Disclosure Law Should Include Corporate Philanthropy, Watchdog Group Tells Congress

7/16/2002

From: Sloan C. Wiesen of the National Committee for Responsive Philanthropy (NCRP), 202-387-9177; sloan@ncrp.org

WASHINGTON, July 16 -- The National Committee for Responsive Philanthropy (NCRP) yesterday sent a letter to members of the Senate Banking and House Financial Services committees, raising concerns that the corporate disclosure legislation currently before Congress may overlook disclosure of corporate charitable contributions.

"Promoting openness and accountability in corporate charitable giving is a critical piece of restoring America's overall faith in corporate responsibility at this troubled time for our nation," said NCRP President Rick Cohen. "I hope that Congress will ensure that any measure it enacts to shine sunlight on issues of corporate responsibility does not leave the important area of corporate charitable giving shrouded in darkness. Like so many sectors in society, our nation's foundations and charities are suffering the consequences of corporate recklessness as the stock markets have tumbled in the wake of scandal upon scandal. The relationships between corporate leaders and charitable giving should not go without scrutiny."

NCRP is advocating that corporations should be required to reveal their grantmaking to charitable or philanthropic nonprofits that are affiliated with their sitting boards of directors and with high-level corporate executive officers. NCRP suggests that reporting requirements should kick in for such corporate contributions in excess of $10,000. Having such a reasonable floor on reporting requirements would allow for the necessary accountability while avoiding overly burdensome record-keeping by corporations and charities.

The House version of the disclosure bill that passed in April, H.R. 3763, includes some provisions promoting disclosure of corporate charitable giving, but S. 2673, spearheaded by Sen. Paul Sarbanes (D-Md.) which passed the Senate yesterday, has no such provisions. NCRP hopes that a House-Senate conference committee will ensure that the final bill requires corporate charitable disclosure as called for in the House version of the measure.

"With the advent of 'strategic corporate philanthropy,' through which corporations engage in charitable activity to address and promote corporate bottom line interests, even to the point of looking for quid pro quo arrangements with grant recipients, disclosure is certainly warranted," stated Cohen. "To truly and fully promote corporate disclosure and corporate accountability, the use or misuse of corporate charitable giving must not be overlooked. If we cannot take action now to promote disclosure of corporate charitable giving -- at this time when Americans are so justifiably focused on the overall challenge of corporate responsibility -- then when can we make progress on this issue?"

Founded in 1976, the National Committee for Responsive Philanthropy is dedicated to helping the philanthropic community advance the traditional values of social and economic justice for all Americans. Committed to helping funders more effectively serve the most disadvantaged Americans, NCRP is a national watchdog, research and advocacy organization that promotes public accountability and accessibility among foundations, corporate grantmakers, individual donors and workplace giving programs. For more information on NCRP or to join, visit http://www.ncrp.org or call 202-387-9177.