May 10th 2024.
Florida A&M University recently made headlines with a jaw-dropping $237 million donation, which was deemed the "largest ever" for a historically Black college or university. The generous gift, presented on May 4th during the university's annual commencement ceremony, came from Batterson Farms Corporation's Gregory Gerami and the Isaac Batterson Family 7th Trust. However, the donation has since been put on hold due to concerns about its value and source.
After the media and school leaders raised questions about the donation, President Larry Robinson called for an emergency meeting with FAMU's fundraising foundation on May 9th. During the meeting, he announced the decision to pause the donation, stating, "With regards to the gift and the processing of it and so forth, in terms of future processing, we've already decided it's in our best interest to put that on hold." A video of this moment was shared by journalist Philip Lewis on Twitter.
The donation, which had the potential to greatly increase the school's endowment and benefit students and faculty for years to come, was met with skepticism. This was partly due to Gerami's past business dealings, including a failed $95 million gift to Coastal Carolina University in 2020. The university eventually cut ties with Gerami after the deal fell through.
The donation to FAMU was received in the form of millions of shares of stock, reportedly worth over $239 million. Gerami also pledged to donate an additional $61 million over the next 10 years. However, experts have questioned the value of the stock and the math behind the donation. "Where does this valuation come from?" asked Rebel Cole, a professor of finance at Florida Atlantic University. "It raises more questions than it answers. If I were a dog, my hackles would be up."
During the emergency meeting, members of the fundraising foundation expressed frustration and concern about not being informed about the donation or the donor beforehand. "How did we get this far without knowledge of the transaction or the donor?" asked foundation member Chekesha Kidd. School leaders, including President Robinson and vice president for university advancement Shawnta Friday-Stroud, admitted to being bound by a non-disclosure agreement, which prevented them from discussing the donation publicly. However, they defended their decision, stating, "Yes, there is clearly a risk, and we are seeing that in everything that has shaken out. But at the time, that was the decision."
According to the agreement, the donor requested to remain anonymous until he agreed to make the donation public. However, experts believe that the failed donation to Coastal Carolina University should have raised red flags during the vetting process. It remains to be seen what the future holds for this record-breaking donation and its impact on Florida A&M University.
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