In a lawsuit filed on Friday, a charity based in New York City is demanding the return of $25 million it donated to the City University of New York ten years ago. The charity alleges that the university violated an agreement by failing to utilize the funds to construct a new facility for a community college.
In 2013, the Stella and Charles Guttman Foundation, established by the late New York entrepreneur Charles Guttman in 1959, generously donated a significant amount to CUNY’s New Community College in Midtown. As per the agreement, the college was renamed after the Guttman family and was slated to be relocated to a new, more extensive facility to accommodate more students in the future. This donation was one of the most substantial contributions ever made to a two-year college in the United States.
According to the lawsuit, CUNY violated its contract with the charity when it opted not to construct a new campus for the school, which was later renamed as Stella and Charles Guttman Community College.
According to the lawsuit filed by the charity, a staggering $15 million donation was linked to the establishment of the new facility via an endowment fund. The organization is now seeking reimbursement of the funds along with interest, amounting to a total of $21 million.
According to the lawsuit, the foundation has been granted the authority to receive a refund of the complete balance of the Success Fund, which includes any extra principal from income or realized gains, if CUNY fails to commence the construction of the new GCC facility within a decade from the date of the agreement.
CUNY declined to comment on the ongoing legal proceedings when approached for a statement. Despite repeated attempts, the lawyers representing the foundation did not provide any comments.
The Guttman Foundation concentrates a significant portion of its philanthropic efforts on enhancing educational programs for underprivileged children and youth in low-income areas. As per the information available on the foundation’s website, in 2013, the foundation invested in CUNY to support community college graduates in obtaining their degrees within the CUNY system.
