OSU Foundation STRATEGIC PLAN:

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1 OSU Foundation STRATEGIC PLAN: (Updated August 2012) Introduction The Oregon State University Foundation dedicates itself to garnering the resources that enable OSU to achieve excellence in education, research, and outreach. Private support deepens the University s impact and extends its reach across our state and around the world by helping to make an OSU education accessible to all qualified students, pushing the frontiers of knowledge, contributing to the state s prosperity, and addressing many of the most pressing challenges facing our planet and its people. We, the Board of Trustees and the employees of the Foundation, rededicate ourselves to our mission bringing private resources to OSU that allow it to excel at creating opportunity and a better world through learning, discovery, and engagement. We commit ourselves to achieving national distinction as a philanthropic leader among public research universities, to maintaining our core values, and to honoring the culture of collaboration and strategic purpose that has become the valued hallmark of our organization. Our objective in the strategic planning process is to reshape thoughtfully, but aggressively the Foundation s future. Background OSU Strat. Plan: OSU Strat. Plan: OSU Strat. Plan: Aspiration: Phase I Phase II Top 10 Land Grant OSU Sesquicentennial Campaign Begins OSUF Campaign Plan OSU Fdn. Strat. Plan: Campaign Concludes (2014) In fiscal year 2005, the OSU Foundation launched the University s first-ever comprehensive fundraising campaign with an ambitious initial goal of $625 million. In 2010, with significant campaign success and momentum and a revised University strategic plan, the goal was increased to $850 million. The goal was increased again in 2011 to $1 billion, with the campaign scheduled to conclude at the end of Campaign planning and early implementation drove significant growth and infrastructure improvements for the OSU Foundation and moved the organization to new levels of 1

2 productivity and professionalism. With a more engaged and focused volunteer Board and a commitment to robust and ongoing dialogue with institutional partners, the Foundation found itself well-positioned in 2009 to move beyond the campaign plan that had guided its operations for the last several years and embark on longer-term strategic planning. During this same time, the University community was engaged in a strategic planning process of its own, resulting in a Phase I Strategic Plan for OSU in 2004 followed by Phase II in 2009, both of which were instrumental in guiding the Foundation s campaign planning and implementation. With Phase II of the Strategic Plan as a solid road map for the five-year period from 2009 to 2013, University leaders began articulating longer-range aspirations for the institution. They saw opportunities for OSU s growth as an international research university that attracts the very best students and faculty from around the world. They also noted the opportunity for OSU to emerge as a leader in identifying, exploring, and solving critical contemporary challenges in three key areas: Earth ecosystems, human health and wellness, and economic growth and social progress. Seeking to leverage these opportunities, OSU President Ed Ray and Provost Sabah Randhawa implemented a new divisional structure for OSU s 11 colleges in the fall of The divisional structure brought greater interdisciplinary alignment around key areas of focus in the University s Strategic Plan by creating comprehensive administrative units for Earth Systems Science, Health Sciences, Business and Engineering, and Arts and Sciences. With the nation s top ten land grant institutions as models, President Ray presented the following picture of what OSU should look like in 2025 as it strives for distinction: A first-year retention rate for entering freshmen approaching 90% and a six-year graduation rate in the 75-80% range. An increasingly diverse campus with 20-25% of our students as well as 20-25% of our faculty from historically under-represented groups, and out-of-state and international students composing 25% of the student body. A student body of which at least 20% are graduate students. To meet growing demand while building excellence, President Ray noted that tuition will certainly increase, and that significantly more financial aid will be required to ensure that qualified students are not priced out of an education. Enrollment growth projected by some to hit 30,000-35,000 by 2025 will, in turn, necessitate additional resources for creating faculty positions and building facilities for teaching and research. Further, in discussing obstacles to attaining the OSU vision for distinction and international prominence, President Ray cited unpredictable resources and an unsustainable funding model for public higher education in the state as the most critical threats. 2

