Changes at Kauffman Foundation Approved by Missouri Attorney General

Six months after he urged the Ewing Marion Kauffman Foundation, in Kansas City, Mo., to make key changes in its policies, Missouri’s attorney general has put his stamp of approval on steps taken by the fund’s Board of Trustees.

Earlier this year, after an investigation into its operations, Attorney General Jeremiah W. Nixon urged the foundation to more clearly state its commitment to its hometown and to change the way its board operates (The Chronicle, March 18).

Mr. Nixon began his inquiry after leaders of some Kansas City charities expressed concern that the Kauffman Foundation was beginning to withdraw support from local causes, which would depart from the original intent of the founder, Ewing Marion Kauffman. In addition, Mr. Nixon investigated reports of possible conflicts of interest by board members and concerns that the board did not provide enough oversight of the foundation.

Cleared of Wrongdoing

In March, the attorney general cleared the fund of wrongdoing but said that the foundation could take steps to ensure that additional questions weren’t raised by making changes to the organization’s governing documents and policies.

This month, Mr. Nixon gave his approval to the Kauffman board for following his recommendations by amending the fund’s bylaws to:

• Require that the foundation’s headquarters remain in Kansas City and that its president live in or near the city.
• Commit to giving as much to Kansas City charities as it has in the past.
• Make sure that at least one-third of board members are residents of — or have significant ties to — Kansas City.
• Strengthen its conflict-of-interest policy.

Mr. Nixon said he believed that the changes adopted by the Board of Trustees “will help ensure that the Kauffman Foundation remains a highly prized resource for philanthropy.”

Said John A. Mayer, chairman of the Kauffman board: “We remain dedicated to Kansas City.”