Development Report 2013-14

By Calvin D. Husmann
Vice President for Alumni, Development and Communications

Gift income from private sources1 totaled $17.68 million, a 58.9 percent increase from last fiscal year’s $11.1 million.  Gifts from alumni were up 125.6% and gifts from parents were down 17% from last fiscal year.  Gifts received from friends are up 17.9% with $490,619 received this fiscal year versus $415,998 last fiscal year.  Another aspect of giving—bequest income—was down over last year at $865, 634 versus $2.56 million. Membership in the Lawrence-Downer Legacy Circle grew to 917 living members from 852 in fiscal 2013. Gifts from corporations were up 265.7% at $398,248 versus $108,898 last fiscal year.  Foundation giving was about even with last year’s total at $1,091,915.

+ Use of Funds Received

Of the $17.68 million received, $1 million was received in gifts directed to the physical plant; $9.8 million for the endowment; and $1.1 million for life-income gifts.  The college received $1.98 million in restricted current gifts.  Gifts to the Lawrence Fund tallied $3.7 million and $10,336 was received in other budget-relieving gifts.  Pending discussions with donors regarding permanent allocations, $9,245 remains undesignated.

+ The Lawrence Fund

Lawrence secured $3,699,575 in Lawrence Fund gifts for fiscal 2014, a record for the Lawrence Fund. This total reflects a 9.3% increase from last fiscal year’s $3,384,463 and an increase from fiscal 2012’s $3,542,830 in gifts secured.  The largest increase in Lawrence Fund support came from gifts from friends, which was up 62.2% from last fiscal year.  We also experienced an increase in Lawrence Fund support from foundations (25.6%).  Trustee support of the Lawrence Fund was $901,220 versus $801,199 received from trustees last fiscal year. Eight trustees (Edie Andrew, Margaret Humleker, Kim Jordan, Tom Kayser, Harry Kraemer, O. B. Parrish, Dale Schuh, and one anonymous) gave at the Lutetium ($50,000) level of the Founders Club and seven trustees gave at the Lawrencium ($25,000) level (versus 5 and 10 respectively in fiscal 2013).

Founders Club membership was up for fiscal 2014 with 768 members versus 724 last year (the record is 773 members set in fiscal 2008).  Founders Club members contributed $2.57 million or 69.4 percent of Lawrence Fund gifts versus $2.25 million or 66.5 percent of Lawrence Fund gifts in fiscal 2013.
 
Support for Björklunden via the Boynton Society for operating gifts was up this year—$217,156 compared to last year’s $206,875.

In fiscal 2014, Lawrence Reunion classes, which includes the Milestone, Cluster and 55th Reunions this year, contributed $540,429 or 14.6 percent of all gifts to the Lawrence Fund.  When including gifts, multi-year pledges, restricted gifts, and planned gifts (for the 50th Reunion), the Classes of 1959, 1964, 1974, 1983, 1984, 1985, 1989, 2004, 2008, 2009 and 2010 collectively committed over $10.1 million.
 
The alumni donor participation rate dropped this year to 35.8% from 37.5% and the number of alumni donors declined to 5,093 from 5,292 last year and 5,377 in fiscal 2012.  We again conducted a “renewal” mailing this fiscal year.  As of June 30, we have received 108 replies from the two mailings and raised $42,655.  We also mailed anniversary cards to both prospects and non-prospects this year which continues to have one of our highest response rates (average of 13.3%), bringing in $42,741.

Lawrence’s overall alumni renewal rate has remained very consistent, and is something we are extremely proud of.  The Annual Giving office has been keeping a historical record of the alumni renewal rate:

Overall alumni renewal rate*

FY14 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003
79.4% 81.2% 78.1% 78.9% 77.8% 76.9% 73.5% 78.4% 79.1% 79.3% 82.5% 78.7

*Dan Allenby, who currently serves as Assistant Vice President for Annual Giving at Boston University and is on the faculty for CASE’s Summer Institute and past chair of its Conference for Senior Annual Giving Professionals, provides grading scores for retention rates. A retention rate over 75% receives an “A.”  Over the past two decades, Dan Allenby has worked, written, and spoken on the subject of Annual Giving and founded The Annual Giving Network, a group in LinkedIn where thousands of fundraisers exchange ideas and share best practices.

