Endowments, art collections, donor intent, oh my!

In our continuing coverage of how the financial crisis is effecting nonprofits, here's the story of Brandeis University and it's Rose Museum. The University trustees have voted to close the museum and sell pieces of the collection - some very valuable pieces, I might add. In this NPR interview, Brandeis President says he will not violate any donor intent but sees educating students as more important than keeping the museum open. The University says it will not turn away any current students who cannot pay their bills at this time. With an endowment that's lost significant value, I think that the University is staying true to its core mission and doing the right thing. On the other hand, it's not really a good time to be selling art either, so is it really prudent to sell when prices are low? Are University trustees upholding their duty of care? What do others think?

Philanthropist's Bailout

Billionaire Eli Broad has offered the Los Angeles Museum of Contemporary of Art a $30 million bailout to rescue the museum from financial trouble. But, the gift comes with certain strings: the museum cannot merge with any other institutions or sell any pieces of art. Broad is using his gift to improve the board. I encourage you to listen to his NPR interview: it just screams of Duty of Care, Duty of Loyalty, donor intent/cy pres, and what it means to be an art collector/philanthropist.