Committee Members:

Timothy B. Robertson, Chair	Albert H. Small
Charles M. Caravati, Jr., M.D.	Henry L. Valentine II
Elsie Goodwyn Holland	John P. Ackerly, III, Ex Officio
Terence P. Ross

I. REPORTS BY THE VICE PRESIDENT FOR DEVELOPMENT (Mr. Sweeney)

1. Year 2000: Fund-Raising and Communication Strategy
2. Campaign Transition Strategy
3. Kenan Challenge
4. Public Affairs Issues
5. Scott Stadium Expansion Fund Raising

B. Philanthropic Cash Flow

C. Campaign Progress

D. Miscellaneous Report

• Report on University-Related Foundations (Mr. Sweeney to introduce Mr. Sandridge; Mr. Leonard W. Sandridge to report)

DISCUSSION: The "Beyond A Billion" concept includes both communications and fund-raising strategies. The goals of the communications plan include making key constituencies, such as the University community, alumni and the public, aware of the Campaign's accomplishments from mere dollars raised to the real impact these funds have made on students, faculty and donors.

Vehicles which will be used to convey these messages include: a short, attractive piece announcing the achievement of the Campaign goal, and beginning to express the on-going aspirations for the University made possible by donors' gifts; a special magazine insert publication, profiling several different combinations of donors, and students or faculty who have benefited from specific Campaign gifts; a new website using the same information and images from the magazine insert; half-time videos to be aired during ACC games, highlighting the achievements and on-going opportunities of the Campaign; and special school publications.

The objective of the communications effort will be to thank alumni and friends for their gifts, to inform them about the impacts of their philanthropy, and to let them know that the Campaign is not yet over.

There is also a solicitation strategy that will focus on giving EVERY alumnus, parent and friend the opportunity to make either their largest annual gift or a comprehensive Campaign pledge prior to the end of the Year 2000. The direct mail, phonathon and personal solicitation strategies will be discussed.

ACTION REQUIRED: None

A.2. Campaign Transition Strategy

DISCUSSION: The Vice President for Development will discuss specific goals and approaches for the Campaign transition strategy, following up on the outline presented to the Board at its last meeting. The Vice President will touch on plans to employ new volunteers, approaches for continuing to cultivate donors and introduce new funding initiatives in the absence of a formal "campaign" structure. Central to the success of this concept will be maintaining cooperative efforts within the University development community.

ACTION REQUIRED: None

DISCUSSION: The Kenan Challenge was met by the deadline in December 1999. Income from the Kenan Fund will finance educational initiatives related to the University's original buildings and grounds, such as instructional programs for students and interpretive activities for visitors, as well as funding the training of specialists in historic preservation. The Vice President for Development will discuss historic preservation fund raising and plans for the endowments provided by the Kenan Trust and by the matching donors.

ACTION REQUIRED: None

DISCUSSION: The Vice President for Development has been charged with studying the current public affairs structure and making recommendations about possible improvements to its operations. He will outline his plans for this study, including description of a timeline for the process, involvement of University public relations professionals throughout the Grounds, collection of benchmarking data and consultation with peer universities. The President has asked that recommendations be provided by July 1, 2000.

ACTION REQUIRED: None

A.5. Scott Stadium Expansion Fund Raising

DISCUSSION: The total for Scott Stadium fund raising as of 12/31/99 was $21.4 million in cash, pledges and deferred gifts. Intense solicitation is still taking place with $8.9 million in outstanding proposals still being negotiated. In addition, $250,000 in financial commitments has been received for 22 suites, with verbal pledges in hand for over five more. Thirteen suites are remaining.

ACTION REQUIRED: None

DISCUSSION: With the receipt of the gift of $61 million from Frank Batten and a very strong year-end payment of outstanding pledges, preliminary numbers will not be sent to Board members with Board meeting materials because they will not accurately reflect progress. It is anticipated that cash flow for Fiscal Year 2000 will be at an all-time high. This trend will be confirmed with the Board through the presentation of cash flow figures through January 31, 2000.

ACTION REQUIRED: None

DISCUSSION: With the Batten gift and several major year-end commitments, the Campaign has exceeded all goals and all expectations, one year ahead of schedule. The overall goals for the Campaign ($1 billion), outright support ($900 million) and future support ($100 million) all have been surpassed. There will be a review of our "Millennium Gift" strategy (commitments of $10 million or more) and status of continuing major gifts strategy.

ACTION REQUIRED: None

BACKGROUND: The Board of Visitors approved the Policy on University-Related Foundations on October 9, 1992. The Policy applies to all foundations that are established and operated for the University's benefit and that use the University's name and resources. The Policy was designed to ensure efficiency and accountability of University foundations, as well as to maintain the foundations' independence and integrity.

The responsibility to ensure sufficient University monitoring of the foundations' compliance with the Policy rests with the Assistant Vice President for Finance. A status report on compliance with the Policy is provided to the Board of Visitors annually.

DISCUSSION: During the year, each foundation submits to the Assistant Vice President for Finance certain reports specified in the Policy, including, but not limited to, minutes of board meetings, audited financial statements, approved operating budget, amendments to by-laws, and tax returns. The Assistant Vice President for Finance reviews this information, and any questions are discussed with the appropriate foundation and brought to the attention of the President and/or the Executive Vice President.

In addition, certain transactions and activities require approval of the President or his designee; these approvals are coordinated by the Office of the Assistant Vice President for Finance.

The Policy is fulfilling its purposes. It has improved communication and the flow of information between the foundations and the University. Foundations have fully cooperated in complying with the requirements set forth in the Board's Policy.

ACTION REQUIRED: None