Washburn Endowment Association - How Much Does it Cost to Raise Funds?
As the 2007 Faculty/Staff Annual Giving Campaign gets underway, it is appropriate to provide potential donors with more information regarding the Washburn Endowment Association (WEA).
Washburn Endowment Association (WEA) Reporting Requirements
As required each year, WEA filed a Form 990 (pdf) with the Internal Revenue Service. In addition to this annual filing requirement, parts of the FY 06 annual audit of WEA were included within Washburn University's June 30, 2006 annual audit report (pdf) (see pages 22,26,27 and Note 11 on pages 47-54). Missing from the audit report is WEA's Statement of Cash Flows.
In spite of all this reporting, it is very difficult to get the information that most people want to know. For some information, a person needs a bit of luck being in the right place at the right time.
Fundraising Efforts - What does it Cost?
Annual Employee Compensation
The annual salary of each WEA employee is not public information. However, compensation for the WEA President and the five highest paid employees is reported to the IRS on the annual Form 990.
| Employee | FY 04 Salary | FY 05 Salary | FY 06 Salary |
|---|---|---|---|
| Mazachek | $151,525 | $160,564 | $168,642 |
| Stogsdill | 0 | 83,325 | 82,885 |
| Martin | 90,000 | 93,197 | 97,923 |
| Hunter | 90,000 | 93,197 | 97,923 |
| Adair | 78,899 | 82,060 | 85,326 |
| Ahrens | 77,845 | 81,278 | 86,155 |
The total payroll cost for WEA's 41 employees in FY 06 was over $1.8 million, as reported on the 2005 Form 990.
Operating Costs
The following information is a summary of the FY 06 operating expenses reported to the IRS on the 2005 Form 990.
| Description | FY 05 | FY 06 | Change |
|---|---|---|---|
| Payroll Costs | $ 1,880,070 | $ 1,836,420 | $ - 43,650 |
| Consultants | 527,907 | 562,146 | + 34,239 |
| Occupancy | 299,902 | 296,875 | - 3,027 |
| Staff Costs | 333,630 | 382,998 | + 49,368 |
| Marketing | 136,309 | 190,884 | + 54,575 |
| subtotal | $ 3,177,818 | $ 3,269,323 | $ + 91,505 |
| WU Support | 6,330,335 | 7,215,581 | + 885,246 |
| Total | $ 9,508,153 | $10,484,904 | $+ 976,751 |
Fundraising Efforts - How Much is Raised? How Much is Collected?
The FY 06 operating results indicate that WEA raised over $9.7 million from public support, while the pledges receivable increased by $3.2 million. This could indicate that cash collections from fundraising actually decreased from the prior fiscal year. The cash balance decreased by over $3.6 million. During the same period, the amount due to WU from WEA increased from $3.5 million to $4.9 million.
Fundraising Efforts - Who Benefits?
WEA provides support to Washburn University in three areas - students, faculty & staff, and major construction projects. Washburn University's annual financial report indicates that the Endowment Fund received $145,290 in cash and the scholarship funds increased by $3.8 million. Contributions for the major construction projects are not identified in the annual reports.
It is impossible to tell how WEA is actually performing. Fundraising goals and actual results are not published. So, the reports provide more data than information.
Fundraising Status - By Project
Although information regarding fundraising by project is difficult to obtain, WEA has issued the following information to the WU Board of Regents.
As of 09/30/06
| Purpose | Total | Received | Pledges |
|---|---|---|---|
| Carole Chapel | 375,443 | 220,191 | 155,252 |
| KTWU Digital Campaign | 1,876,622 | 1,866,622 | 10,000 |
| Living Learning Center | 3,193,615 | 3,158,615 | 35,000 |
| Mulvane Art Museum | 1,877,842 | 1,845,017 | 32,825 |
| Nursing Lab Renovation | 267,261 | 236,810 | 30,451 |
| White Concert Hall | 982,019 | 982,019 | 0 |
| Stoffer Science Building | 692,927 | 100,502 | 592,425 |
Athletics |
|||
| Facility Enhancements | 96,480 | 73,480 | 23,000 |
| Baseball Stadium | 166,255 | 107,141 | 59,113 |
| Football Stadium | 2,416,035 | 2,310,505 | 105,530 |
| Lee Arena Renovation | 1,009,318 | 860,108 | 149,210 |
| Yager - Field Resurfacing | 287,500 | 42,791 | 244,709 |
| Yager - Track Resurfacing | 128,650 | 87,909 | 40,741 |
Former Faculty/Staff Annual Giving Campaign Results
The actual distribution of the funds collected from the Annual Giving Campaign may surprise you. Page 8-16 (pdf) of Washburn University's FY 06 Financial Report indicated that over $90,000 of the funds raised were distributed to senior staff reporting areas. Before donating funds, insist on more accountability for the funds that you contributed last year.