Yale Daily News

Updated: Saturday, November 21, 2009 7:35 p.m.

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Princeton at risk of losing donor’s gift

In light of dispute, universities may work to ensure donations are spent in accord with requests

Contributing Reporter
Published Friday, November 2, 2007

Elite universities gather hundreds of millions of dollars every year from rich alumni. But what happens when a donor wants a refund?

A judge ruled last Thursday that Princeton University could potentially lose $880 million in a lawsuit filed by the children of two of its deceased donors. The dispute, which Yale officials have been watching closely, could have significant implications for universities nationwide, potentially leading to more careful solicitation and use of restricted funds in order to prevent conflict with donors.

In 1995, Yale re-evaluated its handling of...

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