Local nonprofit organizations are optimistic that a restructuring at mortgage lender Fannie Mae, which eliminated its charitable foundation and folded its giving efforts under the company at large, will still provide the same kind of support toward efforts to improve housing and eliminate homelessness.
Fannie Mae announced last Friday that its foundation will cease operations April 30. The company’s philanthropy will be done under the new internal Office of Community and Charitable Giving.
The Fannie Mae foundation, which has given more than $100 million to organizations throughout D.C., was the top private source for philanthropy in the region in 2005.
When announcing the reorganization, it pledged that it would maintain giving levels at least as high as the foundation’s.
The pledge was welcome news for the Non-Profit Roundtable of Greater Washington.
“I’m optimistic,” said Chuck Bean, the group’s executive director. “My hope is bolstered by their announcement that said the transition will include significant investments in Washington, and that many of its existing initiatives will continue, like the Help the Homeless walk-a-thon.”
The mortgage lender on Friday also announced a string of new donations in the D.C. area, including $10 million for education improvements in the city, $1 million for planning and development in distressed city neighborhoods, and an additional $500,00 toward homelessness on top of its Help the Homeless initiative.
The Washington Regional Association of Grantmakers is pleased with the stated priorities of the new office — education, affordable housing and fighting homelessness — and plans to work with them on those focus areas, Tamara Lucas Copeland said Friday.
“By combining the foundation and the corporate giving program, they’re going to maximize their resources and their giving potential.”
In a statement, Sen. Chuck Grassley, R-Iowa, said he would wait to see whether the move would mean more disclosure for the organization.
Grassley’s Committee on Finance is looking into whether Fannie Mae engaged in inappropriate lobbying practices.
“This could be a positive step toward more transparency and accountability from Fannie Mae for its charitable activities,” Grassley said. “I’ll follow this move to see if that’s the case. But … there are still very serious questions to be answered about organizations using their non-profit status to launder inappropriate activity.”
A Senate Finance Committee staffer said that the committee thinks that the new move may result in Fannie Mae narrowing the focus of its giving and not venture into areas outside its mission, but added that they still are relying on Fannie Mae’s word that the organization will fully disclose its giving practices.
