Criteria for philanthropy at its best: Ethics

Private foundations and other institutional grantmakers play a vital role in sustaining the U.S. civil society sector, and exemplary foundations operate ethically and with great integrity. Unfortunately, too many grantmakers do not take the necessary steps to demonstrate that they are using their tax subsidies to further their charitable purpose. It is incumbent on a foundation to demonstrate accountability and trans- parency in its operations so that regulators and the public know that all grantmaking institutions are acting as ethical stewards of the tax-subsidized dollars with which they are entrusted.