The Archmere Academy, a Catholic high school, and St. Edmonds Academy School, an elementary school, each received $1 million from the foundation of an alumnus and agreed to name the buildings after his parents, ABC News said.
But the report said the alumnus has been implicated in a crime and the victim's family will not forgive and forget.
"I consider it a slap in the face," said Kathleen Fahey-Hosey, whose younger sister, Anne Marie Fahey, who had worked at the governor's office, disappeared in June 1996.
After a lengthy investigation, a jury convicted Thomas Capano of murder and the court sentenced him to life in prison. Fahey's body was never found.
His brother Louis Capano Jr., a promient developer, donated the money to the schools through a foundation, the report said.