According to Eric Wentworth of the Council for Advancement and Support to Education in Washington D.C., there are no standards for accepting gifts in higher education.

"There are no general practices for reviewing offered gifts," Wentworth said. "There is a presumption that donors have good intentions and that it's good money."

Some Pledges Turned Away

Fundraising officials who have dealt with similar situations to the Pharaon pledge said there have been instances when universities have declined money.

For example, a BCCI pledge offer to the University of Pennsylvania was turned down recently, Nahm said.

BCCI made the offer after several of its officials had been convicted of money-laundering charges in Tampa in 1990, according to Nahm.

Nahm recommended turning down the gift because the Tampa convictions indicated that there was "enough circumstantial evidence that the bank was doing wrong."

BCCI made the offer because one of the senior BCCI officials was interested in economic research at Penn, said Nahm.

At Princeton, Wall Street financier Ivan Boesky pledged money in early 1986 and was indicted later that year for insider trading, according to Ramonat, who previously worked for the school. Soon after his indictment, Princeton rejected his pledge, Ramonat said