1. What is the Arch Foundation
for the University of Georgia?
The Arch Foundation for the University of Georgia, Inc., was incorporated under
the laws of the State of Georgia on May 3, 2005. It is organized as a private,
non-profit corporation with a board of trustees. Its purpose is to strengthen
and enrich the university’s academic mission. It will receive gifts
from individuals, corporations and foundations. It will administer such
gifts in accordance with the instructions of the donors. The Arch Foundation
facilitates the use of private resources to help the university attain levels
of excellence that are not possible with state funding alone. Among many
objectives, gifts to the Arch Foundation will be used to provide scholarships
for superior students, to support distinguished faculty scholars, to strengthen
research and teaching programs, and to build vitally needed facilities.
2. How does this relate to the University of Georgia
Foundation?
On April 20, 2005, the Board of Regents of the University System of Georgia directed
that the “cooperative organization” status for the University of
Georgia Foundation be revoked. The UGA Foundation was organized in 1937
for the same purposes as are stated for the Arch Foundation in answer #1 above. Even
though the cooperative organization relationship between the University of Georgia
and the UGA Foundation ended July 19, 2005, the UGA Foundation continues to manage
funds it holds for support of the University. A shared services and facilities
agreement between UGA and the UGA Foundation, effective July 1, 2005, means that
UGA external affairs staff continues to handle day-to-day operations regarding
UGA Foundation funds, as they do for Arch Foundation accounts.
3. Does this mean the Arch Foundation takes the place
of the UGA Foundation?
In their April 20th action, the regents directed the University of Georgia to
seek a replacement cooperative organization as soon as possible. The Arch
Foundation has been identified by the university as a new cooperative organization
as directed by the regents. Thus, the Arch Foundation will be the University
of Georgia’s primary gifts-receiving vehicle going forward, but funds held
by the UGA Foundation also will continue to be used in support of University
programs in accord with individual donors’ wishes.
4. Who started the Arch Foundation and who are its
trustees?
The latest information on the status of the Arch Foundation and its board of
trustees may be found at
http://www.uga.edu/news/artman/publish/050602archmeeting.shtml.
5. What does this mean regarding
funds I previously have given to the university through
the UGA Foundation?
It is important to note that almost all of the UGA Foundation’s assets
are held in restricted accounts which are governed by specific agreements which
direct the use of the funds. The UGA Foundation will treat these funds
with appropriate fiduciary care so that they will continue to flow to the specific
purposes for which they were designated.
6. I am a faculty member with a chair supported by a UGA Foundation fund,
or a department head with a portion of my budget supported by a UGA Foundation
fund, or a student on scholarship. How will this be managed going forward?
There will be no change in the availability of funds for these purposes. The
accounts of the UGA Foundation have specific governing agreements that direct
the use of the proceeds on these investments. Though funds for new gifts will
be created and grow within the Arch Foundation, your existing UGAF fund also
can continue to receive pledge payments and additional gifts for the designated
purposes.
7. What does this mean regarding future gifts I may make to the University? To
whom should I make my check payable?
Effective July 1, 2005, the Arch Foundation became the primary gifts-receiving
vehicle for the University. All solicitations by the university will be
on behalf of the Arch Foundation. However, UGAF may still accept gifts based
on donor intent as well as in situations where minimum balances have not been
met in existing endowed accounts.
8. Do I still need to fulfill my pledge to the UGA
Foundation?
Fund raising is carried out by the university; the foundations are vehicles
for receiving, investing, and disbursing those funds. The many needs for student
scholarships, faculty support and other privately supported functions that
contribute to the academic excellence of the University of Georgia continue. Fund
raising and the needs it supports are continuing and we hope and expect that
the university’s supporters will continue to provide that very necessary
private support, either by fulfilling an existing pledge to the UGA Foundation
or making a new gift or pledge through the Arch Foundation.
9. Will the assets of the UGA
Foundation transfer to the Arch Foundation?
This is not a likely outcome. The UGA Foundation is an independent corporation
whose board of trustees will continue to govern the accounts and funds it holds. While
some have discussed the possibility that the two foundations may eventually
come under one board of trustees, for the foreseeable future the two foundations
are expected to operate separately with each managing its funds with appropriate
fiduciary care and handling.
10. How may I be assured that the funds I have given
to one foundation will not come under the control of the other or the Board
of Regents?
As has been said in response to other questions, the trust agreement or other
agreements governing specific gifts and funds are what rule the uses of those
funds, regardless of what entity controls or holds the fund.
11. What will be the investment strategy of the Arch Foundation? How
will it compare to the investment strategy of the UGA Foundation?
The investment strategy for each foundation is determined by the trustees of
that foundation, who are chosen for their expertise in such matters.
12. How will this affect my Presidents Club or Heritage
Society membership?
Those and other giving-level recognitions will not be changed by this restructuring. These
programs recognize total giving in support of the University, regardless of
the vehicle through which the gift is received.
13. Has this transition affected giving to the University?
The University of Georgia has shown a strong increase in total gifts received
every fiscal year since 2000. Giving for fiscal year 2005 surpassed that
of 2004 with one month to go. All indications are that the strong, upward
trend is continuing.
14. I have a will that names the UGA Foundation as the charitable beneficiary. If
I want to leave the UGAF as beneficiary, do I need to change my will in any
way? May I name the Arch Foundation as beneficiary under my will?
If you desire for the UGA Foundation to remain as beneficiary under your will,
then you do not need to change your will. The Arch Foundation for the
University of Georgia is now the public charity that works in cooperation with
UGA to raise money for the benefit of UGA. If you wish to name the Arch
Foundation as a beneficiary under your will, you should contact your attorney
to make the necessary change. The proper name for the foundation (for
designation in a will) is The Arch Foundation for the University of Georgia,
Inc. The UGAF will remain a separate, independent public charity that
supports UGA, but is not the acknowledged cooperative organization working
in conjunction with UGA.
15. I would like to know more about my existing
(or new) Charitable Gift Annuities, Charitable Remainder Trusts and Pooled
Income Funds as related to the UGA Foundation and the Arch Foundation.
Please contact UGA’s Gift and Estate Planning Office at (706)542-8140. Consultation
with your attorney also may be advised in some cases.
