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Auburn University Foundation and Comprehensive Campaign Briefing. Faculty Senate September 17, 2013. Auburn University Foundation: A non-governmental, non-profit organization separate and distinct from Auburn University [separate 501(c)(3)] Purpose :
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Auburn University Foundation and Comprehensive Campaign Briefing Faculty Senate September 17, 2013
Auburn University Foundation: A non-governmental, non-profit organization separate and distinct from Auburn University[separate 501(c)(3)] Purpose: Receive charitable contributions for the benefit of AU and AUM Assure donations are kept separate fromstate funds Auburn University Foundation
Manage AU, AUF, AAA, TUF endowments. AUF investment objective: To earn a total return (net of portfolio management fees) within prudent levels of risk, which is sufficient to maintain in real terms the purchasing power of the endowment’s assets and support the defined spending policy. Auburn University Foundation
Auburn University Foundation Board Consists of 24 voting directors who servefour-year terms 3 Ex officio, non-voting members: AU President AUM Chancellor Auburn Alumni Association President Auburn University Foundation
AU/AUF Endowment | Update thru 7/31/13 • Combined Market Value (12/31/2012): $488,247,605 • 2012-13 Distribution to the University: $17,229,000 • 2012 Endowment Performance: 9.9% • Endowment Annualized Returns: • One-year 13.6% • Three-year 8.8% • Five-year 4.3% • Combined Market Value (07/31/2013): $524,962,719 • 2013 Endowment Performance (through 7/31): 7.7%
2013 Endowment Distribution / Designation Endowment Distribution Endowment Designation
Spending Formula A weighted calculation of two components: First component (80%) is the prior year payout amount adjusted for inflation (CPI) Second component (20%) is the spending policy target rate (currently 4%) applied to the 12-month avg. of market values [80%)(Prior year’s payout)(1+CPI)]+[(20%)(12-month average of market value)(4.0%)] Endowment Spending Calculation Example: Payout Calculation: [(.80)($40,000)(1+.034)]+[(.20)($1,080,000)(.04)] = $41,728 Endowment Spending Formula
2012 Development Results | calendar year • 2012 Total Gifts and Commitments $111,001,242 • $76,424,036 Outright Gifts and Pledges • $9,494,065 Deferred Irrevocable Gifts • $25,083,141 Deferred Revocable Gifts • Four Year Results 41% cumulative increase
Leadership GiftPhase Jan. 1, 2013 (24-30 months) Goal: $400 millionCumulative: $700 million PublicPhase 30-36 months (Dec. 31, 2017) Goal: $300 millionCumulative: $1 billion Campaign Timeline PreparationPhase Through Dec. 31, 2012 Goal: $300 million Actual: $400.6 million CAMPAIGN KICKOFF CAMPAIGN CELEBRATION CAMPAIGN AUTHORIZATION Post-Campaign Assessment
Financial Campaign Objectives • Campaign seeks to secure at least $1 billion in new gifts and commitments, both spendable/annual and endowed, for Student Support, Faculty Support, Programmatic Support, and Facility Support. • Endowment Giving - for a campaign of $1 billion, it is expected that approximately 25-35% of the total will be endowment commitments. • Deferred Gifts - for a campaign of $1 billion, it is expected that approximately 30% of the total will be deferred gifts. Deferred gift instruments, such as gift annuities, charitable remainder trusts, and simple bequests often are designated for endowment.
Additional Campaign Objectives • Volunteer Engagement – new volunteers will be engaged to serve Auburn during the campaign. • Donor Relations and Stewardship - the nature/level of donor appreciation and stewardship should be enhanced during and after the campaign. • Annual Giving - the annual giving program should be positioned to generate increased alumni participation and secure gifts in excess of $5 million annually. • Sustainable Giving – the level of annual philanthropic support will be elevated during the campaign. Post campaign aspiration is to maintain new gifts and commitments of approximately $100 million annually, economic factors permitting.
