Florida A&M University recently announced a purported $237.75 million donation that has now been put on pause due to concerns about the actual value of the stock gift and the details surrounding the donor’s previous donations. The announcement of the gift, made at FAMU’s commencement ceremony, was initially met with fanfare as one of the largest ever personal donations to a historically Black college or university. The donation was presented by Gregory Gerami, the CEO of Texas hydroponic hemp farm company Batterson Farms Corp, but skepticism quickly arose about the legitimacy of the gift.
Questions began to arise about the actual value of Batterson Farms Corp, a comparatively small company, and whether its private shares could be worth hundreds of millions of dollars. Furthermore, Gerami had been involved in a previous donation deal with South Carolina’s Coastal Carolina University that fell apart, raising concerns about his reliability as a donor. FAMU board members expressed frustration at the lack of transparency and information surrounding Gerami’s donation, with some calling for an independent investigation into the transaction to ensure proper vetting.
Despite assurances from FAMU that they had done their due diligence, concerns about the validity of the gift, the adequacy of the due diligence processes, and oversight by the Foundation Board and Board of Trustees have been raised. An emergency meeting was called to address these concerns and discuss the next steps regarding the donation. FAMU Foundation Board member Terry Arnold expressed concern about the impact on the university’s reputation and the need to restore faith in alumni and supporters.
Gregory Gerami, the donor of the purported $237.75 million gift, declined immediate comment when reached by CNN and referred questions to the university. The FAMU Special Board of Trustees has scheduled a meeting for May 15 to further discuss the donation and address the concerns raised. FAMU’s communications department did not respond to detailed questions about the gift and the vetting process, adding to the uncertainty surrounding the situation. The university is now faced with the task of investigating the legitimacy of the donation and restoring trust among stakeholders.
