Charity Governance

DID LANCE ARMSTRONG DRINK MORE THAN THREE CUPS OF TEA?

DATELINE: May 23, 2011, Chicago

We are not regular viewers of 60 Minutes, but we just so happened to catch last night's broadcast, which raised serious questions as to whether Lance Armstrong, the winner of seven Tour de France races, broke the rules against the use of performance-enhancing  substances and treatments.   His former teammate, Tyler Hamilton, certainly indicated so in what was a gripping interview.  Armstrong has previously denied use of prohibited substances and treatments.  He has denied the allegations leveled against him by Hamilton and another former teammate, Floyd Landis.  As usual, we will give Armstrong the presumption of innocence until there is a final adjudication to the contrary. 

Although Armstrong undoubtedly hopes that these allegations will go away, that is unlikely.  There are reports of a...

A TEXTBOOK CASE FOR EVERY DEVELOPMENT OFFICER AND FUNDRAISER IN THE COUNTRY

DATELINE: January 27, 2011, 2011, Chicago

Robert G. Burton, a major donor to the University of Connecticut, has demanded the return of $3 million that was used to build the Burton Family Football Complex.  After reading a letter from Mr. Burton to Jeffrey Hathaway, the UConn Athletic Director, that was posted on the Connecticut Day’s website and marked “PERSONAL & CONFIDENTIAL,” we can only ask one question:  What would it be like to...

THE SHAPE OF THINGS TO COME: LAWSUIT OVER CLOSURE OF ST. VINCENT’S HOSPITAL

DATELINE:  August 17, 2010, Chicago

Verena Dobnik reported in yesterday’s Washington Post that a group calling itself  The Coalition for a New Village Hospital has filed a lawsuit in New York State court. Former Staff File Suit Against Closed NY Hospital (August 16, 2010).  The suit was filed by Yetta Kurland, an attorney, on behalf of former hospital employees, one-time patients, and area residents.  The Coalition is seeking disclosure of documents under a freedom of information act.  It is demanding a probe and public hearing regarding St Vincent’s finances.  According to Dobnik’s reporting, the complaint questions the salaries of the hospital's top executives and amounts paid to consultants, among other questions it raises regarding the hospital's management.

The filing should be of interest to regulators, nonprofit hospitals, and communities throughout the country.  While we can’t predict how the recently enacted health care reform legislation will play out, it is a good bet, particularly given the already precarious condition of many nonprofit hospitals and other nonprofit health care providers, that this is not...

FIDUCIARIES SHOULDN’T BE AFRAID OF THEIR OWN SHADOWS: THE McCUNE FOUNDATION NEEDS TO BE RESTRUCTURED

DATELINE: April 8, 2008, Chicago.

James Edwards and National City Bank face some serious questions regarding their stewardship of assets held by the McCune Foundation. Bill Zlatos of the Pittsburgh Tribune-Review reported on March 30, 2008 that the foundation had taken a $130 million hit when stock that it held in National City dropped by nearly two-thirds as a consequence of the subprime mortgage debacle. Subprime Mortgage Crisis Wallops Regional Charity. This loss will be felt by the local community, as the foundation curtails its grants in view of the capital losses. The reduction in spending was initially set at about $4 million, but will now be about $1.5 million. What is unclear is whether that reflects the absolute reduction in available income or a change in spending rate. In any event, the $130 million decline in value is a fact of life no matter what impact it has on the current payout.

The problem stems from a lingering power struggle...

JUDGE ELLEN HOBBS LYLE REACHES A DECISION IN THE FISK UNIVERSITY CASE, BUT THE EXTERMINATING ANGEL IS UNLIKELY TO GO AWAY

DATELINE: March 7, 2008, Chicago

Poor Fisk University. Recall that this Nashville-based institution has faced financial difficulties in recent years. The seemingly simple solution would be to sell just two paintings from its valuable Stieglitz Collection of art, which includes works by Georgia O'Keeffe, Picasso, Renoir, and Cezanne, among other notable artists. During the last two years, Fisk has been asking Davidson County Judge Ellen Hobbs Lyle whether it can do just that.

We had hoped that Judge Lyle would put an end the dispute between Fisk and the Georgia O'Keeffe Foundation when she rendered her decision following a trial that began February 19, 2008. As we discovered late last night, that is...