Donations to Penn remain strong despite nationwide drop

Penn received an increase in voluntary donations during Fiscal Year 2002 despite an overall drop in gifts to institutions of higher education. According to a survey released last week by the Council for Aid to Education, a branch of RAND, a research institute, gifts to institutes of higher education have dropped for the first time in 15 years. The annual Voluntary Support for Education survey showed that private gifts to colleges and universities declined by about 1.2 percent in FY 2002. Alumni giving saw the most significant overall decline -- a drop of about 14 percent. Although the struggling stock market and weak economy contributed to considerable declines in donations at many schools, Penn ranked fifth among the nation's top 10 fundraising institutions for the year. The University received a total of about $320 million in voluntary donations, up from $286 million in Fiscal Year 2001. Penn did not experience the drop in alumni gifts that hit many other institutions hard. "Penn alums are responding to the University's needs," said Kenneth Goebel, director of the Penn Fund, the organization that oversees all fundraising from undergraduate alumni. "We are seeing... that the number of undergrad alumni giving to Penn has increased substantially." In 2001, Penn ranked 11th in the VSE survey, according to Ann Kaplan, director of the survey. "Being at the top of the list usually has to do with a few major gifts and their time of arrival," Kaplan said. Goebel cited major projects such as Huntsman Hall and Pottruck Health and Fitness Center as a large part of why overall giving is in a good position at Penn. "Part of what is maintaining donations is Penn's momentum and enhanced status as a university," Goebel said. "Dr. Rodin's leadership is a key part of that." The University of Southern California beat Harvard University as the leading fundraising institution in FY 2002. USC raised more than $585 million, according to a RAND news release on Thursday. "USC received two very large gifts, of 100 million and 80-some million," Kaplan said. "Those two gifts alone put them at the top." Cornell University ranked fourth, behind USC, Harvard and Stanford University, totaling $363 million in funds raised over FY 2002. "We were very fortunate last year and saw an all-time record in giving," said Inge Reichenbach, vice president for alumni affairs and development at Cornell. "Significant gifts make a big difference, and in alumni giving alone, Cornell ranked first," she added. According to Kaplan, the hardest-hit institutions were private liberal arts colleges. "They are very dependent on alumni giving and voluntary support," Kaplan said. "The larger research institutions are relatively less dependent on alumni." Kaplan also noted that although voluntary support represents about 8 percent of total endowment on average, it makes up about 25 percent at most small liberal arts institutions.