About the UH Foundation

What is the overall purpose of the UH Foundation?
The University of Hawaiʻi Foundation, a nonprofit 501(c)(3)organization, raises private funds to support UH. Its mission is to transform and create a better future for Hawaiʻi through alumni and community philanthropic support for public higher education, to be a trusted manager of private investments, and to build and sustain the university's relationships with donors, alumni, the community, and institutional and university partners.

In short, the foundation supports the university's academic and research programs enhancing the state's support.

Is the Foundation a department of the university?
No. Although the Foundation works closely with university leaders, it is an independent, non-profit foundation that is legally separate from the university and the State of Hawaiʻi. UH Foundation ensures that gifts are used according to donors' wishes and that funds are managed so that future generations will benefit from them.

The State of Hawaiʻi supports the University of Hawaiʻi System. Why are gifts needed?
No major university - public or private - can grow and excel without a healthy mixture of public and private funds. Private contributions leverage limited public funds and maximize taxpayer dollars. More importantly, philanthropy creates enthusiastic partners with a vested interest in "their" university. To sustain excellence, we must look to those who are equally passionate about the future of UH and who can provide assistance - through endowed giving and other financial support - that will elevate the university to its rightful place among the nation's finest academic institutions.

How is the Foundation funded?
The Foundation's operating budget comes from four primary sources:

A contracted amount paid by the University of Hawaiʻi to the Foundation for fundraising and alumni relations services.
An annual assessment on the market value of the endowment. The current endowment administrative fee for fiscal year 2007-2008 is 1.5% based on the 6/30/2006 endowment market value. The amount is determined annually and is applied quarterly.
Interest on short-term investments.
A one-time administrative assessment of 3.5% on all incoming gifts, including endowment gifts and other non-gift income.

The Foundation's Board of Trustees is responsible for reviewing and recommending fee assessment policies. Any changes to the policy are approved by the Board.

A smaller percentage of the operating budget comes from unrestricted gifts which are used to support students at the Foundation's call center who work to raise private gifts on behalf of the university and Annual Giving campaigns. These programs raise funds for all ten campuses of the UH System.

Doesn't the Foundation already have a lot of money? Why are more gifts needed?
Private support empowers the Foundation to provide significant benefits to the University System, and enhance the student experience. This funding stream is key to UH's ability to fulfill its strategic vision, and build on its centers of excellence. New gifts fund research, scholarships, improved facilities, endowed chairs, increased faculty support and more.

Why am I getting telephone calls from the Foundation?
Telephone calls are the heart of the Foundation's Annual Giving program. The purpose of these calls, made by student callers from the university, are to connect the university with its alumni, secure gifts to support the growth of the university, and update the alumni database. In the process, donors have the opportunity to speak with students about their shared experiences of attending the University of Hawaiʻi.

Who governs the Foundation?
A Board of Trustees comprised of 30 Trustees, each a leader in business or civic affairs. Many are UH alumni. Trustees are volunteers and serve without compensation, contributing their time, wisdom, and resources for the university. They provide external oversight of the Foundation's operations, contributing their considerable expertise. Trustees meet at least four times a year as a body, and also participate in committees throughout the year. The president of the Foundation reports to them.

How is the Foundation held accountable?
The Foundation is committed to retaining both the public and private trust. The Foundation openly discloses information about its policies, activities, financial statements, and other information to further 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 Hawaiʻi and to donors.

Who decides how gifts are used?
The donors. When they make their gifts, donors can designate which school, department, project or purpose will benefit from their financial support. The Foundation is required to follow donors' restrictions and together with the donor, creates a personalized Gift Agreement with where applicable. These gift agreements govern the use of funds in perpetuity. Of the gifts made each year to the Foundation, about 99 percent are designated by donors for specific purposes. Only about 1 percent of gifts are unrestricted.

Who decides how the money is invested?
The Investment Committee of the Foundation's Board of Trustees, working in concert with the Foundation's investment advisor, sets the asset allocation and chooses the investment managers.

What happens to gifts once they are contributed to the Foundation?
Gifts go into an existing fund account or a new fund that may be created according to a donor's designation. The fund is used to benefit the University of Hawaiʻi System in the area designated by the donor. The Foundation provides financial management and accounting services for each fund. Depending on the donor's specifications, a gift may be spent entirely, or it may be invested to provide support for the University of Hawaiʻi in perpetuity.

Are gifts to the Foundation tax deductible?
Yes. Gifts to the Foundation, a 501(c)(3) charitable organization, are fully tax deductible to the extent allowed by law. You should consult with your tax attorney or financial advisor.

Can I receive a tax deduction for equipment or supplies I give to the university?
Yes. If you make a commitment to provide equipment or supplies, which would be referred to as a gift-in-kind, you will be recognized for the value of those pledges and gifts that have been properly documented. Documentation through a receipt, invoice or other instrument must be submitted at the time the gift-in-kind occurs.

Why should I give to the Foundation instead of giving directly to university?
The non-profit 501(c)(3) structure legally preserves the private nature of the gifts and the donor's anonymity when requested. The Foundation, through its exercise of trust and fiduciary responsibility, gives donors additional confidence that their gifts will be used in accordance with their wishes and to enhance programs rather than replace state support. In fact, Foundation funds cannot be appropriated for other purposes.

