Reports

Development Report 2011-12

By Calvin D. Husmann
Vice President of Development and Alumni Relations

Gift income from private sources totaled $13.8 million, a 4.5 percent increase over last fiscal year’s $13.2 million. A very successful conclusion to the More Light! campaign last October contributed to these results. Gifts received from friends were up 202 percent with $676,634 received this fiscal year versus $223,711 last fiscal year. Another aspect of giving—bequest income—was up significantly (321 percent) over last year. Gifts from organizations (corporations and foundations) were up 33.8 percent overall. That said, gifts from alumni and parents were down 22 and 40 percent respectively for the fiscal year.

+ Use of Funds Received

Of the $13.8 million received, $2.2 million was received in gifts directed to the physical plant; $3.9 million for the endowment; and $10,000 for life-income gifts. The college received $4 million in restricted current gifts. Gifts to The Lawrence Fund tallied $3.54 million and $44,200 was received in other budget-relieving gifts. Approximately $54,000 remains undesignated, pending discussions with donors regarding permanent allocations.

Realized bequest income totaled $3,271,971 a 321 percent increase from last year’s $777,780. Membership in The Lawrence-Downer Legacy Circle grew to 842 living members from 831 in fiscal 2011. Corporate and foundation support for fiscal 2012 was $1,294,389 versus $967,278 received in fiscal 2011.

+ The Lawrence Fund

Lawrence secured $3,542,830 in Lawrence Fund gifts for fiscal 2012, which reflects a 3.7 percent increase from last fiscal year’s $3,417,749. Our largest increase in Lawrence Fund support came from gifts from corporations (up 47.6 percent). Lawrence Fund gifts from friends were up 24.8 percent over last fiscal year. Overall, we had a slight increase in Lawrence Fund gifts from alumni (1.4 percent), parents (5.5 percent) and an increase in Lawrence Fund support from foundations (5.8 percent).

Founders Club membership was down slightly for fiscal 2012 with 731 members versus 737 last year. Founders Club members contributed $2.35 million or 66.5 percent of Lawrence Fund gifts versus $2.27 million or 66 percent of Lawrence Fund gifts in fiscal 2011.

In fiscal 2012, Milestone Reunion classes contributed $270,814 or 7.6 percent of all gifts to The Lawrence Fund. When including gifts, multi-year pledges, restricted gifts, and planned gifts (for the 50th and 60th Reunions), the Classes of 2002, 1987, 1972, 1962 and 1952 collectively committed almost $5 million.

Support for Björklunden via The Boynton Society was up this year—$240,601 compared to last year’s $214,987—for operating gifts for Björklunden.

The alumni donor participation rate dropped slightly again this year to 38.1 percent from 40.1 percent. The number of alumni donors declined to 5,377 from 5,619 last year and 5,844 in fiscal 2010. Lawrence’s overall alumni renewal rate has remained fairly consistent:

	Goal FY13	2012	2011	2010	2009	2008	2007	2006	2005	2004	2003
Overall alumni renewal rate	80%	78.1%	78.9%	77.8%	76.9%	73.5%	78.4%	79.1%	79.3%	82.5%	78.7%

In a blog post by Dan Allenby, who currently serves as assistant vice president for annual giving at Boston University, he provides grading scores for retention rates. A retention rate over 75 percent receives an “A.”

+ Endowment and Physical Plant

Gifts to the endowment totaled $3.9 million, an increase from last year’s $2.4 million. Within the $2.2 million plant gifts, $1 million was received for the Downer Renovation, $355,000 for the Warch Campus Center, $551,000 for Landis Residence Hall renovation, $114,000 for the Stansbury Theatre renovation, and $3,000 for the Björklunden Expansion project.

Celebrating a very successful conclusion to the More Light! campaign in October was definitely the highlight for fiscal 2012. The Lawrence community celebrated in style with fireworks, live music, and Lawrence’s first “flash mob” featuring the choir performing the Hallelujah Chorus to surprised and delighted guests. On behalf of Lawrence University, I send my heartfelt gratitude for your generosity.

Financial Report 2011-12

By Brian J. Riste
Vice President for Business and Operations

The 2011-12 fiscal year proved to be very challenging for the university as it was for all segments of higher education. The projected number of returning students exceeded actual returning students producing a gap between our projected and actual budgets. In addition, consistent with the overall trend in private college pricing and in order to achieve our incoming class size and quality, Lawrence provided students with a discount that was larger than published tuition rates. Finally, investment returns on endowment assets, though tracking with the benchmarks, were essentially flat for the year.

The university aggressively responded to the decline in core revenues by deferring some capital projects, reducing staff positions through attrition and deferring the filling of several open positions. The end result was that we achieved a modest surplus, which allowed us to create some reserves to provide protection against future financial challenges. I would like to thank the entire Lawrence community for finding ways to help contribute to resolving the expense gap that we encountered this year.

As Lawrence and other private colleges move forward, it is important that we clearly recognize and aggressively respond to the likelihood of increased discounting of published tuition to meet our student body goals and to investment returns that are considerably less than those achieved in the past. As an institution, to achieve long-term financial sustainability we must carefully evaluate opportunities to create alternative revenue streams as well as evaluate and balance the risks and benefits of further reductions.

As devoted members of the Lawrence Community it is important that you continue to support our university financially and determine if there are ways to increase your support. Lawrence University, which provides an education rivaling that of more deeply endowed institutions, is able to achieve this quality only with the support of our dedicated and grateful alumni, parents and friends.