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Philanthropy Philanthropy is a form of altruism that consists of "private initiatives, for the public good, focusing on quality of life". Philanthropy contrasts with business initiatives, which are private initiatives for private good, focusing on material ...
poses a number of
ethical issues Ethics or moral philosophy is a branch of philosophy that "involves systematizing, defending, and recommending concepts of right and wrong behavior".''Internet Encyclopedia of Philosophy'' The field of ethics, along with aesthetics, concerns ma ...
: * How donors should choose beneficiaries and ensure that their donations are effective. * Acceptable marketing practices for grant seekers. * A recipient may violate the donor's intent in spirit or in law. * A donor's activities may be considered incompatible with those of the institution's mission. * Specifically, a recipient may be perceived as complicit with or oblivious to a donor's unethical practices, thus tainting its own good name, especially when an institution grants
naming rights Naming rights are a financial transaction and form of advertising or memorialization whereby a corporation, person, or other entity purchases the right to name a facility, object, location, program, or event, typically for a defined period of ...
. * A donor may receive a ''
quid pro quo Quid pro quo ('what for what' in Latin) is a Latin phrase used in English to mean an exchange of goods or services, in which one transfer is contingent upon the other; "a favor for a favor". Phrases with similar meanings include: "give and take ...
'' for all or part of a donation.


Giving effectively

Choosing suitable recipients of philanthropy, and ensuring that the aid is effective, is a difficult ethical problem, first addressed by
Aristotle Aristotle (; grc-gre, Ἀριστοτέλης ''Aristotélēs'', ; 384–322 BC) was a Greek philosopher and polymath during the Classical period in Ancient Greece. Taught by Plato, he was the founder of the Peripatetic school of ...
.Patricia Illingworth, Thomas Pogge, eds., ''Giving Well: The Ethics of Philanthropy'',


Marketing practices

Ethical questions include: * how to compensate fund-raising agents; * how to compete with other causes; * how much deception, if any, is acceptable; * whether some images ("pornography of poverty") should not be used, even if they are effective.


Donor intent

Many gifts are accompanied by a statement of intent, which may be a formal, legal agreement, or a less formal understanding. To what extent the recipient must respect that intent is an ethical and legal issue, especially as circumstances and
social norms Social norms are shared standards of acceptance, acceptable behavior by groups. Social norms can both be informal understandings that govern the behavior of members of a society, as well as be codified into wikt:rule, rules and laws. Social normat ...
change.


Incompatible missions

When a person's activities are incompatible with an institution's mission, associating with them or accepting donations from them may be considered inappropriate or dishonest marketing (''cf.''
greenwashing Greenwashing (a compound word modeled on " whitewash"), also called "green sheen", is a form of advertising or marketing spin in which green PR and green marketing are deceptively used to persuade the public that an organization's products, aim ...
), a form of
conflict of interest A conflict of interest (COI) is a situation in which a person or organization is involved in multiple interests, financial or otherwise, and serving one interest could involve working against another. Typically, this relates to situations i ...
. For example, children's museums generally refuse sponsorship from manufacturers of
junk food "Junk food" is a term used to describe food that is high in calories from sugar and/or fat, and possibly also sodium, but with little dietary fiber, protein, vitamins, minerals, or other important forms of nutritional value. It is also known as HF ...
. Protests against
David Koch David Hamilton Koch ( ; May 3, 1940 – August 23, 2019) was an American businessman, political activist, philanthropist, and chemical engineer. In 1970, he joined the family business: Koch Industries, the second largest privately held c ...
's support for
climate change denial Climate change denial, or global warming denial, is denial, dismissal, or doubt that contradicts the scientific consensus on climate change, including the extent to which it is caused by humans, its effects on nature and human society, or the ...
led to his resignation from the board of the
American Museum of Natural History The American Museum of Natural History (abbreviated as AMNH) is a natural history museum on the Upper West Side of Manhattan in New York City. In Theodore Roosevelt Park, across the street from Central Park, the museum complex comprises 26 int ...
.


