Alumni of New College plan to file a lawsuit seeking transparency regarding donations.

Four former board members of the New College Foundation are prepared to take legal action against the institution’s leadership, raising serious concerns regarding the potential misuse of donor funds. In a draft complaint sent to New College administrators, the group accuses President Richard Corcoran and Foundation head Sydney Gruters of improperly allocating over million in foundation resources to support the institution’s athletic program and Corcoran’s substantial salary, which approaches 0,000.

The New College Foundation operates as a direct support organization, inherently distinct from the college itself, serving primarily as a collector and distributor of donations intended for the school’s benefit. The foundation board members, particularly former alumni association chair Ben Brown, who resigned in March citing managerial concerns, argue that there has been a longstanding lack of accountability regarding the usage of these funds. Brown noted that the foundation has not provided board members with access to critical financial documents, which include specifics on the original intentions of donor contributions.

The allegations underscore a growing frustration among the former directors regarding the allocation of funds, especially as New College appears to increasingly depend on its endowment. Brown remarked that the current spending habits raise alarms, particularly with the considerable financial resources directed toward athletics and administrative salaries, which seem to contravene the wishes of the donors. He views the situation as a significant indicator of broader mismanagement within the college, labeling it a “financial nightmare” that could eventually lead to severe repercussions.

Further complicating the matter, the draft complaint suggests that there have been occasions where designated scholarships intended for eligible students have not been awarded, despite qualified recipients being available. Additionally, the group alleges that Corcoran and Gruters have publicly defamed both current and former directors by asserting breaches of fiduciary duty regarding the oversight of foundation funds.

In light of these claims, the former directors are insisting on transparency regarding the financial records that clarify both the intended use of donor gifts and their actual application by the college. They have set a deadline of June 5 for the institution to comply with their requests, after which they intend to initiate legal proceedings in Sarasota.

As this situation continues to unfold, it highlights the critical issues surrounding financial stewardship in educational institutions and the responsibilities inherent to donor-funded initiatives. Media News Source will continue to monitor developments concerning this significant dispute at New College.