Also, in the unusual cases in which donors give directly to the university or one of its departments, the university generally forwards the donation to the Foundation to manage the donation as the university's investment and administrative agent. The university recognizes the Foundation as the official organization for raising and managing private resources for the university's benefit.

May I designate my gift to a specific purpose?
Yes. 99 percent of gifts are designated or "restricted" by donors for specific programs or purposes. Restricted gifts are earmarked for specific purposes, such as an endowed scholarship or professorship, or a specific unit, program or campus.

On the other hand, "unrestricted" gifts provide funds that are not limited to specific program uses in colleges and by departments. These gifts provide resources for scholarships, innovative teaching grants, research, faculty and student travel, building restoration, information technology enhancements and other areas of need.

How can I afford to help the University of Hawai‘i System?
Every single dollar is counted, and serves as an investment in UH. In the fiscal year ending 6/30/06, more than 23,000 alumni and friends made an annual gift to the UH campus, college or program of their choice, collectively giving more than $2million to the 10 campuses of the UH System.

Hundreds of other donors don't give in the form of cash. Instead, they make other types of gifts such as real estate or stocks and bonds, both of which can be given outright or through a bequest. The size of the gift you wish to make is entirely up to you. Contributions of all sizes are important and are gratefully accepted.

Can I give something besides cash?
Yes. Non-cash gifts include:

Stocks and bonds
Real property
Personal property
Memorial or honorary contributions
Wills and trusts
Corporate matching gifts (leverage your cash gift)

What services does the Foundation provide for the University of Hawaiʻi?
As the central fundraising agency for the University of Hawaiʻi System, the Foundation conducts campaigns for university priorities and provides central services to raise funds, manage assets and investments, and administer gift accounts for the university. Additionally, the Office of Alumni Relations at the UH Foundation serves as the primary contact between the 10 campuses of the UH system and its more than 250,000 alumni.

The Foundation:

Provides resources and specialists in major gifts and foundation, corporate, and annual and planned giving.
Solicits contributions to benefit all units and campuses of the UH System.
Conducts feasibility studies and planning for fundraising campaigns.
Coordinates relationships with prospective major donors.
Acknowledges and thanks all donors.
Produces fundraising proposals.
Sponsors events to involve and recognize donors and volunteers.
Maintains a central records service for all donors and alumni.
Offers professional services to UH departments, donors, and their advisors on planned gifts, wills, and trusts.
Provides training for development officers, volunteers, and administrators.
Responds to more than 200 requests per month for research and reports.
Manages investments with a total market value of more than $175 million
Provides accounting services for more than 3,900 accounts and responds to more than 1600 account service requests per month.
Administers more than 1,700 aid accounts for the benefit of UH students.
Provides IRS-auditable receipts to donors.

What happens to my grant funds once they are deposited in the Foundation?
The funds are deposited into an account at the UH Foundation that is set-up for use by the grant recipient according to the terms and conditions provided by the donor at the time the grant was made and accepted.

Does the Foundation make grants?
The Foundation is a fundraising rather than a fund granting institution. UH faculty or staff looking for project funding should first consult the chair or dean and development officer of their unit. The Foundation may be able to assist

How is my local UH Foundation office connected to UH Foundation Central in Honolulu. I want to make sure that my gift stays in my community and benefits the students at my local campus.
The University of Hawaiʻi Foundation serves the entire ten campus system. Many of the campuses state wide have development offices staffed by employees of the UH Foundation. These employees are focused primarily on working with alumni and friends in their region to raise support for their campus and its priorities. To ensure an efficient organization, many services are centralized at UH Foundation including mail and telephone solicitations. So, while the call or mail may originate from the UH Foundation's central location on Oahu, donors may decide exactly where they want to designate their gifts. UH Foundation does not only serve UH Mānoa, but the entire ten campus system.

Why is there an administrative fee?
It takes money, time, and staff to raise money even for the most noble causes. UH Foundation is challenged by two simple questions - first, how do we "fund" our fundraising efforts and, second, how do we keep those expenses as low as possible so more of our donor's gift can go to UH? The Foundation plays a pivotal role in raising the resources that will help our university forever fulfill the educational dreams of the people of our state.

UH Foundation charges two fees to help us pay for the work that we do, which is raise money for the university, manage the money we raise, and distribute the money to the university.

A one-time administrative fee of 3.5%. For example, if someone makes a gift of $1,000, then $35 goes to the Foundation for operating costs and $965 goes to the purpose designated by the donor. 96.5% of all the money we raise is used entirely for the purpose intended by the donor. Very little of a donor's gift is used to support the Foundation itself.
The second fee is an endowment management fee of 1.5% annually. This fee usually comes from the earnings of an endowment.

What are the benefits to creating an endowment?
Endowments are permanent. They are managed for prudent growth to ensure that earnings exceed inflation and that the donor's purpose is fulfilled in perpetuity. Endowments allow the university to budget the gift's use and count on it forever. Endowments to support faculty positions allow UH leadership to attract renowned experts, or retain our promising junior faculty. Any endowment moves UH forward permanently in the area designated by the donor.

If you have other questions, please send email to info@uhf.hawaii.edu.