+ Endowment and Physical Plant

Gifts to the endowment totaled $9.83 million, an increase from the $3.39 million received last year.  Within the $1,010,705 million plant gifts, $523,653 was received for the Banta Athletics Renovation, $1,800 for the Hawthornden Bricks Fund, $252 for In-Kind Gifts, $285,000 for the Richard and Margot Warch Campus Center, and $200,000 for the Tennis Facilities Improvements.

 

1Although 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 2013-14 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 the prior fiscal year.

Development Report 2012-13

By Calvin D. Husmann
Vice President for Alumni, Development and Communications

Gift income from private sources1 totaled $11.1 million, a 19.6 percent decrease from last fiscal year’s $13.8 million.  A very successful conclusion to the More Light! campaign in October 2011 likely contributed to last year’s results.  Gifts from alumni and parents were down 22.9% and 7% respectively for the fiscal year.  Gifts received from friends were down 38.5% with $415,998 received this fiscal year versus $676,634 last fiscal year.  Another aspect of giving – bequest income – was down over last year at $2.56 million versus $3.27 million.  Gifts from organizations (corporations and foundations) were up 12.8% overall.

+ Use of Funds Received

Of the $11.1 million received, $1.7 million was received in gifts directed to the physical plant; $3.4 million for the endowment; and $20,000 for life-income gifts.  The college received $2.1 million in restricted current gifts.  Gifts to The Lawrence Fund tallied $3.38 million and $304,627 was received in other budget-relieving gifts.  Approximately $210,000 remains undesignated, pending discussions with donors regarding permanent allocations.

Realized bequest income totaled $2,560,074 a decrease from last year’s $3,271,971.  Membership in the Lawrence-Downer Legacy Circle grew to 852 living members from 842 in fiscal 2012.  Corporate and foundation support for fiscal 2013 was $1,460,544 versus $1,294,389 received in fiscal 2012 and $967,278 in fiscal 2011.

+ The Lawrence Fund

Lawrence secured $3,384,463 in Lawrence Fund gifts for fiscal 2013, which reflects a 4.5% decrease from last fiscal year’s $3,542,830 and a slight decrease from fiscal 2011’s $3,417,749 in gifts secured.  The largest decrease in Lawrence Fund support came from gifts from friends, which was down 27.2% from last fiscal year.  We experienced a modest increase in Lawrence Fund support from corporations (11.3%).  Trustee support of The Lawrence Fund was $801,199 versus $849,507 received from trustees last fiscal year.  Six trustees (Edie Andrew, Kim Jordan, Tom Kayser, O. B. Parrish, Dale Schuh, and one anonymous) gave at the Lutetium ($50,000) level of The Founders Club and four gave at the Lawrencium ($25,000) level (versus five and 10 respectively in fiscal 2012). 

Founders Club membership was down slightly for fiscal 2013 with 724 members versus 731 last year (the record is 773 members set in fiscal 2008).  Founders Club members contributed $2.25 million or 66.3 percent of Lawrence Fund gifts versus $2.35 million or 66.5 percent of Lawrence Fund gifts in fiscal 2012.

Support for Björklunden via The Boynton Society for operating gifts was down this year – $206,875 compared to last year’s 240,601 and $214,987 the prior year.  However, we surpassed the fundraising goal of $200,000.

In fiscal 2013, Milestone Reunion classes, which also includes our Cluster Reunions this year, contributed $462,090 or 13.7 percent of all gifts to The Lawrence Fund.  When including gifts, multi-year pledges, restricted gifts, and planned gifts (for the 50th Reunion), the Classes of 2003, 1997, 1998, 1999, 1988, 1977, 1978, 1979, 1973, and 1963 collectively committed over $2.6 million.

