2
FRIDAY, NOVEMBER 19, 2004
foundation
from PAGE 1
proves accurate, athletic scholar
ship expenses will have increased
more than 10 percent in just one
year.
Until last year, the founda
tion had met the total amount of
requested scholarship funding
every year since its inception.
In the 2003-04 fiscal year, the
foundation initially fell about
$160,000 short on scholarship
expenses, which totalled about
$7-24 million.
The group met its fund-raising
goal later in the year and had the
opportunity to pay the scholarship
cost retroactively. But rather than
make up the funding shortfall, the
foundation decided to put the rev
enue toward 2004-05 scholarship
costs.
The athletics department picked
up the rest of the tab for the first
time in the foundation’s history.
Last year’s $160,000 deficit
■was funded through an unexpect
ed surplus of money generated
from basketball ticket sales, said
Martina Ballen, senior associate
athletic director for business and
finance.
This year, the athletic depart
ment is preparing to help fund
scholarships once again, having
set aside about $600,000 for them
in the budget, said Dick Baddour,
director of athletics.
These funds account for about
1.4 percent of the department’s
$43 million 2004-05 budget.
“It’s a core value for us to have
a broad-based program,” Baddour
said. “We could solve the problem
by cutting sports. We don’t want
to do that”
He also said that it is diffi
Fall Clearance Sale
Friday, Nov. 19 & Sat Nov. 20
Additional 50% off
' : ‘ 431 W. Franklin Street.
across from the Curolinu Brewery
*'l? V* vl v* / rCf’ j
i * * ' i'* .**, ' j
FMMCUL SERVICES * S
FOR THE GREATER OOOD~ M
Know an outstanding UNC faculty or staff member who deserves special recognition?
Nominate him or her to be a TIAA-CREF Honorary Tar Heels Coach for a game!
The top three nominees will receive two tickets to the Maryland vs. UNC basketball game,
Saturday, Jan. 8, 2005. The top nominee will be the game’s Honorary Coach and will receive
courtside seats, a locker room tour and videoboard recognition during the game. And as a
nominator, you’ll be registered to win a TIAA-CREF prize pack that includes game tickets.
To make a nomination, visit www.Tar' fsefßlue.com, click on the TIAA-CREF button
on the right side of the web page, fill out and send the entry form.
SHOW THAT SPECIAL FACULTY OR STAFF MEMBER HOW MUCH THEIR EFFORT IS APPRECIATED.
GET THEM IN THE GAME!
cult to determine what services
will be impacted, as the money
comes from the general operat
ing fund.
Cuts could be handed down to
individual sports, salary increases
for personnel, travel services or
maintenance for facilities, Baddour
said. “You hope it doesn’t come
from support services for student
athletes.”
Senior Associate Director of
Athletics Larry Gallo said he is
hesitant to make any projection
regarding athletic scholarship
costs for next year until a deci
sion has been made on tuition
increases.
‘I would hope to God ’OS-06
isn’t a million dollars more,” he
said. “Right now, we’re just going
to sit tight”
Gallo said the department is
pushing back its typical December
date for projecting next year’s
scholarship costs to January, pri
marily because of current tuition
talks.
“It all makes us very nervous
about the future, especially as you
pick up (The Daily) Thr Heel every
day and read about this Tuition
Task Force,” Baddour said.
The cost of tuition
Last Thursday the TVution Task
Force finalized its proposal for an
in-state tuition raise of between
$250 and $350 and an out-of
state tuition hike of between SBOO
and SI2OO.
If the plan is approved, none of
the more than $lO million gen
erated by the tuition increases
would go to athletic scholarship
funding.
Last January the Board
of Trustees considered using
From Page One
some of the money garnered
from tuition hikes to supple
ment the private Morehead and
Educational Foundations and
help offset the rise in costs.
But the BOT ultimately reject
ed the proposal.
“The general consensus among
the faculty was that it really wasn’t
appropriate for other students to
be surcharged for athletic schol
arships when the Educational
Foundation... is there to cover it,”
said Judith Wegner, chairwoman
of the faculty.
Again this year, the trustees will
not consider devoting a portion of
a tuition hike to athletic scholar
ships or merit-based financial aid,
the task force reported to mem
bers of the BOT on Wednesday at
a committee meeting.
