Foundation for the Carolinas has an important question to answer about hate group donations

The Foundation for the Carolinas has a clear policy about donations it makes from funds established by donors. If such donors want to give money to an organization, and that organization is recognized as a nonprofit by the federal government, the foundation will write the check.

It’s a reasonable policy, and it’s one that many foundations employ with what are called donor-advised funds. It’s also a convenient policy in that it allows foundation officials to avoid having to decide if such donations align with the foundation’s values. Finally, it’s good business to give donors the comfort of knowing you won’t cast judgment on their donations.

But that policy is now bringing discomfort to the Foundation for the Carolinas and those who support it. A Charlotte Observer investigation Wednesday revealed that more than $20 million managed by the foundation has bankrolled anti-immigration organizations in the U.S.. Those include the Center for Immigration Studies and Federation for American Immigration Reform, which are designated as hate groups by the Southern Poverty Law Center.

Foundation officials won’t comment on the donor who directed those millions to influential anti-immigration organizations, but FFTC president and CEO Michael Marsicano told the Observer that the foundation is reluctant to tell its donors where their money can’t go. “Philanthropy is a form of freedom of speech,” he said, “and I don’t think any institution should be cutting off freedom of speech on fund holders.”

Marsicano is right — the resources we give are an expression of who we are. Sometimes, those declarations are public, such as when the Foundation for the Carolinas rightly says on its website that it “empowers individuals to create a better community” and that it is “supporting the needs of immigrants.” Sometimes we make the statement more quietly — including through who we choose to do business with.

But such declarations can be tricky because organizations, like people, are complicated. They can do great things while having some objectionable beliefs. So when we send our child to Boy Scouts or drop money in the Salvation Army kettle, we make a calculation of sorts — does the good an organization does outweigh the times when it doesn’t share our values?

CIS and FAIR aren’t among those organizations, however. They have promoted white nationalist thought and advocated for policies that harm immigrant families and communities — policies that run contrary to the mission of Foundation for the Carolinas. Certainly, foundation officials can argue that donor-advised funds giving money to objectionable groups also give millions to worthy causes. The foundation also can argue that people ultimately will donate what they want to whomever they want, and that if the foundation starts telling donors what they can and can’t give, they might have fewer donors to tell.

All of which might be true. But of the 10 largest community foundations in the country, FFTC is the only one that has channeled money to anti-immigrant groups since 2015, the Observer found. Foundation for the Carolinas officials and board members need to ask if it’s worth it. What does it say about who they are? It’s a question donors — and Charlotte — also might be asking.

This story was originally published November 21, 2019 at 7:08 AM.