Forever Valpo Fundraising Campaign

[NotBryceDrew]

Wanted to give my view on Valpo22's post the other week.

Very few of us here besides 22 will be able to speak have things have been over the last few years during COVID, however, I will speak to this generally.

Yes, there have been cutes to humanities the school simply needs to put resources where the ROI is, this is not uncommon even up to the most elite schools who have also cut/ realigned programs and sports over the last number of years. 

I would be hesitant to equate turnover in CORE and the writing center's lack of focus or resources (although it very well could be) but my guess is none of those positions are long-term career goals for people and they move on to better opportunities when they arise.

The school does or at least has marketed the writing/communications focus and I think they are correct to do so.  Everything is relative.  Compared with many of the schools we are competing against we do have a much more robust and demanding writing/communications curriculum.  I have many friends who went to decent state schools and much of what they had to do was a joke barely above the community colleges courses I took one summer. 

As far as the unsatisfactory peer reviews go you probably are correct that society's focus has changed a bit and there is more emphasis on digital and video. I am going on a hunch here and guessing that you are at the very top of the class for reading, writing, etc so compared to you everyone may always seem not up to par.  I'm sure there are some very gifted engineering students at VU every year that look around and wonder why everyone else is struggling with certain classes when it is extremely easy for them.

My guess is there isn't that much of a difference then vs now in many of the issues you have brought up and if there is it would take an individual as astute and with a keen interest in this specific area of the university such as yourself to notice.  TBH most don't enjoy many of these classes (although valuable) and just see them as a hindrance to working within their major.  Hopefully, we will have a strong rebound in the next couple of years so that more resources can be allocated back to the humanities.

I know I do but I think humans, in general, tend to focus on what is not right and what we don't have, and although that's not necessarily a bad thing it stops us from noticing what we do have.  Valpo has a lot more than the vast majority of schools.

[VU2022]

Well hopefully the campaign is continuing to raise money, as the school is going to need to raise more money with the old Art and Psych building burning down this afternoon. (Tried making a separate thread about the building being on fire earlier, but my post appears to have not gone though). Also, glad there's another Vu22, class of 22 representing!

[vu72]

Well hopefully the campaign is continuing to raise money, as the school is going to need to raise more money with the old Art and Psych building burning down this afternoon. (Tried making a separate thread about the building being on fire earlier, but my post appears to have not gone though). Also, glad there's another Vu22, class of 22 representing!

Very sad, particularly for the art students whose final art projects were burned.  I would think this won't be rebuilt and the land will just become part of the redevelopment project for the surrounding dirt.

https://www.nwitimes.com/news/local/porter/valparaiso/watch-now-firefighters-battle-pretty-devastating-fire-on-valparaiso-university-campus/article_dbbead0b-f924-5de3-8414-0f5b5cba756a.html#tracking-source=home-top-story

[crusader05]

There is so much artwork in their from last students   I'm not sure what they will do. It's surrounded by a lot of other buildings so not sure the land would be very useful. It also was one of the buildings that engineering students built after WWII so there's some real history there that was lost. I'm sure insurance will help with either repair or relocation of the space.

[FWalum]

I would certainly hope that they were insured for replacement costs. The loss of the art is probably irreplaceable.

[valpotx]

Unfortunate to see.  As a Psychology major, I spent a lot of time in that building and the building next to it, Dickmeyer Hall. 

[vu72]

The total just passed $300 million, now at $300,957,575!  I was hoping the total would exceed $300 million as it is just a nice round number!  Must be a final push as the previous posted total was just north of $296 million.  The campaign ends June 30, then a three month rest and on to the ARC project! (unfortunately, just dreaming!) 

[crusadermoe]

Happy for the $300 million I guess.  That number includes the May 2011 gift to the chapel of $15 million.  You can google Helge chapel gift to verify.

So taking 11 years to raise $300 million is a bit less impressive. Harre raised $230 million over 5 years for the student union and other goals during 2005-2009. Just sayin'

[vu72]

Happy for the $300 million I guess.  That number includes the May 2011 gift to the chapel of $15 million. You can google Helge chapel gift to verify.

