Lesson 2: Shaping the Sector

While reading the Oprah case and reviewing it in class, I kept thinking about the academic Institute I had previously worked for. The Institute was awarded about 2 million dollars by a private donor, with conditions only of when and how much of the donation would be available. In return, the Institute would be renamed after the donor. The money was not restricted, therefore the Director of the Institute had full control and say as to how the money would be used. At the time of the donation, the donor had full trust and hope on the mission of the Institute, but this changed as a new Acting Director was appointed and as an Associate Director was hired. With these changes came disagreements of utilization of funds and resources and disagreements and issues between the funder and the new staff. Feeling like his money was not being used for what he envisioned it be used for, the donor regretted unrestricting the money and even considered withdrawing his donation, (something he may be unable to do without repercussions like the removal of his name from the institute and I am assuming, financial and legal costs).

The new staff began involving the Institute, and therefore the donor’s name, with political figures that the donor had differences with and began cutting off the donor from events and meetings, keeping him out of the loops with occurrences. (In my opinion as a way of showing the donor who was in control) Since the Institute isn’t governed by a board and the decisions are dictated by the two higher managers, there isn’t a regulation as to how and where the available funding is being utilized. As can be imagined the donor has expressed impotence and disappointment.

As opposed to what we saw in the Oprah case, not all donors will have full control of their donation. At the moment of deciding where to donate, a mission can captivate them but other stakeholders, like staff, can have more say and control as to how the money will be utilized. Without any check and balances or any form of regulation in place, the donor may find him/herself in a situation of regret and frustration.

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