Kochs Spend Big To Promote Their Agenda At Ball State University

March 18, 2016

“The reason I explain this all is to highlight a key point — the Koch Brothers are known for making large donations when they want something” — Levi Todd, for the Ball State Daily

The Koch brothers are once again trying to buy influence and push their selfish agenda on college campuses. This time it’s Ball State University. In the past, we’ve covered Koch campus infiltration and curriculum interference at the University of Wisconsin, University of Maryland, and Utah State UniversityIndiana University, and Florida State University.

Despite outcry from students at Indiana University, the Kochs are back for more in the Hoosier State. The Charles Koch Foundation just joined up with “Papa John” Schnatter to send Muncie, Indiana’s Ball State University a combined $3.25 million, earmarked for the “John H. Schnatter Institute for Entrepreneurship and Free Enterprise.”

A recent report from the Ball State Daily News suggests that the terms of the grant agreement show “no signs of the money coming with strings attached.” Even Terry King, acting university president, insisted “that there were no stipulations with the grant” and that “Hiring and curriculum will still be managed in the same way the university usually does,” according to the Daily News.

But he’s wrong. That is simply not the case with respect to the campus’s new Koch-funded institute. But that should come as no surprise, because, as Ball State sophomore Levi Todd wrote in an op-ed on the grant: “the Koch Brothers are known for making large donations when they want something.”  The billionaire brothers don’t throw money around aimlessly — they always expect something in return.

More from the Daily News: “[I]f the university breaches the contract or fails to advance the mission of the institute, then both donors have cause for a possible termination.” That sounds like a stipulation.

And here’s the real kicker, from the actual Ball State-Charles Koch Foundation donor agreement:

The [Ball State University] Foundation shall submit an annual written report according to the schedule below to the [Charles Koch Foundation] for the Donor’s consideration…and an accounting of the expenditure of any Contributed Amount previously received. The [Charles Koch Foundation] shall review the Foundation Grant Report in good faith. If the [Charles Koch Foundation] approves the Foundation Grant Report, the [Charles Koch Foundation] shall make a contribution up to the amount listed in the below schedule to the Foundation, and the Foundation agrees to accept such Contributed Amount on behalf of the University as stated in the below schedule.

The Charles Koch Foundation’s agreement with Ball State entitles Charles and David Koch to an annual review of how their money was spent. And if the billionaires don’t like how Ball State spent their money, all they’ve got to do is cut off funding. That seems to be the definition of “strings attached.”

Unsurprisingly, Charles and David are insisting that the institute promote ideas and values in line with their ideological biases and self-interested agenda. The Charles Koch Foundation’sstated mission that the institute “become a national model for values-and ethics-based entrepreneurship, developing research and talent to help solve contemporary problems and promote understanding of the characteristics and virtues of free enterprise in helping people improve their lives.”

But here’s the most revealing portion of the agreement, very much inline with Charles and David’s preference for using secret dark money groups for their influence-buying. The grant agreement stipulates that “the university agree to keep confidential and not to disclose to any third party the existence of or contents of this Agreement without express written approval from the Donor.” So that says a lot.

No matter what they claim to the contrary, any time Charles and David are spending big it’s above all else to buy influence and promote their self-interested agenda. Their joint-$3.25 million Ball State University purchase is no different.

Background:

Ball State University

The Ball State Daily Claimed That The Koch Fondation Grant Came With No Strings Attached…

Ball State Daily: “Despite Some Controversy On Campus Over A Grant From The Charles Koch Foundation And John ‘Papa John’ Schnatter… The Charles Koch Foundation Shows No Signs Of The Money Coming With Strings Attached.” According to the Ball State Daily, “Despite some controversy on campus over a grant from the Charles Koch Foundation and John ‘Papa John’ Schnatter, only one-third of the grant is actually from the Koch family.  Schnatter donated $2.17 million of the grant, and the Charles Koch Foundation donated $1.08 million, according to the grant agreement. The contract between the university, the Ball State University Foundation and the Charles Koch Foundation shows no signs of the money coming with strings attached. The very first clause in both the contract with the Charles Koch Foundation and the one with Schnatter is on promoting academic freedom.” [Ball State Daily, 3/17/16]

“Terry King, Acting President For The University, Said There Were No Stipulations With The Grant.” According to the Ball State Daily, “Terry King, acting president for the university, said there were no stipulations with the grant.” [Ball State Daily, 3/17/16]

Yet In The Same Article They Noted That The Foundation Can Terminate Their Agreement In Any Given Year If They Don’t Like What They See…

