Report: Gifts to universities flat despite market recovery

Back to TopCommentsE-mailPrintBookmark and Share

Stanford University and Harvard University, the top fundraisers among U.S. colleges, saw donations decline in fiscal 2010 as a recovering stock market failed to instill donors with confidence.

Donations to the nation’s colleges rose 0.54 percent to $28 billion in the 12 months ended June 30 from $27.9 billion a year earlier, the Council for Aid to Education, a nonprofit organization in New York, said Wednesday in a report. When adjusted for inflation, the amount fell 0.62 percent. Gifts to Stanford fell 6.4 percent to $599 million, while Harvard saw a decline of 0.78 percent, to $597 million, according to the report. Stanford topped Harvard for the sixth year in a row.

The national total for gifts to universities rose less than the stock market because donors didn’t regain confidence, said Eugene R. Tempel, president of the Bloomington-based Indiana University Foundation, whose fundraising surged 38 percent to $343 million mostly because of a $60 million injection from Indianapolis-based Lilly Endowment Inc. The Standard & Poor’s 500 Index rose 12 percent in the year ended June 30.

“The stock market increased dramatically, but it’s not back to where it was and people still don’t have the same wealth that they used to have and they remember that,” Tempel, 63, said in a telephone interview.

More donors are emerging now, Tempel said. The Indiana foundation received 425 gifts of stock in December, up from 322 a year earlier, according to data from the university. Donations to U.S. colleges can be expected to climb for fiscal 2011 “if the S&P continues to hold,” Tempel said. The S&P index has risen 27 percent so far in fiscal 2011.

College gifts outperformed the S&P index in the decade through June 30, rising 21 percent from $23.2 billion at the end of fiscal 2000. The S&P index fell 29 percent during the period.

Stanford, near Palo Alto, Calif., raised the most money in fiscal 2010, and Cambridge, Mass.-based Harvard placed second, according to the council report. Of the 20 universities that collected the most, 13 recorded declines from fiscal 2009.

“Our donor constituency was still recovering from the dramatic stock market decline and economic recession that began in 2008 and continued well into 2009,” Martin Shell, Stanford’s vice president for development, said in an e-mail.

The U.S. recession that began in December 2007 ended 18 months later, in June 2009, according to the National Bureau of Economic Research, in Cambridge.

Stanford’s 8.5 percent growth in donors to 76,500 in fiscal 2010 is an indicator of future support, Shell said in a telephone interview.

Alumni of Stanford, which opened in 1891, include Philip Knight, 72, chairman of Nike Inc., based in Beaverton, Oregon.

Harvard, the nation’s richest university, was “very pleased with the momentum that we have seen,” Tamara Elliott Rogers, vice president for alumni affairs and development, said in a statement. “Last year, Harvard fundraising held steady despite the unpredictable economic circumstances that all alumni and donors faced.”

Harvard, established in 1636, counts among its alumni the philanthropist David M. Rockefeller Sr., who said in 2008 he would give $100 million to the university. Harvard won’t receive the gift until Rockefeller’s death, according to a statement at the time of the donation. Rockefeller is 95.

Gifts to Cornell University, in Ithaca, N.Y., fell 31 percent to $308 million, after the total for fiscal 2009 was fattened by $170 million from Sanford Weill, 77, the former chief executive officer of New York-based Citigroup Inc., and his wife, Joan.

“Large gifts play a big factor in the numbers for all universities and it certainly influenced ours as well,” Charlie Phlegar, Cornell’s vice president for alumni affairs and development, said in a telephone interview.

Yale University, in New Haven, Conn., recorded a 6.4 percent gain in gifts to $381 million, according to the survey. On June 30, Yale will end a five-year campaign to raise $3.5 billion. In December, the university said it received a $50 million commitment from Edward P. Evans, a former publishing executive, to help construct a building for the School of Management. Evans died on Dec. 31, at age 68, the Associated Press reported.

The council survey counts money received by colleges in the fiscal year, including cash, stocks and real estate. Pledges don’t count. The annual report is based on survey responses from 996 institutions. For fiscal 2009, the report showed that contributions fell 12 percent, the most in at least four decades.

“Before giving is going to rebound strongly, people have to be confident in the future of the economy as opposed to merely secure just in the present moment,” Ann E. Kaplan, the survey director, said in an interview.


Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. Of what value is selling alcoholic beverages to State Fair patrons when there are many families with children attending. Is this the message we want to give children attending and participating in the Fair, another venue with alooholic consumption onsite. Is this to promote beer and wine production in the state which are great for the breweries and wineries, but where does this end up 10-15 years from now, lots more drinkers for the alcoholic contents. If these drinks are so important, why not remove the alcohol content and the flavor and drink itself similar to soft drinks would be the novelty, not the alcoholic content and its affects on the drinker. There is no social or material benefit from drinking alcoholic beverages, mostly people want to get slightly or highly drunk.

  2. I did;nt know anyone in Indiana could count- WHY did they NOT SAY just HOW this would be enforced? Because it WON;T! NOW- with that said- BIG BROTHER is ALIVE in this Article-why take any comment if it won't appease YOU PEOPLE- that's NOT American- with EVERYTHING you indicated is NOT said-I can see WHY it say's o Comments- YOU are COMMIES- BIG BROTHER and most likely- voted for Obama!

  3. In Europe there are schools for hairdressing but you don't get a license afterwards but you are required to assist in turkey and Italy its 7 years in japan it's 10 years England 2 so these people who assist know how to do hair their not just anybody and if your an owner and you hire someone with no experience then ur an idiot I've known stylist from different countries with no license but they are professional clean and safe they have no license but they have experience a license doesn't mean anything look at all the bad hairdressers in the world that have fried peoples hair okay but they have a license doesn't make them a professional at their job I think they should get rid of it because stateboard robs stylist and owners and they fine you for the dumbest f***ing things oh ur license isn't displayed 100$ oh ur wearing open toe shoes fine, oh there's ONE HAIR IN UR BRUSH that's a fine it's like really? So I think they need to go or ease up on their regulations because their too strict

  4. Exciting times in Carmel.

  5. Twenty years ago when we moved to Indy I was a stay at home mom and knew not very many people.WIBC was my family and friends for the most part. It was informative, civil, and humerous with Dave the KING. Terri, Jeff, Stever, Big Joe, Matt, Pat and Crumie. I loved them all, and they seemed to love each other. I didn't mind Greg Garrison, but I was not a Rush fan. NOW I can't stand Chicks and all their giggly opinions. Tony Katz is to abrasive that early in the morning(or really any time). I will tune in on Saturday morning for the usual fun and priceless information from Pat and Crumie, mornings it will be 90.1