Sweet success

CAMPAIGN MINNESOTA EXCEEDS EXPECTATIONS AND PREPARES U FOR NEXT CENTURY

by Joel Hoekstra

From M, fall 2003

No one knew what lay ahead seven years ago, when the University of Minnesota launched its most ambitious fund-raising campaign ever. But not only did the University of Minnesota succeed in meeting the goal it set for itself--$1.3 billion--it surpassed it by 25 percent. Hundreds of thousands of gifts, both large and small, have buoyed the amount raised by the campaign to $1,655,703,867. That's the second highest amount raised in a campaign by any public university.

Can gifts make up for budget cuts?
"If the U raised this much in Campaign Minnesota, why has it had to cut its budget," some have asked. It's a good question. Here are a few facts to put the campaign's fund-raising dollars into perspective:

> Private gifts to the U--including annual gifts made by alumni and others--account for about 10 percent of the U's overall budget. Most of the U's budget is covered by state funding, now $540 million, and tuition, which the U increased to about $400 million to partially make up for state funding cuts.

> It would take an additional endowment of $5 billion (more than three times the current total) to make up for the amount of lost state funding. The University's endowment is now $1.5 billion.

> The campaign was a long-term investment in the quality of the U. About one-third of the gifts counted in the campaign are in the form of pledges--payable over five years--or bequests, which are realized on a longer timeline.

About half of campaign gifts were designated for endowment, in which the principal is held intact and invested. Annual payouts support programs designated by donors.

The impact has been substantial:

• More than 1,060 new scholarship and fellowship funds were created, offsetting tuition for thousands more students. New funds for study abroad have helped double opportunities for students.
• The addition of 110 new endowed faculty positions has made it possible to retain many top faculty in highly competitive fields and recruit renowned scholars to Minnesota.
• Campaign gifts have helped advance research in critical areas, including digital technology, biological sciences, agriculture, new media, design, medicine, ecology, the humanities, and many others.
• More than 25 facilities have been built, expanded, or renovated, thanks in part to campaign gifts. Two campuses now have designated arts quarters, with the completion of the Weber Music Hall in Duluth, the Barbara Barker Center for Dance, and the Regis Center for Art buildings on the Twin Cities campus.

• Because of Campaign Minnesota, the University can reach out to more people than ever before through the arboretum, University museums, and the Regional Fitness Center in Morris.
• Campaign funds have helped University Libraries acquire and preserve more collections, and digitize and make accessible many materials on the Internet.

About half of all campaign gifts were for endowments, which means that the principal stays intact and a portion is paid out each year for the designated program, ensuring support for these programs far into the future.

All told, more than 220,000 people and organizations contributed to Campaign Minnesota. This included 85,600 alumni, who gave $485 million. Nearly $67 million came from University faculty and staff--further testament that the people who work at the U are committed to its core mission of advancing education and making the U a top-notch teaching and research university.

Campaign Minnesota by the numbers

$1,655,703,867: Total amount raised during Campaign Minnesota, 1996-2003

220,000: Total number of donors

112,891: Number of donors who made first-time gifts to the University during the campaign

85,600: Number of alumni who made gifts, for a total of $485 million

11,000: Number of faculty and staff who made gifts, for a total of $67 million

960%: Increase in the number of online gift pledges during the campaign

338: Number of gifts of $1 million or more

Where do we go from here?

With significant increases in tuition, a key funding priority is scholarships. "Last year, an estimated 170,000 American college students dropped out of school because they couldn't afford the costs," says Steven Rosenstone, dean of the College of Liberal Arts. Bright students often face difficult choices without the aid of scholarships, so the University will continue to enhance its financial aid offerings in the years ahead. "Despite the achievements of Campaign Minnesota, we still can offer achievement scholarships to only a small percent of our undergraduates," says Rosenstone. "We need to do something about that."

With tuition more than twice what it was 10 years ago, student support in the form of scholarships and fellowships continues to be one of the University's greatest areas of need. Scholarships also help the U in its efforts to improve the four-year graduation rate. They help students cut back on the amount of time they need to work outside of class, making it easier for them to take a full credit load.

How Alumni Can Help

Alumni can help promising students offset rising tuition through gifts toward scholarships and fellowships. Gifts of any size can add up to make a difference, and they can be designated to any college or department. Visit www.giving.umn.edu for more information about:

• Areas of need

• How gifts are used and managed

• Matching gifts

• How to make a gift

To make a gift call 612-626-8560 or 800-775-2187 to make a credit card gift, or for more information call 612-624-3333 or see www.giving.umn.edu