huge sums on themselves, those that cannot account for the money they received, those that have few results to show for their spending and those that have yet to file required income tax returns. Yet many of the charities continue to raise money in the name of Sept. 11,” reports the AP. Among the fiascos recounted in the report:

  •   An Arizona-based charity raised $713,000 for a 9/11 memorial quilt that was supposed to be big enough to cover 25 football fields. Instead, there are only several hundred decorated sheets packed in boxes at a storage unit. One-third of the money raised went to the charity’s founder and relatives, according to tax records and interviews. Charity founder Kevin Held spent more than $170,000 of the donated money on travel since 2004, seldom traveling without his two Alaskan malamute dogs. Continue reading →

The Sanford Bishop Saga: Pondering the Ethical Implications of Another Congressional Black Caucus Scholarship Cheat

/ Jack Marshall / 3 Comments

At this point, anyone who is surprised to learn that a member of the Congressional Black Caucus has been caught violating basic principles of ethics has not been paying attention. The Caucus has systematically corrupted itself by excusing blatant misconduct by its members for so long, reasoning—wrongly—that it is more important for black members of Congress to show loyalty and solidarity with their race than to be role models and honest public servants. Sadly, it would be newsworthy to learn that there is a CBC member who is passionate about holding public servants to a high level of trustworthiness. There apparently are no such members, however. If there were some, they would have resigned from an organization that reflexively defends black Representatives who abuse their power, position and trust (thus endorsing unethical conduct) and cries racism when anyone outside the Caucus, including the House Ethics Committee, criticizes the obvious.

Perhaps this is why the revelation that Rep. Stanford Bishop (D-GA.) distributed scholarship funds intended for needy students in his district to family members and political cronies received so little media attention. Continue reading →

Ethics Quote of the Month: Rep. Eddie Bernice Johnson

/ Jack Marshall / 1 Comment

“I did not have an ethical alarm go off.”

—Dallas Congresswoman Eddie Bernice Johnson, explaining (but not really) how she managed to give  23 of the Congressional Black Caucus Foundation scholarships Johnson has awarded since 2005 to two grandsons from Austin, two great-nephews from Plano, and two children of her top aide, despite explicit rules prohibiting nepotism, and requiring the scholarship to go to needy recipients in her own district, which none of these recipients were.

But thanks for the plug, Congresswoman! (It is “ethics alarm,” however, not “ethical alarm.”) Continue reading →