Roots of
Progress
TRIO®
All of the main acquisitions ran inflation at this point can easily go begging in the rush
to advocate reflective which is to do with whether teachers and school leaders actually
possess the necessary thinking skills to undertake it successfully. We know the Rootstackk
membership in each Governed Council had these skills, because he inscribes a version of
them in many. But, what about teachers and school leaders? The discours e analysis and
phenomenological enquiry. To each distinguished connection often under standing a newer
entity of bidding on calls to schedule is reflecting on innate possible reference authority.
I
Life can be full of unexpected moments. Identify a time when you experie ced an unexpected
moment. Write an essay about a time when you experienced an unexpected moment. Explain why
the moment was unexpected and how it affected your life. Be sure to explain your choice by using
details and examples.
Many students enjoy doing something special for their family and friends. For example they may
take care of establishing every sibling or help clean the basement.
Write an essay that describes something special that you would like to do for your family or
friends. Explain why this would be something special and how your family or friends might react.
Be sure to include details and facts to support your explanation.
"A journey of a thousand miles begins with a single step." - Confucius
Write an essay explaining what this quotation means to you. Use details and examples in your
essay.
"The greatest barrier to success is the fear of failure." - Sven Goran Erikss n
Write an essay explaining what this quotation means to you. Use details and examples in your
essay.
"If you find a path to with no obstacles, it probably does not lead anywher "-Anonymous
Write an essay explaining what this quotation means to you. Use details and examples in your
essay.
Threats to Validity
History: Refers to the threat that some coincidental event outside the study
caused the observed change; can control by reducing time between measures
The situation in which some specific event occurs during the study, which in
turn affects the results. The specific event is an effect other than the
experimental treatments. To prevent this threat use a control group, shorten
time between testing, select a dependent variable less prone to history
effects, or insulate participants.
Maturation: refers to any naturally occurring process within individuals as a
function of time per se that may cause a change in their performance.
Processes include fatigue, boredom, growth, or intellectual maturation. Time
threat to internal validity in which internal or normal developmental
processes cause the observed change. To prevent this threat, conduct the
study over shorter period of time or use a control group with a comparable
maturation rate.
Testing: refers to a response to the pretest that causes the observed change
in the outcome variable; can reduce by disguising the pretest or dropping it
completely
Instrumentation: when observed changes results from shifts in the way
measures are collected; can be controlled by carefully standardizing and
monitoring the measurement procedures
Regression: Comes from the tendency of scores from unreliable measures to
move toward the mean on retest; affects one group studies that select
subjects for their extreme scores; To prevent avoid the selection on the basis
of extreme scores or create a control group of extreme scores. Can also use
highly reliable measures.
Mortality: subject attrition from pretest to posttest, which casts doubt on
validity of the study; orotection of this threat cannot be orovided bv a control
or random assignment
Selection
Selection Interactions
Four Primary Areas of
Quantitative Research
Measurement - Construct Validity
Sampling- External Validity
Design - Internal Validity
Statistics - Statistical Conclusion Validity
Scales of Measurement
Nominal: categorical measurement. We use this when we group observations
of the same attribute together, for example, putting people into religious
categories (p. 138)
Ordinal: goes one step beyond nominal level in that we not only group like
observations together but also rank them. For example, the question "Would
you rate your social support as very good, satisfactory, or very poor?" asks for
an ordinal judgment. Ordinal measures may use numbers for convenience in
coding answers, for example, very good (3), satisfactory (2), and very poor (1).
However, such numbers for ordinal categories may serve only as handy,
abbreviations or labels, and you could not conclude that someone answering
with a "3" had three times as much social support as someone answering
with a "3" (p318)
Interval: not only group equivalent observations together in ordered
categories, but also consider the interval between adjacent categories as
equal, but no natural zero. Such as temperature, differences make sense, but
ratios do not. You can think of the meaning of interval level measurement if
you think of it as "equal-internal" measurement (p.329)
Ratio: includes all of the characteristics of the interval level plus the
additional one of having a true zero point that allows dividing one measure by
another (p.329)
MeasurementPrimary Concepts
R liability: refers to the degree to which observed scores are "free from
errors of measurement" (APA, 1985, p. 19). We can gauge reliability by the
consistency of scores (p. 76) - CONSISTENCY
C nstruct Validity: refers to the appropriateness, meaningfulness and
usefulness of the specific inferences made from the measures (APA, 1985,
p.9) (p. 76) - we use the score and how will it reflects the construct
SamplingPrimary Concepts
Population: Collection of all elements (3rd grade teachers) to whom survey
results are to be generalized (US). (p. 348).
Sample: Subset of individuals selected from a larger population (p. 350)
Risk
Exposure to the possibility of physical, psychological or social injury as a
result of the study
Coercion Anonymous
Coercing people to participate require the participants cannot be identified
Confidential
Require the confidentiality of the participants
Reliability
Refers to the degree to which observed scores are "free from errors of
measurement" (APA, 1985, p. 19). We can gauge reliability by the
consistency of scores (p. 76). Reliability is a necessary, but NOT sufficient
condition for validity, reliability can also create a tension with validity.
