logo logo
Donate
    • Membership
    • Donate
  • Social Justice
    • Racial Justice
    • Climate Justice
    • Disability Justice
    • Economic Justice
    • Health Justice
    • Immigration
    • LGBTQ+
  • Civic News
  • Nonprofit Leadership
    • Board Governance
    • Equity-Centered Management
    • Finances
    • Fundraising
    • Human Resources
    • Organizational Culture
    • Philanthropy
    • Power Dynamics
    • Strategic Planning
    • Technology
  • CONTENT TYPES
  • Leading Edge Membership
  • Newsletters
  • Webinars

Nonprofit Newswire | Star-Power Charity Inspires Envy and Questions

Rick Cohen
October 5, 2010

September 29, 2010; Source: Star Tribune | This article about a charitable foundation linked to a private corporation raises several questions that concern many in the nonprofit sector. The nonprofit in question is the Starkey Hearing Foundation, established by Bill Austin, CEO of Starkey Laboratories.

The foundation raises money to buy hearing aids—from Starkey Laboratories—for children. That’s the first item worth flagging: the foundation buys from the corporation that established it, but with third party money, so unless there is a sharp write-down on the cost of the hearing aids, the foundation is serving as a market for the corporation’s key product.

Second item: Austin is quite adept at associating with celebrities like Bill Clinton, Ozzy Osbourne, Muhammed Ali, and Steve Martin, to raise money for the foundation—$7 million of the foundation’s $9 million in revenues in 2009 came from a gala event this summer. Although Austin claims to be the financial angel for the foundation, he doesn’t seem to have much money in the operation—almost all of the funding comes from the gala and other donations.

The Starkey Hearing Foundation is a foundation established by a corporate CEO, but neither he nor the corporation are the major givers. In fact, the foundation gives to the corporation, spending $4.4 million to buy Starkey hearing aids and batteries in 2009. Over the past four years the foundation spent $16.5 million on Starkey products.

Third item: There are expenses meant to generate revenues that seem to fall short. Next to the $4.4 million for hearing aids, the foundation’s next biggest expense was $3.1 million for international and U.S. “mission trips” for Austin and others, but they generated only $1.3 million in donations. The Star Tribune cites a $1.9 million expenditure for Hear Now, described as a program to help lower income Americans get hearing aids, but it generated only $870,000 in donations.

Sign up for our free newsletters

Subscribe to NPQ's newsletters to have our top stories delivered directly to your inbox.

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

Also, charities serving the local deaf community don’t seem to have received much from the Starkey Foundation. For example, the Pacer Center in Minneapolis received $15,000 in 2009 after receiving $30,000 a year from 2006 to 2008. The Minnesota Association of Deaf Citizens was told by Starkey Foundation officials that the foundation didn’t give away grants, but the Elton John Foundation has received some $1.2 million from Starkey over four years, Garth Brooks’ Teammates for Kids Foundation got $1.49 million, the Grammy Foundation $300,000 last year, and the Horatio Alger Jr. Foundation received $200,000 in 2008. (Note: Austin received a Horatio Alger Award and lifetime membership in the Horatio Alger Association that year, joining other rags-to-riches role models such as Clarence Thomas, Condoleeza Rice, Steve Wynn of Wynn Resorts, Denzel Washington, and the late Ed McMahon.)

Austin’s wife Tani explains the grants to celebrities’ charities as helping celebrities that have helped the Starkey Foundation: “We help each other. Hearing is one thing. But life has complex issues . . . We try to respect good causes that help people in special ways.”

How does Bill Clinton figure into this? Austin plans to collaborate with the Clinton Global Initiative. We suggested last week in an NPQ Newswire that CGI tended not to be particularly picky about the causes and partners it attracted. The Austins flew to New York for the Clinton Global Initiative annual gathering where the Foundation’s press release announced that Bill and Tani received a standing ovation as they were introduced by the former president.

Our look at the Clinton Global Initiative’s list of commitments, a searchable database, failed to find mention of the Starkey Foundation, Bill or Tani Austin, or hearing aids, but perhaps the former president hasn’t updated his website lately. This all sounds like a foundation that merits some close regulatory scrutiny, a little too attracted to famous people and a little inattentive to foundation procedure.—Rick Cohen

About the author
Rick Cohen

Rick joined NPQ in 2006, after almost eight years as the executive director of the National Committee for Responsive Philanthropy (NCRP). Before that he played various roles as a community worker and advisor to others doing community work. He also worked in government. Cohen pursued investigative and analytical articles, advocated for increased philanthropic giving and access for disenfranchised constituencies, and promoted increased philanthropic and nonprofit accountability.

More about: Nonprofit News

Our Voices Are Our Power.

Journalism, nonprofits, and multiracial democracy are under attack. At NPQ, we fight back by sharing stories and essential insights from nonprofit leaders and workers—and we pay every contributor.

Can you help us protect nonprofit voices?

Your support keeps truth alive when it matters most.
Every single dollar makes a difference.

Donate now
logo logo logo logo logo
See comments

You might also like
“Unrig the Game”: Learning from Women of Color in Leadership and Social Movements
Holly Jonas
For Black Maternal Health, We Need Justice and Equity: A Conversation with Angela Doyinsola Aina
Rebekah Barber
A Group of Black Girls Commemorates Juneteenth by Walking in Harriet Tubman’s Footsteps
Rebekah Barber
In California’s Largest Landback Deal, the Yurok Tribe Reclaims Sacred Land Around Klamath River
Anita Hofschneider, Grist
Making Housing Affordable: How Government Can Finance Homes at Low Cost
Fernando Marti
New Study Shines a Light on the Impact of Donor-Advised Funds
Chuck Collins and Helen Flannery

Upcoming Webinars

Group Created with Sketch.
June 26th, 2:00 pm ET

From Performance Management to Mutual Commitment

Fostering a Culture of Joyful Accountability

Register
Group Created with Sketch.
July 24th, 2:00 pm ET

Organizing in Divided Times

The Relational Infrastructure We Need to Protect Democracy

Register

    
You might also like
Conservatives Attack Nonprofits on Capitol Hill
Isaiah Thompson
Glass-paneled exterior of the Microsoft building.
Microsoft Axes Free 365 Software for Nonprofits
Isaiah Thompson
US Capitol Building
Tax Provision Would Give Trump Administration Unilateral...
Rebekah Barber and Isaiah Thompson

Like what you see?

Subscribe to the NPQ newsletter to have our top stories delivered directly to your inbox.

See our newsletters

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

  • About
  • Advertise
  • Careers
  • Contact
  • Copyright
  • Donate
  • Editorial Policy
  • Funders
  • Submissions

We are using cookies to give you the best experience on our website.

 

Non Profit News | Nonprofit Quarterly
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.