IRF Update - Jan 28, 2011

Survey: U.S. Education Fundraisers Anticipate Rebound in 2011 Giving

Fundraisers for schools, colleges and universities estimated that giving to their institutions increased an average of 3.7 percent in 2010 over the previous year, according to survey results released earlier this month by CASE. They also predicted further growth of 5.6 percent in 2011.

 The CASE Fundraising Index is conducted twice a year and asks fundraising professionals to estimate the level of charitable giving to their institutions for the 12-month period just ended and to predict the level for the 12-months ahead.

The January CFI's predicted increase of 5.6 percent in 2011 is nearly identical to the 5.7 percent prediction made in July 2010 for the period covering July 1, 2010-June 30, 2011.

CASE President John Lippincott said the consistency of these forecasts made six months apart suggests that fundraisers are experiencing a "less volatile and unpredictable fundraising environment today than during the depths of the recession."

Fundraisers at independent schools-private, K-12 institutions-were the most optimistic of the respondents, predicting an average 6.2 percent increase in donations to their institutions in 2011. Their counterparts at public colleges and universities were the least optimistic at 4.8 percent.

Overall, the CFI results are a good sign for educational institutions, Lippincott said.

"The optimism reflected in the current CFI results is based on fundraisers' day-to-day experiences working directly with donors of all types," he said. "Donors react in part to economic conditions, but also to their commitment to the missions of the institutions they support. Their continued confidence in the work of schools, colleges and universities is notable."

Lippincott stressed that the CFI percentages are averages and that performance at individual institutions will vary based on a variety of factors, such as the maturity of the fundraising program.

CASE conducts the CFI twice each year-once at the end of the academic year (July 1-June 30) and once at the end of the calendar year (Jan. 1-Dec. 31).

The CFI is based on an online survey of senior-level fundraising professionals at more than 2,000 member institutions in the United States conducted during the first two weeks of January. The January 2011 CFI survey had a response rate of 6.1 percent.

The average annual rate of growth used as the norm for the CFI is based on the 20-year mean for results reported in the Voluntary Support of Education survey issued by the Council for Aid to Education.

Register Today for the 19th Annual CASE Conference for Institutionally Related Foundations

Join two-year and four-year public college and university foundation executives from around the country at the 19th annual CASE Conference for Institutionally Related Foundations, April 13-15, 2011, in Phoenix, Ariz. Conference highlights include:

•  A keynote address from Robert Glidden, interim president of the California Polytechnic State University, on the state of public higher education and the role of IRFs
• A panel discussion on how community college foundations can help their colleges achieve President Barack Obama's completion goals with Mark David Milliron, deputy director, postsecondary education, U.S. program, Bill and Melinda Gates Foundation and E. Ann McGee, president, Seminole State College of Florida
• The latest on trends in giving to higher education featuring Stacy Palmer, editor, Chronicle of Philanthropy
• An interactive session on strengthening your foundation executive team facilitated by R.J. Valentino, president and co-founder of The Napa Group  

View the conference schedule and session topics.

Registration, hotel and travel information for the conference is available on the CASE website. Register by Feb. 25 and save $40!

CASE to Launch Advancement Investment Metrics Study in February

CASE is preparing to launch an ambitious and important benchmarking study that will help member institutions benchmark their investments in fundraising and the relationship of this investment to fundraising success.

In addition to providing ranges to help benchmark fundraising by institution type and other factors, the CASE Advancement Investment Metrics Study, or AIMS, will look across advancement at investments and staffing in advancement services, alumni relations, communications and marketing, development and overall management.

Results will help participating institutions benchmark their investments with those of their peers and will contribute to a broader understanding of the relationship of investment to success overall. The survey will be conducted in the CASE Benchmarking Toolkit.

In addition to reporting on the overall findings of the survey, CASE will provide confidential reports to groups of 10 or more institutions that want to look at results within their community of practice. For more information about the survey and how to participate, visit the CASE website.

