Foundations

As they stretch every dollar, California's public universities have understandably turned to novel ways of raising and spending money. Many have established private foundations, known as "auxiliaries," that solicit contributions from private donors and then hand that money out in the form of grants, scholarships and the like. Auxiliaries today supply the Cal State system with roughly 20% of its $6.7-billion annual operating budget. The trouble arises when those foundations use their vague legal status -- they are private entities affiliated with public universities -- to shield themselves from scrutiny.