QUESTIONS AND ANSWERS

A - The goal of the campaign is to establish a $3 million dollar endowment to support museum general operations and programming. This endowment will generate interest earnings each year to make the Museum less reliant upon support from the university’s general fund which is undergoing tremendous change due to declining state support for higher education. In order to generate $100,000 to $150,000 a year to help cover operating and program expenses, the Museum would need approximately $3,000,000 earning 5% in usable interest in an average year. Additionally, we would like to launch programs such as a quarterly lecture series, or a youth education program in area schools. Gifts could be restricted to cover expenses associated with a particular program. (See Program Endowment Ideas) There is a great need in the University and community at-large for Museum services and consequently the Vision is big. An operating endowment currently does not exist. The Louisiana Vision campaign will establish an endowment for the Museum to bridge university and community, art and education, generations and cultures.

A - As you consider your part in this initiative, your most versatile option is to provide an ‘unrestricted’ gift to the endowment, because earnings from those funds can be directed to the areas of greatest need in the museum. Last fiscal year, the Museum’s general operations budget was approximately $600,000. Here is the breakdown of support, 26% from student fees, 7% from memberships and earned income and 67% from the University. Additionally, the museum produced programs and services supported by restricted grant funds and private contributions to the foundation of approximately $78,000. This also does not take into account the supporting services provided by the university through physical plant, business office, development office and of course the foundation. As you can see, an endowment is critical to lessen the Museum’s reliance on University support. You can also have a meaningful impact on programs presented by the Museum by tailoring your gifts to a particular area of interest, such as a type of exhibition, public lecture program, or youth education.

A - You can name a space in the Museum. Additionally, named Museum staff positions, lecture series and youth programming are a few of the opportunities that Hilliard University Art Museum provides for donors to associate their name or someone else’s with Museum. Because spaces will be named in perpetuity, naming opportunities have funding requirements to ensure that adequate income will be available forever to achieve the donor’s intent, both now and in the future. A list of available naming opportunities is enclosed. Please discuss with us your intentions and we can create an opportunity for you.

A - While there is an outstanding balance on the bond issuance that funded the construction of the Museum, the balance is covered by outstanding pledges that we have confirmed will be paid over the next two years. Some of the funding in for this campaign will be used to pay off these bonds early and save the University hundreds of thousands in interest due early next year. As pledge payments are received they will replace these funds and become permanent endowment.

A - Specific tax and financial benefits that you can receive as a result of your gift depend on what type of asset you give and how you transfer it to the Museum. You may be able to receive federal and state income tax benefits, avoid or reduce capital gains tax liability, and qualify for estate or gift tax deductions. We recommend you consult with your attorney or accountant for advice on the legal and tax implications of any gift you might make.

A - Strategic management of endowments increases the value of donors’ actual contributions, generating more income for the supported programs and providing the Museum greater financial stability and leverage. Intelligent asset allocation, professional and skillful investment management, and prudent spending policies will result in steady growth of the University Art Museum Endowment.

A - There is no end. The income from your gift now is literally a gift forever. Over the next two years, the Museum expects to become more self sustaining through the creation of a permanent endowment. We invite you to participate in the Louisiana Vision campaign.