So taking 11 years to raise $300 million is a bit less impressive. Harre raised $230 million over 5 years for the student union and other goals during 2005-2009. Just sayin'

You might be right, but I don't think so.  This article says the Helge's gave $2 million as part of the Forever Valpo Campaign, which launched September, 2016 (concludes June, 2022 or just shy of 6 years total).

https://www.valpo.edu/forevervalpo/2018/04/24/alumni-generosity-is-catalyst-for-valpo-student-program/

The gift for the Chapel was made in 2014 with dedication at Homecoming, 2015--prior to the launch of the Forever Valpo Campaign.  So if I'm right (usually  ), The $300 million was raised in just over 6 years while Alan Harre's campaign raised $230 million in just over five years.  Remember, raising money for a specific project like the Union or Library is a lot easier than raising money for something more nebulous like endowment.

[David81]

VU72 is right: The Campaign wasn't launched until Fall 2016. And let's keep in mind that its final stretch was in the midst of the pandemic.

Both Harre and Heckler led fundraising efforts that cemented VU's ability to stage successful capital campaigns. The University's development capacities are waaaay ahead of what they were in my student days ('77-'81).

[usc4valpo]

So is Valpo still strapped for cash? The $300M just does not feel permanent and we need guaranteed cash. Of course, maybe I'm being naive. Committed cash is different than guaranteed cash, and with the economy and tax codes today those committed donations may not fall through.

[vu84v2]

So is Valpo still strapped for cash? The $300M just does not feel permanent and we need guaranteed cash. Of course, maybe I'm being naive. Committed cash is different than guaranteed cash, and with the economy and tax codes today those committed donations may not fall through.

I don't have any data on what percentage of donations committed to Valpo are eventually made, but my guess is that it is really high. These are people who have shown substantial commitment to the university over many years and their committed donation is not from a hasty decision. Furthermore, these people likely have fairly substantial wealth and estates – thus they are not likely to deplete their wealth during their lifetime.

As far as 'guarantees', my guess is that it is stronger than you may realize. If someone has a will or trust and they designate money to go to Valpo upon their death, I don't think Valpo counts it unless there is some verification. If someone donates money for an endowment or scholarship with multiple installments, there is a contract. Yes, these types of agreements can be easily changed - but, again, these are responsible people with long term commitments to the university.

The issue that is more challenging is the timeframe for getting money. Let's say a couple commits to donate $1M in their estate to Valpo - clearly a generous donation. Both members of the couple are in their early 60s. The money is not going to go to Valpo until both have passed away, which is likely 20 or more years...even though it counts today in the $300M.

[vu72]

So is Valpo still strapped for cash? The $300M just does not feel permanent and we need guaranteed cash. Of course, maybe I'm being naive. Committed cash is different than guaranteed cash, and with the economy and tax codes today those committed donations may not fall through.

I don't have any data on what percentage of donations committed to Valpo are eventually made, but my guess is that it is really high. These are people who have shown substantial commitment to the university over many years and their committed donation is not from a hasty decision. Furthermore, these people likely have fairly substantial wealth and estates – thus they are not likely to deplete their wealth during their lifetime.

As far as 'guarantees', my guess is that it is stronger than you may realize. If someone has a will or trust and they designate money to go to Valpo upon their death, I don't think Valpo counts it unless there is some verification. If someone donates money for an endowment or scholarship with multiple installments, there is a contract. Yes, these types of agreements can be easily changed - but, again, these are responsible people with long term commitments to the university.

The issue that is more challenging is the timeframe for getting money. Let's say a couple commits to donate $1M in their estate to Valpo - clearly a generous donation. Both members of the couple are in their early 60s. The money is not going to go to Valpo until both have passed away, which is likely 20 or more years...even though it counts today in the $300M.

