(02-19-2022 09:28 AM)We Are the Dukes of JMU Wrote:  

(02-18-2022 11:51 PM)Potomac Wrote:  

(02-18-2022 11:00 PM)bcp_jmu Wrote:  FBS, Reclassify, Capital projects, Honors college...if he gets the endowment to $1B - he's a legend

Ouch… we’ve got a ways to go. Only $154M as of last year.

If JMU wants to grow the endowment to $1B anytime in the near future, we’re going to need an influx of 6, 7, and 8 figure gifts. Small gifts aren’t going to get us there. Even if every living alum gives $1,000 today, that only increases the endowment by $145M, and even that level of giving from small donors is never realistically going to happen.

If JMU had stopped taking new donations in 2002 when the endowment was $23.2M and invested that amount in an S&P 500 index fund, the endowment would be around $114.7M today. When you take into account the investment returns (which were likely a little lower than S&P 500 returns) on the 2002 balance, you can see how little of the endowment’s growth is attributable to new contributions and the investment returns on those new contributions. Assuming the next 20 years look like the last 20 years from a markets perspective, our current $154M will be about $761M in 2042. It seems entirely possible to bridge the remaining gap to $1B with new contributions and associated returns, but even that gap requires a lot of work. I just don’t see any way we get there in less than 15-20 years without some very large gifts that JMU has traditionally struggled to secure. I hope I’m wrong and that we see it much sooner.

JMU has historically done a horrible job in creating a culture of giving back to the school. Couple that with the modern mentality of "I pay so much in student loans" "I have to pay student fees for athletics" (never mind we're still $1000s cheaper than any other equivalent school out there) and we have where we are today with a bunch of ingrates who feel they don't owe the school anything after they graduation and apparently aren't smart enough to recognize that their degree gains value as the school improves in stature.

Your $145M number seems like a lot but when you think about it, it's just $90 a month per living graduate over the course of the next 6 years to get us over the $1B mark. Realistically we're start at something smaller like $5-10/month per grad and it would need to be supplemented by those 6-8 figure donors or see the timeline expand to the right by several years, but there is no reason JMU can't get grads (especially new grads) to set up adding a 'Venti Latte' or three per month donation to the school on the kid's credit card as part of the diploma ordering process.

This is one of the reasons why I want so much for the Godwin side of BFS to be completed so that we can add more STH as they tend to donate more. Get them in at a deep discount for the 1-5 years post grad alumni to fill that side (think something really cheap like a $25 donation and $60/season ticket with 3-year commitment) to get/keep them engaged and then use that relationship to ask for more future donations and grow the base.

(02-20-2022 02:05 AM)JMaddy Wrote:  

(02-19-2022 09:28 AM)We Are the Dukes of JMU Wrote:  

(02-18-2022 11:51 PM)Potomac Wrote:  

(02-18-2022 11:00 PM)bcp_jmu Wrote:  FBS, Reclassify, Capital projects, Honors college...if he gets the endowment to $1B - he's a legend

Ouch… we’ve got a ways to go. Only $154M as of last year.

If JMU wants to grow the endowment to $1B anytime in the near future, we’re going to need an influx of 6, 7, and 8 figure gifts. Small gifts aren’t going to get us there. Even if every living alum gives $1,000 today, that only increases the endowment by $145M, and even that level of giving from small donors is never realistically going to happen.

If JMU had stopped taking new donations in 2002 when the endowment was $23.2M and invested that amount in an S&P 500 index fund, the endowment would be around $114.7M today. When you take into account the investment returns (which were likely a little lower than S&P 500 returns) on the 2002 balance, you can see how little of the endowment’s growth is attributable to new contributions and the investment returns on those new contributions. Assuming the next 20 years look like the last 20 years from a markets perspective, our current $154M will be about $761M in 2042. It seems entirely possible to bridge the remaining gap to $1B with new contributions and associated returns, but even that gap requires a lot of work. I just don’t see any way we get there in less than 15-20 years without some very large gifts that JMU has traditionally struggled to secure. I hope I’m wrong and that we see it much sooner.

JMU has historically done a horrible job in creating a culture of giving back to the school. Couple that with the modern mentality of "I pay so much in student loans" "I have to pay student fees for athletics" (never mind we're still $1000s cheaper than any other equivalent school out there) and we have where we are today with a bunch of ingrates who feel they don't owe the school anything after they graduation and apparently aren't smart enough to recognize that their degree gains value as the school improves in stature.

