After Canceling a Donation, a Big Donor Decides to Give

Herbert A. Wertheim, who in 2006 rescinded a $20-million pledge he had made two years earlier to Florida International University, in Miami, has decided to give the money to the university after all, Florida International officials have announced.

Dr. Wertheim, an optometrist and chairman of Brain Power, a Miami company that manufactures optical chemicals and instruments, in 2004 pledged to give the university $20-million to establish a medical school. The state of Florida promised to match that amount, so the university would end up with the total of $40-million it needed to build the school of medicine, which was to be named for the philanthropist.

Dr. Wertheim, a university trustee at the time, originally agreed to pay off the $20-million pledge in about 30 days.

However, after his accountant informed him that he wouldn’t be able to take a tax deduction for the entire $20-million, he asked Modesto A. Maidique, the university’s president and a close friend of his for two decades, if he could instead pay off his pledge incrementally over three years.

Federal law limits the percentage of income taxpayers can write off each year. He said such an approach would help him save what he estimated to be about $4-million to $6-million on taxes.

“Sometimes your good wishes and what you want to do don’t live up with your reality,” said Dr. Wertheim.

But Mr. Maidique and other officials at the university didn’t like the idea and told Dr. Wertheim they were concerned that stretching out the payments would jeopardize the state’s $20-million match (they also told him they thought they could attract a large donation from another donor.)

Friendship Continues

The two parties could not reach an agreement, and in 2006 Dr. Wertheim, believing that the university could indeed find another big donation, rescinded his pledge and resigned from the institution’s Board of Trustees.

Despite some hurt feelings on both sides, Dr. Wertheim said he remained friends with Mr. Maidique and was kept abreast of the medical school’s progress in seeking a donor.

When another donor didn’t materialize, John Rock, dean of the College of Medicine, approached Dr. Wertheim six months ago and asked him if he would consider making a pledge again, and he agreed.

He committed $20-million, and recently paid $5-million toward that pledge. Dr. Wertheim said he plans to pay off the rest of money over the next three years.

“I’m 70 years of age and this is probably my last hurrah. I would like to be instrumental in building up the medical school,” said Dr. Wertheim, who has previously given the university a total of about $18-million for other projects.

He said he doesn’t think he needs to become a trustee again, but he plans to help the university with fund raising and publicizing the medical school, which will finally be named the Herbert Wertheim College of Medicine, and will be eligible for a match from the state.