Swan Ball tied up in court

The Swan Ball is in limbo after a bitter battle over its finances wound up in federal court.

Why it matters: The white-tie gala that benefits Cheekwood Estate and Gardens has been a premier event among Nashville's wealthiest residents since 1963.

• Lawyers for Cheekwood and a group of volunteer organizers are now fighting over who is in charge of the event and how its finances should be handled.

State of play: A new lawsuit filed this week claims that Cheekwood "nefariously and covertly took complete control over accounting and bookkeeping services relating to the Swan Ball account" last year in the run-up to the 2024 Swan Ball on June 1.

• The lawsuit comes from a nonprofit created in May by a group of people who have helped organize the Swan Ball. The group equates Cheekwood's actions to a "coup," saying the organization systematically blocked organizers from all facets of an event that was always run by outside volunteers.

But a July 2 letter from Cheekwood's attorney, which was obtained by Axios, said "a faction of former Swan Ball volunteers" was trying "to wrest ownership of the Swan Ball from Cheekwood."

• Attorney Maia Woodhouse's letter stated that the Swan Ball organizing committee "is a department of Cheekwood from a legal, operational, and financial standpoint, reports to Cheekwood leadership, and relies on Cheekwood's assets."

Zoom in: The Cheekwood letter further states that only 32% of the Swan Ball's revenue went to Cheekwood over a three-year average, well below the "nonprofit industry standards" of 60-70%.

• "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."
• Attorney Chanelle Acheson, who represents the Swan Ball group suing Cheekwood, disputed that analysis, per the Tennessean , saying that it failed to account for nearly $600,000 for staff pay and infrastructure costs.

The bottom line: In a statement, Cheekwood's board pledged to "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."

• Cheekwood will stop planning for the 2025 Swan Ball "until this matter is resolved."