University fundraisers have adopted new strategies to garner donor support during the economic downturn, urging donors to give annual gifts that can be used immediately rather than one-time major capital gifts. As it has for a number of years, financial aid remains the focus of fundraising.
Tufts' capital campaign, Beyond Boundaries, has emphasized the importance of smaller annual gifts to donors, who have increasingly become hesitant to make large commitments to the university.
"Donors have hit the pause button," University President Lawrence Bacow told the Daily in an interview last month. "There are still plenty of people who have large amounts of money and have the capacity to make enormous gifts, [but] they have less than they did a year ago, and they're looking at the same uncertainty that the rest of us are."
In light of a 30-percent projected drop in the university's endowment and subsequent budget cuts, campaign fundraisers are asking donors to support Tufts' annual fund. The university can utilize right away donations made to the fund, helping to address recent changes put in place by administrators, such as a salary freeze for employees earning over $50,000 per year and the laying off of 20 employees.
"It's a strategy to try to infuse the university with more money that it can use immediately," Director of Central Development Programs Chris Simoneau said.
Gifts to the annual fund support such key university priorities as scholarships and financial aid, faculty costs and building development. A percentage of the annual fund is also contributed to the capital campaign.
The $1.2 billion Beyond Boundaries campaign, which began its quiet phase in 2002 and was publicly announced in 2006, is on track to meet its 2011 goal, according to Director of Advancement Communications and Donor Relations Christine Sanni (LA '89).
The campaign had raised $958 million, or about 80 percent of its goal, as of April 30, Sanni told the Daily.
"We consider ourselves to be ahead of pace … and still remaining very optimistic that we'll hit our goal by the end of the campaign," Simoneau said.
But the economy has continued to leave an imprint on Beyond Boundaries. In February, the Daily reported that Beyond Boundaries had met 79 percent of its goal as of Jan. 31; the latest numbers thus show that the percentage increased by only one point.
"It may appear to be a small percentage increase, but you have to take into consideration the external environment that we're operating in here," Simoneau said.
Increased support for the annual fund is a sign of the economic strain, as annual gifts are smaller than capital gifts and can vary by year. It also reflects donors' desires to see their money be put to use right away, Simoneau said.
The new initiative to increase annual gifts has met success. New annual fund donors have increased by 12 percent since this time last year, and the average annual gift is up 2 percent since last year, Sanni said.
"People who haven't made annual fund gifts are making them, and people who have made them in the past are increasing them," she said.
Meanwhile, funding financial aid remains the highest priority of Beyond Boundaries and has continued to be the central message behind university fundraising. This focus on helping students pay for school throughout harsh economic times has resonated with donors.
"It certainly keeps me motivated," Nancy Barton (J '72) said of the university's financial aid goals. Barton recently donated $50,000 to financial aid, equivalent to two $25,000 term scholarships that can be used immediately. "With the economy being difficult, it's more important than ever for people who can to continue to support the school, particularly for scholarships and financial aid," she said.
Tali Paransky (LA '04) agreed. Paransky, who has increased her annual gift each year since graduating, said that the university's goal of sustaining need-blind admissions — in which admissions officers do not consider an applicant's ability to pay — has motivated her continued support.
This year, the university fell short of maintaining entirely need-blind admissions, which it had practiced unofficially for all applicants to the Classes of 2011 and 2012 and for Early Decision applicants to the Class of 2013. Toward the tail end of this year's admissions process, when potential financial aid ran out, officers took into account the ability of the last 5 percent of applicants to pay.
"I think the university has done an incredible job of communicating with alumni of their desire to be need-blind," Paransky said. "They can't just give up on that goal."
Tufts fundraisers launched in early April a new "Students First" challenge in which an anonymous donor matches dollar-for-dollar all gifts to financial aid over $7,500. Twenty-four donors participated in the program during April, Sanni said.
Justine Pokoik (LA '04), whose joint gift with her mother was doubled as a result of the challenge, said that it was a "really great incentive" to make donors increase their gifts. She added that learning about the program prompted her to donate earlier than she was planning, as she was unsure as to how long the challenge would last.
"I wanted to make sure I took advantage of this opportunity now," she said.
Other Tufts fundraisers, like Tufts Telefund, have also focused more on financial aid when making appeals to donors. Tufts Telefund collects money for the university's annual fund, but donors can allocate their gifts to specific priorities or schools.
"[Financial aid] is definitely one of the main points that we try to bring up, because it's something that people understand," Telefund caller Elyse Weissman said. "They want students to be able to have the same experience that they had."
Weissman, a senior, added that Telefund employees have changed their approach by emphasizing to donors the impact of smaller donations.
The method seems to be working. By March 31, Telefund had secured $2 million since the current fiscal year started on July 1, according to Sanni; that date, she said, was the earliest it had reached the $2-million goal in the program's 20-year history.
