The sour economy has put more of a damper on capital and endowment gifts than those for operating expenses, according to a new survey.
In the survey of 43 institutions that have completed fiscal 2009, pledges in fiscal 2009 declined by an average of 33 percent compared with fiscal 2008.
Cash gifts to pay for buildings and other capital projects to organizations in the survey — mostly private schools and colleges and universities — dropped by an average of 26 percent compared with fiscal 2008. Endowment gifts in 2009 had the next steepest drop, 19 percent on average.
Meanwhile, gifts that organizations could use for operating costs — including both those earmarked for such purposes and unrestricted donations — fared better. Earmarked gifts declined by 4 percent and unrestricted donations by 7 percent.
The survey, conducted by Marts & Lundy, a Lyndhurst, N.J., fund-raising consulting firm, uncovered some tactics that institutions are using to motivate donors to give even though they are worried about the economy.
For example, one institution asked a donor to endow a scholarship fund with $100,000, payable over five years, but the donor hesitated to make a firm commitment because of the economy. The organization persuaded the donor to instead pledge $5,000 per year — the same amount that the $100,000 fund would have produced annually — with the idea of fully endowing the scholarship once the economy improves.
A report about the survey and the full results may be downloaded from the company’s Web site. Free registration is required.






