LeaderNotes
A newsletter for Foundation directors and friends of higher education in Maryland

Letter from the President
 

Dear Friends and Colleagues,

 

It seems like just yesterday that the USM federated capital campaign began back in July 2004, and we are thrilled to announce that we not only met our expectations, but we surpassed them! Our original goal of $1.7 billion was exceeded by $400 million to total $2.1 billion. We are continually impressed with the high caliber of advancement professionals we have throughout the System. Because of their hard work and our donors' dedication, our institutions have been able to establish new scholarships, buildings, professorships, and more. Now we seek to sustain and build on these successes.

 

As we move into a new era, we are privileged to have Mickey Dowdy join us as the chief development officer and vice president of the University of Maryland, Baltimore. Mickey comes to UMB with over 30 years of advancement experience, and will certainly be an asset to us as we catalogue our campaign data and look to the future.

 

Here at the USM Foundation office, we have been keeping busy. Sam Gallo, our chief investment officer, recently spoke to undergraduate students at the Robert H. Smith School of Business at the University of Maryland, College Park to discuss endowment investment management and future career options. USMF Board member John J. Allen invited me to facilitate a conversation at the Community Foundation of Eastern Shore as they undertake their new strategic planning process. We are broadening our horizons and forging new connections as we expand the ways in which the USM Foundation can contribute to our larger community.

 

You may recall in our last newsletter we asked you to contact your representatives and elected officials to urge them to preserve the charitable deduction. The charitable deduction remains untouched for the moment, though we will need to remain vigilant.

 

Finally, there has been cause for celebration these days - the Baltimore Ravens took home the Vince Lombardi trophy. It was wonderful to watch our favorite underdog beat all the odd and in a sure sign of spring, pitchers and catchers returned to spring training this week.

 

As always, please contact me at raley@usmd.edu with any questions or comments.

  

Sincerely,

  

Leonard R. Raley

Campaign Progress Through 12/31/12

Institution

Announced

Goal

12/31/12

Bowie

11/08

$15M

$13.9M

Coppin

10/07

$15M

$9.6M

Frostburg

10/08

$15M

$19.7M

Salisbury

6/06

$35M

$49.8M

Towson

11/06

$50M

$59.9M

UB

3/09

$40M

$45.9M

UMB

10/07

$650M

$665.9M

UMBC

9/06

$100M

$142.1M

UMCES

11/07

$8M

$8.1M

UMCP

10/06

$1B

$1.02B

UMES

9/06

$14M

$16.3M

UMUC

2/08

$26M

$29.3M

USM Federated

-

$1.7B

$2.1B

Investment Performance Through 12/31/12 

 

Endowment %

S&P 500 %

Composite Benchmark %

80/20 %

Dec. 2012

0.6

0.9

1.3

1.8 

FYTD 2013

3.6

6.0

5.6

 8.3

CYTD 2012

9.6

16.0

10.5

13.9

3 Yr AACR

8.0

10.9

5.6

6.8 

5 Yr AACR

-0.8

1.7

-2.7

0.9 

Michael B. Dowdy Named New VP at the University of Maryland, Baltimore 

 

Michael B. "Mickey" Dowdy came on board as chief development officer and vice president for the University of Maryland, Baltimore (UMB) in January 2013. Dowdy has over 30 years of advancement experience, most recently at East Carolina University where he was the vice chancellor for university

advancement, and has played a significant role in developing successful capital campaigns, securing leadership gifts, and working with various boards at his previous institutions.

 

At UMB, Dowdy will be responsible for creating and overseeing development standards policies; metrics; best practices; and management and administration of the University's development activities. He also serves as the president and CEO of the UMB Foundation.

  

To learn more about Mickey Dowdy, please visit the following page.

Sam Gallo Visits UMCP Smith School of Business Finance Fellows

 

Earlier this month, USM Foundation CIO Sam Gallo visited the Finance Fellows at the Robert H. Smith School of Business at the University of Maryland, College Park. Sam introduced students to the art of endowment investment management, while also educating them on asset management career options. The event was positively received by faculty, staff, and students, and is something Sam had a great time doing. Interacting with and educating the population we serve is a special treat for staff members at the USM Foundation!

Planned Giving Seminar Presents Win-Win Opportunities

 

On February 12th, Bruce Bigelow and Carol Kolmerten, principals at Charitable Development Consulting of Frederick, Maryland, conducted a planned giving seminar for major and planned gift officers across the USM at the Chancellor's residence, Hidden Waters.

 

Defining planned gifts broadly as any gift that takes more than simply writing a check, the presenters described new and innovative ideas on how development officers can use planned giving techniques to simply and effectively meet the donor's needs and increase giving to our institutions. An emphasis was made on reducing tax liabilities and improving life income for donors and their dependents.

