In 2005 Larry and Kristina Dodge pledged $5 million to the Kansas City Art
Institute for the construction of a new building which would bear their
name. The Dodge Painting Building now stands on the KCAI campus,
despite the fact that the Dodges only paid $1 million of the promised
amount. The school hired an attorney and initiated litigation in order
to compel the donors to pay the outstanding amount, which resulted in a
$3.3 million judgment against the family. Mr. Dodge, a former banker
once worth an estimated $1 billion, has lost his fortune and declared
bankruptcy, partially, he claims, due to the lawsuit. Mrs. Dodge now
fears she will have to file for bankruptcy as well if the school
continues to pursue the matter.
The Art
Institute maintains that the Dodges are under a contractual obligation
pay the amount pledged. In fact the Institute argues that as a
nonprofit organization it is under strict accounting guidelines, under
which it has already reported the pledged donation. Failure to collect
the full amount may result in an accounting deficit, which could
negatively impact future donations.
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