Philanthropic Efforts of Athletes Called Into Question

Fewer than half of 85 foundations started by athletes devote at least 75 percent of their spending to benefit charity, reports The Wall Street Journal.

The newspaper reviewed the most-recent tax filings for these foundations and found that most of their expenditures were earmarked for administrative overhead.

The best-run athletes’ charities are also the largest. The foundations of Lance Armstrong and Tiger Woods both reported devoting more than 75 percent of their spending to support charities and programs.

Experts on philanthropy say that the reason so many foundations are not well run is that athletes often hire family and friends to work for their foundations even though they frequently lack experience in running nonprofit organizations. Athletes defend these choices by saying relatives and friends better understand their charitable goals and will work for less money than other nonprofit officials.

Another pitfall is that many athletes’ foundations do not have large assets; therefore legal and accounting expenses take up a significant portion of spending.

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