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Arizona’s Reed-Francois marks two years as she continues to stabilize department

Univ. of Arizona AD Desiree Reed-Francois celebrated her second anniversary in her role after inheriting a stripped-bare football program and a massive budget deficit close to $50M.
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Univ. of Arizona AD Desiree Reed-Francois celebrated her second anniversary in her role after inheriting a “stripped-bare football program” and a “massive budget deficit of close to” $50M, according to Greg Hansen of the ARIZONA DAILY STAR. Reed-Francois also came into the role needing to “rebuild the front office staff and create a new radio/TV broadcast and marketing enterprise.” Reed-Francois labels her first two years as “stabilizing.” But she has “proved her worth by making a series of tough choices, each that affects the school’s budget and on-field success.” Reed-Francois raised roughly $5M a year combined for naming rights to McKale Center and Arizona Stadium, and her “next act will be to sell advertising patches for game-day uniforms for all Arizona sports, a transaction that could mean as much as” $2M more per year. However, “not everyone on campus and in the UA sports community is a Reed-Francois advocate,” as she “hasn’t been afraid to make sometimes unpopular decisions.” Yet she put UA in a “much better position than it was in five, 10, 15 and 20 years ago”
 
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The Short Answer​

The vast majority of the University of Montana's endowment portfolio—well over 90%—is designated with donor restrictions.

True "unrestricted" endowments (where a donor gives a permanent gift but allows the university to use the earnings for any pressing, general purpose) represent a tiny sliver of the overall pool.

The Financial Context​

  • Donor Intent is Rigidly Protected: In its annual endowment reporting, the UM Foundation explicitly notes that it is legally bound to honor donor intent. Because the foundation manages well over a thousand individual endowed funds, nearly all of them are permanently assigned to specific categories: academics, specific departmental support, or student scholarships.
  • Foundation Net Assets vs. Endowment: In the Foundation's overall asset mix, a small portion of net assets is categorized as "without donor restriction." However, these funds are primarily held to cover internal Foundation operations and general university advancement rather than sitting as a flexible, multi-million-dollar general endowment fund.
  • University Operating Budget Contrast: It's easy to mix up endowment funds with the university’s annual operating budget. When looking at the university’s overall yearly expenditures, Current Unrestricted Funds(which are fueled by state appropriations, student tuition, and general investment earnings) usually make up roughly 35% to 40% of the school's total operational cash flow. But this is active operational revenue, not the permanent endowment pool.” Gemini.
 
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