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Endowment payout increases

By Lynette Murphy

The question usually arises around this time of year when the Kansas Legislative session gets under way: How much funding will Wichita State receive?

During the past three years, the answer’s been about the same. The university’s share of state funds has increased an average of 4.5 percent each year, with a total increase of 14.1 percent since fiscal year 1996.

But there’s a whole different answer when it comes to endowed funds. Since FY 1996, the money paid out to the university in scholarship and non-scholarship endowed funds has increased 40 percent, from $2.05 million to nearly $2.88 million. Endowed funds are paid from interest accumulated from

the Endowment Association’s investments of private money.

The Endowment Association also pays out current funds, which go directly to causes without being endowed.

The private money serves as a nice enhancement to this year’s $129 million university budget and reiterates that WSU is state-assisted, not totally state-funded.

“Due to the increased level of giving and an optimal level of return on our investments, we’ve been able to get more money to the university, which allows programs to be enhanced and larger scholarships to be awarded,” says Frank Rajewski, director of finance and administration for the Endowment Association.

For example, $5 million of the total $14.14 million raised during FY 1998 in cash and current gifts was dedicated to the endowment, which helps to build a stable, constant source of university funding.

And, smart investing, with the advice of the Endowment Association’s volunteer administration committee, has made for some good returns. About 60 percent of the endowment is invested in stocks, with the other 40 percent in bonds. The market value of the endowment, which includes assets of the Endowment Association and the Board of Trustees, increased from $81.3 million in FY 1996 to $113.3 million in FY 1998. The assets include cash, of course, but also property, artwork and insurance policies, which are not dispersable.

The amount paid out to the university from dispersable endowed funds is based on 5 percent of a three-year average of endowment fund market values, determined one year before the fiscal year in which funds are to be distributed. That means that the current fiscal year’s payout is based on FY 1995, ’96 and ’97 market values.

“Figuring the payout amount a year ahead of the next fiscal year allows departments to plan their budgets,” Rajewski says. About $3.3 million is scheduled to be paid out in FY 2000.

Of the $2.88 million from the endowment this year, $1.22 million is funding scholarships. The remaining $1.64 million is used at each dean’s discretion, with some exceptions such as professorships and grants that have specified purposes.

The W. Frank Barton School of Business is the largest holder of non-scholarship funds due to the endowment established by the school’s namesake. In the Barton School, non-scholarship funds finance summer research grants, teaching and research awards, and salary supplements for faculty. Gerald Graham, dean of the Barton School, says the salary supplements help the college stay competitive in the marketplace.

“Because of this capability, we’ve been able to attract and retain professors that we would have otherwise lost.” Private money from the endowment is “absolutely essential,” Graham says. “The environment in business schools is extremely competitive for both excellent faculty and high-performing students. Without support beyond state budgets, we would have far fewer outstanding faculty and students.”

Fund-raising priorities established

Equipment, scholarships and faculty development are the three major university-wide needs that receive current and endowed private money. Recently, academic deans, along with their development directors, came up with more specific fund-raising priorities, some of them long term.

The complete list of priorities is available online under “Alumni and Endowment Associations” at www.wichita.edu.

Some of the priorities are:

• Endowed support for the advertising program in the Elliott School of Communication, $200,000

• A history/anthropology grant to excavate and document the site of James R. Mead’s 1860 Trading Post near Towanda, $250,000

• Sponsorships for the state Science Olympiad competition, $55,670

• Equipment for a cyber lounge in the Rhatigan Student Center, $50,000

• Visiting artist program in fine arts, $10,000

• Concert grand piano, $60,000

• Redesign of Miller Concert Hall lobby, $50,000

• Underwriting for Gordon Parks exhibition from May-August, $85,000

• Endowed gift for honors retreat, $100,000

— Lynette Murphy

Inside WSU is published by the Office of University Communications for Wichita State University faculty and staff on Fridays - with an exclusive online version every other Friday - during the fall and spring semesters. Items to be considered for publication should be sent to campus box 62 or amy.geiszler-jones@wichita.edu 10 days before publication.

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