Spring Break
Alumni office changes pitch to donors for financial aid
by Michelle Liberman
Staff writer
News | 1/20/09
Posted online at 6:44 AM EST on 1/20/09
The Office of Development and Alumni Relations has started to market donations as "current-use" financial aid that would go directly into the University's operating budget for financial aid rather than into the University's endowment fund, according to Senior Vice President of Institutional Advancement Nancy Winship.
The reason for the change to current-use financial aid is to maintain the levels of financial aid given out to students attending Brandeis during a time when endowment distributions have declined, according to Winship and the Office of Development.
Typically donations have been put into the University's endowment fund, where approximately five percent has been withdrawn to be used as part of the University's operating budget. What remains of the donations would be left in the endowment fund to grow in value because it would have been invested. Donations going into the endowment fund were long-term donations, while current-use donations are spent immediately, Winship explained.
"There have been other [difficult] economic cycles where Brandeis has tried to raise additional money for the operating budget, but during this particular time I think it is more necessary than ever before, and the whole rationale behind it is that we need to protect our students," Winship said.
With the new approach of marketing donations as current-use, the Office of Development raised just under $31 million from July 1, 2008 through Dec. 31, 2008. In comparison, during the period of July 1, 2007 to Dec, 31, 2007, the Office of Development raised just under $40 million. The difference between 2008 and 2007 was largely due to a $10 million cash gift from a donor last year that isn't going to be repeated this year, Winship said.
While the fiscal year runs from July 1 to June 30, Winship explained that a large percentage of the donations come in the second half of the fiscal year, from Jan. 1 to June 30. "It is probably too soon to know where we will end up because for Brandeis the most active donor months are May and June," Winship said.
The reason for the change to current-use financial aid is to maintain the levels of financial aid given out to students attending Brandeis during a time when endowment distributions have declined, according to Winship and the Office of Development.
Typically donations have been put into the University's endowment fund, where approximately five percent has been withdrawn to be used as part of the University's operating budget. What remains of the donations would be left in the endowment fund to grow in value because it would have been invested. Donations going into the endowment fund were long-term donations, while current-use donations are spent immediately, Winship explained.
"There have been other [difficult] economic cycles where Brandeis has tried to raise additional money for the operating budget, but during this particular time I think it is more necessary than ever before, and the whole rationale behind it is that we need to protect our students," Winship said.
With the new approach of marketing donations as current-use, the Office of Development raised just under $31 million from July 1, 2008 through Dec. 31, 2008. In comparison, during the period of July 1, 2007 to Dec, 31, 2007, the Office of Development raised just under $40 million. The difference between 2008 and 2007 was largely due to a $10 million cash gift from a donor last year that isn't going to be repeated this year, Winship said.
While the fiscal year runs from July 1 to June 30, Winship explained that a large percentage of the donations come in the second half of the fiscal year, from Jan. 1 to June 30. "It is probably too soon to know where we will end up because for Brandeis the most active donor months are May and June," Winship said.
Viewing Comments 1 - 1 of 1
Jon
posted 1/20/09 @ 2:24 PM EST
Very interesting article. The school needs to be more transparent with their intentions when they make decisions like this.
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