Cal U sees fundraising drop by $2.3 million
California University of Pennsylvania had a decrease of $2.3 million in its fund-raising in 2001-02, but university officials say the decrease is partially due to a “spike” in donations the year before. Cal U’s private fund-raising dropped from $3.7 million in 2000-01 to $1.4 million in 2001-02.
Michelle McCoy, director of public affairs, partially attributes the drop to large donations the year before.
“Sometimes, we will receive an unexpected, large gift during the year that will not recur the following year. For example, Libby Dodson’s million-dollar gift to the Michael and Julia Kara Alumni House,” she said. Cal U’s total of $3.7 million raised in 2000-2001 was the third highest among the 14 universities. Cal U was tied for last among the Pennsylvania’s 14 state-owned universities in fund raising last year.
The 14 universities had a $3 million decline in private fund-raising for the fiscal year that ended June 30, according to a report released by the university system officials. Cal U’s $2.3 million drop in donations was the largest of any of the universities.
Overall, nine universities had declines and five had increases. Clarion University had the second highest decline in donations dropping $1.4 million from $3.2 million in 2000-2001 to $1.8 million last year.
Kutztown had the biggest increase taking in $3.7 million last year compared to $2.4 million the year before.
The State System of Higher Education schools received a combined $37.4 million in gifts from individuals, corporations, alumni, foundations and other donors, a 7 percent decrease from the $40.4 million raised during the fiscal year that ended June 30, 2001.
The combined market value of the school’s endowments also shrank during the same period from $152.6 million to $146.1 million.
Edward J. Nolan, vice chancellor for system relations and advancement, said the decline was not surprising, considering that the stock market’s decline and other economic woes have hurt all types of charitable giving nationally.
But Nolan said, averaged over three-year periods, the system’s fund-raising has experienced consistent growth over the past decade from $21.2 million raised between 1993 and 1995 to $37.7 million between 2000 and 2002.
“We’re confident that barring any long-term slowdown of the economy, this trend will continue,” Nolan said.
While Cal U officials recognized the country’s sluggish economy, they don’t feel it was the major reason for their $2.3 million drop in donations.
“When the economy is lagging, unfortunately, we tend to receive smaller or fewer gifts. We believe the economy has had an effect on giving, but it’s important to realize that sometimes you get a large gift that just doesn’t recur,” McCoy said.
McCoy also attributed the drop to financial reporting, explaining that “numbers vary depending on whether the dollars are accounted for during the calendar or the fiscal year.”
“Sometimes gifts are accounted for in a fiscal year and sometimes during a calendar year and that will affect the reporting,” McCoy said.
McCoy said while the university is giving the matter attention, the decline in donations will not affect programs, fees or tuition.
“The university budget is not solely funded through gifts. We rely on state appropriations and tuition,” she said.
McCoy explained that private donations are not generally used for the everyday operations of the university and have little to do with tuition, fees for service and programs. She said private donations are primarily earmarked for scholarships and such. She explained that donors can designate where their funds go and often choose to benefit certain clubs, organizations, sports teams or special projects.
To help take up the slack, McCoy said Cal U’s Department of University Advancement is exploring innovative and exciting new fund-raising efforts this year. “We commit ourselves to working harder at building relationship that result in consistent donors. But the donors can decide where they want that money to go,” McCoy said.