Strategic Plan 2013 - 2018 - Youngstown State University Foundation

Strategic Plan
2013 - 2018
Founder and first president of the
Youngstown State University Foundation,
Howard Jones, continues to look over
YSU students. The Foundation now
provides over $5 million annually
in student aid and support.
YSU Foundation
606 Wick Avenue • Youngstown, Ohio 44502

Dear Alumni and Friends:
Institutionally-related foundations are increasingly important in public higher
education, as support from state governments continues to diminish. Founded
in 1966 by the University’s longtime president, Howard Jones (who also
served as the Foundation’s first president), the YSU Foundation has become
a vital resource in providing YSU students access to higher education and in
supporting academic excellence at YSU.
The growth of the YSU Foundation has been impressive. In August 2012,
for the first time in history, YSU Foundation assets exceeded $200 million.
According to a 2012 survey by the National Association of College and
University Business Officers (NACUBO), the YSU Foundation had the largest
assets of any public university foundation in Northeast Ohio. YSU is the sixth
largest institution among public universities in the state.
The YSU Foundation will provide $5,157,940 in support to Youngstown State
University in the 2012-2013 academic year. The marquee program funded by the
Foundation is the Leslie H. Cochran University Scholars, receiving $2.6 million
in support. Approximately $1.5 million will be given from donor designated
funds to support these scholarships. The Scholarships for Excellence program
will receive $500,000 in funding in 2012-2013. Approximately $500,000 in
funds will support lecture series and other programs.
Two of the YSU Foundation’s important initiatives are the Minority Scholarship
match program and the Student Investment Fund. For the past decade,
the YSU Foundation has matched all gifts to minority scholarships. This
has attracted over $760,000 in gifts, helping YSU increase the diversity of
its student body. The Student Investment Fund, with $600,000 in assets, is
managed by the Student Investment Club, providing students with real world
investment experience.
Celebrating its 50th anniversary in 2016, the YSU Foundation seeks to
become recognized regionally and nationally as a model institutionallyrelated
foundation, known for its excellence and innovation. Building on the
record of accomplishments established by our founders, former trustees and
presidents, the strategic plan summarized in this publication is a first step in
achieving the Foundation’s aspirations for its next fifty years.
Sincerely,
Paul McFadden
Paul McFadden,’84
President

Contents
Board of Trustees...................... 3
History........................................ 5
Summary.................................... 7
Mission/Vision Statements....... 9
Governance and
Board Development............11
Financial Policies
and Practices......................13
Relationship to
the University......................15
Increasing Philanthropic
Support...............................17

Youngstown State University
Foundation
Board of Trustees
Alan W. Cope
President
Cope Farm Equipment, Inc.
Garry L. Mrozek
Chief Executive Officer
Hometown Pharmacy Solutions
James H. Sisek, Esq.
President & CEO
Farmers Trust Company
February 2013
Millicent S. Counts
Retired
Rex A. Ferry
Owner/President/CEO
VEC Inc.
Thomas E. Naughton
Owner
Marlboro Hinge
Carl A. Nunziato, Esq.
Retired
Clarence R. “Sonny” Smith, Jr
President
Compco Metal Products
William L. Spencer, CLU
Spencer & Associates, Inc.
Thomas Fleming – Chairman
Garry L. Mrozek – Vice Chairman
Eleanor Beecher Flad
Thomas Fleming
President
AIM NationaLease
Robert A. O’Leary
Retired
Anthony Payiavlas
AVI FoodSystems, Inc.
Richard B. Thompson
Executive
Frank C. Watson
Retired
Peter J. Asimakopoulos
EVP, Small Business Banking
Youngstown Market President
First National Bank
Eugenia Atkinson
Retired
A. Gary Bitonte, M.D.
Medical Consultant
Private Investments
Alan G. Brant
Retired
Lee Burdman
Redstone Investments
Anthony M. Cafaro, Sr.
Cafaro Company Consultant
Donald Cagigas
Retired
Thomas J. Cavalier
Senior Vice President
Stifel, Nicolaus & Co., Inc.
Y. T. Chiu, Jr., M.D.
Sudershan K. Garg, M.D.
President
Blood and Cancer Center, Inc.
Frank Hierro
Regional President Mahoning Valley
Huntington Bank
Benjamin Keck
Director of IT
Preformed Line Products, Inc.
Jocelyne Kollay Linsalata
Richard P. McLaughlin, Esq.
John L. Pogue, Esq.
Harrington, Hoppe & Mitchell, LTD
William R. Roesti
Retired, Roesti Reality
William A. Russell
President
Canteen Services Mahoning Valley
Richard J. Schiraldi, Esq., CPA
Cohen & Company
C. Reid Schmutz
Retired President
YSU Foundation
Paul J. Williams
Retired
Warren P. “Bud” Williamson III
Retired
G. Leo Winger
Retired
President
Paul McFadden
General Council
E. Carroll “Ted” Thornton, Esq.
Newman, Olson and Kerr
William J. Bresnahan
Retired
Don Constantini
Chairman & CEO
Falcon Transport Company/
Comprehensive Logistics, Inc.
dedication
3 4

