Alumni pool to increase
It will take Brandeis another 25 years to have a pool of alumni comparable to that of older private universities that can rely on more alumni for fundraising, according to an initial report by the Faculty Development Advisory Committee that highlights both the successes and challenges of the Office of Development and Fundraising. Committee member Prof. Jordan Pollack (COSI) presented the report at last Thursday's faculty meeting."While our fundraising from alumni has gradually increased. [.] We are still heavily dependent on gifts from non-alumni 'friends'," the report states. At other older universities, the largest share of giving comes from alumni and in particular alumni bequests. At Brandeis, the average age of an alumnus is young at 42, the report notes, and the first graduating classes were comparatively small. "An analysis of our alumni database suggests that it will take up to 25 more years for us to have a pool of alumni comparable to other universities our size," the report states. The report also notes that there has been an upward trend in the amount of money raised from alumni, with their contributions making up 17.7 percent of the total funds raised in 2009, compared to 1.3 percent in 1975.
For this reason, the University is more dependent on friends of the University who are not alumni, according to the report. "Most friends who become donors view Brandeis as a critical Jewish institution for America. There is concern amongst faculty that the friends of the university represent a narrow range of the Jewish community and have imposed their priorities on the University," the report states. "However, there appears to be substantial diversity amongst the friends of the University, geographically and otherwise, and much of their funding supports general university activities."
In his presentation, Pollack emphasized that the Office of Development had been very successful at raising funds, noting that the annual amount raised has increased from $24 million in fiscal 1995 to $90 million in fiscal 2008 and $78 million in fiscal 2009 after the economic downturn. "That's a remarkable feat; it's almost miraculous," he said during his presentation.
While the report states that fiscal 2009 marks "a modest decrease from the prior two years, our sense is that it represents an extraordinary achievement" because the previous year included two one-time large gifts, including the first gift from an alumnus of over $10 million.
The report explains that the Office of Development raises money for different purposes: for the annual funds-funds the university can directly use-as well as for a campaign to improve the University's long-term position. Direct mail, the Phonathon and online giving account for about a quarter of annual fund money raised. Those three methods experienced a decline last year, with the report noting that the call completion rate for the Phonathon declined from 18 to 16 percent, most likely because of the advent of caller ID devices that can screen Phonathon calls. For the multi-year campaign, the goal is $1.2 billion with a total of $851.1 million raised so far.
Donors can restrict their gifts for specific purposes, the report states, "and there has been a growth in funding for centers and institutes that deal with issues of interest to the Jewish community." The report goes on to say that some of this funding was in support of "long standing university priorities" and that of the $851.1 million, only 6.4 percent have been dedicated to such centers and institutes. The report goes on to state that "much of the unrestricted bequests received by the University . are received from Jewish sources who are cultivated by mechanisms such as the Brandeis National Committee and the Sachar Society," which recognizes individuals who indicate Brandeis is in their wills.
The report notes that "contrary to what some believe, Development does not determine how funds are allocated," a task that instead is the responsibility of senior administrators who direct strategic planning. Of the $78 million raised in 2009, 44 percent went into current-use funds, about one-fifth went into capital projects, one-fifth into the endowment and another fifth represented sponsored programs from corporations or foundations.
The report suggests that faculty can aid Development as it faces budgetary challenges by assisting with outreach to their students, particularly those who the office believes have the potential to make donations but have not yet done so. In an interview with the Justice, Pollack pointed out that "alumni are only part of the story-the question of how faculty form relationships with friends is still an open questions."
The committee formed last spring as a cooperation between the Faculty Senate and the Office of Development and conducted many meetings with Development staff to learn how the office works.
"I think there's a lot of misunderstanding in the faculty about the Development function [such as] why is the department so large when all of our other departments are so small?" Pollack said in the interview. "I think what we learned through the process was that it's an appropriate size . and that [due to budget cuts], it could be counterproductive to reduce the number of frontline development officers."
The report states that Development is the third-largest administrative department on campus with 77 staff members. Because its budget was reduced by 7.5 percent in fiscal 2009, the office faced some cutbacks, according to the report.
As a result, Development has reduced the number of alumni events, particularly off-campus, and increased its use of electronic communications with alumni while reducing expenses for print materials. It has also reduced budgets for donor cultivation and recognition, as well as travel and has eliminated professional development activities, in addition to increasing fees for and reducing the operating expenses of reunion events. The report also cites a study by the consulting firm Eduventures that identified Brandeis as the most efficient university in terms of the ratio of fundraising staff to money raised.
"We were very pleased with the Faculty Development Advisory Committee's report and look forward to working with the committee in the future," Senior Vice President of Institutional Advancement Nancy Winship wrote in an e-mail to the Justice. "A strong working relationship between our office and the faculty is vital for helping Brandeis reach its fundraising potential."
"The endowment has tripled from when [Jehuda Reinharz] became president," Pollack stated, growing from $200 million in 1995 to $700 million in 2008.
"It's all very positive, but the outlook is a little bleaker," he added, referencing the recession, the presidential search, the cuts to the Office of Development and "poaching" of some senior development staff from other organizations. "We have a very hard act to follow.
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