3 The vision for OSU as a top ten land grant institution gives clear direction to us at the Foundation and underscores our critical role in the University s future. Success in the development program will be marked by compounding the annual growth rate in fundraising and increasing participation from alumni and non-alumni alike not only in Oregon but throughout the world. Success will require enhancing the partnership between the Alumni Association and Foundation to leverage efforts with current and potential donors. These efforts must be supported by a strong OSU brand and position in the marketplace, as defined and advanced by University Relations & Marketing. The OSU Foundation s strategic planning process is thus grounded in the tremendous opportunities afforded by the University s inspiring vision of becoming one of the nation s best land grant universities, while seeking to address threats such as those presented by the state s structure for funding higher education. Context: Opportunities & Challenges The ambitious vision for OSU s future stands in stark contrast to current levels of public funding and the state s decades-long disinvestment in higher education. Seeking to reverse this trend and ensure long-term economic prosperity through an educated citizenry, state leaders have set what they call the Goal: 40% of Oregonians 25 years and older will have a fouryear college degree by 2025, 40% will have post-secondary training, and the remaining 20% will have a high school degree or equivalent. State System Chancellor George Pernsteiner has noted that the 40% goal would require an enrollment of 164,000 by fall of 2025 an almost 80% increase over the system s fall 2009 enrollment of 91,580. Furthermore, this educated citizenry will also require ongoing engagement and outreach services to support a lifetime of continuous learning. Certainly, the current funding model for higher education in Oregon is incompatible with the state s goals for educational attainment and the demands it will place on OSU and the state s other public institutions. Further, Oregon s prosperity in the 21 st century hinges on an educated workforce, positioned to compete globally in a knowledge-based economy. This compounds the current challenges by making access to higher education increasingly important at a time when the fiscal environment in the state renders the current funding model for higher education unsustainable. An analysis of the current funding realities reveals: Between 2000 and 2008 state appropriations to support each student increased by only $83 per student while the cost borne by each student rose by $2,665. Levels of state and local appropriations for postsecondary education placed Oregon 45 th in the nation in The Oregon University System s share of state general funds has dropped from 15.1% in the biennium to 6.4% for the biennium. These sobering realities pose several key questions for our state s leaders: 3

4 How do we rethink the existing higher education funding model to be successful in the face of reduced state resources? How do we deliver quality programs to the highest enrollment in history? How do we build Oregon s leadership in education and fulfill its obligation to its increasingly diverse citizens? How do we develop and apply innovation to meet changing needs in the education marketplace? How do we sustain record research levels and facilitate the transfer of the resulting innovations to the marketplace all critical and essential components of a knowledgebased economy? These challenges give context to the OSU Foundation s strategic planning process and urgency to embarking on an ambitious plan for significantly expanding the Foundation s role in garnering private support for OSU and advocating on behalf of public higher education in the state. 4

5 OSU Foundation Strategic Plan: OSU Foundation Vision The Oregon State University Foundation is a trusted and highly effective partner in advancing OSU s land grant mission of learning, discovery, and engagement through efficient and strategic use of the Foundation s relationships, expertise, and resources. Mission The Oregon State University Foundation strengthens the University s capacity to broaden access to high-quality higher education, push the frontiers of knowledge, contribute to Oregon s prosperity, and enhance the quality of life for the citizens of the state and the nation. It does so through advocacy, fundraising, investment management, and stewardship and as the IRS 501 (c) (3) nonprofit corporation charged with receiving and administering private gifts for the University. Values In conducting business, the OSU Foundation will model the guiding principles of: Integrity Excellence Achievement Collaboration Trust Respect Alignment These values will inspire the confidence of our key constituents, foster synergy between staff and volunteers, create a positive work environment, and generate opportunities that benefit the long-term interests of the OSU Foundation. The Role of the Board The Board of Trustees of the Oregon State University Foundation is charged with establishing the mission and purpose of the Foundation; the Executive Committee of the Board of Trustees is further charged with establishing goals for the Board consistent with the mission of the Foundation and monitoring progress toward those goals. To develop the Foundation s strategic plan, the Trustees examined new challenges and questions regarding how to support Oregon State University in its ambitious drive to rank among the best land grant universities in the nation. The Board has provided strategic direction related to the Foundation s vision, mission, outcomes, and overall approach. 5

6 Strategic Goals: To enhance our ability to help OSU achieve its long-term vision of becoming a top ten land grant university, the OSU Foundation will focus on the following strategic goals. 1. Financial success. The Foundation will become a recognized leader among development programs serving the nation s public research universities. Success will be measured both in terms of fundraising and investment results and will be driven by staff and volunteer performance. 2. Collaboration to create a culture of meaningful engagement. Recognizing that such fundraising success will require programs beyond what the Foundation can deliver alone, we commit ourselves to close collaboration with other University departments focused on external relations so that, together, we foster a culture of continuous and meaningful engagement for our alumni and other key constituents. 3. Advocacy. Recognizing that no matter how successful our fundraising efforts become, OSU will remain dependent on public support to fully realize its aspirations; and therefore, we must develop the Foundation s capacity to serve as a powerful advocate for public higher education in our state. A dynamic, living document, the OSU Foundation s Strategic Plan will be refreshed yearly, as needed, through the Foundation s comprehensive planning process. Foundation staff will work with Foundation and University leaders to develop annual plans that will provide the framework for the detailed tactics, metrics, and timelines necessary to ensure success on the organization s strategic goals. Key Strategies & Objectives Supporting the Foundation s Three Overarching Goals GOAL 1 Financial success. The Foundation will become a recognized leader among development programs serving the nation s public research universities. Success will be measured both in terms of fundraising and investment results and will be driven by staff and volunteer performance. I. Complete The Campaign for OSU by raising $1 billion by 2014 and develop a plan to maintain growth and build on annual fundraising levels achieved during OSU s historic first campaign. (At a minimum, our goal is to double annual fundraising results between 2010 and 2025 and to rank consistently in the top quartile for our annual growth rate in fundraising.) 6

