NYU undertakes major drive to raise $2.5 billion

New York University recently announced a plan to raise $2.5 billion over the course of seven years.

As one of the largest fundraising drives ever undertaken by a university, the "Campaign for NYU," has already garnered $50 million through a gift from the Tisch family -- for whom the School of Performing Arts is named -- and $60 million from six trustees, which will be used to hire faculty. This is in addition to the $1.1 billion that the university raised during its three-year "quiet phase."

Over the next four years, NYU hopes to raise $1.4 billion by getting $1 million in pledges per day. This money will be used for scholarships, an increase in faculty, academic initiatives and renovating facilities.

"We have never had a major comprehensive campaign at this level before," said Debra LaMorte, NYU senior vice president for development and alumni affairs.

According to LaMorte, this type of a campaign "reaches out and tries to engage the entire NYU community."

All the administrators at the university are playing a role in raising money.

"It takes a fundraising village to reach and attain this type of a goal," LaMorte said. "It can't fall to one person." Each dean has to conduct fundraising for his school, and volunteers are helping as well.

"We have a whole campaign structure in place to make sure we are achieving our goal."

In the past, NYU's individual schools had to raise their own money. "Now, we are really trying to raise money that is going to take the university forward so that everybody benefits," LaMorte said.

Competition among schools is fierce.

"We have a very small endowment compared to our peer institutions," LaMorte said. "We have had to rely less on fundraising and more on raising our tuition. Any money we have raised, we have spent."

Other schools have conducted similar campaigns in the past.

"Penn was first to cross the billion dollar threshold with 'Campaign for Penn' in 1992," said Sam Lundquist, Penn's assistant vice president for development. "Its goal was $1.1 billion and succeeded in raising $1.4 billion. Since then, other schools have looked to raising in the billion range."

Every school has a different way of raising money.

"When a university is in a campaign, it is counting all gifts in a comprehensive total. Some are very focused," Lundquist said.

Although University President Amy Gutmann has just begun her work at Penn, plans are in the works for the next campaign.

"When [former President Judith] Rodin was preparing to leave, we had already been in discussions with her for Penn's next campaign. We had to wait for President Gutmann to arrive. Penn's next fundraising [project] is being formulated right now but is not finalized."

Like at NYU, virtually all of Penn's administrators play a role in fundraising.

"The fundraising occurs at all levels of the University. The president and deans raise the largest gifts the University will receive," Lundquist said. However, the University employs professional fundraisers, major gift officers and annual fund officers.

"The three big components to raising money at Penn are corporations, foundations [and] individuals."

LaMorte said that even the anticipation of such a campaign is thrilling. "It feels good to be part of something worthwhile," she said. "It is the right time for us and the right move."

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