CU Foundation on Pace to Bring in Record Green
By Brittany Anas
Thursday, June 12, 2008 (Daily Camera)
The University of Colorado’s foundation is on pace to shatter another record this year — and behind the scenes, the fundraising arm is running dramatically leaner than it has in the past.
It now costs the CU Foundation 17 cents for each dollar it raises, said Nicky DeFord, a spokeswoman for the organization. That compares with two years ago when it cost 30 cents.
The trimmed-down operating expenses come as the foundation prepares to embark on a large-scale campaign — and as the fundraising arm beefs up its staff but scales down on its use of consulting firms.
“It’s a pretty basic equation,” DeFord said. “We’re bringing in more money and keeping a tab on expenses. We’re adding staff and we’re committed to bringing in more money.”
The University raised $133.5 million in donations last fiscal year, which ended June 30, making 2007 the best fundraising year in the school’s 131-year history. But school officials expect they are on target to set a new record.
Over the past year, the foundation has added about 30 positions, bringing its number of employees to 179.
Fundraising organizations, experts say, have a difficult balance to strike: Foundations don’t want to cut so thin that they are perceived as cheap by the donors they are trying to woo, yet those giving gifts want to see their money go directly to the cause.
“You don’t want to have the feeling that they’re wasting too much money on things that don’t matter,” said Doug Looney, a former senior writer for Sports Illustrated who donates to his alma mater and is on the foundation’s board of trustees.
The change in the foundation’s efficiency coincides with Wayne Hutchens’ leadership, Looney said. Hutchens, a former banker, began as chief executive officer of the foundation in 2006.
Stronger fundraising years have signaled restored confidence in the university, top leaders say. Donations have more than rebounded from fiscal years 2004 and 2005, when annual gifts dropped to below $50 million. The lower donations paralleled a series of scandals and high-level resignations.
Ken McConnellogue, a spokesman for the CU system, said reforms brought during former President Hank Brown’s tenure made the university more transparent and helped boost donors’ confidence in the school.
“Donors have confidence that the bulk of their gifts go to academic programs,” he said.
CU is on the verge of launching its next major campaign. A $1 billion fundraising campaign ran from 1997 to 2003 and was led by Bruce Benson, who is now president of the CU system.
“Universities are either in a comprehensive fundraising campaign, or they are planning for the next one,” McConnellogue said.
The Council for Advancement and Support of Education, based in Washington, D.C., will be conducting a new study of how much it costs universities to raise money. The last time the council took that measure was in the early 1990s, and the numbers showed it costs foundations up to 16 cents per dollar raised, said Pam Russell, a spokeswoman for the group.
Contact Camera Staff Writer Brittany Anas at 303-473-1132 or anasb@dailycamera.com.
