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Private donations to colleges hit 50 year low

In study, University of Wisconsin places 2nd in highest amount of money given to public universities in 2009, 10th place overall

While private donations to universities are lower than they have been in more than 50 years, University of Wisconsin officials remain positive as UW remains at the top of the list for fundraising.

According to a survey of 1,027 universities throughout the country, published by the Council for Aid to Education, the top 20 universities received $1.13 billion less in 2009 than they did in 2008, putting donations down 11.8 percent.

These 20 schools represent 1.9 percent of the schools surveyed, but their donations represent 26.2 percent of money raised, the survey said.

Still, UW took the second highest amount of money in donations for public universities in 2009 and the 10th highest amount overall.

UW Foundation Chief Financial Officer Jennifer DeKrey said UW regularly lies in the top 20 schools. In the survey, UW received the eighth highest amount in donations in 2008, and the 11th highest in 2004.

The survey reports UW took in $341.81 million in 2009. The highest ranked public school, the University of California - Los Angeles, took in $351.69 million. Stanford University took the most donations of any school, at $640.11 million.

UW spokesperson John Lucas said remaining at the top of the list for donations is a large accomplishment.

“It shows the skill and dedication of our alumni and friends in the world, that they’re willing to give in such a tough economy,” Lucas said.

Even though UW remained high on the list, it still took a dramatic hit in donations.

According to DeKrey, UW took about 16 percent less in donations this year than it did in 2008.

A passage in the survey stated the decline in donations was expected, as donations become less as the economy declines.

However, the survey said that CAE expects donations to rise again as the economy improves.

DeKrey said UW manages to remain at the top through a tough economy because there are a lot of opportunities to donate.

“You name a department, I’ll…name an opportunity to donate,” DeKrey said. “There are all kinds of things that are available to match the donor with the opportunity.”

One area that experienced a decline in donations — a decline of 25 percent — was gifts for capital purposes, like endowments, buildings and equipment. Another area with a large decline was alumni donations, which took a 5.6 percent hit in 2008. The survey said while alumni and other personal donations usually account for around 50 percent of gifts, this year they were only 43.5 percent.

Lucas said UW still took in a good amount of alumni donations. He said the fact anyone is still willing to give is a credit to UW as a university.

The amount of donations UW brings in is especially crucial given that it is a part of the Madison Initiative for Undergraduates, which is supposed to provide half the funding for financial aid through private donations.

In a previous interview with The Badger Herald, Chancellor Biddy Martin said failure was not an option in raising money for the MIU funds.

2 Comments | Leave a comment

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Nice to see the rich fat cats are feeling the pinch too. I propose that Wisconsin taxpayers pay their federal income taxes to Wisconsin. We’ll have more money than we’ll ever need to give the state the shot in the arm that we need to get our state economy up and running again. Forget about high-speed light rail too. Do we really need it? Will it pay for itself or will it flop just like the Overture center? We need to take care of ourselves for once.

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“Nice to see the rich fat cats are feeling the pinch too.”

Yeah, it’s great - then they don’t donate, don’t buy stuff, don’t invest in businesses, don’t pay taxes - it’s just freaking great!

But misery loves company, even if the price is creating more misery for themselves.

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