AIMS is based upon a 1990 study funded by a grant from the Lilly Endowment. The "Lilly study" has been updated by leaders in the field to look not so much at what it costs to raise a dollar, but at the return on the total investment in advancement.

CASE Seeks Director for New Center for Community College Advancement

CASE is seeking a director to lead the new CASE Center for Community College Advancement, which will launch in mid-2011.

The center will focus on developing and delivering training and resources that serve the unique needs of alumni relations, communications, fundraising and marketing professionals at community colleges and their foundations. See the job posting for more information about the position and how to apply.

Headlines

Back to (Semi-) Normal
Inside Higher Ed, Jan. 27, 2011
College and university endowments rebounded from a difficult 2009 with a 11.9 percent average investment return in 2010 according to the annual endowment study conducted by Commonfund and the National Association of College and University Business Officers (NACUBO). Larger endowments tended to outperform mid-size and small endowments, though the averages were very close. Institutions did invest more in "short-term securities/cash/other" than in the past, a potential sign that colleges and universities want to avoid liquidity issues in the future.
Full Article 

Bill Seeks More Financial Data from Private Colleges
Boston Globe, Jan. 25, 2011
Two Massachusetts state legislators have introduced a bill that would require the state's private colleges and universities with investments or property valued at $10 million or more to list and disclose the value of the assets, calculate the benefits they receive from tax exemption and list all employees earning more than $250,000 per year. The legislators argue that their bill will promote greater transparency and will discourage institutions from investing in risky assets.  
Full Article

Obama Calls for Spending Freeze But Says He'll Spare Education
Chronicle of Higher Education, Jan. 25, 2011
In his State of the Union address, President Barack Obama said he would spare education and research funding from his proposed five-year freeze on nondefense discretionary spending. However, House Republicans have already crafted proposals that would cut all nondefense discretionary spending, including education and research, to 2008 levels. President Obama also vowed to veto any legislation with earmarks.  
Full Article (subscription required)

The Sinking States
Inside Higher Ed, Jan. 24, 2011
While overall state spending on higher education declined only slightly in 2010-11, a report by the Center for the Study of Education Policy at Illinois State University and the State Higher Education Executive Officers (SHEEO) suggests that public colleges and universities will see sharper cuts in 2011-12. The impact of federal stimulus funding on state higher education budgets is continuing to decrease. Several states, including California, Texas and Arizona, have already announced plans for significant cuts to higher education in FY2012.
Full Article 

Public Universities Relying More on Tuition Than State Money
New York Times, Jan. 24, 2011
With states continuing to cut funding to public higher education, tuition now covers more than half the costs for most of the nation's public research universities, according to the Delta Cost Project. Current students who selected public institutions over private because of lower tuition are finding themselves in a financial bind.  
Full Article

Public Colleges Step Up Appeals to Alumni Amid Cuts
New York Times, Jan. 15, 2011
Faced with steep cuts in state support, public colleges and universities of all sizes are increasingly looking to philanthropy to fund their programs. Many institutions have chosen to invest in fundraising staff and infrastructure at a time when they are cutting academic programs or laying off staff. Public colleges and universities must ensure that state legislatures do not view increased private support as a substitute for state support.
Full Article

Big Losses Prompt Fresh Look at Investment Model
Financial Times, Jan. 9, 2011
The endowment model of investing, pioneered by Yale University Chief Investment Officer David Swensen, is facing increased scrutiny. Critics of the model, which emphasizes large investments in alternatives over traditional U.S. equities and bonds, claim that too many small and mid-size endowments tried to emulate large endowments like Yale and Harvard and ended up with significant losses. Many institutions are re-considering their investment strategy and moving away from risk.
Full Article

How can I receive the CASE IRF Update in my inbox?

Contact Brian Flahaven, director of legislative, foundation and recognition programs, at flahaven@case.org.