Newspapers / Philanthropy Journal of North … / March 1, 1998, edition 1 / Page 6
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Foundations 6 Philanthropy Journal of North Carolina IRS looks at Fidelity The Fidelity Investments Charitable Gift Fund has caught the attention of the IRS, which is concerned that the fund may be more like a bank than a founda tion, according to the Wall Street Journal. March 1998 DouDle-digit growth Educational investments continue to grow The 1990s continue to be ei decade of investment success for colleges and universities. Stocks, bonds, real estate and other institutional Investments grew at a double-digit pace last year. By Sean Bailey College and university endow ment assets now exceed more than $150 bilHon in value, according to a study released by the National Association of College and University Business Officers. The survey results reflect contin ued growth in endowment funds and continued success in investing those assets for colleges and universities. In fiscal year 1997, the average rate of return of investments grew to 20.4 percent, up from an average return rate of 17.2 percent in 1996. The study says 1997 was the sixth time the endowment investments grew by double digits in the 1990s. The study excluded pledges and working capital. The results of the 1997 NACUBO Endowment Study come from a sur vey of 640 colleges and universities, with 498 respondents, a 77 percent return rate. The study is considered the indus try standard for measuring perfor mance of institutional management of college and university endowments. Indhidual institutions had invest ment rates of return from as low as 6.8 percent to a hi^ of 46.9 percent, according to the study “We’re all experiencing phenome nal growth,” says Wayne Coon, chief investment officer for Emory University “I don’t think there’s been a three-year span in history where the rate of return was this high .... The last decade has been unbeliev ably good, but some day we are all likely to go back to a more normal return.” The study says expenditures from the endowments remained at 5.7 per cent. Investment patterns also reflected little change. According to the study, 89.2 percent of the assets included in the study were in marketable securi ties such as stocks, bonds and cash. Only five percent were in nonmar- ketable securities such as real estate, venture capital and oil and gas investments. The remaining assets were invested in other investments. Endowments normally include stock, cash and real estate received as gifts by the institutions. Earnings typically fund a range of needs including scholarships, new construc 1997 NACUBO Endowment Study Here is a list of the top 10 U.S. university endowments, with their 1996 totals, 1997 totals and the per centage change. The 1997 totals represent the 12-month period ended June 30. Institution 1996 1997 % change 1. Harvard University $8,811,785,000 $10,919,670,000 23.9 2. University of Texas System $5,697,150,000 $6,709,945,000 17.8 3. Yale University $4,853,010,000 $5,742,000,000 18.3 4. Princeton University $4,467,000,000 $4,940,900,000 10.6 5. Stanford University $3,779,420,000 $4,473,825,000 18.4 6. Emory University $3,013,112,000 $4,273,543,000 41.8 7. University of California $2,572,492,000 $3,133,252,000 21.8 8. Massochusetts Institute of Technology $2,476,630,000 $3,045,756,000 22.9 9. Columbia University $2,558,090,000 $3,038,907,000 18.8 10. Texas A&M University $2,458,043,000 $2,951,463,000 20.0 Source: National Association of College and University Business Officers. tion and expansion of educational facilities, educational programs, and other operating expenses. Investments by the institutions did not fare as well as the Standard and Poor’s 500 Stock Index over the same period, which had a 34.7 per cent return. However, the institutions included in the study did exceed the Lehman Brothers Aggregate Bond Index, which grew by 8.2 percent. The study is avaUable to the asso ciation members for $60 and non members for $85. Call; 202-861-2560. Application deadline is March 9 Federal program to support after-school care for children With millions of dollars in funding from the Charles Stuart Mott Foundation, the 21st Century Community Learning Centers pro gram promises to have real Impact on the lives of young people. By Rachel Mum A U.S. Department of Education pilot program will distribute $40 mil lion this year to establish before- and after-school day-care programs at public schools across the nation. “These grants will help expand programs where kids can go after school and feel safe and get proper instruction and supervision for their homework and other needs,” said U.S. Secretary of Education Richard Riley at the announcement of the grant program. The 21st Century Community Learning Centers program will award grants to approximately 300 rural and inner-city public schools in partnership with local communities to provide youth with expanded learning opportunities in a safe, drug-free environment. The grants, ranging from $35,000 to $200,000, wiU fund homework cen ters, mentoring in basic skills, drug and violence prevention, recreational