Forever Valpo Fundraising Campaign

[vu72]

Didn't forget anything...IMO it'd look pretty bad to celebrate all the money you've raised when you're in the midst of cutting back. I know that's run me the wrong way if I were on the receiving end of one of these cuts.

The fund raising started well before this pandemic hit us.  Should we not be grateful?  Should we not celebrate the incredible loyalty of the alumni?  The necessary cuts are unfortunate as are the millions of others who have lost jobs.  As with any industry, when tough times hit it requires a reassessment of priorities and budgets.  Every company is doing the same thing or are closing their doors.  Two separate items.

[M]

I guess we disagree on the optics. No biggie.

[usc4valpo]

As much as this sucks, I agree with 72. I know it is a nonprofit institute of learning, but you have to carry out business savvy to run this operation. What areas of the university are providing little or no value?  It's tough and it sucks, but these decisions have to be made to stay afloat.

[M]

I'm not disagreeing that they are making right or wrong decisions...I'm saying they probably shouldn't put out too big of a celebration for raising the most money ever (or whatever the distinction would be) when you've made or are making cuts to your employees, their pay, their benefits.

I'm clearly in the minority though, so I'll show myself out.

[bbtds]

I'm not disagreeing that they are making right or wrong decisions...I'm saying they probably shouldn't put out too big of a celebration for raising the most money ever (or whatever the distinction would be) when you've made or are making cuts to your employees, their pay, their benefits.

I'm clearly in the minority though, so I'll show myself out.

Only because it fits. I'm actually pretty neutral on this one.

[loschwitz]

St. Olaf has announced that its capital campaign has raise $252 million.

The original goal was $200 million, but the college kept the campaign going even after surpassing the target.

Is Valparaiso doing the same?  I recall a couple of Forum members who expressed the opinion that there was no reason to try for a higher amount.

[usc4valpo]

It is ok to take in more, but you don't raise the target in the middle of the effort. It is incredibly tacky. It's like a running a marathon and at mile 25  they ask you to run an additional 5 mi. It would be a classless move.
  .

[crusadermoe]

These big and complex campaign goals are a two-edged sword. 

When you use counting rules that maximize the buzz of the total you proclaim, you create a disconnect when you run short on cash. It can be explained, but it's awkward.  If you peel away the layers of that $250 million onion Valpo has achieved, I suspect you would find less than $20 million was raised in spendable cash for the budget and that it was spent as fast as it was raised.  That cupboard is probably bare. 

The big universities started this "peacock race" to throw billion dollar goals out there into the headlines and compete in the public eye.  The numbers aren't all cash of course, and now their puffed up fund-raising totals have drawn attention from congress and from the state legislatures who apportion money to them.  The private universities like Valpo only have to answer to their puzzled employees, alumni, and donors.     

[valpo64]

Resetting a campaign goal before it is finished  isn't that unusual.   I don't know what our situation is but we surely should not quit before it is over even if we surpass our original goal.

[vu72]

Resetting a campaign goal before it is finished  isn't that unusual.   I don't know what our situation is but we surely should not quit before it is over even if we surpass our original goal.

We are clearly over the original goal.  Total posted says 249,520,753.  We raised 750,000 on the Day of Giving, which is more than enough.  That was in May!  I doubt all of our fund raisers have been furloughed! As I recall the stated close date was June, 2021 and I may be way off on that.  Hopefully they are negotiating on some very large gifts to top it off near 300mil

[vu84v2]

crusadermoe - The way that you frame "cupboard is bare" is misleading (at best). In "normal times", the principal is retained and funds are paid out annually (often to things that would be in an annual budget, such as scholarships) from money earned on the principal. You can say whether you like that or not - but that is the definition of endowment, as they are structured to run in perpetuity. Admittedly, I do not know how they account for donations from wills and trusts. But the principal "in hand" from the endowment campaign is probably much more than $20M.

