MU not worried about problems at Princeton
Officials are confident in current donation policies.
Published Sept. 11, 2007
Although a legal battle between Princeton University and the family of a Princeton graduate has universities examining their donation policies, MU officials are confident in the control the university has over donations.
The Associated Press reported that William Robertson is suing Princeton, claiming that $35 million in stocks his parents gave to Princeton's Woodrow Wilson School of Public and International Affairs is being used improperly.
He claims the money was meant specifically to train students for work in the U.S. government, and the university isn't doing this.
According to a statement on the Princeton Web site, the university does not accept money unless it had control over the funds.
It said that the plaintiffs are seeking to take control of the foundation themselves and remove Princeton as the beneficiary.
Princeton maintains that the school of government students are well prepared for careers in government service at local, state, federal and international levels and, in keeping with the emphasis sought by the donor, employs faculty strong in international affairs.
According to statements made on the Princeton Web site, in pursuing this lawsuit, the plaintiffs are "seeking to use this lawsuit to redefine some of the fundamental principals of American philanthropy."
Officials at MU said they are confident in current donor policies.
"The university goes to great lengths to follow requests donors have placed," UM system General Counsel Bunky Wright said.
Wright said he has been questioned numerous times about financial donation issues, and he always goes back to the documentation.
"It all depends on what the documentation says," he said. "Normally speaking, if the document is clearly written, the courts will follow what it says."
Wright said he refers to state law if there are any further questions.
Development Department spokeswoman Beth Hammock said members of the department work hard to respect donors' wishes.
"Sometimes they give it for use at our discretion or the chancellor's or dean's," she said.
According to Hammock, donors can specify schools or colleges to receive their money, and alumni often donate to their school.
They can also make interdisciplinary donations, which consist of funds given for an issue, such as autism, and different colleges will work together with the funds.
Hammock said endowments are another option. With an endowment, the initial donation money is invested, and a portion of the earnings from the account is used every year.
Hammock said donors were kept informed of what their money is being used for in a number of ways.
Newsletters, alumni events, individual endowment letters and development officers are all used to update donors.
She said individual endowment reports are sent to the family or trustees of deceased donors.
"They do not have control of the exact spending," she said.
According to Linda L'Hote, associate vice chancellor for development, the federal Internal Revenue Service regulates some of the rules regarding donor or heir involvement in donations.
If the donor has too much control, the IRS could rule that the donation is a business transaction, which could have tax consequences for the donor.