College Loses $250M Gift as Donor Withdraws Offer

The donation was tied to a business transaction

   

college tuition costs 300x200 College Loses $250M Gift as Donor Withdraws OfferOne of the largest charitable gifts to a U.S. college has been withdrawn.

Back in July, Kentucky’s Centre College announced that a charitable trust would donate stock worth $250 million to the school. The gift would have funded a scholarship program, aimed at supporting as many as 160 students. However, last week the school says it was notified that the donation had been withdrawn, the Associated Press noted.

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An official with Centre College explained that the donation was tied to the corporate recapitalization of a private company, headed by the son of the late businessman whose trust made the donation. The recapitalization had to be completed by a specific deadline in order for the donation to be made.

According to a spokesperson from the company, the firm’s management decided not to borrow the needed funds to complete the recapitalization after a review of operations.

Understandably, the school wasn’t pleased with the decision. However, a Centre College official noted called the charitable trust that made — and then withdrew — the donation “a longtime friend and important partner” and indicated that the college would continue to work with the trust in the future.


Article printed from InvestorPlace Media, http://investorplace.com/2013/09/college-loses-250m-gift-as-donor-withdraws-offer/.

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