Gensler Architecture inappropriate public appeal for gifts to their employees exclusively 2017 09 05

Is it appropriate, ethical and even legal for a private company to solicit donations from the public to benefit ONLY their employees? (Gensler “Hurricane Help – Gensler Houston,” GoFundMe $75,000) Gensler Architecture is the world’s largest AE firm, generating $1.4 billion in annual revenues and an estimated $100 million profit. They are a highly respected and very successful firm. On August 28th this company initiated a campaign on GoFundMe.com soliciting donations from the public to assist some of their employees with “disaster relief.” The campaign has generated donations from more than 500 people across the country and Gensler has agreed to match these 1:1, perhaps generating some $150,000 in aid. At first glance, it appears to be a noble effort, and I’m not suggesting any wrongdoing on Gensler’s part, but, it is a mistake. The appeal requests that the public selectively support a specific group of individuals – Gensler employees that were impacted by the storm.

The tradition of charity in America is that we all help each other and organizations such as the Red Cross are generally the recipients of contributions and are charged with the responsibility of distributing those funds based on need. While an imperfect system, it’s does try to enable all of us the ability to help all of us. In that context, a private company suggesting that instead of helping everyone, just help our employees is inappropriate, at the least. IRS Publication 3833 entitled “Disaster Relief” clarifies the distinction “Under federal law, an existing qualified charity generally must be given full control and authority over the use of donated funds, and contributors may not earmark funds for the benefit of a particular individual or family.” And continues “The group of individuals that may properly receive assistance from a tax-exempt charitable organization is called a “charitable class.” A charitable class must be large enough or sufficiently indefinite that the community as a whole, rather than a pre-selected group of people, benefits when a charity provides assistance. This charitable class is large enough that the potential beneficiaries cannot be individually identified and providing benefits to this group would benefit the entire community.” And further “Because of the requirement that exempt organizations must serve a charitable class, a tax-exempt disaster relief or emergency hardship organization cannot target and limit its assistance to specific individuals, such as a few persons injured in a particular fire. Similarly, donors cannot earmark contributions to a charitable organization for a particular individual or family.”

Clearly, the donations sought by Gensler, in this situation, are not charitable and therefore not tax deductible. IRS provides guidance regarding Employer efforts “When an employer-sponsored organization provides assistance to employees, certain limitations apply that help to ensure that such aid does not result in impermissible private benefit to the employer. Individuals can also help victims of disaster or hardship by making gifts directly to victims. This type of assistance does not qualify as a tax-deductible contribution since a qualified charitable organization is not the recipient.” Gensler is essentially asking the public to make “gifts” to support exclusively their employees.

This raises ethical and practical questions about charitable efforts and need. During the recent Harvey Disaster, the world witnessed selfless acts of kindness benefit both neighbors and strangers. Texans-helping-Texans grew to Americans-helpingTexans. Everyone helping each other. Gensler’s appeal suggests that Texans-helping-Gensler or Americans-helping-Gensler is appropriate – it is not. CEO Andy Cohen posted this on his LinkedIn page promoting the campaign “In response to Hurricane Harvey in Houston, we are raising money for the Gensler families directly impacted by severe flooding. Donations to this fund will go to help these families and their rebuilding efforts. Gensler will match all contributions and everything helps.” There is no reference on the GoFundMe campaign website informing donors this in NOT charity worthy of a tax-deduction, but rather a “gift” to Gensler and its employees. If that disclosure were made, would the results differ? What would be the longterm ramifications be if Employers could suggest their employees’ needs are greater than others and request that our collective generosity go to them directly AND exclusively? The question is not whether this effort was wrong, on its face it seems like a reasonable effort, but is it appropriate? Does it end the basic charitable idea that we all help each other, as fairly as our charitable infrastructure can achieve, or do we make selective contributions/gifts to private companies?

Gensler should cancel this effort.

Author: Andrew West, Solutioneur Foundation. solutioneur@gmail.com 512.924.2006 Gensler GoFundMe Campaign https://www.gofundme.com/hurricane-harvey-help-for-gensler-houston IRS Publication 3833 “Disaster Relief” https://www.irs.gov/pub/irs-pdf/p3833.pdf CEO Cohen’s LinkedIn Appeal: https://www.linkedin.com/feed/update/urn:li:activity:6308422835069079552/