BizJournals Portfolio

When the Giving Is Gone

What happens to the biggest recipients of charitable donations from failed banks.

Disappearing Acts

Financial institutions have faltered and collapsed, but for their upbeat ad campaigns, irony springs eternal. Read More
Upside down jar of honey

Bank: Merrill Lynch (bought by Bank of America in September)
Biggest beneficiary, 2007: U.N.A.-U.S.A.’s Global Classrooms, $7.5 million over five years
Grant purpose: To bring the Model U.N. program to inner-city schools.
Now what? Nahela Hadi, senior vice president and C.O.O. of U.N.A.-U.S.A., expects the last Merrill payment at the end of the year. Goldman Sachs remains a significant donor.

Bank: Lehman Brothers (failed in September)
Biggest beneficiary, 2007: Spelman College, $10 million over five years
Grant purpose:
To establish the Lehman Brothers Center for Global Finance and Economic Development at this Atlanta college for black women.
Now what? The grant had accounted for nearly half of Spelman’s annual donation receipts. “It may take longer to achieve all of our plans,” a statement from the college says, “but we will continue to build upon what we have already in place.”

Bank: Washington Mutual (seized by regulators and bought by J.P. Morgan Chase in September)
Biggest beneficiaries, 2007: Two Washington Mutual employees, $2,209 total
Grant purpose: To assist two WaMu staffers after they lost their homes, one to Oregon flooding and one to a California wildfire.
Now what? WaMu’s charitable arm was already decimated. The bank’s foundation, which managed $25 million in 2001, suspended its giving in 2005 and shut down last year with $173,513 in its account. WaMu most recently gave a $1 million grant in 2000 (and broke off payment at $500,000 in 2002).

Bank: Bear Stearns (bought by J.P. ­Morgan Chase in March)
Biggest beneficiary, 2007: Citymeals-on-Wheels, $500,000 annually from Bear staffers
Grant purpose: To fund the New York-based nonprofit.
Now what? Since J.P. Morgan Chase bought Bear, the hunger-relief charity has been in triage. “One out of three tax ­dollars in New York is coming from Wall Street,” says Citymeals executive director Marcia Stein. “Many of our donors are retired and living on [investment] interest. Whether they’ll be able to be generous this year is a huge question.” Citymeals has seen a decline in ­corporate donations, Stein says, and cutbacks will be necessary.


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