Celebrating Generosity: A Financial Overview

Alumni and friends of the UW showed their dedication in record-breaking numbers in fiscal year 2006, providing a wellspring of support to nourish programs, reward excellence in teaching and scholarship, and put discovery within the reach of our students and faculty. Your generosity this past fiscal year provided both immediate and long-term resources to help the UW fulfill its mission of research, education and service to society. We extend our deepest thanks for each of your contributions during this past fiscal year.

Fiscal year highlights
In the fiscal year ending June 30, 2006, the University received $323,005,417 in private voluntary support ($207,744,231 in gifts and $115,261,186 in grants). Contributions were received from 97,876 donors, of whom 52 percent were alumni, 43 percent were friends of the University, including corporations or foundations, and four percent were faculty and staff.

You directed your gifts to people and programs across the UW’s three campuses (see table below). In fiscal year 2006, UW Medicine was the top recipient of private support, with nearly $109 million in private gifts and grants, followed by the College of Engineering with $38.9 million, and the School of Law with $36.2 million. Support to President’s funds totaled $711,430, providing the University president with unrestricted resources to meet emerging needs and priorities, or to reward the accomplishments of our students and faculty.

Annual giving
Annual gifts from alumni and friends provide significant resources for the University.

In the fiscal year ending June 30, 2006, online giving through www.uwfoundation.org provided substantial support, with more than 3,900 contributors giving $2,171,989 to more than 530 UW funds.

Gifts for endowment build better futures
In designating that gifts be used for endowment, contributors provide permanent resources to support areas of personal interest. Private endowed funds also ensure that investments in the University will continue to yield the greatest impact now and in the years ahead. The University’s 2,248 individual endowed funds are pooled in the University’s Consolidated Endowment Fund (CEF). During the 10-year period ending June 30, 2006, the value of the UW endowment has grown from $396 million to $1.7 billion. In that period, the 10-year average annual return of the CEF was 11.2 percent, placing UW in the top half of the 50 largest college and university endowments as measured by Cambridge Associates. The total return of the CEF in Fiscal year 2006 was 17.7%.

Total Private Voluntary Support
Contributed to the University of Washington and the University of Washington Foundation
July 1, 2005 – June 30, 2006

In fiscal year 2006, the CEF distributed $70 million to areas designated by contributors, including support for students, faculty and programs.

The annual distribution policy of the CEF, five percent of a three-year moving average market value, was set by the Board of Regents in 1988. This spending policy determines how much will be distributed to support programs and provides programs with a predictable revenue stream during volatile markets.

Success of the UW Matching Initiative
The University has increased the level of permanent funding for scholarships, fellowships, professorships and chairs, in part through the UW Matching Initiative, launched in January 2004. As of June 30, 2006, more than 263 new endowments had been established or enhanced through the Initiative, which uses a matching pool of resources from the University and a group of private contributors, the Founders (see story p. 32), to further enhance investments for endowment. At the close of fiscal year 2006, the UW had received more than $132 million for endowments in support of students and faculty as a result of the Initiative, exceeding its initial goal of $120 million.

Faculty Staff Retiree Campaign for Students
The Matching Initiative has also been integral to the success of the Faculty-Staff-Retiree Campaign for Students, launched in May 2005.

The availability of matching funds to enhance endowments in support of students has enabled UW employees, current and retired, to support students and to increase their investments in named endowments honoring esteemed colleagues or others. By the close of the fiscal year 2006, 219 UW employees had established 221 new endowments and contributed $3.2 million in endowed support (including UW matching funds) for UW students.

Campaign UW: Creating Futures
Campaign UW: Creating Futures, an eight-year, $2 billion dollar comprehensive fundraising effort to provide essential resources for the UW’s students, faculty, programs and facilities, got underway in June 2000 under the leadership of the UW Foundation, a volunteer organization that promotes private philanthropy at the University. “The success of Campaign UW is due to the extraordinary generosity of our alumni and friends who have made significant commitments to increasing opportunities for education, research, and service to society,” says Campaign UW Chair William H. Gates (’49, ’50). “The University — and the world — will benefit for generations to come.” As of June 30, 2006, gifts to Campaign UW totaled $1.79 billion, including $1.16 billion in private gifts and pledges and $627.8 million in private grants. Contributions came from 217,121 donors, including 103,381 alumni, 99,323 friends, 1,225 foundations, 11,373 corporations and 1,819 organizations. Campaign progress to date for the UW’s individual schools, colleges, programs and units is indicated on the facing page.

To learn more about giving
More information about supporting the University of Washington through Campaign UW: Creating Futures is available through the UW Foundation Web site at www.uwfoundation.org, or by phone at 206-685-1980; toll-free at 1-800-326-7566. More information about the performance of the Consolidated Endowment Fund is available through the Office of Development and Alumni Relations or by contacting the Treasury Office of the UW Board of Regents at 206-685-1822. Performance of the CEF is reported on a fiscal year basis. The UW Endowment Report outlines investment and spending policies for the CEF, and contains audited financial statements for the University, as well as other detailed financial information. This report is published in November by the Treasury Office and is made available upon request.

Campaign UW Progress by Constituency
July 1, 2000 – June 30, 2006

Return to Report to Contributors 2005-06