GEORGE MASON UNIVERSITY
FOUNDATION
Faculty Senate Meeting
April 3, 2013
George Mason University Foundation, Inc.
MISSION STATEMENT
The George Mason University Foundation was established in 1966 to
advance and further the aims and purposes of George Mason
University.
It is a 501(c)(3) non-private foundation and a private corporation
organized and operated exclusively for the benefit of George Mason
University. The Foundation is made of up to forty (40) external trustees
who can serve as many as three (3) consecutive three (3) year terms
(nine years total) who are called the Board of Trustees (BOT).
The Foundation attempts to recruit Trustees who are experts in the areas
of real estate, investments, financial management, audit, and
fundraising as current Trustees’ terms expire. The Foundation assists
Mason in generating and administering private support, in the
acquisition, management, and development of Mason’s auxiliary efforts,
real property, and other assets that provide strategic support to Mason.
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George Mason University Foundation, Inc.
“The Foundation is here to help the University meet its aspirations.”
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Manage private resources and properties
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Manage endowment on behalf of the University
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Serve as private partner for PPEAs - Private Public Enterprise
Act: Housing VI (Potomac Heights)
Retain private property for current & future University needs:
GMUF Arlington Project – Fairfax properties
Broadlands – Loudoun County property
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George Mason University Foundation, Inc.
Purpose Continued
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Assist with presidential compensation
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Help support University development through funding of
development services
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Provide services to advance development
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Support the aspirations of George Mason University
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George Mason University Foundation, Inc.
Organizational Structure
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George Mason University Foundation, Inc.
Board of Trustees
Executive
Committee
Mason Intellectual
Property Program
Subcommittee
Nominating
Audit
Development
Finance
Investment
Real Estate
and
Committee
Committee
Committee
Committee
Committee
Governance
Committee
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George Mason University Foundation, Inc.
Balance Sheet (millions)
FY 10
FY 11
FY 12
Assets
243.3
283.0
328.0
Liabilities
122.6
150.0
199.1
Total Unrestricted
(1.1)
11.5
9.8
Temporarily Restricted
71.7
66.8
60.5
Permanently Restricted
57.1
62.8
70.1
GMUF Real Estate LLCs
(7.0)
(8.1)
(11.5)
Total Net Assets
120.7
133.0
128.9
Total Net Assets & Liabilities
243.3
283.0
328.0
Net Assets:
George Mason University Foundation, Inc.
Balance Sheet (millions)
FY 10
FY 11
FY 12
Net Assets:
Unrestricted - General
1.0
2.2
1.3
Unrestricted – Due to UPMIFA
(5.0)
(0.8)
(4.5)
Unrestricted – Broadlands Land
2.9
10.1
13.0
Total Unrestricted
(1.1)
11.5
9.8
Temporarily Restricted - General
67.5
62.6
56.3
Temporarily Restricted - Property
4.2
4.2
4.2
Total Temporarily Restricted
71.7
66.8
60.5
Permanently Restricted
57.1
62.8
70.1
GMUF Real Estate LLCs
(7.0)
(8.1)
(11.5)
Total Net Assets
120.7
133.0
128.9
George Mason University Foundation, Inc.
George Mason University Foundation, Inc.
Revenue Sources Budgeted for Fiscal 2012-13
Endowment Fund Management Fee (1.75%)
910,000
Restricted Fund Gift Fee (3.0%)
582,000
Real Estate Management Fees:
Housing VI
GMUF Arlington Campus LLC
Mason Administration LLC
Prince William Housing LLC
Prince William Life Sciences Lab LLC
Earned Investment Income
Net Unrestricted Real Estate Income
In-Kind Rent Revenue
Unrestricted Contributions
Total Budgeted Unrestricted Revenue Sources
50,000
0
50,900
8,900
17,100
2,092,000
(18,855)
93,400
250,000
4,035,445
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George Mason University Foundation, Inc.
George Mason University Foundation, Inc.
Operating Expenses Budgeted for Fiscal 2012-13
Foundation Operations
Accounting & Legal
Insurance
Investment Advisory Fees
1,188,500
177,000
13,900
150,000
In-Kind Rent Expense
93,400
Depreciation
80,000
Total Budgeted Foundation Operating Expenses for Fiscal 2012-13
1,702,800
Net funds available for University Support
2,332,645
Program Benefits to George Mason University
1,427,000
Development Research & Computer Services
353,600
University Development Programs
547,700
Total Funds Committed to University Program Support
2,328,300
Total Budgeted Unrestricted Expenses for Fiscal 2012-13
4,031,100
Budgeted Net Gain Fiscal 2012-13
4,345
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George Mason University Foundation, Inc.
