Policy Digest

Decmeber 1996 

Foundation Money Calling the Tune in Some States

Some private foundations are encouraging states toward certain agendas through contributions. Critics say states are being bribed into establishing controversial programs just to get charitable foundation grants.

  • U.S. charitable foundations dole out about $100 million each year to state and local governments.
  • Virtually every state accepts social agenda grants from private foundations.

Here are a few of the state programs such grants have funded in the past:

  • A private foundation persuaded the Kentucky Department of Education to set up a program to give children genital examinations, justified as an effort to detect child abuse.
  • An undisclosed private foundation persuaded a Pennsylvania school district to use some 900 elementary school children as guinea pigs in a series of psychological tests and experiments.
  • The Robert Wood Johnson Foundation has been accused of steering Kentucky toward its own preferences in a health care reform plan -- said to be a virtual copy of Hillary Clinton's rejected plan -- after providing almost $300,000 in policy research funds.
  • The Casey Foundation provided Kentucky with $74 million to place social workers in every school, providing students with services such as distribution of contraceptives and abortion referrals.

Critics say the door is open to every foundation to push any agenda it wishes in states by dangling promises of millions of dollars.

Source: Brigid McMenamin, "Trojan Horse Money," Forbes, December 16, 1996.



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