Who owns the University of Virginia? The answer is clear: As an agency of the state government, UVa is owned by the citizens of Virginia. The governor appoints the members of its governing board, the University of Virginia, the General Assembly allots a significant percentage of its budget, and, although it has been granted considerable autonomy, the university must abide by state rules and regulations, such as, to mention just one, the Freedom of Information Act.
But who owns the University of Virginia alumni association — a nonprofit entity that, according to its Form 990, has $582 million in assets? And what mechanisms exist to hold the association’s leadership accountable for its actions?
The answer to that question is less immediately obvious. After digging into the matter, I’ve reached the conclusion that the alumni association is accountable to no one — certainly not to the UVa alumni. It is run by a self-perpetuating clique, which is free to indulge its decidedly ideological preferences largely uncontested. Transparency is minimal. and most alumni are clueless.
The UVa alumni association is not unique in this regard. My findings likely apply to alumni associations across the country and, indeed, to most nonprofit organizations generally. The story of how unaccountable, tax-advantaged nonprofits exercise extraordinary influence over our society is one of the great untold stories of our age. Continue reading