May 9, 2010; Palm Beach Post | In a move that is at least questionable in terms of long term payback, a foundation in Palm Beach is suing its donors for unpaid pledges. The Paragon Foundation, which is supposed to be raising $5 million to be used to attract minority businesses to the area, has opted to sue some of the businesses who committed a total of $3 million to the foundation. The foundation has only managed to collect $1.7 of that.
The donor businesses, many of which are real estate firms, are feeling the effects of the precipitous downturn in that market. But one of the principals suggests that they are not withholding payment due to business downturns but because they already got what they wanted out of the deal—so why pay? On the other hand, some believe the foundation is engaging in “strong arm tactics.” —Ruth McCambridge