Your $145M number seems like a lot but when you think about it, it's just $90 a month per living graduate over the course of the next 6 years to get us over the $1B mark. Realistically we're start at something smaller like $5-10/month per grad and it would need to be supplemented by those 6-8 figure donors or see the timeline expand to the right by several years, but there is no reason JMU can't get grads (especially new grads) to set up adding a 'Venti Latte' or three per month donation to the school on the kid's credit card as part of the diploma ordering process.

This is one of the reasons why I want so much for the Godwin side of BFS to be completed so that we can add more STH as they tend to donate more. Get them in at a deep discount for the 1-5 years post grad alumni to fill that side (think something really cheap like a $25 donation and $60/season ticket with 3-year commitment) to get/keep them engaged and then use that relationship to ask for more future donations and grow the base.

The above analysis seems to assume we don’t actually use any of the endowment or it’s proceeds each year. Does anyone know how much is used on average each year? Or is JMU not tapping into it at all?

(02-20-2022 01:13 PM)Top Dawg Wrote:  

(02-20-2022 02:05 AM)JMaddy Wrote:  

(02-19-2022 09:28 AM)We Are the Dukes of JMU Wrote:  

(02-18-2022 11:51 PM)Potomac Wrote:  

(02-18-2022 11:00 PM)bcp_jmu Wrote:  FBS, Reclassify, Capital projects, Honors college...if he gets the endowment to $1B - he's a legend

Ouch… we’ve got a ways to go. Only $154M as of last year.

If JMU wants to grow the endowment to $1B anytime in the near future, we’re going to need an influx of 6, 7, and 8 figure gifts. Small gifts aren’t going to get us there. Even if every living alum gives $1,000 today, that only increases the endowment by $145M, and even that level of giving from small donors is never realistically going to happen.

If JMU had stopped taking new donations in 2002 when the endowment was $23.2M and invested that amount in an S&P 500 index fund, the endowment would be around $114.7M today. When you take into account the investment returns (which were likely a little lower than S&P 500 returns) on the 2002 balance, you can see how little of the endowment’s growth is attributable to new contributions and the investment returns on those new contributions. Assuming the next 20 years look like the last 20 years from a markets perspective, our current $154M will be about $761M in 2042. It seems entirely possible to bridge the remaining gap to $1B with new contributions and associated returns, but even that gap requires a lot of work. I just don’t see any way we get there in less than 15-20 years without some very large gifts that JMU has traditionally struggled to secure. I hope I’m wrong and that we see it much sooner.

JMU has historically done a horrible job in creating a culture of giving back to the school. Couple that with the modern mentality of "I pay so much in student loans" "I have to pay student fees for athletics" (never mind we're still $1000s cheaper than any other equivalent school out there) and we have where we are today with a bunch of ingrates who feel they don't owe the school anything after they graduation and apparently aren't smart enough to recognize that their degree gains value as the school improves in stature.

Your $145M number seems like a lot but when you think about it, it's just $90 a month per living graduate over the course of the next 6 years to get us over the $1B mark. Realistically we're start at something smaller like $5-10/month per grad and it would need to be supplemented by those 6-8 figure donors or see the timeline expand to the right by several years, but there is no reason JMU can't get grads (especially new grads) to set up adding a 'Venti Latte' or three per month donation to the school on the kid's credit card as part of the diploma ordering process.

This is one of the reasons why I want so much for the Godwin side of BFS to be completed so that we can add more STH as they tend to donate more. Get them in at a deep discount for the 1-5 years post grad alumni to fill that side (think something really cheap like a $25 donation and $60/season ticket with 3-year commitment) to get/keep them engaged and then use that relationship to ask for more future donations and grow the base.

The above analysis seems to assume we don’t actually use any of the endowment or it’s proceeds each year. Does anyone know how much is used on average each year? Or is JMU not tapping into it at all?

That's fair, but my analysis made a lot of assumptions (rate of return, net cash flows, etc.). I'm simply pointing out that a significant portion of the endowment's growth is likely attributable to market returns.

According to JMU's website, the endowment's annual growth rate of 9.65% between 2002 and 2018 exceeded all other VA universities during that time period. That could be a good thing or a bad thing. If it's because we're seeing giving levels that exceed those of other schools relative to endowment, then that's great. If we've been more successful with our investment strategy, then that's also good. If it's because we're offering fewer scholarship opportunities than other schools relative to endowment, then that's obviously problematic. I suspect the answer could be a combination of the three.

Alger has been clear that increasing scholarships is one of the university's most important near-term goals. It's a major stated goal of the Unleashed campaign. I suspect that it's an area where JMU is underperforming and that's why Alger is focused on fixing it.