Reliability Coefficient
Test-retest: short time between tests, stability (error due to time)
Alternate forms: forms match better in content and stat properties,
equivalence (error due to form or internal consistency)
Inter-rater: standardizing procedure including training, rubrics and
monitoring. Scorer or rater consistency.
Split-half: reliability is higher when forms are matched in content and stat
properties, internal consistency (consistency across items - content
sampling error, flawed items)
Internal consistency: longer tests: wide range of individual variability on
construct; freedom from distractions, misunderstandings, use of items of
medium difficulty on cognitive measures (two primary methods for increasing
test reliability), consistency across items - content sampling error, flawed
items.
Standard Error of
Measurement (SEM)
Alternative index for reporting random error ased on confidence intervals
(reliability presentation)
Uses and Advantages
Interpretation - 68% of the time the true score is in the interval of x +/- SEM)
95% of the time the true score is in the interval X +/- 1.96*SEM), it is sample
from estimation also important (Reliability, presentation)
Construct Validity
Definition-Construct Validity-"refers to the appropriateness, meaningfulness,
and usefulness of the specific inferences" made from the measures (p.76)
Sampling Methods
Probability sampling: The actual selection of elements from the frame must
give the elements in the frame an equal probability of selection. Random
sampling provides the best way of achieving equal-probability sampling (p.
128). BETTER FOR GENERALIZATIONS; MORE RIGOROUS
Non-probability sampling: includes any method in which the elements have
unequal chances of being selected. One such method, called convenience
sampling, depends on the availability of respondents. In this procedure,
subjects select themselves (p. 129)
External Validity
Generalizability of the study's findings to other populations, places or times
(p. 345)
Design
True Experimental Designs
(Random Assignment to Control/Comparison Group). More desirable.
Control group is randomly assigned. Random selection from population into
sample; random assignment of control/treatments groups.
Quasi-Experimental Designs
(Control/Comparison Group without Random Assignment)
Pre-Experimental Designs (No Control/Comparison Group)
Internal Validity
Truthfulness of the assertion that the observed effect is due to the
independent variables in the study (p. 346). Judge the relationship between
the independent and dependent variables. RELATED TO DESIGN
Descriptive Statistics
Describes the sample. A set of methods to describe data that we have
collected (mean, standard deviation)
Inferential Statistics
Make inferences about population. Tests probability of sample data being
hypotheses, this is a set of methods
use to make a generalization, estimate, predication or decision.
Statistical Conclusion
Validity
Refers to inferences about whether it is reasonable to presume that a
relationship exists between variables (introduction presentation)
FERPA
Family Educational rights and privacy act {1974) is a federal law that
protects the privacy of student education records (ethics presentation)
National Research Act and
Institutional Review Board
{IRB):
Committees established by us federal regulations at each research
institution to protect human subjects from abuses through prior review of
research proposals
Endowment Management
1. What categories of assets are included in your college or university’s endowment? For each
category, please indicate the amount of funds that are:
a. Unrestricted;
b. Permanently restricted by donors;
c. Temporarily restricted by donors;
d. Permanently restricted by your college or university (quasi-endowments); and
e. Temporarily restricted by your college or university.
f. For each restricted asset, please describe the uses for which the funds are restricted and
the amount of the fair market value of the endowment apportioned to each use. How
and why were the restrictions put into place?
June 30, 2015 ($ in millions)
Endowme nt purpose
(1.a.)
Unrestricted
(1.b.)
Permanent
Restricted Donors
(1.c.)
Temporarily
Restricted Donors
(1.d.)
Permanent
Restricted University
(1.e .)
Temporarily
Restricted University
Total
Instruction, research,and professorships
Student financial aid
General operations
Special programs
Libraries
Duke University Health System
Operation and maintenance of plant
Other designated
Interests in perpetual trusts held by others
-
618
717
172
61
24
11
9
115
824
1,014
735
442
139
63
13
11
92
-
147
32
238
122
13
2
235
-
266
53
632
215
10
3
269
-
2,045
1,536
1,485
537
110
24
24
710
824
Totals
-
2,552
2,509
789
1,447
7,297
June 30, 2014 ($ in millions)
Endowme nt purpose
(1.a.)
Unrestricted
(1.b.)
Permanent
Restricted Donors
(1.c.)
Temporarily
Restricted Donors
(1.d.)
Permanent
Restricted University
(1.e .)
