Presentation Transcript

1. Seeing the Big Picture The UCLA Foundation VDOP 2011 Presented by Andrew Katz & Steve Gamer October 15, 2011
2. In the Beginning UCLA founded in 1919 as the Southern Branch Private support irrelevant due to level of state support State support historically focused on undergraduate education UCLA’s graduate programs did not begin until 1933 for Master’s Degrees and 1936 for Ph.D. degrees (first Ph.D. awarded in 1938) Progress Fund started in 1945 to provide private support for capital programs and scholarships The UCLA Foundation was formed in 1966 to replace the Progress Fund. The UCLA Foundation creates the UCLA Fund to raise annual funds for unrestricted use.
3. The UCLA Foundation Grows The UCLA Foundation provides support for Chancellor Franklin D. Murphy to energize the growth of UCLA Prior to 1972 all endowed funds for UCLA managed by the Regents In 1972 The UCLA Foundation takes control of funds endowed to UCLA, all $1.5 million of them. The UCLA Foundation participates in the 1982 UCLA Campaign that raises $300 million by 1988  Campaign UCLA begins in 1995 and raises more than $3 billion by its end in 2005. The UCLA Foundation’s endowed funds exceed $1.0 billion
4. The UCLA Foundation Today In 2005 the Foundation restructures into the Board of Directors, and the Foundation Governors Board of Director members and Foundation Governors are required to support the UCLA Fund  As part of the restructuring, the Foundation adopts its mission statement: to actively promote philanthropy and managing donated resources for the advancement of UCLA  Funds for UCLA still go to the Regents - must be donated to “The UCLA Foundation”
5. Implementation of the Mission Statement Promote philanthropy Endowed funds - Funds donated for specific purposes, such as for research or chairs. Funds are restricted and may only be used for that purpose. Unendowed funds - funds donated without restrictions as to use Annual Fund - The UCLA Fund - integral part of the Foundation as it is the primary source of funds used to support Chancellor’s Greatest Needs. Substantial number of significant donors, including those establishing endowed funds, begin their relationship with the Foundation as UCLA Fund donors Campaign UCLA consisted of over 200,000 donors, most donating via the UCLA Fund Philanthropy Committee activities reach all campus constituencies
6. Managing Donated Resources Foundation Directors directly and indirectly set policy for investments. Investment policies established by the Directors have produced excellent return on assets Resources managed to create long term sustainable payout to beneficiaries of endowed funds Successful management of resources encourages others to donate knowing their donated funds will be managed to accomplish donor’s intentions
7. For the Advancement of UCLA Success of promotion of philanthropy and management of resources generates funds to support scholars, researchers, professors and programs Success breed success The availability of endowed funds brings the best professors and researchers to campus, they in turn bring the best students to campus. Unrestricted funds to provide scholarships help bring the best students to campus and those are the students professors want to teach and ultimately retain as their graduate students.
