In 1883,
Bernice Pauahi Bishop, a member of the Hawaiian Royal Family, directed in her will, after naming heirs for gifts of money and land, that the remainder of her estate be held in trust to create the Kamehameha Schools. A majority of the Bishop estate was inherited from her parent and her cousin
Ruth Keelikōlani, who in turn had inherited a substantial amount from her first husband
Leleiohoku I and her half-siblings
Victoria Kamāmalu and
Kamehameha V, all who were given substantial amounts of land in the
Great Mahele of 1848 which had divided the land of the kingdom amongst the King, the ali'i and the common people. During her lifetime, she experienced and encountered the decline of her Hawaiian people. She was well aware that education was key to the survival of her people and culture; therefore, she left 375,000 acres of ancestral land, entrusting her trustees to use this gift to educate her people. Bernice named
Samuel Mills Damon,
William Owen Smith,
Charles Montague Cooke,
Charles McEwen Hyde, and her husband,
Charles Reed Bishop, as the original five trustees to invest her estate at their discretion, use the income to operate the schools, and also "to devote a portion of each year's income to the support and education of orphans, and others in indigent circumstances, giving the preference to Hawaiians of pure or part aboriginal blood." She also directed the Hawaiʻi (Kingdom) Supreme Court to appoint replacement trustees and required that all teachers be Protestant, without regard to denomination. The original Kamehameha School for Boys opened in 1887; after it moved to a new campus, that site was later taken over by the
Bishop Museum. The girls' school opened nearby in 1894. The preparatory school, originally serving grades K–6, opened in 1888 adjacent to the boys' school. By 1955, all three schools had moved to the current campus in
Kapālama Heights. The schools became co-ed in 1965. Although Kamehameha Schools conceded the practice was discriminatory, the School maintained that it was bound by the provisions of Bernice Pauahi Bishop's will, which established the charitable trust creating the School as well as mandating that all the teachers "be persons of the Protestant religion." Accordingly, the School sought to be included within one of the applicable exemptions to the
Civil Rights Act of 1964. Then
Chief Judge Alan Cooke Kay of the
United States District Court for the District of Hawaii, a great-grandson of Charles Montague Cooke, ruled in Kamehameha's favor, finding that the religious education exemption, the religious curriculum exemption, and the bona fide occupational qualification exemption were each applicable to Kamehameha Schools. As a result, the requirement that all teachers be Protestant was held to be a violation of the Civil Rights Act.
Reorganization According to the will, the Supreme Court of Hawaiʻi appointed trustees. After the
overthrow of the Kingdom of Hawaii in 1893 and the annexation of the
Republic of Hawaii by the United States, the Territorial and State Supreme Court assumed that responsibility. However, many trustees were political insiders. By 1997 trustees were paid $800,000 to $900,000 annually. At that time, critics alleged that the trustees were micromanaging the schools and that they had vastly over-rewarded themselves in their pay. Trustees were appointed to positions as "lead trustee" of a particular part of estate operations. In particular, Lokelani Lindsey, lead trustee for educational affairs, was blamed for low morale among students and faculty. On August 9, 1997,
University of Hawaiʻi (UH) Board of Regents Chair (and former Kamehameha Schools Principal)
Gladys Brandt, retired judge
Walter Heen, Msgr.
Charles Kekumano, federal judge
Samuel Pailthorpe King, and UH
William S. Richardson School of Law professor
Randall Roth published a report titled
Broken Trust in the
Honolulu Star Bulletin. They called on the State Attorney General to fully investigate KSBE management. The report alleged, among other things, that: • the method of selecting trustees (appointment by the Hawaiʻi Supreme Court) was flawed • the trustees did not fully understand their responsibilities • the trustees were not accountable for their actions. Another essay appeared in November, with Brandt, University of Hawaiʻi Professor
Isabella Abbott, respected Hawaiian cultural educator
Winona Beamer, and others as authors. Its headline was "Tyranny, distrust, poor decisions reign at Kamehameha". The investigation continued through 1998, when Attorney General Bronster sought the permanent removal of Lindsey and fellow trustees Richard Wong and Henry Peters. On May 6, 1999, after a six-month trial, Lindsey was permanently removed as trustee (Lindsey later appealed her removal). A day later, trustees Wong, Peters, and Gerard Jervis were also temporarily removed. The fifth trustee, Oswald Stender, voluntarily resigned. An interim board was appointed by the Hawaii Probate Court to run the estate. Bronster had been re-appointed as attorney general by Governor Cayetano, who was a Democrat. Since 23 of the 25 state senators were Democrats, some political observers thought approval of Bronster's renomination would be assured. However, the investigation proved costly for Bronster, whose confirmation was defeated by the
Hawaii State Senate on April 28, 1999, by a vote of 14–11. The
US Internal Revenue Service retroactively revoked Bishop Estate's tax exempt status because of the trustees' breach of duties and unlawful use of tax exempt charitable trust assets for political lobbying. This action triggered charges of about $1 billion in back taxes and penalties. In 2005, two of the authors of the newspaper series published a book exploring the issues in the full-scale investigation. The controversy was costly to the schools. In 2009, after a large decline in the endowment, trustee compensation ranged from $97,500 to $125,000 per year, and trustees turned down any pay increases. ==Campuses and governance==