Insurer is sued for donations to orchestra
mainA tricky one, this.
A Florida insurance company is suing its former agent, and a business rival, for poaching four clients. One of them is the Florida Orchestra.
The defendants are accused of donating $20,000 to the orchestra to wean it away from its original insurer.
Trouble is, most orchestras – especially smaller ones – are not much bothered where their money comes from, so long as it comes in.
We are reminded of the billionaire Alberto Villar who stole money from his clients to fund opera companies and -projects.
I agree. Most orchestras would not care who donated, as long as they do.
But in Canada, contra-deals are illegal in fundraising. A donor cannot say “I will give you $xxxx if you do this or that business with my company.” The orchestra may — here — consider the donors’ list when changing contractors, and opt to try donors’ firms, but it cannot be a tit-for-tat affair. Most orchestras are funded by donors through their foundations, which give the donations charitable status, with the concurrent tax implications. I do not know how the business is managed in Florida, where taxes seem virtually unknown. But if it is a lawsuit, the grounds must be more than “poaching” a client.
Riveting…