The clubhouse at Trillium in Cashiers, N.C., where Jackson County public documents show CEO Craig Dubow owns a $1.5 million country estate. Dubow excluded employee children in nearby Buncombe County from his college scholarship fund.Regarding questions about whether Chairman and CEO Craig Dubow has been funneling Gannett Foundation money to the Craig and Denise Dubow Scholarship Fund at a North Carolina university, a reader says in a comment:
"If Dubow directs foundation monies to Western Carolina and they recognize him directly for it, and not Gannett, isn't that a little more than sleazy? And, isn't part of the value of any donation the recognition it brings on the foundation; i.e. Gannett for its acts? Dubow may be its president, but he's hardly earned the right to treat its monies as his own. And, let's not forget that a great deal of this industry's value lies in its credibility. Acts like Dubow's greatly damages it and it no doubt encourages others within Gannett to "push" the ethical boundaries equally as well."
Asheville kids not welcomeThe Dubow fund's eligibility rules effectively exclude children of many Gannett employees, because scholars must be from North Carolina's Macon, Transylvania, and Jackson counties. Gannett's Asheville Citizen-Times is in nearby Buncombe County. (Inset, map of counties.)
Through a trust, the Dubows own a $995,550 home on a $500,000 two-acre lot in Jackson County's private Trillium golf course development, according to public documents that include a deed dated Sept. 27, 2006.
Related: The News-Star in Monroe, La., yesterday reported four Gannett Foundation grants given to local non-profits. The paper dutifully noted that the foundation's mission is to "invest in the future of the communities in which Gannett does business."
Please post your thoughts in the comments section, below. To e-mail confidentially, write gannettblog[at]gmail[dot-com]; see Tipsters Anonymous Policy in the green sidebar, upper right.
[Photo: Trillium]
This post is an example of how Gannett's stonewalling the press simply generates more of the stories that I suspect Dubow would rather not see published.
ReplyDeleteWe need a pix of this estate. Does it look like the Vanderbilt's Biltmore near Asheville? Enquiring minds want to know. Does it have an outdoor john, like some of the surrounding farms? This is some of the worst parts of Appalachia, as I recall once driving through the region.
ReplyDeleteIs there some law the University might be violating by saying that "Craig and Denise Dubow have established an endowed fund"? I don't think that such a statement, would be in violation of any FTC regulations, but... If it is false, shouldn't they be complicit?
ReplyDeleteSmooth criminal has a point. You cannot claim to be a charity unless you are one, under federal law. The IRS enforces this one, as well.
ReplyDeleteMaybe we can crowdsource this.
ReplyDeleteI can't find anything relevant in the UNC Policy Manual.
There is a chapter on "Endowed Funds" in there, but it pertains to the university's endowed fund, not to endowed scholarships. There is also a mention that the university's board of governors must adopt and adhere to an ethics policy, but I didn't find an ethics policy for general employees.
Maybe there is a state employees ethics policy?
According to the State Government Ethics Act:
ReplyDeletePublic servants are "For The University of North Carolina, the voting members of the Board of Governors of The University of North Carolina, the president, the vice‑presidents, and the chancellors, the vice‑chancellors, and voting members of the boards of trustees of the constituent institutions."
Maybe there is some other state employee code of conduct or ethics policy, but the State Government Ethics Act would not appear to make an employee of UNC's Office of Development a "public servant."
Maybe there's something more in there or elsewhere...
Not really on point, but the first "anonymous" post above, after Jim's post, is off the mark. Trillium's in a pretty exclusive area, being a short drive from Atlanta. Compares very nicely with the stereotype versions of Appalachia. Come to think of it, a 1.5M "estate" at Trillium is probably fairly modest, relatively speaking.
ReplyDeleteAlthough Western Carolina University is a member of the UNC system, it does maintain a certain amount of autonomy, so looking for policies and procedures on the UNC website may not be particularly helpful. The WCU website does not have a gift acceptance policy posted, but they surely have such a policy written and would likely provide it if asked.
ReplyDeleteIt is not unusual for a gift to be recognized in one way and credited in another. By that I mean that the accounting, valuation, and acknowledgment for tax purposes is very strictly prescribed by the IRS and generally accepted accounting standards. Who gets recognized with their name on the scholarship fund is not nearly so strictly controlled.
As long as WCU is abiding by its gift acceptance policy in this case as it would in any other, then it is acting ethically. If the Gannett Foundation says they would like the money they have given to be placed in a fund named for their CEO, WCU is not complicit in malfeasance as long as such a designation is not in violation of their policy. Imagine that the gift was from a father to name a scholarship fund in honor of his son. It is further reassurance that the geographic restriction on the scholarship fund (also not unusual) is focused on counties which have traditionally been very impoverished -- except for those who vacation there.
Whether or not the Gannett Foundation should make such gifts is another issue. Many corporations have related foundations which senior managers are able to tap to fund their personal philanthropic causes. It is often regarded as a perk. It is also, as Jim points out, probably not something Gannett or many other corporations would like a whole lot of light shed on since, while almost always done legally, it does not seem as charitable as the corporate literature would like to make it seem.
I do caution you to proceed carefully here as much corporate foundation giving does a lot of good for people who need it. If potential donors feel that every gift will be scrutinized, their willingness to give may be curtailed at a time when such gifts are direly needed.
