University Philanthropy

In 5th century BC, Plato made an endowment to the world's first university. That endowment generated income for nearly a thousand

years, and helped the Athenian Academy grow into what many consider a primary instigator of intellect and democratic values.

Alison R. Bernstein, The Presidency, Fall 2003

The University of Turin and Fondazione CRT:

Benefits of A Partnership

1. Sharing Resources FINANCIAL: An investment in the form of a 3-year

Fund HUMAN: Administrative and Managerial services

provided by Foundation Staff EXPERIENTIAL: Quality consulting offered by

experienced philanthropy and higher education professionals

The University of Turin and Fondazione CRT:

Benefits of A Partnership

2. Creating a Self-Sustaining Fund With the Fund generated, invested, and managed by

the Foundation, a reliable financial resource will be available to the University

By spending only the interest generated by the Fund (and not the principal), the University will consistently maintain a significant financial resource

The University of Turin and Fondazione CRT:

Benefits of A Partnership

3. Creating Leverage for Additional Gifts The large investment made by the Foundation will

create a significant pool of ‘Seed Money.’ With the funds managed by the Foundation, this new

model of ‘granting’ guarantees a financial return. This initial offering will serve as leverage for

obtaining gifts from potential donors: Alumni Current Students Other Foundations Major Institutions Large Community-Based Businesses and Corporations

University Philanthropy: Types of Organizations

UNIVERSITYFOUNDATION

Formal

Independently Established

Typically No Staff

Large Scale Fundraising and Fund management

ALUMNI ASSOCIATION

Fun

Usually a University Department

Fully Staffed

Social Activities, Services to Students, Small Scale Fundraising

University Foundations:The Purpose

To Advance the University Status Resources Performance

To serve as Planner, Provider, and Recipient of Voluntary Support

• Lead Fundraising Activities• Manage Assets• Receives Gifts• Distribute Funding according to University needs

Website of the Clemson University Foundation

U.S. Universities and their Foundations

Top 5 Recipients of Foundation Grants for Higher Education, 2005

This list represents the universities that received the highest amount of foundation grants in higher education in 2005. Presumably, this list also suggests the largest university

foundations, which are charged with applying for and managing the foundation grants received.

1. University of California $128,227,2462. Harvard University $106,345,3093. University of Washington $ 93,348,7494. California Institute of Technology $ 81,138,4715. United Negro College Fund $ 75,240,053

Website of The Foundation Center

Having a University Foundation:

Benefits to the University

Provides a private/public partnership vehicle for raising and managing money

Offers politically neutral, less restrictive environment

Allocates unrestricted money to urgent needs

Manages donated funds and distributes their earnings according to guidelines monitored and authorized by the independent governing board

Website of the Clemson University Foundation

Having a University Foundation:

Benefits to Alumni Donors

Naming Rights

Public Service Opportunity

Continued Engagement with the University

Legacy

Website of the Clemson University Foundation

University Philanthropy in Italy

STEP 1: CONDUCT RESEARCH

Examine the Current Culture of Alumni Giving Circulate a Survey to Measure Current Giving Trends

Evaluate the University’s Fiscal Needs Academic Programs Operational Costs Research

Track the Capacity for Growth of the Fund Number of Graduates per year Annual Earnings of Graduates

Internal Research and Findings

University Philanthropy in Italy

STEP 2: DEVELOP STRATEGIESFOR THE FOUNDATION

Strategy for Financial Goals Strategy for Fundraising Strategy for Investment Strategy for Board Structure

Internal Research and Findings

University Philanthropy in Italy

STEP 3: IDENTIFY SEED MONEY

External Support Grant-Making Foundations

1. Bill & Melinda Gates Foundation2. Lilly Endowment, Inc.3. The Robert Wood Johnson Foundation4. The Andrew W. Mellon Foundation5. The Ford Foundation

Individual Gift• Endowment• Bequest

Potential Board Members

Internal Research and Findings

An Italian Model:Elements to Consider

Historical Social Economic Political

Resources:Higher Education & Philanthropy

Instructors John R. Thelin, University of Kentucky:

Educational Policy Studies Department Dr. Kevin C. Robbins, Indiana University:

History of Philanthropy in the West

Practitioners Alison Bernstein, Ford Foundation

VP of Knowledge, Creativity, and Freedom Program Rob Porter, Clemson University Foundation

Director of Development

The Takeaway

In the United States, University Philanthropy has been rationalized, nationalized, and capitalized since 1639.

In Anglo-Saxon countries, university philanthropy is absolutely essential. In continental Europe, decreases in government support may require higher levels of private support for universities.

BUT Government subsidization of attending university in

Italy may discourage university philanthropy.