Philanthropy Foundation

There has been a lot of big givings from philanthropy foundations in recent years. We all should be thankful for that. But I frequent question myself what/how much have these funds achieve, and whether if all monies were appropriately used for its purpose. Due to its lack of detail to the public eye, this could be a mean to other ends, publicity, moral image, tax purpose, money laundering etc. In Australia, these are known as prescribed private funds (PPF). The value of these funds at 2008 were $1.2 billion. There has already been evidence of a number of breaches, including offshore loans to associates of the founder or major donors. Since schoolies, I have heard many big names of Lee/Kwok Foundations and have now worked for two organisations, Macquarie and State Street that pride themselves for philanthropy work. But I am still not convinced...

A Foundation is not only a private philanthropy: it is affected with a public interest and is, in a real sense, a public truct. Exempt from taxation, it enjoys a favoured legistlative status. The grants which it makes are matters of public concern, and public confidence in the foundation as a social instrument must be based on an adequate understanding of its purposes and work. A foundation therefore cannot escape the responsibility, moral if not legal, for giving the public complete information of its activities and finance.

(Raymond Fosdick, President, Rockefeller Foundation, 1952)