The Rundown - Professional Athletes and Philanthropy - February 17, 2023
Philanthropic efforts run by professional atheletes often miss the mark
Philanthophy and the NFL
Professional athletes often have a powerful platform and significant financial resources at their disposal, making them well-positioned to start a philanthropic foundation and make a meaningful impact in their communities. However, despite these advantages, many athletes struggle with the process of starting a foundation and navigating the complex landscape of philanthropy.
Such was the topic of this piece from the Jason Wolf, writing in the Arizona Republic. The piece was timely and well written. State Farm Stadium in Glendale, Arizona was the site of this year’s Super Bowl and in the leadup to the event, the League bestowed one it’s most precious honors, The Walter Payton Man of the Year award. This award is given to the NFL player that not only shines on the field, but also has made a tremendous impact off the field as well. Dallas Quarterback Dak Prescott is this year’s award winner.
But Wolf does more than just expose light on a topic that is designed ro bring smiles and warm feelings. As a journalists, he stresses that philanthropic efforts are often more tougher than it seems and it requires a sense of professional training and ethics to do the job right; these things that are sometimes not only missed by athletes, but also those financial and legal management minds that are hired to help these athletes achieve their philanthropic goals.
One of the primary challenges that athletes face when starting a foundation is the sheer amount of time and effort that is required to build a successful philanthropic organization. Starting a foundation is not simply a matter of writing a check and making a public announcement - it requires careful planning, research, and relationship-building to ensure that the foundation is well-positioned to make a meaningful impact in the community. Former Arizona Cardinals Defensive End was quoted in Wolf’s story:
“It’s not as simple as saying, ‘I want to help people, I wish it was. Trust me. I wish it was. But you have to understand the responsibilities that come along with it.”
For many athletes, starting a foundation is a new and unfamiliar experience, and they may not be prepared for the level of commitment and work that is required. This can lead to frustration and a lack of progress in the early stages of the foundation's development, which can ultimately lead to the project being abandoned altogether.
Athletes may also struggle with the challenge of finding the right partners and collaborators to support their philanthropic efforts. Successful foundations often require a wide range of partners, including community organizations, nonprofit groups, and other philanthropic institutions. For athletes who may be new to the world of philanthropy, it can be difficult to identify and build relationships with these partners, and to navigate the complex web of relationships that is required to build a successful foundation.
Athletes can also benefit from building partnerships with other philanthropic organizations and community groups, as well as tapping into the power of social media and other forms of digital outreach to build support for their foundation.
Many times, these atheletes rely on their business managers or other representatives to help them start their foundations. These managers can often rely on heavy management fees to have these foundations in their portfolio. This heavy overhead can make nonprofit effectiveness hard to achieve.
Wolf’s story talked about the experirence of former NFL player Charles Tillman:
Retired Chicago Bears cornerback Charles “Peanut” Tillman said he left (a management) company (that) took a cut of the prize money when he was named the 2013 Walter Payton NFL Man of the Year. His Cornerstone Foundation, which reported record revenues and expenses in 2014, spent just 26 cents of every dollar on charitable activities that year, its last under Prolanthropy management, according to tax records.
Tillman said he refused to sign a non-disclosure agreement and reported the company’s business practices to the NFL.
“Everything you said, that was me too,” Tillman told The USA TODAY Network. “That’s all players. They might not know everything about the foundation business, but they want to give back. They want to use their platform to do something amazing. I tried to tell people, ‘Learn from my mistake.’”
Another challenge that athletes face when starting a foundation is navigating the complex legal and regulatory landscape of philanthropy. There are numerous laws and regulations that apply to the operation of foundations, including rules related to tax-exempt status, grantmaking, and financial reporting. For athletes who may be more familiar with the world of sports than the world of philanthropy, this can be a daunting and overwhelming task.
In addition to the legal and regulatory challenges, athletes may also struggle with the logistics of running a foundation, including managing finances, developing partnerships with other organizations, and building a team to support the foundation's operations and fundraising.
Former Arizona Cardinals Defensive Tackle was reported to have said that the fundraising aspect was one of the hardest challenges to get his own head around:
“Raising money was a lot harder than we thought it would be, based on what I had seen other people doing. It took a little while to figure that out. And even then, I worked really hard to try to put on really great events and we ended up breaking even because the people who put the event on for you, their piece would be the bulk of the profits.”
“It’s a broken system from that standpoint right now.”
Furthermore, athletes often face the challenge of managing public expectations when it comes to their philanthropic efforts. Professional athletes are often seen as role models and leaders in their communities, and there is a certain level of pressure and scrutiny that comes with that position. Fans and the media may expect athletes to use their resources to address a wide range of issues, and it can be difficult to balance these expectations with the athlete's personal values and priorities. Former Wide Receiver Anquan Boldin, himself a former Man of the Year award winner touched on that:
“There are a lot of guys that are in that position that they’ve always dreamed of being in and they finally have the opportunity to give back and be helpful, but a lot of guys don’t know where to turn. Guys don’t know where to start. And a lot of times when you ask people who you trust, they don’t even know.”
Staring a philanthropic venture, whether it is a boots-on-the-ground nonprofit or a foundation, is rarely an easy task, even for professionals such as lawyers and accountaints; professional athletes are no different. Athletes need to seek out support and guidance from experts in the philanthropic field that is often further than just their own financial and legal management teams.
But perhaps one of the most important assset a professional athlete needs to devote to the effort is more than just money, but time. By being prepared to devote both the time and resources needed to build a successful foundation, and by leveraging the expertise and support of the philanthropic community, athletes can become better partners in philanthropy and make a meaningful difference in the lives of others.
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