School Projects in Doubt due to Donor Filing for Bankruptcy

Submitted by Jen Jones on Sun, 12/27/2009 - 12:10pm

School Projects in Doubt due to Donor Filing for Bankruptcy

A common practice for many businesses and individuals is to make charitable contributions that can then be used as a tax deduction. Whether the motivation be a tax benefit or true philanthropy, many organizations depend on these contributions.

The contributions that Joe Kimmel has made to two local universities in western North Carolina are likely to come to an end soon as the philanthropic business man has filed for personal bankruptcy protection as well as protection for his company, Kimmel and Associates. Kimmel is the sole owner of Kimmel and Associates, a company that specializes in executive searches for the construction industry. Exactly how the two bankruptcy filings will affect the donations he has pledged to two universities remains to be seen.

Kimmel has pledged a combined $9 million to the University of North Carolina at Asheville and Western Carolina University. A new basketball arena was to be constructed in Asheville and a new construction college at WCU.

He made his pledge to Western Carolina University back in December of 2005. He was supposed to be donating $6.92 million to go to the construction of the Joseph W. Kimmel School of Construction Management, Engineering and Technology. The donations were to be spread over an eight year time frame.

Information has yet to be obtained about the $2 million Kimmel donated to the University of North Carolina in Asheville. The convocation center for the Center for Health and Wellness at the University is set to be named after Kimmel.

While Kimmel and his business will likely come out of the bankruptcy court in good shape the same may not be said for the construction projects already underway by both universities. It is almost a certainty that any future contributions will be out on hold as Kimmel and his company regain their financial footing. None of the nearly hundred employees of Kimmel and Associates are expected to lose their jobs.

At least three of the payments to Western Carolina have already been made. Bankruptcy law permits a Trustee to recover amounts contributed to a charity if the contributions were made with an intent to defraud creditors. While the true motivation of Kimmel's contributions are probably not of a fraudulent nature, it is certain that no future contributions will be made. This will leave the school scrambling to obtain additional funding to complete the projects.

Debts Hurt! Got debt? Need help? Get started below!

Serving North Carolina

  • Charlotte
  • Fayetteville
  • Durham
  • Wilson
  • Greensboro
  • South Raleigh (Garner)
  • Southport (Phone Consults)
  • Wilmington (Phone Consults)

North Raleigh

6616 Six Forks Rd Suite 203 Raleigh, NC 27615 North Carolina

Tel: (919) 847-9750

North Raleigh

Charlotte

7400 Carmel Executive Park Dr Suite 105 (In affiliation with Jack G. Lezman, PLLC) Charlotte, NC 28226 North Carolina

Tel: (704) 318-2702

Charlotte

Fayetteville

2711 Breezewood Ave. Fayetteville, NC 28303 North Carolina

Tel: (910) 323-2972

Fayetteville

Durham

1738 Hillandale Road Suite D Durham, NC 27705 North Carolina

Tel: (919) 286-1695

Durham

Wilson

2215 Nash St. NW Wilson, NC 27896 North Carolina

Tel: (252) 234-9194

Wilson

Greensboro

600 Green Valley Road Suite 210 Greensboro, NC 27408 North Carolina

Tel: (336) 542-5993

Greensboro

South Raleigh (Garner)

143 Highway 70 Garner, NC 27529 North Carolina

Tel: (919) 747-4400

South Raleigh (Garner)

Southport (Phone Consults)

4320 Southport Supply Road SE Suite 300 Southport, NC 28461 North Carolina

Tel: (910) 218-8682

Southport (Phone Consults)

Wilmington (Phone Consults)

4320 Southport Supply Road SE Suite 300 Southport, NC 28461 North Carolina

Tel: (910) 447-2987

Wilmington (Phone Consults)