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Pittsburgh Promise Summary

Dual Objective of UPMC’s support of the Pittsburgh Promise

  • Making higher education achievable for all residents of the School District of Pittsburgh as they are graduated from the public schools of the School District of Pittsburgh regardless of needs or income, and
  • Enhancing the growth, stability and economic development of the City by providing a substantial incentive for families with school-aged children to remain in, and to move into, the City to take advantage of scholarship funding for post-secondary education.

UPMC Funding Commitment of $100 million

  • $10 million lead gift by June 30, 2008
  • $90 million future commitment based on a match. UPMC will match $2 for each $3 in contributions received by The Promise. The match funding will be an annual maximum of $10 million by June 30 of each year.
  • In the unlikely event of future state legislation that would require UPMC to pay taxes to the City of Pittsburgh and/or the School District, UPMC has the option of taking a dollar for dollar reduction to its commitment to the Promise
  • Additionally, in the unlikely event that UPMC experiences a deficit in operating income in any given year, UPMC could withhold its commitment to the Promise in the following year, to ensure that UPMC remains capable of serving the health needs of the community.

Structure of the Pittsburgh Promise Foundation

  • The Pittsburgh Foundation will create, establish and organize the Pittsburgh Promise Foundation as a non-profit corporation.
  • The Pittsburgh Promise Foundation will be organized and operated as a supporting organization and will carry out the purpose of The Pittsburgh Foundation, a public charity.

Governance of the Pittsburgh Promise Foundation

Board Composition – initially seven members
a. School District Superintendent (no term)
b. UPMC designee (no term)
c. Mayor City of Pittsburgh (no term)
d. All remaining (4) members are appointed by The Pittsburgh Foundation (TPF) with terms of two years. (The TPF members shall always be a majority of the total members)
Authority/Limits of the Board
e. Authority for the management of the business, property and affairs of the promise.
i. Primarily overseeing the scholarship program, payment to colleges, fundraising, overseeing investments
f. Limitation – Board cannot alter the Promise except as approved by Orphans Court
Advisory Board
g. TPF will create an Advisory Board of community constituents, for the purpose among other things of monitoring the Promise’s impact in achievement of the Benchmarks.

Scholarship Grant Criteria

The Board of the Promise will have the EXCLUSIVE responsibility and authority for determining the criteria, parameters and rules for the granting of scholarships to Graduates.
a. Graduates of the class of 2008, 2009 and 2010 receiving awards shall be known as “UPMC Scholars of The Pittsburgh Promise”

Management Arrangements

  • Day to Day management is the responsibility of The Promise and TPF Board
  • Recommendations of Certain positions and Contracts – Promise Board may seek recommendations of the School District and UPMC but not bound by recommendations.

Termination– If, at any point in time, the Board of the Promise determines, for any reason to terminate the program the following will occur:

  • The balance of all Pittsburgh Promise Foundation accounts including amounts pledged and due along with any applicable UPMC match in that year shall be distributed exclusively for charitable purposes with priority given to honoring obligations to students.
  • All future obligations for matching contributions by UPMC shall cease

Benchmarks– The parties will work with an independent, reputable research institute to develop and disseminate useful measures of the program’s impact on an annual basis know as the “Report Card”

  • In recognition of UPMC’s contribution and commitment, the Report Card for school years ending in 2008, 2009 and 2010 shall be called the “UPMC Pittsburgh Promise Report Card to the Community”.

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