Money Corrupts

AT&T is lining up support for its acquisition of T-Mobile from a slew of liberal groups with no obvious interest in telecom deals — except that they’ve received big piles of AT&T’s cash.

In recent weeks, the NAACP, the Gay & Lesbian Alliance Against Defamation and the National Education Association have each issued public statements in support of the deal.

The groups all say their public positions have nothing to do with the money they received from AT&T. And AT&T says it supports nonprofit groups because it’s the right thing to do — and not because of any quid pro quo.
~ from AT&T Gave Cash to Merger Backers by Eliza Krigman ~

I worked in nonprofit management for over a decade for Oregon's largest peace, justice and environmental sustainability group, Oregon PeaceWorks (OPW). While we never received very much money from foundations -- most came from individuals -- the perspectives of our major donors did play a big role in the direction of specific programs and our overall mission.

This shouldn't be some glaring admission. Nonprofit organizations often run on shoestring budgets (though some of the larger mainstream groups look almost like a for-profit corporation). The paid staff of the lesser financed organizations work long hours at minimal pay because they believe in the cause or objective. It is not uncommon for many to scrounge for donations each month to keep the lights on or to replace broken down equipment.

If your group receives a good chunk of your annual revenue from one or more corporate foundations or major donors, you would be crazy to speak out against something they favor or to support something they oppose. It all goes back to the old adage, don't bite the hand that feeds you!

This financial arrangement goes far to underscore the pernicious nature of so-called corporate benevolence. It is an insidious tool often utilized to buy-off organizations that might otherwise prove to be a thorn in the side of the corporate money-making enterprise. It often causes nonprofit groups to go against their own mission statement in support or opposition to whatever their corporate overlords desire.

In the case of AT&T above, those groups that support the proposed merger stand a good chance of receiving a favorable score from the telecom giant and those "good feelings" most likely will equate to continued grants from AT&T's foundational arm. It will provide these groups with a leg up in the next funding cycle against other groups who didn't weigh in at all.

Money makes the world go 'round and it too often corrupts the way it spins.