7 A. Succeed in funding the following strategic initiatives: 1. Raise $180 million for undergraduate scholarships and graduate fellowships and ensure that private support for students keeps pace with enrollment growth and increased demand for financial aid and student support services. 2. Complete the campaign s faculty support initiative, raising $100 million for faculty positions and awards and bringing the total number of endowed positions at OSU to Engage University leaders in determining new funding priorities to support student and faculty excellence consistent with OSU s stated areas of focus. 4. Succeed in raising funds for key capital projects. B. During the final phase of the campaign, build the development program as envisioned in our original campaign plan and ensure that the OSU Foundation s development resources are on par with peer institutions by Evaluate and reprioritize positions as vacancies occur. 2. Invest in additional major gifts staff, both centrally and in the units, adding support staff as needed to maximize fundraising productivity. 3. Fully implement a program to identify and cultivate newly discovered potential donors a project that was postponed due to FY09 budget reductions. 4. Continue to increase development officer productivity through refinements in portfolio construction, enabling development officers to focus their energies on the best potential donors. Attain a 15% improvement in average development officer productivity by the end of the campaign. 5. Refine and enhance Annual Giving programs, with particular attention to acquiring new donors and creating a culture of philanthropy among young alumni. 6. Build a comprehensive development program for OSU- Cascades, including an annual fund, special events, and a major gift program. 7

8 7. Continue to invest in the University/Industry Partnership Initiative with a goal of tripling corporate research support by Enhance donor stewardship, especially as we close The Campaign for OSU. C. By the time the campaign concludes in 2014, develop a post campaign plan that will ensure fundraising totals for OSU continue to increase during the interim period between campaigns. 1. Work with the University to prioritize fundraising initiatives for the interim period. 2. Conduct a thorough review of The Campaign for OSU to identify best practices for future campaigns. 3. Retain an independent consulting firm to evaluate the Foundation s state of readiness to support a new campaign. D. Ensure the seamless, accurate, and complete reporting of all philanthropic support for the University, regardless of the fiscal agent. II. The OSU Foundation will achieve top quartile investment performance which will aid in the development of an optimal and resilient funding model to support excellence and growth in its workforce and in its strategic partnering initiatives. A. Build on the strength of the Investment Committee by engaging Trustees with significant experience in all major areas of financial management. 1. Maintain diversity of expertise by financial discipline. 2. Maintain an active group of Trustees who are professionally engaged in the financial services industry in the major financial centers. 3. Assess the return on investment of adding in-house staff capacity in the investment area. 4. Review and update our investment allocation strategy to be consistent with our goal of top quartile performance. 5. Stress test our portfolio on a regular basis. 8

9 6. Review investment policies and performance of investment consultants with the full Board of Trustees annually. 7. Explore options for investing in the commercialization of OSU research through third parties as part of an alternative investment strategy. B. Develop a resource model that will enable the Foundation to complete the expansion of the development program described above in goal one, and provide seed money for other initiatives the Foundation may elect to pursue with strategic partners. 1. As a part of the post-campaign planning process, conduct a complete review of the methodology for funding the Foundation s operating budget with a goal of providing a sufficient resource base for doubling fundraising totals by Use the annual budgeting process to identify options for using current resources more effectively. 3. Assure accountability for results through a dynamic performance review process. III. Continue to cultivate the Foundation s human capital by developing a best place to work culture. Strengthen and grow the Foundation s reputation as one of the nation s top employers of accomplished fundraisers. A. Maintain a commitment to nationally competitive salary and benefits programs for fundraisers and financial officers. B. Maintain a commitment to regionally competitive salary and benefits programs for other staff. C. Continue to assess the shifting dynamics of compensation packages, in both the private and public sectors, and maintain an appropriate and competitive balance between salary and benefits. D. Recognize and celebrate success and enhance programs to proactively retain top performers, especially at the close of the campaign. E. Explore the additional use of incentive compensation for all employees. 9

