2015 uri foundation endowment report

your investment in the university of rhode island’s future

endowment report june 2015 this report was prepared by the uri foundation to provide an overview of the investment performance and impact of uri’s endowment.

The URI Foundation, on behalf of the University of Rhode Island,

Gifts to URI by Type n endowment:

secures and encourages charitable giving to the

42.6%

University, including those gifts from our alumni,

n direct/expendable:

57.4%

parents, corporations and foundations, and friends that are intended as endowment gifts. These gifts, which are invested as part of the University’s overall endowment, help ensure a legacy of support for URI students, faculty, and programs in perpetuity.

This report has been prepared primarily to share investment performance information related to the University’s overall endowment portfolio. Our donors and fund stewards are our partners in progress and we are pleased to share this report with them.

Annual Endowment Payout The following graph represents the total amount of endowment-generated funds distributed to URI each year, based on the Foundation’s spending policy, for use over the five-year period shown.

Endowed Funds by General Purpose based on total number of funds

74.5% scholarships 20.4% academic/program support 2.6% other 1.5% chairs and professorships 1.0% buildings and equipment

The primary objective of the endowment is to support the long-term needs of the University by maintaining a strong and healthy endowment and by growing the inflation-adjusted value of the assets over time by investing a portion of the endowment’s earning and appreciation back into the fund each year.

in millions

This principal growth is intended to help offset the

$4.0

negative implications of rising inflation and dips in the

$3.0

3.4

3.0

2.7

$2.0

3.7

2.9

business cycle over time. The University’s endowment provides long-term stability and support and helps offset variations in state appropriations supporting URI.

$1.0 $0 2012

2013

2014

URI’s Endowment Value in Millions: as of 12/31/14

2015

2016

$114.3

State Support of URI’s Overall Budget 1999 23% E 2015 8%

$$$$$$$$$$$$$$$$ $$$$$$$ E $$$$$$$$

the endowment by the numbers…

1,075

endowed funds

795

endowed scholarships

17

new funds created in fy2014

The University endowment is made up of a pool of over 1,000 individual endowment funds, each established through the generosity of donors. Each fund is established with a donor-specified purpose at the time it is created, and each has been prudently invested in order to preserve its principal value over time, while generating earnings used to

Asset Allocation 25.9% Us Equity 24.5% Marketable Alternatives 14% Global ex-Us Equity 14.9% Deflation Hedging 10.1% Emerging Markets Equity 8.6% Inflation Hedging 1.8% Cash and Equivalent 0.2% Private Investment december 2014

make a meaningful impact for this and future generations of students. The portion of funds generated from the investment of the entire pool of endowed funds and contributed to the University each year is a very important piece of the overall impact of charitable giving at URI. Last year (FY 2014), a combined $11.5 million in endowment earnings and expendable gifts (non-endowed gifts received) was made available to support the students, faculty and programs at URI. Additional gifts of $6 million directed to further enhance the University’s endowment,

Annual Distribution of Earnings: The payout from the investment of the endowment portfolio to the University varies each year, based on both endowment value and the spending policy, adopted by the URI Foundation Executive Board, for that given year. For use in the upcoming academic year, 2015/2016, $3.7 million will be distributed to support donor specified purposes, including undergraduate and graduate student support; faculty support and professorships; program support, including those relating to experiential learning opportunities; and, vital capital project support.

were also raised in FY 2014.

Who Gave to the University Uri Students Receiving Financial Aid: 75%

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34.5% alumni 32.3% corporations/ 21.4% 11.8%

foundations friends other

Named Endowment Fund Opportunties: Endowments are a meaningful way to create a permanent legacy and to ensure that your longterm philanthropic goals will be fulfilled. A new fund can be established and named with a $25,000 gift and will pay

12,290

alumni, friends and parents supported uri last year with gifts, including those supporting the endowment

out to support its designated purpose once fully funded (typically required within 5 years). Donors may also choose to support an already-existing endowment that aligns with their goals and wishes with no minimum gift requirements.

Development professionals at the URI Foundation are available to help determine the best choice for you.

The Investment of URI’s Endowment

Annualized Return on Investment

Performance: The portfolio’s performance

portfolio, as of June 30, 2014, was 14.9%. The annualized

is calculated on a total return basis, which, for purposes of this report, represents the combination of income, dividends, and gains and losses for the time period reported, net of investment management fees and distributions. The value of the portfolio, which includes all individual endowed funds, was $114.3 million as of December 31, 2014.

returns for the past five years, using the June 30 point-

The annualized return on the University’s endowment

URIF Spending Policy: The URI Foundation Executive Board voted to increase the spending rate for the academic year to 4.8 percent — up from 4.7 percent last year. This rate contains both the University distribution and the Foundation’s management fee. For the upcoming year, the distribution to the University will equal 3.5 percent of the rolling prior twelve-quarter average market value on the designated calculation date (December 31), up from 3.4 percent last year, and 3.1 the prior year. The management fee has been set at 1.3 percent, matching last year’s rate, which had been lowered from the prior year’s 1.4 percent, as the Executive Board moves toward a more impact-centric balance in the breakdown of the overall spending rate.

A complete listing of endowed funds can be found on the URI Foundation website at www.urifoundation.org/endowmentfunds.

in-time date for comparison, are as shown below. increase/decrease as of june 30 2010

13.7% 22.1%

2011

-3.3% 2012 2013 2014

11.3% 14.9%

Conclusion The benefits of endowment gifts are felt far and wide across our campuses, with every dollar helping to support the things that distinguish URI from its peers: its students, faculty and programs. These investments help shape URI’s character and its future, while contributing to its competitiveness on the local, state, national and international levels. The generosity of the University of Rhode Island’s many endowment donors is deeply appreciated. On behalf of the entire university community, we extend to those donors, our heartfelt and most sincere thanks.

If you have any questions about your fund or the endowment in general, please contact Adam Quinlan, Chief Financial Officer, at 401.874.4490 or aquinlan@uri.edu.

79 upper college road, kingston, ri 02881 (401) 874-7900 | foundation@uri.edu urifoundation.org

As is customary with many universities across the country, a one-time gift fee is deducted from all donations to provide essential support to the University’s overall development activities.