They can also draw on the principal in times of crisis. Some money (my guess is less than 50%) is not tied to a specific use, so they could use that money immediately. They can also go back to donors and ask if money can be used in a different manner than its original purposes. So as a last resort, they do have endowment funds that they can draw on for the crisis.

As far as current campaign ending or being extended, I think there is a pretty simple solution. Declare victory on the Forever Valpo campaign and start a new one that focuses on necessary funds to sustain the university in the COVID-19 crisis. Heck, I am not even sure you need a new campaign...just start contacting current and potential donors and explain the situation.

[crusadermoe]

Fair points.  I meant that the cupboard after the campaign is not full of any non-endowment reserves. But that is a great point.     

The $200 million question for Valpo is what the market will do in this year or next.  At 5% that is $10 million in payout to the budget.  So far so good in the market and there should be some gain built in already from market growth. 

[78crusader]

There is probably a reason why the VU fundraising campaign page hasn't been updated since April.  But I can't think of a good one.

Paul

[vu72]

There is probably a reason why the VU fundraising campaign page hasn't been updated since April.  But I can't think of a good one.

Paul
[/quote

I spoke with Jake Sale the other day and asked him about that.  He said that the concern was that announcing a big success during difficult times, both financially and health wise, didn't seem right. So the decision was to delay an announcement.  It should be coming shortly.  Clearly they are still in the raise process.

[Valpo2010]

New total posted...$252,400,883...and continuing...

[loschwitz]

The recent press release regarding the newest endowed professorship reports that Forever Valpo has now topped $254 million.

[crusadermoe]

Congrats on that big gift!

Let's hope that the whole pandemic gets solved soon and that we can on track with solving that huge budget deficit.  This new gift will help to the tune of about $200,000 when they start spending that gift at a 5% annual rate.

[78crusader]

A bit over $255 million as of 10-09-20

Paul

[vu72]

A bit over $255 million as of 10-09-20

Paul

So the campaign was announced in September of 2016 with a committed total of $135 million.  Four years later in September of 2020 the total is at $255 million.  That is an average of $2.5 million raised per month over four years. They have now announced that the campaign will continue for another two years.  Could that mean an additional $60 million?  I doubt it as the "big hitters" are already being counted.  If we made it to $300 million it would be remarkable.  Of course a $30 million dollar commitment to athletics would certainly help!!!

[vu72]

New total:  $257,214,384.  That continues the pace of about 2-2.5 million committed per month since the launch.

[vu72]

New Total: $258,573,339. That's about another $1.4 million in 30 days.

[David81]

All in all, I think this has been a solid, successful fundraising campaign that can pull in a few more chunks of money before they close it out.

While we might look enviously at schools mentioned in the same breath as VU that can and have raised more $$$, a lot of comparable schools would not be able to pull this off. Many would consider a $250m goal to be extremely unrealistic.

So at least VU will welcome a new President with an enhanced alumni culture of giving.

[crusadermoe]

Indeed we are neither the best or the worst. There's no question that there have been some very impressive gift amounts!

In saying that an alumni culture of giving in general under Heckler, one should ask, "What was the alumni giving percentage in 2008 vs 2018?

Maybe someone has access to those stats.

[crusader05]

New gift announced with a statement at the bottom saying it's the campaign is now over 260 million

https://www.valpo.edu/forevervalpo/2016/09/23/valparaiso-university-receives-commitment-for-lcms-pastoral-ministry-and-chapel-programs/

[vu84v2]

New gift announced with a statement at the bottom saying it's the campaign is now over 260 million

https://www.valpo.edu/forevervalpo/2016/09/23/valparaiso-university-receives-commitment-for-lcms-pastoral-ministry-and-chapel-programs/

Great to gain a further donation, but this seems a bit at odds with the statement below regarding faith (as part of student life) at the university. LCMS is not independent. Would Valpo accept donations associated with other Lutheran groups?

Quote from Valpo website (regarding student life):
Your spiritual journey will be encouraged and strengthened no matter your path. As an independent Lutheran institution, faith is in our nature. Whatever your tradition, you will find a caring community that will support you in your spiritual life.