24, No. 8, Oct. 21, 2004
$174.6 million in private gifts
support university programs
to the UI and to the UI Foundation for the fiscal year that ended June
30, totaled $174.6 million, according to Stephen K. Rugg, UI chief financial
officer and treasurer of the UI Foundation.
In his report at the annual meeting, Rugg noted that Illinois’
economy tends to be slower than the rest of the nation to enter recessions
and that it lags recovery as well. When the Illinois economy slowed
around fiscal year 2001, support for public universities fell further
and has recovered much more slowly than has tax support for the state
as a whole. Universities, Rugg said, face stiff competition from other
important statewide priorities, such as elementary and secondary education
and human services.
Twenty-five years ago, 46.6 percent of the UI’s $612.3 million
budget came from state taxes. For the FY 2005 budget of $3.03 billion,
23.1 percent is derived from state taxes. Grants and contracts as sources
of revenue have expanded from 22.7 percent of the FY 1980 budget to
34.4 percent in the current budget, reflecting the ability of university
faculty and scholars to attract steadily growing amounts of federal
and corporate support.
And while tuition has also increased as a funding source, Rugg pointed
out that students have expressed willingness to pay more for their educations
so long as the university sustains its quality. Private gifts and endowment
income have also ticked upward over the past quarter-century.
Of the $174.6 million in private support received last fiscal year,
$77.6 million, or 44 percent, came from alumni and friends, $44.5 million
(26 percent) was from corporations, $40.9 million (23 percent) was from
foundations and $11.6 million (7 percent) was from associations.
Private gifts support a number of programs across the three UI campuses.
Last fiscal year, $46.7 million of the $174.6 million raised was added
to the endowment, a nearly $17 million increase over FY 2003. Student
financial aid in the form of scholarships, fellowships and student loans
also received a significant boost, climbing from $3.3 million in FY
2003 to $9.6 million in FY 2004. Donors to the UI provided $20.3 million
to academic divisions, $36 million for research, $15.7 million for buildings
and equipment, $11.1 million for public service and extension, $7.1
for faculty and staff compensation, $5.6 million for athletics, and
other specific designations.
Of the $174.6 million received last year, 67 percent or $117.3 million
was designated by donors for current use. Those funds provided support
to a number of programs across all of the university’s campuses.
Twenty-seven percent or $46.7 million was invested in endowed funds,
which are held in pooled investment accounts under the policy supervision
of the Investment Policy Committee of the Foundation Board and the Finance
and Audit Committee of the UI Board of Trustees. Earnings from endowed
funds 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 UI’s combined active and deferred endowment stood at $1.557
billion as of June 30, 2004. The active endowment, which represents
68 percent of the university’s endowment picture, grew to $1.058
billion by the end of last June. That represents a nearly $150 million
increase since FY year-end 2000.
Also included in the UI’s total endowment is $364.5 million designated
as revocable deferred gifts. Another $134 million of the endowment is
in charitable trusts and other irrevocable gifts held by the UI Foundation
The foundation’s endowment goal is to provide a distribution to
the university each year to meet its spending needs coupled with a desire
to protect the purchasing power of the endowment against inflation.
Over the past 10 years, the investment return allowed the foundation
not only to meet the spending and inflation objectives, but also permitted
a net real return to the endowment of 2.1 percent.
Growth of the endowment over the past decade, Rugg said, has enhanced
many important academic efforts at the University of Illinois. For instance,
the library’s endowment has risen from $9.4 million in 1994 to
$25.9 million as of June 30 this year. Endowment for professorships
has increased from $22.3 million to over $63.3 million. Graduate fellowships
have climbed from $17.5 to $60.4 million. Endowed chairs have soared
from $15.7 million 10 years ago to $111.8 million by the end of FY 04.
And undergraduate scholarships and student aid endowment jumped from
$33 million to $119 million over the past 10 years.
Private gifts to the UI and the foundation of testamentary commitments
and irrevocable life-income arrangements have risen dramatically over
the last decade. Testamentary commitments – deferred gifts made
through bequests, life insurance, retirement accounts and other plans
– rose from $114.3 million in 1994 to $368.9 million in 2004.
