Post on 02-Jan-2016
Private Support for Infrastructure and Central ServicesGrowing with a Sustainable Financial Model
October 24, 2013
Private Gift Support for Infrastructure
• Current State
• Philanthropy supports direct expenses incurred by research, education, and patient care
• Philanthropy rarely supports the core administrative functions required to conduct research, educate students, and care for patients
• Gifts currently assessed at 4% with a 1% spending fee
• Exemptions from current fee include capital, student support, junior faculty fellowships, and various individual exemptions.
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UCSF faces significant demands against a limited supply of core central resources
Examples of Funding Obligations:
• Campus Seismic Investment: UC Hall, Clinical Sciences Building, San Francisco General Hospital
• Facilities Investments: Utilities and Deferred Maintenance Obligations for Existing Campus Buildings and Scheduled Renewal Projects
• Technology Investments: Business, Research and Clinical Systems and Related Infrastructure
• Strategic Programmatic Investments
• Continuing funding of central administrative functions including finance and accounting, development, and security.
The June 2013 Core Financial Plan began with over $350M, and is projected to decline below $100M in 2021-22
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2012-13 2016-17 2021-22 $-
$100
$200
$300
$400
UCSF Core Financial Resources - Projected Ending Fund Balance2012-13 through 2021-22
$ in millions
Operating Reserve (Goal 2%) (3)
Liquidity Reserve (2%) (3)
$376m
$45m
$74m
Base Case
Unrestricted Sources(1)
> Indirect Cost Recovery (38%)> State Educational Appropriation (31%)> Tuition (6%)> Investment Pool Income (6%)> Internal Assessments (8%)> Patent and Legal Recoveries (3%)> Medical Center Strategic Initiative (1%)> Other (7%)
Facilities Requirements 13%(2)
> Capital Projects> Programmatic/ Seismic> Facilities Renewal> Unanticipated Remediation
Debt Service 23%(2)
Strategic Initiatives
5%(2)
Enterprise-wideTechnology
Requirements 3%(2)
Operating Requirements 56%(2)
> Schools & Administration> Utilities> Office of the President Fees
(1) Percentages represent the distribution of projected revenues for the ten-year period(2) Percentages represent the distribution of projected annual allocations over the ten-year period(3) As a percentage of campus expenditures
= Recurring Revenues and Transfers In
= Annual Allocations
81%
Grants31%
Current Funds Restricted
26%
Construction25%
Current Funds Unre-stricted - Schools/Depts
2% Current Funds Un-restricted - Chancel-
lor1%
Endowment/FFE Un-restricted
0%Endowment/FFE
Restricted11%
Endowment/FFE - Pro-fessorships/Chairs
4%
Endowment/FFE - Student Support
0%
UCSF Private Support is almost entirely directed to restricted use
(2013 FY)
Proposed Infrastructure and Operations Fund
• Informed by discussions with Revenue Philanthropy Group. Proposal similar to practices at other major research institutions.
• Replaces existing assessment model to increase support for facilities operations and maintenance and central administrative functions.
• Proposed: 4% at time of gift/6% upon expenditure.
• All gifts and endowment income subject to assessment, excluding student support
• Gifts to existing capital campaigns will receive grandfathered exemption
• Exceptions will require alternate funding source.
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Series1
$(100)
$-
$100
$200
$300
$400
UCSF Core Financial Resources - Projected Ending Fund BalanceAlternate Gift Assessment Models
2012-13 through 2021-22$ in millions
Operating Reserve (Goal 2%/Currently 0%)
Liquidity Reserve (2%)
Base CaseIncludes Current 4% gift/ 1% spending assessment
$376mProposal
4% gift/6% spending
$162m
$74m