Tainted donors

Funds derived from, and donors engaged in,
unethical Ethics or moral philosophy is a branch of philosophy that "involves systematizing, defending, and recommending concepts of right and wrong behavior".''Internet Encyclopedia of Philosophy'' The field of ethics, along with aesthetics, concerns ma ...
,
immoral Immorality is the violation of moral laws, norms or standards. It refers to an agent doing or thinking something they know or believe to be wrong. Immorality is normally applied to people or actions, or in a broader sense, it can be applied to ...
, or
criminal In ordinary language, a crime is an unlawful act punishable by a state or other authority. The term ''crime'' does not, in modern criminal law, have any simple and universally accepted definition,Farmer, Lindsay: "Crime, definitions of", in Can ...
activities pose a problem for the recipient, as accepting a donation or continuing to benefit from it may be interpreted as benefiting from or ignoring the disreputable activity. Such donations have been characterized as "toxic philanthropy".Elizabeth Merritt, "Toxic Philanthropy", Center for the Future of Museums
December 11, 2019
American Alliance of Museums
This is an issue for the donor's behavior both before and after the donation. Institutions may react by returning the money, removing the acknowledgement, or by keeping the money. The
Sackler family The Sackler family is an American family who founded and owned the pharmaceutical companies Purdue Pharma and Mundipharma. Purdue Pharma, and some members of the family, have faced lawsuits regarding overprescription of addictive pharmaceutical ...
has been a major donor to many cultural and educational institutions, and has had many buildings and programs named for it. Their association with the
opioid epidemic The opioid epidemic, also referred to as the opioid crisis, is the rapid increase in the overuse, misuse/abuse, and overdose deaths attributed either in part or in whole to the class of drugs opiates/opioids since the 1990s. It includes the sign ...
has caused many activists to urge the recipients to remove the Sackler name from their buildings and programs, and some institutions have announced that they will remove the name or accept no further donations from the family. Harvard has said that it will not remove the name from the
Arthur M. Sackler Museum The Harvard Art Museums are part of Harvard University and comprise three museums: the Fogg Museum (established in 1895), the Busch-Reisinger Museum (established in 1903), and the Arthur M. Sackler Museum (established in 1985), and four research ...
because "Dr. Arthur Sackler died before
Oxycontin Oxycodone, sold under various brand names such as Roxicodone and OxyContin (which is the extended release form), is a strong, semi-synthetic opioid used medically for treatment of moderate to severe pain. It is highly addictive and a commonl ...
was developed. His family sold their interest in the company before the drug was developed.... he had absolutely no relationship to it". Similarly, the sex offender
Jeffrey Epstein Jeffrey Edward Epstein ( ; January 20, 1953August 10, 2019) was an American sex offender and financier. Epstein, who was born and raised in Brooklyn, New York City, began his professional life by teaching at the Dalton School in Manhattan, ...
was a major donor to many university programs, even after his conviction for sex crimes. After it emerged that the director of the
MIT Media Lab The MIT Media Lab is a research laboratory at the Massachusetts Institute of Technology, growing out of MIT's Architecture Machine Group in the School of Architecture. Its research does not restrict to fixed academic disciplines, but draws from ...
,
Joi Ito is a Japanese entrepreneur and venture capitalist. He is a former director of the MIT Media Lab, former professor of the practice of media arts and sciences at MIT, and a former visiting professor of practice at the Harvard Law School. Ito has r ...
, was aware of Epstein's misdeeds and took steps to solicit donations while hiding their source, Ito resigned.
MIT The Massachusetts Institute of Technology (MIT) is a private land-grant research university in Cambridge, Massachusetts. Established in 1861, MIT has played a key role in the development of modern technology and science, and is one of th ...
and
Harvard Harvard University is a private Ivy League research university in Cambridge, Massachusetts. Founded in 1636 as Harvard College and named for its first benefactor, the Puritan clergyman John Harvard, it is the oldest institution of high ...
have both initiated reviews of donations by Epstein. The MIT review concluded that:
Since MIT had no policy or processes for handling controversial donors in place at the time, the decision to accept Epstein's post-conviction donations cannot be judged to be a policy violation. But it is clear that the decision was the result of collective and significant errors in judgment that resulted in serious damage to the MIT community.


''Quid pro quo''

Donors are generally acknowledged publicly for their donations, which benefits their reputation. It has been argued that this should be treated as a business transaction. Many philosophers have argued that donations should be anonymous for this reason. Receiving something of value in return for a donation is also considered both legally and ethically a ''
quid pro quo Quid pro quo ('what for what' in Latin) is a Latin phrase used in English to mean an exchange of goods or services, in which one transfer is contingent upon the other; "a favor for a favor". Phrases with similar meanings include: "give and take ...
''."Substantiating Charitable Contributions", United States Internal Revenue Service

/ref>


Additional reading

*
Peter Singer Peter Albert David Singer (born 6 July 1946) is an Australian moral philosopher, currently the Ira W. DeCamp Professor of Bioethics at Princeton University. He specialises in applied ethics and approaches ethical issues from a secular, ...
, "Dirty money and tainted philanthropy", ''New Europe''
February 7, 2019
* Ernie Smith, "Amid Epstein Scandal, Fundraising Group puts focus on Ethics in Philanthropy", ''Associations Now'
September 19, 2019
* Jim Rendon, "How to Protect Your Nonprofit From Controversial Donors", ''The Chronicle of Philanthropy''
September 19, 2019


See also

*
Charity fraud Charity fraud is the act of using deception to get money from people who believe they are making donations to a charity. Often a person or a group of people will make material representations that they are a charity or part of a charity and ask pro ...
* Charity scandals *
List of Philanthropists A philanthropist is someone who engages in philanthropy; donating their time, money, and/or reputation to charitable causes. The term may apply to any volunteer or to anyone who makes a donation, but the label is most often applied to those who d ...
* Philanthropy in the United States *
Effective altruism Effective altruism is a philosophical and social movement that advocates "using evidence and reason to figure out how to benefit others as much as possible, and taking action on that basis". People who pursue the goals of effective altruism, ca ...


References

{{Charity Donation Ethics Philanthropy