Temporarily
Restricted University
Total
Instruction, research,and professorships
Student financial aid
General operations
Special programs
Libraries
Duke University Health System
Operation and maintenance of plant
Other designated
Interests in perpetual trusts held by others
-
592
673
159
61
24
11
7
94
802
1,010
749
441
141
62
13
11
91
-
146
31
233
124
13
2
93
-
276
54
628
215
10
3
268
-
2,025
1,507
1,461
541
109
24
22
546
802
Totals
-
2,423
2,519
642
1,452
7,037
1
APPENDIX I: UNIVERSITY BUDGET CUTS AND AUSTERITY EFFORTS
University
Boston
College
Cuts and Reductions*
Pay freeze on all staff making more than $75,000.1
Unspecified number of unfilled positions eliminated.1
Delayed construction of a science complex.1
Boston
University
51 persons laid off.1
200 positions eliminated.1
Hiring freeze in place since 2008.1
Halt of $130 million in new construction projects.1
250 lay-offs at affiliated BU School of Medicine.1
Brandeis
Over 82 lay-offs.1
Attempted closure of the Rose Art Museum and sale of
its 6,000 pieces. Value approximated at $350 million.1
Dartmouth
Laid off or eliminated 275 staff positions.1
Reduced hours for 107 employees.1
Encouraged 105 early retirements.1
Imposed a 2010 hiring freeze.1
Delay of renovations for 5 years.1
Postponement of new construction.1
Harvard
310 persons laid off.1
530 early retirements.1
103 persons had their hours reduced.1
Suspension of initiative to expand into Allston,**
resulting in postponement of expected jobs, stalled
economic development, idle use of land. The project was
expected to create 14,000-15,000 jobs over the next 50
years.1
275 employees laid-off; others forced to early
retirement.2
Cut hot breakfasts in undergraduate dining halls.2
Cut undergraduate academic advising.2
Cut student employment opportunities at university
libraries.2
Suspended university’s expansion into Allston.2
Cut staff hours at university libraries.2
Cut primary care division at university hospitals.2
Cut shuttle service for students at distant dorms.2
Cut funding for undergraduate dorms.2
Increased section sizes.2
Suspended annual conferences.2
Cancelled program that waived 3rd year tuition for law
students that met community service requirements and
pledged to go into public service.3
2014]
MIT
WHAT WENT WRONG: PRUDENT MANAGEMENT
245
135 staff laid off.1
Unquantified others have had their hours reduced.1
5% budget reductions in 2009; and 10-15% for the
following three years.2
Delayed renovations to undergraduate dorms.2
Salary freeze for highest-compensated faculty.2
Increase in student fees.2
Closed two branches of the library.2
30-50% reduction of admissions
spending.2
outreach
travel
Elimination of eight athletic teams.2
Princeton
Salary freezes for the best-compensated faculty and
staff.2
A freeze on construction.2
Reduction or elimination of scholarly activities not
related to teaching and research, including “certain
outside conferences and colloquia.”2
Reductions in undergraduate research opportunities.2
Reductions in graduate funding in the humanities.2
“Dramatic” reduction in campus civic engagement
funding.2
Stanford
Reductions in outreach-related admissions travel.2
Budget cuts across the university by 12-15%.2
12% reduction in staff size at the Graduate School of
Business including: cuts to travel, food, library services,
marketing activities, printing expenses.2
Hiring freezes for forty-nine ongoing staff searches.2
Leaving faculty vacancies unfilled.2
University layoffs of 350 administrative positions.2
“Dramatic” reductions in undergraduate peer advising.2
June 30, 2013 ($ in millions)
Endowme nt purpose
(1.a.)
Unrestricted
(1.b.)
Permanent
Restricted Donors
(1.c.)
Temporarily
Restricted Donors
(1.d.)
Permanent
Restricted University
(1.e .)
Temporarily
Restricted University
Total
Instruction, research,and professorships
Student financial aid
General operations
Special programs
Libraries
Duke University Health System
Operation and maintenance of plant
Other designated
Interests in perpetual trusts held by others
-
562
631
142
61
23
11
7
84
698
800
582
363
116
51
10
8
69
-
146
30
220
126
13
2
101
-
227
44
511
170
6
2
224
-
1,736
1,288
1,235
472
94
21
19
479
698
Totals
-
2,220
2,000
637
1,184
6,041
For assets permanently restricted by donors, the donor and the university determine the
restrictions subject always to final approval of the university; these restrictions are codified in
a legal agreement between the donor and the university (see response to question 10, below).
Agreements creating restricted permanent endowment funds always provide for an alternative use
if the original restricted purpose no longer exists or is no longer necessary, legal or possible.
Specifically, the standard endowment agreement provides that if the stated purpose of the fund no
longer exists or is no longer necessary, legal or possible, then at the direction of the Duke University
Board of Trustees (the “trustees”), distributions may be used for a substantially similar purpose or for
such purposes as will further the objectives and purposes of the university, giving due consideration
to the original intent of the donor(s).
Assets which are temporarily restricted by donors are representative of the unexpended net
appreciation on assets which are permanently restricted by donors.
For quasi endowment funds, “permanently restricted by your college or university”, the asset
restrictions may arise from a donor designation associated with a restricted gift, not designated
for a donor-established endowment. In most instances, however, the restriction is proposed by
the administration in support of initiatives of the deans. Depending on the level of funding,
each quasi endowment proposal is reviewed either by the Executive Vice President of the
university or by the trustees. For those quasi endowments approved by the Executive Vice
President, the trustees receive a list of these approvals for their review.
It should be noted that quasi-endowment funds held by Duke University (“Duke”), referred to in
question 1.d. above as “permanently” restricted, are not permanently restricted, but are subject to
invasion (use) upon approval by the trustees. Assets which are temporarily restricted by the
university are representative of the unexpended net appreciation on those assets which are
permanently restricted by the university.
2
2. Does your college or university hold any investments that are not included in the
endowment?
Yes.
If so, what are they, and what are their fair market values and basis?
