Frances S. Taylor, Board of Directors Chair, with Michael M. Knetter, President and CEO
Dear friends,
Thanks to you, in 2010, we distributed $206.2 million to support people, programs and facilities at the University of Wisconsin-Madison. We received $165.7 million in new gifts and pledges. While proud to be a part of this achievement, we are well aware that the financial foundation of public universities is changing dramatically and that philanthropy will play an even larger role in the future. We have and will continue to adjust our development operation to better meet this challenge.
At year end, the endowment fund balance was $1.8 billion, and we had a total of $2.6 billion in assets under management. Investment income on the endowment was 11.7 percent. In these uncertain times, we are more focused than ever on prudent management of your gifts. We have made adjustments to our investment policy and team that we believe will improve relative performance and increase our efficiency over time.
This past year has been a tumultuous one for our university on many levels – from the controversial proposals affecting governance and finance of the University, to the departure of Chancellor Martin and return of Chancellor Ward, along with the substantial reductions in budget support from the state. Fortunately, one of the University’s great strengths is its adaptability to economic, social and political change. Even in this challenging period, we’ve opened the Wisconsin Institutes for Discovery, the new Union South and the stunning expansion of the Chazen Museum. Thanks to the support of many generous alumni and friends, we’ve increased the number of annual Great People Scholarships for need-based financial aid from 69 to 524. The vitality these and many other investments bring to campus life is palpable.
At a time when our national social fabric is showing signs of stress, the University of Wisconsin-Madison remains one of the most enduring and successful public-private partnerships ever forged. Thank you for being a part of that partnership. We will steward your gifts to help ensure the University continues to set the standard in ideas, discovery and leadership for generations to come.
Michael M. Knetter
President and CEO, University of Wisconsin Foundation