Giving FAQs
What is philanthropy?
What is the Office of University Advancement?
Why does VCU need to raise private money?
What is the difference between an unrestricted gift and a restricted gift?
What is an endowed fund?
What is the difference between a current scholarship and an endowed scholarship?
How do endowed funds support the university?
What is philanthropy?
Philanthropy is the effort or inclination to increase the well-being of humankind, as by charitable aid or donations.
What is the Office of University Advancement?
The Office of University Advancement at VCU exists to develop the financial resources necessary to achieve the five-part mission of the university:
- Learning
- Research
- Teaching
- Creative expression
- Public service
By building and strengthening relationships with individuals, corporations and foundations, the Office of University Advancement increases the number of donors and the level of donor support to the university.
The office includes the divisions of Alumni Relations, development (fundraising), Corporate and Foundation Relations, Prospect Research and Tracking, Donor Relations, Advancement Communications, Cash Operations and Advancement Services.
Why does VCU need to raise private money?
The percentage of VCU's total operating budget that is derived from appropriations from the commonwealth of Virginia is declining. Because VCU is committed to keeping tuition and fees at an affordable level, private gifts are needed to fill the gap.
The commonwealth does provide substantial support for VCU. Competing demands for state dollars, however, mean that less than 30 percent of VCU’s operating budget is provided by state appropriations. Because tuition and fees provide only another 33 percent of the budget, private gifts are increasingly important to VCU.
What is the difference between an unrestricted gift and a restricted gift?
Unrestricted gifts provide VCU with discretionary funds that can be used for a range of purposes, enabling the university to respond with flexibility to unexpected opportunities and changing circumstances. Unrestricted funds might be used for scholarships, developing academic programs, improving facilities or recruiting talented faculty members.
Restricted gifts include all money received by VCU that is earmarked for a specific purpose. Donors often give money with the intention of supporting a specific activity within the university, and VCU accepts the gift with the promise that the funds will be used according to the donor's wishes. Restricted gifts include donations from individuals, foundations and corporations, as well as research grants from various sources.
What is an endowed fund?
Endowed funds are invested by VCU to generate annual income in perpetuity for the purpose specified by a donor. When a donor makes a gift designated for an endowment, the principal of the gift is invested and a portion of the return is used each year to support the designated program. This portion, about 5 percent of the fund's market value, is called the payout. Any remaining money is added back to the endowment so that it continues to grow and to provide future funding for the program designated by the donor.
What is the difference between a current scholarship and an endowed scholarship?
A current scholarship is established when a donor gives to a scholarship on a one-time basis or an ongoing scholarship to be funded annually, without making a commitment for future years. The funds in the current scholarship are distributed annually.
Endowed scholarships are created with a minimum $10,000 gift. The principal is invested, and the interest (5 percent) is used each year for student support. These named, endowed scholarships last in perpetuity. Donors can assist in designing the purpose and selection criteria for their scholarship fund. Establishing an endowed scholarship is a way to memorialize a family name or loved one permanently and provides benefits to countless generations of future students.
How do endowed funds support the university?
The university's endowment is the collection of funds established at VCU that have been given with a stipulation that the funds are invested to earn annual interest rather than spent immediately. A strong endowment allows VCU to pursue critical initiatives that enhance our ability to be a leader in higher education and research. In addition to providing stability for the future, endowment gifts help the university attract and retain top faculty and students. Through annual endowment distributions, support for programs, students, faculty and patient care are guaranteed in perpetuity.