Inspiration

Dear UW-Eau Claire Alumni and Friends:

The current global economic crisis has impacted all areas of our financial existence – for each one of us personally and for the University of Wisconsin-Eau Claire and the UW-Eau Claire Foundation.  Despite these challenges, we are fortunate to be associated with this wonderful institution that daily exemplifies its motto of “excellence.”  Economic conditions notwithstanding, UW-Eau Claire is ever more focused on its vision to be the premier undergraduate learning community in the upper Midwest.

As we plot a course through this unpredictable financial environment, the UW-Eau Claire Foundation is committed to communicating a clear and comprehensive message about our strategy for addressing these economic challenges.

Fortunately, the many alumni and friends who give annually through Telefund are continuing to respond positively.  Those who have generously made significant annual gifts in the past also are remaining committed to the university’s people and programs. Thank you.  The UW-Eau Claire Foundation staff is focused on sustaining relationships with our past donors, while forging new bonds with alumni and friends for future support.  We are especially grateful for the positive responses from alumni and friends who may be experiencing their own economic challenges but who remain staunchly committed to the university’s mission and our students’ aspirations.

In February, members of the campus community participated in the annual Campus Campaign. Thanks to a matching gift from an anonymous donor, the Foundation received new gifts and gift increases from faculty and staff.  To date more than 400 current and retired employees have responded.   

Portfolio Performance
Most non-profit organizations have seen the value of their portfolios decline and are under pressure to meet annual funding obligations.  However, the Foundation is in better financial shape than other institutions across the country, many of which have major liquidity issues. 

In January, the Foundation posted a 30% loss to all of its endowed funds, reflecting market losses from July 1, 2007 through December 31, 2008.  We could incur additional losses after we receive the first quarter performance numbers for 2009.  In December, the Foundation’s executive committee reduced endowment fund spending, which means most scholarship awards for 2009-2010 will be smaller.

The market declines have caused several of our endowed funds to fall below their historic gift value. Because Wisconsin investment laws prohibit spending from endowed funds below their historic gift value, we now find ourselves in the unfortunate position of suspending some scholarship awards. The Foundation staff has been working with donors to these underwater funds.  Many are making additional gifts that can be used to fund awards for 2009-2010. Their response has been gratifying. 

The Foundation board is closely monitoring investment performance through its investment committee.  At its last meeting, members reviewed the committee’s investment strategy and continue to remain optimistic that while we are incurring losses now, we will be well positioned to benefit when the economy recovery begins.  The board members are watchful stewards of your generous support. For this reason, we want to allay any concerns you may have regarding the performance of the Foundation’s portfolios and our ability to meet our current commitments.

Controlling Spending
The Foundation staff also is focusing on reducing spending wherever feasible.  We are discontinuing some routine activities and closely evaluating expenditures to determine if they are central to the mission of the Foundation and the university.  The Foundation also is being asked to support other areas and programs in the university as it works to cut $2.5 million from its base budget for 2009-10.  Private support for important initiatives is more important than ever.  Our main focus is on supporting scholarships for our students so they can continue to pursue their education.

However, we know that in times of trouble it is even more critical to reach out to those who have the greatest interest in the university’s future. We will continue to send staff to meet with alumni and friends, and we are looking to expand our ability to broaden connections with those who can and will sustain the university in the future.

In summary, the UW-Eau Claire Foundation investments have not been unscathed by the current economic crisis, but the Foundation and its Board are working through these challenges. Please be assured the Foundation is well positioned to confront the current financial situation and take advantage of its economic opportunities. Your unwavering support is greatly appreciated.

Of course, your continuing support will ensure our ability to remain strong for the future.  Thank you for your past generosity and your future consideration. 

Sincerely,

                    
Casey J. Sylla                          George Stroebel                         Kimera Way
President                                 Investment Committee Chair       Executive Director

UW-Eau Claire Foundation