Duke University (the “University”) utilizes investment pools known as the University’s Long
Term Pool (LTP) and the Health System Pool (HSP) to make University and Duke University
Health System, Inc. (a controlled affiliate of Duke University that operates a health system,
referred to herein as “DUHS”) investments in diversified portfolios of debt, equity, and other
investments. The HSP is structured to provide more liquidity for DUHS than is available within
the LTP. The investments outside of Duke’s endowment consist of the following:
($ in millions)
2015
2014
2013
Long Term Pool
2,340
2,093
1,698
Health System Pool
2,201
2,337
2,051
215
368
329
4,756
4,797
4,077
Non-pooled
Non-endowment investments
How are they used to further the educational purpose of the college or university?
The Long Term Pool investments outside of the endowment consist of university reserves,
the income from which is used to provide funding for university operations, including
scholarly research, academic support, student support (need-based grants and scholarships),
and strategic initiatives.
The Health System Pool investments consist of unrestricted working capital, the income off
which is used to support health system operations as well as academic support of the
clinical missions of the university’s School of Medicine.
3. What is your endowment size, as measured by total fair market value of its assets? What
has been the net growth and net investment return on your endowment each year?
($ in millions)
Ye ar
FY15
FY14
FY13
Ending
Market Value
7,297
7,037
6,041
Net
Growth
260
996
486
Investme nt
Re turn
4.4%
20.1%
13.5%
3
Given investment cycles, and to put the investment return of the last three years into context, a
longer term perspective is important; therefore, a 10 year history has been provided below:
($ in millions)
Ye ar
FY15
FY14
FY13
FY12
FY11
FY10
FY09
FY08
FY07
FY06
Ending
Market Value
7,297
7,037
6,041
5,555
5,747
4,824
4,441
6,124
5,910
4,498
Net
Investme nt
Growth
Re turn
260
4.4%
996
20.1%
486
13.5%
(192)
1.0%
924
24.5%
383
13.2%
(1,683)
-24.3%
213
6.2%
1,413
25.6%
672
20.2%
4. How much has your college or university spent each year to manage the endowment, and
how many staff and contractors are employed to manage the endowment? For any fees
paid to nonemployees for investment advice, asset management, or otherwise, please
provide detail on the amounts paid, to whom, and the fee arrangement.
The university’s and DUHS’ investment assets are managed by DUMAC, Inc. (DUMAC).
DUMAC is a separate, nonprofit support corporation organized and controlled by Duke
university that, in addition to managing the investment assets of the university and DUHS, also
manages the investment assets of the Employees’ Retirement Plan of Duke University and The
Duke Endowment (a charitable trust that provides substantial support to the university and also
has other beneficiaries). As of June 30, 2015, the investments managed by DUMAC included:
($ in billions)
Investme nts:
University investments, including endowment
Health System invesments
Employees' Retirement Plan
The Duke endowment
Total Investme nts Managed by DUMAC
$
$
9.0
2.5
1.6
3.4
16.6
The majority of the university’s endowment assets, along with an additional $2.3 billion of
reserves, are invested in the Long Term Pool (LTP).
4
The cost of managing the LTP over the past three years is as follows:
Year
Internal ($M)
External ($M)
Total Cost ($M)
11
9
8
27
24
19
38
33
27
2015
2014
2013
FTEs*
47.5
45.5
44.0
Contractors
80
72
67
*FTEs manage all investment noted above
5. If your endowment is required to file a Form 990 separately from your college or
university’s Form 990, please provide the endowment entity name(s) and Employment
Identification Number.
Duke University’s endowment does not file a separate Form 990.
Endowment Spending and Use
6. How does your college or university determine what percentage of the endowment will be
paid out each year?
The spending policy (payout) is expressed in terms of dollars per unit or share of the university's
Long Term Pool. The endowment spending rate per unit is calculated as 5.5% of the average of
the Long Term Pool unit market values for the previous three calendar year ends, subject to a
10.0% maximum annual growth in per unit spending. The Board of Trustees, through the
Business and Finance Committee, reviews the spending policy annually in the spring. Any
deviation from the policy requires this committee’s approval.
On February 29, 2008, the university’s trustees approved a higher spending rate for permanent
and quasi endowment funds that support financial aid programs. This initiative increased the
resources from endowment funds available for financial aid while retaining the existing spending
rate for endowment funds that support non-financial aid purposes.
The financial aid endowment spending rate per unit is calculated as 5.75% of the average of the
Long Term Pool unit market values for the previous three calendar year ends, subject to a 10.0%
maximum annual growth in per unit spending. The Board of Trustees, through the Business and
Finance Committee, review the spending policy annually in the spring. Any deviation from the
policy requires this committee’s approval.
If any, what has been the target endowment payout as a percentage of the endowment’s
beginning balance each year?
The university does not target a payout percentage of the endowment’s beginning balance.
If that answer differs from the percentage paid out, please explain why.
Not applicable.
5
Please attach any payout policies or guidance.
Attached as Exhibit 1– Duke University Long Term Pool Spending Policy Board of Trustee
Resolution dated May 12, 2000.
Attached as Exhibit 2 – Duke University Spending Policy for Endowment Funds
Supporting Financial Aid Board of Trustee Resolution dated February 29, 2008.
