Frequently Asked Questions

Why is the Foundation separate from OSU?
The Foundation is specifically organized to provide management, reporting and stewardship services that donors require. Central management of these services results in greater efficiency. The benefits derived from this arrangement include:

• Donors have more latitude in designating the use of their gifts than would be possible if the funds were given directly to the University and commingled with public funds.
• Private funds held by the Foundation offer the University greater flexibility in the timing and nature of expenditures.
• Donors can be assured that every effort will be made to maintain confidentiality because the Foundation is a separate not-for-profit corporation and not subject to open records laws.
• The Foundation manages millions of dollars in endowment funds and the return on these investments contributes significantly to the private support available to OSU. Unlike appropriated dollars, gift funds can be invested in equities and other instruments for long-term growth. Generally these earn a significantly higher rate of return than appropriated dollars because state statutes limit how appropriated funds can be invested. The difference in earnings can be substantial.

The OSU Board of Regents formalized their endorsement that all private funds intended for the support of OSU be directed to the OSU Foundation by adopting a resolution to that effect.
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Who governs the Foundation?
The chief executive officer of the Foundation directs the organization's operation under policies established by a 15-member Board of Trustees. Chosen because of their professional expertise and support of the University, the Trustees occupy a fiduciary relationship with the corporation. The Trustees are elected for three-year terms and serve without compensation.

They are elected from among members of the Foundation's Board of Governors, a group of alumni and friends who provide significant financial support and volunteer services on behalf of the University. Governors are elected for six-year terms and there is no limit to the number of members who may serve at one time. However, the President of OSU participates in meetings of the Foundation Board of Trustees and other members of the University administration serve in advisory capacities on various trustee committees.
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How is the Foundation accountable?
The Foundation recognizes its responsibility to maintain both public confidence and private trust. Information about its policies, activities, financial statements and other information that would provide a further understanding of its mission and operations are available for review. In turn the Foundation honors its obligation to maintain donor confidentiality and to pursue accepted business practices with regard to human resources, legal, real estate, financial and other matters. In addition to the external oversight provided by the Board of Trustees, the Foundation meets all regulatory requirements at the federal, state and local levels, and has taken the initiative in many areas to exceed the requirements of regulatory agencies in order to provide better information and service to Oklahoma State University and to donors.

As part of the Foundation's reporting responsibility, the following items are made prepared:

• An annual financial audit conducted by a national accounting firm. The audit is reviewed with the audit and budget committee of the Board of Trustees and presented to the full Board.
• An annual report of giving and Foundation activities.
• Written operational policies.
• Investment policies.
• IRS tax form 990.

Why does OSU need private gift funds?
Today, Oklahoma State University is state-assisted, not state supported. State dollars currently provide slightly less than half of OSU's funding needs. This percentage is shrinking as higher education continues to compete with many other demands on state revenue. With continued tuition increases over the last decade, the University must be cautious about additional tuition increases that might deny deserving students the chance for an OSU education. Since state support is declining relative to the University's total operating budget and limited increases can be expected in tuition, private gifts are becoming increasingly important to Oklahoma State University.
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What happens to a gift made to the OSU Foundation?
Gifts made to the OSU Foundation are used as the donor directs. Typically, about 97 percent of all gifts are restricted for a specific program, project, college, campus, department, etc. Only about 3 percent are unrestricted donations. Restricted gifts are deposited into one of over 2,000 Foundation accounts. A gift is restricted when the donor writes on a check, reply card or other correspondence indicating how the gift is to be used. The designation of a gift is confirmed on the receipt returned to the donor.

Expenditures of these gift funds must have the proper administrative approval and must be for purposes that meet the guidelines established for that account.
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What are the responsibilities of the Foundation?
The OSU Foundation staff works closely with the OSU administration and faculty and with scores of volunteers across the country to help maximize private support for Oklahoma State.

The Foundation's staff members coordinate constituent fund raising in each of the University's colleges and campuses and areas such as athletics, the library, research and student affairs. Foundation staff also assists with individual gift planning, manage campaigns, organize honor gift club events and maintain personal contact with past, present and future individual and corporate contributors.

