AUBURN UNIVERSITY FOUNDATION AND
COMPREHENSIVE CAMPAIGN BRIEFING
Faculty Senate
September 17, 2013
Auburn University Foundation
Auburn University Foundation:
A non-governmental, non-profit organization
separate and distinct from Auburn University
[separate 501(c)(3)]
Purpose:
 Receive charitable contributions for the
benefit of AU and AUM
 Assure donations are kept separate from
state funds
Auburn University Foundation
 Manage AU, AUF, AAA, TUF endowments.
AUF investment objective: To earn a total return (net of
portfolio management fees) within prudent levels of
risk, which is sufficient to maintain in real terms the
purchasing power of the endowment’s assets and
support the defined spending policy.
Auburn University Foundation
Auburn University Foundation Board
 Consists of 24 voting directors who serve
four-year terms
 3 Ex officio, non-voting members:
 AU President
 AUM Chancellor
 Auburn Alumni Association President
AU/AUF Endowment | Update thru 7/31/13
 Combined Market Value (12/31/2012): $488,247,605
 2012-13 Distribution to the University:
 2012 Endowment Performance:
$17,229,000
9.9%
 Endowment Annualized Returns:
 One-year
 Three-year
 Five-year
13.6%
8.8%
4.3%
 Combined Market Value (07/31/2013): $524,962,719
 2013 Endowment Performance (through 7/31): 7.7%
2013 Endowment Distribution / Designation
Endowment Distribution
Funds for Excellence
15%
Scholarships/Fellowships
50%
Chairs/Professorships
35%
$9.38M
Endowment Designation
Academics
Athletics
$515.57M
Endowment Spending Formula
Spending Formula
A weighted calculation of two components:
 First component (80%) is the prior year payout amount
adjusted for inflation (CPI)
 Second component (20%) is the spending policy target
rate (currently 4%) applied to the 12-month avg. of market
values
[80%)(Prior year’s payout)(1+CPI)]+[(20%)(12-month average of market value)(4.0%)]
Endowment Spending Calculation Example:
Payout Calculation:
[(.80)($40,000)(1+.034)]+[(.20)($1,080,000)(.04)] = $41,728
Endowment Asset Allocation
Asset Class
Equity
Flexible Capital
Inflation Hedging
Credit
Deflation Hedge
Dollar Hedge
Liquidity
Total:
Domestic Public Equity
Non-U.S. Developed Equity
Emerging Markets Equity
Global Private Equity
Long/Short and Absolute Return
Natural Resources (Public and Private)
Commodities
Real Estate (Public and Private)
U.S. TIPS
Core Bond
High Yield
U.S. Treasuries
Non-U.S. Government Bonds
Cash (T-bills)
Percent
Allocation
15.0
14.0
7.5
12.5
25.0
4.0
4.0
5.0
2.0
6.0
5.0
100.0
2012 Development Results | calendar year
 2012 Total Gifts and Commitments
$111,001,242
 $76,424,036 Outright Gifts and Pledges
 $9,494,065 Deferred Irrevocable Gifts
41% cumulative
 $25,083,141 Deferred Revocable Gifts
increase
 Four Year Results
$122,875,000
$93,942,647
$85,722,620
+10%
+18%
+9%
2009
2010
2011
2012
2013 Goal
$78,735,752
$110,480,608
2013
Campaign Timeline
Preparation
Phase
Leadership Gift
Phase
Public
Phase
Through Dec. 31, 2012
Goal: $300 million
Actual: $400.6 million
Jan. 1, 2013 (24-30 months)
Goal: $400 million
Cumulative: $700 million
30-36 months (Dec. 31, 2017)
Goal: $300 million
Cumulative: $1 billion
CAMPAIGN AUTHORIZATION
CAMPAIGN KICKOFF
CAMPAIGN CELEBRATION
PostCampaign
Assessment
Financial Campaign Objectives
 Campaign seeks to secure at least $1 billion in new gifts
and commitments, both spendable/annual and endowed,
for Student Support, Faculty Support, Programmatic
Support, and Facility Support.
 Endowment Giving - for a campaign of $1 billion, it is
expected that approximately 25-35% of the total will be
endowment commitments.
 Deferred Gifts - for a campaign of $1 billion, it is expected
that approximately 30% of the total will be deferred gifts.
Deferred gift instruments, such as gift annuities,
charitable remainder trusts, and simple bequests often
are designated for endowment.
Additional Campaign Objectives
 Volunteer Engagement – new volunteers will be engaged to
serve Auburn during the campaign.
