ABC 27 obtains FAMU gift agreement for $237 million donation

ABC 27 has obtained the nine-page gift agreement between Florida A&M University and The Isaac Batterson Family 7th Trust. The announcement of a $237 million gift to FAMU at commencement on May 4, 2024. Watch the video of our team coverage above.

The request for the agreement was made following questions surrounding the amount of the agreement. Along with the Florida A&M University Board of Trustees calling for a special meeting on the donation next Wednesday, May 15.

In the agreement, the "donor" is listed as "The Isaac Batterson Family 7th Trust." "Florida Agricultural and Mechanical University Foundation" is listed as the benefit.

WATCH THE NEWS CONFERENCE FOLLOWING THE DONATION

During Saturday afternoon's commencement ceremony, FAMU received a check for more than $237 million

The agreement will be made part of the Foundation's permanent records and is intended to serve as a guide to those who will administer these funds in the future.

DESCRIPTION OF GIFT

According to the agreement, the Isaac Batterson Family 7th Trust donated 14 million shares of stock of intrinsic value worth at least $239,000,000 and will donate an additional $61,000,000 over 10 years according to an agreed up on schedule.

According to the agreement, the donated shares are in a Carta account, which is an equity management platform used to manage valuations and investments and it also operates CartaX private exchange, which is a way for employees and shareholders to sell their stocks before the company goes public or is acquired.

The agreement states that FAMU Foundation, Inc. can sell stock shares; but, if sold to an individual, the individual cannot have a drug offense.

The agreement adds that if the value of the shares increases to any amount exceeding $300,000,000, the additional funds will be allocated as follows:

1) 50 percent to Athletics of which 10 percent will be at the Vice President/Director of Intercollegiate Athletics discretion and the other 90 percent will be added to the Athletics endowment, and

2) 50 percent to the University of which 10 percent will be at the President's discretion and 90 percent will be for student success initiatives.

In the agreement, it says the Donor will receive a plaque at the Will Packer Performing Arts Amphitheater for each Endowed Scholarship Fund that reaches $100,000.00 in cash. There are also potential naming opportunities that must be approved by the Florida A&M University Board of Trustees.

Contributions may be made at times sooner than stated. Additional contributions may be made to these funds at any time.

The first section of the agreement concludes stating, "it is the desire of the Donor to remain anonymous until Mr. Gerami agrees to make it public. Until such time, the donation will be known through and as the Isaac Batterson 7th Family Trust and Gregory Gerami as representative of it."

PURPOSE AND ADMINISTRATION OF THE FUND

In the next section of the agreement, it says the purpose of the Endowed and Expendable Funds are to provide scholarships and programmatic enhancements for the FAMU CeDAR Program, the FAMU Department of Intercollegiate Athletics, the College of Agriculture and Food Sciences, the School of Nursing, and a general University fund to support student success initiatives and special needs of the University at the discretion of the President.

The Foundation shall have full authority and discretion to invest the funds contributed by the Donor either separately or pooled with other funds held in its fiduciary capacity. Fees may be assessed to pay for investment management and administration of the Fund.

The annual interest income only from the endowed Fund shall be used for the purposes stated above as income will allow, unless otherwise specified below. The amount distributable will be in accordance with the Foundation's policy. The Fund will be administered in a manner intended to maintain the stability of endowment support for the Foundation and preserve the purchasing power of the Fund against inflationary pressures. Excess income may be added to the principal.

CRITERIA FOR SCHOLARSHIP AWARDS

The agreement says the the Isaac Batterson Family 7th Trust Endowed Scholarship recipients and the Isaac Batterson Family 7th Trust Expendable Scholarship recipients shall be FAMU students enrolled in the CeDAR Program, or enrolled FAMU student athletes, or students enrolled in the College of Agriculture and Food Sciences (CAPS), or students enrolled in the School of Nursing (SON) who meet the three criteria specified below.

Scholarships are renewable such that prior recipients who meet the criteria are eligible in subsequent years, provided the student shows academic progression.

Recipients of the Isaac Batterson Family 7th Trust Scholarships shall be selected by the Director or Dean of the appropriate unit or designee and made to deserving FAMU candidates meeting the following criteria:

1.) Recipients are enrolled in the CeDAR program or certified as a student athlete or a CAFS student or a SON student;

2.) Recipients are at least a full-time, second semester freshman or higher with a FAMU GPA of 2.0 or higher; and in good academic standing; and

3.) Recipients shall have an unmet financial need.

The funds will be awarded by the director of the CeDAR program, the Vice President/Director of Athletics, the Dean of CAFS, or the Dean of SON as appropriate. The scholarship award shall be used for tuition and fees, living expenses, supplies or other expenses related to the recipient's course of study. The funds will be disbursed through the Office of Financial Aid, who will confirm either that the student's financial obligations to the University have been met or will be met with the scholarship funds.

RECOGNITION AND STEWARDSHIP

The agreement says the Foundation agrees to inform the Donor of the Fund's progress and awards made from this Fund as stipulated above.

UNFORESEEABLE CIRCUMSTANCES

The agreement states that University and Foundation naming opportunities, including named endowment funds,shall only bear the name of individuals or entities that exemplify attributes of integrity, character, and leadership consistent with the highest values of the University. should those standards be violated, the University and the foundation reserve the right to remove the donor's/honoree's name from such naming opportunity.

The agreement concludes with the following paragraph:

The funds shall at all times be subject to the power of the Board of Directors of the Foundation to eliminate or modify any restriction, condition, or limitation imposed with respect to the funds it, in the judgment of the Board of Directors, in consultation with appropriate University administration, such restriction, condition,or limitation becomes impracticable, unnecessary, incapable of fulfillment, or inconsistent with the educational or scholarship needs of the University. In such an event, the funds shall be used for such educational uses and purposes as the Board of Directors, in consultation with appropriate University administration, shall deem necessary and advisable in a manner that most closely aligns with the Donor purpose. The Board of Directors will keep in mind the intent and purpose for which the Funds were originally established and will act in accordance with the Florida Uniform Prudent Management of Institutional Funds Act (*UPMIFA"). This agreement may be amended in writing, signed by all parties.

SIGNATURES

In the document FAMU's public records department provided ABC 27, the following people signed the agreement:

• Gregory Gerami: Family Foundation Representative
• Larry Robinson, Ph.D., FAMU President
• Shanta Friday-Stroud, Ph.D., Vice President, University Advancement Executive Director, FAMU Foundation, Inc.

In the agreement copy provided, there is no signature on the line for "The Isaac Batterson Family 7th Trust Representative." ABC 27 asked FAMU's public records department about this. We're waiting to hear back.

APPENDIX

At the end of the document, an appendix is attached. It details "The Proposed Isaac Batterson Family 7th Trust $300M Donation 10-Year Donation Schedule. See that appendix below.