An Iowa judge has dismissed a lawsuit arguing that foundations that raise money for public universities are bound by the state's open-records laws.

The plaintiffs had argued that because the Iowa State University Foundation handles donations for the university, it should be held to the same standards. They say they will appeal the decision.

State District Judge William Ostlund ruled last week that the foundation was not a public organization. Although the university pays about $800,000 each year for foundation services, he said, the fund is not subject to the same scrutiny as the university.

The plaintiffs had sought the minutes of foundation meetings, lists of foundation expenses, and a list of corporate donors of more than $25,000. The foundation had argued that disclosing detailed information would discourage donors and reveal fund-raising strategies, and asked the judge to dismiss the lawsuit.

"The foundation remains committed to being open and accountable while respecting the privacy of our donors," Ann Wilson, a foundation spokeswoman, said in a statement.

The state legislature set up the foundation to work hand in hand with the university, said Mark Gannon, a plaintiff in the case and former manager of the university's Agricultural Foundation.

"If we don't open up these records, it will be a big loss for the university," he said. "People are so fed up."

Critics have argued for opening up the foundation's books, and have pushed for legislation to make the records available. In a much-publicized incident in 2001, university officials admitted having sold a farm against the wishes of the deceased donor. Last year, the foundation announced a revised records policy, but critics said it did not go far enough.

"I am ashamed for Iowa State University and the foundation for their unwillingness to allow the courts to decide if they are obligated to make public how they spend the money that is donated to the university," said Bill Kunerth, open-records advocate and former journalism professor. "This issue is not dead."