Darnell Henderson | The Crow’s Nest
University finances are often convoluted – and sometimes, a mystery.
Many of the finances and assets which universities own can be circled back to what is known as a foundation.
A foundation is an organization that works with a university to raise money for the university’s projects, research and development. Foundations are private entities, which are separate from the university, with different leadership.
The primary role of a foundation is to seek out donations for the university and place those donations into an endowment fund. The foundation also manages this fund.
An endowment fund is a tool foundations use to manage their donations and make financial returns on those donations through various investment methods.
This allows a donation to “eventually exceed the value of the original gift,” according to the USF Foundation website.
The USF Foundation Board of Directors has nine members, with USF President Steve Curall sitting in as a non-voting member.
According to its website, the USF Foundation “connects the University with donors who want to make a difference by providing private, philanthropic support to promote student success, academic initiatives, research and other strategic priorities of the University of South Florida.”
The USF Foundation allows donors to establish individual endowment funds within the foundation if their donation exceeds $25,000. This allows high donors to have a voice in the utilization of their donation to the university.
Endowments are also used as a one of the 12 metrics for universities in Florida to obtain preeminence.
Preeminence is a designation rewarded by the Florida Preeminence Program.
Although only 11 of 12 metrics are required for preeminence, surpassing $500 million in their endowment marked USF’s completion of all preeminent metrics.
In the 2018-2019 fiscal year, the USF Foundation raised $112 million, making the overall university endowment reach $513.5 million.
