Community foundations suing for assets

LEE COUNTY – A lawsuit filed on behalf of the Keokuk Charitable Fund and the North Lee County Community Foundation could take the group’s ability to grant funds to over $1 million annually if they receive a favorable verdict in 2026.
According to a report given by Lee County Supervisor Chuck Holmes at the Lee County Connection group’s October forum Thursday, the group is currently engaged in a lawsuit in Scott County over some funds that the local community foundation believes should be in Lee County.
The local foundation split off from the Quad City Foundation in Davenport several years ago, and when the assets were shared in the split, there were several assets that Holmes’ said the new foundation in Lee County felt they were entitled to but didn’t receive. That issue has received a court date for January in North Lee County Courthouse.
“When we started, we had nothing and, believe it or not, we’re now at $27 million between the two foundations,” Holmes said.
“Just recently, North Lee received $8 million from the Sandrock estate. The total estate comes to about $11 million.”

He said there are homes that are for sale in the estate in Arizona and that would contribute another $1 million to local accounts, but an additional $2 million went to the Quad Cities Community Foundation.
“Some of you may know that North Lee was previously affiliated with Quad City Community Foundation. When we asked for all of the funds to be transferred down here to the Keokuk Area Community Foundation, Quad Cities refused to send down the Rosie Menke fund, which is about $3,000,000, and (another) fund which was $6 million. And now they have the Sandrock fund which is another $2,000,000 so that comes to $11 million that Quad Cities is holding that we think should be down here with North Lee and with the Keokuk Area Community Foundation,” Holmes told the group.
Holmes said the foundation has been working with attorneys for a number of years and finally decided to file a lawsuit against the Quad City group. That suit is asking for the $11 million and has been filed in Fort Madison.
Holmes said with the new infusion, the Foundation is now able to provide $700,000 to $800,000 annually in grants and, if they win the suit, that number could climb to $1.2 to $1.4 million annually to Lee County charities and non-profits.
Other agencies at the Connection forum included the cities of Fort Madison, Donnellson, and Keokuk; Lee County Health Department; Keokuk and Fort Madison Chambers of Commerce; Southeast Iowa Regional and Economic Port Authority; Keokuk Community Schools; Lee County Economic Development Group; Lee County Supervisors; and others.
Lee County Economic Development Group organizes what has started as semiannual gatherings to create a forum for allowing groups to hear of developments in and around the county.