About

Policy 3101 – Introduction, Foundation Programs and Operations, and Future

Effective Date: 8/26/2000

Responsible Office: Vice President for University Advancement


Introduction

The Louisiana Tech University Foundation has enjoyed a distinguished history since
its founding on October 1, 1962. The first name of the Foundation was “The Louisiana
Tech Alumni Foundation,” and on August 31, 1987, the Board of Directors adopted a
resolution that changed the name to “The Louisiana Tech University Foundation.”

The first Board of Directors included: Milton Williams, Shreveport; T.C. Beasley,
Ruston; John D. Caruthers, Jr., Shreveport; Donald E. Hathaway, Shreveport; Nick Medica,
Ruston; Luther N. Moore, Minden; Pat Strother, Coushatta; Cecil L. Harris, Mobile,
Alabama; C.A. Marvin, Minden; Scott Weathersby, Ruston (ex-officio); and Vicki Albritton,
Ruston (ex-officio). John D. Caruthers, Jr., was the first president, and Donald Hathaway
served as the Foundation’s first Secretary-Treasurer.

The Foundation was first formed “To promote the educational and cultural welfare of
Louisiana Polytechnic Institute and all departments thereof, and to develop, expand,
and improve the College’s facilities so as to provide broader educational advantages
and opportunities, encourage research and increase the College’s usefulness to the
citizens of Louisiana and the United States of America.” The original purpose of the
Foundation continues into the 21st Century and has been expanded into the Foundation’s
mission statement and operating practices.

The Louisiana Tech University Foundation serves a large number of objectives in support
of the university, and five purposes shape its core values and missions. These basic
values and purposes are the following:

  • to secure private gifts as a resource distinct from state and institutional resources;
  • to enlist and use key volunteers in development endeavors on behalf of the institution;
  • to engage prospective donors in the university’s dreams and aspirations, and steward
    their investments of time and money;
  • to provide a vehicle for important university activities, ventures, and service, such
    as acquiring real estate by gift or purchase that the university cannot pursue (at
    least not in a timely manner) because of statutory or regulatory restrictions; and
  • to strengthen the university’s public image and create an environment conducive to
    financial support.

From its modest beginning, the 1962 assets of the Foundation had grown to $1.5 million
in 1987. The net assets of the Foundation at the end of the 2000 fiscal year approached
$40 million. This includes the management of 8 Eminent Scholar Chairs and 68 Endowed
Professorships. (As of 7/00)

The Engineering and Science Foundation, which actually pre-dated the formation of
the University Foundation, functions under the umbrella of the University Foundation
but retains its own Board of Directors; assets of the Engineering and Science Foundation
are included in the assets of Foundation but are accounted for and invested separately.

In 1999, the Board of Directors of the Louisiana Tech University Foundation approved
the formation of the Research Foundation which will also have a Board of Directors
of its own but will function under the broader umbrella of the University Foundation.

Foundation Programs and Operations

The activities of the Foundation are divided into four general categories: solicitation
of funds for the qualified activities of the Foundation and for support of appropriate
areas of Louisiana Tech University; management and administration of the Foundation’s
university related accounts, funds, scholarships, and programs; asset management and
investment oversight responsibilities; and the internal operations of the Foundation
itself.

The Foundation currently manages more than 800 active funds on behalf of the University
and its related constituent groups. The Endowed Professorships and Eminent Scholar
Chairs are also under the management of the Foundation. These management activities
by the Foundation staff result in the issuance of thousands of checks during each
fiscal year. In fiscal year 1999, over $700,000 in scholarship funds for the students
of Louisiana Tech University resulted from the management of endowed and other scholarship
funds.

The Foundation serves as the repository for a great majority of all gifts and donations
from alumni and friends for the support of the programs and mission of Louisiana Tech
University. In this capacity, its staff receives, records, receipts, and processes
thousands of donations on an annual basis. The Foundation administers numerous annuities,
life insurance policies, trusts, real estate holdings, and other special donations.
The most advanced software program available to not-for-profit organizations is utilized
by the staff of the Foundation for both data base and accounting applications.

Future

As the world of public higher education undergoes extensive and rapid change, the
role of the Louisiana Tech University Foundation must also change and grow. In a time
of decreasing state financial support, the maintenance and growth of the quality of
the educational experience now provided by Louisiana Tech University will require
additional private support and commitment. As public scrutiny and demand for accountability
with regard to educational foundations grows, the established and scrupulously maintained
prudent practices exhibited within the Foundation’s stewardship of donated resources
will need to be communicated to an ever increasing audience.

The formation of the Division of University Advancement at Louisiana Tech University
on January 1, 2000, signifies the university administration’s commitment to the activities
of the division: alumni relations, development of private financial resources, and
relationships with the external constituencies of the university. This Division’s
staff is dedicated to maintaining and enhancing the services provided by all departments
within the division and to providing the highest quality in carrying out the business
of the Louisiana Tech University Foundation.