The Economist reports:
THE world of philanthropy faces a three-pronged attack. First, philanthropic institutions have been hit by the impact of recession on charitable giving. Next, last month, Barack Obama’s budget proposed to limit tax deductions on donations by individuals earning over $200,000. But America’s proud charitable foundations are also worried about another threat: political pressure to increase the “diversity” of their employees, with hints of racial and sexual quotas on employment and even on recipients.
In a paper released on March 12th the Philanthropy Roundtable, a group based in Washington, DC, described this diversity initiative, first instigated in 2007 by the Berkeley-based Greenlining Institute, as a shakedown for the benefit of the already privileged professional elite in the minority workforce (that is, blacks and Latinos). Heather MacDonald of the Manhattan Institute thinks this “diversity police” will discourage personal giving by diverting charities from their true objectives and will transform foundations into job-creation schemes for minorities. . .
Partisan interest could allow lawmakers to “insert themselves into foundation governance and grant-making”, worries Sue Santa of the Philanthropy Roundtable. Philanthropists fear America may go down the British route, where charities must show clear public benefit to qualify for tax deductions; and that will open the door to politics.
That’s the major problem with private charities; they’re private. What good is it to help people if you’re not answerable to the government?
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