Higher-education foundations facing new scrutiny

Legal cases altering groups' private status

By Jeff Kass, Globe Correspondent April 1, 2005

DENVER -- University foundations across the country have become wealthier, more sophisticated, and responsible for a larger chunk of funding for higher education. But in recent months, court rulings and government scrutiny have chipped away at their private status and opened their books to greater scrutiny. Amid a football-recruiting scandal at the University of Colorado that, in part, led the university president to resign last month, the CU Foundation has agreed to have the state auditor examine its records, said Glenn Porzak, vice chairman of foundation board of directors.
In Kentucky, various court rulings have forced the University of Louisville Foundation to release the names of corporate donors. The same is true for the Iowa State University Foundation. That state's Supreme Court has ruled that foundation records were open to disclosure because the organization was ''performing a government function."
More intense examination of education foundations reflects a trend in society toward greater openness, and a concern over corporate scandals, according to foundation officials and trade groups.

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