IRF Update - March 1, 2012

Take the IRF Data Book Survey by March 9

Register today to complete the IRF Data Book survey and get access to benchmarking data related to the structure, staffing and operations of institutionally related foundations. Survey deadline is Friday, March 9.

Foundations registered for the IRF Data Book will be able to:

• Compare their foundation's funding and operations with their peers,
• Pull comparison data at any time for foundation staff or board meetings,
• Choose specific foundations to benchmark against and
• Learn about the latest trends in IRF management and operations.

Foundations interested in accessing the IRF Data Book must register to use the CASE Benchmarking Toolkit. Detailed instructions are available on the IRF Data Book page.

CASE will share survey results and overall trends and provide training on how to use the benchmarking features of the toolkit at the 20th Annual CASE Conference for Institutionally Related Foundations, April 18–20, 2012, in Chicago.

Contact Brian Flahaven (flahaven@case.org or 202-478-5617) or Heather Harmon (hharmon@case.org or 202-478-5622) with questions.

Carter, Reid Named Recipients of 2012 CASE Commonfund Awards

CASE has announced the 2012 winners of the CASE Commonfund Institutionally Related Foundation awards.  

The 2012 recipients are:         

• John B. Carter Jr., president and chief operating officer of Georgia Tech Foundation
• Betheny L. Reid, president of the Dallas County Community College District Foundation

Carter and Reid will be honored April 19 at CASE Conference for Institutionally Related Foundations in Chicago.

The CASE Commonfund awards recognize individuals who have made extraordinary contributions to the advancement, quality and effectiveness of their foundations and the community of institutionally related foundations as a whole. The awards are underwritten by Commonfund, a nonprofit corporation that provides fund management services and investment advice to educational institutions, hospitals, foundations and other nonprofits.

Register Today for "The Basics, The Best, The Next" Conference

You still have time to join more than 120 foundation leaders from across the country at the upcoming CASE Conference for Institutionally Related Foundations, in Chicago.

The theme for this conference is "The Basics, The Best, The Next" as CASE and its foundation members reflect on two decades of helping to strengthen the IRF field and look ahead to what the future may hold. The conference is designed primarily for executives at foundations affiliated with four-year institutions and community colleges. Attendees will:

• Hear from a distinguished lineup of speakers, including Robert Berdahl, interim president, University of Oregon and former president of the Association of American Universities; Thomas Arden Roha, founding partner of Roha & Flaherty; Robert Moore, president and chief executive officer of Lipman Hearne; and Marianna Dyson of Miller Chevalier.
• Learn about the latest trends and best practices during elective sessions on a variety of topics, including gift fees, alternative investments, foundation communications, benchmarking and state registration requirements,
• Participate in sessions designed for community college foundations, including growing community college alumni relations, building foundation board capacity and leading a small shop,
• Earn up to 12.0 CPE credits for selected sessions and
• Enjoy multiple opportunities to network and share strategy with foundation peers.

Registration, travel, hotel and program information is available on the CASE website.

Mixed Signals on Charitable Deduction in President Obama's FY2013 Budget

President Barack Obama's 2013 budget plan sends mixed messages as to whether the administration plans to limit or preserve the value of the charitable deduction.

As in his previous three budgets, Obama includes a charitable deduction cap in his FY13 spending plan. Currently, taxpayers earning more than $200,000 annually ($250,000 for married couples) can take itemized deductions, including the charitable deduction, at a rate equal to their tax bracket (33 percent or 35 percent). The president's proposal would cap the value of itemized deductions for these taxpayers at 28 percent.

However, the budget plan also references the president's support for the Buffett Rule, named after billionaire Warren Buffett. If enacted, the rule, which has been introduced by Sen. Sheldon Whitehouse (S. 2059), would ensure that taxpayers earning more than $1 million a year would pay no less than 30 percent of their income. All deductions for these taxpayers would be eliminated under the Buffett Rule, except for the charitable deduction.

While the charitable deduction cap and Buffett Rule are unlikely to see legislative action in the short term, CASE will continue to urge the administration and Congress to preserve the value of the charitable deduction and explain to lawmakers why the charitable deduction is different from other deductions. Background information can be found on the Public Policy page.

U.S. Fundraisers Predict Steady Growth in 2012 Giving to Education

The CASE Fundraising Index reveals that fundraisers for schools, colleges and universities estimate that giving to their institutions grew 4.4 percent in 2011. Looking ahead to 2012, fundraisers predict that giving to higher education will increase 4.6 percent, according to the CFI.