The alumni donor participation rate dropped slightly again this year to 37.5% from 38.1% and the number of alumni donors declined to 5,292 from 5,377 last year and 5,619 in fiscal 2011.  We again conducted a “renewal” mailing this fiscal year.  As of June 30, we have received 155 replies from the two mailings and raised $43,961.  We also mailed anniversary cards to both prospects and non-prospects this year which continues to have one of our highest response rates (average of 11.8%), bringing in $36,628.

Lawrence’s overall alumni renewal rate has remained very consistent, and is something we are extremely proud of.  The Annual Giving office has been keeping a historical record of the alumni renewal rate:

Overall alumni renewal rate*

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003
81.2% 78.1% 78.9% 77.8% 76.9% 73.5% 78.4% 79.1% 79.3% 82.5% 78.7

*In a blog posted by Dan Allenby, who currently serves as Assistant Vice President for Annual Giving at Boston University and as Chair of CASE’s Senior Annual Giving Conference he provides grading scores for retention rates.  A retention rate over 75% receives an “A.”  Over the past two decades, Dan Allenby has worked, written, and spoken on the subject of Annual Giving and founded The Annual Giving Network, a group in LinkedIn where thousands of fundraisers exchange ideas and share best practices.

+ Endowment and Physical Plant

Gifts to the endowment totaled $3.39 million, a slight decrease from the $3.9 million received last year.  Within the $1.7 million plant gifts, $482,000 was received for the Hurvis Center/Downer Renovation, $286,000 for the Warch Campus Center, $436,000 for Stansbury Theatre renovation, and $230,000 for Banta Athletics Renovation.

 

1Although 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 2012-13 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 the prior fiscal year.

Financial Report 2012-13

By Brian J. Riste
Vice President for Business and Operations

Financial results for Lawrence University for the fiscal year that ended June 30, 2013, continued to reflect the slow pace of the economic recovery in the United States. Despite the challenges impacting all key operating revenue sources, the university produced a modest operating surplus of just under $200,000 through prudent fiscal management.

Income from tuition and fees before discounts awarded to students for 2012–13 was $58.7 million, which is a $3.8 million or a 7 percent increase over tuition and fees for 2011–12. This increase was significantly offset by a $3.5 million increase in discounts that were awarded to students, resulting in a $300,000 or 1 percent increase in net tuition billed and collected from students. Net student revenue represents just slightly over 59 percent of all operating revenue received during the fiscal year.

The endowment experienced strong growth for 2012–13 with $22.6 million in investment earnings and $4.1 million in contributions, resulting in a market value of $212.4 million on June 30, 2013. The endowment distribution for operations was $9 million, which was essentially identical to the prior year’s distribution. The distribution is based upon a formula that takes 5 percent of an average of the endowment market value for the past 12 quarters. the solid growth in recent quarters was offset in the calculation by prior years’ quarters when the endowment was negatively impacted by the economic downturn.

Total operating revenue increased by $1.1 million or 2 percent for fiscal year 2012–13. To achieve a modest surplus and continue to build financial strength into the balance sheet, faculty and staff exercised a high level of fiscal prudence in the management of their operating budgets. in fact, total operating expenses declined by $800,000 from 2011–12.

The strong growth in the endowment fund and careful and prudent management of the operating budget were reflected in the balance sheet in different ways. The university continued to maintain an improved cash position and, consistent with the prior year, did not carry any obligation on the available line of credit. Long-term debt obligations have been reduced by $9 million or 24 percent from a balance of $46.1 million on June 30, 2010, to $37.1 million as of June 30, 2013. In addition, net assets, which reflect total assets less total liabilities against those assets, grew by $24 million or 8.7 percent to $299 million.

Lawrence University has made solid financial progress in the past few years in spite of the difficult challenges that all private colleges have been facing. this progress is evidenced by a recent Moody’s Investors Service rating update, which affirmed our current rating and spoke to our conservative fiscal management with strong short- and long-range planning. The Lawrence community has done a wonderful job protecting and financially strengthening our renowned institution. it is critical as we move forward in a difficult time to continue to work together to strengthen and financially sustain the college for the long term.

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