10 F. As a part of the annual planning process, identify non-financial incentives and expand workplace activities to increase engagement and foster core organizational values. G. Continue to cultivate an atmosphere of transparency and participation through opportunities for open dialogue between Foundation staff and leadership. H. Maintain a commitment to creating an organizational culture that captures the advantage of diverse perspectives and fosters entrée into diverse communities. I. Continue the practice of regular employee engagement surveys, followed by action plans to address areas needing improvement. IV. The OSU Foundation will secure a reputation as having one of Oregon s most engaged and productive boards, committed to best practices and strategic leadership. The Board will engage influential and committed alumni and non-alumni in our efforts to secure the best possible future for OSU. A. Continue to attract influential Board members and engage them in strategic thinking and actions designed to have the greatest possible impact on OSU. B. Leverage Trustee involvement to help secure fundraising success not only through their direct philanthropy but through cultivation activities with their peers. C. Expand efforts to recruit leaders who may not be OSU graduates but play a significant role in the region. D. Expand Board breadth in terms of geographic and ethnic diversity. E. Work with Board members to develop personalized plans for their service on the Board. F. Conduct an annual assessment of Board effectiveness and develop strategies to create opportunities for more effective engagement of Trustees. G. At the conclusion of The Campaign for OSU, revisit the issue of Board Governance and the committee structure. Reset the Foundation structures, as needed, to support the strategic direction of the University. As a part of this process, identify best practices for Board engagement and alignment with students and faculty. 10

11 H. Build on the current partnership with the Alumni Association by developing additional pathways for increased communication, cooperation, and agenda setting. GOAL 2 Collaboration to create a culture of meaningful engagement. Recognizing that such fundraising success will require programs beyond what the Foundation can deliver alone, we commit ourselves to close collaboration with other University departments focused on external relations so that, together, we foster a culture of continuous and meaningful engagement for our alumni and other key constituents. I. In partnership with the OSU Alumni Association, develop strategies and identify funding sources for the following initiatives: A. Reverse the decline in alumni participation rates by developing a plan to increase giving among recent graduates. B. Increase membership in the Alumni Association by 20%. C. Develop a $5 million program endowment for the Alumni Association activities by D. Develop a plan for engaging alumni in Asia. II. III. Collaborate with the Vice President for Research and the Executive Associate Vice President for Research to review national best practices and develop strategies to maximize the University s technology transfer, commercialization, and other industry partnering efforts. In partnership with Athletics: A. Complete the efforts to expand the donor base for Athletics by completing the initiative to secure 12,000 annual donors by B. Launch a program to build an endowment for athletics with specific goals to be determined through the campaign extension and post-campaign planning processes. IV. Partner with University Relations & Marketing to be increasingly integrated in messaging, communication, and branding across all areas; and as funds are available, invest in market research projects that strengthen OSU s understanding of its brand position and measure the success of OSU s efforts to strengthen its brand. 11

12 V. Work with the Office of Outreach and Engagement to develop a network of extension agents who are aware of OSU s fundraising objectives and trained to identify and work with potential contributors. VI. Forge an alliance with the Agricultural Research Foundation to ensure coordination of our efforts to secure private gifts and grants from the agriculture community. GOAL 3 Advocacy. Recognizing that no matter how successful our fundraising efforts become, OSU will remain dependent on public support to fully realize its aspirations; and therefore, we must develop the Foundation s capacity to serve as a powerful advocate for public higher education in our state. I. Develop relationships with other Oregon University System (OUS) foundations and proactively seek ways to work with them to advance the higher education agenda in Salem and with voters. II. III. IV. Increase connectivity with and support of OSU s state and federal relations officers. Develop a legislative affairs / public policy agenda as a part of the External Relations Committee s annual agenda. As determined by the Foundation s Board of Trustees, invest in initiatives designed to enhance public support for higher education. Work with the OUS Chancellor to support efforts to recruit future OSU presidents who are committed to resource development and a culture of collaborative effort. Conclusion V. Utilize the Foundation s communications vehicles to promote the distinct features of OSU s land grant status, and to demonstrate the role and value OSU brings to Oregon s communities. We, the Board of Trustees and the employees of the Foundation, look forward to the challenges and opportunities The Campaign for OSU brings to the Foundation and to the University in the coming years. Refining our operations and achieving the goals described in this document will take us major steps forward in becoming a leader among our public university foundation peers. While finishing The Campaign for OSU is at the forefront, we devote ourselves to 12

13 institutionalizing processes and procedures that will enable us to successfully complete two or three additional campaigns over the next 25 years. While at all times, we commit ourselves to promoting the welfare of Oregon State University and augmenting its funding by supporting University leadership, messaging, and community development. In so doing, the OSU Foundation will fulfill its vision and create a stronger University to serve the people of Oregon, the nation, and the world. 13

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