Members of the Foundation staff serve as sources of professional fund raising expertise for deans, department heads and others seeking ways to initiate or enhance development activities.

The Foundation's communications staff creates development publications for annual funds, comprehensive campaigns and other special projects.

Other programs include a year-round telefund campaign directed by a Foundation telefund supervisor and staffed by student part-time employees.

The Foundation's records staff processes all gifts and manages the donor database to ensure accuracy and credibility. The business and finance staff oversees fund disbursement and manages endowments and trust. The information systems management staff provides the technical expertise to efficiently store and retrieve the information in the Foundation's database of donors. The development research staff helps match current and prospective donors' interests with University needs.

Providing invaluable support for all of these efforts are administrative support and office services staff.

All staff are dedicated to quality service and to supporting and enhancing Oklahoma State University at every opportunity.
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How are the operations of the Foundation funded?
As a separate corporation, the OSU Foundation is responsible for funding its own operation. For the fiscal year 2001-02, the Foundation expended approximately $5.2 million for operations, while generating $33 million in private support through gifts, investments and promises to give and identifying $14 million in planned gifts.

Funds for operational expenses come from the following sources¹:

• 25% Investment earnings - Non-endowed gifts designated by the donor for support of current programs are placed in short-term investments until expended by the University. These earnings vary significantly depending on short-term interest rates and timing of expenditures. In addition, gifts designated specifically for the operation of the Foundation are placed in the pooled investment fund. The earnings from both these long and short-term investments help underwrite activities of the Foundation.
• 60% Endowment and Trust Management Fees - Before investment earnings are distributed to individual endowed accounts, investment and management expenses are deducted from the gross earnings. This amount helps offset the cost of managing more than 1300 endowments. In addition, the Foundation manages approximately $18 million in charitable trusts that pay income to the donors and other beneficiaries. The fee for trust management services ranges from .4% to 1% depending on the size of the trust.
• 5% Contract Services - The Foundation contract with OSU to oversee private fund raising for the University.
• 8% Other Fees - Recognizing the critical role that private funding will play in the future of OSU, the University and Foundation have agreed to set aside five percent of most gift revenue and use these funds as "seed money" to generate additional gifts. In addition, the first year's investment earnings from all bequests, life insurance death benefits and remainder interest in life income gifts are retained by the Foundation.
• 2% Other - Donors who understand the important role the Foundation plays in the life of the University often direct their gifts specifically to support the operation of the Foundation.

¹Projections from 2003-2004 Operating Budget.
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What are the investment policies of the Foundation?
Endowment gifts are made with an expectation by the donor and the commitment by the Foundation that only a portion of the investment return generated by the gift may be spent. These gifts are placed in individual, named accounts. Endowments are invested through the Foundation's Pooled Investment Fund, which totals in excess of $167 million¹. Investment policies and objectives of this fund are consistent with the permanent nature of endowment gifts, i.e. achieving an appropriate balance between security of principal, current income and long-term growth. Investment policies are approved by the Board of Trustees, based on recommendations developed by a committee of the board, the professional management of the Foundation and, when appropriate, outside investment counsel.

¹Based on June 30, 2000, market value.
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Legal Information.
The Foundation's legal name is Oklahoma State University Foundation, and its taxpayer identification number is 73-6097060. Contributions to the OSU Foundation qualify as gifts to an IRC Section 501(c)(3) public charity for federal income, estate and gift tax purposes. Gifts are deductible as allowed by law.
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How do I contact the OSU Foundation?
You can come by and see us. The OSU Foundation offices are located at:

400 S. Monroe
Stillwater, OK 74074

Or you can send mail to: P.O. Box 1749 Stillwater, OK 74076-1749

If you would like you can call or fax us at one of the numbers below:

• Toll Free: (800)622-4678
• Main Phone: (405)385-5100
• Fax: (405)385-5101

Finally, if there is someone in particular at the OSU Foundation you would like to contact, scroll through the list of the OSU Foundation's staff to see if you can find the individual you would like to contact.