Kellogg Legacy Project Endowment
The Kellogg Legacy Project Endowment is a multimillion-dollar investment in the future of our students, our state and our nation. This remarkable gift from one of the nation's leading foundations supporting education will help us strengthen student success programs, improve support for faculty teaching and scholarly innovation, expand relations with our external community and provide strong impetus to our first-ever comprehensive capital campaign. Proceeds from the endowment will be invested by the president in projects and activities that strengthen the university and advance its major goals, particularly the success of our disadvantaged or underprivileged students.
Once fully endowed at $40 million, the endowment earnings should enable funding of about $2 million per year. This amount assumes a return of 5%. Only what is earned may be spent; the corpus of the endowment may not be touched. In years when earnings are less than 5%, less will be spent. In years when earnings exceed 5%, the excess will be returned to the corpus of the endowment, enabling it to grow over time.
Examples of future projects
Following are examples of currently envisioned endowment uses. In the spirit of an endowment, which is perpetual in nature, future presidents will have the flexibility to use the endowment earnings to consider projects that we cannot possibly envision at this time. What follows are simply ideas that can currently be imagined.
In general, I envision endowment support as one of the highest priorities at Cal Poly Pomona. Endowment support represents an investment that truly keeps giving! The requested $40 million gift from the W.K. Kellogg Foundation will continue to grow over the years via other "spin-off" endowment investments in the university's future made possible by the Kellogg Legacy Project Endowment.
Endowed chairs or professorships will enable the university to attract and retain the best and the brightest faculty in areas we seek to enhance, expand or target for world-class prominence. Funds will be utilized to enhance salary beyond what the state can support and will also nurture and fund cutting-edge applied research opportunities for our professors and students.
Recruit and retain teacher-scholars. The retirement of the Baby Boom generation will result in the university losing a third of its faculty over the next 10 years. This trend will force the university to compete nationally for top-notch faculty. Endowed positions attract the best teacher-scholars and are essential in disciplines such as business, science and technology, where state salaries for faculty fall far below the market average in the private sector. Research opportunities are, again, highly attractive to the best scholars.
The university has too few scholarships to offer and most are reserved for upper-division students. As a result, many first-year students seeking to attend Cal Poly Pomona must accept scholarships elsewhere or miss out on a college education altogether. Endowed scholarships will enable the university to guarantee opportunities for academically promising students.
Endowment income provides a stable, reliable source of annual revenue for premier programs, especially ones that receive no state funding. One example is the Renaissance Scholars Program, which was established to honor the achievements and aspirations of motivated and talented students who come from the foster care system. Another example is the Troops to College initiative, which provides returning veterans with access to Cal Poly Pomona's general education, science and engineering programs.
Special projects deemed by the president to be timely can be optimal or even crucial to the future successes of the university. Such projects may support the purchase of or expansion of special book or material collections at the university library or the Kellogg Arabian Horse Library. The purchase of a key piece of equipment might also be considered. For example, something that falls outside of what the state will support, but moves a department of college to world-class performance or recognition. A president might also envision a project to better promote and market the university to a targeted audience of national/international faculty prospects, students, parents, etc.
I would further request that I and future presidents have an option to devote multiple years of support from the earnings of the endowment toward one project or in one area that is deemed important enough to benefit from longer-term support. Many of the projects described could also benefit from longer-term support, again, at the discretion of the university president.
Uses for the Kellogg Legacy Project Endowment funds that are not appropriate
My intent would be that at no time either presently or in the future should earnings from the Kellogg Legacy Project Endowment be utilized to fill gaps in state funding, support base salaries for any faculty or staff member(s), or provide funding for capital projects such as brick and mortar or renovation projects without the expressed written consent of the W.K. Kellogg Foundation Board of Trustees.