A weak economy and tumultuous stock market have many wondering where their money went.
Orange County universities are no exception.
Fundraising, which is used to support academic programs and recruit faculty, is proving more of a challenge than in years past, local university officials say.
But universities say they’re up for the challenge.
Local universities such as University of California, Irvine, Chapman University and California State University, Fullerton, have thrived in the past few years thanks to hefty donations from charitable individuals and businesses.
UC Irvine has seen its share of generous gifts recently including a $20 million donation from Irvine Company’s Chairman Donald Bren, $1 million from trial lawyer Mark P. Robinson and $1 million from heiress Joan Irvine Smith for the university’s new law school.
The university received $30 million for a telescope project, including $10 million from Microsoft Corp. founder Bill Gates earlier this year.
Last month the school received a $1.7 million donation from the Bill & Melinda Gates Foundation to create an institute focused on the growing use of cell phone technology in providing banking and financial services to people in developing countries.
UCI ended the 2007-2008 school year with a record breaking $130 million in gifts and pledges, the third consecutive year the university has seen donors contribute more than $100 million.
Cal State Fullerton’s business school received a $30 million donation from Steven Mihaylo, a 1969 Cal State Fullerton graduate and founder of Arizona’s Inter-Tel Inc, now part of Mitel Networks Corp. Mihaylo also donated $4.5 million to the university in 2004.
The $30 million donation ranks among the largest charitable gifts in OC.
Cal State Fullerton’s new business school building, which opened earlier this month, now bears Mihaylo’s name. (see story page 32)
Last month the university received $5 million for its performing arts center from the Joseph A.W. Clayes III Charitable Trust to fund scholarships and create programs for the center.
Although Chapman is OC’s smallest college with less than 6,000 students, it boasts the biggest endowment fund in OC at $276 million.
A noteworthy factor in Chapman’s healthy endowment is President James Doti’s strong OC ties, which have helped the school garner support from executives and philanthropists, said Sheryl Bourgeois, executive vice president of university advancement at Chapman.
Chapman trustees include Paul Folino, executive chairman of Costa Mesa-based Emulex Corp., Hadi Makarechian of Newport Beach’s Capital Pacific Holdings Inc., alumni George Argyros of Costa Mesa’s Arnel & Affiliates and Congresswoman Loretta Sanchez.
Chapman’s relationships within the local business community has helped it attract gifts such as the $8 million Marion Knott donated to build the $41 million, 76,000-square-foot Marion Knott Studios and the $10 million gift from developer Robert Hobbs to build the Roger C. Hobbs Institute for Real Estate, Law and Environmental Studies.
More individuals have given back to the college including trustees Don and Dick Schmid, whose family has donated to Chapman for several years and last month had the college of science named after them.
A downturn in the economy poses challenges for universities that rely on donations to help fund new programs, attract faculty and aid the construction of buildings and facilities, said Bourgeois.
The key to getting through this downturn is to stay true to the mission, she said.
“It’s important not to panic or overreact by trying a lot of new things,” Bourgeois said.
Chapman won’t likely host a slew of fundraising events since events are expensive to put on, Bourgeois said.
The university plans to keep benefactors informed about new programs, building projects and other campus-related news.
“People are probably being more selective about their philanthropy so we’re just trying to make sure that we’re giving them every reason to keep us on their list by recognizing their support and showing our appreciation,” Bourgeois said.
Since philanthropy often is the first to get cut when it comes to consumer spending in a down economy, schools are hopeful they can meet their fundraising goals.
UCI’s Chancellor Michael V. Drake announced at this month’s 2008 Medal Awards that UCI has raised $405 million for its “Shaping the Future” fundraising campaign and has plans to hit $1 billion before 2015.
The campaign focuses on raising money for programs related to health, the environment, sustainable energy, educating tomorrow’s leaders and embracing global opportunities in culture and business.
Donations will be used to support scholarships and fellowships, new buildings, equipment, labs, enhancing academic programs, recruitment and retention of faculty and collaborative programs that tackle global issues.
A local advertising effort to support the campaign is under way, according to the school.
UCI is among the youngest universities ever to embark on a $1 billion fundraising campaign, according to Thomas J. Mitchell, university advancement vice chancellor.
“Our alumni and community friends share the conviction that supporting UCI is a great investment in human potential,” Mitchell said. “Their participation in this campaign will help solve issues that matter to us here in Orange County and around the world.”
Certainly fundraisers work harder in a weak economy but UCI is optimistic enough about the university’s place in donors’ hearts, according to spokeswoman Cathy Lawhon.
Universities will have to be more persistent in attracting donations in a weak economy but will have to be understanding of their donors, Bourgeois of Chapman said.
“You always have to be sensitive to your donors’ needs and be accommodating if you can. People might have trouble supporting today, but that doesn’t mean you should be a fair weather friend,” Bourgeois said.
Despite troubles in the economy, universities believe that they will be able to pull through this dry spell.
“I think that people need to keep in mind that we’ve been through downturns in the economy before and that there’s always going to be an impact on philanthropy,” Bourgeois said. “The best thing to do is remain true to your vision and remain committed to the cause you’re involved with and engaging people for long-term involvement.”
