Ethics Scenario #109: Fund for a Vibrant Harristown

109. Jean and Harry are wealthy members of the community who have supported the Fund for a Vibrant Harristown for many years, pledging six figures for as long as anyone can remember. Earlier this year, Harry pledged $250,000 on behalf of his family. But unfortunately, his bookstore business suffered a major collapse and had to be liquidated, following a bankruptcy. The board, which depends so much on the generosity of Jean and Harry, has decided to sue the couple to make good on their pledge, accepting the argument that the Fund has made commitments based on the payment of this pledge, and that there are consequences to those who make pledges and then fail to follow through with their pledge commitment.

a. Is the Fund’s board behaving unethically by authorizing a suit against these donors?