Press Releases

For Immediate Release
6/30/2004
Contact: Jeff Krehely / Naomi Tacuyan
202-387-9177 ext. 26 / ext. 17
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Corporate executives convicted of fraud should not remain guardians of foundation money, NCRP report says
Newest NCRP report exposes disturbing incidences of executives being banished from the corporate world but being allowed to remain guardians of philanthropic assets
WASHINGTON-NCRP's new report, "Serving Time... on Foundation Boards" clearly identifies fraudulent corporate executives and warns of the irreparable harm to foundation accountability should these executives be allowed to remain on the boards of foundations. In the wake of the Enron scandal and in light of the Senate Finance Committee hearing on nonprofit governance, "Serving Time... on Foundation Boards" has been released to draw attention to yet another facet of foundation governance that needs policing.

"It's astounding that any independent foundation would maintain what amounts to a corporate felon on its board of directors. It's equally astonishing that current law allows people accused and convicted of deliberately mismanaging corporate funds for personal gain to serve as stewards of tax-deductible foundation dollars, which in many ways belong to all of us," said Jeff Krehely, lead author of the report and deputy director of NCRP.

The report provides a list of individuals who have been accused or convicted of committing some type of corporate fraud and who are still serving on foundation boards of directors. It also discusses recent federal legislation that is designed to clean up the scandals plaguing the nation's for-profit organizations, as well as New York State's proposed efforts to better regulate its foundation and nonprofit sectors. The report concludes with policy recommendations and options that will improve foundation governance and help restore the public's faith institutional philanthropy.

"Serving Time... on Foundation Boards" can be downloaded online at: http://www.ncrp.org/PDF/ServingTime.pdf

Founded in 1976, the National Committee for Responsive Philanthropy is dedicated to helping the philanthropic community advance the traditional values of social and economic justice for all Americans.  Committed to helping funders more effectively serve the most disadvantaged Americans, NCRP is a national watchdog, research and advocacy organization that promotes public accountability and accessibility among foundations, corporate grantmakers, individual donors and workplace giving programs.  For more information on NCRP or to join, please visit www.ncrp.org or call 202-387-9177.


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