76-09-A7

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Foundations

Transcript We are a charitable people. So ingrained in our American culture is the voluntary support of good works, that we exempt from the income tax gifts to charitable and educational institutions. This basic generosity has led to the creation of great multimillion dollar foundations staffed by eminent scholars and researchers. Their endowment is invested in stocks, real estate and bonds, in short, American industry. The income from which is tax free and finances the foundations contributions to educational research, public services and good works in general. Whatever the reason, many (if not most) of the great foundations have more and more tended to believe in big government. Their scholarly works explore more ways for government to busy itself in the peoples' affairs. Often, they present studies to show how much more government we can afford, urging the people to recognize that government is a good buy. Of late, their pro-government and anti-marketplace bias has caused some to question their continued right to tax-exempt status. The case made is pretty legitimate. We have never recognized the influencing of legislation as deserving of favored tax treatment. Naturally, those who bring this up are denounced as quote, "right wing", unquote. Or something similar, "reactionary, unprogressive, neanderthal, etc." One of the greatest of the foundations was set up by the heirs of the original Henry Ford who launched the great motor company which bears his name. The Ford Foundation, with virtually unlimited resources, subsidizes battalions of intellectuals who devote their energies to whittling away at the economic system which created and supports their source of affluence -- the foundation itself. Recently, after thirty-three years of service, Henry Ford II resigned as a trustee of the foundation. Mr. Ford has tended to be quite liberal. More often than not, he supports Democratic candidates for public office. All of which makes his farewell address to the Foundation -- which bears his name -- more than a little surprising. "The Foundation exists and thrives on the fruits of our economic system", he said. "The dividends of competitive enterprise make it all possible. A significant portion of the substance created by United States business enables the Foundation, and like institutions, to carry on their work. In effect, the Foundation is a creature of capitalism -- a statement that I'm sure, would be shocking to many professional staff people in the field of philanthropy. It is hard to discern recognition of this fact in anything the Foundation does. It is even more difficult to find an understanding of this in many of the institutions, particularly the universities that are the beneficiaries of the Foundation's grant programs." So said Henry Ford the Second. Plainly, Mr. Ford seemed to be suggesting that the largest tax-free foundation in the nation was using tax-free money to undermine the economic system without which it couldn't exist. An official of the Carnegie Foundation was outraged. "Is that what the Ford Foundation is set up for -- to promote free enterprise?", he asked. Funny -- he never questioned it's right to destroy free enterprise. This is Ronald Reagan. Thanks for listening.		Details Batch Number 76-09-A7 Production Date 02/22/1977 Book/Page RPtV-116 Audio Youtube? No
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