For most of the University's history, the Alumni Association has been U.Va.'s primary driver of alumni engagement. It remains the central organizer and provider of many alumni programs, such as the clubs, Reunions, the Alumni News, and HoosOnline. It was the principal keeper of alumni records before the University adopted the BSR Advance database system in 1995-96. To envision an improved University-wide program of alumni engagement, the task force examined the Alumni Association's present structure and the place of alumni activities within that structure.

Key Functions
The Alumni Association manages a wide range of programs, but three stand out:

• The Alumni Relations program
• The Jefferson Scholars Program (the Alumni Association also administers other scholarships, including the Ridley Scholarships)
• The UVA Fund

In addition, a Parents Program seeks to involve non-alumni parents with the University, primarily as donors to a fund for student activities and other purposes.

The Alumni Association is an independent, fee-based organization with 57,029 dues-paying members, or about 33 percent of the University's 160,000 alumni. It has an annual operating budget of approximately $5 million, and among its principal funding sources is a $32 million endowment built over the years with gifts and life membership fees. Its target endowment spend rate ranges from 4.25 percent to 6.25 percent.

Other key revenue sources include:

• General University Support: $1.12 million is being provided in the 2003-2004 fiscal year as a fee for services to fund clubs, Reunions, the online community, and communications, including once-a-year distribution of the Alumni News. Pursuant to a contract last signed in 2001, the University agreed to provide these funds annually, with incremental increases each year.
• Endowment Income: $1.5 million is projected as income from the Alumni Association's endowment (described above) and for managing and administering several entity accounts, primarily the Jefferson Scholars Program. This service distinguishes Virginia's Alumni Association among its peers as a unique, hybrid organization.
• Credit Card Royalties: Approximately $475,000 is being generated annually, with equivalent amounts provided to Athletics and the University on a contract that extends through the 2009 fiscal year.
• Reunion Support and Registration Fees: Based on attendance, this is projected to be more than $500,000 annually.

Alumni News Support and Advertising, Career Services, and Computer Service Fees: These amount to more than $400,000 in the current budget. The magazine is distributed to all alumni once per year and to members only three times per year

• Annual Giving: Gifts for the use of the Alumni Association generally total $300,000 annually.
• Annual Membership Dues: The Alumni Association attracts annual membership dues of approximately $165,000 each year.
• Board of Managers Support: Every year, a special appeal goes out to Board of Managers' members and generates $100,000.
• Alumni Board of Trustees: The Alumni Board of Trustees of the University of Virginia Endowment Fund makes an annual grant of $58,000 to the Alumni Association.
• Affinity Promotion Income: Approximately $210,000 comes from marketing of commercial products at special rates to Association members, such as insurance.

The Alumni Relations Program
The objective of the Alumni Relations program is to serve alumni and to involve them in the life of the University. Programs are designed to appeal to alumni at each stage of their lives, beginning with their student years.

The Alumni Association's Alumni Relations services include:

• The Class Trustees program
• Alumni clubs
• Affinity Interest Groups
• Reunions
• HoosOnline, an online directory of U.Va. alumni
• Lifetime forwarding e-mail addresses
• Online and onsite career advising and services
• The Honor Endowment fund
• Legacy admissions advising
• Alumni News magazine

Membership Model
The Alumni Association is a membership organization, and some of the Alumni Association's alumni relations services, such as receipt of all issues of the Alumni News, are available to members only. Annual members pay yearly dues, currently $35 per year. Life members make a one-time payment, currently $400, which can be spread over several years. Under the membership-based model, the Alumni Relations services and activities are required to be financially self-sustaining. They are available only if they can support themselves or are subsidized by the University. This limits the investment that can be made in these programs, and it limits how the Alumni Association can work with the schools to market these programs.

Membership in an Alumni Club is entirely separate from membership in the Alumni Association. An alumnus might be a member of the Alumni Association and not a member of his or her local club, or vice versa. Each club sets its own membership criteria and dues, and club activities are designed to benefit and appeal to club members. These layers of membership complicate efforts by the University and the Alumni Association to deliver messages and services to all alumni.

