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United States, University see decrease in giving

Nonprofit organizations cope with decline in private donations; University targets young alumni in hopes of creating lifelong patterns

The United States has seen the most significant decline in giving to nonprofit organizations since 1991, according to a recent report from the Chronicle of Philanthropy.\nThe report, which ranked the top 400 nonprofit fundraising organizations, found that there was an 11 percent decrease in philanthropic donations nationwide. The rankings - which included more than 100 colleges and universities - are based on data from the 2009 fiscal year and placed the University at 71st overall and first among higher education philanthropic institutions within the commonwealth.

But like the rest of the country, the University has seen a decline in giving, which is largely the result of "the most severe [economic recession] in several recessions," said Bob Sweeney, senior vice president for development and public affairs. During the past few decades, the University has seen the funding it receives from the state steadily drop - to the point where it is now only 6 percent of the operating budget - meaning that private donations are all the more essential.

Private support is a "crucial financial variable that will determine the overall quality of this university," Sweeney said.

In an effort to increase private donations, the University embarked upon a $3 billion fundraising campaign, known as the capital campaign. The University hoped to raise the amount during the course of five years. With just more than a year remaining, about 2.3 billion in commitments has been raised thus far, Sweeney said, adding that he believes the campaign will reach its goal.

Alumni donations make up the largest chunk of the funds raised for the capital campaign, accounting for about 40 percent of the money raised so far, said Thomas Faulders, president and chief executive officer of the University Alumni Association.

The percentage of alumni who donate to the University is usually in the low 20s, Faulders said, which is "very high" for state schools, where the typical percentage is in the single digits or low teens. This statistic, however, is still well behind those reported by private Ivy League schools, which see donations from an average of 60 percent of alumni, he said. Nevertheless, the Chronicle report ranked the University as within the top 25 colleges.

Sweeney noted that alumni will be more likely to give because "they know better than anyone the transformative nature of this university." The University specifically targets young alumni in hopes of establishing a lifelong pattern of giving and makes a point of using social networking tools to create these relationships.

Other university cultures apply much heavier pressure to their young alumni. According to an Oct. 24 article in The Chronicle of Higher Education, Dartmouth College and Cornell University both published the names of seniors who do not contribute to this year's class gift. The one student from Dartmouth's class of 2010 who did not contribute to the gift was criticized in the school's paper and online.

The University does not name those that do not give but rather focuses on creating excitement about donating and showing students and alumni why it is important to give back, Sweeney said. The University encourages autonomy in its students, Sweeney said, and the decision to give is no different.

Donating to the University, he said, is a decision that is a "tangible expression of their ownership, love, commitment, and involvement in the University."

As the economy begins to recover, Faulders said he sees positive signs for the future.

"We are hoping, with the improvement of the economy, that [private donations] will go back up again," Faulders said.

The University has ranked among the top 400 philanthropic organizations every year since 1991, when the survey was first began.

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