University of Medical Programs - Funding Start Up Costs
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1 Support for Academic Programs With Large Initial Costs CIC CAO/CDO Conference November 6, 2011
2 Discussion Scenario Your University has just announced a three phase comprehensive vision campaign. You have an active and philanthropic Board of Directors. The second phase of this campaign is the initiation of a Dental School. You have an alumni who is a prominent Dentist in the area and has been a consistent and significant donor to the University. The start up costs are projected to be 10 million dollars.
3 Questions to answer Roles: Chief Academic Officer Chief Development officer What are the key actions you would take to make this a successful campaign? What is your role in discussing this with the dentist? What is your responsibility in crafting the messages for the Dental School?
4 Law school vs. Pharmacy school School of Pharmacy Comprehensive campaign: residence halls, enrollment growth, etc. Start up costs of $15 -$20 million Only other school in state WVU Full-functioning corporate chain pharmacy Walmart Strong need assessment First graduate program, professional doctoral degrees
5 Robert C. Byrd Center for Pharmacy Education
6 Robert C. Byrd Center for Pharmacy Education
7 Inaugural Class of 2010
8 Physician Assistant PA, Nurse Practitioner, PT, Speech Pathology After completion of comprehensive campaign Start up costs of $2.5 million Need for Allied Health Professions Third graduate program at UC (SOP, GSB, PA) Fits well with undergraduate programs and SOP Fast-track with unique curriculum
9 Academics and Advancement Partnering Together for New Initiatives
10 The Purpose of Academic and Advancement Offices Working Together to Achieve Strategic Initiatives The Bluefield College Strategic Plan Initiative One: We will educate our students to change their world. Goal Three: Expand and strengthen academic offerings. Initiative Three: We will enhance our resources to accomplish our mission and vision. The Result: The Rural Healthcare Education Program
11 Rural Healthcare Education Program A concept that resulted from listening to feedback from the College s alumni and reviewing current workforce needs in the Commonwealth of Virginia. Significant research conducted which included surveying 531 nursing students enrolled in various registered nursing programs in Southwest Virginia. A program that will create a career pathway that is community-based, culturally focused and global in nature. Strengthen partnerships with community colleges and healthcare providers locally and regionally.
12 Examples of Critical Data for Planning and Execution The following data was critical to the College Administration to prove need of this new degree offering, to not only internal audiences, such as college administration and faculty, but external sources such as foundations and individuals. Just 20 Virginia colleges and universities offer Baccalaureate degrees in nursing, only one of these degree programs is physically located in Southwest Virginia. National Advisory Council on Nurse Education and Practice has recommended that at least two-thirds of the basic nurse workforce hold baccalaureate or higher degrees in nursing by 2010.Thus-by 2020 applying these recommendations here in Virginia, at a minimum of projected 47,000 available RNs in the state, thus 31,300 should be baccalaureate educated. In the state of Virginia in 2008, only 758 individuals graduated from BSN programs or the equivalent of only 5% of the total national graduation rate for BSN programs. In the 2004 Strategic Plan & Recommendations to Ensure an Adequate Supply of Nurses in Virginia by the State Council of Higher Education for Virginia (SCHEV) ) recommends the number of graduates from advanced degree nursing programs increase by 15% in five years and an additional 35% within 15 years.
13 Successful Collaboration and Program Implementation Determined the vision for a new program. Created a concept to base the curriculum. Assembled an internal advisory committee that allowed faculty input. Assembled an external advisory committee of healthcare and workforce officials to provide input. Developed a five year business plan model. Sought external funds, such as grants and individual donations now totaling $ 264,000. Bonus Collaboration: The development of a Rural Health Clinic in partnership with a local hospital in a facility managed by the College.
14 Example of the Five Year Business Plan Model Statement of Surplus and Deficit Surplus and Deficit Year 1 Year 2 Year 3 Year 4 Year 5 Funding $21,252 $63,750 $474,240 $751,716 $866,436 Direct Cost $0 $0 $0 $0 $0 Other Costs of Funding $0 $0 $0 $0 $0 Total Direct Cost $0 $0 $0 $0 $0 Gross Surplus $21,252 $63,750 $474,240 $751,716 $866,436 Gross Surplus % % % % % % Expenses Payroll $21,251 $85,000 $151,000 $182,000 $258,500 Marketing/Promotion $0 $25,000 $15,000 $25,000 $35,000 Depreciation $750 $3,000 $3,000 $31,000 $42,000 Consulting $3,000 $10,000 $2,500 $2,500 $2,500 Travel/Recruitment $1,500 $5,000 $5,000 $7,500 $12,000 Insurance and other employee benefits $2,975 $11,900 $19,460 $20,160 $28,070 Payroll Taxes $3,188 $12,750 $22,650 $27,300 $38,775 Supplies and Equipment $1,500 $10,000 $5,000 $6,000 $10,000 Continuing Education $0 $0 $3,000 $5,000 $6,000 Facility Rentals $0 $0 $9,000 $12,000 $12,000 Legal $1,200 $5,000 $1,000 $1,000 $1,000 Total Operating Expenses $35,364 $167,650 $236,610 $319,460 $445,845 Surplus Before Interest and Taxes ($14,112) ($103,900) $237,630 $432,256 $420,591 EBITDA ($13,362) ($100,900) $240,630 $463,256 $462,591 Interest Expense $0 $0 $0 $0 $0 Taxes Incurred $0 $0 $0 $0 $0 Net Surplus ($14,112) ($103,900) $237,630 $432,256 $420,591 Net Surplus/Funding % % 50.11% 57.50% 48.54%
15
16 General Grant Sites (Capital Development) Collection) (Science and Religion) (The Foundation Directory) Fund for Theological Education) Center Grants) Telephone Directory) directory) (Zip Code Director, USPS) (U.S. Census Bureau) (Guidestar) University at Perdue Center for Philanthropy) (grant giving index)
17 Planned Giving Sites (password required) Other Helpful Information Important Acronyms/Terms 501(c)3: Nonprofit, tax-exempt status Annual Fund: Annually repeating gift program that seeks funds from the same source. Capital Campaign: Carefully organized, highly focused effort that seeks to raise funds for a specific need within a set time period. Form 990: The public record information return that all private foundations are required by law to submit annually to the IRS. LOI: Letter of Intent or Letter of Inquiry Planned Giving: The application of sound personal, financial and estate planning that allows the donor planning options forboth lifetime and testamentary giving that afford tax benefits and income through various types of trusts. Major gifts: A gift of a significant amount that may be distributed over several years generally for a programmatic or capital purpose. NOFA: Notice of Funds Available Restricted Funds: Funding that can only be used for a specific purpose, according to the agreement set forth by the funder. Note: most grants are restricted funds. RFP: Request for Proposals: An issuance of grant guidelines for specific initiatives. Unrestricted Funds: Funding that is flexible and not specified for a particular use.
18 Best Advice Follow directions. Always let the Advancement office know what you are doing. View the Advancement office as your best friends. Plan. Research. Make Contact(s). Write letter of intent. Write Grant. Be Realistic. Allow yourself time to review and critique. Include in grant how you will administer funds. Include a budget. Be prepared to communicate with foundation follow up very important. Do not get discouraged. Even if you get a rejection, you have laid foundation for next grant request. And be a giver yourself.
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