The Foundation supports many programs and efforts at the Law School. The large majority of support provided is determined by the donors based on their desires and interests.
The Foundation staff calculates endowment distributions and prepares budgets in consultation with the Dean and Law School personnel. These are reviewed and approved by the Budget Committee of the Board of Trustees at each semi-annual meeting. The Committee then brings the budgets to the full Board of Trustees for final approval.
To the extent possible, all expenditures of the Law School are made by the University of Texas. The Foundation then reimburses the University of Texas for the items that are supported by the Foundation.
The distributions from endowments are calculated each year by applying the Board-approved percentage to the average market value of the endowment for the preceding 12 quarters. This percentage is currently 4.0%. The Board approves this percentage annually.
For various reasons, some donors established their endowments through UT rather than the Foundation. These endowments are known collectively as the John Charles Townes Foundation (JCT). JCT assets are held and managed by UT through the University of Texas Investment Management Company (UTIMCO). UT’s payout from the JCT Foundation is set by UTIMCO and varies annually but is typically about 4.75%.
TEMPORARILY RESTRICTED BUDGET
A listing of all special purpose gift balances is reviewed with the Budget Committee of the Board of Trustees at each semi-annual meeting. The budget for expending these funds is based on the available balances at that time and the needs of the Law School.
The Unrestricted budget is the portion of the Foundation’s funding that is determined solely by the Board of Trustees. It is made up of three components – Foundation Operating budget, Fundraising and Alumni Relations budget, and Law School Program Support budget.
- Foundation Operating Budget
Operations of the Foundation are funded by investment income earned on unrestricted balances, endowment management fees and other unrestricted revenues. By law and under Board policy, each year a small percentage may be charged to each endowment and collected as a management fee. The management fee is currently 0.35% and is evaluated annually. The Board strives to keep this percentage as low as possible to allow for maximum growth of the endowments.
- Fundraising and Alumni Relations Budget
The Foundation helps to support the efforts of the Alumni Relations and Development department of the Law School by funding certain elements of their operations. In conjunction with the Dean and other Law School personnel, a budget is prepared to fund these categories. Examples of items funded by the Foundation are fundraising events, travel by departmental employees, design costs, printing, copying and postage costs of collateral used in fundraising efforts.
- Law School Program Support Budget
Each year, a program support budget is developed based on the priorities of the Dean and the Board of Trustees. These programs typically include financial aid and scholarships to students, the Loan Repayment Assistance Program for graduates entering the public service field, student recruitment, and administrative costs of the Dean’s office.