Sonoma State University Academic Foundation
The Sonoma State University Academic Foundation is a public benefit non-profit corporation founded in 1974 to promote the development of Sonoma State University. The foundation offices are located at 1801 East Cotati Avenue, Rohnert Park, California.
The foundation is under the direction of a board consisting of community, student, faculty and administrative representatives. The foundation is a CSU auxiliary organization, as defined in Title 5 of the California Code of Regulations.
Controversy
The foundation's investment practices became controversial when it was revealed that, starting in 1994, the foundation had been investing its money in private loans to local landowners. By 2003, the foundation had placed half of its $40 million investment portfolio in private real estate loans, despite warnings from its auditors and its own board members. The investment practices came to light in 2009, after a recipient and key player in the foundation loans said he could not repay a $1.25 million loan from the foundation. He had served on the foundation board, but resigned in 1995, two days before he received his first foundation loan for $500,000. He and his mortgage company eventually arranged more than half of the 19 private loans to local landowners that followed.[1]