7. Does your college or university have policies regarding spending the endowment principal?
Duke, as a North Carolina nonprofit corporation, is subject to Chapter 36E. of the North Carolina
General Statutes, the statute that governs the management of endowment funds (excluding quasi
endowments) owned by North Carolina charitable institutions. A copy of that statute and an
executive summary is attached as Exhibit 3. That 2009 statute, entitled the Uniform Prudent
Management of Institutional Funds Act (“UPMIFA”), permits (but does not require) charitable
institutions to invade the principal of endowment funds under certain circumstances. When
UPMIFA became law in 2009 permitting principal invasion of endowment funds, the Board of
Trustees considered the possibility of changing its policy which had always prohibited such
invasion. The decision was made to continue the policy of prohibiting principal invasion with
the following limited exception: for undergraduate need-based scholarship endowment funds, a
minimal $1,000 per fund invasion would be made if the market value of those funds were
reduced below book value by the customary trustee-approved spending distributions.
A copy of the trustee resolution dated May 8, 2009 is attached as Exhibit 4.
Has your college or university ever spent endowment principal?
Yes
If so, under what circumstances?
In accordance with the authority of the Board of Trustees resolution attached as Exhibit 4,
Duke spent principal from certain need-based scholarship endowment funds in fiscal year
2009 by up to $1,000 per fund when the market value of those funds was reduced below
book value in order to maintain financial aid for students on endowed scholarships.
6
8. How much and what percentage of the endowment’s beginning balance has your college or
university spent each year? How much and what percentage of the endowment’s return on
investment has your college or university spent each year?
($ in millions)
Ye ar
FY15
FY14
FY13
Endowme nt
Spe nding
307
285
295
% of Beg
Market Value
4.9%
5.3%
6.0%
% of Investme nt
Re turns
115.7%
26.7%
45.3%
Duke’s spending policy is designed to provide stable annual funding amounts by smoothing the
impact of short-term fluctuations in investment market values. Adding an additional seven years
to the schedule above and looking at a full ten year period shows how this has worked.
($ in millions)
Ye ar
FY15
FY14
FY13
FY12
FY11
FY10
FY09
FY08
FY07
FY06
Endowme nt
Spe nding
307
285
295
270
280
246
251
233
149
132
% of Beg
Market Value
4.9%
5.3%
6.0%
5.3%
6.6%
6.3%
4.7%
4.5%
3.9%
4.1%
% of Investme nt
Re turns
115.7%
26.7%
45.3%
651.1%
27.3%
48.3%
-19.0%
74.4%
14.2%
14.7%
The effective spending rate shown above is a blend of the rates for financial aid endowments and
non-financial aid endowments, which have had separate payout rates since fiscal 2008, as
described in our response to question 6 above. The graph below provides the effective spending
rates for financial aid (FA) and non-financial aid (NFA) endowments. Since the market
improvement experienced in fiscal 2011, the effective spending for financial aid endowments has
been higher than the effective spending rate for non-financial aid endowments and the blended
spending rate.
7
Note that in fiscal 2009, the effective spending for financial aid endowments trailed the average;
many of the financial aid endowments had been recently funded as a result of the Financial Aid
Initiative, a three year campaign (2005-2008) to raise $300 million for financial aid. These new
financial aid endowments experienced market declines in 2008-2009 which negated their ability
to distribute income without invading the endowment principal.
In addition to endowment distributions, the University also derives operating support from the $2
billion of invested reserves (referenced in response to question 2 above). This related investment
income provides between $75-$100 million of annual support.
9. What percentage of your endowment does your college or university devote to financial aid
for student tuition? How much for other forms of student financial aid? Please specify the
types of non-tuition aid provided.
($ in millions)
Ye ar
FY15
FY14
FY13
Market Value of
% of Endowme nt
Market Value
Endowme nt
devoted to
of
supporting Financial
Endowme nt
Financial Aid
Aid
7,297
1,536
21.1%
7,037
1,507
21.4%
6,041
1,288
21.3%
Duke University meets full demonstrated financial need for every undergraduate student. For
U.S. citizens and permanent residents, Duke’s admissions policy is “need blind,” which means
that applicants are accepted based on merit, regardless of their ability to pay tuition and fees.
Duke does not make the distinction between tuition and other forms of financial aid; rather,
total cost of attendance is the methodology used to award financial aid. Total cost of
attendance includes: tuition and fees, room, board, books, transportation, and personal
expenses.
8
It is important to note that endowment income is only one source of support for financial aid.
The university provides in approximately $130 million in financial aid each year, over half of
which comes from unrestricted resources. The graph below demonstrates the university’s
commitment to financial aid over the past eight years and the sources of that support.
$128
$129
$130
$120
$100
$72
$109
$86
10. Does your college or university have policies regarding whether it is allowed to accept funds
restricted to a specific purpose?
Yes. Duke will only accept restricted gifts that support the educational, research, and health
care purposes of the institution while preserving the integrity of those purposes. For example,
the educational purpose of Duke is supported by over 2,000 permanent endowment funds
restricted to student financial aid.
Has your college or university ever declined a donation because it was restricted to a
certain purpose?
Yes
If so, please describe those specific scenarios in which your school rejected a donation.
