Timber Makes a Nice Foundation

1988 

Timberland investment begins with gift of partial interest in 900 acres and $4.2 million purchase of more than 4,500 acres.

1992

Total foundation assets reach $100 million.

1995

Assets top $200 million.

1997

Foundation purchases more than 55,000 acres of timberland. Total assets top $300 million.

2020

Assets top $400 million.

2025

All-time timber revenue tops $166 million. Total assets top $455 million. To-date contributions to the University of South Alabama exceed $278 million.

THOUSANDS OF SOUTH STUDENTS every year get opportunities to learn from first-rate teachers and researchers, and USA Health patients benefit from highly skilled care providers and state of-the-art equipment — with a big assist from the University of South Alabama Foundation. Its go-to investment shoots sky-high: trees.

Since its inception in 1968, the USA Foundation has contributed more than $278 million to the University and USA Health. In the last two decades alone, contributions include nearly $12.5 million in scholarships, $28.5 million for faculty support to help attract and retain top talent, and almost $99.3 million for academic programs — totaling more than $140 million. 

The foundation’s multimillion-dollar yearly support for the University derives from careful planning, close collaboration with University leadership and an investment portfolio designed for the long term.

That’s where the trees come in. While most of the foundation’s investments are in marketable securities including stocks, the foundation owns 77,585 acres of timberland in Alabama and in Mississippi valued at $177.9 million, or 39% of net assets. As investments go, trees are things of beauty — stable, renewable, environmentally friendly and good for wildlife.

“Timber is a renewable resource that allows the Foundation to harvest approximately 1,500 acres per year,” says Managing Director Maxey Roberts. “It’s an amazing stream of income.” It also creates jobs in areas of limited economic opportunities, while hunting fees provide additional revenue.

The foundation was established five years after the University was founded in order to create an endowment for the growing institution. It was set up as an independent, tax-exempt entity, insulated from political pressures. Initial assets totaled $100,000.

Major gifts to the University and USA Health include early commitments to help fund the construction of the Mitchell Cancer Institute and a 2010 expansion of Children’s & Women’s Hospital. A $30 million gift is supporting construction of the Frederick P. Whiddon College of Medicine building, and property donated on Dauphin Island is being used to construct an outdoor classroom on Aloe Bay. 

“I am just thrilled that the Foundation has been able to be an integral part of all the great things that are going on,” says longtime Foundation President John McMillan. “That’s the only thing we’re here for is to support the University.”