Organizational and other difficulties often make it difficult for foundations run by professional basketball players to actually get money to those who need it. The Salt Lake Tribune analysed 89 NBA-player focused charities and found that many were plagued with mismanagement and others just had problems raising more money than they were spending.
Salt Lake Tribune: Among the findings of The Tribune’s analysis of 89 stand-alone NBA player charities:
» Together, they reported revenue of at least $31 million between 2005 and 2007, but only about 44 cents of every dollar raised – or $14 million of that $31 million – actually reached needy causes. The average NBA player foundation put just 51 cents of each dollar it spent toward charitable programs, well below the 65 cents most philanthropic watchdog groups view as acceptable. Tax records show budgets are quickly eaten up by poor planning and administrative costs.
» While a handful of player charities appear to be well-financed and tightly managed organisations that do good, a larger number are unimpressively funded and their activities poorly documented. Up to a quarter of NBA player charities analysed lacked even basic documentation required by the Internal Revenue Service.
» In spite of their celebrity, NBA athletes seeking public donations often struggle for years before building a viable stream of donations. About a third of NBA player charities analysed instead remain funded by the athletes’ own wealth. Many close for lack of support or because athletes move on.
Great ideas. Poor execution.
Hat Tip: Luxist