activities and services for children with disabilities. The deadline for grant applications is March 9 and announcement of awards is sched uled for mid-May. In January, a proposed five-year, $1 billion expansion of the grant pro gram got a significant boost — a pledge of up to $55 million from the Charles Stuart Mott Foundation. “The 21st Century Community Learning Centers program goes to the core legacy of the Mott Foundation, budding off our earliest work to encourage and train commu nities and schools to work together to address community needs and stu dent achievement,” says William S. White, the foundation’s chairman, president and chief executive officer. White was joined by President Clinton, First Lady Hillary Rodham Clinton and U.S. Secretary of Education Richard Riley for the announcement of the gift. “We are determined to help Americans succeed in the workplace, to raise well-educated healthy kids, and to help Americans succeed at the toughest job of all, that of being a par ent,” said President Clinton. ‘And the Mott Foundation has gone a long way toward helping us. I thank them.” The Mott Foundation money will support the achievement of four goals; integrating learning into after-school programs; expanding access to quali ty extended learning programs; ensuring program availabiUty among low-income and hard-to-reach popula tions; and developing innovative mod- Look for CENTERS, page 7 Trian^e Coirnnunity Foundation boosts assets Research Triangle Park Assets of the Triangle Community Foundation in Research Triangle Park have passed the $50 million mark, growing to $51.6 million. The foundation, which announced the milestone to its board of directors in February, says in its recently released annual report that its assets grew to $45 million in the 12 months ended June 30,1997, from $34 million a year earUer. Those assets are held in 266 individual funds. The increase in the most recent fiscal year was generated through contributions from 1,228 individuals, companies and organizations and a 20.9 percent investment return on the foundation’s endowment funds. The foundation was created in 1983 with an initial contribution of $1,000 and has the mission of supporting pri vate philanthropy in Wake, Durham, Orange and Chatham counties. In its most recent fiscal year, it made grants of $3 million to nearly 400 nonprofits in the arts, health, human services, education, the envi ronment and other fields. Total administrative and fundrais ing costs at the foundation represent only 3.3 percent of contributions. The foundation also has made progress in an initiative called the Catalyst Project, that aims to help triple — to $3 billion from $1 billion — the community’s permanent philan thropic resources over the next 20 years. The report says the initiative already has resulted in more than $32 million in current and deferred gifts to nonprofits in the region. The project does not aim to build the foundation’s assets hut rather to encourage “all forms of permanent philanthropy”; family and corporate foundations, endowments of inividu- ai nonprofits and permanent charita ble funds at the foundation. The project involves an effort by the foundation to “convey the mes sage of philanthropy to five key groups who exercise particular influ ence over the region’s resources”; entrepreneurs, professional advisors, major public and private companies, charitable organizations and finan cial institutions. For a copy of the report, call (919) 549-9840. MilMli I V Foundation names president Benjamin B. Kirtland, assis tant director of athletics for development at the University of Connecticut, has been named president of the V Foundation tor Cancer Research in Cary. Kirtland, who oversaw the UConn Athletic Development Fund and the 4,000-member UConn Club, succeeds Keith Inman. Inman has been named assistant vice presi dent at the Health Sciences Center at the University of Louisville. Executive directors leaving Megg Rader has resigned as executive director of Artspace and Patsy Fyfe has resigned as executive director of Playspace, both in Raleigh. Both are leaving to spend more time with their children. UNC-7V begins drive UNC-TV, the 11 -station net work broadcasting service of the University of North Carolina Center for Public Television, hopes to raise $2.5 million during Festival '98, its annual telethon scheduled for Feb. 26-March 29. That's $300,000 more than last year's goal. Lilly Endowment nation's largest The Lilly Endowment has sur passed the Ford Foundation to become the nation's biggest private foundation. The $12.7 billion-fund's growth has been fueled by the growth in the stock value of pharmaceutical maker Eli Lilly and Co., which founded the endowment. Belarus court reduces fine A tax court in Belarus reduced a fine levied by the government against the Soros Foundation from $3 million to $28,000. The foundation was accused of violating its tax-exempt status by getting involved with political activi ties.
Philanthropy Journal of North Carolina (Raleigh, N.C.)
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March 1, 1998, edition 1
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