It is the kind of issue that rarely gets played out in public, but the Kansas City Art Institute’s uber-aggressive stand against a couple who pledged $5 million to the school and could not pay it is turning into a PR crisis for all involved.
In 2005, Larry and Kristina Dodge pledged $5 million to the KC Art Institute to help the school construct a $7 million building. The Dodges, who reside in Southern California and have donated millions of dollars to other groups, gave $1 million to the Art Institute and their name was put on the building.
However, when Larry’s bank, American Sterling, ran into financial problems the couple was unable to pay the remaining $4 million pledge. Dodge, who was once worth an estimated $1 billion, was put in severe financial straits. The family has been forced to sell its belongings
Despite the Dodge’s situation, the Art Institute has aggressively gone after them for the full pledge—although other groups that were pledged money by the Dodges—have not taken legal action.
Kristina has noted in the past that, “Though KCAI is acting within legal boundaries, their behavior is mean-spirited and lacks the sort of compassion we would hope they would help foster in their students.”
The Kansas City Star reported last month that the lawyers (unnamed) for the Art Institute are going after Kristina Dodge for $3.3 million.
Bottom Line has received an open letter (LINK BELOW) that Kristina Dodge has written to the Art Institute asking the school to renegotiate the terms of the pledge, saying the couple paid the first million dollars and still wants to pay the remainder of the pledge even after the way KCAI has acted.
“I have been to debtors hearings, been insulted by KCAI lawyers and been publicly treated as if I’m a cheat,” Kristina Dodge told BLC. “The letter is my effort to put all the cards on the table.”
She says her first priority is taking care of her family, but her only out might be to file bankruptcy and KCAI would not get any money.
“Please understand, without a new approach there will be no winners in this debacle,” wrote Dodge.
“I’ll file bankruptcy, KCAI’s public image will further erode, and the school still won’t get any money. Everyone loses.”
AN OPEN LETTER FROM KRISTINA DODGE TO THE KANSAS CITY ART INSTITUTE (click on this link and the next one to see her letter)
GETTING BLOOD…
KCAI use these two words in a sentence: “blood” and “turnip”.
The link to the open letter doesn’t work. Any chance to relink it? Inquiring minds…
Click on the second link and it should open up.
STRANGE CASE
What a strange case. KCAI looks petty. I can’t image that anyone who hears of this case would ever pledge money to it.
But the Dodges, especially Kristina, are pathetic. After all this nonsense, she still wants to honor her obligation?!? She thinks that she can do so whilst struggling to feed three kids? All KCAI has to do is restructure collection? Is this woman who writes a letter — with footnotes! — all there?
The Dodges are not the most sympathetic people. But KCAI doesn’t look good suing a donor, no matter how you slice it. KCAI should spend some money refurbishing its public image.
WEIRD LETTER
This is the weirdest letter. If the Dodges are really broke how do they think they can restructure the payments? Does that mean they have hidden money? It would appear so. I also do not think that this is negative PR for the school. Their lawyers are probably right in line with all the other creditors going after this couple from credit card companies and department stores to mortgage holding banks, and who knows what else. Major donors would understand that.
HELLO POT
Ask a few people in KC what it was like working for Larry Dodge. What rings hollow is his wife saying “their behavior is mean-spirited and lacks the sort of compassion…”. Pot meet kettle.
GOOD LOANS
I just read the letter-the part that is really stretching is where she discusses American Sterling making good loans. Huh, no, they weren’t. And they were not making good business decisions either.
KCAI IS LOSER HERE
Comments by Tamie and Pat feel tone-deaf to me. I don’t find it bizarre that Kristina Dodge would write her letter. She obviously wants them off her back- at the same time, she probably has high expectations for being able to restructure and get back to a place where she can pay her pledge. When you’ve been that rich, you probably make plans to get rich again. Maybe she’ll ask KCAI for 20 years. Maybe 30. That would still be like 80 grand a year (on average)- which is more than I donate yearly. Maybe she’ll ask for income based repayments for the next twenty years…
To me, the loser here is KCAI. Are they going to keep pushing when a woman with four kids says: “just give me some time?” or will they renegotiate terms? The lawsuit is one thing, but this feels over the top.
What is really intriguing to me is that Kris could put this whole thing to bed by filing bankruptcy and yet she doesn’t seem to want to. It’s an odd, twisty, fascinating story. But I have to say, I think the Dodge’s take this round.
best,
LH
PS: Is there really a signed buy-sell agreement? Bottom Line, can you get an image of it?
