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December 19, 2014

Foundation Troubles Jeopardize Grants to N.D. University

North Dakota is withholding some $663,000 in awarded or pending grants to Dickinson State University because of issues with its nonprofit fundraising affiliate, which went into receivership earlier this month, the Grand Forks Herald and the Associated Press write. The money was due under a two-year-old state program that provides $1 for every $2 raised by state universities' foundations.

State officials cited several concerns about financial problems at the DSU Foundation, including a dispute with a building developer that led to a $1.7-million arbitration payment and the departure of the organization's CEO. The state commission that oversees the grants "felt as though it wouldn’t be appropriate of us at this time to disburse the match dollars until we have every assurance that the accounts and everything is squared away out there," said Lt. Gov. Drew Wrigley, who heads the panel.