The Pearson Foundation, Pearson’s nonprofit division has agreed to pay a $7.5 million settlement, to end an inquiry by New York State Attorney General Eric Schneiderman, which alleged that the company used funds to mix business with foundation work.
The company did not admit any wrongdoing, but admitted that they could have been more transparent. Here is more from the company’s blog:
Over the past two years, the Foundation has taken several steps to strengthen its governance, beginning with the addition of independent directors to the board and the adoption of stronger operational systems. Under the settlement, these efforts will be further enhanced by the creation of a three-person audit committee.
“The law on this is clear: Non-profit foundations cannot misuse charitable assets to benefit their affiliated for-profit corporations,” stated Schneiderman in a press release. “Moving forward, funds for Pearson Charitable Foundation will be used exclusively for legitimate charitable purposes, beginning with millions of dollars to help ensure that every public school student has a great teacher in the classroom.”
The money will go to support the work of education nonprofit 100Kin10, and will be placed in a fund managed by the Attorney General. (Via NPR).