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Universities’ fundraisers feel the pain
June 21, 2009

It seemed like really bad timing when Rice University and the University of Texas at Austin announced billion-dollar campaigns last fall, just as the global economy was circling the drain.

Written by Jeannie Kever, Houston Chronicle

It seemed like really bad timing when Rice University and the University of Texas at Austin announced billion-dollar campaigns last fall, just as the global economy was circling the drain.

Fundraisers there and at other Texas schools say they still are finding donations for scholarships, new buildings and programs, but everyone is feeling the pain.

The University of St. Thomas may delay a new capital campaign by a year, to 2011.And UT officials predict donations to their $3 billion campaign will be “back loaded,” with many coming during the final years before the campaign ends in 2014.

“To be honest, it’s a lot more difficult this year than last year,” said Darrow Zeid­enstein, vice president of resource development at Rice, which announced a $1 billion campaign in November.

The school raised $167.5 million last year, but will probably only collect about half that this year, he said.

Rice, which had $500 million in hand before it announced its goal, expects to reach the full $1 billion when its campaign ends in 2012.

“If it weren’t for the economy, we’d be really kicking butt,” Zeidenstein said.

Nationally, donations to education dropped 5.5 percent in 2008, according to a report released last week by the Giving USA Foundation.

Predictions for 2009 are mixed.

The University of Houston has raised more in cash than at this time last year, but commitments from new donors are down, said Michael Rierson, vice chancellor for university advancement. “People are reluctant to make new and multiyear commitments.”

UH’s donors include twice as many alumni, up to 10 percent. The goal for 2010 is donations from 15 percent of alumni.

But many of those gifts are small. Schools trying to raise $1 billion or more need big donations, and lots of them.

Peter and Nancy Huff recently gave a multimillion- dollar gift to Rice — they asked that the amount not be disclosed, but the money will be used to expand the Office of Alumni Affairs and the Center for Student Professional Development.

Peter Huff, a 1959 Rice graduate and mayor pro tem of McKinney, said he considered the recession prior to making his contribution.

“The economy made us pause for a few months, just trying to figure out how far down things were going to go,” he said. “But we decided the money was there, and we were going to go ahead and do it.”

Personal contacts

More schools are relying on social media, like Face­book and Twitter, to attract donors. But when it comes to asking for money, nothing beats personal contact.

“People have to know you and believe in your cause,” said Ken DeDominicis, vice president of institutional advancement at the University of St. Thomas.

His school raised $65 million for new buildings earlier this decade. Planning has begun for a new campaign, although DeDominicis said its launch likely will be delayed.

His school raised $65 million for new buildings earlier this decade. Planning has begun for a new campaign, although DeDominicis said its launch likely will be delayed.

“The community needs time to recover,” he said.

In the meantime, Rierson said, schools have to be savvy.

“In a marketplace that’s crowded with messages about need, our job is to stand out as worthy,” he said.

“In a marketplace that’s crowded with messages about need, our job is to stand out as worthy,” he said.

For UH, that means raising money for scholarships and the school’s effort to become a nationally ranked research university, while ensuring donors know how their money is helping to meet those goals.

Long-term relationships are especially important, a point illustrated by a $1.3 million gift from Chevron Corporation last month to Texas A&M University.

Company connections

Just as important as the money, donated for A&M’s science and engineering programs, was the affirmation of an ongoing relationship. About 650 A&M graduates work at Chevron.

Corporations often give money to cement ties with schools where they recruit new employees, said Chad Wootton, vice president of university advancement. The company donated $4 million to A&M in 2008.

Corporations often give money to cement ties with schools where they recruit new employees, said Chad Wootton, vice president of university advancement. The company donated $4 million to A&M in 2008.

A&M’s 12th Man Foundation raises money for athletic scholarships and facilities, and Wootton noted that its efforts can rise and fall with the fortunes of the sports teams, as well as the economy.

The A&M Foundation focuses on big donations; it’s in the midst of a $300 million scholarship initiative.

The Association of Former Students focuses on gifts between $100 and $25,000, and Wootton said donations there are down slightly.

The Association of Former Students focuses on gifts between $100 and $25,000, and Wootton said donations there are down slightly.

David Onion, associate vice president for development at UT-Austin, said some people are delaying donations. Others are still giving, but less than in the past.

Still, UT has recently reported several enviable gifts, including $30 million from the Bill and Melinda Gates Foundation for computer science programs, and $15 million from former Gov. Dolph Briscoe for the Center for American History.

That makes an important point, fundraisers say. Not everyone has been equally affected by the recession.

“We’re always telling our officers, don’t make assumptions that everyone is in the same situation,” Onion said. “Tough times offer new opportunities to create wealth.”

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