The Tower Foundation directly manages all financial aspects of funds donated to San Jose State University. The Tower Foundation is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code. It is certified as an auxiliary in good standing with the California State University System. An international accounting firm audits the foundation’s financial records annually.
We are pleased to make available to you our audited financial statements, IRS Forms 990, other regulatory filings of interest, and information about our investments.
For the fiscal year ending June 30, 2018, the Tower Foundation was audited by RSM LLP, Certified Public Accountants. The audit was conducted in accordance with generally accepted auditing standards and, in their opinion, the financial statements presented fairly, in all material respects, the financial position of Tower Foundation as of June 30, 2018 in conformity with accounting principles generally accepted in the United States of America. Their independent auditor's report expressed an unqualified opinion.
- Financial Statements For Fiscal Year Ending June 30, 2018 [PDF]
- Financial Statements For Fiscal Year Ending June 30, 2017 [PDF]
- Financial Statements For Fiscal Year Ending June 30, 2016 [PDF]
- Financial Statements For Fiscal Year Ending June 30, 2015 [PDF]
- Financial Statements For Fiscal Year Ending June 30, 2014 [PDF]
- Financial Statements For Fiscal Year Ending June 30, 2013 [PDF]
- Financial Statements For Fiscal Year Ending June 30, 2012 [PDF]
Statement of Information
- SI-100 For Fiscal Year 2017 [PDF]
- SI-100 For Fiscal Year 2015 [PDF]
- SI-100 For Fiscal Year 2014 [PDF]
- SI-100 For Fiscal Year 2013 [PDF]
Tax Returns (IRS Forms 990)
- IRS 990 For Fiscal Year Ending June 30, 2017 [PDF]
- IRS 990 For Fiscal Year Ending June 30, 2016 [PDF]
- IRS 990 For Fiscal Year Ending June 30, 2015 [PDF]
- IRS 990 For Fiscal Year Ending June 30, 2014 [PDF]
- IRS 990 For Fiscal Year Ending June 30, 2013 [PDF]
- IRS 990 For Fiscal Year Ending June 30, 2012 [PDF]
Tax Returns (FTB Form 199)
- FTB Form 199 For Fiscal Year 2017 [PDF]
- FTB Form 199 For Fiscal Year 2016 [PDF]
- FTB Form 199 For Fiscal Year 2015 [PDF]
- FTB Form 199 For Fiscal Year 2014 [PDF]
- FTB Form 199 For Fiscal Year 2013 [PDF]
CA Annual Registration Renewal Fee Report (RRF-1)
- RRF-1 For Fiscal Year 2017 [PDF]
- RRF-1 For Fiscal Year 2016 [PDF]
- RRF-1 For Fiscal Year 2015 [PDF]
- RRF-1 For Fiscal Year 2014 [PDF]
- RRF-1 For Fiscal Year 2013 [PDF]
CSU Chancellor's Office Audit Reports
Donor Honor Roll and Tower Foundation Annual Report
- Fiscal Year Ending June 30, 2014 [PDF]
- Fiscal Year Ending June 30, 2013 [PDF]
- Fiscal Year Ending June 30, 2012 [PDF]
A large endowment strengthens a university's academic reputation. An endowment grows when alumni and friends want to create a lasting legacy for future generations.
The value of a university endowment makes a statement about the value of every degree granted.
The SJSU endowment portfolio is comprised of over 600 individual funds benefiting all areas of the campus -- from the colleges to the Dr. Martin Luther King, Jr. Library, to intercollegiate athletics and other university-wide programs. Most endowments are restricted to specific uses such as establishment of a scholarship, support for a center, or creation of an endowed chair.
At over $150 million, the SJSU endowment continues to grow. In fiscal year 2017-18, more than $5.6 million of new principal was added to the endowment. Our one-year composite return as of June 30, 2018 was 6 percent, the three-year composite was 5.6 percent and the five-year composite was 6.6 percent. Investment Holdings [PDF].
SJSU's endowment is ranked 391 out of 809 universities reporting endowments. This is up from our ranking of 398 in 2016, and 409 in 2015. The 2018 annual endowment standings published by the National Association of College and Business Officers show that 106 universities have endowments that top $1 billion.
The Tower Foundation works with investment firm Beacon Pointe Advisors to allocate the endowment assets to a diversified portfolio of domestic and international equities, fixed income, real estate, cash equivalents and other investments as required by our Investment Policy [PDF], all of which reflect varying rates of return. The long-term financial objective of the portfolio is to produce a relatively predictable and stable spending stream each year and to grow both the spending stream and the corpus over time, at least keeping pace with the general rate of inflation.
As California's public universities continue to face budget challenges, SJSU's endowment becomes even more important to its success. The 2019 endowment distribution of $5.4 million is helping to fund programs that are vital to San Jose State. Income from the endowment provides student scholarships, such as the Simpkins Family Donor Advised Endowment Fund; vibrant programs, such as the ISEF 2010 Center for STEM Education, the Natalie and James Thompson Gallery and the Valley Foundation School of Nursing Endowments; and sustainable fellowship and faculty support programs, such as the Martha Heasley Cox Steinbeck Fellowship and the Newnan Brothers Excellence in Teaching endowments.
The 2019 annual distribution was 4 percent of the average market value of the endowment
for the previous three years ending December 31. According to a survey conducted by
the Council for Advancement and Support of Education, university distributions typically
range from 3 to 5 percent of the market value of the endowment. SJSU's 4 percent distribution
was approved by the Tower Foundation Board of Directors and was consistent with CSU
distribution recommendations. A three-year average is used to minimize the impact
of market fluctuations on the endowment funds and is consistent with practices adopted
at other leading universities. A 2 percent management fee is charged to endowments
with total gifts of under $1 million and 1 percent for endowments with total gifts
of at least $1 million. The fee covers administrative costs and provides a sizeable
investment SJSU's fundraising efforts.
CSU Philanthropic Support
Private support helps the California State University open access to a broad and diverse student population, build technologically advanced libraries and classrooms, and support innovative teaching models and partnerships. Our students and programs continue to inspire generosity from forward-thinking individuals and organizations who invest in the CSU mission. Learn more about the impact of giving by visiting our Philanthropic Support site and reading the Annual Report on Philanthropic Support [PDF].