Why We Need a New Commission on Philanthropy

To the Editor:

Leslie Lenkowsky’s article “Pointing Up the Non-Profit Paradox” (March 23) addressed important accountability issues facing non-profits in the 21st century.

I did not read the Joint Commission on Taxation report or the recommendations. I did read, in the 1970’s, many of the writings and recommendations of the Commission on Private Philanthropy and Public Needs, chaired by John Filer. Then, as today, it is in the non-profit sector’s interest to establish a commission, similar to the Securities and Exchange Commission, to provide accountability, guidance, knowledge, and enforcement to the sector and to maintain the public’s confidence.

The detailed reports available to the public on a publicly traded company can be obtained virtually instantaneously in today’s world. There is no comparable source of detailed data available to the public on the actions of the non-profit sector. Yet non-profits raise and generate hundreds of billions of dollars. And phenomenal financial growth is projected.

Surely, we all agree that non-profit accountability is important. Thus, the leadership of the non-profit sector should see the wisdom in establishing an enforcement commission, through an act of Congress, to:

* Lessen the fragmented approaches of each state government’s regulation of non-profits.

* Act as an enforcement mechanism with fund raisers and non-profits, prior to any necessary I.R.S. action, and help lessen unnecessary regulation by the I.R.S. and other governmental bodies.

* Serve as the information source for public access of all reporting non-profits.

* Assist with the growing global actions of the non-profit sector.

* Maintain integrity in a vital economic- and social-growth sector. Without some type of action, continued accountability and taxation challenges will face the non-profit sector. Why? Primarily because the sector does not have a self-enforcement body acting to ensure a strong future. If the sector wants to be both public and private, or a combination, some means for ensuring accountability must exist.

The sector’s size, growth, and influence call for such action. Mr. Lenkowsky framed the debate. The leadership and the membership of Independent Sector will be called on to address the methods for ensuring continued public, foundation, corporate, and governmental confidence. The sector’s future awaits thoughtful actions.

Bill White
Executive Director
Orangutan Foundation International
Los Angeles