Frequently Asked Questions

1. What is The University Foundation?
2. How is The Foundation governed?
3. Who staffs The Foundation?
4. Why does Chico State need a foundation? Isn’t the University funded by the state?
5. What makes a gift charitable?
6. Who gives to The Foundation to support Chico State?
7. What is the size of the endowment?
8. What can donors expect from the Foundation?
9. What Foundation records are public?

Answers

1. What is The University Foundation?
   The University Foundation California State University, Chico (The Foundation) was organized and incorporated as a nonprofit California corporation in 1940, with a mission to support and enhance campus projects and programs. In 1997, the organization was split into two entities with separate governance and roles:
   • The University Foundation retained the founding name and became solely philanthropic in its capacity to accept and administer charitable gifts.
   • CSU, Chico Research Foundation administers grants and contracts related to research and public service, and it operates academically related enterprises such as the Chico State Farm and KCHO.
2. How is The Foundation governed?
   The University Foundation governance is vested in a volunteer Board of Governors comprised of eleven community members, six senior campus administrators, as well as a faculty and a student representative. The Board meets quarterly, and meetings are open to the public. 
3. Who staffs The Foundation?
   The University Foundation does not employ staff but contracts with the Research Foundation and Associated Students to perform accounting and financial services. University Advancement provides administrative support to the governing body and facilitates all aspects of fundraising activity, which is then directed to The University Foundation. Members of the Governing Board are not compensated by the University Foundation.
4. Why does Chico State need a foundation? Isn’t the University funded by the state?
   As with many public universities today, funding from the state has continued to decline. The proposed $2.2 billion in state support for CSU in the 2011-12 state budget is equivalent to 1999-2000 funding levels, even though the university system currently serves nearly 70,000 more students. Since 2002, student fees have increased for undergraduates from $1,428 to $4,230. With declining revenue and competing demands for state funding, the need for private support for student scholarships, professorships, programs, and capital projects is ever increasing. 
5. What makes a gift charitable?
   A charitable contribution is a donation or gift to, or for the use of, a qualified organization. It is voluntary and is made without getting, or expecting to get, anything of equal value (IRS Publication 526, Cat. No. 15050A). The University Foundation is a recognized nonprofit corporation by the State of California and United States Internal Revenue Service.
6. Who gives to The Foundation to support Chico State?
   More than 13,000 individual donors gave $7.1 million to the University in fiscal year 2009/10. They are alumni, parents, community members, faculty, staff, corporations, and foundations.
7. What is the size of the endowment
   Through the generous support of our donors, The University Foundation endowment value is $38 million, and an additional $12 million in life-income through trusts and annuities are future gifts to Chico State.
8. What can donors expect from the Foundation?
   In accordance with the Council for Advancement and Support of Education (CASE), The University Foundation upholds that all donors have these rights:
   • To be informed of the organization’s mission, of the way the organization intends to use donated resources, and of its capacity to use donations effectively for their intended purposes.
   • To be informed of the identity of those serving on the organization’s governing board and to expect the board to exercise prudent judgment in its stewardship responsibilities.
   • To have access to the organization’s most recent financial statements.
   • To be assured their gifts will be used for the purposes for which they were given.
   • To receive appropriate acknowledgment and recognition.
   • To be assured that information about their donations is handled with respect and confidentiality to the extent provided by law.
   • To expect that all relationships with individuals representing organizations of interest to the donor will be professional in nature.
   • To be informed whether those seeking donations are volunteers, employees of the organization, or hired solicitors.
   • To have the opportunity for their names to be deleted from mailing lists that an organization may intend to share.
   • To feel free to ask questions when making a donation and to receive prompt, truthful, and forthright answers.
9. What Foundation records are public?
   The University Foundation complies with a high level of transparency. Meetings are open to the public, and the following documents can be found on the Reports and Financials page:
   • Organizational Bylaws
   • IRS Tax Filings 
     • Audited Financial Statements
     • Investment Policy

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