Business and Personal Ethicsbusiness ethicsCharitable Contributions

Celebrity Ethics: Is Lady Gaga in Deep Goo-goo?

By March 26, 2014 No Comments

This blog is not to criticize Lady Gaga or her singing style or performance art. Her work may not be my cup of tea, but then again, I am not her target audience. And that’s all right. It’s a generational thing and it’s the way of the world.

            Lady GagaBut when she has started to dabble in the realm of questionable ethics, she ventured into “my” territory. I think we have the right to ask some hard questions.

            On March 19, 2014, Judy Martell writing for Bankrate.com brought some interesting facts to light on the celebrity’s foundation named: “Born This Way.” According to Ms. Martell, the foundation’s mission statement reads that it:

“Foster(s) a more accepting society, where differences are embraced and individuality is celebrated… (and that it is)… “Dedicated to creating a safe community that helps connect young people with the skills and opportunities they need to build a kinder, braver world.”

Well, that is one heck of a sentiment.  It could apply to most anything in terms of publicist double-speak, but even I will concede that it noble enough to pull at the heart-strings. However, it is when Ms. Gaga and her entourage start playing in the federal tax sandbox that the roadshow hits a serious snag.

            The Born This Way Foundation is funded by Lady Gaga’s adoring fans. The person heading the organization is Lady Gaga’s mother. In 2012, the foundation had to report on its finances. Their expenses amounted to $1.85 million. Do you know how much the charity donated to building a kinder, braver world? $5,000!

            The expenses included more than $400,000 in legal fees, about $73,000 in salaries plus $150,000 in consulting fees and let’s not forget $808,000 spent on “other.”

            As a person who has had a long standing interest in finance and financial transactions, I can only agree with the critics of this “foundation” who seem to believe that something is not quite right.

            As might be expected, the Gaga organization has defended itself against its critics. On March 24, 2014, the Huffington Post carried a crafted statement which reads in part:

            Lady Gaga founded Born This Way Foundation to foster a more accepting society for our young people. She covered all of the start-up costs for the organization with her own money and uses her celebrity to constantly advocate on behalf of tolerance, individualism and kindness.

            That is all well and good, but the statement raises more questions than answers. For example, what does the organization actually do? How much of the foundation start up costs became tax deductions for the performer’s company? Other than being part of the publicity machine, what specific activities will the organization fund?

For example, when I donate $10 to my local, no-kill animal shelter, most of the money will go to veterinary and dog food expenses.

To me, the animal shelter is a great example of advocating on behalf of tolerance, individualism and kindness.My local animal shelter is transparent. That is, I know where my money is going and exactly how it will help.

It is good to question

In The Huffington Post Gaga Defensereferred to above, the organization proudly stated that they had achieved more than 300,000 media impressions in 2012. This is publicity right? The organization was publicizing its important mission, but we have little idea of what the mission may be! It comes full circle – and that is ethically troubling.

My local animal shelter might point to the fact that hundreds of wagging dogs were united with new families. What a wonderful thing!

Everyone who has donated to the Born This Way organization has the right to ask one simple question: What have you specifically done with my money?If my money just went to Legal, PR, publicity and consulting, then I start to suspect something is wrong.

It is good to question and it is important that charitable organizations answer in straight, no-spin responses. Anything less than that is Goo-goo.

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