HIDING ASSETS
If the woman files bankruptcy it forces her to reveal what she’s hiding in assets. Meaning she probably has millions in assets she doesn’t want to reveal. Her letter is really weird.
NOT INVOLVED IN OPERATIONS
I think its bizarre that she would write a letter commenting on the bank’s failure when she wasn’t involved in the day to day operations nor any board meetings where Larry Dodge would discuss his latest scheme to make money. She omits some very important facts-including that the sale to Phoenix was dependant on getting TARP money from the feds. No way that was going to happen.
CALL FOR DOCUMENTATION
Jennifer M: Can you show me some documentation of that or is it speculation? Obviously, that would be fascinating- but right now it feels unsubstantiated.
Tamie: An article in the OC Register details the Dodge’s debtor’s hearing. According to the article they have supplied all passport records, etc.
DOCUMENTATION
What documentation would you need? No minutes of bank board minutes exist that shows she was in attendance or participated in any business decisions.
Here is one story on TARP and Phoenix:
http://www.life-exchange.com/news/articles/phoenix_life_says_it_wont_get_tarp_funds/
MOVING FUNDS?
Where has Kristina Dodge had to give up anything? She hasn’t been in bankruptcy court. She’s avoiding it to keep from having to admit she and her husband moved their remaining funds into accounts in her name.
GENEROUS PEOPLE HAVE TO WORRY
It is a sad day when generous people have to worry about pledging to various organizations for fear they will be taken for all they have, even their own home! I have known Kristina and Larry for years, personally as well as in business. Larry is a straight forward business man, and they both have hearts of gold.
Rather than appreciating the $1,000,000 gift from the Dodges, the art institute directors are shooting themselves in the foot! I am amazed the Dodges would still consider paying them another dime! That speaks volumes to me of their integrity and generous nature.
BANKRUPTCY WON’T HURT
if she is as broke as she says bankruptcy will not hurt her one bit.i did and my credit is in the 800 range. just didnt it overnite
CLOSE FRIENDS WITH DODGES
The Dodges have been close friends of mine for over 10 years. They truly are such graceful people. They are SOOOOOOO Solid with integrity! I had the pleasure of doing a 1/2 marathon with Kristina this past weekend and one of the Dodge’s friends was with us, he is a brilliant intellectual person and he sure hit home when he said that it is our enemies who define us, not our friends. It’s how we act during those times of attack, that really test our true character. And I totally agree with Dodge Lover above who said “It speaks volumes about the Dodges that they would even consider still paying KCAI the balance.
One thing about the Dodges, they always focus integrity, even when they are being wronged. The love they share with me in my ups and downs and the friendship I have with them, they truly are one of the most loving, safe, unconditional friends I have ever had… KCAI have made a big mistake in attacking donors, they only are hurting their future donations. Exceptions should be made in circumstances like this.
DODGES’ MATURITY VS. KCAI
Lets face it, we are all doing the best we can. Everything we do is for a positive intent, the level of positivity is dependent on our level of maturity.
1. Its positive for me
2. Its positive for me and others
3. Its positive for me, others and the world (highest level of maturity)
What level of maturity have the Dodges shown through their action and the KCAI through theirs?
Circumstances beyond the Dodges control have made it impossible to pay KCAI their money - this is nothing the Dodges have ever done before, why would they pledge the money if they did not intend to pay? This is when a shift has to occur. The situation is different, so the action has to change. KCAI, your current action shows very little maturity, let alone grace and compassion.
Personally, I always try to look back at what I could have done differently when faced with a situation like this. It seems that spending the $ before KCAI had it in full, put them in this bind. Next time, if you have no other revenue streams, possibly waiting would be an idea. 1 million is still an amazing pledge, more than most could ever do, but instead of being thankful for what they received, they are putting the Dodges through a court case that costs even more money and grief.
I will spend my life trying to live to the Dodges standard of giving.
MAGNANIMOUS COUPLE
It seems we live in a tragic time when a magnanimous couple like Kristina and Larry Dodge whom have given so willing and to so many deserving causes, are now being unjustly accused of not making good on their financial gift. Surely losing their livelihood, American Sterling Bank and it’s holdings is evidence enough that they do not have the funds at this time. Certainly the $1,000,000 gift received by KCAI was much appreciated at the time. Always a bad idea to “look a gift horse in the mouth”.