Three administrators and several professors faced off yesterday with thousands of dollars in scholarships at stake.
On trial was the University Foundation and its investment procedures.
Currently, the foundation invests most of its gifts under the "Stable Value Endowment Policy."
According to the policy, some of the earnings on investments are returned to the endowment, but only enough to keep the initial donation at the same amount. This allows the Foundation members to maintain the same level of scholarship money throughout the years.
The rest of the earnings, however, are parlayed in the Foundation's general budget, where the board of directors can use it to fuel whatever programs they prefer.
So, while the scholarship remains the same over the years, the foundation's budget gets bigger and bigger.
Professors on Monday argued that the policy is unfair to donors, whose gifts shouldn't subsidize the Foundation's ambitions.
Throughout the forum, Tom Kinghorn, vice president of finance, defended the policy, saying that donors were quite content with the policy.
Then an economics professor asked Kinghorn what he would say if other foundations on which he served wanted to use the stable value endowment policy.
Kinghorn's reply? It would depend on the wishes of the donors.
Yet, no one at Ball State has taken a formal survey of Ball State's donors, though they are the main players in this debate. Neither proponents of the policy or its detractors can prove they have donor support or objection.
The university should taken a formal and official survey of its donors to see if they prefer the policy in place. They should ask donors if they would prefer that more or all of their money go to their designated scholarships.
Basically, they should back up claims that donors are truly content.,,2(-í+â-¢"?editorial 4-16DNEditorial,,2SORT+â-ä2AUDT
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