Your article regarding SGA’s resolution to secure more funds for UH scholarships ("UH to allocate more funds to scholarships," News, Monday) may leave readers with a misplaced understanding of University Advancement’s response to the SGA resolution.
First, let me emphasize that Advancement completely supports the spirit of SGA’s resolution to allocate 20 cents of every dollar raised for student financial aid.
But we suggested amending the resolution’s wording.
Placing a 20 percent "tax" on every dollar raised – no matter what the purpose of the donation – could potentially deter some donors.
Instead, I had suggested a more direct goal for student scholarships of 20 percent of funds raised (outside of building donations) in our future capital campaign.
A goal like this makes donors aware of our commitment to secure additional scholarship support.
It’s important to clarify that Advancement has not "set aside" scholarship support – we have actively raised 10-12 percent of our total philanthropy each year for scholarships. We are enthusiastic about increasing our efforts to reach or surpass a 20 percent goal.
One of the most powerful assets a university has is its endowment.
Donated funds placed in endowment aren’t touched. Interest is earned on those invested funds.
The UH System has a $521 million endowment, and last year we earned an 18.5 percent return.
The University distributes 5 percent to the programs designated by the donors, and the remainder (13.5 percent) is reinvested in the original endowment as a hedge against inflation.
University Advancement is focused on securing the scholarship support a flagship university and its students deserve, now and in the future.
Michael Rierson Vice Chancellor/Vice President University Advancement
