2 Charities Set to End a Merger, Papers Say
A merger of Smile Train and Operation Smile, two nonprofit groups that work to repair cleft lips and palates, is being called off as a result of widespread opposition among Smile Train’s donors, according to documents whose contents were confirmed by a person familiar with the matter.
Smile Train donors representing about $7.9 million in contributions have signed an online petition opposing the merger; its medical advisory board has also unanimously opposed the plan.
Members of Smile Train’s board who voted against the merger have filed a complaint with the New York attorney general’s office, which must approve the merger before it can be completed. The merger was first announced on Feb. 14.
Charles B. Wang, chairman and co-founder of Smile Train, has called a special board meeting for Monday morning but he did not specify what he wanted to discuss. “There will be several different things the board will be discussing tomorrow,” said Andrew Frank, a spokesman for Smile Train.
But documents obtained by The New York Times show that since at least Wednesday, Smile Train has been preparing for an announcement that the merger has been broken off.
A spreadsheet dated March 4, for instance, shows that Smile Train plans to send an e-mail to 12,000 donors who did not sign the online petition. Those who signed the petition are to receive a similar letter, but with an introduction reading “Save Smile Train.”
“The events that have unfolded since this announcement are shocking, confusing and distracting,” reads a draft of a letter for Smile Train’s donors. “So much so, our board announced today that the merger is off.”
A draft of frequently asked questions poses this one: “Why has the merger been called off?” It suggests this answer: “Over the last three weeks, Smile Train has had to spend too much time dealing with false accusations, allegations and theft of our donor records. This gave us great concern that the organization was irreparably harmed.”
Mr. Frank said that he could not comment on the documents or the reference to the “theft” of donor lists. “We still think the merger is a good idea,” he said. “I think it is a viable idea and one that will be good for the kids. This has always been about what would be best for the kids.”
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He said, though, that “misinformation” about the merger and the storm of protest that has surrounded it was damaging to Smile Train and Operation Smile.
Howard Unger, chief operating officer of Operation Smile, said its board would also meet on Monday about the merger.
In response to an e-mailed question about what effect canceling the merger would have on Operation Smile, Mr. Unger wrote: “Operation Smile is fiscally and programmatically strong and has continued to stay focused on helping children.”
The merger was to bring together two organizations that had been bitter rivals since the late 1990s, when Mr. Wang and Brian Mullaney left the Operation Smile board to establish Smile Train. Smile Train pays local doctors to perform cleft surgeries, while Operation Smile sends doctors to other countries to do cleft surgeries.
By the middle of last year, however, Mr. Wang and Mr. Mullaney had had a falling out that led to Mr. Mullaney’s resignation as president of Smile Train. He remained on the board and voted against the merger. Two other board members, Mark Edward Atkinson and Robert Smits, also voted against the merger, and a fourth member, Donald Murphy, abstained. Mr. Atkinson, a photographer, was traveling on Sunday and could not be reached, and neither Mr. Smits nor Mr. Murphy responded to e-mails.
Mr. Wang and the four Smile Train board members, all of whom work for Mr. Wang’s various enterprises, negotiated the merger with a small group of Operation Smile board members.
One of the drafts makes it clear that Smile Train blames Mr. Mullaney for the failure of the merger. Mr. Mullaney declined to comment on Sunday.