During a period of diminished governmental funding for higher education, the Virginia Tech Foundation responded with increased financial support for the programs, faculty, and students of Virginia Tech.
Spending in support of university programs increased to $65.6 million, as compared to $59 million in the previous year, a rise of 11 percent. Revenues for the year totaled $92.6 million, as compared with $66 million in the previous year. The increase in revenues is attributable in large measure to net gains on endowment investments and increased revenues associated with Hotel Roanoke and the Virginia Tech Corporate Research Center. Total assets increased to $613.5 million from $601.3 million. Net assets declined slightly to $439.7 million from $442.5 million at the end of the previous year. The decline in net assets is largely attributable to increased expenditures by the foundation in support of university programs.
The value of the Virginia Tech Foundation endowment was $331 million at the end of the fiscal year. The endowment earned 3.3 percent for the year, which was the first positive return in three years. The Investment Committee provided active and creative policy guidance in revising endowment asset allocation and spending policy and in monitoring the performance of investment managers. The use of hedge funds, real estate, and bonds protected the endowment from the more significant losses experienced during the 2000-03 decline in the broad equity markets.
Steps were taken during the year to enhance the foundation’s ability to support the upcoming university capital campaign. These steps included strengthening the accounting and business staff and systems, and increasing support for fundraising to $9.1 million, $2.5 million more than the previous year. The foundation board also approved the creation of a reinvestment fund to assure the continued vitality of our development program by reinvesting 7 percent of all gifts in fundraising support.
I am excited and challenged by the opportunity to serve Virginia Tech as the first chief operating officer of the Virginia Tech Foundation. The university is engaged in bold and exciting initiatives that need and deserve private support. The foundation is a key actor in bringing these new initiatives to fruition while continuing its tradition of supporting our faculty and students in their daily work and study. I look forward to working with you as we embrace the university’s spirit of Ut Prosim.
Sincerely,
Raymond D. Smoot Jr.
Chief Operating Officer and Secretary-Treasurer
