Reputation Laundering
Kleptocrats gaining influence through philanthropy
Russia’s illegal and unprovoked invasion of Ukraine has brought new scrutiny to the influence of Russian and other foreign oligarchs in the United States and Europe.
In 2020, ACDC began building a database of donations by post-Soviet oligarchs from post-Soviet countries to leading U.S. nonprofit institutions, spanning education, healthcare, culture and religion. Such donations can be an instrument for promoting the individuals’ own political agenda, facilitating access to decision-makers, polishing tarnished reputations and helping push back against scrutiny and negative publicity.
Since we first published some of our findings in Foreign Policy, more than a dozen media outlets have cited our data in their reporting.
Transparency measures to counter reputation laundering through philanthropy should not create administrative obstacles to charitable giving, but instead require the government to collect information about large foreign donations, as has been the case for higher education since the 1960s.
Recommendations to U.S. policymakers
- For all registered nonprofit institutions, collect and make available information about contracts with and gifts from a foreign source that, alone or combined, are valued at $50,000 or more in a calendar year.
Recommendations to nonprofit institutions
- Ensure that development teams are aware of how donations and associated access may be instrumentalized for malign purposes.
- Conduct the fullest due diligence on new donors possible, bearing in mind that new information may have come to light since previous donations to other institutions.
- Respond proactively when new information about donors comes to light. This can include severing ties, reviewing due diligence practices and contributing to compensation of victims.
Reporting utilizing our data analysis
- Becker Hospital Review, March 7, 2022: Mayo Clinic among organizations scrutinized for Russian donations
- Bloomberg, June 3, 2022: ‘Most Clever Oligarch’ Severed His $37 Billion Fortune From Russian Roots
- Bloomberg, March 16, 2022: Richest Russian Built NYC Power Over Decades and Lost It in Weeks
- Bloomberg, March 11, 2022: How Artists and Museums Are Responding to Russia’s War in Ukraine
- CNN, May 11, 2022: ‘It’s shameful’: Russian-linked billionaires have given enormous sums of money to the West’s leading educational and cultural institutions
- Forbes, May 16 2022: The Hidden Power Of ESG – Part 1 Of 3-Part Series: Interview With The Former Finance Minister Of Ukraine
- Forbes, May 5, 2022: How Russia’s Wealthiest Oligarch Is Expanding His Financial Empire Free From Sanctions
- Forbes, April 12, 2022: Russia’s Richest Oligarch Bails Out Société Générale In “Fantastic Deal” For Himself
- Hyperallergic, April 5, 2022: US Institutions Received Millions From Russian Oligarchs
- Inequality.org, March 9, 2022: Russian Oligarchs Funnel Money to U.S. Charities
- NBC News / Meet the Press, March 13, 2022: To sanction Russian oligarchs, the first step is finding their money
- New York Magazine, April 1, 2022: How Russia’s Oligarchs Laundered Their Reputations in the West
- Philadelphia Inquirer, March 23, 2022: Philly’s Wilma Theater is returning a donation from a group close to Russian oligarch Roman Abramovich
- Philanthropy Masterminds, May 5, 2022: From Russia through Philanthropy Oligarch Donations and Reputation Laundering
- The Chronicle of Philanthropy, March 15, 2022: Russian Oligarchs’ Giving Has Lessons for Nonprofits
- Washington Post, March 7, 2022: Russian oligarchs have donated millions to U.S. charities, museums and universities, analysis shows
Investigations
America’s Cultural Institutions Are Quietly Fueled by Russian Corruption
New data exposes the long reach of foreign oligarchs in the world of philanthropy.
Members working on this problem
