University Secretariat and Legal Counsel

University Secretariat and Legal Counsel

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Funding Model for the Office of Advancement

Approved by the Board of Trustees March 1, 2002

Amended May 6, 2005

Amended October 3, 2008

1.    Background

The original funding model policy was approved by the Board of Trustees in March 2002. Advancement undertook a review of the Funding Model which resulted in proposed amendments to the policy that would reflect the current environment and ensure appropriate and adequate funding for Advancement and for the next comprehensive campaign.

2.    Rationale

In a report from Internal Audit issued in the fall of 2001, it was noted that "...the funding of Advancement remains a serious long-term concern. A more appropriate methodology of providing this funding needs to be determined".

In order to meet increasing revenue targets, post-campaign cost projections are significantly more than the pre-Campaign operating model. For example, locally established tuition policies will require a significant increase in gifts supporting student aid. In addition, the University operating budget is severely constrained and large budget reductions are expected.

Economic trends, post-campaign donor fatigue, and various internal university factors have combined to keep revenue below what was originally expected. Government funding levels have not enabled the University to significantly fill this funding gap. In addition, no new revenue streams that may assist in funding the next capital campaign have been identified.

3.    Funding Model

Elements of the funding model are as follows:

  1. Central operating funds continue.

  2. Administrative recovery of 0.3% of the endowment pool, calculated based on market value at the beginning of the fiscal year.

4.   Accountability and Reporting

4.1 Financial results, including funding results as compared with budget, will be provided to the Advancement Committee on a quarterly basis for discussion and review, and to the Board through the Advancement Report for information.
4.2 The Advancement Budget and funding projections will be reviewed and approved annually through the University budget process.

5.    Policy Maintenance

5.1 Proposed amendments to this policy require approval from the Board of Trustees, through the Advancement Committee of the Board.