CASE conducts the CASE Fundraising Index, or CFI, twice annually—once at the end of the academic year and once at the end of the calendar year. Fundraising professionals estimate the level of charitable giving to their institutions for the 12-month period just ended and predict the level for the 12 months ahead. This latest CFI survey was conducted during the first weeks of January 2012.

Highlights of the CFI survey:

• Fundraisers at private colleges and universities estimated greater growth in giving for 2011—5 percent—than did their counterparts at public institutions, who estimated growth of 3.1 percent.
• Looking forward to 2012, fundraisers at public institutions predicted growth of 5.2 percent vs. 4.3 percent predicted by fundraisers at private colleges and universities.
• Fundraisers at community colleges and private independent and secondary schools predicted between 4.5 and 4.8 percent growth in both 2011 and 2012.

The CFI is based on an online survey of senior-level fundraising professionals at more than 2,100 CASE-member institutions in the United States conducted during the first weeks of January. Results of the CFI since its inception in July 2008 can be found on the CASE website.

Headlines

Top Administrators' Salaries Up 2 Percent
Inside Higher Ed, Feb. 27, 2012
A study, released by the College and University Professional Association for Human Resources, shows that the salaries of senior administrators at colleges and uuniversities increased by 2 percent in 2011. Salaries increased just 1.4 percent in 2010 and showed no gains at all in 2009. The data also reveal the broad differences in administrative salaries, by both sector and field.
Full Article

Johns Hopkins Lawsuit Highlights Questions About Schools' Obligations to Donors
The Washington Post, Feb. 20, 2012
The heirs of Elizabeth Beall Banks have filed suit against Johns Hopkins University, claiming that the university has broken the terms of a land deal it made with Banks before her death. Banks opposed development and sold 138 acres of land to the university with the belief that it would build a small satellite campus on the property. Banks' heirs oppose Johns Hopkins' new plans, which they say call for a much larger campus than was originally proposed. In today's world, more donors are concerned about how their gifts are being used, resulting in both donors and institutions being more careful in crafting gift agreements.
Full Article

White House Says Charitable Giving Won't Be Hurt by Tax Plan
The Chronicle of Philanthropy, Feb. 16, 2012
Jonathan Greenblatt, director of the White House Office of Social Innovation, said in a blog post that the charitable deduction would be the only major tax deduction excluded from the Buffett Rule. Yet, the budget presented by President Obama includes a 28 percent limit for itemized deductions for individuals who make more than $200,000 and couples who make more than $250,000. According to Greenblatt, under the current system, "taxpayers end up subsidizing multimillion-dollar gifts to already well-endowed institutions such as universities while they avoid subsidizing smaller gifts to food pantries, community arts groups, homeless shelters, and advocacy organizations." Many nonprofits leaders disagree with Greenblatt's statement, saying that a large percentage of donations by wealthy donors are made to charities that provide for fundamental needs.
Full Article

Gifts to Colleges Rose 8.2 Percent in 2011, Survey Finds
The Chronicle of Higher Education, Feb. 15, 2012
Donations to U.S. colleges and universities rose by 8.2 percent, according to a report by the Council for Aid to Education. The report also reveals that 86 percent of the donations went to only 25 percent of the institutions and the rest of the institutions in the report actually received 9.6 percent less money in 2011 than in 2010.
Full Article

Most-Generous Donors Gave More in 2011 but Still Lag Their Pre-Recession Pace
The Chronicle of Philanthropy, Feb. 6, 2012
In 2011 the top 50 donors in the United States gave a total of $10.4 billion, compared with $3.3 billion in 2010. Twenty-nine of these donors gave $50 million or more, while only 22 had done so in 2010. The most significant donation on the list was a $6 billion dollar bequest by Margaret A. Cargill. These donations, however, are still not as high as in pre-recession times. The median gift for top donors in 2011 was $61 million, while it was $74.7 million in 2007.
Full Article

Not Out of the Woods Yet
Inside Higher Ed, Jan. 31, 2012
College and university endowments are doing better, according to 2011 endowment returns. These endowments reported an average return of 19.2 percent in the 2011 fiscal year. Most university endowments are still recovering from the huge hit they took during the 2009 fiscal year, however, and are worth less than they were in 2008. The returns only account for the first half of 2011 (until June 30, 2011—the end of the fiscal year), and financial markets were unstable in the second half of 2011. Several financial experts believe that 2012 returns will be lower than in 2011.
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.