Q: What is The University of Georgia Foundation?

The University of Georgia Foundation was created to enrich the quality of education provided at the university through scholarships, professorships, endowed chairs and other programs.

The foundation has amassed more than $525 million in assets, $456 million of which is endowed for academic and faculty support. The foundation funds a long list of  scholarships each year for deserving students and endows chairs and professorships that ensure those students receive the highest-quality instruction.

Q: Why is the foundation needed?

The programs funded by the foundation are not covered by the state funding and tuition that make up the University of Georgia’s budget. State funding is decreasing as a percentage of the university’s total operating budget and the university is committed to keeping tuition and fees affordable

Less than 35.5 percent of the University of Georgia’s operating budget is provided by state appropriation. Tuition and fees only provide another 12.4 percent of the budget, which leaves a huge gap to fill. 

Groups like the University of Georgia Foundation are needed to step in and fill the gap.

Q:  Why is the foundation separate from UGA?

The foundation is a not-for-profit, 501(c)(3) corporation – separate from
the university. About 80 percent of public colleges and universities have separate
foundations and for good reasons:

• Flexibility. Gift funds can be used in ways that public funding from the state cannot, such as scholarship support and faculty supplements.
• Return on investment. Georgia law limits how state institutions can invest their funds. The foundation, which is subject to different rules and regulations, can realize a significantly higher return on its endowment.
• Confidentiality. The foundation is able to keep confidential records, wills, trust agreements, correspondence and other personal documents relating to gifts. Laws mandate that records and meetings of state institutions are open to the public and many donors prefer their largesse remains out of the public eye.

Q:  Who governs the foundation?

A 35-member Board of Trustees oversees operations and provides a large amount of the funding used by the foundation each year for its programs. Each volunteer trustee is a leader in business or civic affairs and contributes their time, wisdom and resources without compensation. They meet a minimum of three times a year as a body, and many members attend committee meetings between full sessions. In addition, University of Georgia Foundation trustees contribute generously to the university through the foundation. Collectively, the group averages a total contribution of close to $1.4 million each year.

The trustees provide external oversight of the foundation’s operations, and the executive director of the foundation reports to them. The trustees recognize a responsibility to reflect in their membership the geographical, ethnic, and gender diversity of the University of Georgia’s alumni and friends.

Q:  How is the foundation funded?

The foundation's operating budget comes from three primary sources:

• State support by way of the University of Georgia for salaries and operations. The funding is provided under a contract for services.
• A management or administrative fee on the market value of restricted funds.
• Miscellaneous sources, including income from royalties, the foundation’s own operating endowment and unrestricted gifts.

Q:  How is the foundation held accountable?

The foundation openly discloses information about its policies, activities, financial statements and other information to further the understanding of its mission and operations.

The foundation meets hundreds of regulatory requirements at the federal, state and local levels in human resources, legal, real estate, financial and other areas. It often exceeds the requirements of regulatory agencies in order to provide better information and service to the University of Georgia and to donors.

The following items are available to the public:

• IRS Determination Letter
• Articles of Incorporation
• Foundation bylaws
• Meeting minutes of the UGA Foundation Board of Trustees
• Conflict of interest policy
• Administrative Services and Facilities Agreement between the foundation and the university.
• Audited financial statements (conducted/certified by Deloitte & Touche, LLP)
• Annual Information Return (IRS form 990)
• Investment Policy Statement
• Quarterly performance reports
• Policies regarding the establishment of fund-raising priorities
• Policies on acceptance of gifts and disbursement of funds
• Guidelines for named gifts
• Expenditure guidelines

Q:  Who sets funding priorities for UGA?

Administrators at the University of Georgia set the priorities. At the university there are always more ideas for enhancing the academic mission than there are funds to carry them out. UGA’s president determines which of many fundraising proposals will become university priorities.

Vice presidents, deans, and department and program heads set priorities for their units, within the context of university priorities.

Proposals for major projects and campaigns are sent to the Development Office for feasibility studies, and the results are forwarded to the president. The university reviews the studies and makes a final determination about its priorities. The president then forwards his priorities to the foundation’s Board of Trustees, which completes a thorough review and charges the foundation staff with directing programs and processes to fulfill the university’s needs.

Q:  Does the foundation make grants?

The foundation is not a fund-granting institution. However, it will on occasion make allocations that fund stated university priorities. These allocations may be made for academically focused endeavors such as faculty supplements, scholarships or communication and outreach programs that support the foundation’s mission of enhancing academics at the university.

UGA faculty or staff looking for project funding should consult the dean or director and development officer of their unit first. All requests are then forwarded to the Office of the Provost. From there it will be determined if the foundation may be able to assist.

Q:  Are any other private foundations working to support the academic mission of the University of Georgia?

Yes. There are a number of non-profit foundations created for the purpose of supporting the university.

Q:  Is there a rivalry between the University of Georgia Foundation and the Arch Foundation?

No, not at all. In fact, in many cases the board members of one foundation are close personal friends and business associates with their counterparts in the other foundation. Both organizations were chartered for the express purpose of supporting the University of Georgia and making it the best institution it can be.  The University of Georgia Foundation and the Arch Foundation should be viewed as complementary bodies working toward a common goal.

Q:  I’ve heard the University of Georgia Foundation referred as “the former fundraising arm of the university;” why are you not serving in that capacity today?

Actually, that is a common misconception. In fact, the University of Georgia Foundation has never been the school’s fundraising arm. The University of Georgia manages its own fundraising. The foundation accepts and manages gifts on behalf of the university but does not now, nor has it ever, served as UGA's "fundraising arm."