Real Estate Holdings
Mason Administrative Building – University Hall
Potomac Heights - Housing VI
Commerce Building 1 (4085 University Drive)
Commerce Building 2 (4087 University Drive)
Mathy House (President’s Residence)
Mathy Lodge
University Park Commercial (4260 Chain Bridge Road)
University Park Apts (4262, 4264, 4266 Chain Bridge Road)
10716 Kelley Drive (GMU Student Housing Leases)
10720 Kelley Drive (Capital Connection Leases)
Shirley Gate Park (11333 Crescent Drive in Shirley Gate Park)
Allman Land (in Alexandria between railroad tracks and I-95)
Broadlands Land (Loudoun County)
3434 Washington Blvd, Arlington
Prince William Housing LLC
Prince William Life Sciences Lab LLC
TOTAL
Assessed
Debt
N/A
N/A
3,821,700
4,291,600
1,202,620
1,163,320
2,622,600
7,883,300
441,450
439,230
17,000
24,000
12,088,000
82,183,200
N/A
N/A
$116,178,020
31,292,041
21,925,000
1,111,334
1,309,783
0
0
954,529
1,444,354
0
0
0
0
0
65,624,234
15,625,000
33,210,000
$172,496,275
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George Mason University Foundation, Inc.
Restricted Real Estate Holdings with Gift Basis
Point of View Estate (Gift from Lynch family)
10569 Assembly Drive (Gift from James Buchanan)
TOTAL
$4,000,000
168,500
$4,168,500
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George Mason University Foundation, Inc.
Thank You!!
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Mason Foundation Endowment
60.00
54.57
53.67 53.63
53.32
47.95
46.42
50.00
43.63
40.82
37.98
$ in millions
40.00
32.17
30.00
33.40 32.63
32.56
30.43
27.09
20.00
10.00
19971998
19981999
19992000
20002001
20012002
20022003
20032004
20042005
20052006
20062007
20072008
20082009
20092010
20102011
20112012
Fiscal Year
Total Endowment
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George Mason University Foundation, Inc.
2012-13 Objectives
1) Work to help alumni participation
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Working with board members to create alumni interest within their firms
CGI – Michael Waple
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Baker Tilly Virchow Krause LLP – John Niehoff
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Seeking targets of opportunity to host alumni gatherings in the local community and
discuss the importance of participating in the annual fund and alumni activities
Working with alumni board members to gain participation from their network of
Mason Alumni
2) Work with the Foundation board and the broader community to
increase private support for Student Scholarship money
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Include the importance of student financial aid in communication materials to board
members, in every board meeting and whenever possible in the broader community
Work to improve communication with donors that have created endowments with the
hope that they will increase endowment giving or start new endowments
Manage the investment advisors to get the Foundation endowment competitive with
other University endowment funds – It is NOT currently
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George Mason University Foundation, Inc.
2012-13 Objectives (Continued)
3) Improve Communication across the board
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Get contact reports and activities recorded in advance
Improve the recently created Foundation ledger e-update for the Board of Trustees
to distribute at least quarterly
Work more closely with development officers across campus to assist with cultivation
and stewardship activities
Educate the D&D as well as the BOV as to the activities of the Foundation and the
financial picture that the Foundation is working with
Ensure that Foundation leadership is on the same sheet of music with University
Development and Alumni Affairs staff
4) Support MIPP, Other business opportunities
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Need to assist efforts to generate revenue from sources other than gifts
Continue to help Mason with broad real estate strategy where non-educational
revenue activities can enhance cash flows to the enterprise
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George Mason University Foundation, Inc.
2012-13 Objectives (Continued)
5) Real Estate Issues
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Commerce
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Arlington
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Mason has approved test fit
LOI has been drafted and Mason has accepted the terms and structure
Capital Lease needs to be approved by the General Assembly in short session in SP 2013
Significant lease and financing risk exists 4 years out
HIS is close to finalizing a lease with GMUF for 10 years in the vacant retail space
John is working with SRA and Mason on a possible space contraction for SRA opening space up for Mason
Continue to help Mason with broad real estate strategy where non-educational
revenue activities can enhance cash flows to the enterprise
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George Mason University Foundation, Inc.
2012-13 Objectives (Continued)
6) Governance/Management
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Nominating & Governance
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New participation rule for trustees added to by-laws
Expand allowable board size to 50 (NOTE: not to deploy now)
Expand Board educational opportunities
Board Activities
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Invite Board to “Arts By George”
Invite Board to a reception prior to a basketball game
Piggyback on a Mason Event in the Spring and have a reception for the board with spouses
Encourage increased participation at Alumni/Mason events already planned
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