Minutes of the Meeting of the Board of Governors of the California State University, Fresno Foundation September 27, 2018

Transcription

1 Approved A meeting of the Fresno State Foundation was held on at 3:00 p.m. in the Foundation Board Room located at 4910 North Chestnut. The following members were present: Ms. Vinci Ricchiuti, Chair; Mr. Nat DiBuduo, Dr. Joseph I. Castro, Ms. Octavia Diener, Ms. Joan Eaton, Dr. Eric Hanson, Mr. John E. Horstmann, Mr. Larry Johanson, Ms. Maurine Jones, Mr. Hal Kissler, Ms. Annette LaRue, Mr. Claude Laval III, Dr. William M. Lyles, Mr. Chris Morse, Ms. Debra Nalchajian-Cohen, Mr. Ken Newby, Dr. Joan Otomo-Corgel, Ms. Kim Ruiz-Beck, Ms. Lorraine Salazar, Mr. Bill Shaughnessy, Mr. Bill Smittcamp, Mr. George Soares, Mr. Richard Spencer, Mr. Kyle Stephenson, Dr. Rick Whitten, Mr. A. Emory Wishon III Members absent: Also Present: Mr. Darius Assemi, Ms. Carol Chandler, Mr. Robert H. Oliver, Mr. Dennis Parnagian, Ms. Yrma Rico, Mr. Mark Ruof, Ms. Dora Westerlund Ms. Deborah S. Adishian-Astone, Ms. Paula Castadio, Mr. Keith Kompsi, Ms. Diana Sewell, Mr. Terry Tumey I Call to Order Ms. Ricchiuti called the meeting to order at 3:07 p.m. II Approval of Agenda It was moved by Mr. Kissler, seconded by Mr. Wishon, and carried to approve the agenda. III Presentation Director of Athletics Director of Athletics Terry Tumey said the values of the athletic program are concentrated on comprehensive excellence. They are teaching student athletes to be great students in the classroom and to be leaders in the classroom. In addition, they strive to develop future leaders in the community. They hope for success on the field of play, not only on the scoreboard, but in building character and leadership. He said Fresno State has done a great job of developing leaders and relying on its community to invest back into the University, indicating that is not prevalent throughout the NCAA.

2 Page 2 Tumey said future challenges include national consideration of compensation for student athletes and funding mechanisms, while holding true to our values of serving our athletes in the best way possible. Tumey announced new athletic staff members include Interim Deputy Athletic Director Meredith Jenkins and Senior Athletic Director for Development Tim Collins. Tumey is researching development opportunities and the highest priority is student scholarships and the Student Athlete Village. He emphasized it is a true investment in the student athlete experience and will be a home for all athletes where they can be supported academically and in their health and well-being. IV Approval of the Consent Agenda A. Minutes of June 7, 2018 B. Shirley Brinker Revocable Trust C. Acceptance of Gift in Kind Donations D. Donation of VNR II to University It was moved by Mr. Laval, seconded by Dr. Hanson, and carried to approve the Consent Agenda, including: 1) minutes of the June 7, 2018 meeting; 2) delegation of authority to the dean of the library to decide where the proceeds of the Shirley A. Brinker Revocable Trust should be spent in the library; 3) gift-in-kind donations of $438, to the University and $22, to the Agricultural Foundation; and 4) donation of VNR II to the University at a total cost of $1,007,443. Of that amount, $950K ($770K non-state funds and $180K state funds) was for VNR II and approximately $60K ($50K non-state funds and $10K state funds) was for pool reconstruction. Donations in the amount of $20K were received for the project V President s Report Dr. Castro handed out an informational document introducing all current Cabinet members and said Cabinet members will be attending the annual board dinner following this meeting. He indicated the search for Provost will launch next Monday. He thanked Ms. Eaton for agreeing to serve on the search committee. Dr. Castro shared that Fresno State began its 108 th academic year a few weeks ago and has a record student enrollment of over 25,000. He presented a slide that shows total enrollment Fall 2013 to Fall More than 30,000 applications were received for this Fall semester, despite the increase in academic standards, with 26,000 of those being freshmen and transfer students. Approximately 5,700 new students and

