Editorial: Higher-Education Foundations Should be Transparent

The Modesto Bee's publisher and president says the funding practices of higher-education foundations should be more transparent.  The non-profit foundations are typically controlled by campus presidents and board members and are funded by donors, and they are not subject to the California Public Records Act.  

Governor Arnold Schwarzenegger could have increased transparency of these higher-education foundations by enacting Senate Bill 218, but he vetoed it instead.  

Click here for more about how a loan from the Sonoma State University Academic Foundation to one of its board members will cost the school at least $250,000  and could mean reduced student scholarships and campus events for the 2010-11 school year.

Calif. bill seeks to include university foundations in FOI

California Sen. Leland Yee has introduced a bill that would open the records of auxiliaries, private foundations created to support public universities, The Los Angeles Times reported. The legislation proposes that foundations should be subject to the same disclosure requirements as universities. His bill does offer an exemption that would allow donors to give anonymously and allow foundations to withhold the names of donors as long as they didn't receive some benefit from the foundation.

As they stretch every dollar, California's public universities have understandably turned to novel ways of raising and spending money. Many have established private foundations, known as "auxiliaries," that solicit contributions from private donors and then hand that money out in the form of grants, scholarships and the like. Auxiliaries today supply the Cal State system with roughly 20% of its $6.7-billion annual operating budget.

The trouble arises when those foundations use their vague legal status -- they are private entities affiliated with public universities -- to shield themselves from scrutiny. And the public has ample reason to question how some of this money is being spent. A foundation affiliated with Sonoma State University lent money to a former member of its board, then got stuck with a bill when he could not pay the money back. A foundation affiliated with Cal State Fresno built an arena on campus and awarded some donors luxury boxes; when the Fresno Bee asked for the names of the donors and what they had contributed, it was denied, and a court held that the California Public Records Act did not cover the foundation. And a former chancellor of San Francisco City College has been indicted on charges that include allegedly diverting money from a foundation account to pay for a club membership, liquor and other expenses.

More here.

Clinton Intervened on Behalf of Foundation

Secretary of State appointee Hillary Rodham Clinton intervened at least six times in government issues directly affecting companies and others that later contributed to her husband's foundation, an Associated Press review of her official correspondence found.

The overlap of names on former President Bill Clinton's foundation donor list and business interests whose issues she championed raises new questions about potential ethics conflicts between her official actions and her husband's fundraising. The AP obtained three of the senator's government letters under the Freedom of Information Act.

Clinton was to begin her confirmation hearing Tuesday before the Senate Foreign Relations Committee.

Under an agreement with President-elect Barack Obama, Bill Clinton recently released the names of donors to his foundation, a nonprofit that has raised at least $492 million — including millions from foreign governments — to fund his library in Little Rock, Ark., and charitable efforts worldwide on such issues as AIDS, poverty and climate change.

The letters and donations involve pharmaceutical companies and telecommunications and energy interests. An aide to the senator said she made no secret of her involvement in many of the issues. Bill Clinton's foundation declined to say when it received the donations or precisely how much was contributed.

More here.