Members of the work force and Northwestern researchers, both of whom rely on corporate dollars, are seeing two very different sides to the same recession.
As the country’s work force digs out from the dust and pink slips of a tumultuous year, some members of the scientific community still said they aren’t worried that the downward economy will influence their research.
Although names like Ford Motor Co.-which announced plans to cut 35,000 jobs worldwide last Friday- continue to wage war against declining profit margins, names like Ford Foundation, the auto makers’ philanthropic entity, do not share such battles.
“(Corporate) foundations are set up during good times to ensure stabilized charitable giving.” said Ronald Vanden Dorpel, NU’s vice president of development.
Separated from the corporations that establish them, foundations are protected from economic swings and company restructuring, he said. Vanden Dorpel also said none of NU’s corporate donors have showed signs of pulling back on commitments or donations in spite of the economic downswing.
“We’ve actually had a particularly good year in corporate donations,” he said.
In addition to the Ford Foundation’s $13 million donation, the McCormick School of Engineering recently received a $32 million equipment donation from three major companies. The Avon Foundation also pledged $10 million to the Medical Center’s breast cancer research program.
Ford Foundation Communications Coordinator Brook Galbraith said the foundation has “no plans to reduce funding to Northwestern or in general.”
“Contribution levels will be evaluated,” she said, “but we will be continuing to accept proposals. If we made commitments already, we’re going to stick to them.”
Ameritech, despite its own financial difficulties, also plans to continue donating to NU.
“The tough economy is affecting us like it is others but we remain committed to the communities we serve,” said Aaron Shoeherr, spokesman for Ameritech’s parent company, SBC Communications Inc.
Even if the Ford Foundation and other corporations were forced to halt some of their contributions, the majority of NU’s research proposals would still be funded through government grants. Jeff Coney, NU’s director of new business initiatives, said only about 25 percent of the university’s research is funded by corporate donations. In 2000, about $17.5 million of NU’s total $30 million in research funding came from the government, he said.
Although funding may be secure for the time being, some dissenters amidst the choir of reassuring corporate and university voices said there still may be cause for concern if the nation remains mired in an economic slump.
Barbara Jo Mueller, assistant director of NU’s Tech Corp Partners, a program run through the Office of Industry Relations, said she deals with some companies who admit they are having difficulties.
“We’re actually having the companies renew their memberships (in the Tech Corp Partnership) now and one or two of them have mentioned that they are having difficulties at this time,” Mueller said.
Chemical Engineering Prof. Wesley Burghardt, who received a grant from DuPont’s philanthropic foundation several years ago, said the precarious link between corporations and research will be tested.
“When times are hard there is less likely to be interaction between industry ad research organizations,” Burghardt said.
