Assignment
Assume you are a member of the board of trustees of Gould University, a 501(c)(3) nonprofit that is organized under the laws of the State of California. Gould University has received numerous multi-million dollar donations from John Smith. Mr. Smith is a rich philanthropist who inherited his fortune from his grandfather, the founder of a major European automobile company. Several years ago, it was discovered that the automobile company collaborated with the Nazis during World War II, produced vehicles used by the German military and used slave labor in its factories during the war. Mr. Smith is a graduate of Gould University who has never been involved with the family automobile company in any capacity (other than owing stock and receiving dividends). His donations to Gould University have been used, among other things, to support several groundbreaking scientific research projects and to endow a professorship in the health sciences that is named for Mr. Smith's grandfather. Many of Gould University's stakeholders now are upset that it has received donations from Mr. Smith (because of the source of his wealth) and may receive additional donations from him in the future. In addition, they are upset that a professorship is named after a Nazi collaborator. These stakeholders want Gould University to several all ties with Mr. Smith. This issue will be discussed at the next meeting of the university's board of trustees. What will you suggest that the board of trustees do? In particular, please address the following:
I. What questions will you ask and what information do you want to receive?
II. Should Gould University refuse to accept future donations from Mr. Smith? Why or why not?
III. What should Gould University do with the donations it already has received from Mr. Smith? Why?
IV. How should Gould University go about the professorship named for Mr. Smith's grandfather? Why?
V. As is often the case, the board's decision is likely to upset at least some of Gould University's stakeholders. How will you and the board explain the board's decision to the university's stakeholders?