P O S T E D B Y A L B E R T
Joseph C. K. Breiteneicher, one the Great Souls of philanthropy, died on June 22nd after a long battle with cancer. He was a mentor to many in the field—myself included—and one of the pioneers of promoting philanthropy. He brought incredible intellect, passion, and moral authority to his work, serving most recently as president and CEO of The Philanthropic Initiative. I republish below a guest post that Joe wrote two years ago for the blog Hail, Sons and Daughters of Carnegie, the predecessor to White Courtesy Telephone.
Restoring the Trust in Trusteeship
Trusteeship is a sacred calling—as should be all work in the philanthropic sector. Compensating trustees diminishes the stewardship values and moral force of the sector.
Below, I offer several perhaps not-so-obvious arguments why all foundation trustees ought to serve pro bono.
First, I find it a moral disconnect that foundations pay trustees for service while they allow salaries in many grantee nonprofits to hover near subsistence levels. Because most folks who work in nonprofits (real ones, not tax-exempt businesses like most hospitals and large private colleges) are underpaid, and because foundations have contributed to this “underpayment” by not fighting for better conditions of employment for the nonprofit workforce, foundation trustees should feel obliged to forswear all compensation. It is the moral thing to do since foundations have helped keep most nonprofit workers economically barefoot and pregnant. And, thanks to Senator Grassley, it may also be the politically wise thing to do.
If the sector cannot get its act together, then Congress ought to adopt Canada’s laws regarding trustee compensation. Perhaps that could help build momentum toward other things Canadian—universal health care, gay marriage, diversity, police in great uniforms.
The rules of Revenue Canada (IRS nord) proscribe trustee compensation for all types of NGOs/foundations. The penalty is simple: foundations lose their nonprofit philanthropic charter. Last I looked, Canada had some very effective, progressive philanthropies with quite active trusteeship. No U.S. community foundation that I know pays its trustees. In both cases I can cite great foundations that have participation from less affluent folks who are passionate about their communities and who see philanthropy as real service. All this without the need to compensate.
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