news story / By John C. Osborn

Crumbling Foundation

Humboldt State moves to take over independent fundraising arm

(Sept. 23, 2010)  A group of about 50 people — Humboldt State University administrators, faculty and staffers on various projects — congregated last Thursday in one of the stadium-seating classrooms in the Natural Resources building. The topic: The possible end of the Sponsored Programs Foundation, a quasi-independent body that administers funds donated to university projects.

In the face of a state mandate, insufficient reserve funds and criticism over record-keeping and oversight, administrators at Humboldt State are seriously exploring the possibility of dissolving the Sponsored Programs Foundation and taking it under its own wings — moving it “stateside,” in the university’s jargon.

Robert Snyder talking about the possible move in the future to dissolve the foundation and bring it stateside. PHOTO BY KARLA RIVAS

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Whether or not that ends up happening, Sponsored Programs is in serious trouble. A recent executive order from the California State University Chancellor’s office took aim not only at HSU’s “auxiliary” organizations, such as Sponsored Programs, but at similar arrangements throughout the CSU system. The upshot, in this case: Sponsored Programs must quickly transfer $3 million — almost three-quarters of its capital — into special funds directly controlled by the university.

The order seems to have baffled even Humboldt State administration. “I don’t know why we have to do this,” said HSU Provost Robert Snyder in an interview earlier this week. “But we do.”

The Sponsored Programs Foundation is a non-profit, auxiliary entity to the university that administers scholarships, grants and contracts for research and creative endeavors related to university activity. The foundation acts as an umbrella for faculty and campus organizations to acquire grants, and also assists in oversight to make sure money is being allocated in the right way.

The massive loss of capital to university-run accounts could well spell the end of the independent foundation, according to Director Juan Carlos Morales. Sponsored Programs only has $4.2 million cash in total; subtract $3 million from that and it is doubtful that the organization will be able to meet its obligations.

“You have to have a stream of cash flow to be solvent,” Morales said.

That’s why the university is considering eliminating the Sponsored Programs Foundation altogether and taking up its former functions itself. By bringing the foundation into the university, Snyder said, the university could spend more money on personnel for oversight and record-keeping activities, and to help bolster reserve funds. Currently, the foundation subcontracts such work to the university at a cost of about $440,000 per year.

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