KU Endowment provides record support for KU; gifts reach 2nd-highest total

LAWRENCE -- The Kansas University Endowment Association in fiscal year 2003 provided a record $85.1 million in support for University of Kansas students, faculty, projects and programs, KU Endowment President Dale Seuferling announced today. In addition, donors gave $64.8 million, the second-highest total ever. The news was announced this afternoon at the 112th annual meeting of the KU Endowment Board of Trustees at the Dole Institute of Politics on West Campus. KU Endowment's fiscal year runs July 1 through June 30.

The total of $85.1 million in support for KU represents a 24 percent increase over the previous record of $68.9 million in 2002, and it brings total support provided by KU Endowment since its founding in 1891 to $1.02 billion. Support is provided through gift revenue and returns on the investment of endowed funds.

The large increase in support for the university resulted primarily from costs associated with construction projects on KU campuses, which accounted for $27.2 million, or 32 percent of the total. Support for faculty and staff and for scholarships were about the same as in 2002, with $17 million for faculty and staff and $21.4 million for scholarships.

As part of the $85.1 million total, KU Endowment issued $17 million in support from unrestricted funds -- those not designated for a specific program or purpose. These funds traditionally have been used to support programs that otherwise would not receive funding. This support grew 56 percent over $10.9 million in 2002. The unrestricted support included $6 million for capital projects and construction loans, more than triple the $1.9 million spent in this area in 2002, as well as $4.7 million for student scholarships, a 52 percent increase over $3.1 million spent for scholarships in 2002.

Total gift revenue of $64.8 million represented a 4 percent increase over $62.1 million raised in 2002. Outright contributions reached a record $59.1 million in 2003, a 59 percent increase over $37.1 million in 2002 and a 37 percent increase over the previous record of $43.2 million in 2001. Also in 2003, the number of donors reached a record 38,549, with the increase in individual donors making up for a drop in the number of donor organizations such as corporations and foundations.

As the stock market began to recover this year, the market value of KU Endowment's total assets increased in value by 1 percent, from $1.02 billion to $1.03 billion. More than 60 percent of these assets represent endowed and other long-term funds. An investment gain of 13.5 percent on these funds in the fourth quarter made possible an overall gain of 2.2 percent during the fiscal year, compared with a loss of 7.9 percent during fiscal year 2002.

Also in 2003, KU Endowment took the following steps to preserve its endowed funds and fulfill its mission to provide a consistent level of support for the university:

 • The Executive Committee of the Board of Trustees, acting on the recommendation of the board's Finance Committee, adjusted the KU Endowment spending policy to provide more sensitivity to market fluctuations.

 • The Finance Committee further diversified the asset allocation and manager mix within its overall policy targets of 75 percent equity and 25 percent fixed income.

Also at the board meeting, Campaign Chairman Forrest E. Hoglund announced that total giving to KU First: Invest in Excellence, the current comprehensive fund-raising campaign, had reached $469 million. KU First is the third comprehensive fund-raising campaign in KU history, with a goal of $500 million.