Public money and private foundations
A long time ago in a blog post far far away, a commenter inquired about the difference between a trust and private foundation. In class I explained that a trust is property held for the benefit of a third party--in the case of a charitable trust, the "indefinite class" (as opposed to specific individuals) benefited by the trust's charitable purpose.
The term private foundation, however, has a somewhat more slippery legal definition. It arose as a way to describe--and condemn--charitable organizations funded by a small number of individuals, who presumably veered more toward their own interests as opposed those of the general public.
Quick aside: I'll be talking about that a bit more on this site, but suffice it to say that while the term "private foundation" still retains the connotation of private interests vs. public good, defining what constitutes a private foundation turned out to be a task too tough for the legislators determined to regulate 'em--which is why the tax code classifies all charities as private foundations unless they meet one of the rather complicated tests for public charity status. But that is a tale for another day . . .
Occasionally a news story bubbles up to remind us why U.S. law came to distinguish between private foundations and public charities. Here is one such story.
In Tuscaloosa, Alabama, a college has come under fire for certain transactions in which state funds ended up going to a related private charity. Frankly, the sort of things described in the article could--and probably do--occur in any number of charities without anyone being too upset, but here ya go--the state Department of Examiners of Public Accounts is laying the smacketh down on good ol' Shelton State Community College because "contractual agreements are being utilized to divert public funds to foundations."
Now you might be saying, hey, what's the big deal--aren't private foundations charities too?
And you'd have a point. But there's something else going on here that says a lot about the values embedded in law and how they shift and evolve. Is this small Southern skirmish a sign of a swing back toward the government as the hub of social benefit?
Categories:
0 TrackBacks
Listed below are links to blogs that reference this entry: Public money and private foundations.
TrackBack URL for this entry: http://uncivilsociety.org/mt/mt-tb.cgi/75
Top China Wholesaler-Buy Wholesale Promotional Gifts Promotional Products from China.
China Wholesale Bottle Opener Wholesale Frisbee Wholesale Carabiner Wholesale Keychain Wholesale Mug Wholesale USB Flash Drive Wholesale Cup Wholesale Cap Wholesale Towel Christmas Gifts Wholesale Gift Bags Wholesale Umbrella Wholesale Vuvuzela Wholesale Socks Wholesale USB Products Wholesale First Aid Kit Wholesale Pom Poms Wholesale Clap Hands Water Bottle Wholesale Halloween Gift Wholesale Waterproof Case Wholesale Calculator Wholesale Bag Wholesale Golf Products Wholesale Stress Ball Wholesale Knife Wholesale Wallet Wholesale Lanyard Wholesale Pen Wholesale Flashlight Wholesale Watch Wholesale Candle Wholesale Apron Wholesale Fan Wholesale Lighter Wholesale AshtrayOur main products are consumer electronics, gifts and souvenirs, health care products, beauty products, automobile parts, household items, plastic products, metal products, kitchen supplies, stationery, sports goods, toys, watches, leather products, etc.
China Wholesale Town - China's most viable wholesale supplier of promotional gifts, you can customize your own logo, no matter anywhere in the world!
Wholesale T-Shirts Wholesale Clocks Wholesale Glasses Wholesale Clothes Rack Wholesale Kitchenware Wholesale Vase Poncho Raincoat Wholesale Shoe Wholesale Furniture Wholesale Camera Wholesale Jewelry Wholesale Toys Wholesale Keyboard Wholesale Mouse Wholesale Mat Wholesale Scarf Wholesale Speakers Eye Mask Wholesale Earphone Wholesale Mp3 Recorder Pen Wholesale Tie Wholesale Clothing Wholesale Scissors Wholesale Bookmark Wholesale Mobile Phone Solar Products Lighting Products Wholesale Glass Computer Accessories Wine Set Safety Suppliers Wholesale Tableware Silicone Products Home Appliances Electrical Gifts Automotive Products Audio Video Equipment Consumer Electronics Digital Photo Frame Electroluminescent Wholesale iPod iPhone Wholesale Memory Card Wholesale Radio Wholesale Scale Wholesale TelePhone Voice Recorder Advertising Material Arts Crafts Wholesale Badge Wholesale Pin Wholesale Banner Wholesale Flag Business Gift Coca Cola Gifts Crystal Gifts Flash Gift Gift Box Giveaway Material Inflatable Products Muslim Products Valentine Gifts Vocal Concert Products Wedding Favors Beauty Equipment Wholesale Bracelet Wholesale Bangle Hair Products Health Care Products Heating Products Wholesale Helmet Lady Beauty Care Manicure Set Wholesale Massager Medicine Instrument Men Beauty Care Wholesale Mirror Patient Care Products Wholesale Pedometer Personal Safety Products Safety Products Wholesale Thermometer Cleaner Products Wholesale Coaster