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To support the University of South Alabama, balancing current contributions with future growth.
Since 1990, the Foundation has contributed more than $127 Million in support of the University of South Alabama, its students, faculty and academic programs.
From July 1 through December 31, 2011, the Foundation contributed $2,382,000 to the University of South Alabama. The mission of the USA Foundation, to support the University of South Alabama, its faculty, students and academic programs, continued as the Foundation responded as the University defined its critical and most important need as the support of the Pediatric Expansion of USA Children’s and Women’s Hospital. In November, 2010, the Foundation purchased the Brookley campus, as a way to support the Pediatric Expansion. In November, 2011, the Foundation made its second installment payment of $4,000,000 continuing that support. In addition, the Foundation Board approved a gift of $500,000 to the Excellence Endowments of the College of Engineering and the School of Computer and Information Sciences, which will enable funding of activities in those two academic units where the needs are greatest. The first of five annual installments was provided in December, 2011.
The net assets of the USA Foundation were $271,816,000, at December 31, 2011, in comparison to $283,496,000 at fiscal year ended June 30, 2011. The decrease is primarily attributed to the decrease in the global equity markets. From December 31, 2011 to
February 22, 2012, the Foundation’s equity investments had increased 8.25%.
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. The Board of Directors of the Foundation evaluates these two forces of endowment accumulation while providing an incremental source of funds to allow the University to be a truly superior one, acting in a prudent manner to meet both objectives. |
