Charity Governance

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...