C.S.U. officials say the funds can be mixed when a private foundation runs a campus function, like a football game, and is slow to repay the university for services.
Campuses are now in the process of moving the money. C.S.U. officials have repeatedly declined to make public details of how the foundation's money is used.
The C.S.U. Stanislaus Foundation came under fire this year for refusing to disclose the fee it paid Sarah Palin for a June fundraising appearance. Last month they revealed Palin was paid $75,000.