Kentucky State University Board of Regents Votes to Separate from the KSU Foundation, Inc.
FRANKFORT, KY – In a special called meeting on Monday, June 24, 2024, the Kentucky State University Board of Regents voted to separate from the KSU Foundation, Inc. This decision marks a significant step towards ensuring greater transparency and accountability for the benefit of the students and the mission of Kentucky State University.
Established in 1968 by Kentucky State University, the KSU Foundation, Inc. (Foundation) was founded to raise funds for the sole benefit of the students and mission of Kentucky State University (University). Initially, the Trustees of the Foundation were appointed by the University Board of Regents until this practice was ended in 1989.
Over the past year, the Foundation and its Trustees have been invited to discuss their partnership with the University and present their operational information. Despite these invitations, the Foundation has yet to share the requested financial information with the Board of Regents nor the University, even though such information was first requested in writing in June of 2023.
Additionally, contrary to the wishes of the University, the Foundation has and continues to expend funds on legal battles with a local newspaper. Consequently, on April 19, 2024, the Board of Regents voted to freeze the University's relationship with the Foundation and instructed the administration to obtain records and information from the Foundation.
To date, none of the requested items have been received, their lawsuit continues, and a revised Memorandum of Understanding—which would have restored the relationship between the Foundation and the University—was not accepted by the Foundation according to their attorney.
Tammi Dukes, the Chairperson of the Board of Regents, expressed optimism about the future of the University, stating, "Kentucky State University (KSU) was founded through an act and investment by the General Assembly and private supporters in 1886. Now, nearly 140 years later, I believe KSU is positioned for its best days to be ahead. We are here for our students and the countless generations of students to come. We cannot thank our supporters enough for their investment and their belief in the future of KSU.”
The Foundation has a reported 351 accounts and their last net assets shared with the University were $12,273,927 on June 30, 2022. Despite repeated attempts to receive updated information, the University has only received account values as of September 30, 2023, on 115 accounts. Meanwhile, the University maintains its own endowment and it has a value of $22,290,529.82 as of May 31, 2024.
The KSU Board of Regents has directed the administration to coordinate the transfer of all University accounts and the accounts established for the benefit of the University's students and programs from the Foundation by September 30, 2024. All donor agreements and account restrictions will be honored by the University.
The separation from the Foundation underscores Kentucky State University's commitment to moving forward transparently and ensuring that all donor funds are utilized effectively for their intended purposes, thereby safeguarding the interests of its students.