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Fannie, Freddie Redirect Charity Funding

Some confused reporting from the Washington Post:

Fannie, Freddie Scale Back Gifts to Charity

By Terri Rupar
Monday, May 18, 2009

Fannie Mae and Freddie Mac reduced charitable giving by more than 40 percent from 2006 to 2008 and focused it more sharply on housing-related issues, leaving some local nonprofits without a major source of funding.

The mortgage giants’ charitable giving is projected to drop slightly again this year, and the longer-term future of the companies — and their donations — is still unclear.

District-based Fannie Mae and McLean-based Freddie Mac were veering toward collapse when they were taken over by the government in September in a bid to stabilize the home-loan market. The companies have long been the two biggest donors to Washington area charities, and the takeover sent worries throughout the local nonprofit community.

Fannie Mae and the Freddie Mac Foundation together gave more than $47 million last year, down from $83.5 million in 2006, the year before Fannie shut down its foundation and moved its giving in-house. The Freddie Mac Foundation is still funded by an endowment. In the first quarter of this year, the two companies gave out $4.5 million.

Fannie Mae said it expects that its giving in 2009 will be about the same as last year, while Freddie estimates that its contributions to foundations will drop to $11.1 million from $15.3 million

The future of Fannie and Freddie’s charitable efforts will have to be worked out with their government regulator, the Federal Housing Finance Agency.

Fannie Mae spokesman Brian Faith said the mortgage finance giant is committed to continuing to support local charities. The company’s charitable mission has been aligned with its corporate mission and focuses primarily on foreclosure prevention, he said.

While nonprofits hope the money keeps flowing, they’re reaching out to other corporate donors as well as individuals in case it doesn’t.,,

Of course the headline does not truly reflect the story.

In fact, Fannie and Freddie are not so much ‘slashing’ their charity funding this year as they re-directing it.

But why are these (quasi) government bureaucracies giving taxpayer money to any charities in the first place?

The companies have long been the two biggest donors to Washington area charities, and the takeover sent worries throughout the local nonprofit community.

Isn’t it bad enough that they have been greasing the palms of politicians for years Now they have to buy these same pols votes with our money?

Speaking of which:

The company’s charitable mission has been aligned with its corporate mission and focuses primarily on foreclosure prevention.

In other words, they will now use taxpayer dollars to give the ‘underprivileged’ (that is, ACORN and other Democrat constituents) free mortgages.

This article was posted by Steve on Monday, May 18th, 2009. Comments are currently closed.

5 Responses to “Fannie, Freddie Redirect Charity Funding”

  1. Right of the People says:

    Looking at the picture of Fannie Mae’s HQ, I thought it was a picture of an English estate or at least Donald Trump’s summer home. No money wasted on frivolous this here. Steve, I guess it depends on what your definition of a “charitable cause” is. Just like Slick Willie’s definition of sex was. The natives are getting restless.

    • catie says:

      Yeah, it sort of resembles the Governor’s Palace in Colonial Williamsburg with the out buildings attached. It sure is a beautiful place though isn’t it?

  2. proreason says:

    Well, I think the charity angle is significant by itself.

    It’s another segment of our culture that has recently come under attack by the power-engorged Leftists.

    Charities limit people’s dependance on government because they step in and help people get over rough patches in their lives…..displacing the all-seeing government from exercising it’s right to control everybody’s life so as to keep everybody in permanent servitude.

    So Charities and charitable giving have become a huge problem that must be stamped out.

  3. pdsand says:

    That’s like the way inbev was able to buy anheiser-busch was because they promised to keep donating.

  4. Liberals Demise says:

    I knew we couldn’t get through this article without the mention of Acorn and its’ greedy paws out!

    WHEN IS ENOUGH GONNA BE ENOUGH?
    OOOOOOO ……… I feel a RBTINI fit acomin’ !!
    (pardon me folks ………. )


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