E2 Office of the President TO MEMBERS OF THE COMMITTEE ON EDUCATIONAL POLICY: ACTION ITEM For Meeting of September 15, 2010 PROPOSED PUBLIC PHASE OF FUNDRAISING CAMPAIGN, DAVIS CAMPUS RECOMMENDATION The President recommends that the Committee on Educational Policy recommend to the Regents that the proposal of the Davis campus, jointly with The UC Davis Foundation, to conduct a campuswide, comprehensive fundraising campaign, with a goal of $1 billion to support Davis’ students, faculty and programs with strengthened endowment, capital, and current-use funding, be approved, subject to the condition that each capital project has been or would be approved at the appropriate time in accordance with Regental policy. BACKGROUND In 2006, the President approved the proposal of the Davis campus to conduct the preliminary and quiet, pre-public phase of a comprehensive fundraising campaign, the goal for which would be $900 million or more for capital projects, endowments, programmatic and other on-going support. The quiet phase began following this approval; the public phase would be expected to run for approximately four years, beginning October 22, 2010 to June 30, 2014. Given the considerable success of the quiet phase of the Campaign to date, including the gift of $100 million from the Gordon and Betty Moore Foundation to establish the Betty Irene Moore School of Nursing, approval is now sought for a goal of $1 billion. From the Campaign’s inception through June 30, 2010, the campus had achieved approximately 57.6 percent of the $1 billion goal by raising gifts, private grants and pledges totaling approximately $576 million. This total includes some specific gifts and pledges made prior to the formal inception date in anticipation of the Campaign. The proposed Campaign would be identified as The Campaign for UC Davis. The campus’s ten (10) schools and colleges and other academic and non-academic departments, have developed the following priorities for the Campaign: Funds for student support Funds for chairs and professorships New revenue for innovative instruction/scholarship/ research/creative work $120 million $130 million $300 million COMMITTEE ON EDUCATIONAL POLICY September 15, 2010 Funds for programs and patient care Funds for capital/campus improvement Unrestricted funds -2- E2 $140 million $260 million $50 million A list of capital projects has been developed for which philanthropic support may be sought in full or in part. Previously approved projects that have received Campaign support during the quiet phase and are completed or nearing completion include the School of Law building renovation, construction of Maurice J. Gallagher, Jr. Hall for the Graduate School of Management, the Robert Mondavi Institute for Wine and Food Science, Veterinary Medicine IIIB, Gladys Valley Hall, and the Aggie Stadium. Other projects, for which approval would be sought at the appropriate time, may include new, renovated, or upgraded facilities for: the College of Agricultural and Environmental Sciences, the College of Engineering, Earth and Physical Sciences, the UC Davis Health System, the School of Veterinary Medicine, a Museum of Art, and a Music Recital Hall, in addition to other smaller projects. The Campaign would be conducted under the direction of the Vice Chancellor of Development, for whom a national search is actively under way. The Chancellor, Vice Chancellors, Deans, and Directors and the senior management of the UC Davis Office of University Development with their development and operations personnel would be personally involved in the effort. Professional development staff, under the direction of the Assistant Deans for External Affairs/Directors of Development in the schools and colleges, and development directors in the other academic and non-academic programs would support the Campaign in coordination with the Office of University Development. For this comprehensive campaign, endorsement from The UC Davis Foundation has been secured. Most of the top-level volunteer leadership for the Campaign has been recruited, including a Campaign Cabinet, which has been actively involved for three years. Campaign cochairs will be enlisted from among the Cabinet and other leadership donors and volunteers. Many of the schools and colleges, and other academic and non-academic units, have enlisted the support of advisory boards to serve as volunteers and ambassadors in their own Campaign efforts. All Campaign activities would be conducted in accordance with University policy. Gifts and endowments would be solicited on behalf of the Regents and the UC Davis Foundation. The Campaign would be funded primarily from discretionary campus resources and, secondarily, from a portion of Campaign proceeds; donors would be so notified. Gifts the Foundation receives for endowment would be invested prudently to ensure that assets would be protected and that a reasonable return would be achieved for support of the purposes of the gift. The Foundation, in a process similar to that used by the Regents, sets a spending rate and reviews it annually. Both income and realized gains can be distributed. In accordance with UC Administrative Guidelines for Campus Foundations, restricted funds received or unrestricted funds allocated (including investment income) for University support shall be transferred to the University, administered in accordance with University policies, and expended from University department or program accounts.