https://floridastate.forums.rivals.com/threads/while-still-interim-in-title-coburn-puts-long-term-focus-on-fsu-finances.237223/page-2#post-4002494
Where is the endowment of all athletic scholarships in the list of new priorities, at or near the top I hope.
If you asked anyone on the Seminole Booster Board they would probably tell you its a major priority. Some may even say its a top priority. But the reality is these other projects -- indoor practice facility, football opps building, basketball arena, baseball stadium, repairs and painting of Doak, etc, etc, -- are considered urgent priorities too. More significantly, these facility projects are considered more urgent by the donors who have the choice of either donating to facilities or to scholarships. Most choose facilities.
If a donor writes a check for $1 million to the endowment, and the endowment earns 5 percent interest, that million gift will earn $50,000 each year to help fund scholarships costs.
If a donor writes a check for $1 million to a facility, all $1 million can be spent immediately to build that facility.
In order to fund the full cost of scholarships (in today's dollars), we would need to have about $250 million to generate $11.5 million annual cost of scholarships, assuming the endowment earns a 5 percent annual rate of return. We have about $70 million in the endowment right now, which spins off enough earnings to fund $3.5 million of the $11 million cost of scholarships. Remember, in 1985 when we first started raising endowed scholarship funds, scholarship costs were under $5 million so back then we only needed $100 million to fully endow scholarships. So we're chasing a goal that gets harder to catch every time FSU raises tuition or the cost of living ticks up.
We offer all donors the option of donating to scholarships or facilities and most donors who are giving cash today will opt for facilities. Those donors who are leaving "will" or "estate" gifts will often choose to direct their gift to the endowment.
Like many other universities who started building endowments 2 or 3 generations ago, our endowment will grow as those estate gifts are realized. Morbid but true. In addition, the endowment investment in CollegeTown has appreciated greatly as well as earned more than 5 percent return each year.
The tax base in that area has increased by 23 times since CT was built. When the time is right to sell CT, the net proceeds from the sale will be realized as profits to the endowment. That would increase the endowment by $25 million or more.
Jerry Kutz
No comments:
Post a Comment