DETROIT -

Governor Rick Snyder's NERD fund will be shut down and replaced with a fund that keeps donor's names transparent.

The NERD fund --which stands for New Energy To Reinvent and Diversify -- is Snyder's nonprofit foundation which receives money from private donors.

Read: Emails show Detroit EM enjoys perks, taxpayers foot bill

The governor's office confirms the fund is in process of being dissolved. A new fund is being created that will include the disclosure of donors and amounts given as well as detailed overview of expenditures by category. Both will be shared and posted online quarterly.

The NERD fund came under fire after Snyder testified under oath that he does not know who contributed to it.

Snyder says he doesn't know who donated to the fund, which raised $1.7 million in two years. It was formed to lessen the "financial burdens of government."

The fund covers Kevyn Orr's expenses as Detroit's state-appointed emergency manager.

Some have argued that could pose a conflict of interest.

More: Is Kevyn Orr living too large in Detroit?