Endowment
Proposed Action Plan

(pdf file for printing)

Proposed action objective:

Increase USD’s existing endowment, and establish an Endowment Reporting system for donors.

How does this objective contribute to one or more of USD’s overall strategic goals?

Increasing the endowment is specifically set forth in Goal #5. A larger endowment will strengthen the fiscal viability of the university by putting more dollars in permanently restricted accounts and will contribute to a stronger institutional identity by enabling the University to offer more and higher student scholarships, thus making USD more competitive and attracting a more diverse range of students. With an Endowment Reporting system, USD will be able to report to its donors, on an annual basis, the financial status of their endowment gifts, thus demonstrating USD’s credibility, reputation and record of good management performance.

Who is responsible for implementing and monitoring this objective?

The Vice Presidents for Finance & Administration and University Relations, with the assistance of staff in those divisions.

What steps are necessary to achieve this objective?

The endowment will be increased through three methods: Investment earnings will be added to the existing endowment. Tuition increases for new students entering in 2004-05 and 2005-06 are earmarked for a Special Quasi Endowment. Funds will be raised through efforts focused in the following specific areas: Major gifts, by increasing the number of true “contacts” and concentrating on those with the greatest potential Scholarships, by increasing cultivation and solicitation of current scholarship donors Planned giving, by this department has been revamped and revitalized to increase the focus on bequests for the university’s endowment Alumni giving, by restricting to the endowment all dollars raised in excess of a set amount or a percentage of the annual fund goal Other proposed actions to grow the endowment: Develop a compelling case statement Market the importance of the endowment in our publications Embark on an “Endowment Campaign” Recognize donors through a separate endowment society Caveats To the extent that capital projects become a greater priority, less time and fewer donors can be targeted for the endowment. To the extent that deans and their development directors concentrate on other projects, less is raised for the endowment. Expanding our pool of prospects takes time. The Endowment Reporting system must be put in place by Finance and Administration; this may require additional software.

What measurable indicator(s) can be used to monitor progress?

Suggested quantitative indicators include: Investment returns, monitored on a regular basis Adjustments made in the investment portfolio to improve performance Increases in current gifts to the endowment Increases in pledged commitments Increases in planned giving commitments Increases in number of contacts and face-to-face visits with prospective donors

Proposed timeline—what is to be accomplished by:

2005-06	Focus fundraising efforts on increasing endowment through major gifts, planned gifts, annual fund, and scholarship solicitations. Implement Endowment Reporting system.
2006-07 2007-08 2008-09 2009-10	Focus fundraising efforts on increasing endowment through major gifts, planned gifts, annual fund, and scholarship solicitations.

What resources will be required to accomplish this objective?

Financial	May require endowment reporting software plus annual maintenance fee (cost unknown). Salary and benefits for additional fundraising staff.
Personnel	Additional fundraising staff, number to be determined.
Space	Office space for above personnel.
Technical	Possible endowment reporting software, with some support from ITS.