Background: History of the
YSU Foundation
The origins of the YSU Foundation date back to the
fall of 1966. Dr. Howard Jones, who had served as
President of Youngstown College and Youngstown
University for 35 years, had just set into motion the
transformation of the private Youngstown University to
Youngstown State University. Seeking to protect the
University’s private endowment, Dr. Jones established
a separate, independent organization,
“The Youngstown Educational
Foundation.” A front page article in the
Youngstown Vindicator on November
22, 1966, announcing the creation of
the Foundation stated:
The purpose of the Foundation,
as stated in its petition, is to
continue the educational objectives
of Youngstown University, with
appropriate modifications, after
consummation of the proposed
transfer of assets for the use of
(Youngstown) State University.
Howard Jones served as President of the Foundation
from 1966 to 1975. He was followed by William
Roesti, who served for 14 years until 1989. C.
Reid Schmutz was appointed president in 1989
and served 22 years until his retirement. He was
succeeded by the current president, Paul McFadden,
in January, 2012.
The name of the Foundation was changed in 1983
to “ Youngstown State University Foundation,” while
retaining its private sector status as an independent
corporation, under the same terms as had previously
applied. The University Scholars program was
created in 1992 and renamed the Leslie H. Cochran
Scholars program in 2000 in honor of former
University President, Dr. Leslie Cochran.
A commitment to inclusion and access has always
permeated the core mission of the YSU Foundation.
With this in mind, in 1996 the YSU
Foundation began matching all gifts
to minority scholarships, to assist the
University in attracting a diverse student
population reflective of community
demographics. Since 1996, $762,000
has been matched in contributions to the
YSU Foundation, designated for minority
scholarships.
The growth of Foundation assets has been
impressive. The initial endowment value of
the Foundation in 1966 was $13,500,000.
Assets reached the $50 million mark in 1990, $100
million in 1997, and $200 million in 2012. This growth
can best be illustrated by comparing the current
market value of YSU Foundation assets with those of
other universities and university-related foundations
in the region. According to the 2012 study by the
National Association of College and University
Business Officers (NACUBO), YSU Foundation
endowment assets ranked eleventh in Ohio among
all colleges and universities, ranking sixth among
public universities. The YSU Foundation has more
assets than any other public institution in Northeast
Ohio, larger than the University of Akron, Kent State
University and Cleveland State University.
Paul McFadden, current president, Reid Schmutz
and William Roesti, past presidents
heritage
Youngstown State University Foundation
Growth of Foundation Assets
5 6

