Gov. Bill Owens made the financial records of university fundraisers such as the University of Colorado Foundation subject to open records laws with a stroke of his pen Tuesday.
Owens signed into law House Bill 1041, by Lakewood Republican and former staffer Rep. Matt Knoedler, which requires private nonprofits to release financial information if their primary mission is to raise funds for Colorado public universities.
Knoedler, a CU graduate, sponsored the proposal in response to months of scandal involving the CU-Boulder athletic department, a controversy that included questions about how donations intended for scholarships had been spent.
In a release, Owens said he believes the new law will assure the “accountability and credibility” of private university fundraisers. “These foundations donate millions of dollars to our state universities and the public should know the nature and the amount of these donations.”
In December, the CU Foundation voluntarily released thousands of pages of financial records detailing its gifts to the CU-Boulder athletic department. The disclosures led to complaints that some donations for scholarships had been spent on country club memberships and other perks for coaches.
Knoedler thinks the law “will really help all of the CU fans out there just feel a little more at peace that everything’s above board,” he said. “Not that everything wasn’t, but just in case, we’re now sure of it.”
CU Foundation chairman George Sissel said he welcomed the new law as a national model for private foundations that raise money for public universities.
“The foundation has been supportive of this legislation throughout the process because it clarifies what private, institutionally related foundations must disclose, while protecting donor confidentiality and proprietary fundraising information,” he said in a release.
Under the new law, which took effect immediately, donor information is protected from public review, and disclosure is only required of foundations whose principle purpose is to support state universities. Nonprofits that make donations to universities but also do non-university-related work are not covered.
The new law requires universities to report all gifts over $250. It also requires them to report how they spend that money.
Staff writer Jim Hughes can be reached at 303-820-1244 or jhughes@denverpost.com.
