07 February 2006

Ugly financial battles

Today I read an article in the Wall Street Journal about a donor who is suing Princeton University for using the funds against his family's wishes.

The article doesn't defend Princeton at all. It makes it sound like the university was constantly rerouting money that had been earmarked for a specific purpose to general funds (where God knows what happened to the money).

Part of the problem is that donors expect universities to manage their money for them. What a remarkable irony: if you have lots of money, it takes a lot of work to give it away properly. I notice that really wealthy people (the Hewletts & Packards, Bill Gates, Carnegie Mellon, etc.) set up their own foundations. The only way to be sure your money is used properly is to manage it yourself.

This article serves as a telling lesson for all of us. Keep your financial life squeaky clean. People can tolerate rude behavior, extra-martial affairs, etc., but no one forgives financial wrongdoing even if it might have been a mistake.

No comments:

Post a Comment