But Chancellor James Moeser
said he would like next year’s task
force to discuss allocating a por
tion of student fees to the athletics
department.
Now the department is pursu
ing corporate signage to help fund
the future cost of athletic scholar
ships.
The most financial backing
from the foundation goes to foot
ball, with 85 scholarships totaling
more than $1.6 million this year.
Men’s basketball receives about
$262,500 for 13 scholarships.
All varsity sports, except
fencing, gymnastics, rowing
and men’s lacrosse, receive the
maximum scholarship funding
allowed by NCAA regulations.
Fencing receives no scholarship
funding from the Educational
Foundation.
Building a foundation
The Educational Foundation
Good on 1000 Of more 7j 6*f \ h
plainwhlteß.sx 11 \
autoteed copies, (f y V
Offergood until Jan. 31.2005
C.O. COPIES
Office at 212 E Rosemary St
933-9999
__ J
is an umbrella for the Rams Club
and the Scholarship Endowment
Trust.
When a donor contributes
money specifically to athletic
scholarships, that money is placed
in the endowment trust, which
amounts to more than SIOO mil
lion.
As with most comparable trusts,
only the interest collected off the
total fund can be used to pay schol
arship costs the principle invest
ment remains untouched.
The interest amounts to about
5 percent of the total, or about $5
million, annually.
With scholarship costs now well
exceeding $5 million each year, the
foundation uses Rams Club dues
and other donations to help make
up the difference.
One of the athletic department’s
goals for the Carolina First cam
paign, a University-wide fund
raiser, is to fond an additional 200
endowed athletic scholarships.
At $150,000 each, dona
tions are aimed at enabling the
Scholarship Endowment TVust to
fond the entire athletic scholarship
budget.
Growth of the endowment is
key to the foundation’s continued
success, said John Montgomery,
executive director of the founda
tion.
The foundation has raised
more than $l2O million of its
$175 million goal for the Carolina
First campaign. “We have three
years to go, so we feel pretty good
about where we are,” Montgomery
said.
The foundation’s fund-rais
ing efforts count toward the
University’s total goal of raising
$l.B billion by 2007.
“The endowment has grown,”
Baddour said. “There’s no ques
tion (Carolina First) has had a very
positive impact.”
Paying their dues
The Rams Club, UNC’s ath
letic booster club, offers benefits
to members based on how much
they donate to the foundation each
year.
Last year marked an increase in
dues to help make up the growing
disparity between the endowment
revenue and scholarship costs,
Montgomery said.
All revenue generated from the
Rams Club goes into the general
fund for the foundation to pay costs
not covered by the endowment.
“It had been about 15 years since
(dues) had been raised across the
board,” he said. “We had scholar
ship expenses rising. (The Rams
parrmri Jtfc pitas salads
Uil LUiXjJLIiUJ VEGGIE OPTIONS
Frsk Tkinkiw,. Healtky Eatiw,
OPEN LATE
919.933.4456 115 E Franklin St
warn \
.JH
omi
theory • waiter
rfy j3|ML Chapel Hill
,-mS vIBj 452 West Franklin St
1 919.933.4007
3- -cw&fIHSS Cameron Village
Jgt „ ‘ 919.832.1234
open every day 1
\ jHHBXSSj www.uniquities.com
a I ' E. _ ~H
Wmm T MM
jfi ———"—~—
; f ; Downtown Chapel Hill
’< * ' I*' * V 106 W. Franklin St. (Next to He's Not Here)
ImM 919-942-PUMP
JB www.yogurtpump.com
’ . HOURS: Mon-Sat IT3oam-l I:3opm • Sun noon-11:30pm
Club members) were responsive.
They understood.”
Giving levels now range from
the Student Ram at $25 to more
than $5,000 a year for the Coaches’
Circle designation.
When rates changed, the
Rameses Gift Level, which offers
the option to purchase and main
tain two season football tickets,
increased from $375 to SSOO per
year.
Benefits can include the option
of purchasing season tickets and
parking passes as well as compli
mentary media guides for basket
ball and football.
The foundation dished out more
than $280,000 in complimentary
game tickets during 2002-03,
according to tax records.
