A $250M donation is a pretty big deal, especially for a small college like Centre College, in Danville, Ky. They recently made a lot of waves for this donation, but unfortunately it was for the wrong reason. Apparently the donation was contingent on a “significant capital market event”, that being $3.4 billion loan deal involving a large privately held company that provides software and services to car dealers. When the deal did not happen the gift that was promised, faded away.
The problem is, the College had made the gift public already. One lesson here is that perhaps it is better to hold off on making announcements on large gifts until they are actually in the bank. Of course we trust donors and their pledges, but often the financial markets rule, and those are things that cannot be trusted. I wonder if someone at the College lobbied to not announce it, and was overruled by a higher up? Read more »