The partner foundations of CUNY colleges face the challenge of maintaining the value of their endowments during these tough economic times. These endowments typically support scholarships, professorships and academic programs.
The corpus of many endowments has decreased below the original value of the gift, a condition often referred to as an “underwater” endowment. Concerned about the impact of the recession on college endowments, the University provided guidelines on how college foundation boards and administrations may approach the management of such funds.
When most donors are concerned that the economic downturn will negatively impact their gifts and competition for donors intensifies, increased communication is imperative. To renew and strengthen relationships with donors, colleges should apprise donors of the status of their funds and reassure them that the college has the expertise to ensure that the gift continues to support the donor’s original intent.
This is the approach used by Brooklyn College and their efforts have turned a difficult situation into a positive effort of stewardship and cultivation. Vice President Andrew Sillen contacted over 300 Brooklyn College donors who had contributed to endowments that are now underwater. They received 95 responses to date. Over 50 individuals opted to either top-up their funds or convert endowments to quasi-endowments.
“The response has been beyond expectations and has actually turned out to be a positive cultivation exercise” Sillen noted. In all cases, discussions were constructive, and we feel we are in stronger positions with these donors than existed before the letters were sent.”
