NCAA News Archive - 2002

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NCAA to restructure Foundation


Apr 1, 2002 9:43:59 AM


The NCAA News

The NCAA has announced it will significantly reduce the scope of its longtime fund-raising arm, the NCAA Foundation, which has existed since 1988.

NCAA President Cedric W. Dempsey made the announcement after a study was completed to assess the Foundation's current and future fund-raising potential.

The review found that the public at large and corporate America specifically, do not view the current NCAA Foundation programs as causes that prompt major gift giving or sponsorship. In addition, the study indicated that the Foundation does not have a compelling case for private giving, nor does it have a defined constituency.

The study stems from a commitment Dempsey made in 1998 to the NCAA Executive Committee about reviewing the Foundation's long-term viability. At that time, the Foundation was restructured to include a professional fund-raising staff and an increase in the number of members on the Foundation Board of Directors who would be more actively involved in fund-raising activities.

But Dempsey said that after three years, "the evidence is clear that the hurdles are too high for the Foundation to mount and sustain successful fund-raising campaigns in either the private-giving or corporate-funding sectors."

Dempsey said the Foundation Board of Directors, a 30-member body of high-profile corporate CEOs, university presidents and media members, will meet to determine the future and purpose of the group. Preliminary recommendations will be forwarded to the NCAA Executive Committee, which is expected to reach a final decision on the matter by its August meeting.

Among the topics that may be discussed is the future role of the Board, perhaps as NCAA "ambassadors," who would serve in an advocacy or advisory capacity to the NCAA president. There also might be potential ties with the Board to the NCAA's corporate-partner program and the Association's public-affairs plan.

"There is a place for a corporate entity to serve as a sounding board for the NCAA," Dempsey said. "This strong group of individuals would continue to provide an important external perspective for the NCAA and, most importantly, continue to support programs that benefit student-athletes, which is the true reason for our being here."

Programming to continue

The Foundation was established 14 years ago to build and manage an endowment, to generate funds through private gifts, and support scholarships, research and student-development initiatives. Programs the Foundation has funded include the Leadership Conference, postgraduate scholarships and degree-completion awards. The Foundation also teamed with USA Today last year to establish the Academic Achievement Awards, which recognize NCAA institutions with high graduation rates. Other programs, such as CHAMPS/Life Skills (educational and personal development) and CHOICES (alcohol education) also have been underwritten by grants to the Foundation.

Dempsey said all of those programs would continue to be fully funded through the NCAA, either through interest accrued annually from current Foundation investments or as line items in the Association-wide budget in future years, if necessary.

"The earnings from the Foundation's assets, plus the financial commitments the NCAA has made to match gifts, will provide sufficient short-term -- if not long-term -- funding," Dempsey said. "Those programs will continue to be supported."

Because the changes de-emphasize the Foundation as a fund-raising body, Dempsey said the Foundation's fund-raising staff at the NCAA national office will be restructured.


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