The University is taking a wait-and-see approach to evaluating how the recent chaos on Wall Street will affect fundraising.
The fall of major financial firms like Lehman Brothers Holdings and Merrill Lynch & Co. has left University officials concerned, but they are not yet making any major decisions or assessments about Penn's $3.5 billion capital campaign.
"I would be very surprised if the financial markets didn't affect us this year," Penn President Amy Gutmann said. "They're going to affect everybody."
Vice President for Development and Alumni Relations John Zeller said that while the University is understandably anxious, "it is too early to say" how strong the impact will be.
"There is a long way to go" in the capital campaign, he said.
The campaign was fully intended to be a seven-year effort, Zeller said. Its economic modeling takes into account the possibility of financial setbacks.
"The events of the last week or two will impact timing of support," said Zeller. "But there are still four more years to go."
Recent crisis in the financial sector has left Penn officials thankful for the strong kickoff of the campaign's public phases last year.
As of Aug. 21, the capital campaign had raised $2.125 billion, putting it at 61 percent of the goal.
"That has given us an incredibly strong foundation," Gutmann said.
Philanthropy experts say universities should be concerned but not panicked about the current climate for fundraising.
"Giving does follow the economy as a general rule," said Sharon Bond, spokeswoman for Giving USA, a non-profit organization that conducts philanthropy research. But, "people do keep giving," she said.
Bond added that philanthropic donations have increased every year for the past 40 years, except for 1987, when there was a change in tax exemptions.
Statistically, when the economy is in recession, giving falls about 1.1 percent, Bond said. During a slow down, giving decreases by .5 percent. Non-recession years generally see a 4.3 percent increase.
"We'll keep our eye on our long-term goals and do our best to weather our short-term dislocations," Gutmann said.
She added that, "it's too soon to say" whether campaign goals will shift.
Giving USA suggests that organizations assume a more direct approach when fundraising during a recession.
"Make sure you have a good case for asking" Bond said. "Advocate for the organization's vision and purpose."
Penn, Zeller said, has assumed such a position. The University tries to show potential donors the exact goals and initiatives that their gift will help the University achieve.
