HDL, headquartered on North 5th Street, is pulling back on its charitable donations.
One of Richmond’s most generous corporations is tightening the purse strings on its charitable giving in the midst of a tumultuous few months.
Downtown-based Health Diagnostic Laboratory has slowed down its nonprofit donations, the company said. Spokesperson Jeff Kelley said HDL is re-evaluating what type of philanthropic activities it will pursue in the future.
The company would not give specific numbers related to the cutbacks, but Kelley said the reduction in donations to nonprofits is temporary.
“We’re still giving, just a little bit less,” he said.
Kelley also said the change is not related to HDL’s recent troubles, which have included fallout from an ongoing federal investigation and a Wall Street Journal report about fees the company paid to doctors for using its test services. It is also dealing with the subsequent abrupt departure of its founding CEO Tonya Mallory and an $84 million lawsuit filed against it last month.
“As a company, we’re in a period of transition,” Kelley said. “We’re taking a look back at our core business, and we have to make sure that we’re a strong organization moving forward and that we’re being responsible with the funds that we provide to the community.”
Rising quickly as one of the area’s fastest growing companies in recent years, HDL’s stature as a corporate donor has also risen. In late 2012, HDL gave $2.2 million to the Science Museum – the largest donation in the museum’s history – and is still recognized as a sponsor of the “Boost” exhibit.
VCU men’s basketball coach Shaka Smart and former HDL CEO Tonya Mallory. Photo courtesy of HDL.
In 2013 the company made headlines with a $4 million HDL donation to the Virginia Commonwealth University athletics department.
HDL is continuing to give to some of its ongoing, regular recipients, including the Science Museum and the Richmond chapters of the American Heart Association and the American Diabetes Association.
But the company has reduced its donations to other nonprofits that might receive one-time gifts, Kelley said.
The point of the reduction, he said, is to ensure that the organizations receiving donations are in line with HDL’s mission of promoting health, science, research and education.
Kathleen Demro, president and CEO of the locally based Partnership for Nonprofit Excellence, said that because there are so many large companies headquartered in the Richmond area, the corporate sector has the ability to make a big impact for local nonprofits.
It is not unusual, she added, for those organizations to see that corporate funding rise and fall.
Both Demro and Kim Russell, spokesperson for the Community Foundation, said nonprofits handle fluctuating funding from corporations by diversifying sources of donations.
“Business decisions or events that are causing a corporation to pull back, that in and of itself is not new,” Russell said. “It definitely creates a new challenge for nonprofits, but it’s something they’re facing regularly.”
Kelley said it is too early to tell whether the appointment of a new CEO, co-founder Joe McConnell, will have an impact on the way HDL provides financial support to the community.
The company said it will continue its charitable giving in 2015, but also at decreased levels compared to previous years.
“We haven’t put anything on hold,” Kelley said. “We’re still actively engaged in the community, we still have commitments to a lot of local places, we just want to make sure we have responsibly put out funds.”
Clarification: A previous version of this article stated that HDL will return to its usual charitable spending levels in 2015. The company said it will continue charitable giving next year, but at decreased levels compared to previous years.
HDL, headquartered on North 5th Street, is pulling back on its charitable donations.
One of Richmond’s most generous corporations is tightening the purse strings on its charitable giving in the midst of a tumultuous few months.
Downtown-based Health Diagnostic Laboratory has slowed down its nonprofit donations, the company said. Spokesperson Jeff Kelley said HDL is re-evaluating what type of philanthropic activities it will pursue in the future.
The company would not give specific numbers related to the cutbacks, but Kelley said the reduction in donations to nonprofits is temporary.
“We’re still giving, just a little bit less,” he said.
Kelley also said the change is not related to HDL’s recent troubles, which have included fallout from an ongoing federal investigation and a Wall Street Journal report about fees the company paid to doctors for using its test services. It is also dealing with the subsequent abrupt departure of its founding CEO Tonya Mallory and an $84 million lawsuit filed against it last month.
“As a company, we’re in a period of transition,” Kelley said. “We’re taking a look back at our core business, and we have to make sure that we’re a strong organization moving forward and that we’re being responsible with the funds that we provide to the community.”
Rising quickly as one of the area’s fastest growing companies in recent years, HDL’s stature as a corporate donor has also risen. In late 2012, HDL gave $2.2 million to the Science Museum – the largest donation in the museum’s history – and is still recognized as a sponsor of the “Boost” exhibit.
VCU men’s basketball coach Shaka Smart and former HDL CEO Tonya Mallory. Photo courtesy of HDL.
In 2013 the company made headlines with a $4 million HDL donation to the Virginia Commonwealth University athletics department.
HDL is continuing to give to some of its ongoing, regular recipients, including the Science Museum and the Richmond chapters of the American Heart Association and the American Diabetes Association.
But the company has reduced its donations to other nonprofits that might receive one-time gifts, Kelley said.
The point of the reduction, he said, is to ensure that the organizations receiving donations are in line with HDL’s mission of promoting health, science, research and education.
Kathleen Demro, president and CEO of the locally based Partnership for Nonprofit Excellence, said that because there are so many large companies headquartered in the Richmond area, the corporate sector has the ability to make a big impact for local nonprofits.
It is not unusual, she added, for those organizations to see that corporate funding rise and fall.
Both Demro and Kim Russell, spokesperson for the Community Foundation, said nonprofits handle fluctuating funding from corporations by diversifying sources of donations.
“Business decisions or events that are causing a corporation to pull back, that in and of itself is not new,” Russell said. “It definitely creates a new challenge for nonprofits, but it’s something they’re facing regularly.”
Kelley said it is too early to tell whether the appointment of a new CEO, co-founder Joe McConnell, will have an impact on the way HDL provides financial support to the community.
The company said it will continue its charitable giving in 2015, but also at decreased levels compared to previous years.
“We haven’t put anything on hold,” Kelley said. “We’re still actively engaged in the community, we still have commitments to a lot of local places, we just want to make sure we have responsibly put out funds.”
Clarification: A previous version of this article stated that HDL will return to its usual charitable spending levels in 2015. The company said it will continue charitable giving next year, but at decreased levels compared to previous years.