Mortellus
Apr 20, 2011
An investigation revealed substantial financial support from a foundation funding conservative and libertarian causes, raising questions about outside influence over a publicly funded school's governance and educational priorities.
What happened: An April 2011 investigation by NC Policy Watch (now NC Newsline) examined Thomas Jefferson Classical Academy's financial and governance relationships with the Challenge Foundation, a private philanthropic organization established by businessman John Bryan, a prominent advocate of charter schools and school choice.
According to tax filings reviewed by the publication, the Challenge Foundation donated approximately $305,000 to TJCA between 2007 and 2009, while simultaneously funding conservative and libertarian organizations, political advocacy initiatives, and other charter schools.
The investigation revealed that two individuals affiliated with the foundation—John Bryan's daughter, Cheryl Reinstadler, and the foundation's national school director, Joan Lange—also served on TJCA's governing Board. As Board members, they participated in decisions concerning the Academy's curriculum, administration, and approximately $7.6 million in public funding.
The overlap between private financial support, ideological philanthropy, and governance of a publicly funded institution raised questions about the extent to which outside benefactors might influence the Academy's educational policies and institutional direction.
What was established: NC Policy Watch documented the Challenge Foundation's financial contributions to TJCA and its broader philanthropic activities through publicly available nonprofit tax filings.
Between 2007 and 2009, the foundation distributed approximately $690,000 to several North Carolina charter schools, including the $305,000 reported for TJCA.
The investigation also identified the foundation's financial support for organizations and initiatives associated with conservative and libertarian policy priorities, including:
Grants ranging from $10,000 to $50,000 to organizations including the Cato Institute, Americans for Prosperity, the Heritage Foundation, and the Federalist Society.
A $10,000 contribution toward production of The Cartel, a documentary critical of traditional public education.
A $10,000 grant supporting distribution of a film challenging prevailing climate-change research and environmental economic policies.
Two grants totaling $50,000 to Parents for Educational Freedom in North Carolina, an organization advocating charter-school expansion and private-school vouchers.
The reporting confirmed that two Challenge Foundation affiliates held positions on TJCA's Board while the school received financial support from the foundation.
The Academy's own published institutional history acknowledges John Bryan's contributions, including a separate $110,000 donation in 2002 for science and computer laboratories, and credits the Challenge Foundation with helping establish and finance TJCA's elementary-school expansion beginning in 2007.
Then-Board member David Faunce acknowledged the foundation's association with the school but disputed suggestions that its political interests influenced classroom instruction. He maintained that TJCA operated as a public school and did not seek to politicize its students' education.
What was not established: The investigation did not establish that Challenge Foundation donations were conditioned on TJCA adopting particular political positions, curriculum requirements, or ideological practices.
Although foundation-affiliated individuals served on the governing Board, the reporting did not establish that they improperly controlled Board decisions, exercised authority beyond their legitimate roles as directors, or directed school resources toward partisan political activities.
The foundation's financial support for conservative and libertarian organizations does not, by itself, demonstrate that TJCA shared those organizations' positions or incorporated their ideological priorities into classroom instruction.
The investigation also did not establish that the financial contributions violated applicable charter-school laws, nonprofit governance requirements, or conflict-of-interest regulations.
The central unresolved question was the extent of the foundation's influence over institutional decision-making, particularly given the combination of private financial support and direct Board participation.
Original evidence:
NC Policy Watch (now NC Newsline) — Charter's Conservative Backers Raise Questions, April 20, 2011
Thomas Jefferson Classical Academy — Official School History
Challenge Foundation — Historical IRS Form 990 Filings, ProPublica Nonprofit Explorer
Thomas Jefferson Classical Academy — Historical IRS Form 990 Filings, ProPublica Nonprofit Explorer
The original investigation identified foundation tax filings from 2007, 2008, and 2009 as its sources for the reported donations. The underlying records are available for further examination through nonprofit tax archives.
Subsequent developments: TJCA continued to publicly identify with the Challenge Foundation for years following the original investigation, including through its historical designation, Thomas Jefferson Classical Academy: A Challenge Foundation Academy. As recently as 2023, the Academy's published strategic plan still incorporated the Challenge Foundation designation into its mission statement. Today, that designation is absent from TJCA's published mission statement.
The circumstances surrounding this change remain unclear, including when and why the designation was removed and whether the foundation's financial, administrative, or institutional involvement continued afterward. TJCA Truth welcomes historical correspondence, financial records, partnership agreements, Board documents, and other materials that may help establish the full extent of the foundation's involvement and how that relationship evolved over time.
Report from the community: No independent firsthand accounts from TJCA families, employees, or community members specifically concerning the Challenge Foundation's influence over school governance have yet been obtained by TJCA Truth. Contemporaneous reporting preserves statements from then-Board member David Faunce disputing suggestions that the foundation exercised ideological influence over the Academy. Additional firsthand perspectives from former Board members, administrators, educators, families, or individuals involved with the Challenge Foundation may help illuminate its role in TJCA's governance, fundraising, and educational priorities. Contributors may request anonymity, and private correspondence will not be published without permission.