Reorganization Opportunity

Transcription

1 Reorganization Opportunity Move the University Development Office and Office of Investments to the Purdue Research Foundation Presented By: - Amy Noah, Vice President for Development (Interim) - Scott Seidle, Chief Investment Officer - Kevin Vedder, Director of Organizational Change Management

2 University Development Office

3 University Development Office Raised over $200M annually for past 12 years 5-year average return on $1 invested is $12.12 Maintain database of 822,475+ constituent records Processed 101,903 financial transactions in FY13 Performed nearly 300,000 biographical updates in FY13 Currently 199 employees supporting development functions across campus 158 serve as UDO employees 70 serve as front-line fundraisers 41 serve as college/unit employees November,

4 Background For some time, the University has been exploring the potential legal and financial benefits of an operating model in which university development and investment functions are maintained under an affiliated foundation s umbrella. Unlike Purdue s current situation, where the development and investment functions are maintained within the University, this is the model followed by many major research universities (including IU and the IU Foundation). November,

5 Foundations Supporting Fundraising Currently 9 Big Ten Schools with Fundraising in Foundations -Illinois -Indiana -Iowa -Maryland -Minnesota -Nebraska -Ohio State -Rutgers -Wisconsin Currently 5 Big Ten Schools DO NOT have Fundraising in Foundations -Michigan -Michigan State -Northwestern -Penn State -Purdue Out of 823 institutions responding to the NACUBO Endowment survey, 171 have institution-related foundations November,

6 Perceived Benefits o Refocusing and enhancing PRF s role as a supporting organization o Consistent with other current PRF initiatives and in alignment with original David E. Ross vision o Consolidating the development and investment functions to create a singular focus on raising funds and maximizing returns for the benefit of the University o Bringing us into alignment with the model adopted by many of our peer institutions o Establishing a platform for a scalable staffing structure that can grow o Maintaining the ability to operate through the current relationship as it is working now, while affording the Development function the opportunity to grow and become self-sustaining over time November,

7 Opportunity for Growth $ Reported in Millions Total $ Raised per Frontline Fundraiser (70 staff) $ Raised per Development Staff Member (199 staff) 5-year average Net Production $ $3.36 $ year average Philanthropic Cash $ $1.59 $0.56 $ Reported in Millions Additional Frontline Fundraisers Additional Development Services Staff Total Additional FTE Additional $ Raised per Development Staff Member * Cost Incurred ** Net Gain ROI*** Net Production $55.46 $5.38 $ % Philanthropic Cash $26.32 $5.38 $ % * Assumes average fundraising totals from above hold true for new staff. ** 47 FTE * $114,573 average cost per Development Staff Member; includes salaries, fringes, supplies and expenses. *** November,

8 Office of Investments

9 Overview Purdue Endowment $ 2.2 Billion Cash Management Investment Pool $1.3 Billion Retirement Plan $0.6 Billion* Full-Time Office of Investments was established in 2005 consolidating the investment expertise in a single unit. Ten staff managing $3.5 Billion of University and Foundation assets. Structured in 2005 to be self-supporting and transferable between the University and the Foundation. Assignment of the University assets to the Foundation allows for the consolidation of the investment holdings into a single comingled pool. The new Purdue Investment Pool (PIP) structure will increase administrative and operational efficiencies by eliminating dual custodial, accounting, distribution and governance processes. November,

10 Project management

11 Transition Roadmap Purpose: To plan, coordinate and execute the seamless transition of University Development Office and the Office of Investments to PRF in a manner that is transparent to stakeholders and does not impact ongoing business operations. Key Transition Elements: Communications and Engagement Workforce Transition Agreements Business Systems Budget and Funding Model November,

12 Transition Timeline Phase I Phase III 01/2014 Initial Workforce Transition (~152 EEs), Agreements in effect, Business Systems operational Beyond Spring 2014 FEB Workforce Celebration 01/31 Transition Issues Completed Eval. 100% Dept. funded UDO EEs for transfer? APR Begin Funding Model Assessment Phase II 12/15 SVC Agreements and Leases finalized; Budget Transfers Finalized 11/01 BOT EXEC. MTG / Project Execution, REORG Agreement Signed. 11/1 Stakeholder & Employee Engagement Plan Initiated Phase 0 10/11 Stakeholder & Employee Engagement Plan Completed 9/26 Communication Plan Completed Project Initiation 9/13