23, No. 8, Oct. 16, 2003
FY03: UI and UI Foundation receive
$168 million in private gifts
Gifts to the UI and the UI Foundation for the fiscal year that ended
June 30, totaled $168 million, according to Stephen K. Rugg, UI chief
financial officer and treasurer of the UI Foundation. Of the $168 million
received, $44.5 million was given directly to the UI and $123.5 million
was contributed through the foundation, the private gift arm of the
Rugg announced the
private gift figures at the UI Foundation’s 68th annual meeting,
held Oct. 10. Prefacing his report, Rugg commented on the budget for
the entire university. “Twenty-five years ago, almost half of
the university’s total budget came from state taxes. If that were
true today, the impact of the state’s economic malaise would be
much, much greater than it has been so far. Over the past 25 years,
however, we have been able to diversify the major sources of budget
support in significant ways. Today, state tax support comprises less
than a quarter of the university’s total support. As any chief
financial officer will tell you, diversifying your support base is a
Corporations contributed the largest share at 37 percent ($62.5 million),
with alumni contributing 22 percent ($37.7 million), foundations at
21 percent ($34.9 million), friends of the university at 13 percent
($21.2 million), and associations contributing 7 percent ($11.7 million).
Allocation of the funds, as designated by donors:
- $43 million
- $30 million
for other restricted purposes
- $29.8 million
to the university’s endowment
- $22.2 million
for academic units and programs
- $12.8 million
for buildings and equipment
- $10.6 million
for public service and extension
- $5.2 million
- More than $3.3
million for student financial aid.
- $2.7 million
for faculty/staff compensation
Of the $168 million received last year, 78 percent ($131.6 million)
was designated by donors for current use. Eighteen percent or $29.8
million was invested in endowed funds, whose earnings help support an
array of university endeavors, including student financial aid, faculty
and program support. Such investments also provide specified annuity
and life-income funds for many donors.
The university’s combined active and deferred endowment stood
at nearly $1.4 billion as of June 30, more than three times what it
was 10 years ago. The active endowment, 66 percent of the university’s
endowment picture, grew to $904.4 million at the end of last fiscal
for endowment and their growth
Also included in the UI’s total endowment is $359.9 million designated
as revocable deferred gifts. Another $132.5 million of the endowment
is in charitable trusts and other irrevocable gifts held by the foundation
Private gifts to the UI and the foundation of testamentary commitments
and irrevocable life-income arrangements also have risen dramatically
over the last decade, Rugg said. Testamentary commitments – deferred
gifts made through bequests, life insurance, retirement accounts and
other plans – rose from $128.4 million to $368.2 million. Irrevocable
life income arrangements, such as charitable trusts and annuities, to
benefit Illinois during the same period rose from 262 gift commitments
of $44.5 million in 1993 to 635 gift commitments of $132.6 million in
Membership in the Presidents Council, the university’s highest
donor-recognition program administered by the UI Foundation –
minimum $15,000 gift – also has grown. Rugg said membership in
the Presidents Council rose from 3,685 people 10 years ago to 8,821
“Two areas,” Rugg said, “that have become much more
prominent sources of university support are grants and contracts from
all sources – federal and corporate research and development grants
and private gifts from donors. The R&D success of this university
is testimony to the extraordinary scholarship and productivity of the
UI faculty. In very real ways, our faculty members are not only the
creators of our intellectual capital, they are responsible for a sizeable
portion of our operating capital.
“While we’ve done well at diversifying our sources of support,
not all of our dollars are equally flexible. In fact, the vast majority
of those gift, grant and contract dollars are highly restricted by the
terms and conditions established by the grantor or donor,” Rugg
said in exploring the university’s total budget by function.
“Almost 95 percent of our spending on direct teaching comes from
taxes or tuition. Two critical areas of instructional support –
libraries and the operation and maintenance of our campus physical plants
– also are very heavily dependent on tax and tuition support.
In sharp contrast, the bulk of our research activities are funded from
grants and contracts – areas much less affected by dips in the
state’s economy or our share of the state budget.”
Gifts of more
than $15 million to benefit Urbana-Champaign, Springfield campuses
Gifts totaling more than $15 million for programs at UI’s Urbana-Champaign
and Springfield campuses were announced Oct. 10 at the UI Foundation’s
Annual Meeting on the Urbana-Champaign campus.
Those recognized for donations benefiting the Urbana campus:
- A gift of $500,000
from William A. and Carol L. Chittenden of Elmhurst will fund a fellowship
and graduate award in the department of general engineering as well
as a scholarship and fellowship in kinesiology. The fellowships will
promote collaborative, interdisciplinary research between the departments.
- Vodafone, the
U.K.-based telecommunications and networking company, has awarded
$3.3 million to the College of Engineering. One of the largest foreign
grants for a U.S. university, it will establish and maintain the Vodafone-U.S.
Foundation Fellows Initiative, aimed at developing U.S. support for
academics in the advancement of wireless technology.
- A gift of $1.5
million from Intel co-founder and Chairman Emeritus Gordon Moore and
a group of UI engineering alumni associated with Intel have created
the Intel Alumni Endowed Chair in Electrical and Computer Engineering.
James Coleman, professor of electrical and computer engineering, was
honored as the holder of Intel Alumni Chair in a ceremony last month.
- The Pew Charitable
Trusts, based in Philadelphia, has awarded a two-year, $5.8 million
grant to the School of Social Work’s Children and Family Research
Center. The grant will fund the activities of Fostering Results, a
public education and outreach campaign designed to call attention
to federal financing of child welfare and family court issues to improve
the safety and well being of children in the child welfare system.
School of Social Work professors Jess McDonald, Mark Testa and Nancy
Salyers will lead the project.
- A $1 million
commitment coupled with current gifts from Suzanne and David Martin-Reay
of Idaho Falls, Idaho, supports scholarships in International Programs
- A bequest of
$1.2 million from the late Glenn Ullyot and his wife, Barbara, of
Annapolis, Md., will endow fellowships in the School of Chemical Sciences
and the School of Molecular and Cellular Biology.
- An estate gift
of about $1 million from Thomas Hubbard of Peoria, Ariz., will promote
excellence in the School of Architecture.
n A seven-figure estate gift from Jim and Dena Vermette of Champaign
will provide support scholarships for members of the men’s varsity
baseball team, helping the Alumni Association construct the Alumni
Center, scholarly activities in the College of Business and/or the
College of Liberal Arts and Sciences, and support for Krannert Center
for the Performing Arts and the Spurlock Museum.