Audit office advisory review recommends closer alignment, shared services and system‑level support for campus foundations

An internal advisory review presented to the Board’s audit and outreach committees recommended a set of practical steps to strengthen fundraising and operational capacity among Minnesota State campus foundations, and trustees approved a motion to convene a work group to pursue several of the review’s recommendations.

The report, prepared by the system’s internal audit office with advisory support from Baker Tilly, surveyed foundations and campus leaders at community colleges and universities. Audit Chief Amy Jorgensen and Jen Davosy, system director of Foundation Services, said responses described strong local commitment to student support and high board engagement but also wide variation in capacity, staffing models and strategic alignment between foundations and their colleges.

Baker Tilly partner Chris Jeffrey summarized five primary observations: (1) strategic alignment is uneven — foundations often receive priorities after institutional plans are finalized; (2) many foundations operate with very small, multitasked staffs and lack specialized roles such as grant writers or donor‑relations coordinators; (3) foundations and campuses do not consistently coordinate pursuit of private or philanthropic grant funds; (4) foundation boards often recruit via informal networks, limiting board diversity and DEI‑focused nominating practices; and (5) foundations expressed strong interest in shared services (donor database support, grant technical assistance and compliance help).

Recommendations in the advisory report ranged from low‑cost tactical steps (joint annual work plans linking foundation activity to institutional priorities, co‑created KPIs and regular strategic check‑ins) to medium‑scale actions (system‑level shared services pilots, staffing‑model guidance for small/medium/large foundations, and a statewide needs assessment for shared service design). The report also encouraged board and system‑office messaging that frames philanthropy as a strategic priority and invites collaborative, non‑prescriptive engagement rather than mandates.

Following the presentation, trustees debated next steps. Foundation and campus leaders at the table — including Janelle Koepke (Riverland Community College) and Nathan Poffliet (Southwest Minnesota State University) — urged early involvement of local foundation chairs and board members and recommended pilot shared services focused on grant support and donor database operations. Committee members reiterated that foundations value autonomy and that system‑level proposals should be collaborative.

The joint audit and outreach and engagement committee voted to recommend that the full board: (1) affirm philanthropy as an alternate revenue stream for Minnesota State colleges and universities, (2) endorse creation of a leadership work group to review the advisory report and prioritize actions, and (3) continue the separate work group exploring opportunities for major private funding at the system level. The committee asked the chancellor and staff to report back in the fall with an update. The motion passed on a roll call of trustees present (recorded as all ayes).

Audit staff said the next steps will include convening the recommended leadership work group with foundation board chairs, presidents, system office representatives and foundation executive directors; developing a short, consistent staffing‑data template to assess foundation capacity; and scoping pilots for shared grant‑development and donor‑database support. Trustees asked the system to ensure foundation chairs and local boards are engaged at the outset so proposals are collaborative and respect foundations’ independence.