Alumni donations on the rise

Annual Giving, the University's flagship fundraising campaign, has collected more donations this fiscal year than at the same point last year, University officials said Monday.

"It's encouraging to be ahead, but it's sort of like having a two-run lead in the seventh inning," said Bill Hardt '63, director of the Annual Giving. "This is a yearlong process."

The increase in donations to Annual Giving may be a sign that the nationwide fundraising slump associated with the weakened economy and stock-market decline is coming to an end.

"This year we certainly feel that the decline [in the stock market] is better," Hardt said. "And so far, at least, the results are ahead of the pace of last year."

As of March 19, Annual Giving had collected about $20.5 million from 32.3 percent of alumni.

Hardt said he hopes to reach $36 million and 60 percent participation by the end of the fiscal year on June 30.

With its network of alumni volunteers across the U.S. and alumni participation regularly topping 58 percent, the Annual Giving campaign seems to be on fairly sound financial footing. But the University has not escaped the effects of the economic downturn that has burdened fundraising at other colleges and universities.

During fiscal year 2002-03, Annual Giving receipts totaled about $34.5 million, a decline of nearly $2 million from the previous year. It was the largest percentage drop since 1992 and only the second decline since that time.

"Last year was a challenging year," Hardt said. "It was the third year of a declining stock market and economic pressures of various kinds. I think under the circumstances we came out with a good result."

Despite the number of alumni donations, Annual Giving comprises only a small part of the University's fundraising total. Last year, for example, it contributed only about 15 percent of the roughly $227.5 million raised by the University.

The bulk of University funds are raised from foundations, corporations and individuals for a specific purpose, including items like equipment for an athletic team or the construction of Whitman College.

These earmarked donations are known as restricted funds and are frequently used to establish endowments, which can generate income year after year.

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Annual Giving dollars, however, are unrestricted — they can be used for any purpose and are deposited directly into the University's operating budget, not an endowment.

"The philosophy, we hope, is that everybody feels a joint responsibility for the overall strength of Princeton," Hardt said. "Annual Giving supports all the things that need to be done day in and day out: financial aid, faculty recruitment, library acquisitions, computer networks."