By Gregory A. Volk
Vice President for Development and External Affairs
In the past year -- for the first time since 1987 -- charitable giving in the United States declined in inflation-adjusted dollars. The tragic events of last September 11 and subsequent political and economic turbulence have posed unprecedented challenges to the fund-raising efforts of the non-profit sector. While Lawrence continues to benefit from generous support from its constituencies, the college's development program is not immune from these external forces.
Although Lawrence's fund-raising results for fiscal 2001-02 were exceedingly strong, there is some cause for concern, in that gift income declined in several elements of our program. On the one hand, gift income from private sources totaled $18,533,890* in fiscal 2002, an increase of 40 percent over the previous year's $13.2 million. Thus, fiscal 2002 stands as the second-best fund-raising year in Lawrence's history. The principal factor in this robust total stems from the extraordinary growth in realized bequest income ($9.3 million, versus $2.3 million in fiscal 2001). On the other hand, gifts from living individuals totaled $7,168,342, versus $8,729,374, a drop of 18 percent. Corporate and foundation giving tallied $2,100,246, a seven-percent decline from 2000-01's $2,248,990. As bequests are almost always designated for the college's endowment, gifts to the endowment were dramatically above last year's levels. The decline in individual and corporate and foundation giving, however, reduced the level of gift income that can be devoted to the college's operations.
As the economy continues to make a slow recovery and because the college's endowment has lost value in the past year, it becomes more and more critical that we encourage all who care deeply about Lawrence to either begin, resume, extend, or -- if possible -- increase their unrestricted gifts to The Lawrence Fund.
Uses of funds received
Of the $18.5 million total, $2,806,943 was received for The Lawrence Fund, $85,334 in other budget-relieving gifts, and $1,209,520 in restricted current gifts, bringing the total of expendable support to $4,101,797. Gifts to the endowment totaled $9,149,054, of which $66,430 represents life-income gifts; $225,324 remains undesignated, pending decisions by donors regarding the allocation of their gifts; and $4,989,660 was directed toward the physical plant.
The Lawrence Fund
Gifts to The Lawrence Fund tallied $2,806,943, comfortably ahead of the $2.6 million goal, though short of the previous year's $3 million all-time record. Trustee support of The Lawrence Fund reached $600,595, a critical factor in these results, and 14 members of the board joined the Lawrencium level of our Founders Club with gifts of $25,000 or more. Membership in The Founders Club, the leadership annual giving society, dropped from 560 members in 2001 to 524 members in 2002. In the aggregate, gifts to The Lawrence Fund at the Founders Club level ($1,000 or more) tallied $1,718,299, or 61 percent of the entire Lawrence Fund, clear evidence that our Founders do indeed provide strong leadership within the annual giving program.
The Milestone Reunion Class Gift Program raised a total of $390,000 for The Lawrence Fund from members of the Classes of 1952, 1962, 1977, and 1992. The Class of 1992 set a new record for the tenth reunion gift with a total of $28,415 (gifts and pledges). The Class of 1977 raised a grand total of $219,825, thereby establishing a new record for the 25th reunion class gift. The Class of 1962 established new records for the 40th reunion: the most Founders Club members (45) in a milestone reunion gift and the largest 40th reunion gift to The Lawrence Fund ($227,173). Celebrating its 50th reunion, the Class of 1952 raised a total (including planned gifts) of $398,454, with 67 percent participation.
Within The Lawrence Fund, operating gifts to Björklunden, through the Boynton Society, reached $140,390, a five percent increase over the preceding year. A total of $234,583 was received in gifts from 2,132 parents of current and former students, a nine percent increase. In addition, friends of the college contributed $163,696, a ten percent increase over fiscal 2001. Corporate and foundation support of The Lawrence Fund reached $443,015 -- 13.9 percent less than the year before. Overall, Lawrence Fund giving was off 9.3 percent from the previous year's record-setting results.
Alumni donor participation rate
The drop in Lawrence Fund gift dollars is also reflected in the alumni donor participation rate, which reached 49.0 percent (versus 50.3 percent in fiscal 2001). Lawrence has long prided itself on having one of the best alumni donor participation rates in the country. While this year's drop was comparatively modest, the college must bolster the participation rates of younger alumni, those who have graduated since 1980. Our alumni donor participation rates when viewed by decade stand as follows: 1930s, 58.6 percent; 1940s, 60.1 percent; 1950s, 60.9 percent; 1960s, 58.6 percent; 1970s, 51.2 percent; 1980s, 45.1 percent; and 1990s, 31.6 percent. Giving is a habit, and it is imperative that we find ways to encourage more younger alumni to embrace the tradition of annual support as strongly as have alumni from earlier decades.
Endowment
Additions to endowment from gifts totaled $9.1 million or 50 percent of total gift income, a 73 percent increase over last year's $5.3 million. Distributions from two major bequests -- Ottilia Buerger, '38 ($4 million for an endowed professorship), and Marjorie Freund, '35 ($2.5 million for an endowed scholarship) -- feature prominently in these strong results.
Physical plant
Receipts within the plant fund totaled $4,989,660 or 27 percent of gift income, an increase of 69 percent over the previous year's $2.9 million. Major gifts for bricks-and-mortar purposes were received for the new residence hall currently under construction, for Science Hall, and for renovations to Main Hall and the Memorial Chapel. In addition, the receipt of an extraordinary collection of ancient Roman and Greek coins through a bequest of Ottilia Buerger, '38, was recorded in the plant fund. That collection is now housed in the Wriston Art Center and provides unequalled opportunities for teaching and research for the college's faculty and students.
Pledges
Of the $18.5 million received during 2001-02, $4,284,289 arrived in the form of payments on pledges made during prior fiscal years. During the same period, Lawrence recorded $10,915,016 in new pledge commitments.
National Endowment for the Humanities Challenge
Following notification in early December 2001 that Lawrence had been awarded a $500,000 challenge grant from the NEH to endow our Freshman Studies program, substantial progress has been made toward meeting the goal of securing $2 million in new gifts by July 31, 2005. More than 250 alumni and friends have contributed $775,000 in answer to this challenge grant, and their enthusiastic response is profoundly appreciated.
The generous support of Lawrence's many benefactors continues to strengthen every aspect of the college. Be assured that all of us on campus remain deeply grateful for your confidence in our efforts. The philanthropic support that Lawrence receives enables us to continue to provide a first-rate liberal education to talented and deserving students. For this we express our sincere gratitude and our continued commitment to serve as responsible stewards of your contributions.
* Although the figures here presented are in compliance with standards adopted by CASE (Council for the Advancement and Support of Education) and NACUBO (National Association of College Business Officers), they differ from the presentation of gift income on the college's financial statements. This report includes both gifts and payments on pledges received during 2001-02 but excludes new pledges received during the fiscal year. Financial statement gift income, on the other hand, augments these numbers by the value of new pledges received during the year and reduces them by the value of payments made on pledges received in prior fiscal years.