Wells Fargo, First Federal view gift giving differently
When it comes to donating money to the local school district, the banking industry is on opposite ends of the spectrum in terms of equity.
Two area banks have made themselves clear about what they think of the local school district superintendent’s proposed gift proposal, which would prevent wealthy schools from keeping the lion’s share of outside donations.
First Federal Bank apparently is so supportive of the proposal that it has made the first donation — $25,000 — into the Santa Monica-Malibu Unified School District’s “Equity Fund.” Bank officials said they support equitable education for all of the district’s 12,800 students.
“On behalf of First Federal Bank of California, we are privileged to be the first contributor to this important fund and look forward to being a model for the business and philanthropic community,” said Babette Heimbuch, chairman of the board, First Federal Bank of California. “The Equity Fund was established to insure that all students have the same opportunities and educational support in each and every school in the district, not just those students living in more privileged parts of the community.
But officials from Wells Fargo, which has donated hundreds of thousands to local schools over the years, said the plan isn’t fair because the bank doesn’t have total control over where its money goes.
33C,“We believe the Equity Fund runs counter to donor wishes by not allowing the donor to target 100 percent of their funding to the school or effort of their choice,” Wells Fargo Regional President Shelley Freeman wrote in a Feb. 12 letter to SMMUSD superintendent John Deasy. “Rather than providing equity, we feel that such a fund will in fact decrease contributions as donors learn that their wishes may be superseded by the Equity Fund.”
That doesn’t appear to be the case thus far.
“We are thrilled and grateful for the generosity of First Federal Bank of California as its donation kicks off the district’s Equity Fund,” Deasy said. “My hope is that as the fund grows, and the community sees how the funds are distributed and used, an elevated understanding will bring more individuals, companies and foundations to follow.”
Under Deasy’s proposal, all schools in the district would contribute a certain percentage of their cash donations to a central fund, which would then disperse the money to schools based on their size and need. Five of the seven school board members indicated last month they would support some form of a mandatory plan, calling it crucial in the quest for equity in local schools. A decision on the matter is expected at either tonight’s school board meeting or on March 11.
Much of the opposition to the plan has come from wealthy schools in Malibu that far out fundraise their Santa Monica counterparts. For example, McKinley Elementary located on Santa Monica Boulevard and Chelsea Avenue, raised about $30,000 from donors last year, while Pt. Dume Elementary in Malibu accrued $300,000 or more. The stated goal for fundraising at Malibu High School is $1 million.
It might not be a surprise then that the schools Wells Fargo has donated to are nearly all considered “wealthy” schools, meaning they get the most money from parents and supporters. The schools that Wells Fargo has donated to are Benjamin Franklin Elementary, Malibu High School, Juan Cabrillo Elementary School, Point Dume Marine Science School, Roosevelt Elementary School and Webster Elementary School.
Originally published in the Santa Monica Daily Press print edition on March 4, 2004. Read the original PDF.