(Not deeply thought through) Funders have a strong (though usually indirect) influence on the priorities and goals of the organization. Transparency about funders adds transparency about the priorities and goals of the organization. Conversely, lack of funder transparency creates the appearance that you’re trying to hide something important about your goals and priorities. This sort of argument comes up a lot in US political funding, under the banners of “Citizens United”, “SuperPACs”, etc. I’m making a pretty similar argument to that one.
Underlying my feelings here is that I believe charities have an obligation to the public. The government is allowing people to donate their income to a charity, and then (if they donate enough) to not pay taxes on that income. That saves the donor ~30% of their income in taxes. I consider that 30% to be public money, i.e. money that would have otherwise gone to the government as taxes. So as a rule of thumb I try to think that ~30% of a US charity’s obligations are to the public. The main way charities satisfy this obligation is by sticking to their IRS-approved exempt purpose and following all the rules of 501(c)(3)s. But another way charities can satisfy that obligation is by being really transparent about what they’re doing and where their money comes from.
Why do you think that? (I agree fwiw)
(Not deeply thought through) Funders have a strong (though usually indirect) influence on the priorities and goals of the organization. Transparency about funders adds transparency about the priorities and goals of the organization. Conversely, lack of funder transparency creates the appearance that you’re trying to hide something important about your goals and priorities. This sort of argument comes up a lot in US political funding, under the banners of “Citizens United”, “SuperPACs”, etc. I’m making a pretty similar argument to that one.
Underlying my feelings here is that I believe charities have an obligation to the public. The government is allowing people to donate their income to a charity, and then (if they donate enough) to not pay taxes on that income. That saves the donor ~30% of their income in taxes. I consider that 30% to be public money, i.e. money that would have otherwise gone to the government as taxes. So as a rule of thumb I try to think that ~30% of a US charity’s obligations are to the public. The main way charities satisfy this obligation is by sticking to their IRS-approved exempt purpose and following all the rules of 501(c)(3)s. But another way charities can satisfy that obligation is by being really transparent about what they’re doing and where their money comes from.