Tufts ranked best Boston-area nonprofit

In a recent report by a charity watchdog group, Tufts was ranked the best nonprofit out of 53 organizations in the Boston area. The University also achieved a high ranking among colleges and universities nationwide.

Charity Navigator, a nonprofit organization itself, reviewed Tufts' IRS tax filings from fiscal years 1999 to 2001 and ranked the institution based on short-term spending practices and long-term sustainability. Out of a possible 70 points, the University reached 68.55 _ three points higher than local competitor Harvard University.

Among the University's most impressive statistics were the numbers for fundraising efficiency and working capital ratio. For every dollar raised, Tufts spends an average of only $0.07 on fundraising. The University's working capital ratio, or the time it could maintain its current spending level without bringing in new revenue, is approximately two years.

University President Larry Bacow responded positively to the recent rankings, but cautioned that there is more to Tufts than a number-crunched top ten listing.

"While I am pleased with the ranking of Charity Navigator, no ranking system can properly capture all that makes a university special," Bacow said, coincidentally speaking from New York, where he was meeting with alumni and prospective donors.

Tufts was ranked first over organizations including WGBH public television, the Museum of Fine Arts, the New England Aquarium, and the AIDS Action Committee. In a comparison of colleges and universities nationwide, Charity Navigator ranked the University seventh _ above schools such as Stanford, Yale, MIT, Harvard, and Princeton. Harvard generated the largest revenue of all nonprofits in the Charity Navigator database, topping $4.57 billion.

While universities in general have an advantage over other nonprofits, each charity has its own unique obstacles to financial efficiency, according to Charity Navigator Program Analyst Sandra Miniutti. "For example, museums often have very high administration expenditures because they have collections and items to maintain," Miniutti said. "Public broadcasting has higher fundraising expenses because they have to use airtime to raise that money."

In the case of higher learning institutions, revenue from students is a big benefit. "Whereas if you have a food bank, the receivers aren't contributing," Miniutti said.

The IRS findings, which are detailed by Charity Navigator on its website, charitynavigator.org, reveal some interesting statistics about the University. Tufts' total revenue is listed at more than $532 million per fiscal year, with total yearly expenditures reaching $428 million. Former President John DiBiaggio's compensation is quoted as having been $328,169 a year, and the University's net assets top $1 billion.

Fundraising has often been a source of contention on the Hill. But complaints about the University's endowment size have lessened in recent years, especially after the recent completion of the Tufts Tomorrow capital campaign, which raised $609 million.

"We operate very efficiently as a university," Bacow said. "We also attempt to manage our financial resources prudently and will continue to do so."

Strengthening the endowment, which currently stands at $677 million, is one of Bacow's goals as President. "As I said in my inaugural address, I hope to build our endowment over time," Bacow said. "It provides the resources that allow us to compete for the very best students and the very best faculty in the country."

In a recent e-mail to the Tufts community, Bacow detailed $10 million in new donations to the University. The e-mail assured that, despite the economic downturn, "Tufts is doing better than most" colleges.

New Jersey-based Charity Navigator was founded in 2001 to "deliver unbiased ratings of a huge number of charities" as a free service to potential donors, according to its website. Since then, the organization has profiled over 1,700 nonprofits nationwide. Among charities in Boston area, Charity Navigator listed 73 percent as being in exceptional or good financial health.