3/17/20161 Leveraging Research Dollars Commonwealth of Kentucky Endowment Match Program John C. Hayek, VP of Finance Council on Postsecondary Education

3/17/20162 What is the Endowment Match Program? A program that matches state dollars with private donations to encourage higher education research activities. Encourages private giving because donors “double their contributions” by having them matched dollar for dollar by the state. Endowment proceeds fund chairs, professorships, research scholars, research staff, fellowships, scholarships, infrastructure, and mission support.

3/17/20163 What are program goals? Short-term goals:  Grow university endowments.  Increase the number of chairs & professorships.  Generate increases in externally sponsored research. Long-term goals:  Stimulate business development.  Job creation.  Facilitate Kentucky’s transition to a knowledge- based economy.

3/17/20164 How does the process work? A university receives a gift or pledge from an eligible source. The institution’s governing board approves the gift for match. Campus officials submit a match request form, notice of board approval, and supporting documentation to the Council. Requests that meet Council guidelines are approved and funded.

3/17/20165 What are matching requirements? Gifts and pledges must be newly generated. Gifts and pledges must be from external sources. General fund appropriations and tuition and fee revenue are not eligible for match. The minimum allowable request amount is $50,000. All funds, state & private, must be endowed. Pledges must be in writing & paid in 5 years.

3/17/20166 How is the program administered? General Assembly  Passes enabling legislation  Appropriates funds Council on Postsecondary Education  Establishes areas of concentration  Develops guidelines & procedures  Monitors use of funds & results achieved Institutional Governing Boards  Responsible for program implementation  Approve gifts and pledges for match  Ensure compliance with guidelines

3/17/20167 What level of investment? Between 1998 and 2004, the General Assembly appropriated $350 million to the program. Of that amount, $300 million was allocated to the State’s two research universities and $50 million was allocated to six comprehensive universities. When matched with private giving, this represents $700 million that will be added to the endowments of the State’s public universities.

3/17/20168 What outcomes achieved?

3/17/20169 Endowment Market Value ( )

3/17/ Endowed Chairs and Professors ( )

3/17/ Federal R&D Expenditures ( )

3/17/ Extramural R&D Expenditures ( )