And the foundation might
soon add a giving level above
and beyond its highest level of
$5,000 in order to remain com
petitive within the conference,
Montgomery said.
The Rams Club ranks fourth in
the ACC in athletic club size, with
13,042 members. Clemson leads
the ACC with 23,241 members.
But UNC has the largest ath
letic scholarship endowment in
the ACC, clocking in at $lO6 mil
lion, followed by Duke University
and the University of Virginia
which respectively boast $63
million and S4O million.
'Very tight on our budget'
The estimated total cost of
attendance for the current aca
demic year is $13,800 for in-state
UNC students and $27,398 for
out-of-state students, accord
ing to UNC Undergraduate
Admissions.
In 2002-03, athletic scholarship
costs amounted to just more than
$6.7 million. Athletic scholarship
expenses have increased almost 20
percent since then.
Foundation officials are project
ing that the athletic scholarships
funding gap will continue to widen
as long as tuition costs keep climb
ing.
“Our ability to pay scholarship
costs is being outpaced by college
tuition inflation,” said Sue Walsh,
director of the endowment for the
foundation.
A study the foundation con
ducted on its finances predicted
that tuition will increase signifi
cantly faster than fund-raising
revenues.
The Rams Club will reach an
operating deficit of $12.7 million
for the year 2012 alone if it con
tinues to fond scholarships in full
without finding other sources of
(Eljr Mg (Ear UM
SCHOLARSHIP LIMITS
Listed are the maximum number of
scholarships provided for Varsity sports by the
NCAA at UNC.
MEN
Baseball 11.7
Basketball 13
Cross Country/Track and Field 12.6
Fencing** 0
Football (1-A) 85
Golf 4.5
Lacrosse* 12.6
Soccer 9.9
Swimming/Diving 9.9
Tennis 4.5
Wrestling 9.9
WOMEN
Basketball 15
Cross Country/Track and Field 18
Fencing** 0
Field Hockey 12
Golf 6
Gymnastics* 12
Lacrosse 12
Rowing* 20
Soccer 12
Softball 12
Swimming/Diving 8.1
Tennis 8
Volleyball 12
* Under funded Varisty Sports at UNC
** Sports not funded by UNC or NCAA
SOURCE: CAMPUSCHAMPS.COM
DTH/GINNY HENDRIX
revenue, the study said.
By 2012, the foundation will
have accumulated more than a
$57 million deficit, according to
the study.
“The Educational Foundation
will have ceilings every year,” Ballen
said. “That’ll be very tight on our
budget.”
Manning facilities
Funding capital improvement
for athletic facilities is also a char
tered goal for the foundation. To
date, it has contributed to such
capital improvements as the expan
sion to Kenan Stadium and, most
recently, the Eddie Smith Field
House.
The foundation also is respon
sible for paying the balance of a
$35 million expansion of Kenan
Stadium, done in the mid-’9os,
Montgomery said.
The debt will be paid off in
sl.l million increments each year
through 2020.
This payment is factored into
the foundation’s yearly budgets
but is one more hurdle that will
keep it from being able to meet
scholarship needs in the years to
come.
Contact the Projects Team
at mbhanson@email.unc.edu.
CORRECTION
■ Due to a reporting error, the
Nov. 18 brief “UNC’s long-distance
service goes down for two hours”
states that Battery Technology Inc.
was contacted to fix the problem.
It should have stated that the
telecommunications company BTI
was contacted.
To report corrections, contact Managing Editor
Chris Coletta at ccoletta@email.unc.edu.
QHp iaiLj (Ear Mrrl
P.O. Box 3257, Chapel Hill, NC 27515
Michelle Jarboe, Editor, 962-4086
Advertising & Business, 962-1163
News, Features, Sports, 962-0245
One copy per person; additional copies may be
purchased at The Daily Tar Heel for $.25 each.
© 2004 DTH Publishing Corp.
All rights reserved
W' 1 Star am
i1 • HPI
jjjfloWiV tM
.■••;%•''•
"^morehe^
Nov. 18, 2004-Jan. 2,2005
> For show times and tickets,
call 919.962.1236 or visit
www.moreheadplanetarium.org
250 E. Franklin St., Chapel Hill, NC