Morality Clause / Exit Clause

Monica Jordan

We fund many organizations: charities, community groups, even for-profit organizations which may fill an unmet need. Our purpose is to support mental wellness, including programming for vulnerable persons (disadvantaged groups, people healing from trauma, recovering from substance misuse, people living with mental illness, etc).

Recently, a news story emerged regarding the husband of the founder of an organization that serves exploited youth (we're funding programming at the org). In this case, the investigation doesn't relate to individual's connection to the org we fund, however, a community referral partner of the organization has publicly stated they have removed this org from their referral list.

This made me realize that we don't have a great exit clause. The term morality clause is probably overstating it, but we want to be able to part ways with a funded organization with cause. It could be harming vulnerable people, financial issues, or other issue that doesn't align with our values.

Is this an issue your organization has faced? What statement/clauses are you using to enable your org to cancel funding? Are you taking other steps in your granting process? Feel free to message me directly if you don't want to post here