It’s a tough decision, but the Kansas City Art Institute is coming across as ruthless as it goes after a wealthy Southern California couple that cannot fulfill a pledge to donate $5 million to the school.
In 2005, Larry and Kristina Dodge pledged $5 million to the Kansas City Art Institute to help the school build a $7 million building.
However, the Dodges, who have donated huge sums of money to other organizations, are now in dire financial straits. Thanks to the Art Institute’s actions the couple will likely have to file for bankruptcy.
The Dodges gave $1 million of their pledge to the Art Institute and the school went ahead and built the facility. Now the couple has fallen on hard times and are in the process of losing their home and will likely have to file for bankruptcy.
The Art Institute is not sympathetic.
“The institute ‘built a building based on a contract that the college had with the Dodges, and we still expect them to live up to the contract,’ the school said in a brief response in an Associated Press story. “That’s why we’re leaving the name on the building.”
Scott Simon, former KMBZ newsman, feels the Art Institute is partially responsible for the mess.
“Dear Kansas City Art Institute: In the future, build something AFTER you get the money. Who’s consulting you, the Federal Government?” wrote Simon on Facebook.
It is difficult to determine what exactly the Art Institute hopes to gain by bankrupting the couple.
It certainly is not a move that is wise from a public relations standpoint. Potential future donors might decide to not open their pocketbooks to a place that shows such little compassion.
“This is an organization that is ruthless,” a sobbing Kristina Dodge told the Kansas City Star. “Completely ruthless and heartless.”
At least one fundraising expert says the action of KCAI is a deterrent to future donors.
“It doesn’t happen much, and when it does happen the institutions tend to do their utmost to keep it under wraps because this can only be bad for them, both showing that they had a pledge that was not fulfilled and that they were willing to take a donor to court,” said Andrew Mytelka, an editor at The Chronicle of Philanthropy.
“I think it’s a deterrent to future donors.”
The site ARTFIXdaily reported (11/25) that art institute, located across from the Nelson-Atkins Museum, “contends breach of contract and unjust enrichment-based on the Dodges’ name being publicized on the side of the building.
“Known as major philanthropists in California, the Dodges have given tens of millions of dollars to Chapman University’s Film School, the Orange County Performing Arts Center, the Ocean Institute in Dana Point and Hearst Castle.”
HORRIBLE PR MOVE
Suing donors? A horrible PR move. To me, the most interesting part of this story is that (reportedly) the Dodges do not want their name on the building because they do not want to be associated with the Art Institute.
NOT A BATTLE NEEDED TO BE FOUGHT
Sometimes there are battles that need to be fought. This is NOT one of them.
I agree 100% with Scott Simon.
Now that have some bad PR to deal with, lawyer fees and are suing people with no money.
Good move!
Who wins? The lawyers!
‘DID CHECK CLEAR?’
John, thanks for quoting me.
The Art Institute needs to hire John and Bottomline.
Ironic, but a standard question I asked often was, “How are you going to pay for it?”
From now on, the question to the Art Institute should be, “Did the check clear?”
RENAISSANCE FESTIVAL
I haven’t been to the Renaissance Festival for years, but I guess I’d better plan on going again since the Art Institute apparently desperately needs the money (not that I don’t need mine). Well, at least they’ve now got an “enticing mermaid” to tempt me with.
DUDE LIED AND GOT BUSTED
The dude lied and got busted. Screw him. Bankruptcy it is. KCAI won’t get any money, but
““This is an organization that is ruthless,” a sobbing Kristina Dodge told the Kansas City Star. “Completely ruthless and heartless.””
Yeah, all the money your hubby lied about was ruthless and heartless.
MUST BE MORE TO STORY
The school would not be after this couple if they did not think they had money. There must be more to this story than what the Dodges have told us.
THINK THROUGH PLEDGES
Now I have never pledged $5 million or written a check to a charity for $1million. Wish I had it so I could. But this has caused me and many of my friends to think through pledges to charities including churches.
KRISTINA DODGE TELLS HER SIDE OF KCAI STORY
My name is Kristina Dodge (I’m the woman written about in the article) and I’d like to clear the air on a few things. Like always, I’ll be honest, forthright and truthful.
People have asked me how I feel about the articles coming out through various outlets. The short truth is: I feel so-so. I’m glad that the story is getting some attention. At the same time, I feel like the article leaves out certain pieces that I wish had been covered.
Here are a few points I’d like to clarify.
1. We signed a pledge. That is a fact. But we also didn’t try to back out of that pledge. We told KCAI that we needed to restructure it. Until the lawsuit, the endless motions and the slick way KCAI lawyers have manhandled us, we had every intention of fulfilling our obligation. This tumult has been caused by the hyper-aggressive stance that KCAI took from the get-go. That’s just not how you treat a family who gave you a million dollars. The lack of compassion is mind-numbing.
2. We don’t care if our name is on the building. We don’t need that sort of attention and didn’t ever ask for it. KCAI is using the fact that they put our name on the wall as a piece of showmanship. We invite them to take our name off the wall, melt down the scrap metal and sell it.
3. We did not back out of the donation because we got cold feet or wanted to buy a house in the Caymans. The banking crisis was a cataclysmic event. Hundreds of banks requested bailouts from the federal government—an unprecedented move. But we didn’t. My husband, Larry, still believes in the strength of the loans he made as the CEO of American Sterling—he would happily take the bank back. Still, the idea that KCAI could be so callous in the midst of a global economic meltdown is patently absurd. It’s odd to me that an institute dedicated to the arts (which aim to offer people a more nuanced understanding of the world in which we live) seems primarily focused on limiting this discussion to being either black or white. There are shades of grey. The fact that KCAI wants to ignore the complexity of the situation is sad.
4.KCAI has been aggressive in ways that don’t befit a charitable organization. In the coming days, I will be putting video of my KCAI legal-deposition online. The KCAI lawyers were ferocious and rude. I was asked if I “knew what the word job meant,” and if I “understand English.” The lawyer scoffed when he heard that my triplets have diapers. He demanded to know why some of that diaper money didn’t go to paying off KCAI. Seriously.
5.KCAI lawyers told us that they wouldn’t file for a default judgment. Then they did. Our appeal will look at the legality of this maneuver. Either way, it certainly isn’t ethical.
There is no hidden money. We aren’t secretly still rich. There isn’t a nickel under our floorboards (trust me, I checked). We have a house but the house has a lien against it that is bigger than the estimated sale price. My husband invested everything in his businesses. All our assets are tied to American Sterling. I hate to lay my life bare, but the fact is, we are currently on food stamps. We don’t have health coverage (aside from my husband’s Medicaid).
6.My husband and I don’t consider this a political issue. It is a human issue. KCAI is acting in a way that does not respect the human dignity of a family who, to-date, has given them a million dollars.
On a final point, I have been touched by the support many of the commenters have had for my family and I. We are in the midst of a trying time and have drawn strength from a wide range of places. The kindness shown by readers, their ability to share our outrage and see our point of view has buoyed my spirits.
If you agree with us on this matter, please take two minutes to email the office of the KCAI president ([email protected]) and tell her 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.”
Thank you for your interest in this story. Whether you side with Larry and I or with KCAI, please know this: we are regular people, doing our very best to support our family and live happy lives. When we had resources, we were notoriously generous with them. We have made every effort to handle this in an honest, accountable, forthright manner.
All my best,
Kristina Dodge