Building a Foundation for the Future

Successful Endowment

Matching

Championing Hispanic Higher Education Success

“Building America’s Future”

Presented By UNM-Valencia

Office of Planning and Development

Cindy Shue, Senior Program Manager

Marcus Gallegos, Development & Donor Relations Manager

The contents of this presentation were developed under a grant from the Department of Education. However, those contents do notnecessarily represent the policy of the Department of Education, and you should not assume endorsement by the Federal Government.

Presentation Focus

• Valencia County, New Mexico

• Department History & Structure

• UNM-Valencia Campus Development Board

• Barriers Activity

• Raising & Sustaining the Endowment Match

• Investing, Tracking, & Reporting

• Annual Development Time Line

• Top 10 Reasons to Include Endowment Matching in

your grant proposals

• Questions?

Championing Hispanic Higher Education Success

“Building America’s Future”

Valencia County, NM pop. 75,940

UNM-Valencia Campus established 1981

First Development Board created in 1997

Historical Department Structure

First Title V Grant Awarded: 1999-2004

Activity: Institutional Advancement

Increase the campus capacity to raise funds

Establish a viable endowment for institutional stability

Increase campus capacity for corporate/community connections

Increase quality grant-writing and potential grant funding

** First Development and Donor Relations Manager and Donor Relations Assistant hired in 2000

Current Department Structure

In 2014, the campus reorganized to include a more focused effort on grant writing and fundraising.

Today our office operates year-round with 3 full-time staff members, supported by institutional funds:

Senior Program Manager, Contracts & Grants

Development & Donor Relations Manager

Member/Data Relations Coordinator

And volunteers from our

Development Board!

UNM Valencia Development Board

• Who?

18 community minded business people/ citizens with a passion for higher education & our community

Representation from banks, insurance companies, railroad, florist, private scholarship sponsors, manufacturing & distribution, etc.

• What focus?

Raising funds for scholarships

• How does it work?

Members serve 3 year terms

Officers include President & Vice President

Meeting held every other month

Committees made up of board members to support special events

Endowment SuccessSo . . . . what is an endowment?

Title III and Title V Grants

Since 1999, UNM Valencia has received 5 Title V grants (individual and cooperative), 1 CCRAA STEM grant, and 2 Title III STEM grants.

Each awarded grant includes Endowment as an activity.

To date, all former grant endowment matches have been met, with 2 endowments in progress.

How to Build Endowments into your

Grant Proposals

Up to 20% of grant budget can be used for endowment

How much can your campus match over the life of the grant?

Use leftover budget each year to build your endowment goal

Institutionalized salaries = increased endowment commitment over time

Example Year 1 Year 2 Year 3 Year 4 Year 5

Math Coordinator $40,600 $41,818 $43,073 $31,689 $16,320

$50,000 Endowment $5,000 $5,000 $5,000 $15,000 $20,000

Activity: Barriers to Student Success

• Take an index card and write down the needs of your campus or students that require you to raise funds.

• With a partner, discuss these needs and any barriers you have or may encounter.

• Share your ideas with everyone.

What’s the Hook?

Raising the Match

The match!!! - Where else can you find an opportunity to match your gift dollar for dollar and be guaranteed that your money stays in your community and continues to do good for years to come?

“This scholarship helps with more than just money----it

does wonders for my self-esteem.”- Frank Ballejos, Criminology

“Thank you, ma’am, you’ve done worlds for me

and mine. I’m in your debt, and I promise that,

through my success, I will pay you back.” - Keith Diegel, General Science

Sustainable Scholarships – Endowing your scholarships with matching dollars allows your campus to provide scholarships in perpetuity.

Naming opportunity – create a lasting legacy for your family or loved one that will support students for generations to come.

Who?

Private & Corporate donors

Alumni

Faculty, staff, and retirees

Board members – utilize their connections

Past donors, new businesses, community partners

Internship/ Apprenticeship sites

Engaged community members

Fundraising with Events

We currently have 2 fundraising events and at least 1 stewardship event every year. Create sponsorship opportunitiesCreate a campus VIP list Utilize your board membersStudent engagement

Plan ahead Request sponsorships for the cost of food, decorations, giveaways, etc.Silent/Live auction REMEMBER how much time and money goes into event planning

Sustaining the Match

Stewardship is key to sustaining a strong fundraising program

Personalized thank you notes from you and scholarship recipients

Interactive opportunities for students to meet donors – stewardship events

Keep donors connected - Annual appeal letters- Newsletters

Investing the Match

The UNM Foundation invests and administers the endowment

corpus (raised match + federal funds)

Conservative investment standards: savings, mutual

funds, money market funds but NO Real Property.

Beverly Baker (202) 453-6162

Cannot withdraw or spend any of the endowment corpus

for 20 years

No more than 50% of the earnings can be spent for 20

years

Refer to 34 CFR 628.3 to 34 CFR 628.47

What happens if . . . . ?

Record-Keeping and Reporting

Careful tracking of matching funds, investments, earnings,

and spending is important!

50% of endowment income can be spent for any

designated Educational purpose for the next 20 years.

Example:

Endowment value 6/30/2018 $200,000

Subtract Corpus $180,000

Value of fund Income $ 20,000

Subtract total spent $ 5,000

Fund income $ 15,000

Amount available to spend (50%) $ 7,500

20 Years of reports include:

Amount of Federal funds and amount of Matching funds.

The exact date the corpus was formed

The investment distribution (savings, CDs, mutual funds, stocks, equities, etc.)

Annual and cumulative income earned

All current and historic spending, including administrative costs

Income used:

Record Keeping & ReportingUS Department of Ed Report Site: https://efrs.ed.gov

After 20 years, the endowment is owned by the campus

Endowed Scholarship Awarding Process

Applications open for scholarship in early spring• Application close approx. 3 weeks before fall semester begins.

• Applications managed through AwardSpring™• Scholarship committee review

• Award notifications sent out to students• Students are awarded their scholarships at the annual

Scholarship Awards Reception

• Awards are split between fall & spring semesters• Prevents student from taking all money up front and leaving

school• Helps with retention between fall & spring semesters

Annual Timeline

January—February: Prepare and host 2 major fundraising events Award spring scholarships

March—April: Determine move to spending for fall/spring scholarships Update scholarship application, forms

May—July: Process endowment match with grant funds

August—December: Prepare annual Department of Education endowment

reports Plan and host annual Scholarship Reception Award fall scholarships Prepare for spring events

Successful Outcomes

$558.38

$502,915.29 $447,558.58

$875,982.55

$1,300,252.92

$1,726,842.26

$1,974,387.14

$-

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

UNM Valencia Endowment Balances

Includes funds raised, donations, and 1:1 match with Department of Education Title III and Title V grant funds

Top 10 Reasons

to Include Endowment Matching in your grant proposal:

10. Ongoing source of income in perpetuity

9. Relieves pressure on campus funds

8. Builds campus respectability

7. Provides resources to continue grant activities

6. Encourages donor commitment to our institution

5. Builds a pipeline of future donor gifts

4. Allows the campus to be a visionary for the donor

3. The match is powerful to donors and the investment

2. Creates a permanent tribute and family immortality

1. Improves student retention and success!

Questions?

Cindy Shue – Sr. Program Manager, Contracts & Grants

Phone: 505-925-8552 Email: cshue@unm.edu

Marcus Gallegos, Manager, Development & Donor Relations

Phone: 505-925-8550 Email: mgalle10@unm.edu