3 Page 3 2,000 graduate students were enrolled this year. Dr. Castro said the minimum grade point average for Spring 2019 has been raised to 2.75 for community college transfer students. Four years ago it was 2.0. Over 300 new tenure-track faculty have been hired since 2013, including 57 this Fall. Dr. Castro said the new faculty have strong credentials and have connections to the Central Valley region. The Institute for Media and Public Trust, created this Fall with Jim Boren serving as Executive Director, is working to find solutions to the fake news crisis and bridge the trust gap between news consumers and media outlets. They held their first event, focused on the First Amendment, a few weeks ago. Presidential Lectures Series Dr. Castro indicated he is recruiting speakers, possibly Condalisa Rice, to speak for the series. This Fall they plan to bring back Robert Costa, political reporter for The Washington Post and NBC News political analyst. The next Community Forum will be on October 23 rd at 5:30 p.m. in Madera. The Madera County Superintendent of Schools will be attending. Comprehensive Campaign Dr. Castro shared that he believes all the groundwork has been completed to position the campaign for success. He thanked everyone involved for their work and said the campus is on the rise, including increased student enrollment, enhanced faculty recruitment, and community support. Dr. Castro said planning is moving forward on the New Student Union. He indicated it will be primarily funded with student fees, but there will be private funding and a campaign to raise private funds including a naming opportunity. VI Committee Reports A. Audit Committee Annual Report Mr. Stephenson said the Audit Committee is recommending approval of the Annual Report as presented by Moore Grider & Company. He said the Report was an unmodified (clean) opinion. There were no material weaknesses or significant deficiencies. It was moved by the Audit Committee, seconded by Mr. DiBuduo, and carried to approve the Annual Report.

4 Page 4 B. Budget Committee 1. Recommendation to Fund 50% of the ADVANCE Database Upgrade Ms. Astone said the Ellucian Advance is a donor and prospect management system designed for higher education. The database manages and tracks all philanthropic donors to Fresno State from all entities (Fresno State Foundation, Ag One Foundation, Fresno State Alumni Association, Bulldog Foundation, Ag Foundation and Associated Students Inc.). The software allows them to: House over 315,000 alumni, friend, corporation/foundation records and contact information Process, receipt and track donor giving and history Capture select donor interests and campus involvement Record all donor and prospect related cultivation and stewardship activities Run queries and reports to track fundraising progress and analyze data for future asks Generate donor and prospect lists for targeted fundraising and event invitations Interface with several other fundraising software tools Ms. Astone indicated all other CSU sister campuses in Tier 3 (Fullerton, Long Beach, Northridge, San Francisco, San Jose, and San Luis Obispo) use this same database except for San Diego State University who is upgrading to a newer Ellucian platform. The Ellucian Advance database needs to be upgraded to the most current version. It is anticipated the upgrade will take 12 months. The project is scheduled to begin January 2019 and will span two fiscal years (FY and FY ). The total estimated cost for the upgrade is $400,000. It is proposed that the University and Foundation share the investment, each funding $200,000. It was moved by the Budget and Development Committees, seconded by Mr. Smittcamp, and carried to approve to Fund 50% of the ADVANCE Database Upgrade at a cost of $200,000. Ms. Castadio thanked the Board for their support of the database, which will serve them for the next ten years.

5 C. Development Committee 1. President s Circle for Excellence Update Page 5 The President s Circle for Excellence fund balance was at $84,296 as of August 31, 2018, against a goal of $375,000. There were 52 donors, an increase of 48.6% over the same time last year. 2. Donor Thank-You Program Ms. Nalchajian-Cohen routed the list for Board members to sign up to thank donors. She thanked those who have previously written, called or ed donors and indicated she has had positive feedback from donors receiving the acknowledgements. 3. Stewardship Connection Update Ms. Nalchajian-Cohen handed out the Stewardship Connection assignment list. She said several Board members have connected with their assigned college and she encouraged everyone to reach out. She asked members to contact her if they want to make any changes to the assignments. Ms. Nalchajian-Cohen was happy to announce that approximately 63,000 pounds of food were raised for the Student Cupboard during the Feed the Need event. She said student athletes volunteered the entire day and were extremely helpful and enthusiastic. She gave a special thank-you to Mary Castro for her tireless work in greeting donors. D. Governance Committee 1. Revised Partnership Agreement (Board Roles and Responsibilities) Ms. Diener said the Governance Committee is recommending the Partnership Agreement be revised and retitled to Board of Governors Roles and Responsibilities as follows: Fresno State Foundation Board of Governors Roles and Responsibilities 1. All new members will attend a board orientation at the onset of their initial term; 2. Develop a thorough knowledge of the University s mission, strategic priorities, opportunities, and challenges;

