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An alleged "coup" has taken place at Cheekwood — with a related lawsuit now jeopardizing the 2025 Swan Ball.
The lawsuit, filed in U.S. District Court on Tuesday on behalf of a newly formed nonprofit entity associated with the Swan Ball called SB Initiative Inc., alleges that Cheekwood Botanical Garden and Museum of Art officials orchestrated a “coup” over the past year to take over operations of the annual gala.
“[Cheekwood] first offered to begin performing the ministerial accounting for Swan Ball ‘in-house’ at [Cheekwood’s] business office for the 2024 Swan Ball,” reads the complaint. “Not knowing that Defendant was planning a coup to try to take over the Swan Ball gala, Plaintiff accepted Defendant’s offer.”
From there, the complaint claims that Cheekwood proceeded to assume control of Swan Ball operations.
Outside of a two-year hiatus because of the COVID-19 pandemic, the Swan Ball has been held every year since 1963 as a fundraiser for Cheekwood and bills itself as “one of the premier charity events in the United States.”
The white-tie gala regularly attracts some of Nashville’s oldest and wealthiest families. For example, the 2022 Swan Ball consisted of five different events held at Cheekwood, the Belle Meade Country Club and a private home. Darius Rucker performed as the ball headliner, and Tyler Perry’s musical director led the party band. Among the auction items were luxury trips to Chicago, Egypt and Uruguay. In past years, musical headliners have included Kool & the Gang, Diana Ross, Idina Menzel, Aretha Franklin, Steve Martin and Tony Bennett.
The plaintiffs claim that while the Swan Ball Committee has historically contributed “the fruits of its labors” to Cheekwood, it has until recently been “autonomous and independent” of the botanical gardens and museum nonprofit it benefits. The complaint notes the event has historically been run by a committee of volunteers, with just two permanent staff members who are on the Cheekwood payroll. The suit says Cheekwood is fully reimbursed with revenue from the Swan Ball for those employees.
“[Cheekwood’s] CEO and one other employee of Defendant are typically, without any obligation for the Committee to do so, invited to attend the Swan Ball each year, but no other employee of Defendant is invited, and the invitation to the Defendant’s CEO and any other person is purely the decision of the Plaintiff,” reads the complaint.
Cheekwood counters by noting it has owned the state trademark for the Swan Ball for decades. It adds that the Swan Ball, in its current form, is unsustainable.
"Lavish spending, resulting in such low fundraising efficiency ratios, is contrary to Cheekwood’s charitable objectives and guiding values, and likely shocking to Cheekwood’s donors. It risks exposing Cheekwood to poor ratings from charity oversight groups, to diminished public trust, and to irrevocable damage to the Cheekwood and Swan Ball brands."
The complaint says when it became clear that Cheekwood was attempting to “assert control over the operations of the committee,” the Swan Ball board unanimously voted to formalize itself as a separate and autonomous nonprofit in May. It also filed a federal trademark application for “Swan Ball,” which it argues should prevent Cheekwood from continuing to control it.
“It was a legal step that we took to ensure Cheekwood that whatever the ball did, the ball did, and they shouldn’t be concerned,” says Jana Davis, a Swan Ball board member who chaired the event in 2019.
Davis says the board was blindsided by Cheekwood’s move to lock them and their staff out of all Swan Ball operations because their executive committee had been meeting with Cheekwood executives to discuss how to cut the event’s expenses.
“We were looking at improving expense management, we sought counsel from an advisor who works with nonprofits and we said, ‘we want to continue to improve our return,'” says Davis. “We don’t want Cheekwood to worry about what the gross-to-net ratio may be if it’s not what they expect.”
The Swan Ball website says the event raises millions of dollars for Cheekwood annually.
An audit of Cheekwood shows that in 2021, despite the gala itself being canceled, the Swan Ball brought in $1.2 million in revenue. In 2023, the event generated more than $800,000 for the nonprofit. It is unclear whether 2024 figures have been finalized.
“I think the standard that was set 63 years ago for not only how the ball is conducted, but the quality, the expectations and the return — the standard of quality is there and the volunteers who put this ball on do it out of love for community and want to make sure that those standards are maintained,” says Davis.
Following a report by Nashville Banner, the Cheekwood Board of Trustees said in a statement that the nonprofit has established a goal that the Swan Ball “meet best practices in terms of the ratio between expenses and dollars contributed to support our programs and mission."
The statement continues, “For nearly two years, Cheekwood has met with the Swan Ball committee and requested that a budget be established in which at least 50 percent of every donor dollar contributed is used to support Cheekwood’s mission and programming. This is consistent with national standards for philanthropic events.”
Cheekwood said it has "deep respect" for the hundreds of Swan Ball volunteers:
Therefore, we were shocked and saddened to learn that, as a result of Cheekwood’s requests for stronger fiscal responsibility, an anonymous group of Swan Ball volunteers formed a new legal entity that filed a federal lawsuit to separate the Swan Ball from Cheekwood. The Cheekwood Board of Trustees does not support this effort and, in response, has voted without opposition to protect its interests, its donors, and the Swan Ball.
Cheekwood will vigorously defend its ownership of the Swan Ball and ensure that it meets nationally recognized benchmarks and best practices for philanthropic fundraising and expense ratios. However, due to the current litigation initiated by this new entity, Cheekwood has no choice but to postpone and cease all planning for the 2025 Swan Ball until this matter is resolved.
Adams and Reese attorney Maia Woodhouse is representing Cheekwood, while Chanelle Acheson, of Waddey Acheson, is representing the plaintiffs.
The Scene's sister publication the Nashville Post contributed to this report.
