The University of Mary Washington’s endowment is expected to surpass $100 million in the next six months, a significant milestone for the institution.
The endowment has been bolstered by a historic $30 million gift made by UMW alumna Irene Piscopo Rodgers (Class of 1959), who died in July 2022. UMW Vice President of Advancement and Alumni Engagement Katie Turcotte said the gift, which is being paid out over multiple years, has spurred other UMW graduates into making donations. The endowment stood at $62 million as of June 30, 2022.
“We’re really starting to hit our stride,” she said.
Turcotte wears a second hat for UMW — executive director of the UMW Foundation, a nonprofit that holds and manages the endowment and other University assets in conjunction with investment advisor Hirtle Callaghan & Co. While overseeing the endowment’s growth, the foundation has shifted away from buying, holding and developing real estate.
A couple of decades ago, according to Turcotte and UMW Foundation Board Chair Anne Steen, UMW was in growth mode. To facilitate future growth, the UMW Foundation embarked on a series of real estate acquisitions and developments on behalf of the University in both Stafford County and Fredericksburg.
Much of the effort focused on the Eagle Village project on U.S. 1 across from the main Fredericksburg campus. The UMW Foundation bought the former Park & Shop retail center in 2007, tore down some of it and began a series of construction projects that included a pedestrian bridge over U.S. 1, student housing, a mixed-use commercial building with a parking garage, and a Hyatt Place Hotel.
UMW Foundation logo courtesy of UMW
The UMW Foundation used private financing for part of those projects, leading to a substantial debt burden cited in a Joint Legislative Audit and Review Commission (JLARC) report that came out earlier this year and cited “poor investment decisions” by the foundation.
Steen said that while she respects the JLARC report, it’s based on data from several years ago. If the study were done again, she thinks the findings would be quite different.
In the past few years, the foundation has sold the majority of its real-estate holdings as the University has made a conscious decision to focus on its self-identified strengths as a small liberal arts institution. The Hyatt Place was sold to Williamsburg-based HMP Properties. The older part of Eagle Village was sold to Broad Reach Retail Partners. The university purchased the student apartments, parking garage and mixed-use building in Eagle Village, as well as the UMW Apartments on William Street.
Thanks to those sales, Turcotte said, in August the foundation was able to pay off its privately held debt — which she said was a significant step in improving its finances. The foundation now owns only a smattering of real estate assets including buildings that UMW uses at 1201 William St. and 1512 William St., and some land in King George and Stafford counties.
“The need for growth is not the same as in the past,” Turcotte said.
The foundation has two additional properties listed for sale: about 448 acres off U.S. 17 in Stafford (land near the UMW Stafford campus, which is not on the market), and 37 acres off State Route 3 in King George County.
Divesting itself of the real estate holdings has allowed the foundation to re-focus on its mission supporting UMW by raising and managing money. UMW in turn uses a percentage of those assets to support students, faculty and programs. The Foundation recently celebrated its 50th anniversary and created a new logo that includes an image of UMW’s iconic Bell Tower — which is intended to be emblematic of the strong working relationship between UMW and the foundation.
“The Foundation and the University have always worked together in a virtuous cycle,” Turcotte said.
Bill Freehling covers local business for the Free Press. He can be reached at: [email protected].
