Court rules in favor of ISU Foundation
September 11, 2003
In a court ruling Thursday, an Iowa district judge dismissed a lawsuit filed against the ISU Foundation.
The main intent of the lawsuit was to force the Foundation to open private records to the public. Prosecutors claimed the Foundation’s relationship with Iowa State makes it a “quasi-government agency,” according to Daily staff reports.
District Judge William Ostlund ruled in favor of the Foundation, allowing it to keep records private.
Mark Gannon, a former employee of the College of Agriculture, and Arlen Nichols, a retired Des Moines businessman, filed the lawsuit in August of 2002. According to Daily staff reports, the suit was filed because the Foundation refused to release information, including minutes of meetings, detailed accounts of income and spending since 1995 and details over the handling of trusts.
The call for open records was aggravated after the Foundation sold farmland belonging to Marie Powers, who had requested the land be left to the Agriculture Foundation after her death in 1995. The Foundation considers information such as wills, personal financial records and trust documents private, according to its Web site, www.foundation.iastate.edu.
According to court documents, the Foundation motioned for a summary judgment and argued it should not be considered a government body, subject to open records laws, because it is a private, not-for-profit entity, meaning the Foundation is not required to disclose its private records.
The court ruled the Foundation is not subject to the open records requirements of Iowa Code Chapter 22 and ruled its records are not a matter of public record until funds are dispersed to Iowa State, according to court documents.
In a statement released by the Foundation, the organization said it is pleased with the ruling.
“We believe the court’s order was thorough and well-written. The Foundation remains committed to being open and accountable, while respecting the privacy of our donors,” the statement said.
Jason Menke, assistant director of communications for the ISU Foundation, said the lawsuit was an issue of protecting the privacy of their donors. Many people wish to remain anonymous and “do not want recognition for their generosity,” Menke said.
Gannon and Nichols could not be reached for comment.