Foundations at several Mississippi universities, including USM, are protesting a proposal by the college board to make those foundations more transparent by publicizing financial statements, operating agreements and formal policies to name a few.
Delta State University, Mississippi State University, USM, Mississippi University for Women, Jackson State University and two foundations at the University of Mississippi all contributed to a letter which outlines their concerns over the proposal, which they feel will give the state too much power over their affairs.
The foundations also worry that the policy could force them to become less autonomous and expose their donor records.
“[The proposal] unnecessarily encroaches upon independence and thus threatens their status as private entities,” the letter said.
But Director of the USM Foundation David Wolf paints a more optimistic picture. He said all the universities in question have worked together with the college board to update policies in the proposal.
“Most of the proposal was mutual,” Wolf said. “We are not against it.”
Wolf added that discussions were underway in the university community about the ability of these organizations to remain private.
“The alumni associations have some flexibility and are able to protect the privacy of our donors,” he said.”
Ole Miss Chancellor Don Jones said one of the reasons donors prefer to give to the foundations is the chance to remain anonymous.
“That’s a critical issue for them,”Jones said.
University foundations are not organizations under the control of the universities. Instead, they are contracted, non-profit organizations which are in charge of private fund raising.
The proposal in question, which was approved for a first reading during a meeting of the college board last Thursday, stems from a report by the Mississippi Legislature’s Joint Committee on Performance Evaluation and Expenditure Review.
In its report, PEER brings up the fact that no external governmental agency has authority to oversee all of the operations of the foundations.
The IRS can audit some information from the foundations due to their tax-exempt status, and the state can review use of state funds provided to the foundations by the university, according to PEER’s report.
The report arose questions regarding the propriety of certain transactions, including the transfer of funds between foundations. It also mentioned concerns about “questionable contracting practices.”
The report also said university foundations should provide at least public copies of financial statements which are audited from them.
They also would like for operating agreements with the universities and strategic plans and policies, among other records, to become accessible.
USM President Martha Saunders believes the board would like to support the mission of the foundations.
“I believe the IHL board is sincere in its efforts to bring clarity,” Saunders said.
Alan Perry, a member of the college board who governs its legal committee, understands that.
“The foundations provide a great deal of support to our universities,” said Perry. “We have a duty to make sure there is appropriate transparency and accountability.”
USM received an anonymous $6 million gift this year, which the university foundation handled. Currently, the state is unable to see how that money is being used by the foundation.
The school has received criticism for a $1.89 million plane leased through the USM Foundation last December. Though the school released the lease agreement and flight records to local media in August, the website www.flightaware.com, which tracks flights around the country, is unable to track the plane’s flights at the request of the university foundation.
Let the sun shine in.
Proposal upsets university foundations
Published: Tuesday, September 22, 2009
Updated: Tuesday, September 22, 2009 01:09








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