@2:24:
ReplyDeleteIf a father wanted to establish a scholarship in honor of his son, the university most likely wouldn't publish a statement that the son established the scholarship.
If an anonymous organization or person wanted to establish a scholarship in honor of Craig and Denise Dubow, the university would most likely publish a statement that an anonymous benefactor created the scholarship.
It would seem dishonest, or at least erroneous, to publish that "Craig and Denise Dubow have established an endowed fund" (as the university did, here) if such a statement turns out to be false. And if it is false, it merits correction.
Potential donors with nothing to hide need not fear scrutiny.
2:24 It used to be general policy that government agencies would release public information they would have to release anyway under a freedom of information act request. For the university to refuse to release information in this situation is very troubling and questionable. SOmething smells wrong when they refer the matter over to a lawyer, and then remain silent. What are they trying to cover up? Is there something wrong here?
ReplyDelete@3:02 don't read anything into the referral to the lawyer. That's normal. They are trying to determine what the law requires them to do in order to answer the request.
ReplyDeleteOpen records laws generally allow a reasonable amount of time for compliance with the request. Few reasonable people would suggest that the referral to a lawyer is improper.
While the big cheese was exhorting everyone else to hunker down, work harder, work longer, work smarter, make personal sacrifices etc., it's comforting to see the the example he set. I think a buck and a half spent here no doubt gets you a bucolic vista where you can find refuge from all the nagging little questions about lost shareholder value.
ReplyDelete2:24 PM
ReplyDeleteI think every gift should be scrutinized, and those who have nothing to hide will not mind the scrutiny one bit.
Routine requests for information are handled routinely. When flacks run to check with legal, something else is going on. Public information is just that, and doesn't require any legal interpretations or approval.
ReplyDelete1:23:
ReplyDelete"... some of the worst parts of Appalachia, as I recall once driving through the region."
In fact, the areas surrounding Asheville are some of the most affluent in the U.S., as evidenced by the Trillium development, which is one of dozens similar developments.
In fact, Tiger Woods is developing his first U.S. golf course community less than 10 miles from Asheville.
So before the next time you "drive through the region" you might consider educating yourself beyond what you saw at the Quick Mart Gas, Bait & Tackle Laundromat and Intimate Lingerie and Ball Caps on Interstate 40.
Jim... thanks for the tease in an earlier post regarding your hunch about why Dubow would start a scholarship here... but where's the news? Do you really need the FOI request to go through before you spill the beans? Do you suspect that the board is watching this unfold, or if they have even questioned him regarding his endowment?
ReplyDelete8:15 pm asks: "Do you really need the FOI request to go through before you spill the beans?"
ReplyDeleteAnswer: Yes. I still think there's probably a simple explanation for why A) Western Carolina won't divulge the whereabouts of the $40,000 and, B) Why Gannett spokeswoman Tara Connell also hasn't spoken up.
Now, I won't be surprised if WCU turns me down, citing an exemption that applies to private foundations like the WCU foundation.
But (hi, WCU attorneys!), my information request covers ALL public documents related to Gannett -- not just those at any entities that may not be covered by North Carolina's open-records law.
Many public universities do establish these foundations as private entities for the purpose of being able to accept gifts in the same way private universities are able to accept them. Governmental agencies have a very difficult time accepting charitable contributions, at least in North Carolina.
ReplyDeleteWhile the Gannett Foundation may feel it has some reason to obscure its giving and want to seek the confidentiality that foundation records provide, those same confidentiality practices are essential to the conduct of philanthropy in this country. The Donor Bill of Rights promises donors confidentiality to the extent provided for under the law. For many, if not most, donors, their motivations for giving are not connected to public recognition (a humility I think we all can appreciate) and they want to feel assured that their giving will not be publicly scrutinized in the same way that they would not want their bank account scrutinized. How a public institution or tax-exempt charity spends the money is a different story and should be open for review.
The issue, imho, with the scholarship is that it not be targeted to support, say, executives of Gannett or its subsidiaries exclusively. The criteria for qualifying for the scholarship should be clearly published.
One must be very careful in characterizing the economic climate of Western North Carolina by the billboards advertising luxury developments which can be seen along our interstates. Jackson County, home of Western Carolina University and Trillium is also home to textile and other industry plants left empty by outsourcing; tourist destinations left empty first by rising fuel costs and now by the declining economy; and some of the very luxury developments which locals had hoped would provide a livelihood through construction and domestic service jobs have now gone belly up as a result of poor loans on which applicants (Floridians and other looking for second, third, or fourth homes) lied to get approved.
The development bearing Tiger Woods' image -- less than two miles from my home -- is directly adjacent to the site of the former Beacon Manufacturing plant. This plant closed in the early aughts and was burned by arson around 2005. Many of the surrounding homes are former mill homes occupied by former mill employees who have scraped together any amount of work they can in the years since the mill closed. Many local residents wake up well before dawn in order to catch the one bus which comes through in time to get them to work in service sector jobs in Asheville. This bus comes at 6:20 am. The next does not arrive until after 10am. One local resident was killed recently trying to cross the highway which was rammed through the community and which has no pedestrian accommodations. The is a sharp contrast between life inside and life outside the gates of the communities in WNC. Education is one of the avenues of hope for our residents. Whether or not the Gannett Foundation should be making $40,000 gifts in the name of its CEO to any institution, do not doubt that the scholarships are needed in this area.