Chapter 17 - Delaney loses the foundation
The board terminated Delaney for cause.
Vote:
Seven to one.
I did not vote.
No longer chair.
Findings:
Material deviation from approved donor language.
Failure to disclose contrary medical review.
Ignoring Willa’s request concerning use of her name.
Failure to disclose personal compensation-interest implications in expansion plan.
Interference with approved youth programming.
Not:
Stealing.
Not:
Fabricating medical records.
Not:
Ordering doctors to diagnose anything.
Her employment agreement allowed no severance if defined gross misconduct/fiduciary breach established.
Her lawyer disputed whether conduct reached that threshold.
Arbitration.
Potential severance:
If she won:
Around $780,000.
If foundation won:
Accrued salary and benefits only.
Then Delaney sued? Arbitration under contract.
No public family circus initially.
Meanwhile, the foundation removed Willa’s name from the institute proposal.
New working title:
Center for Pediatric Neuro-Recovery and Mobility
Broader.
Evidence-based.
Less glamorous.
Willa approved?
She had no governance authority.
But board asked if she was comfortable with no name.
“Yes.”
Good.
Then Wexler donors.
They offered to keep $3.5 million already funded if:
Foundation redirected it to multidisciplinary pediatric neuro-rehab and FND research.
Independent medical advisory committee governed grants.
No family member held executive authority over medical messaging.
Remaining $4 million pledge?
Reduced to $2.5 million contingent on revised program.
The foundation lost:
$1.5 million in expected future pledge.
Not everything.
Other donors:
Some remained.
One requested $500,000 restricted gift returned.
Gift agreement permitted if institute not built as described.
Foundation refunded.
Another $250,000 donor accepted redesignation.
Financial cost manageable.
Reputational cost larger.
Then charity bureau.
No accusation of intentional theft.
It negotiated a corrective undertaking:
Review solicitation controls.
Independent medical verification for patient-story claims.
Written consent/assent policies for minors featured in fundraising.
Board training.
Periodic reporting.
A civil administrative payment of $85,000 to cover regulatory resolution? Could be plausible, but charity regulators vary. Let's avoid overly specific penalty unless necessary. We'll say no fine at that stage, compliance agreement.
No criminal referral.
Good.
Then I asked Arthur:
“Can I donate the lost $2 million?”
He stared.
“No.”
“Why?”
“Because then every governance failure becomes something Graham Ashford buys away.”
He was right.
The foundation had to become smaller if donors chose smaller.
Money should not erase accountability.
I made my normal annual unrestricted donation only.
May you like
No rescue check.
That was harder than writing one.
