“Give a man a reputation as an early riser,” said Mark Twain, “and he can sleep ‘til noon.” Hillary Clinton finds herself in the opposite situation: She has a reputation for venality — the merits of which we can set aside momentarily — that forces her to a higher ethical standard. Her inadequate response to the conflicts of interest inherent in the Clinton Foundation show that she is not meeting that standard, and has not fully grasped the severity of her reputational problem.
The purpose of the Clinton Foundation is to leverage Clinton fame into charitable donations. That purpose has important positive effects — shaking loose donations for AIDS prevention and training African farmers and other worthy causes. But it also has the unavoidable side effect of giving rich people a way to curry favor with a powerful elected official. The Clinton Foundation has announced that, should Hillary Clinton win, it will stop accepting donations from corporations or foreign entities, which mitigates the problem without dispelling it altogether. Wealthy individuals, or corporations passing their money through foundations, can still use Clinton Foundation grants as chits.
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