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To support the University of South Alabama, balancing current spending with future growth.
The Foundation was established in 1968 as a 501(c)(3) corporation to support the University of South Alabama. Since 1990, the Foundation has contributed more than $116 Million to the University of South Alabama. Contributions totaling $4,854,906 have been made to the University of South Alabama in the most recent fiscal year, including funding of USA Foundation Fellowships that were newly established in the Fall of 2008, in Speech Pathology and Audiology, Computer and Information Sciences, Environmental Toxicology, Chemical Engineering, Civil Engineering, Electrical and Computer Engineering, and Mechanical Engineering. These contributions to support the University and its faculty, students and academic programs were made in the face of challenging economic times for the University as well as the Foundation. The Foundation’s net assets at March 31, 2009, were $239,371,000.
Philosophy of Endowment Foundations
The central philosophy of endowment foundations is to assure the purchasing power over the long run of the endowment assets, while supporting the current operating needs of an institution. As David F. Swensen, Chief Investment Officer, Yale University, in Pioneering Portfolio Management states:
“Successfully managed endowments retain forever the ability to provide a particular level of institutional support, justifying the classification of endowment funds as permanent assets. Pursuit of long-term asset preservation requires seeking high returns, accepting the accompanying fundamental risk and associated market volatility.”
An endowment foundation balances these two divergent requirements. Over the years, the Board of Directors of the Foundation has evaluated these two forces of driving endowment accumulation while providing an incremental source of funds that will allow the University to be a truly superior one, and has acted in a prudent manner to meet both objectives. |