Irrevocable life income arrangements, such as charitable trusts and
annuities, to benefit the UI during the same period rose from 291 gift
commitments of $48.7 million in 1994 to 648 gift commitments of $134
million in 2004.
Membership in the Presidents Council, the university’s highest
donor-recognition program administered by the UI Foundation also has
more than doubled over the past 10 years. Rugg said membership in the
Presidents Council rose from 4,238 individuals in 1994 to 9,161 in 2004.
“Generous responses to various fund-raising efforts have produced
steady growth in total endowment. Total market returns combined with
new-gift development have produced a total endowment today that is more
than three times what it was ten years ago, rising from $490.8 million
to $1.557 billion,” said Rugg. “That translates to total
endowment growth of 12 percent over the past decade.
More than $22
million in gifts to benefit UI
Gifts totaling well in excess of $22 million earmarked for UI programs
at Chicago, Springfield and Urbana-Champaign were announced Oct. 15
at the UI Foundation’s 69th annual meeting.
The gift announcements were part of the three-day meeting conducted
by the foundation, the university’s private-gift fund-raising
arm. More than 500 alumni and friends of the UI attended the event on
the Urbana-Champaign campus.
Recognized at the business meeting:
- Gary and Daylene
Lichtenwalter of Aspen, Colo., whose deferred gift of more than $2
million will provide scholarships to undergraduates enrolled at any
of the three UI campuses. Priority for the Gary R. Lichtenwalter Scholarships
will be graduates of Joliet Township High School and/or Joliet Junior
College. A 1958 graduate of JTHS, Lichtenwalter attended Joliet Junior
College before earning his bachelor’s degree in finance from
the UI in 1963.
The following gifts
support the Urbana-Champaign campus:
- An outright and
deferred gift totaling $5 million from Dick and Carole Cline of Wheaton,
Ill., will create the Center for Study of Democratic Governance in
the College of Liberal Arts and Sciences. The center, for which the
Clines’ gift is the founding endowment, will play a key role
in educating UI students and in generating ideas, research and information
that will help develop civic leaders, invigorate civic participation,
and enhance the understanding, reach and practice of democracy.
- An outright
gift of $2 million from Jeane Erley of San Diego and the family of
Jeane and Richard Erley will create the Richard A. Erley Leadership
Development Program in the College of Business. The Erley Program
will provide support, specialized training and distinctive educational
experiences to help College of Business students prepare for and gain
a competitive edge in the business world.
- An outright gift
of $1.5 million from the Demirjian family of Decatur, Ill., and their
business, The DemirCo Group, will lead to construction of the Demirjian
Indoor Golf Facility. The comprehensive facility will allow for year-round
practice, training, instruction and research.
- A $1.5 million
outright gift pledge from H. Richard McFarland of Indianapolis will
help fund construction of a carillon/campanile, which will be named
in memory of McFarland’s wife, Sarah “Sally” McFarland.
Plans for a privately funded carillon on the Urbana-Champaign campus
have been in the works since the 1980s. The carillon will be able
to produce fully harmonized, elaborate music, including compositions
written specifically for the carillon as well as transcriptions of
music written for other instruments.
- A $1.2 million
bequest from Arthur R. Wyatt of Champaign will endow the men’s
varsity golf head coach. Wyatt was a member of the Fighting Illini
golf team and assistant golf coach for 15 years while also serving
as a professor of accountancy until 1966. After a career at Arthur
Andersen & Co. in Chicago, Wyatt returned to his alma mater in
1992 as an adjunct professor of accountancy, a position he still holds.
- A gift of real
estate from Richard and Sylvia Eckhardt of Fallbrook, Calif., will
create an endowment that will support a professorship, fellowships
and scholarships in civil engineering as well as scholarships for
undergraduate students involved in InterVarsity Christian Fellowship
and Campus Crusade for Christ.
- A seven-figure
bequest from John and Carol Greenleaf of Saratoga, Calif., will create
the John and Carol Greenleaf Endowed Chair in Molecular and Integrative
Physiology in the College of Liberal Arts and Sciences.
- A deferred gift
of more than $800,000 from Helen Davies of Lombard, Ill., and her
late husband, James, will support the Leadership Initiative in the
College of Agricultural, Consumer and Environmental Sciences.