The cancer charity Livestrong could face a $5-million to $10-million loss in donations as investigators probe doping allegations against its founder, seven-time Tour de France winner Lance Armstrong, Bloomberg writes.
Based on the experience of other charities facing scandals, Livestrong could lose 10 percent to 20 percent of its contributions if the allegations are proven, said Doug White, academic director of the Heyman Center for Philanthropy & Fundraising at New York University. Livestrong may be more vulnerable than most such groups because Mr. Armstrong “is that charity,” Mr. White said.
The Austin organization, the country’s largest charity founded by an athlete, collected $48.4-million in donations last year after taking in $50.4-million in 2009.
Mr. Armstrong, a cancer survivor, has continually denied accusations, raised most recently by his former cycling teammate Tyler Hamilton on “60 Minutes” last month, that he used performance-enhancing substances. A source familiar with the matter told Bloomberg that U.S. prosecutors in Los Angeles are investigating the allegations.
Read a Chronicle of Philanthropy opinion column on the charity impact of the Armstrong investigation.