US: Voluntary support down by 12%

It is hardly surprising that voluntary support for US colleges and universities has declined over the past year, given the current economic crisis. But 2009 saw the greatest fall in more than half a century.

The annual Voluntary Support of Education survey released last week recorded the full extent of this decline: from a record high in 2008 of almost $32 billion in private donations down to less than $28 billion in 2009. The 11% decline followed directly on the heels of contribution increases that had averaged 4% a year since 1999.

The survey was sponsored by the New York City-based Council for Aid in Education, a non-profit organisation established in 1952 to interpret empirical data on trends in private contributions to more than 1,000 higher education institutions in the US.

Identifying the sources of voluntary support by groups, the survey found that individuals (alumni and non-alumni) gave significantly less in 2009 than in 2008 (down by 18% and 18.4% respectively). Gifts from religious organisations were also down (by14.5%) although losses from corporations and organisations were not so pronounced (down by 5.7% and 9.5% respectively).

Similarly, reductions varied among types of institution: gifts to private colleges offering associates degrees fell by 79% and to public institutions specialising in masters programmes by 31%.

There were also notable patterns in donations: long-term donors were more likely to maintain their contributions while institutions in regions hardest hit by the crisis tended to suffer the greatest losses in voluntary support.

Ranged according to purpose, the survey found a staggering 25% decline in voluntary support for capital purposes (a category that includes endowments as well as support for property, buildings and equipment).

University endowments alone were reported to have lost 22% of their market value from 2008. By contrast, contributions to current operations were down only by 0.7% over the same period.

Another important finding by the survey was that the top 20 fund-raising institutions in the US received 12% less in voluntary contributions although these totalled $1.13 billion last year.

Of the survey respondents, the group reporting the largest decline in donations was private liberal arts colleges, losing 18% of their charitable income. Bucking the trend, Cornell University did not suffer any decline: in fact, charitable contributions were up by 9% to $447 million.

Although the fall in donations was expected in light of the economic circumstances, there is optimism the trends will not persist. Explains Ann E Kaplan, director of the survey: "Historical patterns indicate that as the economy recovers, contributions will rise again."