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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsBill Clinton Responds to the NYT's 'Unease' About Foundation's Finances
Last edited Sun Aug 18, 2013, 09:15 AM - Edit history (4)
________________________
An Open Letter From Bill Clinton
Aug 16, 2013
by President Bill Clinton
____ The Clinton Foundation was founded on the belief that we could help people in the United States and around the world solve problems and seize opportunities faster, better, and at lower cost. The Foundation works with governments, businesses, NGOs, and private citizens on a wide variety of health, economic, energy, and other activities that enable people to live better lives.
Over the last 12 years, as a result of our programs:
More than 5 million people worldwide have access to low cost, high quality AIDS treatment, including more than 500,000 children thats more than 75 percent of the total number of children on treatment. In South Africa alone, CHAI-negotiated drug prices have saved more than $950 million since 2010.
More than 21,000 farmers in Malawi have received lower-cost, higher-quality seed and fertilizer for their crops. As a result, they have increased their production two and a half times, and their incomes have increased more than 5 times. Soon we will be serving 100,000 farmers.
More than 5,000 people have been trained in marketable job skills in Colombia.
In the fight against childhood obesity at home, the Alliance for a Healthier Generation brokered agreements with soft-drink and juice companies, resulting in a 90% reduction in calories from drinks served in school cafeterias and vending machines. And because of our work in 18,000 schools in all 50 states to improve exercise and nutrition programs, the Alliance was asked to play a leading role in the implementation of First Lady Michelle Obamas Lets Move Active Schools program.
With the measures they have already undertaken or committed to, cities in the C40 Cities Climate Leadership Group, which works in partnership with the Clinton Climate Initiative, are on track to reduce their collective annual emissions by 248 million tons by 2020.
To date, CGI members have made more than 2,300 commitments, which are already improving the lives of more than 400 million people in over 180 countries. When fully funded and implemented, these commitments will be valued at $73.5 billion. Because of the commitments made possible through our unique model, more than 35 million people have gained access to information technologies; nearly 40 million children have access to a better education; more than 6 million people have increased access to capital and finance; and nearly 59 million people have increased access to maternal and child health survival programs. Over the years that CGI has grown, our staff has increased their capacity to help people develop commitments, find partners, and keep their commitments. At each meeting we are spending more and more time giving updates on existing commitments as well as announcing new ones. CGI America and CGI University are doing well, and this year we will resume holding meetings abroad with a CGI meeting in Brazil in December.
And this is just a sample of our work.
Our Financial Position
The New York Times recently reported that the Foundation ran a deficit of $40 million in 2007 and 2008 and $8 million in 2012.
The reporting requirements on our tax forms, called 990s, can be misleading as to what is actually going on. Heres why. When someone makes a multi-year commitment to the Foundation, we have to report it all in the year it was made. In 2005 and 2006 as a result of multi-year commitments, the Foundation reported a surplus of $102,800,000 though we collected nowhere near that. In later years, as the money came in to cover our budgets, we were required to report the spending but not the cash inflow. Also, if someone makes a commitment that he or she later has to withdraw we are required to report that as a loss, though we never had the money in the first place and didnt need it to meet our budget. In other words, for any foundation with a substantial number of multi-year commitments, the 990s will often indicate that we have more or less money than is actually in our accounts.
Like many foundations, we were hit by the economic slowdown in 2007 and the crash in 2008. Thankfully, we had the cash reserves to cover our largest budgets, in our HIV/AIDS, malaria, and health training programs, and we decided to do it because so many lives were at stake.
For 2012, the reported deficit of $8 million is incorrect, and was based on unaudited numbers included in our 2012 annual report. When the audited financials are released, they will show a surplus.
Our Management and Organization
In 2011, after ten years of rapid growth, we decided we needed to review our organization and management practices. As many companies and organizations have done, we engaged an outside firm Simpson Thacher to help us review both our governance approach and internal operating practices.
Essentially, the review said we needed stronger management staff full-time in New York, where most of our U.S.-based staff are located, and a larger, more independent board. We currently have 2,100 staff and volunteers in a total of 36 countries. The review told us that my passion to keep overhead costs down at about a low 8 percent for most of the last decade, rising only to above 11 percent in 2012 as we invested to support our growth had gone on too long and that the Foundation needed better coordination without dampening the entrepreneurial spirit that infuses all our initiatives. In essence, CHAI, CGI, the Alliance for a Healthier Generation, our Haiti project, and other projects were still running too much like stand-alone startups. They were very effective but not sustainable over the long run.
Over the last two years, we have strengthened our Foundations leadership and structure, including Bruce Lindseys transition to chairman of the board and Eric Braverman coming on as CEO. They have established a good working relationship and are proceeding with the rest of our planned changes, including consolidating the Foundations separate New York City offices in one location in midtown to maximize collaboration and efficiency.
In so many ways, CHAIs growth and development have been amazing. It could not have happened without Ira Magaziners hard work, dedication and innovative vision. Starting with the agreements to lower the costs of high quality AIDS drugs, tests, and lab equipment, CHAI has expanded its activities to include lowering costs of malaria medicines, preventing mother-to-child HIV transmission, providing more than one million HIV tests for infants, and reducing the price of reversible contraceptives for women by 55%. It has worked with several governments to train thousands of health care workers. In Rwanda, CHAI has enlisted 19 American medical, nursing, and health management schools to retrain the entire workforce at an overhead cost of just 7%, by far the lowest ever charged by an American NGO. On my recent trip to Africa, I announced a new CHAI initiative to reduce malnutrition among young children. These efforts have attracted strong support from the Gates Foundation and many others, as well as a large number of foreign governments.
