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FAQ: How the Foundation works with the University
Why does a state university need private support?
The University of Iowa is state-assisted rather than state-supported: 13.5 percent of the UI's operating budget is provided by state appropriations, and 11.6 percent by tuition and fees (FY 2005-06 figures). State support is critically important, but it continues to decline as a percentage of the University's total operating budget, making private contributions from alumni and friends increasingly important, if the UI is to fulfill its mission of excellence in education, research, and service.
How does the Foundation serve the University?
The University of Iowa Foundation exists solely for the UI's benefit, serving as the channel preferred by the UI for private gifts to all areas of the University. Located in the Levitt Center for University Advancement, the Foundation is governed by a board of directors that elects its officers and appoints its staff.
Through annual giving programs, planned gifts (via wills, trusts, and other methods of giving), and special-purpose campaigns, the Foundation works with all 11 UI colleges and other units (such as the UI Libraries, arts facilities, athletics programs, and the UI Hospitals and Clinics) to generate private support from alumni and friends.
What are the UI's fund-raising priorities and who sets them?
Because the UI Foundation was established to facilitate the University's mission, the Foundation's major initiatives, such as large capital campaigns, are set by the University's President, Provost, and central administration with the concurrence of the Foundation's management group and Board of Directors.
College and department fund-raising priorities are recommended and approved by deans and the UI administration with advice and cooperation from the UI Foundation's executive staff. However, some fund-raising projects evolve from the ideas of external individuals or constituencies -- Foundation staff members work with donors who demonstrate an interest in supporting any part of the University.
How is the Foundation funded?
Contributors to The University of Iowa Foundation may wish to know how much of their charitable dollar is directed to the intended cause and how much is used to cover administrative and fund-raising costs.
We're happy to report that the UI Foundation's cost per dollar raised is just 12 cents, a figure at the lower end of the range of 10 cents to 20 cents per dollar raised for most major universities.
It's also important for contributors to know how such costs are paid. Like most university foundations, the UI Foundation relies on a mix of resources:
- A small fee on invested funds, payable annually from each fund's earnings
- Interest earned on cash gifts awaiting investment or expenditure
- Fees for services provided to The University of Iowa
- A small, one-time fee applied to all non-endowed gifts when they are received
- Gifts designated specifically to support the Foundation's operations
These funding sources help the UI Foundation provide the UI with a wide array of professional staff and services that benefit your areas of interest and the entire University. Without these resources, the UI Foundation could not engage in an active fund-raising program to support the mission and goals of the University.
Does the UI Foundation make grants to members of the UI community or other applicants?
The Foundation was established to encourage gifts to the University and to act as a conduit for contributors to their areas of interest. Very few gifts (less than 1 percent in 2005) come to the Foundation as undesignated funds. Such funds are not distributed at the discretion of the Foundation. Instead, the UI President directs these funds to meet areas of greatest need within the University.
Requests to the Foundation for undesignated funds are channeled from individuals to their department heads and/or deans. Such requests are then reviewed, prioritized, and approved by the UI President and/or the Provost. Requests made directly to the Foundation are redirected through proper channels.
How does the UI Foundation work with the UI Alumni Association?
The UI Foundation and the UI Alumni Association are partners in encouraging the full participation of alumni and friends in advancing the institution. We encourage both your membership in the UI Alumni Association and your support of the University through UI Foundation gift support.
The UI Alumni Association maintains and strengthens the ties between graduates and the University. The association serves more than 50,000 members and brings Iowa graduates and friends together through programs such as Iowa Clubs and on-campus Reunion Weekends and through the Iowa Alumni Magazine.
The University of Iowa Foundation is the preferred channel for private gifts to all areas of the University. Though it is structurally separate from The University of Iowa, it exists solely for the UI's benefit. Gifts made through the UI Foundation directly support areas -- including the UIAA -- identified by the donor.
Do my UI Alumni Association membership dues qualify as a gift to the Foundation?
UI Alumni Association efforts are supported primarily by membership dues, gifts, and other self-generated revenue. In addition, private gifts may be made through the UI Foundation to support the Association.
While all UI Alumni Association dues payments qualify as charitable contributions, UIAA members who support the Association at its Old Capitol Club recognition levels ($100 minimum) and above also are recognized as University of Iowa contributors through the UI Foundation.
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