Rejected because purpose of gift not a priority for Duke. Certain gifts may propose support for
one of the core purposes of Duke; however, if the proposed gift would support a program or
effort that is not a priority for the academic leadership of Duke, then the donor would be asked
9
to change the proposed restriction to better fit Duke’s academic plans. If the donor refuses,
then the proposed gift would be declined. For example, a donor may propose an endowment
gift to support a new research program that would not fit into either the current or proposed
academic structure of Duke.
Rejected because of attempted donor control. In some instances, donors propose a gift that
would normally be accepted by the university, except that the donors impose restrictions that
would give the donors control over certain aspects of the gift and its expenditure. Preservation
of the academic integrity of Duke requires that a donor retain no control over the gift and its
use once the gift is made. That is, the restrictions on the purpose of the gift are carefully
reviewed as noted above, and further, any attempted post-gift restrictions on the use of the gift
are also carefully reviewed.
For example, in one case, a multi-million dollar gift was proposed to establish an institute
including endowed professorships at Duke in a certain academic discipline, and the proposed
academic discipline was acceptable to the university. At the same time, the donor proposed
that the donor (and others to be appointed by the donor) would have a role on a committee that
would review proposed faculty members for the proposed institute. The university determined
that any role of the donor in the review of faculty members was unacceptable and the gift was
therefore declined.
In another case, a donor proposed a multi-million dollar gift to endow a scholarship fund for
students in one of Duke’s schools. The purpose of the fund was acceptable; however, the
donor insisted that the committee that selected the scholarship recipients would include the
donor. This proposed control by the donor over the use of the gift by selecting scholarship
recipients was determined to be unacceptable and the gift was declined.
11. How much and what percentage of your college or university’s endowment is invested in
real property (not including REITs or other publicly-traded securities)?
Less than one-tenth of a percent (0.1%) of the university’s endowment is invested in real
property.
10
Please list and describe your college or university’s real estate holdings, including real
estate held by the college or university, the endowment, and all related parties.
Building Use
# of Buildings
Hospital / Clinical / Medical Care
57
Academic
77
Research
42
Housing / Residential
98
Administrative
56
Athletics / Fitness
23
Parking
11
Auxiliary
16
Utilities
10
Miscellaneous Support
18
Net SF
5,036,941
3,177,915
2,410,441
1,719,829
1,060,740
681,751
167,421
136,062
121,569
86,298
Totals
14,598,967
408
Net Book
Value
($ millions)
529
121
118
7
1,099
118
16
89
362
247
2,707
If the college or university has made any Payments in Lieu of Taxes, please provide the date
and amount of the payment.
The university does not make Payments in Lieu of Taxes. It does, however, provide voluntary
support to regional and local governments for a number of purposes including public
transportation and fire protection.
The table below shows the support provided to Durham County over the past three years.
FY15
Fire protection
$
Durham Area Transit Authority
Total
$
FY14
FY13
400,000 $
400,000 $
400,000
350,000
350,000
350,000
750,000 $
750,000 $
750,000
In addition, the university leases over 4 million square feet of space in various counties within
North Carolina and indirectly pays approximately $8 million in property taxes annually. This
space is used to further our missions of instruction, research, and patient care and could be
exempted from taxation; however, the university pays the taxes in support of the local
government.
Lastly, Duke contributed $7.5 million toward the construction of the Duke Performing Arts
Center (DPAC), which has further enhanced the downtown Durham economy.
11
Donations
12. Does your college or university grant naming rights to donors based on certain donation
levels? If so, please describe the naming rights program, including how much and what
percentage of any naming rights donations your college or university has used for tuition
assistance.
Duke does not have a formal naming rights program; however, there is Board of Trustee
approved policy, attached as Exhibit 5. Efforts to raise funds to support Duke and its charitable
endeavors are enhanced by donor recognition. The name of the university was changed from
Trinity College to Duke University to recognize the contributions of the Duke family to create
Duke University.
Donors to Duke are currently recognized:
• as members of certain giving societies (for example, the “Barrister Donor Society”
recognizes annual giving at $2,500 and above to support the School of Law),
• by listing in various Duke publications as giving at certain levels,
• by having endowment funds named for the donors (for example, a permanent scholarship
endowment fund may be named for the donor(s) for a minimum gift of $100,000); a
permanent endowment fund for a full professor may be named for the donor(s) for a
minimum gift of $2,500,000),
• by naming new buildings and spaces within buildings for donors (for example, a new
building may be named for the donor(s) if the gift is equal to one-half of the estimated
total cost of construction),
• by naming renovated buildings and spaces within for donors, and
• by naming a constituent part of the university for donors (for example, an institute,
laboratory, or school).
If so, please describe the naming rights program, including how much and what
percentage of any naming rights donations your college or university has used for
tuition assistance.
Donors establishing endowments select the purpose of the endowment (subject to university
approval) and may choose the endowment name, which may include the donor’s name
and/or the purpose of the fund. The table below shows the total gifts given to permanent
endowment funds supporting student financial aid and the percentage those gifts represent
of total endowment gifts for the fiscal years ended June 30, 2015, 2014, and 2013.
