March 20, 2008
Donors Sue University Over $2-Million Pledge
By Caroline Preston
Donors to St. Bonaventure University, in New York, have sued the institution, saying that they were not provided with information about how their $2-million pledge for an addition to the school’s library was being spent.
Paul and Irene Bogoni sued the institution in a New York State State court last month, alleging that the costs of the project had risen above the budget they had agreed upon with the university. Arthur Chagaris, a lawyer for the couple, said the university had asked the couple for more money for the project, but had declined to provide detailed information about the budget.
University officials describe the lawsuit as “meritless” and are seeking to have it dismissed.
The university announced on Wednesday that it would press on with plans to build the addition, which will house a collection of approximately 9,000 rare books and manuscripts. St. Bonaventure University began construction on the wing in 2006.
Emily F. Sinsabaugh, vice resident for university relations, said the university would seek to raise money from individual donors to pay for the project, but that it might be forced to reallocate funds from elsewhere in its budget.
In their lawsuit, the Bogonis say they want an explanation of why the project’s costs rose above $2-million, an amount they say was stipulated in the terms of the gift.
The couple paid for a feasibility study for the project in 2003, according to their court filing, but they say the university never provided them with a report on the study. They also say that the university violated other terms of the gift, including allowing the couple to finance the complete cost of the project and naming the building after the Bogonis.
“I just want to see why the project has gone over budget so dramatically,” Mr. Bogoni, a real-estate executive, said in a statement. “It could have been re-bid and re-designed to stay within budget. Instead, the university changed the scope of the project far beyond what we originally intended without first discussing it with us. We asked for documentation and we have received nothing worthwhile.”
The Bogonis are asking the court to return the money they provided for the building project if the university fails to provide additional information.
The university declined to say how much of the Bogonis’ gift to the library addition had been paid. The lawsuit, however, states that the couple has paid $1.1-million.
In their lawsuit, the couple also took issue with the way the university had handled a separate $1.5-million donation to endow an undergraduate program on geriatric studies. They say that the university redirected $100,000 of their gift to other purposes. The Bogonis paid that gift in full.
Ms. Sinsabaugh said the university gave the couple detailed information about the costs of the project, including invoices.
“The university has happily provided information to the Bogonis at their request about the progress of the project,” she said. “If there is additional information we can provide, we’ll provide it.”
Ms. Sinsabaugh also said the library addition had not gone over budget. She said the donors knew the cost of the project — $2.7-million, according to the university – when construction on the building began.
Ms. Sinsabaugh denied that the terms of the gift agreement stated that the Bogonis would be the only donors to the library’s addition.
“When we realized before the project that there would be additional funds necessary to complete the project according to the vision that they were very excited about, we found other donors,” she said. “That was ironed out prior to the agreement and nothing has changed since expect that they decided to default on their gift.”
Ms. Sinsabaugh also denied that the university had used some of the couple’s $1.5-million gift, which they made to endow a center on geriatric studies, for other purposes.
She said that the university was hopeful that the couple would reconsider their decision to renege on the gift.
Comments
Commenting is closed for this article.
Previous: Google Offers New Site for Nonprofit Groups
Next: Charities Urged to Use Cellphone Messages to Get In Touch With Supporters
This is not an unfamiliar story.A memeorial fund established by the deceased auditor at The University of Texas Southwestern Medical Center at Dallas left his estate to the university for training.It has been used for Texas Rangers baseball tickets,parties,meals,and anything but training.The guy has been dead for more than twenty years but the abuse of his fund lives on. When confronted by the local media in Dallas,the university declared they had the right to spend the funds as they deemed fit.They had their internal auditor declare all expenses “legitimate”.Reminds me of theold expression,“you lie and I’ll swear to it!”. The university owes its donors stewardship and accountability.
— Brent Mar 21, 09:08 AM #
This is a curious case. The Bogoni’s gift fell short of the full funding needed to complete the project, do donors often insist on providing full funding?
— Bill Mar 24, 01:33 PM #