Politically motivated donors can gain influence at public universities, which have skirted open government laws to keep donors happy.
The controversy reached the Virginia Supreme Court, which in December 2019 ruled that George Mason’s foundation could keep its donation details private.
The donor’s identity cannot be kept secret if the donations impose terms or conditions that “direct academic decision making.” “We are not talking about run-of-the-mill donations,” she noted, “only those that are trying to steer the direction of the university.” At George Mason University, IRS 990 forms allowed emeritus professor Jim Finkelstein to dig deeply into the 2016 donation of $13.4 million from the Charles Koch Foundation to the George Mason University Foundation, four years before the transparency legislation that became law in Virginia this year.
Many of the details of those transactions remain hidden and are not affected by the new Virginia laws, which took effect on July 1. The Mercatus Center is not a formal part of the university – although on its website it notes its “40 years at Mason.”
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