Where Does My Donation Go?

by Dr. Antonio Racela
Executive Director

Recently, a donor asked me this valid question, "Where does my donation go? He wanted to know prior opening his checkbook. Before I could give him an answer, I had to ask him a few questions since there are many ways to donate.

There are generally two types of donations. The two types of donations are called restricted and unrestricted. Restricted funds' purpose and use is specified by the donor. Donors can restrict the funds in two ways. First, donated money in their entirety can immediately be sent directly to the University of Philippines. For example, UP High School Class 1966 Fund (a fund where numerous alumni participated) specifically donated to help the UPHPEISFI (UP High, Prep, Elementary & Integrated School Foundation, Inc.) with its awards, financial aid, and grants. Individually the alumni of the UP High School Class 1966 sent money to Friends of UP. The Friends of UP accumulated the money and then, sent it directly to the University with specified instructions. Secondly, donated money can be managed as an endowment fund. Endowment funds are set up with a principal donation and are invested in the United States. The earnings are then sent to the Philippines to support the purpose of the fund. Faculty Endowment Funds and Professional Chairs, to name a few, are good examples of restricted donations managed as endowment. funds. Earnings on approximately $200,000.00 are managed by the U.P. Foundations, Inc. in the Philippines. Every year awards are given to support the professorial chairs in the University of the Philippines.

Donations that are restricted to the Friends of UP's "Centennial Fund" are invested and kept in the United States. The donations and their earnings will be given to the University of the Philippines as a lump sum gift during their Centennial year.

Although the Friends of UP and the UP Foundation, Inc. manage as for mentioned restricted funds, donations are tracked individually as per donor's name or fund name.

Lastly and most importantly, unrestricted funds support projects of greatest need set forth by the University of the Philippines' president. The Friends of UP's unrestricted funds managed in the United States have grown to over $300,000.00. A committee composed of the most successful money managers in the United States manages the money and they happen to be UP Alumni. Leopoldo Clemente, Crisotomo Garcia, and Francisco Juan chair the committee.

The office of the Friends of UP is supported by specified donations of the members of the Board of Trustees and Fellows. Earnings from unrestricted funds invested in the United States also augment the budget.

At present the Friends of UP Foundation in America is run as a true endowment, responsive and respectful of its many donors.