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Editor's note: The following Q&A discusses the University's upcoming seven-year campaign to raise at least $1 billion.
Q. How will the development office spend $1 billion raised in a campaign?
A. Most of the money given by private donors is earmarked by the donors for specific departments, programs or other purposes. The development office doesn't spend the money -- it deposits it in funds for the use of the intended recipients.
Some gifts are for endowment and some are expendable, depending on the donor's wishes and the purpose of the gift.
Endowment funds are invested and the income from investments is used to achieve a particular objective. For example, a gift for an endowed professorship is invested and only part of the income from the investments is spent to pay for the professorship. The rest of the income from the investments is reinvested to grow the principle. The professorship will benefit Carolina permanently because the gift is never spent.
Expendable gifts are available to be spent right away to achieve the donor's objective. For example, most departments have expendable funds to meet operational needs of the department.
Q. Why is the University constantly raising money when we are a state-supported institution?
A. North Carolina taxpayers support the
University's core functions generously, but we can't expect taxpayers to fund every need.
Approximately 30 percent of the University's budget comes from the state. State funds cover the basics such as salaries, utilities and some capital (brick and mortar) expenses.
Gifts from donors give the University a margin of excellence that cannot be attained with state funds alone. For example, the state funded construction of the Center for Dramatic Art, but donor contributions funded critical enhancements, including teaching materials and equipment crucial to the learning experience, state-of-the-art theatrical lighting and sound equipment, theater seating, office and studio furnishings and other materials needed to stage professional productions.
Q. Will money raised in the campaign go toward increasing faculty and/or staff salaries?
A. Unit priorities determine the focus of cam-
paign fund raising, and faculty support is a priority of many units, just as it was during the Bicentennial Campaign. Recruiting and retaining top faculty is critical to the educational experience of Carolina students and the national reputation of the University.
State personnel regulations offer the University far less leeway in setting and supplementing SPA salaries, but staff salaries could be increased with private funds if funds are available and increases are made within the salary range and state policy guidelines. However, donors tend to designate their gifts for other purposes.
Staff development funds are among the priorities of some units. These funds provide on- and off-campus educational and professional development opportunities for staff.
Q. Will the campaign be on top of the annual fund raising we always do or will it be part of our usual fund raising?
A. The purpose of the campaign is to take
stock of the University as it is and determine where it can go with a major infusion of private support into its top priorities and areas of excellence. After consulting with all of its units, the University develops an exciting and comprehensive vision for its future, shares it with potential donors at all levels and asks them to invest.
The campaign achieves a larger purpose than annual fund raising alone could accomplish, but annual donations are very important to meeting the highest priorities of Carolina's departments and programs.
During the campaign all gifts to the University, from small annual gifts to major one-time gifts, will count in the campaign total.
Q. Carolina raised more than $400 million during the Bicentennial Campaign. What happened to the money?
A. The impact of the Bicentennial Campaign
is all around.
Approximately 34 percent of campaign gifts were for endowments, 50 percent were in the form of expendable gifts and grants, and 15 percent were for new buildings and renovations.
University faculty and staff gave $9.9 million in a time when many had gone three years without raises, sending a strong signal to outside donors that the campaign was important to the University.
The Bicentennial Campaign created 60 endowed professorships, numerous fellowships, research leaves and interdisciplinary study opportunities for faculty; funds to bring visiting lecturers, speakers, writers and scholars to campus; 111 new undergraduate scholarship funds; and 65 new graduate fellowships and scholarships.
Campaign gifts helped build Tarrson Hall, the Thurston Building, the Center for Dramatic Art and a new building for Lineberger Cancer Center. Gifts also helped pay some of the costs of the restoration of Old East and are at work today renovating Graham Memorial to create the James M. Johnston Center for Undergraduate Excellence.
Answers provided by Office of University Development
If you have a question about a campuswide issue that you'd like to have considered for Direct Line, send your question to University Gazette editor Scott Ragland, who can be reached by telephone at 2-7124, by fax at 2-2279, by e-mail at scott_ragland@unc.edu or regular mail at CB #6205.
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