Although Northwestern did not experience a significant increase in donations this year, newly released data shows NU continues to bounce back from a poor economy.
Colleges and universities saw an increase of 8.2 percent in donations for the 2011 fiscal year, according to a report by the Council for Aid to Education.
Despite the nationwide increase in donations, NU raised about $230 million in 2011, roughly the same as last year, said Robert McQuinn, vice president of alumni relations and development.
According to the report, the 20 wealthiest universities received 27.2 percent of all donations made to higher education. NU did not make the top 20 on the list but was close to the University of Minnesota, which raised $272 million and was the 20th university, McQuinn said.
Although fundraising plateaued in the last year, the steady increase in fundraising since the recession between 2007 and 2008 demonstrates NU is following the national trend and benefiting from an improving economy, McQuinn said. For example, between Fall Quarter 2011 and Winter Quarter 2012, donations increased about 15 percent compared to the same period last year, he said.
Donations account for nearly 10 percent of NU’s operating budget of $1.8 billion and are an important source of funding for scholarships, NU spokesman Al Cubbage said.
“The good thing about it is that those gifts go to support things that are really critical to Northwestern, like scholarships for undergraduate students, fellowships and endowed professorships,” he said. “Those gifts are important to the overall financial health of the university.”
McQuinn said 80 to 95 percent of the donations have been designated by the benefactors for specific uses, such as research funding or scholarships. However, the majority of donations that come from NU’s Phonathon campaign are unrestricted, said Paula Bernhard, Phonathon student supervisor and a Weinberg junior. Phonathon raised a record $1.4 million in 2011.
Between 50 and 70 percent of donations come from alumni and foundations, and donations from these two groups increased 15 percent in 2011, McQuinn said. Alumni tend to be one of the largest groups of donors because of their natural affinity for the University, Cubbage said.
Part of the fundraising efforts focus on increasing the alumni participation rate, which measures the percentage of alumni who give back to the University, Cubbage said. This is an important figure because it plays a role in the ranking of the University by the U.S. News & World Report, he said .
“It is also considered to be an indicator of how alumni feel about the University and whether their experience was good enough that they are now willing to support it,” he said. “For Northwestern, the key thing is to hopefully improve the participation rate and have a higher percentage of alumni giving.”
Nationally, alumni donations rose 9.9 percent in 2011 and represent 26 percent of all donations to universities, according to the report.
The improving economy also benefited NU’s endowment fund, which increased 17.5 percent in 2011, McQuinn said. NU is also optimistic that a strong strategic plan will attract more donations and new sources of funding.
