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The Artful Manager

Andrew Taylor on the business of arts & culture

How much do you want the money?

February 28, 2005 by Andrew Taylor

A strange story out of Lodi, Wisconsin, raises a question of how flexible a nonprofit should be when faced with prospective donor demands. Such is the case of Raymond Brown and the Lodi Valley Historical Society, where $500,000 awaits the organization if they make one minor change…their entire board. From the AP Wire story:


When Raymond Brown, of Lodi, died last March 9, he left the balance of his estate to the Lodi Valley Historical Society, with one caveat: all the board’s directors must resign within one year of his death.

”His (Brown’s) big beef with the board was that they (board members) don’t do a darn thing,” said Brown’s friend, Don Thistle. ”They have no mission, no purpose.”

With the one-year anniversary of Brown’s death fast approaching, members of the board have decided to forgo the contribution, and to stay in their posts. Although, a few in the community are urging them to reconsider. The decision must have been difficult, since the organization is tiny to begin with (they haven’t filed IRS tax forms, which suggests their total annual income is below $25,000).

This is just an extreme example of the draw and power of major gifts — whether the donor is living or dead. More often, the gift will come with a specific project or purpose attached, that may or may not serve the longterm mission and health of the organization. Other times, the demands for recognition or public display prove too invasive or too restrictive for the organization.

Back in 2001, for example, our local symphony turned down a $1 million gift toward their concert organ, because the donor demanded specific text on a plaque on the organ, as well as in all programs in perpetuity (story available only in a Google cache).

And even when the demands and restrictions aren’t so obvious, the subtle give and take between donor and mission can lead both off track. It’s a delicate dance, to be sure, but one that requires a strong and confident lead.

(Thanks to eagle-eye Pete for sending this news pointer along!)

UPDATE ON 3/3/05: After much wrangling and legalizing, the entire board did eventually decide to resign in order for the organization to receive the bequest.

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About Andrew Taylor

Andrew Taylor is a faculty member in American University's Arts Management Program in Washington, DC. [Read More …]

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