It is always discouraging to hear about lawsuits that
involve charitable foundations, but they are an unfortunate reality. A legal
dispute that has recently made headlines is between the Robin Hood Foundation
and Patriot Communications over last December’s Sandy Relief Benefit Concert,
which the foundation organized.
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| According to the RHF, millions in potential donations were lost. Image: Shutterstock |
According to Billboard Business, the Robin Hood Foundation is suing Patriot Communications for “breach of contract, breach of warranty, negligence and fraud,” alleging that the company, which was hired to handle the monetary functions at the benefit concert, failed to perform the services it was contracted to provide. Billboard explains that according to the Robin Hood camp, “millions of dollars in donations were left on the table due to spotty service from the company tasked with processing the donations.” The foundation is seeking $5 million or more in damages and is represented by Gibson, Dunn & Crutcher.
The Robin Hood Foundation is an organization that has
fought poverty in New York City for more than twenty years. Some notable Board
Members include political strategist Ken Mehlman, Marian
Wright Edelman of the Children’s Defense Fund, and Harvey Weinstein, among many
other passionate activists fighting to end poverty. Board Member Geoffrey
Canada describes his like-minded colleagues as “engaged, actively working, getting their hands dirty – often meeting
at programs they fund, in the city’s toughest neighborhoods,” explaining
that the reason why the Robin Hood Foundation is so effective is that its
supporters “truly walk the walk.”
With a board that pays all administration and fundraising
costs it’s no wonder that there was such backlash directed towards Patriot
Communications. Every penny earned from the benefit concert goes directly
towards ongoing Hurricane Sandy relief efforts, and towards ending poverty in
New York City. Clearly, the stakes here are very high.
Though the benefit concert was incredibly successful, the
Robin Hood Foundation claims that it would have been even more effective had
Patriot Communications acted more professionally. According to the lawsuit
filed by the foundation, "The event
eventually raised many millions of dollars for this worthy cause, but it would
have raised millions more had the efforts of many potential donors not been
stymied by Patriot's gross failure.” Stay posted for more news about the
development of this ongoing legal battle.
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