The recent scrutiny surrounding Travis Kelce’s nonprofit, Eighty-Seven & Running, serves as a stark reminder that celebrity and good intentions are insufficient substitutes for rigorous corporate governance.

https://www.usatoday.com/story/sports/nfl/2026/01/05/travis-kelce-nonprofit-spending-walter-payton-man-of-year/88020017007/

The investigation into the Walter Payton NFL Man of the Year nominee’s foundation revealed that only 41 cents of every dollar raised went to actual charitable work, with significant sums flowing to a management company owned by his personal business managers.

This situation provides a textbook example of the “Founder’s Trap” in the nonprofit sector: a failure to distinguish between the individual’s personal brand and the entity’s independent fiduciary obligations.

The Governance Failures

The core issues identified in the tax filings are not merely administrative errors; they are structural deficiencies that expose the organization to regulatory risk and reputational damage.

• Conflict of Interest: The foundation paid hundreds of thousands of dollars to A&A Management Group, a firm co-founded by Kelce’s personal business managers. When the people cutting the checks are the same people cashing them, independent oversight is impossible.
• Inefficient Capital Deployment: Charity watchdogs expect 70 to 75 cents of every dollar to fund program services. Reporting 41 cents raises immediate red flags regarding the tax-exempt purpose of the entity.
• Lack of Board Independence: The foundation reportedly operated with only two board members and no standard officer roles. A noncompliant, undersized board is a liability, not an asset.
• Vague Financial Reporting: Listing large expenses under “other fees for services” suggests either lazy accounting or an intentional lack of transparency. Neither is acceptable for a tax-exempt entity.

Prevention: Structure Before Status

These failures were entirely preventable with proper foundational legal work. A nonprofit is not a personal wallet; it is a public trust.

• Board Size and Composition: Bylaws should mandate a sufficient board size (of at least 3 seats) with a majority consisting of independent directors who have no financial ties to the founder or their service providers.
• Arm’s Length Contracting: Any contract with a related party (like a business manager) must be vetted by independent counsel and approved by disinterested directors to ensure fair market value.
• Fiscal Sponsorship: For many athletes and high-net-worth individuals, a standalone private foundation is overkill. Partnering with an established community foundation or using a fiscal sponsor often yields higher efficiency and lower liability.

Remediation: Correcting the Course

If a client found themselves in Kelce’s position, the path to remediation requires immediate and decisive action.

1. Forensic Audit: Engage an independent accounting firm to review all past expenditures and reclassify them correctly. If the “management fees” were actually program expenses (as Kelce’s team claims), the tax returns must be amended immediately.
2. Board Expansion: Recruit qualified, independent directors to dilute the influence of insiders and establish a true governance check.
3. Policy Implementation: Adopt rigorous conflict of interest policies and expense reimbursement guidelines.
4. Operational Severance: Clearly separate the operations, staff, and assets of the nonprofit from the founder’s personal business interests.

PWL Service Offerings

At Private Wealth Law, Inc., we specialize in constructing the invisible architecture that protects high-value assets and reputations. We do not view governance as a box to check, but as a shield against exactly this type of public scrutiny.

• Governance and Compliance: Casey C. Decker, Esq. leads our Governance division. He specializes in drafting custom bylaws and conflict policies that prevent “incestuous” management structures before they begin.
• Trust and Entity Structure: Movses H. Shakarian, Esq. is an expert in creating the appropriate vehicles for philanthropy, ensuring that the tax structure aligns with the client’s actual goals, whether that is a private foundation or a donor-advised fund.
• Foundational Strategy: Glenn H. Truitt, Esq. advises on the “why” and “how” of these entities, ensuring that the legal reality matches the public narrative.

A 41 percent efficiency rating is a failing grade in any league. Your philanthropic legacy deserves better defense than that.