How is the Foundation Funded?

  • The Foundation relies mostly on investment income to pay for its operation.
  • The plan ensures that 100 percent of gifts are deposited into the accounts for which they have been designated. If a donor makes a $1,000 gift, $1,000 is deposited into the appropriate account.
  • The Foundation receives no state or university funding.
  • The Foundation spent about 9 cents in 2014 to raise a dollar.

Foundations use many formulas to cover their operating expenses. Some charge a percentage of each gift; others place all gifts in a separate account for six months, using the investment income for operations. Many university foundations are part of their university and receive a fee or stipend from the institution.