For Endowment-Related ($ in millions)
Total Endowment Gifts
Total Financial Aid Endowment Gifts
% of Endowment Gifts Directed to Financial Aid
FY15
106
43
40%
FY14
97
40
41%
FY13
76
32
42%
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Conflicts of Interest
13. What conflict of interest policies does your college or university have in place to address
financial interest in endowment investments (including potential conflicts of interest among
and between governing boards, trustees, executives, internal employees tasked with
overseeing the endowment, and external asset managers of endowment assets?)
Duke University has adopted a conflict of interest (“COI”) policy for its Board of Trustees
(attached as Exhibit 6) and a COI policy for officers and employees with administrative
responsibilities (attached as Exhibit 7).
The Duke University Board of Trustees does not make investment decisions. The management
of Duke’s investment assets, including the assets of permanent endowment funds, is entrusted to
DUMAC, Inc. (“DUMAC”), a controlled affiliate of Duke University. The COI policy of
DUMAC is attached as Exhibit 8.
How do you vet board members’ potential conflicts of interest?
Members of the governing board of DUMAC (the DUMAC Board of Directors) are required to
comply with the DUMAC COI policy and are required to file an Annual Statement of
Compliance with the Chief Compliance Officer (“CCO”) of DUMAC. The CCO of DUMAC
administers this annual disclosure process and reviews the disclosures.
What are your policies if a conflict arises with a member of the board of trustees?
The Audit Compliance and Risk Management Committee of DUMAC (chaired by a member of
the Board of Directors) reviews any potential conflicts disclosed and receives recommendations
by the CCO regarding the implementation of conflict management plans when applicable. The
COI policy of DUMAC, and a conflict management plan, requires that the subject Director
“…refrain from participation in, discussion of, or voting on the matter and should take no action
which would create the opportunity for private benefit until the conflict is resolved.”
Date of request:
Name of requestor:
Fund code associated with naming:
Location of the space to be named:•
13
Date of request:
Name of requestor:
FACULTY INFORMATION
Fund code associated with naming:
Department:
_.
Location of the facility (building or portion of building) to be named
Size of space in sq ft:
Please state the Justification for the facility's naming:
Financial commitment
Paid to date:
DADD Entity ID:
DADD Entity ID:
Due degree (if applicable):
Due alumni children (if applicable):
RECOGNITION INFORMATION
Individuals to be honored, if not the same
as the donor:
Exact language of named space as it
will appear on plaque or other form of
recognition:
Planned announcement of naming:
Other information that will be useful
to the committee in reviewing the
naming request (e.g. awards, special
recognitions)
I
Note: New facilities or parts of facilities may be named for an individual who has donated at least 50% of the cost of the facility. Existing
buildings or parts of buildings rnay be nan,ed vvhen a donor's gift covers 50% of the cost for major renovations. Existing unnamed buildings
or parts of buildings may be named for a substantial gift to the program housed within. What constitutes "substantial" is determined on
an individual basis as recommended to the President by one of the senior officers. No facility or portion of a facility will be named for any
member of the faculty or administration (except the President) until that person has been retired for 1O years or deceased for 5.
Required field
CONFLICT OF INTEREST POLICY FOR TRUSTEES
Seeking association with the University, whether as suppliers of goods or services, employees,
faculty, students, or others, the trustee or committee member shall disclose the material facts
pertaining to such interest and to the matter requiring the decision to the Board or the applicable
committee, and such interest shall be noted in the minutes. The trustee or committee member shall
act in accordance with his/her Conflict Management Plan, and if the trustee or committee member
does not have a Conflict Management Plan in effect, then he/she shall withdraw from the meeting
unless requested to remain by the presiding officer, and shall abstain from voting when such a matter
is before the Board or a committee for authorization, approval, or ratification, and those actions
shall also be recorded in the minutes.
2. Annually, each trustee and each committee member shall be furnished an information and
interest disclosure statement by the appropriate University officer together with a copy of this
resolution. Annually, and at any point throughout the year if there are additions or changes
to a disclosure statement on file, each trustee and each committee member shall disclose any
possible duality or conflict of interest which might affect Duke University. This information
shall be filed with the Office of the University Secretary to be reviewed by the University
Secretary and University Counsel. The information so disclosed shall be held in confidence
except as it may be determined by the University Secretary and University Counsel that it is
in the best interest of the University to disclose the information to the Executive Committee
of the Board of Trustees.
3. The following definitions apply to this policy: (a) A family member or family relationship
includes an individual's spouse, spousal equivalent, ancestors, children, grandchildren, greatgrandchildren, siblings (whether by whole or half-blood), and the spouses of children,
grandchildren and great-grandchildren and siblings. (b) "Material" as applied to gifts, favors
or hospitality is defined as having a fair market value of twenty-five dollars or more.
AND BE IT FUTHER RESOLVED, that the appropriate officers of the University are hereby
authorized and directed to take such further actions as they shall deem necessary and appropriate,
and as may be required to fully implement this resolution; and
FURTHER RESOLVED, that this resolution shall be effective July 1, 2013 and replaces the
policy adopted by this Board of Trustees in October of2008; and
FURTHER RESOLVED, that any action which has heretofore been taken by any of the Board of
Trustees or the officers of the University in connection with the foregoing resolution or the
matters
contemplated
thereby
is
hereby
ratified,
approved
and
confirmed
ANNUAL STATEMENT OF COMPLIANCE
I have reviewed the Policy Statement on Conflict of Interest for Directors of DUMAC, Inc.
