Opinion: Nonprofits shoudn’t be so quick to reject funds from tainted donors
By David Allyn April 26 at 4:09 PM David Allyn is vice president at Graham-Pelton, a fundraising and management consulting firm for nonprofit organizations, and a visiting scholar at the New School for Social Research.
These days, brands are expected to be pure, and any hint of corruption or moral compromise can easily trigger protests and harsh online backlash. The threat is as real for nonprofits as it is for celebrities and cosmetics companies. Not surprisingly, USC leaders quickly reversed course and said they would not take Weinstein’s pledged funds. But was it better that Weinstein got to keep his $5 million? Or would that money have done more for the world by nurturing the careers of young female filmmakers?
Without a doubt, institutions should return money if it was not the donor’s to give away — taking stolen property is unacceptable. Accordingly, in 2001, the University of Oregon returned an $850,000 donation from financier Jeff Grayson after a court ruled that the money wasn’t even his. But a more moderate approach is warranted. First, remember that any money given to a nonprofit ultimately is good for society as a whole. That’s why nonprofit organizations are deemed by the Internal Revenue Service to be “public benefit corporations.”
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