 Donor Relations and Stewardship - the nature/level of donor
appreciation and stewardship should be enhanced during and
after the campaign.
 Annual Giving - the annual giving program should be
positioned to generate increased alumni participation and
secure gifts in excess of $5 million annually.
 Sustainable Giving – the level of annual philanthropic support
will be elevated during the campaign. Post campaign
aspiration is to maintain new gifts and commitments of
approximately $100 million annually, economic factors
permitting.
Campaign Progress | THROUGH 08.31.13
Area of Support
Working Goal
Progress
% to Goal
Students
Faculty
$237,362,500
$139,435,000
$129,384,411
$29,857,359
54.51%
21.41%
Programs
$377,453,553
$301,203,141
79.80%
Facilities
Totals
$338,720,559
$1,092,971,612
$39,468,528
$499,913,439
11.65%
45.74%
Campaign Progress | THROUGH 08.31.13
Area of Support
Outright Gifts
and Pledges
Deferred
Irrevocable
Deferred
Revocable
Campaign
Total
Student Support
Annual
Endowed
Subtotal
Faculty Support
Annual
Endowed
Subtotal
Program Support
Annual
Endowed
Subtotal
Facility Support
Annual
Endowed
Subtotal
Totals
Annual
Endowed
Totals
61,620,310
32,988,278
$94,608,588
341,626
6,791,230
$7,132,856
4,585,502
23,057,465
$27,642,967
66,547,438
62,836,974
$129,384,411
2,367,165
24,631,101
$26,998,265
22,157
712,506
$734,663
0
2,124,431
$2,124,431
2,389,321
27,468,038
$29,857,359
172,551,190
54,619,086
$227,170,275
12,455,564
4,246,189
$16,701,753
42,867,711
14,463,401
$57,331,112
227,874,465
73,328,676
$301,203,141
32,541,677
1,325
$32,543,002
4,414,992
0
$4,414,992
2,165,534
345,000
$2,510,534
39,122,203
346,325
$39,468,528
$269,080,341
$112,239,789
$17,234,339
$11,749,925
$49,618,747
$39,990,298
$335,933,427
$163,980,012
$381,320,130
$28,984,265
$89,609,044 $499,913,439
Campaign Progress | THROUGH 08.31.13
COLLEGES AND SCHOOLS
Campaign Goal
Progress toward Campaign
Goal (through 08.31.13)
% of Progress
toward Goal
Agriculture (includes AAES)
$42,000,000
$27,116,516
64.56%
Architecture, Design & Construction
$30,700,000
$10,346,388
33.70%
Business
$100,000,000
$66,362,264
66.36%
Education
$34,900,000
$8,512,261
24.39%
$206,600,000
$87,712,928
42.46%
$19,804,112
$13,419,268
67.76%
Graduate School
$1,500,000
$243,666
16.24%
Honors College
$4,000,000
$1,093,022
27.33%
Human Sciences
$36,000,000
$16,414,214
45.60%
Liberal Arts
$22,950,000
$14,369,569
62.61%
Nursing
$18,800,000
$6,801,559
36.18%
Pharmacy
$21,050,000
$5,076,477
24.12%
Sciences & Mathematics
$34,000,000
$12,743,617
37.48%
Veterinary Medicine
$63,110,000
$38,839,882
61.54%
Engineering
Forestry & Wildlife Sciences
Campaign Progress | THROUGH 08.31.13
CAMPUS-WIDE UNITS
Alabama Cooperative Extension Sys.
Campaign Goal
Progress toward Campaign Goal
(through 08.31.13)
% of Progress
toward Goal
$10,000,000
$7,191,578
71.92%
$7,150,000
$4,248,204
59.42%
$223,000,000
$123,528,044
55.39%
Auburn University Montgomery
$12,500,000
$11,511,281
92.09%
Central Classroom Bldg. (proposed)
$49,500,000
$0
0.00%
$4,900,000
$760,109
15.51%
$41,000,000
$20,131,575
49.10%
Libraries
$5,000,000
$1,558,310
31.17%
Museum
$7,500,000
$3,418,026
45.57%
Outreach
$10,657,500
$142,684
1.34%
Performing Arts Center (proposed)
$60,000,000
$0
0.00%
Research
$17,100,000
$4,353,340
25.46%
Student Affairs
$7,250,000
$668,882
9.23%
Sustainability
$2,000,000
$15,909
0.80%
Alumni Affairs
Athletics
Diversity & Multicultural Affairs
Enrollment Services
Questions?