Summary of
Strategic Plan
2013 - 2018
C. Reid Schmutz retired as the Foundation’s
president in 2011, after 22 years of distinguished
service. The Board of Trustees identified this
leadership transition as an ideal time to engage in
formal strategic planning to determine directions for
the Foundation’s next era.
A Steering Committee was formed in March, 2012,
to identify priorities and a process for planning. The
Steering Committee identified four building blocks
around which the planning would be focused:
• The Foundation’s mission and vision
• Governance and board development
• Financial policies and practices (including
investments and spending)
• The relationship between the Foundation
and YSU
In preparation for the strategic plan, a nationally
recognized consultant, Dr. Michael J. Worth, was
engaged to advise and help guide the process.
Additionally, the YSU Foundation’s philanthropic
council, Attorney William Culbertson, Baker
Hostetler, provided the Board of Trustees a report
on current YSU Foundation practices and a review
of its founding and governance documents. The
members of the Steering Committee examined all
of the Foundation’s legal and policy documents
and reviewed the literature on institutionallyrelated
foundations, including books, articles, and
other materials. A benchmarking study of other
institutionally-related foundations was conducted to
provide data for comparison and to identify best and
emerging practices of foundation governance and
operation.
At an all-day retreat on August 23, 2012, the full
Board of Trustees discussed key questions in
each of the building block areas and identified
some central principles:
• The importance of the Foundation’s
independence and a commitment to preserve
and protect it
• The desire of Trustees to be actively engaged
with the Foundation
• The need to update the Foundation’s governing
and operating policies and documents to assure
their consistency with current best practices
• The need to increase philanthropic support
of the Foundation in order to ensure fulfillment
of its mission in the future
Three working Task Forces were created at the retreat to continue
study, discussion, and detailed planning in designated areas:
Task Force on Governance
and Board Development
Co-Chairs:
Anthony Cafaro and
Jocelyne Kollay Linsalata
Committee Members:
Eugenia Atkinson,
Rex Ferry, Ben Keck,
Richard McLaughlin,
Tom Naughton, William Roesti,
William Russell, and Ted Thornton
Task Force on Financial
Policies and Practices
Co-Chairs: Lee Burdman
and Tom Fleming
Committee Members:
Pete Asimakopoulos,
Tom Cavalier, Frank Hierro,
Garry Mrozek, Carl Nunziato,
Robert O’Leary, John Pogue,
Rick Schiraldi, Reid Schmutz,
Jim Sisek, Richard Thompson,
and Paul Williams
Task Force on Foundation
Mission and the Foundation’s
Relationship with the
University
Chair: Millicent Counts with
YSU President, Dr. Cynthia Anderson
Committee Members: Gary Bitonte,
Trustee Bill Bresnahan, Y.T. Chiu,
Don Constantini, Alan Cope,
Sudershan Garg, Anthony Payiavlas,
Sonny Smith, William Spencer,
Frank Watson, and Bud Williamson
The Task Forces met throughout the fall of 2012, resulting in a plan summarized in this document, “Celebrating 50
Years….focused on the future”. While no strategic plan can chart the course of an organization for 50 years, this
plan is designed to establish directions and priorities for the YSU Foundation as it begins its second half century.
This plan was adopted by the Foundation’s Board of Trustees on February 25, 2013 and will guide the Foundation’s
growth and development through 2018, encompassing its 50th anniversary in 2016.
7
8

Mission and Vision
The Foundation’s work will be guided by its mission statement in order to achieve its vision.
Mission Statement
The Youngstown State University Foundation is an independent, autonomous, private,
non-profit corporation that pursues, manages and distributes resources to support
scholarships and student initiatives, as well as the growth and development of
Youngstown State University.
Vision
The Youngstown State University Foundation will be a catalytic force for the advancement
of YSU, the Youngstown community, and Northeast Ohio, and will be a critical source of
support, opportunity, and excellence for YSU students and faculty.
info@Parkinteractive3D.com
purpose
9 10

Goals
• Follow best practices for governance of institutionally-related foundations in higher education.
• Build a diverse Board of Trustees, composed of individuals with the skills, knowledge,
commitment and experience necessary to govern the Foundation and help to secure the
resources needed to fulfill its mission and achieve its vision.
Governance and
Board Development
• Provide for the full engagement of members of the Board of Trustees, fully utilizing their
unique knowledge and skills.
• Maintain transparency in communication(s) to assure the confidence of alumni, friends,
donors, and the YSU leadership and community.
Strategies
• Review and revise the Code of Regulations to reflect current and best practices.
• Create a supplementary document, Committee Guidelines, to better define committee goals
and objectives as well as expected practices.
• Further clarify the board’s responsibilities to assure active participation.
• Increase the number of standing committees from four to seven, with each Trustee serving
on at least one committee.
• Maximize the influence, experience, and resources of the Board of Trustees to assure that the
YSU Foundation is recognized regionally and nationally as a model university - related foundation.
The strongest aspect of the YSU Foundation is its engaged and
enthusiastic Board of Trustees. Updating the Foundation’s Mission
Statement and Code of Regulations will establish the basis of a new
era of board involvement. In order to continue strengthening its own
effectiveness, the board has established the following goals and
strategies for achieving them.
direction
• In enlisting new members of the board, seek individuals with specific skill sets and knowledge
needed to strengthen its work.
• In enlisting new members of the board, consider YSU alumni of distinction, located throughout
the country, as well as distinguished citizens of the community and region.
On February 25, 2013, the YSU Foundation Board of Trustees voted to adopt a revised Code of
Regulations and supplemental document, “Committee Guidelines.” This revised Code of Regulations
and Committee Guidelines provide greater definition to the roles, responsibilities, terms and expectations
of the Board of Trustees, Officers, and the President. By design, this revised Code of Regulations seeks
to increase the involvement and engagement of the YSU Foundation Trustees.
11 12

