September 15, 2016
AND THEY ACTUALLY CONTRIBUTE MONEY:
What do the Clinton charities actually do and where does their money go? (Brian Mittendorf, September 14, 2016< The Conversation)
The activities of the Clinton Foundation are a source of many misconceptions, which is understandable given the wide range of them.For starters, it's important to stress that the Clinton Foundation (unlike the Family Foundation) is an operating public charity, which means (1) it relies heavily on donations from the general public, and (2) it does not primarily act to disburse funds to other charities but rather engages in direct "on-the-ground" services.The first point is noteworthy because the Clintons' personal giving of about $2.86 million to the foundation accounted for just 0.4 percent of its $807 million in contributions from 2010 to 2014.Other funders include individuals (Gateway cofounder Theodore W. Waitt and former Formula One champion Michael Schumacher), foundations (Gates and Rockefeller), businesses (Coca-Cola and Barclays) and even foreign governments (Norway, Australia and Saudi Arabia).It's also important because soliciting donations from so many other individuals and entities - some of whom had personal connections with the Clintons or interest in State Department business - is what has fueled many criticisms levied at the organization.The second point matters because some rival politicians have used the low percentage of donations or grants that it gives to other charities as evidence it spends little on charitable works. In this case, however, the lion's share of the organization's program spending is for on-the-ground efforts. Research I conducted with a colleague demonstrates that this can actually be an indicator of greater effectiveness than grants alone.Some of the foundation's most notable activities - and where much of its money is spent - are run by the three organizations I mentioned earlier.The Clinton Health Access Initiative has long been the largest of the organization's initiatives and is now run as a separate legal entity. While the foundation currently retains control by appointing a majority of the board, the charity vowed on Sept. 14 to end this link and separate CHAI completely if Clinton wins in November.CHAI has worked to secure discounted pharmaceuticals and other supplies for distribution, as well as increase opportunities for health care in over 70 countries, including India, South Africa, Vietnam and Zimbabwe.The Clinton Global Initiative represents both the most innovative and most controversial program of the organization. CGI serves to match individuals and organizations willing to invest in projects aimed toward key public goals with charities and businesses seeking funding for their enterprises. Examples include funding loans to disabled veteran entrepreneurs and providing money for clinics in small villages in China.In a sense, CGI serves a role similar to Uber's in providing a platform to facilitate a mutually beneficial match. In this case, the match is aimed at securing funds to achieve social goals. Like Uber, the approach has the potential to accelerate activity (as evidenced by hundreds of millions of dollars in CGI commitments in 2015 alone). Also like Uber, the organization has faced the challenge of vetting the parties it matches (as evidenced by concerns about funding being secured for a for-profit enterprise run by friends of the Clintons).Clinton Giustra Enterprise Partnership also brings both praise and criticism for its unique approach. With funding from Canadian billionaire Frank Giustra and partnerships with Mexican billionaire Carlos Slim, CGEP represents a hybrid model that provides capital to enterprises, many of which are for-profit, that seek to achieve Clinton Foundation goals.Blurring the boundaries between for-profit and nonprofit activities, CGEP is ahead of the curve in seeking new ways to achieve social good (the Chan Zuckerberg Initiative is another notable newcomer to this arena).
Posted by Orrin Judd at September 15, 2016 4:05 PM
