As part of an ongoing effort to force the ISU Foundation to open all of its financial records on donations and gifts it receives for Iowa State, new, informal allegations have been made accusing the Foundation of impropriety.

Mark Gannon, former land manager for the College of Agriculture and owner of Gannon Real Estate Services Inc., filed an appeal before the Iowa Supreme Court seeking to open Foundation financial records. The appeal came after a Story County District Court ruling that the Foundation’s financial information is not subject to open-records laws. Oral arguments were heard before the Supreme Court in September, and a ruling is expected later this month.

Despite the ruling’s pending status, Gannon said he wanted to test the Foundation’s public information policy. He said he has found questionable evidence he believes highlights Foundation mismanagement of money used from an estate given to the Foundation.

Gannon said he found discrepancies in the Foundation transaction and the transfer of funds from the Foundation to the university when requesting records on a farm that Edith Lagerstrom had willed to the Foundation to benefit Iowa State’s Brunnier Art Museum.

He said information on the gift provided by the Foundation and university do not account for all the gift money. Specifically, Gannon said, it is unclear from the records how much money from the account has been transferred to the university and how much the Foundation still controls.

He said he fears the Foundation will not use this remaining money according to Lagerstrom’s wishes.

“I am asking for the information in much the same vein as the Marie Powers situation,” Gannon said, citing the Foundation’s controversial sale of Powers’ farm in 1996. “You have a donor without any relatives to look after her affairs and left a significant portion of her estate to ISU. These situations are ripe for money to be used for other purposes without anyone looking after the disposition.”

Foundation officials said all of the estate’s money has been given to the Brunnier Art Museum.

“Mrs. Lagerstrom did talk with individuals at the Foundation and the university in advance of her death,” said Sarah Buck, vice president for the ISU Foundation. “Mrs. Powers did not, and all proceeds from the Lagerstrom estate were placed in the fund for the museum as specified by the donor.”

According to Foundation records, $641,389 of the Lagerstrom estate fund was given to the museum. Buck said a portion of the fund in a Foundation account is designated for use by the museum, and the museum did not request to transfer it to the university.

“Mrs. Lagerstrom’s wishes have been fulfilled,” Buck said. “Obviously, she wants it to be spent for the museum; that’s why it’s been put into an account to be used at the discretion of the museum director. He just hasn’t spent it yet, and there’s no restriction on having to use that money quickly.”

Gannon disputes such statements, saying he cannot trust the Foundation’s word until he can look at the gift amount himself.

Gannon said this is why he asked for assurance through written agreement from Lagerstrom that she requested her estate information be kept confidential.

The Foundation refused, stating its policy is to release such information only if the donor provides written approval for the disclosure. Buck said Lagerstrom gave no approval.

The Foundation’s public information policy says that it does not disclose sensitive or personal information, including trust documents, wills, endowments and gifts.

Buck said she and the Foundation provided Gannon all the information he requested except for the gift amount, which it is legally restrained from giving.

“Much as you expect a bank to keep your account records confidential and as much as you expect a doctor to keep your medical records confidential, so do donors expect their private financial records to be confidential,” Buck said.