Scholarship Programs
To enhance the University's capacity to recruit outstanding students, the Alumni Association's Board of Managers established the Jefferson Scholars Program in 1980. The program seeks to attract to the University the most promising student leaders in the nation and to give them sufficient financial support so that they are free to develop their talents and to use them for the good of the University community. Now operated by the Jefferson Scholars Foundation, an independent foundation affiliated with the Alumni Association, the Jefferson Scholars Program awards full four-year scholarships to approximately 36 undergraduates in each entering class. The Jefferson Scholars Program also has begun to offer graduate fellowships, awarding seven each year. Made possible by gifts from alumni and friends, the scholarships and fellowships are fully endowed. The Jefferson Scholars Foundation's endowment now totals $125 million. The endowment also supports the operations of the program, which has a staff of 11. The Jefferson Scholars Program pays rent to the Alumni Association for its offices in Alumni Hall.

Established in 1987 through the leadership and support of African American alumni, the Ridley Scholar Program has helped to foster a tradition of giving and involvement among the University's black alumni. Named for the University's first African American graduate, Walter Ridley (Curry '53), the program awards 15 to 20 scholarships to black undergraduates each year and has one staff member. Annual expenses are paid by the Ridley program, with a contribution from the Alumni Association.

The UVA Fund
Through the UVA Fund, the Alumni Association manages approximately $220 million in endowment assets, which include its own endowment, the Jefferson Scholars Foundation endowment, and approximately $65 million in other University-related endowment accounts. The objectives of the UVA Fund are to preserve principal, to earn a return each year at least equal to the annual distribution rate of 6 percent, and to the extent consistent with the first two objectives, to maximize return.

In addition, the UVA Fund manages approximately $20 million in checking account assets for University departments, programs, student groups, and other University-related organizations. The checking account service, which includes bookkeeping and gift accounting, gives these programs immediate access to their private funds.

The UVA Fund operates with six to seven FTE staff. The fund's total annual expenses of $700,000 include a fee paid to Tremont Capital as adviser to the fund. These expenses are approximately offset by an administrative service fee charged to investors and earnings from the checking account. As a result, the net budget impact of the UVA Fund on the Alumni Association is approximately zero.

The Parents Program
The Parents Program was established in 1980 with the mission of enhancing the student experience at U.Va. through fundraising and involvement in the University community. The program is directed by a Parents Committee that comprises non-alumni parents from around the world. Each year, the Parents Committee allocates funds to academic and student life programs and to a variety of University and student organizations. The Committee also provides information resources to incoming parents and works to develop new initiatives and programs that enhance the student experience at the University. One staff member is dedicated to the Parents Program.

Key Management and Governance Functions

Governance - Board of Managers: The Alumni Association is an independent 501(c)(3) organization governed by an independent, self-perpetuating Board of Managers comprising 36 members. The board meets twice a year, and its Executive Committee meets separately a third time each year. Members are elected to 3-year terms and may serve two consecutive terms. The University has two representatives on the Board of Managers, one designated by the President of the University and the other designated by the Board of Visitors. Both University representatives act as ex-officio voting members of the board, and one serves on the Executive Committee. The president and the vice president of the Young Alumni Council serve as non-voting ex officio members of the Board of Managers.

The President of the Board of Managers is nominated from among the Board members by the Nominating Committee and is elected by the Board. The President exercises a general executive control of the affairs of the Association. To provide consistency in leadership, the President generally serves as Vice President for one year, then as President for one year, and then as a member of the Executive Committee and head of the Nominating Committee for one year.

Executive Director: The Executive Director is also the Secretary of the Board of Managers and is elected by the Board, subject to the President of the University's right to consultation. Overseeing the day-to-day operations of the Alumni Association, the Executive Director is responsible for managing the staff and for fixing compensation. He or she can sign contracts with the approval of the President of the Board of Managers.