("DUMAC"). To the best of my knowledge, I have complied with the Policy during the
past twelve months, and I will use my best efforts to comply with the Policy in the
future. If a possible conflict arises in my responsibilities to DUMAC, I recognize that I
have the obligation to call it to the attention of the appropriate individual as set forth in
the Policy and to abstain from any participation in the matter unless it is determined
after full disclosure that my participation is permitted.
Listed below are the institutions for which a potential conflict of interest may exist (as
defined in Appendix 1) as a consequence of my participation as a DUMAC Board
member.
Listed below are investments or investment manager relationships that I have in
common with DUMAC [both personal investments (designated with a P) and
investments made by my firm or employer (designated with an F) where I played an
active role in the decision process].
Name
Signature
Date
I have reviewed the Compliance and Conflict of Interest Policy ("Policy") and Compliance Procedures
("Procedures") for officers and staff of DUMAC, Inc. and will comply with the Policy and Procedures.
If a possible conflict arises in my responsibilities to DUMAC, I recognize that I have the obligation to call
it to the attention of the appropriate individual(s) as set forth in the DUMAC, Inc. Procedures and to
abstain from any participation in the matter unless it is determined after full disclosure that my
participation is permitted.
I understand that I am required to consult the Do Not Trade List prior to placing a personal security
trade. If I violate this Policy or Procedures, I understand DUMAC may elect to impose any one or more
the following penalties:
•
issue me a written warning;
•
prohibit me from personal trading during business hours;
•
require me to obtain pre-clearance before personal trading;
•
require me to disgorge all profits from the illegal trade to a not-for-profit organization selected
by the ACRMC;
•
suspend my employment (with or without pay); or
•
terminate my employment.
Employee Signature
Print Name
Dated:
21
ANNEX2
DUMAC, Inc. Compliance and Conflict of Interest Policy
Annual Employee Certification
I have reviewed the DUMAC Compliance and Conflict of Interest Policy ("Policy") and Compliance
Procedures r'Procedures"), have complied with the Policy and Procedures during the calendar year
and will comply with the Policy and Procedures in the future.
If a possible conflict arises in my responsibilities to DUMAC, I recognize that I have the obligation to call
it to the attention of the appropriate individual(s) as set forth in the Procedures and to abstain from any
participation in the matter unless it is determined after full disclosure that my participation is permitted.
I understand that I am required to consult the Do Not Trade List prior to placing a personal security
trade. If I violate this Policy or the Procedures, I understand DUMAC may elect to impose any one or
more the following penalties:
•
issue me a written warning;
•
prohibit me from personal trading during business hours;
•
require me to obtain pre-clearance before personal trading;
•
require me to disgorge all profits from the illegal trade to a not-for-profit organization selected
by the ACRMC;
•
suspend my employment (with or without pay); or
•
terminate my employment.
Employee Signature
Print Name
Dated:
22
Approved by DUMAC BOD 5/7/2015
COMPLIANCE AND CONFLICT OF INTEREST POLICY
APPENDIX A
e
What is material nonpublic information?
Information is considered "material" if there is a substantial likelihood that a reasonable
investor would consider it important in making his or her investment decisions, or if it could reasonably
be expected to affect the price of a company's securities. Information about an issuer that should be
considered "material" includes, but is not limited to: dividend changes, earnings estimates, changes in
previously released earnings estimates, significant expansion or curtailment of operations, significant
merger or acquisition proposals, hostile takeover bids, agreements or negotiations, significant new
products or discoveries, acquisition or loss of significant contracts, significant financing developments,
liquidity problems, major personnel changes or other extraordinary management developments, major
litigation, and the status of labor negotiations.
Information is considered "nonpublic" until it has been effectively communicated to the
marketplace in a manner making it reasonably available to investors. For example, information found in
a report filed with the Securities Exchange Commission {SEC), or appearing in a publication of general
circulation, such as Dow Jones, Reuters Economic Services, or The Wall Street Journal would be
considered public. The distribution of information through narrower channels may be insufficient to
make it public. Also, the fact that nonpublic information is reflected in rumors in the marketplace does
not mean that the information has been publicly disseminated. Even after information becomes public,
many aspects relating to the matter may remain nonpublic.
Examples of material information that may be nonpublic include the following:
a. due diligence material or other information delivered to DUMAC regarding potential
transactions, portfolio investments or their managers, including: private placement
memoranda, portfolio lists, performance history, statistical analyses, inspection reports,
conversations with the management or representatives of a portfolio investment describing
or relating to the portfolio investment, information about the structure of a portfolio
investment, and other information that may be obtained through due diligence or received
as a potential investor in a portfolio investment;
b.
the terms and conditions of a portfolio investment;
c.
reports identifying or detailing the portfolio composition or investment performance of a
Duke Entity;
d. the fact that a Duke Entity is in discussions regarding a potential investment; and
e. any other information that is designated as proprietary or confidential.
23