University of Maine Foundation Annual Report
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The University of Maine DigitalCommons@UMaine General University of Maine Publications University of Maine Publications 2010 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 Repository Citation University of Maine Foundation, "University of Maine Foundation Annual Report" (2010). General University of Maine Publications. 406. https://digitalcommons.library.umaine.edu/univ_publications/406 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]. Contents Q&A: A Dialogue 1 A Letter from the Board Chair and President 5 Ways of Giving 6 Endowment Funds Financial Review 7 Statement of Financial Position June 30, 2010 8 Statement of Activities for the Year Ended June 30, 2010 9 New Funds Established in FY 2010 10 FY 2010 Facts at a Glance 14 University of Maine Endowment Funds 15 Foundation 2010Annual 2010 Donors 26 Report UMF Officers, Board of Directors, Members and Staff 34 Two Alumni Place, Orono, ME 04469-5792 207.581.5100 or 800.982.8503 100 Foden Road, Suite 303 West Building, South Portland, ME 04106 207.253.5172 or 800.449.2629 What size fund provides a meaningful scholarship? An endowed scholarship www.umainefoundation.org of $20,000 could generate $1000 in annual earnings, which is equivalent to only 4.5%1 of an instate student’s total educational costs. Today’s students Mission Statement face higher costs each year and overwhelming debt. 12010-2011 estimated in-state student budget is $22,134 The University of Maine Foundation, acting as a separate organization, will work Kenneth A. Murray ’68 collaboratively with all entities to encourage philanthropic support by growing the B.S. Forestry | Del Mar, CA endowment through planned/deferred giving for the University of Maine and other charitable organizations while carrying out the donor’s wishes in perpetuity. How will my fund keep up with the real rate of educational inflation at UMaine? Our minimum investment goal is an absolute return of 10%. Our spending policy averages 5.5% and total fees are 2%. The difference is returned to build the principal to offset the ravages of inflation. Endowments should maintain their purchasing power over time. Thomas W. Savage ’68 and Sally Boynton Savage B.A. Economics | Searsport, ME/Key Largo, FL If I start a new endowed fund, when would it actually provide an award to a student? You may set aside a portion of your gift for award in the current year. We generally allow the fund to grow for one year or more for the endowment to have sufficient earnings to make an award. Christine Born Johnson ’82 B.S. Civil Engineering | Portland, ME Photography: Ann Johansson Photography: Kenneth A. Murray | EMH Photography: Edward W. Radgowski all other images: www.photodrake.com The University of Maine Foundation is an independent, non-profit 501(c) (3) organization and was established in 1934. University of Maine Foundation For most students, funding a college education is always a challenge. Paying for tuition means applying for loans, grants, or a job. The recession has made the challenge more formidable than ever. The contracting economy has diminished endowments and scholarship funds, tightened credit, and eliminated the jobs that could have helped support an academic pursuit. It’s also true that the economic uncertainty in the country is making more young people recognize the necessity of higher education. Their financial circumstances, however, may prevent that possibility. Aspirations are denied, potential lost. As you might expect, donors are asking questions as challenging as the times. This is entirely appropriate and welcome, and our annual report is an opportunity to provide answers. We strive to be accountable to you and the students depending on us. Thank you for your support. And your questions. 1 questions 2010and answers In what circumstances would the Foundation ever change the purpose of a fund? We would not change the purpose of a fund without donor’s permission. If it ever becomes impossible to use a fund, then we would seek relief from the Probate court under the cy pres doctrine. A gift agreement that provides alternative uses is always recommended. Edward W. Radgowski, Jr. ’89, ’90G B.A. & M.B.A. JOHN DOE, ’71 Business Administration Vienna, VA Suzanne K. Hart ’68 B.A. Political Science Veazie, ME How do I know that my gift will make an impact? There are many intangible benefits received when you invest in education. Private support that helps students achieve their goals affects eternity— you’ll never be able to tell where your influence stops. Many of our students, faculty and administrators write to our benefactors explaining how the gifts have made a difference. The Foundation strives to keep you in- formed of the fund balance and current earning rate through the annual report. 