facebook-pixel

Russell Fischer: Measure the true cost of foundation funding

Who pays for environmental fellowship? And where did that money come from?

(Francisco Kjolseth | The Salt Lake Tribune) Students at the University of Utah campus, August 27, 2020.

While browsing local graduate school programs I stumbled on the environmental humanities master’s degree offered by the University of Utah, which looks like a great program. It has just welcomed its first “practitioner in residence,” a local environmental leader whom the program pays $25,000 to participate for a semester.

Likely in a schadenfreude-esque attempt to make myself feel better for not being an environmental leader, the following questions entered my mind: Who is paying for this fellowship, and where did the funds come from?

The environmental humanities program transparently displays the source of the program’s funding: a $600,000 grant from The Andrew W. Mellon Foundation. It doesn’t take much research to conclude that the Andrew W. Mellon Foundation’s grant funds were generated at tremendous societal cost.

Criticizing the funding source of one of the few pro-environmental institutions in Utah seems counterproductive. Shouldn’t those of us who are concerned about the environment look away?

No. The most progressive approach is to take a true-cost accounting of bad money being used for good things, and then make an informed decision. Otherwise, it’s possible that the impact generated by the grant recipient doesn’t offset the societal cost of the grant, in which case it would have been better not to have taken the money.

Accepting grant money indiscriminately incentivizes extractors and exploiters to carry on until our planet turns into Venus, as long as their foundations occasionally write checks to good causes. In what follows, I’ll attempt a high-level accounting of the true costs of the environmental humanities grant to demonstrate the type of analysis necessary to prevent incentivizing the Venus scenario above.

The first societal cost of the environmental humanities grant is the environmental and labor exploitation endured to create the actual grant funds. Mellon created his fortune — the money used for the foundation’s principal donation — by using his bank’s customers’ deposits to finance the coal, oil and chemical industries, among others.

Like all foundations, The Andrew W. Mellon Foundation perpetuates itself by investing the principal donation and then redeeming investments as needed to make grants. Half of The Andrew W. Mellon Foundation’s $6 billion endowment is invested in private equity, an industry that finds it acceptable to withhold living wages, adequate health benefits and routine maintenance on equipment (endangering labor) from portfolio companies, as well as extorting municipalities for tax breaks. (Some 62% of Utahns also find this profession acceptable, as that’s the share of the vote won by Sen. Mitt Romney.)

The second societal cost of the environmental humanities grant is the trade-off created every time a private foundation allocates funds rather than a public institution. Grant funds that would have been deployed by democratically elected power are redirected at the arbitrary judgment of the foundation’s wealthy patrons and staff.

Some would argue that government fund allocation is inefficient and ineffective and that private allocation is more rigorous and impactful, which may be true at times. But this critique doesn’t escape the fact that the causes supported by private foundations are not democratically chosen. At their best, foundations represent unchecked and unaccountable power underwriting good but arbitrary causes. At their worst, they represent ideological money laundering machines.

Grant recipients should account for the societal cost of a grant in their decision to accept and allocate grant money. Only the environmental humanities program would know whether it fully accounted for the societal cost of this grant, but it includes a thoughtful crowd, so I’m hopeful.

If and when grant-seeking institutions pass this hurdle, my thought is, take as much as you can get. Just spend it wisely.

Russell Fischer

Russell Fischer, Springville, studied philosophy, enjoys gardening and is an aspiring super-centenarian.
Comments:  (0)