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How Marcus Rashford’s Free Meal Campaign Highlights The Evolving Landscape Of Athlete Philanthropy

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On October 28th, 22-year old Marcus Rashford scored a hat-trick in Manchester United's 5-0 Champions League win over RB Leipzig. Rashford's performance came on the same day that his petition calling for the UK government to fund a free meal program for students from poor families reached over a million signatures. A week earlier, the government failed to extend an existing program through school holidays until Easter 2021.

After the government's decision, Rashford's social-media campaign attracted support from across the country. Businesses offered to feed children during the holidays. Local councils from across the political spectrum committed to provide meal vouchers. Premier League clubs and players stepped up to donate as well. 

Rashford has tackled this issue before. In June, the UK government decided not to extend a meal voucher program for students during summer holidays. Following the decision, Rashford led a public campaign asking lawmakers to reconsider, citing the economic impact of the coronavirus on many families. After days of public pressure, the government changed course and created a Covid summer food fund to feed children from low-income families during the summer break. Rashford was ultimately honored by Queen Elizabeth II for his efforts. 

Philanthropy and activism in sports is at an all-time high in 2020. In the US, the combination of ongoing national protests against racial injustice and the November general elections has initiated unprecedented levels of athlete philanthropy and activism. Athletes of all backgrounds and ranging notoriety have donated money to, and raised awareness for, racial justice causes and initiatives to fight voter suppression in the US.  Michael Jordan, and the Jordan Brand, jointly donated $100 million over 10 years to groups that pursue racial equality and social justice. In June, the NFL pledged $250 million over 10 years to the Players Coalition, a 501(c)(3) charity and 501(c)(4) advocacy organization focused on social justice and racial equality. The Players Coalition was founded by New Orleans Saints safety Malcolm Jenkins and former NFL wide receiver Anquan Boldin. A number of prominent athletes and entertainers, including LeBron James, Damian Lillard, Patrick Mahomes, and Kevin Hart, formed More Than A Vote, an organization focused on battling voter suppression. The list of athlete formed organizations and initiatives goes on.

In recent years, athletes have successfully leveraged public platforms to raise awareness for causes of choice. Public awareness builds strength in numbers, and large campaigns have proved useful to hold decision-makers accountable, draw-in necessary stakeholders and create change. These initiatives are simultaneously effective and low risk, in comparison to more traditional forms of athlete philanthropy and activism.  

Generally, it is common for athletes' philanthropic efforts to include the formation of individual charitable foundations. Charitable foundations are attractive because they provide maximum control over charitable giving and active involvement by the founding athlete. Foundations can target specific causes, build awareness, develop long-term charitable missions, and create connections to particular communities. They are also useful for tax planning purposes related to an athlete's own charitable giving. Many well-known athletes, including Roger Federer, Maria Sharapova, Tom Brady, and JJ Watt, have foundations. 

However, foundations do require a level of regulatory compliance and organizational formality. Foundations must also raise funds to support their cause of choice and cover operational costs, which is increasingly challenging during uncertain economic times. Foundations that are not properly run, or engage in certain prohibited activities, can face penalties or even revocation of their tax-exempt status. Foundation mismanagement can cause reputational issues for athletes and, in some extreme cases, lead to personal liability. However, if the founder puts in place dedicated and competent officers and directors, supported by experienced advisers, the foundation approach can provide a great vehicle for an athlete's long-term philanthropic vision.     

Foundations are not the only alternative. There are other methods to accomplish philanthropic goals. For example, donor advised funds allow donors to make irrevocable gifts to charity and make recommendations about grant recipients from time to time. Like foundations, donor advised funds are useful for personal tax planning purposes. They also remove the personal responsibility, time commitment, and cost involved with running a foundation. They can also be more private options for those concerned with the disclosure requirements associated with running many foundations. Community foundations provide another way to focus an athlete's giving. Usually focused around a particular location, most community foundations provide donor advised fund options that focus on a particular locality in which the foundation will have deep relationships with local non-profits.  

Rashford's efforts are an example of the impact and reach that social-media led, cause-driven campaigns can have. However, as athletes and other public personalities seek longer-term philanthropic solutions centered on specific causes or communities, traditional forms of philanthropy will remain an ideal option.  In the interim, as individuals explore their philanthropic ambitions, the ability to publicly leverage platforms to rally support around a cause, is an extremely useful and effective option.

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