A DONATION THAT PAYS YOU BACK? by Antonio Racela, Jr., MD & Leo Clemente The goal of any non-profit foundation is to actively solicit donations on behalf of their cause. And, Friends of the University of the Philippines Foundation in America is no exception. But in our years as a fundraiser for the University of the Philippines, we have always wondered how to make donating "painless" and affordable. Accordingly, during last summer's meeting of the FUPFA Board of Trustees in Baltimore, board members raised the question, "How can we reach the majority of alumni and make it easy for them to actively support UP through FUPFA?" During the meeting, this query was on everyone's mind. And as Leo Clemente, Chair of the Finance Committee, reported on the performance of invested funds of the Foundation, an idea took shape. Since the turnover of the fund to the new management team three years ago, the fund has grown to $419,017.61. This represents a growth of 54%, and an annualized rate of 18%. Buoyed by this impressive performance, the concept of an "investment club" for alumni under FUPFA management was thoroughly discussed. The FUPFA Board is prepared to take action to create a special fund or investment group specifically for UP alumni. FUPFA is planning to organize a partnership wherein alumni can join as investors. The total investment will be managed by the Finance Committee. The investors retain ownership of the capital. After a designated time, e.g. five years minimum, the appreciation and earnings of the investment are donated to FUPFA for the support of U.P. In short, the partners preserve their initial investment, gain a tax deduction, and become an active donor for the benefit of their Alma Mater. The only requirement that FUPFA would need, as in any investment, is that the investors should be knowledgeable in the investment market, and understand the ups and downs of invested funds. And the Finance Committee, although made up of some of the best money managers in the country, can only do their best, and can not guarantee specific returns. Programs such as this are not unique to FUPFA. They are operating successfully in other alumni supported charities. And in fact, is the backbone of many of the better-managed charities throughout the country. The program will be implemented if a significant group of alumni are willing to participate. This idea is still in the early stages, and this article should not be considered a solicitation for any particular product or service. The board would just like to help its alumni attain their charitable goals to support UP. If you are interested in this program, please write me at: Dr. Tony Racela 912 Burning Tree Dr., Kansas City, MO 64145. You may also call me at 913-541-5584. [<< previous] [table of contents] [next >>]