Foundation 101

Topics

• PSU Foundation
• Types of Accounts/Funds & their Use
• Giving Societies
• Types of Gifts
• Annual Giving
• Stewardship

What is the PSU Foundation?

• Created in 1963, the PSU Foundation raises philanthropic gifts, invests them responsibly, and stewards them in accordance with donors’ wishes.
• In 2014, the PSU Foundation, Advancement Services, and the Alumni Relations office merged into one entity: the PSU Foundation as we now know it. The Foundation operates as an independent 501(c)(3).
• It is important to note that the PSU Foundation operates on the same fiscal year as Portland State University.

CLAS Development Staff

• Allison Rollison, Director of Development
• Kathleen Hampton, Major Gifts Officer
• Stephanie Gustafson, Development Coordinator
• Note: Director of Development and Major Gifts Officer are employees of the PSU Foundation, while the Development Coordinator is an employee of the PSU CLAS Dean’s Office.

What are Foundation Funds, and what policies should I know about regarding funds?

• Accounts that contribute to the mission of Portland State University.
  • Portland State University’s mission is to enhance the intellectual, social, cultural, and economic qualities of urban life by providing access throughout the lifespan to a quality liberal education for undergraduates and an appropriate array of professional and graduate programs especially relevant to metropolitan areas. The University conducts research and community service that support a high quality educational environment and reflect issues important to the region. It actively promotes the development of a network of educational institutions to serve the community.
• Funds can be used to hold money for scholarships, grant money, projects, general program support, and more.
• Guidelines for opening a fund include:
  • A basic new fund, or account, requires an initial donation of $500.
  • Opening a new Endowed account (see What is an Endowed Account) requires a donation of $50,000 or more.
  • Accounts named in a person’s honor require a donation of $10,000 or more.
  • Due to IRS charity guidelines, the donor(s) cannot be a signer on the account. For more information on the process to open an account, please see our CLAS Development and You page.
• Note: There is a 5% fee on all donations made to a Foundation fund. This fee amount is in line with the administrative fee at the University of Oregon and Oregon State University and ensures that the Foundation continues to be able to manage these funds.

Types of Funds/Fund Restrictions

• Restricted
  • A fund that is permanently restricted by the donor in perpetuity. Income can only be used for the restricted purpose designated by the donor
    • E.g. Anthropology Faculty Fund: restricted to use for faculty development. This could be used for travel to a research area or conference registration.
• Unrestricted
  • A fund that can be used for multiple purposes across the University or Department
    • E.g. Anthropology Department Fund: can be used for any department business purpose, whether it be office supplies, catering, or student support.

What is an Endowed Account?

• Endowed accounts are created by donors who require that the principal (donation amount) never be used, but that the earnings generated by investing that principal be used to pay for general support, scholarships, annual awards, etc.
• Portland State endowed accounts require a $50,000 minimum contribution.
• Funds in endowed accounts are managed by JP Morgan.
• It is important to note that every endowed account is subject to an annual management fee (1.5%). The fee covers the administrative costs and financial management of each fund.

PSU Foundation Giving Societies

• Park Blocks Society: donors who give $1000+ in a year (cumulatively) anywhere at PSU
• Epler Society: donors who include the university in their estate plans
• Vanport Society: donors whose lifetime giving to PSU is $100,000+

Units may also have their own giving societies. For example, CLAS has a Dean's Circle for donors who give $1000+ (cumulatively) to any CLAS fund or combination of funds within a fiscal year.

Gift types:

• Major Gift: Gifts that are $100,000+
• Special Gift: Gifts that are $25,000–$99,999
• Annual Gifts: donations of smaller amounts, often made in response to annual appeals or made as a recurring monthly donation
• Planned Gifts: gifts to be made at a future date through a mode such as a life insurance donation or estate bequest (see Planned Giving)
• In-kind Gifts: gifts of items such as equipment either for the University’s use or to be sold by the Foundation
• Pledge: a donor’s promise to give a certain amount that is then paid in smaller amounts (pledge payments) until that amount is met. The “pledge amount” is the amount originally promised, and the “pledge balance” is the amount the donor still has left to pay.

Annual Giving:

• This section is currently being updated.

The Fund for PSU

• The Fund for PSU raises vital unrestricted support for PSU:
• Scholarships
• Academic Programs
• Campus Development
• Faculty Projects

Direct Mail Solicitation

• Direct mail solicitations are letters sent via postal mail that request contributions to PSU.
• CLAS Development also works with the annual fund to send out our own solicitation for the CLAS Dean's Fund for Excellence and other fund options based on a donor's past giving and their PSU affiliations. This occurs during November.
• Departments can work with the Development Office and PSU Foundation to create department-specific appeals in the fall.

Planned Giving

• Planned giving includes the following:
  • Bequests
    • Given after a person has passed. This can be a large gift at no immediate cost to them, and it can be counted as a charitable deduction on a taxable estate.
  • Life insurance
    • Donors may direct part of a life insurance policy to PSU.
  • Charitable annuities
    • Current tax deduction that has fixed and predictable payments.

What do donors receive?

• Tax receipt
• Depending on the amount of the contribution, some donors may receive a letter from the PSU President or the CLAS Dean and may also be invited to special events, receptions, etc.
  • $1000 to any CLAS fund: an acknowledgement letter from the Dean
  • $1000 to any fund: a letter from PSU Foundation leadership
  • $10,000: a letter from the PSU President
• Donors are also listed in an online donor honor roll. Those who contribute $1000+ are listed in the printed honor roll.
• Donors who have created endowments with their gifts also receive an endowment report.