Tufts recently received a four−star rating for sound fiscal management from Charity Navigator, America's largest independent charity evaluator. This marks the eighth consecutive year the university has received the highest possible rating.
Charity Navigator looks at nonprofit organizations' ability to grow and manage their finances. It measures fiscal management and efficiency using information about a charity's programs and the allocation of its finances as reported in the IRS Form 990, a tax return that must be annually submitted to the government, according to Tufts Vice President of Finance and Treasurer Thomas McGurty.
Using this data, Charity Navigator computes organizational effectiveness by examining fundraising efficiency and expenditure on programs, administration and fundraising. It then determines organizational capacity by evaluating primary revenue growth, program expenses growth and working capital ratio.
Each organization receives an overall numerical score and a corresponding star rating, which can range from one to four stars.
McGurty praised the accuracy of the rating system. "It's probably one of the most accurate comparative data sets that you can find on charities," he said.
Tufts ranked equally with other universities such as Boston University, Harvard University and Northwestern University, all of which earned four−star ratings.
Christine Sanni, director of advancement communications and donor relations, attributed Tufts' high ratings to the university's effective allocation of donations.
"I think people really want to see their money going to support the things they care about, and that's what the Charity Navigator rating shows … that Tufts is putting so much of the money toward the donor's intent and so little toward what it takes to run the university," she said.
Bob Gawlak, manager of sponsored programs in Tufts' Office of Sponsored Programs Accounting, believes that collaboration between members of the university's fiscal management team has helped Tufts produce good policy and remain financially efficient.
"I think we have very, very qualified people," he said. "I think that we work well together. I think the quality of the people and the professionalism is outstanding."
McGurty said that the ratings were helpful in allowing the university to assess its performance relative to other organizations. "Being able to compare yourself to other institutions provides some measure of how effective you are," he said.
He added that it was important for Tufts to continue making an effort to handle the university's finances responsibly.
"Every organization always should be looking at its operations and looking to maximize the amount that goes to support programs," McGurty said. "I think any good organization is always looking for ways to improve that."
Sanni said that Tufts owes a large part of its fiscal success to dedicated donors. In fiscal year 2008−09, Tufts had its fifth−best fundraising year in university history, according to Sanni.
"I would say we had alumni donors and friends who would deserve thanks for their ongoing dedication and ongoing support of Tufts," she said.
This fundraising success is partly due to the university's ability to adapt its fundraising tactics to last year's adverse economic conditions, according to Sanni.
"We changed some of our strategies because alumni were indicating that they were kind of watching their own portfolio and savings accounts, and they were nervous about their own job security," she said.
The university, therefore, placed more emphasis on short−term annual donations rather than long−term endowments, leading to an increase in alumni cash donations.
"That was really an appealing message to people, because they made a short −term commitment, and they didn't have to worry about if they lost their job or if something happened in the next couple months," she said.
Sanni also recognized Tufts alumni and other donors for coming forward to help the university during the financial crisis.
"That was a tough year economically, but we had a lot of people step up," she said. "It was great that we had these donors that were willing to do that."
Sanni emphasized that Tufts' fiscal policy is based on more than just donations, and the university prioritizes continued alumni involvement.
"The big focus of this campaign has been making sure that we are not only asking alumni for money, but we're making sure they're engaged in the university," she said. "Building that base of support is really important."
