Donors say Northland violated the law, but college disputes that
Wisconsin law requires institutions to honor donor restrictions on spending those funds, as well as manage and invest them in good faith.
Norgaard argues the college didn’t do that. He said he never gave the college written consent to change restrictions on spending his endowed funds. Despite repeated written requests, he said Northland has never provided a full accounting of how funds were spent.
“We threw everything into these two scholarships in terms of keeping (Bjorn’s) memory alive, and so it’s like a gut punch,” Norgaard said. “You feel like his legacy is somehow diminished. Money was set up, and now it’s gone.”
In a statement, Ted Bristol, chair of Northland’s board, said the college petitioned the court to distribute its remaining endowment funds in a “reasonable, fair and thoughtful manner that most closely aligns with donor intent.”
“Our petition outlines the process and reasons which led to the board’s difficult decision to close Northland College, despite our best efforts,” Bristol wrote. “We have tried to balance the interests of everyone involved affected by Northland’s closure.”
About one year before the college closed, Northland’s financial statements show the value of its endowment assets was close to $5 million — roughly $25 million less than the original restricted funds that were required to be maintained in perpetuity by donors.
