Tuesday, March 06, 2007

The McCormick Tribune Foundation just moved into the bull's-eye

The Tribune Company is one of America's largest media conglomerates: owner of the Chicago Tribune, the L.A. Times, the New York Daily News, other newspapers around the country, the Chicago Cubs, WGN TV and radio, Metromix, and sundry related businesses. The company's ongoing corporate soap opera has a significant non-profit-governance element which has been overlooked or overshadowed...until now: Illinois Attorney General Lisa Madigan "has taken an interest" in the issue of whether the heavyweight Robert R. McCormick Tribune Foundation is being run properly as a charitable institution.

The source of this news is a front-page article in this week's issue of Crain's Chicago Business, the city's leading business newspaper. Madigan, who has previously put non-profit hospitals in her sights, seems pretty clear on the fact that being a tax-exempt organization in the U.S. is a legal and social contract not a blank check or inalienable right. Given the facts here, that does not look good for the foundation. Madigan's scrutiny may also may have an impact on the the ultimate fate of the media company, via a scenario explained in the Crain's article linked above.

That also does a decent job of explaining how the foundation and the company are so tightly linked and why, but the degree to which that is contrary to modern standards of non-profit governance and law doesn't really come across. The foundation remains basically a captive creation of the company, and that is one of the once-common practices that inspired the wholesale rewrite of federal charitable-foundation law in 1969. It also certainly violates the spirit, at least, of Illinois' not-for-profit incorporation statute.

The quote from Robert Sitkoff at Harvard could be correctly applied to the whole setup, not simply the specific transaction he's commenting on there. The foundation spokesman's rejoinder at the end of the article is feeble as a defense of the specific issue about responsible investing of the foundation's endowment, and that isn't the biggest odor about this anyway.

3 comments:

Adi said...

Oes Tsetnoc one of the ways in which we can learn seo besides Mengembalikan Jati Diri Bangsa. By participating in the Oes Tsetnoc or Mengembalikan Jati Diri Bangsa we can improve our seo skills. To find more information about Oest Tsetnoc please visit my Oes Tsetnoc pages. And to find more information about Mengembalikan Jati Diri Bangsa please visit my Mengembalikan Jati Diri Bangsa pages. Thank you So much.
Oes Tsetnoc | Semangat Mengembalikan Jati Diri Bangsa

Anonymous said...

[url=http://tonoviergates.net/][img]http://tonoviergates.net/img-add/euro2.jpg[/img][/url]
[b]academic software alliance, [url=http://tonoviergates.net/]nero 7 premium[/url]
[url=http://tonoviergates.net/]software for grocery store[/url] acdsee 3 serial nero 8 ultra
adobe acrobat reader 9 softwarefree download [url=http://sopriventontes.net/]10 Advanced Retail Price[/url] discount software and
[url=http://sopriventontes.net/]software for retail shops[/url] windows xp home oem software
[url=http://sopriventontes.net/]windows xp repair[/url] windows vista service pack 2
buy adobe dreamweaver [url=http://tonoviergates.net/]purchase software directly from[/url][/b]

Anonymous said...

Hello


The new kid on the block is http://www.BuySellDirect.net their internet selling free service is the Future of E-commerce. If you will not use such wonderful FREE service to make extra money at home, then tell your friends and family members about it.


http://www.BuySellDirect.net is a a free service to buyers and sellers !