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University of Maine Foundation Annual Report The University of Maine DigitalCommons@UMaine General University of Maine Publications University of Maine Publications 2013 University of Maine Foundation Annual Report University of Maine Foundation Follow this and additional works at: https://digitalcommons.library.umaine.edu/univ_publications Part of the Higher Education Commons, and the History Commons This Report is brought to you for free and open access by DigitalCommons@UMaine. It has been accepted for inclusion in General University of Maine Publications by an authorized administrator of DigitalCommons@UMaine. For more information, please contact [email protected]. UNIVERSITY OF MAINE FOUNDATION 2013 ANNUAL REPORT Taking the lead in public universities. The University of Maine is the state’s land grant college established by the Morrill Act of 1862. page A Supporting a Remarkable Land-Grant Institution The document shown in the background of the 2013 Annual Report cover is the As a donor to the University of Maine Foundation, you support historic Morrill Act, often referred to as the Land-Grant College Act of 1862. When the act was passed, the federal government gave each state a calculated allotment a remarkable land-grant institution. Over 100 major universities of public land. The land was then sold, placed into endowment funds, and used to build colleges of higher education. One hundred and fifty years later, most land- across the United States are thriving today because of the resources grant colleges, with additional state aid, have grown into large public universities, such as the University of Maine. provided to them through the original land-grant program that Together we’ve educated millions of Americans, who otherwise might not have had the opportunity for a higher education. was authorized by President Abraham Lincoln in 1862. University of Maine Foundation thanks the National Archives and Records Administration for providing public access to this image. “Knowledge, Table of Contents being necessary Supporting a Remarkable Land-Grant Institution 1 to good government A Letter from the Board Chair and President/CEO 2 and the happiness Ways of Giving 3 of mankind, Statement of Financial Position June 30, 2013 4 schools and the means of education Statement of Activities for the Year Ended June 30, 2013 5 shall forever Spending Policy 6 be encouraged.” New Funds Established in FY 2013 7 Northwest Ordinance 1787 FY 2013 Facts at a Glance 9 Endowment Funds 10 Investment Managers 23 FY 2013 Donors 24 This past year, the University of Maine received the nation’s UMF Officers, Board of Directors, Members, and Staff 37 highest overall performance rating for a land-grant university by The Education Trust. The University of Maine stood out from its peers for its commitment to equity and progress for all students seeking an education. 5 12 3 8 10 1 6 11 The University of Maine Foundation proudly supports the 2 4 7 9 University’s achievements in access, public service, research and development. Through endowed scholarships, you help give students the gift of a more affordable higher education. You help them reach new and unexpected places. You cast light on and lift up students who might otherwise not have the opportunity for higher education. University of Maine students featured on the cover: 1. Dylan Bousquet-Smith 2. Laura Duran 3. Gwen Beacham 4. Lindsay LaJoie 5. Finn Bondeson 6. Elek Pew 7. Corbett A. Smith 8. Laura Donovan 9. Sabrina Vivian 10. Paige Eggleston 11. T. J. Pitas 12. Colin Buttarazzi Cover photo: photodrake.com • Other photos courtesy of Marketing and Communications, University of Maine page 1 Letter from of Board Chair & President Ways Giving The University of Maine is the state’s land-grant college established by the Your gift through the University Morrill Act of 1862, which celebrated its 150th anniversary in 2012. As a donor of Maine Foundation is the gift to the University of Maine Foundation, you support a remarkable land- of a lifetime and an investment grant institution. Over the 150 years, land grants have educated millions of in the future. American citizens who otherwise might not have been able to afford college. Since 1934, the University of Maine Foundation’s role in “Through endowed This past fiscal year has been particularly eventful. A new president/CEO took the supporting the University of scholarships and by Maine has been perpetuated remembering the helm on July 1. The Foundation recorded total assets of $193,458,626 and a General by many alumni and friends University of Maine who, through their generosity, in your estate plans, Endowment of $162,834,662—both all-time highs. Over several months share a common interest in you help give strengthening the teaching, the investment