2020 Annual Report

Expenses

TOTAL ADMINISTRATIVE AND INVESTMENT EXPENSES

22,035,562 4,876,342 2,075,234 2,280,806 1,974,693 2,002,324 1,926,757 1,607,734 1,987,071 2019 (7/18–6/19)

25,526,956 5,323,079 2,359,305 2,281,317 2,163,068 1,976,290 1,843,857 1,805,144 1,710,704 1,176,565 1,016,929 2020 (7/19–6/20)

Salaries

Like most charitable organizations, WFAA measures its ratio of expenses to contributions to demonstrate that it is properly managing resources. Our focus is not only on keeping costs low but also on maximizing support, which we measure in net contributions. The tables at right track expenses and compare them to new gifts and pledges over the last decade, from January 2011 through June 2020. In 2016, WFAA changed its reporting cycle from calendar year to a fiscal year that begins on July 1, as part of the reorganization following the merger of the UW Foundation and the Wisconsin Alumni Association. Below is a chart showing net contributions. While the cost of raising a dollar is calculated as a percentage — expenses divided by total contributions — net contributions are calculated

by subtracting expenses from total contributions. Net contributions show in raw dollars how much WFAA has raised in each year. Note that we have annualized the figures for the 2016 six-month fiscal year adjustment. During UW–Madison’s All Ways Forward campaign, WFAA has seen an increase in both its expenses and in value generated. WFAA has expanded efforts that invest in advancement and engagement for the UW, as well as in support of the campaign itself. In return, contribution revenue has grown rapidly, and the campaign surpassed its goal in October 2019. The campaign was originally scheduled to close at the end of 2020, but due to the pandemic, WFAA decided to extend the campaign by a year, in hopes that post-pandemic giving would help the university address pressing needs.

Employee benefits

Information technology

Depreciation

Conferences, conventions, and meetings

Office expenses

Advertising and promotions

Payroll taxes

Professional services

Bad debt expense (unfilled pledges)

580,776

Occupancy

1,039,264

Travel

527,569 393,981

613,959 361,327 897,841

Insurance

Income taxes

(400) 2,882

Other

5,908

TOTAL

$48,107,246

$44,265,598

ADMINISTRATIVE EXPENSES AND CONTRIBUTIONS, 2011–20

COST OF RAISING A DOLLAR

ADMINISTRATIVE EXPENSES (excluding investment expenses)

ROLLING FIVE-YEAR AVERAGES

(as a percentage of contributions)

TOTAL CONTRIBUTIONS

NET CONTRIBUTIONS

ENDING IN YEAR SHOWN

2020 2019 2018 2017 2015 2014 2013 2012 2011

48,107,246 43,367,757 45,552,238 49,281,002 21,927,288 45,794,113 36,855,944 28,452,725 30,583,644 29,663,375

304,160,374 341,625,459 313,184,081 338,449,963 151,643,056 543,596,612 380,492,270 266,855,030 211,288,562 197,541,841

15.8% 12.7% 14.5% 14.6% 14.5%

256,053,128 298,257,702 267,631,843 289,168,961 129,715,768 497,802,499 343,636,326 238,402,305 180,704,918 167,878,466

Expenses

Net Contributions

$350 $300 $250 $200

$325.7 $331.5

$322.5

$304.0

$285.7

$274.1

2016 (6 mos)

8.4% 9.7%

$150 $100 $50 0 MILLIONS

10.7% 14.5% 15.0%

$46.0

$45.6

$44.3

$40.8

$34.3

$37.1

2015

2016

2017

2018

2019

2020