SHARE:
Higher Ed
A Watchful Eye: Lawmakers restrict public spending by university foundations
How Foundations Work
Florida’s 12 public universities get just 38% of their funding from state taxes, the Florida Lottery and tuition and fees, according to the Florida Board of Governors. The rest comes from a variety of sources, including athletics, federal research grants and donations collected by non-profit foundations, which raise, invest and manage money to pay for things like departmental scholarships, specialized research programs, named professorships and new buildings or equipment.
The foundations, also known as direct-support organizations, may oversee hundreds of millions of dollars in assets and employ dozens of people, including some with six-figure salaries. They rely on asset management fees and interest income to fund their operations. Traditionally, the universities they support also provide some employees and office space.
In addition, universities may have other direct-support organizations that help a particular department, such as athletics. The University of Florida has 18 direct-support organizations, including the Gator Boosters and Florida 4-H Club Foundation.
Presidential Pay
Foundation money typically is used to supplement the salaries of university presidents, whose state-funded pay is capped at $200,000.
Foundation Assets
The University of Florida Foundation is the largest public university foundation in Florida. Founded as the UF Endowment Corp. in 1934, it expanded in the 1950s to become the main fundraising arm of UF.
University Foundation Travel
Florida’s public university foundations spent more than $13 million on travel in the 2015-16 fiscal year. Most of the money went to trips for faculty members and students to conduct research, study abroad or attend conferences and conventions. About $2 million went to pay for the foundations’ own travel for fundraising.
See other stories from Florida Trend's July issue.
Get Florida Trend's July magazine – print or digital. Select from these options:
* offer valid for new subscribers only
