University of Georgia Foundation

1
University of Georgia Foundation

• University Council Presentation
• December 2, 2004

2
University of Georgia Foundation

• MISSION
• It is the mission of The University of Georgia
  Foundation to administer with fiduciary care the
  assets of the Foundation for the long-term
  enhancement of the University of Georgia to
  provide volunteer leadership and assistance to
  the University in its development and
  fund-raising activities and to provide broad
  advice, consultation and support to the President
  of the University.

3
University of Georgia Foundation

• Why is the Foundation separate from UGA?
• The Foundation is a separate not-for-profit,
  501(c)(3) corporation for very good reasons
• To receive tax deductible gifts under Section 170
  of the Internal Revenue Code
• Flexibility
• More effective Investment Management
• Donor Confidentiality

4
University of Georgia Foundation

• Why does UGA need gifts?
• Build endowment
• State appropriations are declining
• Gifts are vital to fill the gap
• Tuition remains low at UGA

5
University of Georgia Foundation

• Endowment Funds Reported to NACUBO 2003
• UGA 397,082,000
• Michigan 3,464,515,000
• Virginia 1,800,882,000
• UNC 1,097,418,000
• Indiana 941,068,000
• Florida 585,695,000
• Georgia Tech 729,926,000

6
University of Georgia Foundation

• Who sets fundraising priorities for UGA?
• The University of Georgia does. UGAs President
  determines which of many fundraising proposals
  will become University priorities. Vice
  Presidents, deans and department and program
  heads set priorities for their units, within the
  context of University priorities.

7
University of Georgia Foundation

• What does the Foundation do with contributions?
• Exactly what the donors tell them to.
• The donor decides. Typically, 96-98 of gifts
  are restricted gifts which are designated for a
  particular school, college, department or
  program.

8
University of Georgia Foundation

• Who governs the Foundation?
• The Board of Trustees. The Board consists of 36
  members including two ex-officio members. The
  President of the University is a voting
  ex-officio member and the President of the
  University of Georgia Alumni Association is a
  non-voting ex-officio member.

9
University of Georgia Foundation

• Committees
• Executive
• Finance
• Nominating
• Compensation
• Investment
• Audit Governance
• Development Public Affairs
• Foundation Fellows

10
University of Georgia Foundation

• How is the Foundation funded?
• The Foundations operating budget comes from 5
  primary sources
• Unrestricted gifts
• Management administrative fees
• Royalties
• Unrestricted earnings
• UGA Support

11
University of Georgia Foundation Unrestricted
Revenue by SourceFor the Fiscal Year Ended June
30, 2004
12
University of Georgia Foundation

• How is the Foundation accountable?
• The Foundation openly discloses information about
  its policies, activities, financial statements,
  and other information. The following items are
  available to the public
• Financial audit
• Annual report to donors
• Policies on disbursement of gift funds
• Investment policies, expenditure guidelines, and
  quarterly performance reports
• Policies regarding the establishment of
  fund-raising priorities
• Tax form 990

13
University of Georgia Foundation

• UGAF Website
• www.alumni.uga.edu/ugafoundation
• Includes
• List of Trustees by Class
• Trustee Committee Assignments
• Audit Reports
• Policies and Procedures Manual

14
University of Georgia Foundation

• Policies Procedures Manual
• Designed primarily for use by UGA unit heads and
  the Foundation administrative officers and staff.
  Information available includes
• What qualifies as a gift
• How to transmit a gift
• What information is needed for a fund agreement
• How to expend Foundation funds
• How to transfer funds to UGA
• What is a spending budget
• How to request unrestricted funds from the
  Foundation
• What forms to use
• How to read reports

15
University of Georgia Foundation

• UGAF Organizational Structure
• University of Georgia Foundation
• UGA Alumni Association
• Costa Rica
• University of Georgia Real Estate Foundation
• 3 Limited Liability Corporations
• Cortona

16
University of Georgia Foundation

• International Properties
• UGA at Oxford Center Oxford England
• Purchased in 1999 by UGAF
• Provides housing for 28 students
• Total purchase price of 1.8 million
• Current annual rent 182,000

17
University of Georgia Foundation

• International Properties
• Ecolodge San Luis and Research Station
• San Luis, Costa Rica
• Purchased in 2002 by UGAF
• Residential research educational facility with
  accommodations for 85 people
• Total purchase price of 1.1 million with
  renovations capital improvements of 0.6
  million
• Current annual rent is 92,000

18
University of Georgia Foundation

• International Properties
• Casa di Riposi Cortona, Italy
• Purchased in 2002 by UGAREF
• Provides housing for 40 students
• Total purchase price of 1.6 million with
  renovations capital improvements of 0.8
  million
• Annual rent will be 220,000

19
University of Georgia Foundation Total AssetsAs
of June 30, 2004
20
University of Georgia Foundation Balance Sheet
Asset AllocationAs of June 30, 2004
21
UGA Real Estate Foundation Financial PositionAs
of June 30, 2004
22
University of Georgia Foundation Total Revenue
by SourceFor the Fiscal Year Ended June 30, 2004
23
University of Georgia Foundation Total
Expenditures by CategoryFor the Fiscal Year
Ended June 30, 2004