Financier Gives $40-Million to NYU for Urban-Planning Institute

How much: $40-million

Who gave it: Donald Marron, chairman of Lightyear Capital, a private-equity firm in New York

Who got it: New York University

Where the money will go: To establish the Marron Institute on Cities and the Urban Environment, a center that will conduct research and train students to help make cities around the world more livable and sustainable. The university plans to collaborate with government agencies and businesses, and expects to hold a competition to solicit ideas.

Donor’s connection to the university: Mr. Marron joined NYU’s Board of Trustees in 2006 through his longtime friendship with Martin Lipton, chair of the board.

How the gift came about: About a year ago, John Sexton, president of NYU, gathered board members to talk about his idea for the institute. Mr. Marron was intrigued and decided to donate.

Why he gave: The university’s activities in 16 cities around the world were a big influence, Mr. Marron says. “The problems of cities are very complex and getting more complex. You can list the things that cities offer people—[they] create opportunities, manufacture jobs, lift income for some, provide access to culture inexpensively, and create neighborhoods, which in turn generate families—but there is no city, new or old, that has the capacity to do all those things well.”