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NetJets cuts its pledged donations

diggertwo

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http://www.pilotbug.com/?p=1657

NetJets Inc. has angered some central Ohio business leaders by slashing millions of dollars in funding promised to nonprofit groups, including nearly $9 million to the Pelotonia bike tour.

Ride organizers now are scrambling to replace the millions the Columbus-based division of Berkshire Hathaway had pledged to support the fundraising event through 2013.The situation prompted Limited Brands founder Leslie H. Wexner to write a letter to Warren Buffett, Berkshire’s chairman and chief executive, chastising the nation’s second-wealthiest man for allowing one of his companies to not live up to charitable commitments.

In the letter, Wexner told Buffett that he was “shocked and appalled” that NetJets “(turned) its back on the community.”

“Your company reneged on numerous charitable commitments totaling millions of dollars here in central Ohio,” he wrote. “The explanation? Berkshire Hathaway/NetJets had a tough year. Well, we all have had a tough year.”


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ProFracPilot

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Here's a comment I read on this article from elsewhere:

The only appropriate response to any contribution by Netjets or anyone else is "Thank you".

The only appropriate response to a cancelled contribution is "I understand. Thank you for thinking of us and we hope we can count on your support in the future".

To express outrage because a contribution didn't materialize is to highlight what ails the entitlement culture in our society.
I tend to agree.
 

Pervis

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Wexner never has been a friend to Netjets and is most likely taking this opportunity to slam NJA. It's none of his or anyone else's business who gives what for charity. It also makes no sense to donate when you're in the red. The tax breaks don't make up for the cash. The "drop in the bucket" argument is way overused today. If you don't have it, you shouldn't spend it. I agree with the thread above-charity is expected, not appreciated these days.
 

CA1900

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"Turned its back on the community"? The same community that gave SkyBus $50 Million, but wouldn't give us the time of day until we threatened to move to another city?

This is for you, Mr. Wexner. :rolleyes:
 

bunman45

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I believe they also cut the funding to the "Our Lady of The Worthless Miracle" clinic.
 
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Hung Start

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Isn't that pathetic.

Never mind Netjets (and EJA before it) has given millions to help out the community in the past,, that all means nothing.

To hell with what you did for me,, whatcha gonna DO for me!!!

That's true thanks and gratitude. It is a sad state of society.

Hung
 

jtf

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While I know there isn't a requirement to donate to charity, if you make a commitment, you should live up to it. Our society is going down the toilet on basic good behavior. If you say you will do something, you should d@mn well do it. Granted, the majority of our leaders (especially the elected types) make and break promises every day, but that doesn't mean they don't suck.
 

Fozzy

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While I know there isn't a requirement to donate to charity, if you make a commitment, you should live up to it. Our society is going down the toilet on basic good behavior. If you say you will do something, you should d@mn well do it. Granted, the majority of our leaders (especially the elected types) make and break promises every day, but that doesn't mean they don't suck.

I am sure NJA will continue its donations to charities after the company is on stronger financial footing. But for now, keeping as many employed as possible and sending a profit to share holders is their first priority.
 
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Sparse

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In the letter, Wexner told Buffett that he was “shocked and appalled” that NetJets “(turned) its back on the community.”

“Your company reneged on numerous charitable commitments totaling millions of dollars here in central Ohio,” he wrote. “The explanation? Berkshire Hathaway/NetJets had a tough year. Well, we all have had a tough year.”


Full story continues

Things change. It is a pledge not a gaurantee. Anybody half educated about fund raising knows that pledges are subject to change. Ask this yahoo if he would rather see the pledge converted or keep NJ and it's employee and tax base in Columbus. Additionally, such a hair brained comment might affect any future comittment NJ might be inclined to make, once this downturn reverses.
 
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Smoke

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Those charities can have their money when the 495 get their jobs back and the company is on better financial footing.


Those jobs are not coming back.....And it was more like 800 employees laid off....Pilots are not the only ones that work at NetJets.
 

NJAowner

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It is a pledge not a guarantee [sic]. Anybody half educated about fund raising knows that pledges are subject to change.

Actually that is not the case. Most larger charitable contracts (especially when someone or a company gets lots of exposure) is a legally enforcable contract and is NOT usually subject to change. Once in a while charities do take the unsual step of seeking to enforce the pledge and are usually successful. The premise is that the charity is relying upon that COMMITMENT and is moving forward on that behalf. For good PR (and the hope of getting future large commitments), charities usually do not seek to enforce the commitment.

While we all want pilots to be recalled, if assume the union contract does not require all pilots to be recalled before the comany can make charitable contributions.

I am not in favor of anyone (or compamny) making commitments and then walking away from them. I serious doubt RTS would have walked away.

Fly safe.
 

imacdog

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NJAOwner, you may be surprised about that last sentence.
 

o2bflyn

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It is a pledge not a guarantee [sic]. Anybody half educated about fund raising knows that pledges are subject to change.

Actually that is not the case. Most larger charitable contracts (especially when someone or a company gets lots of exposure) is a legally enforcable contract and is NOT usually subject to change. Once in a while charities do take the unsual step of seeking to enforce the pledge and are usually successful. The premise is that the charity is relying upon that COMMITMENT and is moving forward on that behalf. For good PR (and the hope of getting future large commitments), charities usually do not seek to enforce the commitment.

While we all want pilots to be recalled, if assume the union contract does not require all pilots to be recalled before the comany can make charitable contributions.

I am not in favor of anyone (or compamny) making commitments and then walking away from them. I serious doubt RTS would have walked away.

Fly safe.

Netjets, like all other companies effected in this recession, needs to return to profitability. Drastic times sometime call for drastic measures. I am sure that Netjets would have loved to honor this pledge, but I would never expect them to honor it at a detriment to the company. If the company goes down, then there is vastly different effect on the overall economy, than just these charities.

It is a regrettable decision, but a necessary one. We will never know what RTS would have done, so that is a mute point.
 

gunfyter

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I guess we could furlough another 50 or 100 people to cover the donations....:(

I don't think we walked away ... simply reduced support.

Back to fight another day.

I recently had to cut back what I was giving to the Church. Largely because Chase Bank sent me a letter notifying me they want me to pay 5% per month minmum payments now instead of 2% per month... on the $26K I owe them. Or more than $700 more per month.

I can't furlough my wife and kids so....

When I retire this debt things will go back to normal...

Same for NJ....
 
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flagshipper

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"I serious doubt RTS would have walked away."

I don't care who you are. That right there is funny
 

glasspilot

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It is a regrettable decision, but a necessary one. We will never know what RTS would have done, so that is a mute point.


It's a MOOT point. We would, however, have accepted a MOO point.
 

flex*wife

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One of my first jobs was working for a public television station. After telethons we would spend months trying to collect on some of the larger donations, especially some of those "gift with minimum donation" pledges. After 6 months, they went to a collection agency. There wasn't anything unusual or scandalous about this in comparison to other similarly funded enterprises, so it would be interesting to see where this one goes. Maybe making such a long commitment in a business niche a 5 year old can predict volatility in ought to be the real discussion.

However I agree that commitment to one's own, whether that be family or employees should come first but surely there could have been classier ways to handle all of this, including the layoffs...
 
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