Eyebrows raised over rush of funds for #NotreDame

Published Apr 18, 2019

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Paris - Pledged donations from French

billionaires, companies and ordinary citizens for the

restoration of fire-ravaged Notre Dame cathedral are approaching

900 million euros after just two days, a reflection of the

landmark's resonance in the national psyche.

But the outpouring has prompted questions from charities,

politicians and commentators about why some of the business

donors have offered so much so quickly, including speculation

about how they might benefit from tax breaks on the donations.

People on social media, both in France and abroad, have

expressed frustration that other disasters - from the Syrian and

Iraq refugee crisis to the Grenfell Tower fire in London - have

not received anything like the same degree of support.

The first major donation to Notre Dame came from

Francois-Henri Pinault, the billionaire head of luxury goods

group Kering that owns fashion brands Gucci and Saint

Laurent.

Pinault, 56, a celebrity figure in part because he is

married to actress Salma Hayek, pledged 100 million euros ($113

million) as the blaze was still raging - a decision dictated by

emotion, a spokeswoman for his family's holding company said.

Hours later, his great rival Bernard Arnault, France's

richest man and the head of Louis Vuitton owner LVMH,

announced he was donating 200 million euros, moved by the

alarming pictures on TV, according to a group spokesman.

The Bettencourt-Meyer family, the largest shareholder in

L'Oreal, followed suit a while later, pledging a

combined 200 million euros alongside the global cosmetics group.

Brand and reputation experts said the quick response by some

of France's most recognisable corporate titans made sense,

especially since the disaster involves a national symbol.

Adrian Palmer, the head of the marketing and reputation

faculty at the Henley Business School, said all three

billionaire families and their companies were closely aligned

with the nation, and benefit from reinforcing the link.

"These brands stand for France and they sell around the

world, so anything that puts the France brand at the centre of

people's minds is going to help them and how they are regarded,"

he said. "It creates positive associations in people's minds,

that they are generous, caring and good."

Online, LVMH's announcement of the donations was met with a

host of comments on Twitter, from France and abroad, suggesting

the money might be better spent in Africa or combatting climate

change than rebuilding a cathedral. Others suggested the

generosity was little more than smart marketing.

Palmer said that even from a non-marketing point of view,

early offers of support could be beneficial for a company's

political positioning. All three firms are broadly supportive of

President Emmanuel Macron and want to be seen as helpful with

backing for his calls to rebuild.

"Macron has been facing protests," he said, referring to the

"yellow vests" street demonstrations against the high cost of

living that have rocked France for months. "In a sense the

disaster at Notre-Dame has become a unifying issue, so they want

to show they are aligned."

TAX BREAKS

Still, there has been blowback. Charitable donations benefit

from a 60 percent tax deduction in France, which prompted

immediate suggestions by critics that Pinault, Arnault and the

others were being less magnanimous than initially appeared.

"It's the public that will end up bearing the cost," said

Gilles Carrez, a member of parliament for the centre-right Les

Republicains party, who sits on the finance committee.

The Pinault family, which was at odds with Macron last year

on issues of tax and the president's policies towards the poor,

said in a statement on Wednesday it was renouncing any tax

advantage it might get from its donation.

LVMH - which had benefited from large tax breaks to build

the Louis Vuitton Foundation in western Paris - dismissed the

notion it was merely trying to boost its image.

"The only thing at issue here is to try and raise as much

funding as possible to address this urgent issue, and that goes

beyond any tax or accounting calculations," the LVMH group

spokesman said in response to questions from Reuters.

The Bettencourt-Meyer family has declined to comment on its

donations.

All three companies and the families behind them are already

closely associated with the arts and cultural giving in France,

which makes their rapid collective offer of half a billion euros

to support a 12th-century Gothic masterpiece less surprising.

"No doubt big brands want to genuinely demonstrate their

empathy and show support to the re-building of an artefact that

is not just a building but a cultural symbol," said Keith

Glanfield, a professor at Aston Business School.

"By some this may be seen as no more than a cynical attempt

to sell more product."

FROM THE GUT

On Twitter and Facebook, and in the auditorium of the

European Parliament, the question was less about whether they

and others should give, and more about why such generosity was

going towards an old building hit by a disaster in which no one

died.

"We are very attached to where Father Pierre's funeral was

held," said the Abbe Pierre Foundation, a homelessness charity

named after a priest whose 2007 funeral at Notre-Dame was

attended by then-President Jacques Chirac.

"But we are equally committed to his cause. If you could

contribute even one percent of the amount to the homeless, we

would be moved," it said on Twitter.

Speaking to European lawmakers on Tuesday, teenage climate

campaigner Greta Thunberg said she did not want to diminish the

Notre-Dame fire, but wished there was an equal outpouring of

support to combat issues such as climate change.

Markus Renner, a professor of brand management in

Switzerland and the founder of the International Brand and

Reputation Community, said he was surprised to see Pinault,

Arnault and the Bettencourts give so much so quickly.

"Why not wait and find out how much is needed and then step

forward?" he said, pointing out that the billionaires and

companies could have given the money silently, but chose not to.

"It seems to be a little bit tactical and very much from the

gut," he said, adding he doubted whether German companies would

step up so promptly if Cologne cathedral burnt down.

If the fire ends up being covered by insurance, the

charitable donations may not end up being needed to finance the

restoration.

Reuters

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