This case explores public-private partnerships in Omaha, Nebraska, where substantial private donations were received for the construction of two cityowned facilities: a convention center/arena and a baseball stadium. The donors required creation of a new public authority to undertake the construction and operation of the projects. This article analyzes key issues related to the decision to enter into the partnerships, contract terms, risk-sharing, transparency, and accountability. It also identifies several important factors that have not been well addressed in the literature, including the role of institutions, leadership of individual actors, contractual modifications, and power and politics. The study helps to advance theory-building in this area and, as well, provides advice to public administrators and officeholders in governments considering private donations for public projects.

As public resources become scarcer, private donations for capital projects and public services may become increasingly important. Modern donors, using the new philanthropy philosophy common now in the nonprofit sector, may desire more control over the use of their funding than in the past. This research examines the effects of private donations on capital decision making, and explores the balancing act required by public officials between best practices and private norms in this process. The study uses the city of Omaha, Nebraska case, where corporate and individual donors have made significant financial contributions for the construction of a convention center/arena and a baseball stadium. Findings include both costs and benefits of this approach, and may be beneficial for theory‐building related to this relatively unexplored topic, as well as for practitioners faced with similar needs and demands.

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