Florida A&M University (FAMU) has decided to pause the highly anticipated $237 million donation from Texas hemp farmer Gregory Gerami amidst growing concerns and skepticism surrounding the gift.
During an emergency meeting of the FAMU Foundation Board, President Larry Robinson announced that the university would suspend further action on the donation until the true value of the stock options, purportedly transferred by Gerami, could be determined.
Robinson emphasized the need to reassess the processes that allowed Gerami to announce the donation at a recent graduation ceremony without proper vetting and disclosure procedures.
The decision to halt the donation follows revelations that Gerami had imposed a non-disclosure agreement on the university, limiting information about the gift to a select few administrators. This lack of transparency raised eyebrows among Foundation board members, who expressed disappointment over the handling of the situation.
Shawnta Friday-Stroud, FAMU’s vice president for University Advancement, shed light on the initial contact with Gerami and the subsequent discussions regarding potential areas of support.
However, concerns were raised about the valuation of the non-publicly traded stock, which could range from being worthless to potentially worth up to $300 million depending on external factors.
In response to the uncertainty surrounding the donation, the Foundation board unanimously voted to conduct an external audit of the foundation’s processes related to major gifts. Additionally, the university’s Board of Trustees has scheduled a special meeting to further scrutinize the details of the donation.
While acknowledging the positive intentions behind the donation, board members emphasized the need for improved transparency and accountability moving forward.
The decision to pause the donation represents a pivotal moment for FAMU as it navigates the complexities of major gift fundraising and strives to maintain the trust and confidence of its stakeholders.