8. The UCLA Fund Originally focused on raising funds for Chancellor’s Greatest Needs Expanded to include raising unrestricted funds across campus Assists both undergraduate and graduate fund raising Principal focus remains Chancellor’s Greatest Needs Expansion has increased number of donors and total donations, but CGN support has slipped UCLA Foundation general funds supplement those raised by the UCLA Foundation to maintain level of support for CGN
9. The Next Campaign Each campaign raises level of annual support for UCLA Next campaign is coming Foundation will be an active part of the next campaign, at all levels, including the UCLA Fund
10. UCLA Foundation Facts Established 1945 Mission Actively promote philanthropy and manage private donations for the advancement of UCLA Endowment Market Value $ 1.313 billion total market value audited as of June 30, 2011 Total number of endowed funds 2,310 across campus Governing Board Donor-Volunteers, Chancellor Operating/fiduciary body; sets policy, vision Provides advice and counsel to campus leadership Representation from schools and programs across campus
11. UCLA Endowment: $2.63 Billion UCLA Foundation Regents Total UCLA Endowment $1.313 billion $1.326 billion As of 6/30/2011
12. UCLA Foundation Endowment Payout to Campus Payout is calculated on endowed funds UCLA Foundation Regents FY11 Stated Payout Rate 5.30% 4.75% FY11 Payout$60.1 million $ 32.2 million Payout FrequencyMonthly Annually As of 6/30/2011
13. UCLA FoundationEndowed Pool Performance *Custom benchmark consists of the individual asset class benchmark returns weighted by the actual weight of the asset class in The UCLA Foundation’s EIP portfolio. **70% Russell 3000 Index and 30% Barclays Lehman Aggregate Bond Index. As of 6/30/2011
14. Investment Strategy The Foundation’s investment strategy is designed to deliver reliable returns to support the needs of UCLA Long term – long haul Considers indefinite time horizon Seeks consistent, reasonable gains while maximizing long-term total returns Maintains real purchasing power over time Seeks to minimize effects of an economic downturn Diversification across asset classes Ensures prudent levels of risk Strives to smoothvolatility
15. Benefits of Local Control Charitable gifts to UCLA may be made to The UCLA Foundation or to The Regents Regents Managed centrally for all 10 campuses by staff in the UC Office of the President UCLA Foundation Governed by a largely volunteer board broadly representative of UCLA donors Sets prudent investment policies and payout rates Through the Investment Committees reporting to the Board, supervisesmoneymanagers and consultants for the various asset classes
16. Supporting UCLA Volunteer Engagement Rediscover UCLA For UCLA’s volunteer leadership – leadership cabinets, councils, boards, and committees Annual Report Online publication distributed to all donors UCLA Foundation Web site More than 10,000 unique visitors annually; 100 visits per day Advocates UCLA Foundation Directors and Governors
17. Supporting UCLA Faculty Recruitment and Retention Faculty housing project Child care program Student Support Scholarships and Fellowships Civic Engagement Scholarships Civic Engagement UCLA Volunteer Center
18. The UCLA Foundation Summary of Foundation Benefits Visibility for Gift Recipients Donor Representation on Foundation Board Solid Investment Performance Frequent Payout Reliable Payout Income How to support The UCLA Foundation Make donation checks payable to The UCLA Foundation Estate planning: Name “The UCLA Foundation”
19. Setting the Course:UCLA’s CentennialCampaign
20. FY 1981 – FY 2011 UCLA GIFT HISTORY POST CAMPAIGN $2.07B RAISED $415M AVG/YR CAMPAIGN UCLA $3.05B RAISED $291M AVG/YR BETWEEN CAMPAIGNS $730M RAISED $104M AVG/YR CAMPAIGN I $374M RAISED $62M AVG/YR
21. Endowment for the Top 10 Private and Public Institutions (FY 2010)
22. Tuition Since 1997
23. Proposed Centennial Campaign Timeline Planning Begins: 7/1/10 Campaign Quiet Phase Begins: 7/1/12 Public Launch: Spring 2014 Campaign Timeframe: 7/1/12 – 12/31/19
24. Campaign PreparationKey Tasks Develop Academic Strategy Broaden Base of Support Expand Prospect Pool Enhance Donor Relations Review Existing Resources Recommend Strategic Investments Craft Case for Support Road-test Campaign Priorities Solicit Lead Gifts Recruit & Orient Volunteers Devise Working Goal
25. Develop Academic Strategy Refine 2nd Century Academic Plan Identify overarching framework Develop related unit-based goals Craft transformative “big ideas” Define featured & shared objectives Test with on and off campus constituencies
26. “The listening tour - 2010” Thought-leader lunches Leadership retreat Unit’s strategic plans UCLA’s academic plan Assembled into draft framework A Long Process…
27. Draft Framework The Undergraduate Experience Community, Nation & Society Creativity, Tradition & Innovation Health & Wellness Science, Technology & Entrepreneurship
28. School / Unit Tasks Expand Prospect Pool Enhance Donor Relations Review and Enhance Existing Resources Recommend Strategic Investments Craft Case for Support Road-Test Campaign Priorities Solicit Lead Gifts Recruit and Train Volunteers Devise Working Goal
29. Thank You. Any Questions?