Engineering gifts see shift in main source

The School of Engineering and Applied Science is feeling the direct effects of corporate downsizing and the instability of the stock market, as the primary source of the school's grants and donations has shifted from corporations to individuals. In fiscal year 1997, $5 million of the school's $8.8 million in donations came from individuals such as undergraduate and graduate alumni, parents and friends of the school. Foundations, by contrast, donated approximately $2.1 million, with corporations contributing the remaining $1.7 million. Engineering School Executive Director of Development George Hain attributed the dominance of individual gifts to the current strength of the stock market,which has "helped Americans feel a little wealthier." "Our emphasis is currently on cultivating individuals," Hain said. "They are our ticket to the future." Although eligibility for a sizeable tax deduction provides incentive for individual donors, they often prove to be philanthropists as well, Hain said. "They believe in the mission of the school, and they want to support that mission," he added. The increase in individual donations coincides with a decrease in the amount of corporate gifts. Hain attributed the trend to the affects of corporate downsizing, which has left companies with less money to give. And the money they do give often requires some type of "return," such as the naming of a lab or a lectureship after the company, Hain added. "Company donations are no longer due to 'pure philanthropy,' as they want to see a return on their investment," he said. "They have to make it worth their while." Hain said many companies' desire for exposure within the school has replaced philanthropic motivation. "They want their names to mean something to the students when they return to recruit," he added. Additional "paybacks" to corporations includes assistance in research and the use of company equipment with the hope that students will become familiar with the equipment and purchase it in the future. But the Engineering School is not ruling out companies as a viable source of funding, as officials will focus their efforts on Philadelphia corporations like telecommunications and pharmaceutical companies. "Since they recruit often due to proximity, it is more likely that they will give us money," Hain said. Donations -- used for student and faculty support as well as building-- typically add approximately $3.5 million a year to the school's endowment, Hain said. The Engineering School has seen a continual increase in donations in the past few years, and Hain said he believes the upward trend will continue with the help of Engineering Dean Gregory Farrington. "Greg Farrington is a very good fundraiser who cares passionately about the school," Hain said. "He is a major asset."