Fwd: ASU Origins to MIT Media Lab - Enhanced Education
attached is the signed authorization =rom Enhanced Education
regarding Leon Black can you please provide =alculation on the 467,150 amount to be transferred as Mr Epstein was =nder the impression from previous conversations that the amount was =loser to 700,000
thank you
Richard Kahn
Thank you for the Enhanced Education =uthorization. I will send the Black calculation
on Monday.
Sent from my iPhone
Thank you Gretchen.
Ginny =lease advise when I can expect as i would like to finalize ASAP. Thank =ou.
Richard Kahn
Richard Kahn
HBRK Associates Inc.
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can you please send the =alculation this am..
thank =ou
rich
Dear Mr. Kahn,
I received your voicemail as well as your request below. I'm sorry it's been a bit for me to respond. I have been in meetings all morning and was traveling last week, so there has been a lot to catch up on.
I thought it would be good to share with you our method for thinking through many gifts that came in for the Origins Project, some of which have been spent on work at ASU on the project and some that remain unspent.
We have received over 100 gifts for this project since 2009 totaling $3.3 million. Since the numerous gifts come in with various timings and amounts and the use of the funds also happens with various timing and amounts, it is not practical to provide an exact accounting first in/first out to see which actual dollars were spent. So instead, we looked at the data for natural break points to estimate how much of the remaining funds might be available.
In negotiations with Mr. Krauss, we agreed that if requested we would return gifts to donors based on the following criteria. Please notice that in doing so, we are assuming that the earlier gifts would likely be spent in total and later gifts might have some portion left over.
Criteria A — we would return 100% of certain gifts (greater than $4000 each donation) that were received after 7/1/2017, if requested by the donor.
Criteria B — we would return some percentage of the very large gifts (greater than $300k cumulative from one donor) based on a calculation of how much might be left of the original gift.
For Enhanced Education's request below, Criteria A would apply and we have agreed to refund or redirect the $25,000 gift that we received on 8/3/2017. The earlier gifts from them are presumed spent. Thank you for providing the letter from them.
On the attached spreadsheet, I am sharing the calculation for Criteria B. The calculation looks at the amount of very large gifts to total gifts and the amount of total gifts that remain unspent. Using that information it determines that of the $2.6 m of very large gifts, $607k remains unspent and that amount is pro-rated between the two qualifying very large donors. The Leon Black Family Foundation is represented as Foundation B on this spreadsheet.
I'm sorry for the confusion between conversations and the calculated amount. As a nonprofit and in considering our fiduciary responsibility to all donors and to the institution we exist to support (ASU), this is the fairest approach. We have decided to allow re-direction of the remaining gift funds in place of a refund of the remaining gift funds in an effort to accommodate the needs of the donors.
Thank you for the support provided to ASU while Dr. Krauss's work was conducted here. Please feel free to contact me again at or via reply to this email if you have any questions.
Thanks,
Ginny
Mr.=Kahn,
I have asked Ginny =eSanto, ASUF Treasurer, to send you the calculation for the Black =amily contribution to the Origins Project.
Thanks,
Gretchen
Gretchen Buhlig
CEO, ASU =oundation
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TOGETHER. OUR POTENTIAL IS LIMITLESS
Please see below and attached. In the spreadsheet, you can see that there were 2 donors whose remaining funds added together totaled the $607 (cell J-26). The part that related to the Black's gift is marked as Foundation B which totaled $467.150.08 (cell I-26).
Thanks,
Ginny
i reviewed the spreadsheet and do not understand the following:
a) way was Foundation A included in return of proceeds when their gifts were from 2009-2015
In Dr. Krauss's termination agreement from ASU, it was committed that we allow for the refund of gifts that fall into 2 categories:
Any donor who gave $4000 or more since 1/1/2017 would be considered eligible for refund of those gifts;
Any donor who gave $300,000 or more since 2010 would be considered eligible for refund of those gifts.
Therefore we included all of Foundation A's gifts. There were over 500 individual gifts into the project account and of them, there were only 2 that exceeded the $300,000 amount during fiscal year 2010 - 2019. However, it is a moot point since Foundation A did not request a refund or redirection.
b) it appears that only 707,122 was redistributed however your schedule shows 1,209,479 remains
The termination agreement also stated that ASU Foundation would determine how much of the gifts were considered unspent. It was determined that 35% (796,509) of the gifts given throughout the 10 years remained unspent and that of the total amount of gifts given 76% related to the 2 large gifts.
The 707,122 is the amount that is eligible for refunding. We received around 10 requests for refund and we allowed certain donors (led by you) to redirect their donations to MIT Media, which we agreed to in the spirit of cooperation. The funds remaining in the account, after all refunds and redirections are completed, is considered to be from other donors who have not requested refunds or who were ineligible to make that request.
Please remember that there is no legal requirement for the foundation to refund or re-direct gifts since all gifts are irrevocable.
please advise
thank you
Richard Kahn
HBRK Associates Inc.
Explanations to your questions are in red below.
Thanks,
Ginny
Virginia (Ginny) DeSanto, CPA, CGMA
Chief Financial Officer and Treasurer
ASU Enterprise Partners
ASU Foundation — University Realty
Skysong Innovations — ASURE — RCASU
Richard Kahn
HBRK Associates Inc.
Begin forwarded message:
From: Virginia DeSanto
Subject: RE: ASU Origins to MIT Media Lab - Enhanced Education
Date: February 27, 2019 at 11:34:31 AM EST
To: Richard Kahn
Cc: Gretchen Buhlig
Explanations to your questions are in red below.
Thanks,
Ginny
Virginia (Ginny) DeSanto, CPA, CGMA
Chief Financial Officer and Treasurer
ASU Enterprise Partners
ASU Foundation — University Realty
Skysong Innovations — ASURE — RCASU