Fundraising and the public university: UMass chancellor says his school is "a generation behind."

University Business, Feb, 2005

Fundraising is a job requirement for any university president, but tight state budgets and rising costs are kicking the efforts into high gear for presidents at public universities. John Lombardi, chancellor for the University of Massachusetts-Amherst began the year by claiming that his university is "a generation behind" in raising private funds. Only 2 percent of the UMass operating budget comes from private funds and its endowment is reportedly a mere $70 million.

This is dismal when considering the financial hits UMass has sustained. Three years ago, when the state was at a budget low point, it slashed $100 million in public higher ed spending.

Compare this to the University of Virginia, a public school, fundraising powerhouse with an endowment of more than $1 billion. At least 8 percent of the operating budget comes from private funds. The University of Texas and the University of Minnesota are two other schools in the $1 billion endowment category. Lombardi isn't aiming as high, but his "Campaign for Amherst"--still in the "quiet" phase--will be asking donors for $350 million over a seven-year period.

Utah State University is yet another public institution with new fundraising ambitions. Within a year it wile launch a "comprehensive" campaign to raise $225 million. The money will be spent on campus-wide improvements.

UMass and Utah State should look to the University of Delaware for pointers. A five-year, $225 million "Campaign for Delaware" has yielded $185 million more than expected. Initiated in 1998, the campaign's $410 million has been spent on endowed chairs, student aid, new buildings and a center for performing arts. "We originally thought $225 million was a stretch," President David Rosette told the press. "We learned to go way over the amount specified." He attributes the campaign's success, in part, to academic improvements at UD. People have given, he posits, because they feel UD is a strong institution. While such subjective analysis is hard to measure, one fact is undisputed: the new campaign put UD in that public IHE, billion-dollar endowment dub. The total is $1.2 billion and growing.