The donation, which had been hailed as one of the largest ever for a historically Black college or university (HBCU), was pledged by Gregory Gerami of Batterson Farms Corporation and the Isaac Batterson Family 7th Trust. However, questions have arisen regarding the legitimacy of the donation, particularly concerning the valuation of millions of shares of stock purportedly transferred to FAMU as part of the gift.
President Robinson expressed the university's reservations about proceeding with 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."
The skepticism surrounding the donation stems from the relatively modest profile of Batterson Farms Corporation, a Texas-based entity specializing in hydroponic hemp farming products. Many have questioned how the company's stocks could amount to millions of dollars. Adding to the doubts are reports about Gerami’s involvement in a previous donation to Coastal Carolina University in 2020, which was terminated shortly after being announced.
FAMU foundation members expressed frustration over the lack of transparency regarding the donation, with some claiming they only learned about it through the university’s press release or by word of mouth. The revelation prompted concerns about how such a significant transaction could occur without the knowledge of the foundation or the board of trustees.
The decision to accept the donation was further complicated by a non-disclosure agreement, which prohibited school officials from publicly discussing the gift. While defending the acceptance of the donation, Robinson and Shawnta Friday-Stroud acknowledged the inherent risks, with the potential value of the shares being uncertain until Batterson Farms Corporation goes public.
However, experts have raised doubts about the valuation of the stocks and the due diligence process undertaken by FAMU. Laurence A. Humphries, a member of the foundation’s board, pointed out the uncertainty surrounding the true worth of the shares, stating, "Yes, there is clearly risk, and we are seeing that in everything that has shaken out."
The agreement outlining the donation, obtained through a records request, revealed discrepancies in the valuation of the shares compared to the initial announcement. Questions have also been raised about the lack of specificity regarding the company in question and the methodology used to determine the value of the stocks.
As the controversy continues to unfold, FAMU faces mounting pressure to address the concerns surrounding the donation and provide clarity on its future course of action. With the fate of the $237 million gift hanging in the balance, the university finds itself at the center of a contentious debate over transparency, accountability, and the integrity of philanthropic contributions to higher education institutions.