Summary
Charitable donations from R. Everett Buchanan have become tainted due to a price fixing scheme that involved two auction houses, Van Klyder’s (Buchanan’s company) and Ferguson’s. Buchanan was convicted of the charges and now numerous sources have arisen to defend and condemn him, his associates and any charitable organizations that continue to accept monies from Buchanan. The Foundation for Arts, Culture and Entertainment (FACE) is one of two organizations in the area that help disadvantaged children. 20% of their operating budget is linked to Buchanan and they need to decide what to do. The choices are: continue to accept the money as is, continue accepting the money with conditions or stop accepting the money. The board feels they cannot make an informed decision because of their closeness to the situation and players involved. Our group has been hired to make a recommendation and they have agreed to accept whatever we decide.
Problem
If FACE continues the association with Buchanan it could result in a public trouncing by the organizations against him and the problems that come from that. If FACE discontinues the association they face a 20% loss in operating capital. With that known, the problem at hand is should FACE continue to be associated with R. Everett Buchanan.
Alternatives
One
FACE can refuse all future funds from sources associated with Buchanan and return all monies that have come from them.
Pros: Good Publicity, Ethically Correct
Cons: Loss of Incoming Funds and Operating Capital
Two
FACE can refuse all future funds from sources associated with Buchanan and not return monies that have come from them.
Pros: Good Publicity, Ethically Correct
Cons: Loss of Incoming Funds
Three
FACE can continue to accept funds from sources associated with Buchanan with no reservations.
Pros: Current Funding Unchanged
Cons: Bad Publicity Could Be Seen As Unethical, Potential Loss Of Future Funds
Four
FACE can continue to accept funds from sources associated with Buchanan with reservations.
Pros: Depending On the Reservations Current Funding May Change But Not As Dramatically
Cons: Bad Publicity, Could Be Seen As Unethical, Potential Loss Of Future Funds
Our Recommendation
Our group recommends that alternative two be adopted by the board. This is based on the idea that a 20% decrease in current funds by separating with Buchanan will be offset by the good publicity not only within the art community but the community at large. As for making up the 20% loss, we recommend that a strategy be formed to make a plea for funding that coincides with the announcement of the decision to disassociate FACE with Buchanan and his companies. It is hoped that others will step up and offset the 20% loss with additional contributions. Also, we recommend that the situation be reevaluated once the initial uproar has died down and the Buchanan and companies associated with Buchanan have had a chance to make amends to the community. Nursing Schools

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