Florida A&M University has decided to put a $237.75 million donation on hold following concerns raised about the legitimacy of the gift. The donation, presented by a 30-year-old CEO of a Texas hydroponic hemp farm company, was initially celebrated as one of the largest personal donations ever to a historically Black college or university.
However, doubts emerged after reports questioned the actual value of the stock gift. It was noted that the company behind the donation is relatively small, casting doubt on the hundreds of millions of dollars' worth of private shares.
This skepticism was further fueled by the donor's past involvement in a failed $95 million donation to another university, where he later backed out citing alleged racism.
During an emergency board meeting, FAMU trustees and foundation members expressed frustration over the lack of transparency in the vetting process for the recent donation. Some board members claimed they were not informed of the donation until it was publicly announced at a commencement ceremony.
Board members have called for an independent investigation into the transaction to ensure proper due diligence was conducted. Concerns have been raised about the validity of the gift, the adequacy of the vetting process, and the oversight provided by the university's boards.
Despite the university's assertion that due diligence was performed, questions remain about the nature of the donation and the donor's background. A non-disclosure agreement requested by the donor reportedly limited officials from disclosing details to the university's governing boards.
The university's reputation has been called into question, with board members emphasizing the need to restore faith among alumni and supporters. The Special Board of Trustees has scheduled a meeting to further discuss the donation on May 15.