Financial Policies
and Practices
Mindful of the Foundation’s mission to pursue,
manage, and distribute resources to support
scholarships, student initiatives, and the growth
and development of Youngstown State University,
effective financial policies and practices are essential
to success. The board has established the following
goals and strategies in order to renew
their effectiveness:
Goals
• Provide support to YSU and its students
consistent with advancing education
and opportunity.
• Pursue investment policies that preserve the
real purchasing power of the Foundation’s
endowment, with a prudent level of
investment risk.
Strategies
• Engage professional investment management.
The YSU Foundation has a long history, dating
back to its origins in 1966, of utilizing
the knowledge of the Board of Trustees and
the President to self-direct investment policies
and practices. Since 1966, scrutiny of nonprofit
organizations has increased exponentially.
There are more rigorous reviews of operations,
finances and transactions by legislators, the
Internal Revenue Service, State Attorney
Generals and the media. It was the consensus
of the YSU Foundation Trustees, in this
environment of greater transparency and
reporting, that employing professional
investment management would assure the
fiduciary responsibility of the Board of Trustees.
engage
On October 17, 2012, the YSU Foundation
Board of Trustees voted to seek and engage
professional investment management. The
standing Investment Committee was combined
with the Financial Policies and Practices
Task Force and empowered to write a Request
for Proposals, interview potential investment
managers, and select an investment manager
for the YSU Foundation.
• Establish investment policies designed to
maximize growth and income while providing
reporting necessary for the board to meet its
fiduciary responsibilities.
Consistent with the Board of Trustees’ fiduciary
responsibilities, a key element in the requestfor-proposals
is managers’ capabilities for
providing Trustees with excellent information.
The professional investment manager will
provide frequent and timely reporting to assure
that the Investment Committee, as well as the
entire Board of Trustees, has an understanding
and input into investment strategies and
performance.
Investment policies to be followed by the
professional manager will be established by the
Board of Trustees, with the goal of preserving
the real purchasing power of the Foundation’s
endowment while also providing support
for students and programs of YSU. The
increased sophistication and resources
available through professional investment
management may also allow for the exploration
of alternative asset classes. The Financial
Policies and Practices Task Force established
the annual investment performance goal at 4%
plus inflation.
• Adopt a revised spending plan.
Since its beginning in 1966, the Foundation has
followed an “income only” spending plan, which
essentially restricted its financial support of YSU
and YSU students to interest and dividends. This
spending policy returned more than 4% until the
recent financial crisis and allowed the foundation
to remain true to the principal of preserving
“Intergenerational Equity.” The foundation now
feels that a 4% spending policy better balances
the needs of today and tomorrow. According to the
NACUBO’s 2011 survey, only 4% of institutionallyrelated
foundations nationwide practice an
income-only policy.
Many experts view the income-only policy as greatly
limiting support to the university and unnecessarily
restricting asset distribution, diversification, and
potential. Most recommend a “total return” approach
to endowment investing and a spending policy that
is a percentage of the endowment’s market value,
adjusted periodically by the board as conditions
may warrant.
On October 17, 2012, the YSU Foundation Board
of Trustees voted to adopt a policy of spending 4%
of a three year rolling average of the endowment’s
market value. It remains within the board’s
authority to alter this policy as conditions may
require in future years. This revised spending
plan will be adopted with the engagement of a
professional investment manager, with the initial
goal of implementation for the 2013 – 2014
academic year.
13 14

