Kobe Bryant Defunct Charity Committed Five Deadly Don'ts; According to MVPhilanthropy, Charity's Demise Result of Common Mistakes.

Business Editors

BOSTON--(BUSINESS WIRE)--Aug. 20, 2003

That the Kobe Bryant Foundation launched and closed in under five years -- as recently reported on thesmokinggun.com -- did not come as a surprise to athlete philanthropy expert E. Hadley Morash, the Executive Director of MVPhilanthropy, a not-for-profit organization that consults with athletes on their charitable giving strategies. Morash's review of the foundation's records reveals that the charity committed what she refers to as "five deadly don'ts."

-- 1. Kobe didn't give grants to support the mission. According

to its Form 990 (the tax return for organizations exempt from

income taxes), the foundation's mission was the "sponsorship

of programs to benefit children and prevent child abuse." Yet,

in 2001, the Foundation gave only one grant of $10,000 to the

9-11 Fire Fighters Fund.

"If Kobe wanted to give to that Fund, he should have given personally, not from the money of his foundation," says Morash, "especially if the foundation's money was raised from the public with the understanding that it would support the cause of child abuse."

-- 2. Kobe didn't give out enough money per year, and the grants

that were given over the five-year period were unfocused.

"While $300,000 to different charities seems like a lot, it's not when you realize that it was given over five years. $60,000 per year in charitable contributions by one of the world's best paid athletes is simply not enough to make a real difference," says Morash. "In addition, the grants were not given in a focused manner, so the likelihood is such that the charity's mission of preventing child abuse was not accomplished."

-- 3. Kobe didn't have experienced management running his

foundation.

Kobe's mother and sister were running the foundation for him, but according to Morash, "Unless his mother and sister have a degree in foundation management or other practical skills in the foundation sector, they shouldn't have control over the foundation. Hire a professional - the return on investment will be worth it."

-- 4. Kobe didn't realize how time consuming running a foundation

is.

"It's evident from a review of the foundation filings that as Kobe's fame grew and he got married, the foundation's accomplishments dwindled," says Morash. "Too many athletes start foundations only to be sick of being involved with them a few years later. I counsel athletes that if you just want to give for a year or two, give from your own pocket and get the tax break, don't waste money by going through the expense of starting a foundation."

-- 5. Kobe didn't realize the public would be watching.

Concludes Morash: "As a celebrity, people are watching your every move. If your foundation closes down, people are going to notice. Because of this foundation's failure, I believe that more foundations by Los Angeles-based athletes will be scrutinized in the near future. Their books need to be in order or they may be the next 'Featured Document' on thesmokinggun.com."

Based in Boston, Massachusetts, MVPhilanthropy is a not-for-profit organization that works with professional athletes and the charities founded in their name to help them engage in high-impact giving. In November, MVPhilanthropy is hosting a two-day conference called "Driving Change: The First Annual Athlete Foundation Conference." Conference attendees will get an opportunity to network with other foundations, brainstorm about new approaches, and learn more about grant making, fundraising, and investments. Featured speakers include presidents from the Andre Agassi Foundation, the Jackie Robinson Foundation, and the Women's Sports Foundation.

According to Morash, MVP differentiates itself from other athlete philanthropy consulting services in two important ways: One, MVP is a resource and technical assistance center. Unlike some other organizations, MVP does not maintain ownership of the charities that they help their clients start and/or manage. And two, MVP works exclusively with athletes giving MVP a specialized knowledge base of the unique issues facing athlete charities.

For more information about MVPhilanthropy, log onto www.MVPhilanthropy.org or call 617.263.1740.