The Koch Foundation Has Stipulated That It Has To Approve Of Annual Yearly Progress Reports For The Center Before They Donate The Next Chunk Of Money. According to the Ball State Daily, “The Ball State Foundation has to submit an annual report each year detailing the progress of the John H. Schnatter Institute for Entrepreneurship and Free Enterprise — which is what the grant money will be used to fund. The donor has to approve the report before they donate the next chunk of money. While the grant is supposed to last for eight years, the contract only shows contribution dates up until Aug. 1, 2019 for both Schnatter and the Charles Koch Foundation. The university has to follow a few terms in order to keep getting the money from both parties — but none are too demanding. Maintain a qualified director for the institute[,] Hire people to fill four professorship positions[,] University has to allocate $600,000 total for the salaries and benefits of the director and the four professorship positions[,] Offer office space for the institute[, and] Continue to support the institute. Both Schnatter’s and the Charles Koch Foundation’s contracts said their donation was contingent on each other’s — so without either one, the grant would not exist.” [Ball State Daily, 3/17/16]

  • The Koch Foundation Wrote Into The Grant Agreement That They Will Review A Report Of The Use Of Their Grant Each Year Detailing The Use Of Their Money And Can Withhold Funding If They Don’t Like What They See. According to the Ball State donor agreement, “The Foundation shall submit an annual written report according to the schedule below to the Donor for the Donor’s consideration (the ‘Foundation Grant Report’) and an accounting of the expenditure of any Contributed Amount previously received. The Donor shall review the Foundation Grant Report in good faith. If the Donor approves the Foundation Grant Report, the Donor shall make a contribution up to the amount listed in the below schedule to the Foundation, and the Foundation agrees to accept such Contributed Amount on behalf of the University as stated in the below schedule.” [Ball State donor agreement, 3/2/16]

And The Donor Agreement Reflected Their Ideological Biases And Dark Money Tactics

The Charles Koch Foundation’s Mission With The Grant Is For The Institute “To Become A National Model For Values- And Ethics-Based Entrepreneurship, Developing Research And Talent To Help Solve Contemporary Problems And Promote Understanding Of The Characteristics And Virtues Of Free Enterprise.” According to the Ball State donor agreement, “As stated in the Ball State University Proposal, which is hereby incorporated into and made part of this Agreement, and attached as Attachment A (the ‘Proposal’), the University has informed the Donor, and the Donor is relying on such representation, that the Institute’s mission is to become a national model for values- and ethics-based entrepreneurship, developing research and talent to help solve contemporary problems and promote understanding of the characteristics and virtues of free enterprise in helping people improve their lives (the ‘Institute’s Mission’).” [Ball State donor agreement, 3/2/16]

The Charles Koch Foundation Stipulated That “The University Agree To Keep Confidential And Not To Disclose To Any Third Party The Existence Of Or Contents Of This Agreement Without Express Written Approval From The Donor” And Required That Ball State Provide Them With “Prompt Advance Written Notice” If They Are “Required To Disclose The Existence Of Or The Content Of This Agreement To Any Third Party.”According to the Ball State donor agreement, “The Foundation and the University agree to keep confidential and not to disclose to any third party the existence of or contents of this Agreement without express written approval from the Donor, except as otherwise may be required by law; including in response to a public records request submitted under applicable State or Federal law. If the Foundation or the University is required to disclose the existence of or the content of this Agreement to any third party, the Foundation and the University agree to provide the Donor with prompt advance written notice of such disclosure.” [Ball State donor agreement, 3/2/16]

“The Terms Contained In This Agreement Supersede All Prior Oral Or Written Agreements And Understandings Between The Parties.” According to the Ball State donor agreement, “The terms contained in this Agreement supersede all prior oral or written agreements and understandings between the Parties related to the matters contained in this Agreement and shall constitute the entire agreement between the Parties with respect to the matters contained in this Agreement.” [Ball State donor agreement, 3/2/16]

The University Will At All Times Employ A Qualified Institute Director To Advance Our Mission And If The Individual Holding The Institute Director Position Changes, The University Shall Promptly Notify The Donor. According to the Ball State donor agreement, “Dr. Michael Goldsby, who was selected by the University, shall be the initial director of the Institute (the ‘Institute Director’). The Parties believe the Institute Director is a critical part of advancing the Institute’s Mission; therefore, the University will at all times during the Term of this Agreement seek to employ an Institute Director who is qualified to advance such mission, subject to the University’s established policies and procedures for hiring faculty and staff. If the individual holding the Institute Director position changes, the University shall promptly notify the Donor.” [Ball State donor agreement, 3/2/16]

Paid for by American Bridge 21st Century Foundation