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  The Digital Collegian - Published independently by students at Penn State NEWS
[ Thursday, March 24, 2005 ]

University sees drop in donations

Collegian Staff Writer

Penn State's total yearly donations have dropped $30 million, from $181.3 million in 2003 to $151.3 million in 2004, according to a survey conducted by the Council for Aid to Education (CAE).

The survey, which was entitled "Voluntary Support of Education," ranked Penn State's 2004 donations the 27th highest university donation total nationally.

Peter Weiler, associate vice president for development and alumni relations, said the 2004 decrease was anticipated because the university was just coming off of its Grand Destiny campaign, which ended in 2003 and raised a total of $1.37 billion. "We know that people like to contribute to a big campaign, so we pushed to include as many people as possible, knowing that it would take a little away from the next year," he said.

He added that since the decrease in funds was predicted, it would not negatively impact any current university scholarships, construction projects or programs. "The lower level of donations means that we may not be able to create as many new scholarships or programs," Weiler said.

Jean Songer, director of financial and administrative services, said Penn State's total donations rose every year between 1991 and 2003, and 2004 was the first year total receipts dropped.

"Typically when you have a big campaign, alumni are very motivated to give," she said. "When that campaign ends, the momentum tends to die off a little bit, and that's what we saw this year."

Weiler said that before the campaign began in 1996, Penn State's annual donations total was about $80 million, and the campaign was successful in raising the total.

"The Grand Destiny campaign was successful in doubling the university's annual donation total and sustaining it," he said. "That's the platform on which we will build future fund-raising efforts."

He added that it would likely take several years for the total to again reach $180 million.

CAE survey director Ann Kaplan said total donations to colleges and universities nationwide rose 3.2 percent in 2004, marking the first increase in three years.

She said the increase is most likely because of a stronger economy in 2004.

"When the economy is stronger, people are more likely to be generous with their money and give to universities," Kaplan said.

Economics professor Paul Graf said the economy plays a role for most donors, but added that some may give regardless despite the economy.

"The most determining factor in donations is level of income, which is tied to the economy," he said. "But many people have their favorite charity that they will give to no matter what their personal financial situation may be."

Weiler said because donations were so high in the campaign, many donors might have wanted to take a year off before giving again.

"Many donors may have said to themselves, 'I already gave last year,' so they need time before they can give again," he said.

Kaplan said she could not determine whether donations would rise again in 2005, saying it was not feasible to try and predict how the economy will change over the next few months.

Graf said economists are predicting a 4 percent growth in the U.S. economy for the 2005 fiscal year, so it is likely there will be an increase in Penn State's donations.

"When people have more money, they are more inclined to spend it," he said. "That includes giving to charities and organizations such as Penn State."

Kaplan said the CAE survey is conducted annually online from July 1 to Oct. 1, and 25 to 28 percent of colleges nationwide reply each year.


 

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Updated: Thursday, March 24, 2005  2:26:40 AM  -4
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Created: Wednesday, May 07, 2008  6:52:50 PM  -4