Like the rest of the Foundation, CHAIs significant growth required changes in its management and financial structure. Because of its size and range of activities, creating a separate governance structure made sense. CHAI has brought on a new President and CFO as well as improved its reporting procedures to ensure its growth both programmatically and organizationally are keeping pace with its needs.
I continue to serve as chairman of the CHAI board, with Ira Magaziner as vice-chair. CHAI also has two advisory boards with distinguished membership: one to help with its management in more than 30 countries, and one to evaluate and help implement new initiatives.
I am immensely proud of what weve accomplished in the last 12 years, and I want it to continue beyond the time when I can raise the annual budget, and be as personally involved in as many of the initiatives as I have been. Thanks to a large number of committed supporters in the U.S. and around the world, including individuals, large foundations like the Gates Foundation, the Dutch Postcode Lottery and others, foreign governments, and our dedicated staff, were in a good position. We are in the process of appointing a larger, more independent board and we need an endowment, which our family and friends are working to raise.
Our recent trip to Africa renewed my conviction in the importance of our cooperative, problem-solving approach and my energy for our work ahead. I want to thank our supporters and invite other interested people to join us.
read: http://www.clintonfoundation.org/assets/images/blog/2013/08_Aug/An%20Open%20Letter%20from%20Bill%20Clinton.pdf
related:
Unease at Clinton Foundation Over Finances and Ambitions
http://www.nytimes.com/2013/08/14/us/politics/unease-at-clinton-foundation-over-finances-and-ambitions.html?pagewanted=1&_r=0&ref=todayspaper
The Overlapping Clinton World - Graphic
http://www.nytimes.com/interactive/2013/08/14/us/politics/The-Overlapping-Clinton-World.html?ref=politics
The (Renamed) 'Bill, Hillary & Chelsea Clinton Foundation' (DU post)
http://www.democraticunderground.com/10023460800
You can read the executive summary of Simpson Thachers review of the Clinton Foundation at www.clintonfoundation.org.

kentuck
(113,698 posts)it is not possible to monitor such an entity, in my opinion. With the 990 tax forms, with commitments for future years being withdrawn, operating in so many countries around the world, it is an organization ripe for scams and embezzlement. I wonder if there are similar questions about the Carter Foundation?
DURHAM D
(32,899 posts)Would you rather they just shut down? Or not even try?
What organizations have you started? In what country or for what disadvantaged group are you making a difference?
kentuck
(113,698 posts)I have no plans to start any foundation. I'm saying that it sounds almost impossible to monitor.
LuvNewcastle
(17,178 posts)I hear a lot of talk about them being involved in this or that project, but what have they gotten done relative to the donations they've taken in?
An important example is Haiti. Last I heard, they were housing victims of the Haiti earthquake in the same sort of trailers that FEMA housed Katrina victims in. Those trailers were determined to cause formaldehyde poisoning. They had problems with mold accumulation as well. What happened there? Did they take the trailers back? If so, where did they house the people after that?
Haiti was absolutely devastated and lots of donations poured in from around the world. Where is the accounting for all that money, and how far along is Haiti's reconstruction? People seem to have forgotten about the tragedy, and there hasn't been much if any reporting about the progress. I'm skeptical about the success of Haiti's building effort because I think the Clinton Foundation would let the world know about any progress in Haiti if there was indeed anything to mention.
DURHAM D
(32,899 posts)It was the US government.
LuvNewcastle
(17,178 posts)DURHAM D
(32,899 posts)I thought it was USAID.
I guess the CGF just needs to stop trying.
Whisp
(24,096 posts)How's that going, Bill. How's your partner in crime Georgie doing with it too?
Did you get enough of your friends richer for investing in hotels and shit instead of directly helping the people of Haiti like you said you would?
Lets' see that video again where you and Dim Son come riding in like heroes to help the poor people of Haiti after the earthquake. Promising this, promising that, collecting all the applause while you modestly blush at your awesome powers of bullshit.
I'm off to find the original story he is responding to.
tularetom
(23,664 posts)I'm skeptical of all these "foundations" and the fact that Bill Clinton is involved in this one does nothing to make me any less skeptical.
I'd like to see the tax deductions for these things be based on measurable outcomes.
Whisp
(24,096 posts)elehhhhna
(32,076 posts)The reporting requirements on our tax forms, called 990s, can be misleading as to what is actually going on. Heres why. When someone makes a multi-year commitment to the Foundation, we have to report it all in the year it was made. In 2005 and 2006 as a result of multi-year commitments, the Foundation reported a surplus of $102,800,000 though we collected nowhere near that. In later years, as the money came in to cover our budgets, we were required to report the spending but not the cash inflow. Also, if someone makes a commitment that he or she later has to withdraw we are required to report that as a loss, though we never had the money in the first place and didnt need it to meet our budget. In other words, for any foundation with a substantial number of multi-year commitments, the 990s will often indicate that we have more or less money than is actually in our accounts.
WTF? This is ENRON accounting and makes no sense. Does the multi-year commitment entity DEDUCT the whole promised amount in the first year? If so this is lends itself to tax fraud. BIGTIME. Take the deduction then maybe pay them over the years? WHAT COULD POSSIBLY GO WRONG?!!!
sigmasix
(794 posts)There are some people that are so indebted to believing only the worst accusations and hyperbole about the "other" that they are willing to lynch those that supply medical help to the most impoverished. I'm trying to remember the name of the charitable organizations founded by our last 3 republican/fox "news" party presidents.
Shrub is too busy drinking himself into a coma. HW was always too busy giving paid speeches for right wing antiAmerican groups and reagan spent his last years in a haze of deserved emotional and intellectual torture in the form of alzhiemers- a disease he cut funding for.
Carter builds homes for the poor- I'm sure it's really just some sort of evil, nepharious attempt at giving president Obama the ability to spy on every American all the time.
Why do teabaggers hate America?