Faculty Senate September 17, 2013 A UBURN U NIVERSITY F OUNDATION AND C OMPREHENSIVE C AMPAIGN B RIEFING

Auburn University Foundation: A non-governmental, non-profit organization separate and distinct from Auburn University [separate 501(c)(3)] Purpose:  Receive charitable contributions for the benefit of AU and AUM  Assure donations are kept separate from state funds Auburn University Foundation

 Manage AU, AUF, AAA, TUF endowments. AUF investment objective: To earn a total return (net of portfolio management fees) within prudent levels of risk, which is sufficient to maintain in real terms the purchasing power of the endowment’s assets and support the defined spending policy. Auburn University Foundation

Auburn University Foundation Board  Consists of 24 voting directors who serve four-year terms  3 Ex officio, non-voting members: AU President AUM Chancellor Auburn Alumni Association President Auburn University Foundation

AU/AUF Endowment | Update thru 7/31/13  Combined Market Value (12/31/2012): $488,247,605  Distribution to the University: $17,229,000  2012 Endowment Performance: 9.9%  Endowment Annualized Returns: One-year13.6% Three-year8.8% Five-year4.3%  Combined Market Value (07/31/2013): $524,962,719  2013 Endowment Performance (through 7/31): 7.7%

2013 Endowment Distribution / Designation Endowment Distribution Endowment Designation

Spending Formula A weighted calculation of two components: First component (80%) is the prior year payout amount adjusted for inflation (CPI) Second component (20%) is the spending policy target rate (currently 4%) applied to the 12-month avg. of market values [80%)(Prior year’s payout)(1+CPI)]+[(20%)(12-month average of market value)(4.0%)] Endowment Spending Calculation Example: Payout Calculation: [(.80)($40,000)(1+.034)]+[(.20)($1,080,000)(.04)] = $41,728 Endowment Spending Formula

Endowment Asset Allocation

2012 Development Results | calendar year  2012 Total Gifts and Commitments$111,001,242 $76,424,036Outright Gifts and Pledges $9,494,065Deferred Irrevocable Gifts $25,083,141 Deferred Revocable Gifts  Four Year Results 41% cumulative increase

Campaign Timeline Preparation Phase Through Dec. 31, 2012 Goal: $300 million Actual: $400.6 million Leadership Gift Phase Jan. 1, 2013 (24-30 months) Goal: $400 million Cumulative: $700 million CAMPAIGN KICKOFF Public Phase months (Dec. 31, 2017) Goal: $300 million Cumulative: $1 billion CAMPAIGN CELEBRATION CAMPAIGN AUTHORIZATION Post- Campaign Assessment

Campaign seeks to secure at least $1 billion in new gifts and commitments, both spendable/annual and endowed, for Student Support, Faculty Support, Programmatic Support, and Facility Support. Endowment Giving - for a campaign of $1 billion, it is expected that approximately 25-35% of the total will be endowment commitments. Deferred Gifts - for a campaign of $1 billion, it is expected that approximately 30% of the total will be deferred gifts. Deferred gift instruments, such as gift annuities, charitable remainder trusts, and simple bequests often are designated for endowment. Financial Campaign Objectives

Volunteer Engagement – new volunteers will be engaged to serve Auburn during the campaign. Donor Relations and Stewardship - the nature/level of donor appreciation and stewardship should be enhanced during and after the campaign. Annual Giving - the annual giving program should be positioned to generate increased alumni participation and secure gifts in excess of $5 million annually. Sustainable Giving – the level of annual philanthropic support will be elevated during the campaign. Post campaign aspiration is to maintain new gifts and commitments of approximately $100 million annually, economic factors permitting. Additional Campaign Objectives

Campaign Progress | THROUGH Area of Support Working GoalProgress% to Goal Students$237,362,500$129,384, % Faculty$139,435,000$29,857, % Programs$377,453,553$301,203, % Facilities$338,720,559$39,468, % Totals$1,092,971,612$499,913, %

Campaign Progress | THROUGH Area of Support Outright GiftsDeferred Campaign and PledgesIrrevocableRevocableTotal Student Support Annual 61,620,310341,6264,585,50266,547,438 Endowed 32,988,2786,791,23023,057,46562,836,974 Subtotal $94,608,588$7,132,856$27,642,967$129,384,411 Faculty Support Annual 2,367,16522,15702,389,321 Endowed 24,631,101712,5062,124,43127,468,038 Subtotal $26,998,265$734,663$2,124,431$29,857,359 Program Support Annual 172,551,19012,455,56442,867,711227,874,465 Endowed 54,619,0864,246,18914,463,40173,328,676 Subtotal $227,170,275$16,701,753$57,331,112$301,203,141 Facility Support Annual 32,541,6774,414,9922,165,53439,122,203 Endowed 1, ,000346,325 Subtotal $32,543,002$4,414,992$2,510,534$39,468,528 Totals Annual $269,080,341$17,234,339$49,618,747$335,933,427 Endowed $112,239,789$11,749,925$39,990,298$163,980,012 Totals $381,320,130$28,984,265$89,609,044$499,913,439

Campaign Progress | THROUGH COLLEGES AND SCHOOLSCampaign Goal Progress toward Campaign Goal (through ) % of Progress toward Goal Agriculture (includes AAES)$42,000,000$27,116, % Architecture, Design & Construction$30,700,000$10,346, % Business$100,000,000$66,362, % Education$34,900,000$8,512, % Engineering$206,600,000$87,712, % Forestry & Wildlife Sciences$19,804,112$13,419, % Graduate School$1,500,000$243, % Honors College$4,000,000$1,093, % Human Sciences$36,000,000$16,414, % Liberal Arts$22,950,000$14,369, % Nursing$18,800,000$6,801, % Pharmacy$21,050,000$5,076, % Sciences & Mathematics$34,000,000$12,743, % Veterinary Medicine$63,110,000$38,839, %

Campaign Progress | THROUGH CAMPUS-WIDE UNITSCampaign Goal Progress toward Campaign Goal (through ) % of Progress toward Goal Alabama Cooperative Extension Sys.$10,000,000$7,191, % Alumni Affairs$7,150,000$4,248, % Athletics$223,000,000$123,528, % Auburn University Montgomery$12,500,000$11,511, % Central Classroom Bldg. (proposed)$49,500,000$00.00% Diversity & Multicultural Affairs$4,900,000$760, % Enrollment Services$41,000,000$20,131, % Libraries$5,000,000$1,558, % Museum$7,500,000$3,418, % Outreach$10,657,500$142, % Performing Arts Center (proposed)$60,000,000$00.00% Research$17,100,000$4,353, % Student Affairs$7,250,000$668, % Sustainability$2,000,000$15, %

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