Relationship
of the
Foundation
and the
University
The mission of the Foundation requires that it remain
independent, while also maintaining a productive and
effective relationship with Youngstown State University.
Youngstown State University and the YSU Foundation
are strategic partners, unique in their organization and
governance, yet focused on a common goal: to provide
student access and excellence in programs at YSU.
Establishing a clear understanding between the Foundation
and University on their respective roles is important.
The Foundation’s Board of Trustees has established the
following goals in this area, with strategies for achieving
them in the years ahead:
Goals
• Maximize operational efficiencies and eliminate
redundancies in all areas where the YSU
Foundation and the University interface.
The competition for students in higher
education has never been greater. The YSU
Foundation, providing over $5 million in annual
scholarship aid, has historically designed
scholarship awards to provide access to
attend YSU. Working strategically with the
YSU Office of Financial Aid and Scholarships,
the YSU Foundation will seek ways to offer
new and existing scholarships sooner and in
turn, hopefully utilizing Foundation-funded
scholarships to inspire students to select
YSU over other institutions.
• Work to maintain a continued cooperative
relationship with University Advancement
division to assure alumni and friends are
presented with an integrated and consistent
fund raising plan.
The YSU Foundation and the Office of
University Development have distinct strengths
and areas of greater impact. The Office of
University Development is designed and highly
efficient at accepting, processing, and
recording annual fund gifts. Over the
past year, the majority of annual gift
processing previously processed by the
Foundation has been moved to University
Development, including all gifts to the Paula
and Anthony Rich Center. Coordinating and
cooperating gift solicitations is critical to ensure
that alumni and donors are not approached
multiple times and that they are approached
with the opportunity to impact areas of
the University in which they have the
highest interest.
• Primarily, achieve the most efficient operational
relationships with the Offices of University
Development and the Office of Financial Aid
and Scholarships.
Strategies
• Assure effective use of scholarship resources.
The YSU Foundation will strive to design new
scholarships and implement existing scholarships
in a way that attracts students and reduces their
financial burden in attending YSU.
Youngstown State University Foundation
Destination of Funds Allocated to YSU
$5,157,940
$2,600,000
$865,000
$889,940
$135,000
$308,000
$360,000
15
Athletic
Scholarships
* Partial funding provided by YSUF
MLK &
PHEAA**
Scholarships
for Excellence*
Endowed
Scholarships
Programmatic
Support
Dr. Leslie Cockran
University Scholars
Program
Total
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Conclusion
This Strategic Plan will guide the Youngstown State University Foundation as it
strives to serve its mission and fulfill its vision over the period of 2013 – 2018,
encompassing the beginning of its second half century of service in 2016.
Through the efforts of the Board of Trustees, former Presidents and, most
importantly, generous donors, the YSU Foundation assets have eclipsed
the $200 million mark for the first time this past year. On the doorstep of the
Foundation’s 50th anniversary, this is no time to rest on our laurels; rather, this
is an opportunity to seize the moment and to assure that the YSU Foundation
provides Youngstown State University a strategic advantage.
In the ever changing higher education environment, we move into our second
half century re-focused, re-organized and determined to be a catalytic force for
the advancement of YSU. We are confident this strategic planning exercise, and
subsequent implementation of findings, will accomplish this goal.
As discussed in this summary, the Foundation’s Board of Trustees already has
taken actions toward implementation of the Strategic Plan by adopting new
policies and approaches to financial management, funding, and governance.
Other goals will be achieved over the period of the plan. The Board will continue
to monitor progress toward achieving the goals, undertaking revisions to the plan
as needed.

Increasing
Philanthropic
Support
The building block of the YSU Foundation is
philanthropy. All current assets were acquired
either through gifts or revenue generated from gifts.
This is why the YSU Foundation Board of Trustees
approaches its fiduciary responsibility for the assets
of the Foundation with such profound diligence.
A philanthropic investment in the YSU Foundation
is very powerful. A true endowment, gifts to the
Foundation touch generations of students at YSU and
ultimately, over time, will provide far more monetary
support than the original gift.
The Foundation’s 50th anniversary in 2016 provides
a naturally occurring opportunity to celebrate the
tradition of the YSU Foundation and to inspire current
alumni and friends to invest for the next 50 years
and beyond.
Goals
• Increase philanthropic support of
the Foundation.
• Continue to develop the Foundation’s
relationships with donors and
prospective donors.
Strategies
• Increase private giving, primarily through major
gifts and planned gifts.
• Implement varied communication strategies,
including print, Internet, and social media to
communicate with alumni, friends, and donors.
• Acquire new philanthropic software to
more effectively maintain a list of alumni,
friends, and donors to better record and
steward their philanthropy.
• Create more donor recognition programs
through special events and recognition of
donor societies such as the Howard Jones
Tower Society.
• Proceed with planning for a 50th
anniversary campaign.
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Special thanks to:
Creative One Marketing, Design • YSU Office of Marketing Communication • Rasul Welch