Approved 6-7-18 A meeting of the Fresno State Foundation was held on March 22, 2018 at 3:00 p.m. in the Foundation Board Room located at 4910 North Chestnut. The following members were present: Ms. Vinci Ricchiuti, Chair; Dr. Joseph I. Castro, Ms. Carol Chandler, Ms. Octavia Diener, Dr. Eric Hanson, Mr. John E. Horstmann, Ms. Maurine Jones, Mr. Hal Kissler, Ms. Annette LaRue, Dr. William M. Lyles, Mr. Chris Morse, Ms. Debra Nalchajian-Cohen, Mr. Ken Newby, Mr. Robert H. Oliver, Mr. Dennis Parnagian, Mr. Mark Ruof, Ms. Lorraine Salazar, Mr. Bill Shaughnessy, Mr. Bill Smittcamp, Mr. George Soares, Mr. Ray Steele Jr., Ms. Dora Westerlund, Dr. Rick Whitten, Mr. A. Emory Wishon III Members absent: Also Present: Mr. Darius Assemi, Mr. Nat DiBuduo, Ms. Joan Eaton, Mr. Larry Johanson, Mr. Claude Laval III, Mr. Jay Mahil, Dr. Joan Otomo- Corgel, Ms. Yrma Rico, Ms. Kim Ruiz-Beck, Mr. Richard Spencer, Mr. Kyle Stephenson, Mr. Kevin Sweeney Ms. Deborah S. Adishian-Astone, Ms. Paula Castadio, Mr. Markel Quarrels, Mr. Keith Kompsi, Mr. John Melikian, Ms. Diana Sewell, Mr. Don Fellows, Kuyera Nycole Brown (student) and Victor (student) I Call to Order Ms. Ricchiuti called the meeting to order at 3:05 p.m. II Approval of Agenda It was moved by Dr. Hanson, seconded by Mr. Steele, and carried to approve the agenda. III Approval of the Consent Agenda A. Minutes of December 14, 2017 B. Ratify Approval of Endowment Payout 2018-19 C. Resolution to Open New Investment Account D. Acceptance of Gift in Kind Donations E. Additional Appointments to the New California Ventures, LLC Executive Committee
Page 2 It was moved by Mr. Steele, seconded by Ms. Diener, and carried to approve the Consent Agenda, including the following: 1) Minutes of the December 4, 2017 meeting, 2) The 2018-19 payout of $7,598,209 including: the 2017-18 Endowment Administrative Fee of $1,561,000; $986,000 to President s Honors Scholarships; $590,272 for other Renewable Scholarships; $1,755,000 for Non- Renewable Scholarships; and $2,705,937 for Programs, 3) The resolution to open new TD Ameritrade Investment Account for the Student Managed Investment Fund: RESOLVED, that the President (Chair), Vice President (Vice-Chair), and the Treasurer of the corporation (or nonincorporated association), or any one of such officers are hereby fully authorized and empowered to open a brokerage account, transfer, endorse, sell, assign, set over, and deliver any and all shares of stock, bonds, debentures, notes, evidences of indebtedness, or other securities (including short sales) now or hereafter standing in the name of or owned by this corporation (or nonincorporated association), to purchase stocks, bonds, debentures, notes, evidences of indebtedness, and other securities (on margin or otherwise), and to make, execute, and deliver, under the corporate seal of this corporation, any and all written instruments necessary or proper to effectuate the authority hereby conferred. 4) Acceptance of gift in kind donations of $401,858.67 to the University and $6,300 to the Ag Foundation, 5) The appointment of Mark Ruof and Bill Shaughnessy to the New California Ventures, LLC Executive Committee for a term beginning upon approval of this measure and expiring on June 30, 2020 (this is the expiration date of current members on the LLC Executive Committee). IV Committee Reports A. Audit Committee 1. Approval of Revised Charitable Gift Annuity Policy Ms. Astone referred to minor revisions being proposed to the Charitable Gift Annuity Policy. She said the Foundation accepts donations establishing CGAs with a maximum value of $250,000. Any CGA with a value of more than $250,000 may be issued and administered by the CSU Foundation in Long Beach. In addition, prior to the execution of the charitable gift annuity agreement, the Foundation s Gift Acceptance Committee will approve agreements of $200,000 or more. It was moved by the Audit Committee, seconded by Mr. Kissler, and carried to approve the revised Charitable Gift Annuity Policy as proposed.
B. Development Committee 1. President s Circle for Excellence Update Page 3 As of February 28, 2018, total revenue for FY 2018 is $670,457 against the goal of $350,000. There are 160 donors, compared to 165 at this time last year. Ms. Nalchajian-Cohen said the March Match Up benefits the Student Cupboard at Fresno State. Gifts to the Student Cupboard will be doubled dollar-for-dollar during the month of March. Ms. Nalchajian-Cohen reported that the Development Committee toured one of the recently renovated chemistry labs, and one that has not been renovated. She referred to a handout from the College of Science and Mathematics that details the impacts of renovation and includes a priority list of labs for renovation with the highest impact. Dr. Castro reminded everyone of the All Boards Reception being held on March 16 th. It will be held in the Student Health and Counseling Center and will highlight the renovations that took place recently at that facility. C. Governance Committee Ms. Diener referred to the committee minutes in the packets which includes Board member terms that are expiring on June 30, 2018. The Board Chair will contact those members to see if they wish to continue to serve. She said the Committee continues to vet prospective board members. There are currently two vacancies. Ms. Astone said the Governance Committee also reviewed the Partnership Agreement and looked at models from other institutions. They will continue to review and make revisions. D. Investment Committee 1. Goldman Sachs Investment Report as of December 31, 2017 Mr. Wishon referred to the endowment portfolio as of December 31, 2017. He indicated ending balances were as follows: the total of the endowed portfolio, excluding the Student Managed Investment Fund (SMIF), was $137,088,420 (a 5.52% return for 6 months ended 12/31/17); market value of the non-endowed portfolio was $42,735,253 (5.82% return for 6 months ended 12/31/17); and SMIF was at $3,763,734 (8.34% return for 6 months ended 12/31/17).
