from Politico Morning Ed Newsletter | http://politi.co/11CfRu8
19 Nov. 2014 :: PEARSON NONPROFIT'S FOR-PROFIT TIES: The Pearson Charitable Foundation, which has run up sizable debts and depended almost entirely on tens of millions in contributions from its parent publishing giant, announced on Tuesday it will shutter its doors by year's end. Kate James, Pearson's chief corporate affairs officer, said the decision was purely pragmatic. The company thinks it can have more of a social impact by taking charge of its own philanthropic work, she said. But the foundation has had its share of legal troubles. New York Attorney General Eric Schneiderman alleged that it illegally used its charitable funds to develop products and cultivate clients for its corporate parent and the foundation entered into a settlement over the issue late last year. But our own Stephanie Simon finds that the connections between the foundation's charitable work and the corporate bottom line go beyond Schneiderman's allegations.