7/11/06

Don't tie charitable foundations' hands

Two members of the Michigan Legislature are proposing a bill that would severely restrict how the state's charitable foundations spend the philanthropic dollars of others. Even worse, this legislation comes at a time when governments at all levels are in retreat in funding vital services that are clearly their responsibility.

Should Michigan's misguided efforts advance, other states might decide to join the bandwagon.
Unlike government, with its one-size-fits-all approach, foundations are exceedingly flexible, able to spot emerging trends and prepare an effective response, or react immediately when the circumstances warrant. Should government succeed in shackling foundations, who will answer the call?

Foundations can attribute much of their success to their ability to act independently and quickly. While they are answerable to their donors and boards, foundations can afford to take appropriate risks and encourage creative and innovative solutions that advance the social good. Equally important, foundations are not bound by political or geographical boundaries -- nor are the vast needs they serve.

[Excerpt of a commentary by Steve Gunderson published in The Detroit Free Press]

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