Page 4 Mr. Wishon said the Investment Committee had a discussion regarding the Foundation s current investment strategies, targets and endowment performance compared to other CSU Foundations. It was agreed to have Robert Devens run scenarios on the endowed portfolio with five (5) percentage points more of risk assets (taken from fixed income) and include likely changes in levels of return and risk. Mr. Devens will report back to the Committee. 2. New California Ventures, LLC Update Mr. Wishon reported that the LLC met with Dr. The Nguyen for a presentation on his updated Tremor Reduction Device. They approved funding not to exceed $275,000 in the Tremor Reduction Device with 10% equity, with the provision to veto a sale if the Foundation does not at least get their investment back. V President s Report Dr. Castro was pleased to announce that the students voted to approve a new student union. He said the referendum was student driven and well organized. Approximately 4,000 students voted with 67% approving. The Trustees approved the naming of the Viticulture and Enology building as the Vincent E. Petrucci Viticulture Building. A reception will be held on April 20 th. With mixed emotions, Dr. Castro announced that Dr. Lynnette Zelezny has been appointed President of CSU Bakersfield. He said it is a great opportunity for her, but she will be missed at Fresno State. The transition has begun and will officially happen in June. An interim provost will be appointed and a national search will commence in the Fall. Dr. Castro referred to the LA Times article regarding CSU admissions that was previously sent to the Board of Governors. He said Fresno State is in a group of six CSU campuses that are in such high demand that each of their programs has more qualified applicants than can be accommodated by current space and staffing levels. The other five have campuses in their vicinities so a student has multiple choices, but given Fresno State is the only one in this area it creates particular problems. He encouraged members to contact elected officials to ask them to fill the $171 million gap in the State budget and invest in the CSU. Dr. Castro said a search is under way for the new men s basketball coach and one will launch soon for the new Athletic Director.
Page 5 Dr. Castro brought forth campaign recommendations from Marts & Lundy for discussion. Discussion occurred regarding cost savings, efficiencies, liability concerns, gift assessment fees, and strategies/structures that will best benefit the University and the campaign. In addition, the Board discussed creating a funding model to cover the cost of the campaign, responsibilities of the Board during the campaign, and a possible review of the bylaws. VI VP for University Advancement Report A. Comprehensive Campaign Marts & Lundy Don Fellows gave a summary of the work that has been done over the past several months to prepare for a successful campaign. He reviewed Marts & Lundy s Campaign Readiness Report and Capacity Assessment. Mr. Fellows said the last campaign was completed in 2013 and raised $214 million. He indicated the primary goal of the proposed campaign is to increase the rate of annual (cash) fundraising by 100% or more to $30 million annually. In addition, they hope to grow investment in Development infrastructure to support and drive greater fundraising to support the growing need/demand, and the ultimate goal is to take Fresno State s culture of philanthropy to the next level. The purpose of the Campaign Readiness Assessment is to ascertain Fresno State s overall readiness to undertake a 7-8 year comprehensive campaign. They conducted 43 interviews, including 14 Foundation Governors. A total of 64 recommendations are included in the report and include key findings and recommendations. Marts & Lundy indicates the overall campaign readiness level is strong and recommends proceeding with the campaign. Mr. Fellows said the President and the Vice President for University Advancement (VPUA) will need to drive the campaign with top level relationships and solicitations and the Foundation Board will be critical to the success of the campaign. Ongoing professional training should take place for Development staff, Board of Governors, and Deans. They recommend an internal Campaign Steering Committee and a President s Campaign Leadership Council be created. Mr. Fellows said the Capacity Analysis Report will determine giving capacity based upon the philanthropic potential of Fresno State s 27,908 major gift prospects ($25K +), and calculates frontline staff necessary to meet the
Page 6 campaign goal. He indicated the result of the analysis shows that the campaign would likely raise from $170 - $250 million. He said there is capacity to raise between $200- $300 million, but staff would need to be added. B. February 2018 Development Totals Ms. Castadio presented fundraising totals by school/unit as of February, 2018. Year-to-date totals for all units (including Athletics) was $12,299,421. VII Reports A. Chair Ms. Ricchiuti encouraged members to contact her with questions and/or comments. B. Executive Director Ms. Astone said the February 2018 Financial Statement is being provided today instead of being emailed. She indicated the budget is tracking favorably. VIII Items from the Floor - There were no items from the floor. IX Closed Session - The Board did not go into Closed Session X Adjournment The meeting was adjourned at 5:10 p.m. Respectfully submitted, JOSEPH I. CASTRO, SECRETARY L. Diana Sewell, Executive Secretary Drafted: 4-4-18; Distributed: 5-31-18; Approved: 6-7-18 Vinci Ricchiuti, Chair