West Virginia University


1. Mechanisms of Contractual Control


At universities where the public has been able to see a contract between by a university and the Charles Koch Foundation, a common stipulation is that any activities comply with the a provision of the contract that CKF calls its “Objectives and Purposes.” In later contracts, this provision is restructured so that the activities must comply with a predefined "mission" of the program.

At West Virginia University, the “Donor Supported Professorship Positions” established by CKF are required to comply with the following Objectives and Purposes:

1. Objectives and Purposes
(a) The University and its Department of Economics, within the College of Business and Economics (“College”), have established a focused research effort among select faculty members with the purpose of advancing the philosophical and interdisciplinary understanding of human freedom in the political, economic, social and personal domains and to explore the nature of free market economics and its impact on our society (hereinafter referred to as the “Program”). The Parties desire to further support the Program’s mission by supplementing the academic talent (hereinafter referred to as the “Donor Supported Professorship Positions”) currently within the University and the Department of Economics to create a strong program that will focus on building upon and expanding the research and teaching efforts related to the University and the Program as described herein. (WVU 2009 MOU, Section 1.a)

All aspects of the programs set forward in the MOU are obligated to comply with the Koch Foundation’s “Objectives and Purposes,” and compliance is actively enforced. The Koch foundation:

... reserves the right to discontinue or withhold any amount to be contributed under this Agreement if in CGK Foundation's reasonable discretion (a) the University or the Donee have not fully complied with the terms and conditions of this Agreement; (b) the College, Donor Supported Professorship Positions, and College's operations are not advancing the Purposes and Objectives set forth in Section 1(a) above
...a breach, whether caused by Donee or University, of any commitment, agreement, obligation, covenant, representation or warranty, made or required under this Agreement shall give CGK Foundation the ability to terminate this Agreement. (WVU 2009 MOU, Section VI.J and VI.H)

The Koch foundation is able to withhold funding after providing just 15 days notice:

Such termination shall be deemed effective upon the expiration of said fifteen (15) business days from the date notice was provided by CGK Foundation to Donee and/or University, if Donee and/or University have not therefore corrected the events of default or performed the acts described in the notice. During the pendency of this 15-day period, CGK Foundation will not be obligated to contribute any funds pursuant to this Agreement and Donee will suspend any further payments pending the corrective action by the Donee and/or University. In the event of termination of this Agreement, notwithstanding any contrary provision herein, CGK Foundation shall have the right to require that all unexpended Contribution Amounts contributed be returned to CGK Foundation. (WVU 2009 MOU, Section VI.H)