There are many advantages to aligning a corporate foundation’s strategic agenda with its parent company’s. However, as The Pearson Charitable Foundation recently found out, when the line separating charity from commerce gets blurred, mistakes can be costly.
Late last fall, the foundation agreed to pay $7.7 million to settle charges that it had broken New York State law. Allegedly, the foundation had helped its for-profit parent company, Pearson Publishing, by developing course materials for the education publishing giant and by paying expenses for its prospective clients to attend education conferences.
Our article, Steering Clear of Trouble: Lessons from the Pearson Charitable Foundation, explains how you can realize the full benefits of your foundation’s work without running afoul of compliance regulations.