As you have just read, the Master Plan offers a visionary and exciting look at the future of APU, but the improvements it outlines require significant financial resources. These changes combined with an annual operating budget of over $12 million means that APU must have reliable sources of income year-in and year-out to meet its annual budgetary needs. Student tuition covers only 60% of what it costs to operate the university on an annual basis. The remainder of the monies needed to balance out our budget come from a Platform of Support with four main pillars:

Fund Raising

APU Foundation

Cash Reserves

Endowment Properties

APU’s Annual Fund goal is to raise $1.2 million dollars each year. Donations come from friends of the university, Alumni, foundations and corporations. Gifts to the Annual Fund help pay for the general operations of the university including academic programs, faculty and staff salaries, student services, facilities maintenance and much more.

Alaska Pacific University Foundation was established over 10 years ago through generous support of community members. Since then it has grown to over $10 million and the annual distribution of 5% of the value of endowment significantly adds to the university’s bottom line.

A Capital Campaign is a fund raising campaign for special needs or projects like renovations or the construction of a new building. Campaigns do not provide a steady means of support for the university but they are valuable in helping to make projects possible which are not funded through our annual operating budget. A Capital Campaign is currently underway to help fund the renovations to Grant Hall.

The University’s Cash Reserves are primarily invested in fixed income investments and monies are distributed to the university from the reserves each year. The target annual distribution is about $500,000. Our Cash Reserves are a representation of Alaska Pacific University’s prudent business practices.

Endowment Properties generate income through lease payments. Currently Gould Hall and Grace Hall are being leased to the USGS and are an example of the use of endowment properties. Further development of endowment properties is being considered.