In a lawsuit filed on Friday, a charity based in New York City is demanding the return of $25 million that it donated to the City University of New York ten years ago. The charity claims that the university failed to honor its agreement to utilize the funds for the construction of a new community college facility.
In 2013, the Stella and Charles Guttman Foundation, founded by the late New York businessman Charles Guttman in 1959, generously donated a significant amount of money to CUNY’s New Community College in Midtown. The agreement was made that the college would be named after the Guttman family and eventually relocated to a new, permanent location to accommodate a larger number of students. This donation was one of the largest ever given to a two-year college in the United States.
According to the lawsuit, CUNY violated its agreement with the charity by failing to construct a new campus for the institution, which was later renamed as Stella and Charles Guttman Community College.
According to the lawsuit filed by the charity, an endowment fund was created tying $15 million of the donation to the new facility. The charity is seeking reimbursement of the money along with interest, amounting to a total of $21 million.
According to the lawsuit, if CUNY fails to initiate the construction of the new GCC facility within ten years from the date of the agreement, the foundation will be entitled to the refund of the complete balance of the Success Fund, along with any additional principal from income or realized gains.
CUNY declined to provide any comment on the ongoing litigation, according to a spokesperson. Meanwhile, the foundation’s attorneys have not yet responded to several requests for comment.
As per the Guttman Foundation’s website, their philanthropic endeavors are primarily centered around enhancing the quality of educational programs for children and youth residing in low-income localities. The website mentions that in 2013, the foundation made an “investment” in CUNY to support graduates from community colleges within the CUNY system in obtaining their degrees.
