UMF names new CEO; U announces record year for giving

L. Steven Goldstein becomes new president and CEO, replacing Gerald Fischer

L. Steven Goldstein

August 14, 2008

On the day that the University announced another record year of giving by donors, the University of Minnesota Foundation named L. Steven Goldstein as its new president and CEO, effective immediately. He replaces Gerald B. Fischer, who is stepping down after 18 years in the position.

Goldstein, a U alum, has been a trustee of the University of Minnesota Foundation since 2000 and vice president of strategic initiatives since 2005, focusing on developing new revenue streams to support the U's goal of becoming one of the top three public research universities in the world.

"Steve's career as a business leader, venture capitalist and entrepreneur, as well as his leadership in the nonprofit community, make him the perfect choice at this time, when the demands for funding in higher education require new, innovative approaches for engaging the private sector," said Elliot Kaplan, chair of the UMF Board of Trustees, which made the announcement. "After conducting a national search, aided by a national search firm, we determined that Steve stood out as the top candidate. He has the capabilities required for leading a large, complex organization, as well as extensive knowledge of the University and an exciting vision for expanding the opportunities for private support."

"I've known and worked with Steve for many years," added University of Minnesota president Robert Bruininks. "He is a clear and strategic thinker, with the ability to bring the right people together to develop ideas and leverage the resources necessary to bring dreams to reality. I look forward to working with him as he brings these talents to bear on the work of the University of Minnesota Foundation."

For the second year in a row, donors gave a record amount in gifts and pledges to the University of Minnesota. The total committed in fiscal year (FY) 2008 was $289 million, an increase of $38 million (15 percent) compared with the $251 million raised in FY 2007.

Bruininks also applauded the accomplishments of Fischer during the past two decades. "Private giving makes the difference between a mediocre and a great university," he said. "The tremendous growth in private support during Jerry's two decades as head of the Foundation has helped us build a world-class university, fuel discovery in many important areas, provide financial support to thousands of students, and expand our educational activities far beyond our campus boundaries. Jerry is leaving an outstanding legacy and has put us in an excellent position for continued growth."

Gifts and pledges approach $300 million

For the second year in a row, donors gave a record amount in gifts and pledges to the University of Minnesota. The total committed in fiscal year (FY) 2008 was $289 million, an increase of $38 million (15 percent) compared with the $251 million raised in FY 2007.

The University received $65 million from the Minnesota Masonic Charities, the largest gift in the U's history. Made through the Minnesota Medical Foundation, the donation will be used for cancer research and care at the Masonic Cancer Center, University of Minnesota, the new name given to the Cancer Center in recognition of the gift. With this pledge, Masonic support of cancer research at the University totals $100 million over the past 53 years.

Also noteworthy for the year was a $12.5 million gift from the Shakopee Mdewakanton Sioux Community, with $10 million designated for the TCF Bank Stadium and $2.5 million for University-wide scholarships. Another major gift was $10 million from Jim Swenson for scholarships and the new civil engineering building in Duluth. Nearly 88,000 individuals and organizations made gifts in FY 2008, including 51,000 alumni.

Student support, a major fund-raising priority, reached $56 million in FY 2008. The U launched the Promise of Tomorrow Scholarship Drive in July 2003 and has since raised $233 million for scholarships and fellowships. More than 7,000 students now receive financial support through private gifts, compared with 4,800 before the drive was launched.

The $289 million includes cash gifts and pledges, as well as deferred commitments such as bequests and trusts. It includes gifts made to all U campuses, colleges and departments, including gifts made through the University of Minnesota Foundation, the Minnesota Medical Foundation, the Minnesota Landscape Arboretum Foundation, and the 4-H Foundation.

Private giving to the University of Minnesota grew from $50 million in fiscal 1990 to $289 million in fiscal 2008, the years of Fischer's tenure. The Foundation's endowment, one of three at the U, went from $150 million to $1.4 billion. Disbursements to University programs designated by donors went from $20 million in 1990 to $97 million in 2008, funding hundreds of endowed faculty positions, providing scholarships and fellowships to thousands of students, and funding new facilities on all U campuses. Fischer headed up the University's first billion-dollar fund-raising campaign, in 1996-2003, during which donors gave nearly $1.7 billion.

Fischer announced in November that he was stepping down as president and CEO, saying he would remain in the role until a successor was named. He will remain active with the Foundation in a part-time role as vice president, senior philanthropy advisor.

A successful career in business

Goldstein graduated from the University of Minnesota in 1973 with a degree in history and began a 13-year career with Carmichael-Lynch Advertising, where he eventually became senior vice president. He then served as vice president and general manager of WCCO Radio in Minneapolis until 1992.

In 1992, Goldstein co-founded Colfax Communications, where he acquired, operated and subsequently sold 17 major market radio stations. In 1997 he became chairman of Internet Broadcasting, a national network of television Web sites with partners Hearst Corporation, Washington Post Newsweek, McGraw Hill and CNN. About the same time he became involved in venture capital with St. Paul Venture Capital and launched Quatris Fund, an early stage venture fund, in 2000.

Goldstein also has extensive volunteer nonprofit experience, including serving as president of the University of Minnesota Alumni Association in 1989-1990. He was on the boards of the Walker Art Center, Blake School, the Greater Twin Cities United Way, the Minneapolis Foundation, and other organizations. He is currently a trustee of the Bush Foundation.