Apr 08, 2009

Relying on Charitable Pledges Can Be Dicey

Check out law professor Vaughn E. James' description of the disastrous sequence of events leading to a possible bankruptcy filing by the Children's Museum of Los Angeles. And here's my even shorter version of the story:

New building constructed but needing millions more to finish and furnish + big pledge that seems like it will save the day + donor assets then frozen due to alleged corruption = big problem for nonprofit
As if we needed further reminders that rich and successful people aren't always what they appear to be... but perhaps this is a lesson in needing to look further and not pin the entire success of one's plans on one pledge.