Still Strong Despite Turbulent Economy

Dear UC San Diego Friends:

For over 35 years, the UC San Diego Foundation has partnered with the University of California, San Diego in raising funds to educate stellar students; advance the creative pursuit of science, arts and humanities, engineering and healthcare; and conserve the oceans and earth.

A growing endowment, generating income in perpetuity, is the goal of every public and private university. The UC San Diego Foundation manages an endowment that, like most other university endowments, has experienced great volatility and serious decline during the last few months, losing 22 percent of its investment value since our 2008-09 fiscal year began July 1.

Similarly, system-wide budgetary resources at the University of California are under tremendous pressure due to the struggling economy and its impact on the state of California revenue. We know that our donors have experienced similar declines in their portfolios, and we share your concern about ongoing support for nonprofits—including public universities—which rely on funding from the government, foundations and individuals. The Foundation Board of Trustees seeks to prudently respond to this very serious financial situation, while remaining focused on the strategic goals we share with our supporters and the campus in funding donor-designated endowment initiatives ranging from student scholarships to faculty recruitment, infrastructure enhancement to research support. After much consideration, the Board has determined to reduce the Foundation’s endowment spending rate for FY 2009-10. This action will still provide endowment payout, but only at approximately 75 percent of the amount provided during FY 2008-09.

During this economic downturn, UC San Diego is also tightening its belt and driving operating costs down by freezing most open positions and seeking significant reductions in all variable costs. Like you, we continue to monitor the economy. If significant further deterioration in our endowment occurs, we may need to take steps, including an additional reduction in endowment spending.

We invite you to be in touch with department or division development officers about the programs your fund has benefitted. And I invite you to communicate any feedback, questions or advice you may have to Foundation President Steve Relyea at srelyea@ucsd.edu or Chief Financial Officer Marlene Shaver at mshaver@ucsd.edu.

Thanks to the university’s philanthropic donors who have made so many new programs and facilities possible, UC San Diego remains strong as one of the top ten public universities in the nation. While we have entered 2009 with real concern, we continue to be enormously grateful for your ongoing support of UC San Diego.

With Warm Regards,