 

The team provided scenarios that led to successful planned gifts for various universities, such as: how two business partners transferred ownership tax effectively to the next generation; how a donor used planned giving to tax-effectively move into a retirement community with a high entry fee; how a woman increased life income and reduced her tax liabilities on the sale of a second home; and how a widower was able to provide a life income for a second wife in the event that she survived him.

 

For more information on planned giving or the seminar, please contact Pamela Purcell at 301-445-2721 or ppurcell@usmd.edu.

SECU Partners with University System of Maryland to Establish Scholarship Program for Transfer Students

 

SECU - Maryland's largest state-chartered financial cooperative - will present a $50,000 gift to the University System of Maryland to be awarded to students transitioning from one of the state's two-year community colleges to any of USM's 11 undergraduate-degree granting institutions and two regional higher educational centers. The USM will award a total of ten $5,000 scholarships to graduates of Maryland's 14 community colleges. Scholarship awards will be based on academic merit and demonstrated financial need, and applicants or their families must also be SECU members.

The Future of Higher Education
 

A hot topic in higher education is the rise of Massive Open Online Courses (MOOC). Initially, universities were using MOOCs 

as a way to offer classes to the general public who wanted in-depth knowledge of a particular subject. Several universities have found their experiences greatly enriching in respect to the kind of dialogue MOOCs offer, since the students come from a wide range of backgrounds, cultures, and income levels. 

 

It is already clear that MOOCs are changing the way education can be transformed and expanded, and the trend is shifting to offering MOOCs as courses for credit. Thanks to a $1.4 million Gates Foundation grant, the USM's partnership with Ithaka S+R will allow us to test the feasibility of moving in that direction and assessing how well online learning platforms are working. The USM is innovative in many ways, and this is just another bold step for our institutions as we look to the future of higher education. 

 

Please click on the respective links to learn more about MOOCs and the USM's study evaluating them into our higher education framework. Chancellor William 'Brit' Kirwan can be seen on Maryland Public Television speaking about MOOCs at the 21:55 minute mark as well.

February 2013
Vol. 7, Iss. 1
In This Issue
Campaign Progress
Investment Performance
Michael B. Dowdy Named VP at UMB
Sam Gallo Visits Finance Fellows
Planned Giving Seminar Presents Win-Win Opportunities
SECU Creates USM Scholarship Program
The Future of Higher Education
USM News Briefs
Trends in Philanthropy
USM News Briefs   

 

UMUC Establishes Educational Alliance with Smithsonian

 

University of Maryland University College has signed an agreement with the Smithsonian Institution to offer its 6,000 employees, their spouses, and dependents the opportunity to study and complete degrees at UMUC. This is the first formal education alliance for the Smithsonian Institution, and will allow employees and their families to take advantage of UMUC's broad educational offerings in a wide range of fields, rather than a few specific programs as has been done in the past.

 
 
 

Salisbury University Will Offer Two Academic Programs at Alternate Maryland Schools 

 

Salisbury University will be offering two new degree programs at regional higher education centers across Maryland. The Southern Maryland Higher Education Center in St. Mary's County will offer accredited bachelor's and master's degrees in social work from Salisbury, while the Eastern Shore Higher Education Center in Wye Mills will allow students to pursue a bachelor's in interdisciplinary studies from Salisbury. Both programs will be offered starting this fall. 

  

Bowie State University Ramps Up Cybersecurity Program

 

Bowie State University students will soon receive training needed to enter the high-demand cybersecurity field and help close the nation's workforce gap, thanks to a $453,000 grant from the National Nuclear Security Administration to establish a partnership of Historically Black Institutions. The one-year pilot project will provide Bowie State professors with intensive training in cybersecurity techniques to develop curriculum that will meet the requirements of industry and government employers. 

Trends in Philanthropy 


A Yale University study found that small gifts given in thanks for a donation actually reduce future giving. In six experiments conducted by researchers, the finding proved true across multiple variables, including familiarity, desirability of the gift, value of the gift, and type of charity. The experiment focused specifically on the effectiveness of small thank-you gifts, such as a pen or coffee mug. The researchers say the gift creates ambiguity as to whether or not the donor's money is supporting the nonprofit organization or is quid pro quo.

  

IRA Charitable Rollover Returns 

 

As part of the "fiscal cliff" deal, Congress resurrected the IRA charitable rollover that expired at the end of 2011. The rule allows investors 70 or older to transfer as much as $100,000 a year from an individual retirement account directly to a qualified charity without having to count any of that transfer as taxable income. 

 

2012 Returns on Educational Endowments Fell Sharply

 

Endowments at 831 U.S. colleges and universities generated an average return of -0.3% in the 2012 fiscal year, a steep decline from 2011's average return of 19.2%. The largest endowments (assets in excess of $1 billion) produced the highest FY2012 returns, averaging 0.8%, while the smallest endowments (assets between $51 million and $100 million) returned 

-1.0% on average, while ours was 0.7%. Click through to read more.

Jess Gill

Editor, LeaderNotes

301-445-2743

jgill@usmd.edu