committee, with the students the gift of research and service mission of full support of the Board of Directors, a more affordable Maine’s land-grant university. education.” conducted a search for a new investment consultant for the General Fund. At the recommendation of the investment committee, the Board hired Boston-based The University of Maine Foundation specializes in planned gifts that include bequests, trusts and other life income plans. Planned giving is a unique philanthropic tool that allows one to support the University of Maine’s continued Cambridge Associates on December 1, 2012. Established in 1982, Cambridge excellence while also fulfilling one’s own financial objectives. Planned gifts often have attractive tax benefits Associates is a nationally recognized investment consultant with over 650 associated with them and can allow you to leave a legacy without diminishing assets during your lifetime. nonprofit clients including nearly 200 colleges and universities. With eight offices worldwide, Cambridge has impressive research capabilities and A variety of assets can be used to establish a planned gift. From cash to real estate to tangible personal property, the stood out as a firm providing unbiased, independent and customized advice. Foundation staff is ready to assist you and your advisors to find the best fit for your personal circumstances. The investment committee, with the support of staff, has worked tirelessly Perhaps the most common form of a planned gift is through a bequest. If you wish to leave the University of Maine to implement the investment policies and portfolio changes recommended Foundation a bequest in your will or trust for a scholarship or some other purpose, you can amend your will or by Cambridge. trust to reflect your wishes. In FY13, the Foundation recorded new outright and planned gifts totaling The following represents sample language for doing so. $7,816,125. There were 2,530 gifts and 53 new endowment funds established. “I give and bequeath to the University of Maine Foundation for the benefit of the University of Maine The Foundation now holds 1,408 endowment funds; in 2003, the Foundation (possible choices below): held 833 funds. The endowment return in FY13 was 9.9%. • the sum of $___________________________________; or Your continued support is vital and greatly appreciated. As always, we strive • _________________________________ percent of my estate; or to be accountable to you, and the students we serve. • the property described herein • to establish (or benefit if already existing) the __________________________________ Fund. Thank you for your generosity. The principal of said Fund is to be endowed and only the income earned on the principal shall be used to provide financial assistance.” For those individuals that have additional charitable interests outside the University of Maine, the Foundation Darryl N. Brown ’66, ’69G Jeffery N. Mills, Ph.D. ’82 can help you establish a donor-advised fund. This is a cost-effective alternative to a private family foundation and Chair of the Board President/CEO allows you to consolidate and manage all of your charitable giving. page 2 page 3 STATEMENT OF STATEMENT OF Financial Position Activities For the Year Ended June 30 ASSETS June 30, 2013 June 30, 2012 Cash and equivalents $ 84,441 $ 167,960 2013 2012 Other receivables 192,345 467,973 REVENUE, GAINS, AND LOSSES Promises to give, less allowance for uncollectible promises of $50,000 514,359 481,965 Short-term investments 3,581,877 3,565,711 Contributions $ 7,816,125 $ 12,359,605 Cash surrender value of life insurance 177,707 138,544 Investment income 13,423,675 (5,328,569) Long-term investments, endowment 162,834,662 148,298,359 Investment income, life income plans 319,477 (132,189) Long-term investments, life income plans 4,494,107 4,380,714 Other revenue, gains and (losses) 297,850 134,911 Notes receivable 785,640 978,673 Total revenue, gains and losses 21,857,127 7,033,758 Equity in Buchanan Alumni House 2,678,486 2,721,711 Investment real estate 5,756,357 6,110,257 EXPENSES AND LOSSES Property and equipment, net of accumulated depreciation of $140,325 and $100,562 90,155 137,964 Distributions supporting University 5,388,031 6,784,775 Other assets 771,496 444,035 Distributions to life income participants 359,902 481,806 Irrevocable trusts 11,032,292 11,324,421 Distributions, other 113,136 240,797 Assets managed for Buchanan Alumni House 300,263 318,749 Program, other 397,734 418,074 Net funding to be provided from Buchanan Alumni House 164,439 192,495 Management and general 653,349 792,742 Total assets $193,458,626 $179,729,531 Fundraising 867,146 823,969 LIABILITIES AND NET ASSETS Uncollectible promises to give - 375,844 Accounts payable $ 47,020 $ 41,490 Total expenses and losses
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