Charities Look Corporate Gift Horse in the Mouth

September 2003

A recent survey by the Givewell Research Centre has shown that many charities won't accept money from just anyone. Some money is considered 'dirty', depending on the business activities of the donor/sponsor. Tobacco, gaming and alcohol companies, in particular, could find it difficult to find beneficiaries of their efforts to be good corporate citizens.

Our survey was conducted by emailing the more than 1000 charities listed by Givewell who have email addresses, asking if they had any form of policy (formal, informal or ad hoc) to screen donations. Of these, more than 200 replied within the tight deadline given for responses. Only three organisations asked that their response be kept confidential.

Summary of Results:

Key Comments that are presented in the report include:

· A distinction between gifts or donations (from individuals) and sponsorships (from corporations)
· Certain companies considered to be unacceptable as donors / sponsors
· Concern that acceptance of government grants might compromise principles

Issues Arising from the responses include:

· Is it ethical to accept funds that have come indirectly from unacceptable sources?
· How far should charities be expected to go to verify the source of funds?
· Do the ends justify the means? Is it acceptable for charities to accept 'dirty' money, if it is used in a good cause?

The full survey is available to subscribers to the Givewell Research Centre.

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