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The University of Hawaii Foundation is the go-to fundraising outfit for the 10-campus system.
Established in the mid-1950s, in its first year the nonprofit raised $28,000 to support students, programs, research and faculty. Five years later, $140,000. In June it wrapped up a fiscal year continuing decades of ascent by surpassing a $75 million goal — raising $77.6 million during the year in partnership with donors and others, said Donna Vuchinich, the foundation’s president and CEO. In all, some 29,180 gifts were made.
“From funding globally recognized research in critical areas that affect us all, including cancer and our environment, to making a quality college education possible and providing opportunities to students who never thought they could go to college, donors are making a big difference,” Vuchinich said.
The foundation, which is a separate entity from the university, the UH Alumni Association and other affiliates, is contracted by the UH Board of Regents to serve as sole provider of fundraising and alumni services. Vuchinich, who has worked there for 15 years, has a passion for philanthropy that’s rooted in her childhood.
Growing up in New Mexico, respect for education-related opportunities and charitable giving were instilled, partly, by her father, who, as an oldest son during the Great Depression, left school with an eighth-grade formal education to go to work.
“A lifelong learner, thanks to the GI Bill, he became a successful businessman after World War II,” she said.
Both of her parents were committed to giving back to their community. Also, after losing his first child, Vuchinich said, her father spent the rest of his life raising money for disabled children. “He was an inspiration,” she said.
“I learned from a young age that you have to invest in education and that it takes work, but it truly changes the trajectory of people’s lives,” she said. “Access to public higher education has leveled the playing field for many of us and our families. Without that opportunity, many of us … would not likely be where we are today.”
Question: Thoughts on how the federal tax law President Donald Trump has signed might affect the UH Foundation?
Answer: The implications are keeping everyone busy reading the latest analysis. The new standard deduction will affect some donors’ ability to take an itemized charitable deduction, while others may actually be able to deduct more.
For all nonprofits, the national conversation around tax reform provides us with an opportunity to remind donors about the ongoing difference their support makes for programs they care about. Donors generally give for many reasons beyond tax deductions.
Historic philanthropic research on charitable giving shows that gifts to charity are motivated more by commitment, passion and vision for the specific charity or program. Donors understand the change they can effect with their contributions, and the impact on people and programs they support. Often they want to create a legacy for family or friends, which is more compelling than the tax benefits of a tax deduction.
… Rules regarding gifts of appreciated assets and the IRA Charitable Rollover were unaffected by the “Tax Reform and Jobs Act,” signed by President Trump on Dec. 22, and become even more powerful tools and incentives going forward. Life income gifts remain just as effective, if not more so now.
Q: Last summer the UH Foundation purchased the Atherton YMCA property adjacent to UH-Manoa for $8 million, with plans to spend up to $5 million renovating it for student housing. How’s that project going?
A: … We have been working with the UH system and UH-Manoa Housing and contractors to access the facilities and determine the scope of work needed to go forward to bring new life to the Charles and Mary Atherton YMCA property. We’re getting close to making decisions but plans have not been finalized yet.
Q: What do you see as the foundation’s top accomplishments during your tenure?
A: We were able to surpass the goals for two ambitious capital campaigns ($250 million and $500 million), celebrate 60 years of philanthropy and cross the $1 billion threshold for contributions to UH, build the UH Foundation endowment from $85 million to more than $300 million during the worst financial crisis in our history, and raise annual fundraising goals from $20 million a year to over $70 million a year.
Thanks to our very generous community, our UH partners, board and staff, the UH Foundation has grown over the past 15 years, and been able to provide more and more value for our state.
Q: Surpassing the $1 billion mark in total gift commitments coincided with the foundation’s 60th anniversary, marked two years ago?
A: … We were all energized. It really brought home how when we work together, we can do incredible things for UH and Hawaii. Every gift, every donor, every UH partner, everyone on our UH Foundation team played a role in reaching this phenomenal milestone.
Q: Other highlights tied to that anniversary?
A: The second thing that comes to mind is the growth that we’ve seen with the endowment that donors have helped create and that our board stewards.
Today, this endowment pays out approximately $10 million out of the approximately $50 million the UH Foundation provides each year in restricted funding to support students, faculty and programs across the UH system. Donors direct where those endowed funds go, and it is incredible to see their endowments make a targeted impact year over year.
… Also, thanks to innovators on our board, we created the Upside Fund, a venture capital fund in partnership with UH, and the Hawaii Strategic Development Corp. (which focuses on investing in startups utilizing intellectual property from UH). This is exciting new terrain with potential payoffs that could benefit Hawaii and the university for years to come.
Q: What sort of changes do you foresee for the UH Foundation within the next several years?
A: … With additional support, the UH Foundation will be able to grow the annual fundraising levels to $100 million a year and we have a goal to bring the endowment up to $1 billion too.
That would ensure that we can maintain access to higher education for students who want to attend college in Hawaii, and be able to address and find solutions to the health disparities affecting our communities — including food supply and affordable housing plus stay on the cutting and competitive edge of critically important research innovation — that will make positive economic outcomes for a sustainable Hawaii future.
Q: The 2016 annual report specifies that nearly one-third of funds raised ($20 million) went to student aid?
A: Student aid is comprised of funding for scholarships, fellowships, awards and grants. … Because our donors decide on the programs they want to support, the areas that get the most funds varies from year to year. Scholarships throughout the system are needed. Many of our students are first generation and work multiple jobs. Lowering student debt is a good goal for us all.
Q: Amid so many competing needs for donations, what’s an effective pitch to potential donors?
A: Data and metrics are key. People are very sophisticated in their philanthropy and are driven by impact. Donors want to know that when they invest, their funds will produce results they care about. I remind donors that their giving is not about the UH Foundation. We are the service provider here to help them facilitate their goals. We help … connect to the areas they care about and ensure the funding they generously gift is spent for the outcomes they want to effect — not only during their lifetime, but with their legacy also.
Q: What do you find most frustrating about your job?
A: Knowing that we could do more for Hawaii if more resources were invested in University of Hawaii and UH Foundation programs. Universities are economic engines for their communities.
Q:What’s most satisfying?
A: Seeing the very real impact fundraising for higher education makes in providing new skills and abilities for our people, solving society’s problems — from water quality to discovering solutions to disease. It is an exciting and fascinating place to work. Great teachers; bright, talented students; and proud alums. People are passionate about their work all across the system.
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