6 Page 6 3. Review Board and Committee agenda packets prior to each meeting and actively participate in Board and Committee discussions; 4. Set an example by giving annually at a leadership level you deem appropriate and by actively participating in the fundraising and stewardship process; 5. Ensure the work of the Foundation is aligned with the University s Strategic Plan; 6. Accept the fiduciary responsibilities of being a Board of Governor and adhere to Foundation policies and practices; 7. Advocate on behalf of the University and Foundation when appropriate; 8. Work collaboratively and support the campus president, senior administrators, and Foundation staff; 9. Conduct the Board s business in an exemplary fashion and periodically assess the performance of the board, its standing committees, and its members; 10. Hold in absolute confidence information not a matter of public record. It was moved by the Governance Committee, seconded by Mr. Smittcamp, and carried to approve the Board of Governors Roles and Responsibilities. E. Investment Committee 1. Goldman Sachs Investment Report as of June 30, 2018 Mr. Wishon gave an update on the Foundation s endowed and non-endowed portfolios as of June 30, He indicated ending balances were as follows: the total of the endowed portfolio, excluding the Student Managed Investment Fund (SMIF), was $142,936,781 (6.09% return for 12 months ended 6/30/18); market value of the non-endowed portfolio was $39,334,454 (6.08% return for 12 months ended 6/30/18); and SMIF market value was $3,644,174 (8.52% return for 12 months ended 6/30/18). Mr. Wishon said the Investment Committee has agreed to a transition plan to a more aggressive asset allocation. He indicated they are transitioning over eight stages in 24 months (unless markets provide an opportunity and the Investment Committee resolves to accelerate). This transition will increase the expected volatility of the portfolio from approximately 9% to above 11% and it will increase the estimated mean return from 6.9% to 7.53%. Mr. Wishon said the New California Ventures, LLC listened to presentations by Five Microns and Crated with Love, both of which are progressing and doing well.

7 Page 7 VII VP for University Advancement Report 1. Development Update Ms. Castadio reported that in there were 9,968 donors (9% increase from ) and a total $22,441,035 raised (22% increase from ). They exceeded the overall goal of $20 million by 12%. The goal is $24 million. As of August 31 st the year-to-date total raised was $2,225,369. Ms. Castadio presented priorities and goals for each of the colleges. Ms. Castadio said Day of Giving is on November 1, She presented talking points for members to use to help get the word out. Last year they raised $424,000 in 24 hours. They hope to raise $500,000 this year. 2. Comprehensive Campaign Update Ms. Castadio indicated they have been working with Marts & Lundy over the past six months and have completed the Campaign Readiness Assessment and Capacity Analysis Report. In addition, they conducted feasibility interviews, an online survey to alumni, and finalized a Campaign Planning Report. They held two campus forums to get faculty/staff feedback on campaign themes and they met with internal leaders. Ms. Castadio said the quiet phase of the campaign launched on July 1, 2018 and is expected to last two to four years, or until 50% of the $250 million goal has been raised. The Development team is experienced and is identifying top prospects to meet with and ask them to make transformational gifts to help provide seed money for the public phase. The campaign should last approximately eight years and they hope to celebrate campaign success in June Campaign themes (tied to the University s Strategic Plan and its mission) for student success include: Access, affordability and success Developing the whole student Real-world learning and impact Connecting to community

