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FAMU and the Chamber of Commerce Foundation: Donor Diligence and Good Governance

M&A Due Diligence - Everything You Need to Know | Synoptek

Jason Smith over at Ways and Means is still mad as hell about the Chamber of Commerce’s acceptance of a donation used to help heroic American fighting men and women integrate back into civilian life after having volunteered to give their “last full measure” in defense of this great country that God has blessed.  Have I waved the flag high enough in that first sentence?  Every word of it is true.  Seriously.  That’s how absurd things have gotten in the House. I am all for divided government, but Lord help us if this current bunch gets a bigger majority.

Weeks ago, Chairman Smith sent a letter to Chamber of Commerce Foundation demanding to know why the Chamber accepted a donation from “left leaning” Tides Foundation. Tides is a huge fiscal sponsor and houses some groups that Smith hates, that’s what this is really about.  Anyway, the Chamber is using the money to support its Hiring Our Heroes program. I guess Smith didn’t like the answers he received so he sent a follow-up letter yesterday asking “Why are you partnering with Organizations that Support Antisemitism? This, of course, is the kind of bullshit that puts the lie to otherwise legitimate assertions of racism and anti-Semitism.  I wasn’t going to post about it except my father once told me “even a fool can teach you something.”  Smith’s letter asks three good questions that, indeed, every organization should ask itself before accepting even the largest donation: 

1. What is the U.S. Chamber of Commerce Foundation’s due diligence process for organizations or individuals that make contributions to the Foundation?

2. Does the U.S. Chamber of Commerce Foundation have any standards regarding when it will decline contributions from malign actors that are not aligned with the Chamber’s values?

3. Has the U.S. Chamber of Commerce Foundation ever declined or returned a donation based on concerns over the views, beliefs, or public pronouncements of an individual or entity making a donation?

Due diligence, standards for declining, and consistency with the organization’s mission or beliefs.  Sometimes it’s just common sense that gives law and life real meaning. 

You might recall that my school recently touted the largest ever gift to an HBCU months ago only to have the whole thing blow up in its face.  The fiasco cost one VP her job.  It also precipitated an investigation by Buchanan Ingersoll, an outside law firm hired by the Board.  BI has not issued the report yet but it sounds like some people may already know what’s in it. The report will show no diligence, no standards, and that this was an instance when even a record-breaking donation should have been declined.  I say that because, as I predicted, the other head is rolling.  The President announced his resignation a week ago and the Board of Trustees appointed an interim replacement yesterday.  

One way to ensure the right three questions are asked is to add another question:  “will accepting this donation cost any of us our jobs?”  It’s a great motivator. 

darryll k. jones