(02-20-2022 01:13 PM)Top Dawg Wrote:  

(02-20-2022 02:05 AM)JMaddy Wrote:  

(02-19-2022 09:28 AM)We Are the Dukes of JMU Wrote:  

(02-18-2022 11:51 PM)Potomac Wrote:  

(02-18-2022 11:00 PM)bcp_jmu Wrote:  FBS, Reclassify, Capital projects, Honors college...if he gets the endowment to $1B - he's a legend

Ouch… we’ve got a ways to go. Only $154M as of last year.

If JMU wants to grow the endowment to $1B anytime in the near future, we’re going to need an influx of 6, 7, and 8 figure gifts. Small gifts aren’t going to get us there. Even if every living alum gives $1,000 today, that only increases the endowment by $145M, and even that level of giving from small donors is never realistically going to happen.

If JMU had stopped taking new donations in 2002 when the endowment was $23.2M and invested that amount in an S&P 500 index fund, the endowment would be around $114.7M today. When you take into account the investment returns (which were likely a little lower than S&P 500 returns) on the 2002 balance, you can see how little of the endowment’s growth is attributable to new contributions and the investment returns on those new contributions. Assuming the next 20 years look like the last 20 years from a markets perspective, our current $154M will be about $761M in 2042. It seems entirely possible to bridge the remaining gap to $1B with new contributions and associated returns, but even that gap requires a lot of work. I just don’t see any way we get there in less than 15-20 years without some very large gifts that JMU has traditionally struggled to secure. I hope I’m wrong and that we see it much sooner.

JMU has historically done a horrible job in creating a culture of giving back to the school. Couple that with the modern mentality of "I pay so much in student loans" "I have to pay student fees for athletics" (never mind we're still $1000s cheaper than any other equivalent school out there) and we have where we are today with a bunch of ingrates who feel they don't owe the school anything after they graduation and apparently aren't smart enough to recognize that their degree gains value as the school improves in stature.

Your $145M number seems like a lot but when you think about it, it's just $90 a month per living graduate over the course of the next 6 years to get us over the $1B mark. Realistically we're start at something smaller like $5-10/month per grad and it would need to be supplemented by those 6-8 figure donors or see the timeline expand to the right by several years, but there is no reason JMU can't get grads (especially new grads) to set up adding a 'Venti Latte' or three per month donation to the school on the kid's credit card as part of the diploma ordering process.

This is one of the reasons why I want so much for the Godwin side of BFS to be completed so that we can add more STH as they tend to donate more. Get them in at a deep discount for the 1-5 years post grad alumni to fill that side (think something really cheap like a $25 donation and $60/season ticket with 3-year commitment) to get/keep them engaged and then use that relationship to ask for more future donations and grow the base.

The above analysis seems to assume we don’t actually use any of the endowment or it’s proceeds each year. Does anyone know how much is used on average each year? Or is JMU not tapping into it at all?

There’s a fixed formula for how much JMU will spend (or draw) from the endowment each year, based on a 3-year average on returns. So, yes, JMU spends its endowment income, and the formula is intended to allow the invested corpus to grow (in addition to new gifts). The percentages of what is available to spend vary based on the nature of the underlying rules governing the gifts (some are unrestricted, but most of the endowment have “strings” attached). Bottom line, the endowment works (and this is a broad generalization) rather like a 401k where the owner (after aging out) must spend a minimum % of the account balance each year.

Annual giving (via one check, or in smaller monthly amounts) from an ever larger percentage of a burgeoning alumni base will certainly help grow JMU’s endowment. Of course there’s no replacement for the mega-donor (the “whale”) like a Michael Dell who cut Texas a gift of $150 million to jump-start a Med school. Yet, every gift helps, no matter how humble.

One of the best ways for a motivated JMUer to help the endowment grow with a larger gift (and who’s in an average income bracket…I include myself in this category), and who can’t give multi-thousands now, is to plan for an estate gift. Tying an estate gift to a percentage of a life-insurance plan, or the sale of stock or real estate on your passing can endow a scholarship to a program you want to support, or in the name of a relative or fav Professor you want to honor. There may be tax advantages a donor might take (while living) in making an irrevocable estate gift.

Talk it over with your financial advisor if you have one, or speak with someone in the JMU development office. Not to be morbid, but nobody gets out of life “alive” and we can’t take it with us. A couple thousand JMU alums creating estate gifts each year of “x” amounts in the tens or hundreds of thousands of dollars would add up quickly.