8 Page 8 University leadership has been asked to develop Bold ideas for the campaign. Criteria and assessment tools have been created to decide what Bold concepts will be brought forward in the campaign. Facility and program priorities will be determined by January 2019 and will evolve throughout the campaign. The Campaign Leadership structure is as follows: o The University President will lead the campaign. o The Foundation Board of Governors works in partnership with the President to achieve Campaign success. The Development Committee meets as needed to support University Advancement in providing guidance on fundraising, policy and philanthropic board engagement. o The President s Campaign Leadership Council includes the President, Campaign Co-chairs, Foundation Board Chair, Foundation Executive Director, Foundation Development Committee Chair, community leadership volunteers, VP for University Advancement, AVP for Development, Director of Athletics, Alumni Association, and Advancement Services Executive Director. The Council supports the President in spearheading Campaign planning and soliciting. They will meet quarterly. o The Vice President for University Advancement supports the President, President s Campaign Leadership Council, Internal Campaign Leadership Committee, and the Foundation Development Committee. o The Internal Campaign Leadership Committee includes the Provost, VP for University Advancement, AVP for Development, Advancement Services Executive Director, Deans, VP for Student Affairs, Director of Athletics, Development team, and an internal lead from each major initiative. They support the planning and implementation of the Campaign. They will meet three times per year. Ms. Castadio presented a review and projection of Campaign gifts and expenses. She said previous campaign ( ) gifts and commitments totaled $214,222,191 with an annual average of $26,777,774. In the four years since the last campaign, gifts and commitments totaled $77,272,598 (average of $19.3 million per year) The upcoming campaign goal is $250 million with a projected annual average of $31,250,000.

9 Page 9 Expenses for the previous campaign totaled $57,112,016 (average of $7.1 million per year). The four years since that campaign ended had total expenses of $34,408,503 (average of $8.6 per year). Total projected expenses for the upcoming campaign are $89.5 million (average of $11.2 million per year). Ms. Castadio presented Campaign Return on Investment (ROI) averages comparing the CSU average and Fresno State. She indicated the CSU average the last four years was $6.88 while Fresno State s average during that same period was $5.28. During the previous campaign, Fresno State s ROI was $5.96 and is projected to be $6.65 for the upcoming campaign. The anticipated cost to raise a dollar for the upcoming campaign is $0.15. VIII New Business A. Resolution to Endorse Fresno State Comprehensive Campaign II Mr. Ricchiuti referred to the following resolution: WHEREAS, the s mission is to advance the University s objectives by encouraging philanthropy, inspiring leadership and promoting fiscal accountability for the primary purpose of promoting and advancing the educational services of California State University, Fresno WHEREAS, the Fresno State Comprehensive Campaign led by the University President is concentrated on raising funds for academic, athletic and campus wide initiatives that support the University s Strategic Plan and its mission to boldly educate and empower students for success, and through this effort leads to higher and sustainable giving levels and donor involvement, and WHEREAS, the Foundation Board of Governors and its committees have reviewed, discussed and provided input on proposed plans to conduct the next comprehensive campaign which is currently projected to occur over the next eight years, and THEREFORE BE IT RESOLVED that the Foundation Board of Governors fully endorses and supports the University s plan to launch a comprehensive campaign with a working goal of $250 million and is committed to championing and financially supporting the campaign, and

10 Page 10 BE IT FURTHER RESOLVED that the University President and the Vice President for University Advancement will keep the Board apprised of the campaign status and success at set meetings of the board and its committees, and BE IT FURTHER RESOLVED that the University President and the Vice President for University Advancement will work in partnership with the board to authorize all significant decisions of sufficient importance that may require board action. It was moved by Mr. DiBuduo, seconded by Ms. Salazar, and carried to approve the Resolution to Endorse the Fresno State Comprehensive Campaign II. IX Reports A. Chair No report. B. Executive Director No report. X Items from the Floor There were no items from the floor. XI Closed Session The Board did not go into closed session. XII Adjournment The meeting was adjourned at 5:10 p.m. Respectfully submitted, JOSEPH I. CASTRO, SECRETARY L. Diana Sewell, Executive Secretary Drafted: ; Distributed: ; Approved: Vinci Ricchiuti, Chair