2 University of Maine Dr. George F. Holmes ’66 Foundation B.S. Agricultural Science Northport, ME Could I give a gift and remain anonymous? Yes. Donor confidentiality is of utmost importance to us. The Foundation strives to maximize donor anonymity to the extent provided by law. Safeguarding donor privacy is good stewardship and a matter of professional ethics. Vance E. Dearborn ’49,’69G B.S. Civil Engineering M.A. Public Administration Evelyn Ellsworth Dearborn ’49,’86G B.A. Sociology, M.A. Liberal Studies Orono, ME Why endow my fund if it doesn’t payout in a down economy? An endowment is about institutional longevity— making a gift in perpetuity. The decade that just passed was highly unusual—a period of incredible growth followed by a devastating recession. A longer perspective reveals a very different picture. UPMIFA2 (Uniform Prudent Management of Institutional Funds Act) outlines how we should manage endowments. 2Information on UPMIFA can be found at http://www.upmifa.org/DesktopDefault.aspx?tabindex=3&tabid=70 Albert R. Curran ’71 B.S. Civil Engineering Gorham, ME Why a Foundation? A separate foundation can raise and manage money for the University, above and beyond that which is available through state funding, at no cost to the University. The Foundation is operated on a day-to-day basis by a professional staff and is advised by a dedicated board of volunteers and committee members. 3 questions 2010and answers What kind of governance is in place to ensure that my gift is used as intended? A board and a stew- ardship committee work diligently to ensure donor intent is carried out in perpetuity. Our success is based on the trust we have earned over the past 75 years with the highest standards of accountability and stewardship. Dr. Stephen A. Norton Professor Emeritus of Geological Sciences Bucksport, ME Elizabeth H. Ruff ’56 B.A. Sociology Freeport, ME Piseco, NY Does the Foundation invest in non-traditional equities? Yes, we have more than 35% of the portfolio in alternatives investments. The invest- ment committee considers many factors including diversification, risk, asset allocation and liquidity. Many times, alternatives have lower volatility and a better risk/return ratio when compared to traditional equities. 4 As our nation continues on the arduous road to eco- nomic recovery, many of our donors are asking good questions that are as challenging as the times. We understand your concerns and welcome your ques- tions—that’s why the theme for our 2010 annual report is “A good time to ask.” In this report, we’re featuring a number of our alumni and friends asking the kinds of questions we’ve been hearing, and that might be on your mind. We hope that these questions, together with Letter from the the answers we provide, will serve as the beginning of Board an open and ongoing dialogue. Chairand This year, the Foundation experienced slow but steady recovery, with assets President/ of $157.6 million. The investment return was 11.1%. Last year, assets totaled CEO $149 million. During 2010, we processed 1,760 new gifts totaling $5,387,222. The Foundation also holds 1,305 funds, an increase of 72 over 2009. Forty of these new funds were created as the result of the Foundation’s 75th Anniversary matching gift program. This program helped establish new named scholarship endowments for the University, and as they grow, they’ll provide valuable assistance to our students for years to come. The current recession is making it more difficult than ever. Tuition at Maine’s land grant university was recently increased by 5.5 percent. This means that an in-state student will pay $10,142 for tuition in 2010-2011—that’s more than 25 times the $400 annual tuition paid by in-state students in 1960. Your continued support is vital and greatly appreciated. As always, we strive to be accountable to you and the students depending on all of us. Thank you for your generosity. Patricia M. Dunn Chair of the Board Amos E. Orcutt President/CEO 5 questions 2010and answers Your gift to the University of Maine Foundation is the gift of a lifetime and an investment in the future. Since 1934, the University of Maine Foundation’s role in supporting the University of Maine has been perpetuated by many alumni and friends who, through their generosity, share a common interest in strengthening the teaching, research and service mission of Maine’s land-grant university. 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 you to support the University of Maine’s continued excellence while also fulfilling your own financial objectives.