I would add that some of the 300MM is already in the bank and spent, as in the $1MM gained via the recent Day of Giving.  There are a couple of these days each year which combined bring in about 1.25MM so as the campaign has gone on now for over five year, it is safe to presume that about 5MM or so is in and likely spent. There is also The Valpo Fund which provides the University with unrestricted funds to meet immediate needs. My guess is that of the $300MM, perhaps another $5MM went to this fund and in all likelihood has also been spent. The other thing to remember is that even if all 300MM were in the endowment, it would only generate 5% or so on an annual basis.  These funds will certainly help alleviate the need for student tuition payments but it will help, particularly in comparison to colleges competing with Valpo who must discount their tuition via scholarships/grants to match Valpo's net price, without the endowment income to support same.

[78crusader]

As important as this campaign was, the next campaign, which President Padilla has said will launch relatively soon, will be just as important and, probably, more challenging.

The primary focus of the soon-to-be concluded campaign is the endowment.  Planned future giving was certainly a major source of the $300M raised.

The next campaign will almost certainly focus on facilities. President Padilla has mentioned a new nursing building, a new business building, and long-awaited renovations to the ARC. All three of these projects are sorely needed, and soon. The problem is immediate cash donations are required to build out these projects - unless the university decides to take on more debt to partially finance these buildings. I seriously doubt that VU will add much, if anything, to its current debt load in order to bring these facilities online.

The other problem is that inflation is going to jack up the price tags big time. Perhaps a new nursing building would have cost $30M in 2020; now it will probably be $40M.

Paul

[usc4valpo]

I have a feeling Padilla will come through get through this challenge. However, People are strapped for cash more than ever in the current economic situation,

[crusadermoe]

Google "Helge chapel gift" and see the $15 million dated May 4, 2011.  You didn't do it.

Then ask an honest broker at VU to find out if that $15 million is rolled into the amount announced in 2016.

[vu84v2]

Google "Helge chapel gift" and see the $15 million dated May 4, 2011.  You didn't do it.

Then ask an honest broker at VU to find out if that $15 million is rolled into the amount announced in 2016.

I cannot speak to what has happened with this specific gift, but major fundraising campaigns at most universities have private and public stages. They'll internally set a goal and raise money without announcing the campaign, then announce it with something like 40% or 50% of the goal already met. I have never quite understood this, but my guess is that they want to prevent perceptions of unreachable goals or failure. Still, five years prior to announcement sounds like a really long period for the "quiet" period.

[crusader05]

I'm pretty sure that it was considered a part of it but it was announced right away. There are other capital campaigns that also went into the bottom line number for money raised for the campaign like the Hill top Gym.

The endowment focus is where a lot of the energy of cultivating new donors or pitches to current donors has gone but the base number of money raised is basically everything that has come in or been promised to the university since the campaign started (plus some of the silent period stuff to generate excitement).

[David81]

So is Valpo still strapped for cash? The $300M just does not feel permanent and we need guaranteed cash. Of course, maybe I'm being naive. Committed cash is different than guaranteed cash, and with the economy and tax codes today those committed donations may not fall through.

That $300m figure is no different than any other university capital campaign: Some of it was raised for the pre-launch, some of it came in during the Campaign's live phase, some of it will come in when estates vest. So while you're right in saying it's not necessarily guaranteed, the final figure itself is as solid as any other like effort.

VU is in better shape than some of its peers but shares financial vulnerabilities common to other high quality, regional private universities. The number of schools that can reasonably breathe at least a little easier these days is likely in the low dozens at very best.

[crusader05]

I think there's also a difference between like short term strapped for cash vs insolvent.

Right now, Valpo, like many other schools, base their budgets on tuition which requires a specific amount of enrollment/retention. If either of those falter their annual budges will be strapped, even if they have a strong endowment or lots of pledged spending.  Most universities do not like to pull money out of the endowment in large amounts because it's leveraging your future to maintain a current status quo that may or may not be sustainable.

It is painful in the moment to downsize but the university needs to operate based on the number of students it has now, not the ones it had years ago. My guess is a lot of schools will have to prune things due to smaller enrollments and I can't see Valpo being any different.

The Endowment is like your 401k and it's always recommended you restrict your current spending if possible before dipping into it and I don't think universities are any different.

[crusadermoe]

David81 gives a really nice summary of the counting puzzles and the mid-size school perils as well. Now, onward Beacons and charge the hill!

[tjn2004]

If Harre supposedly raised all this money for the Union and Library (timing wise the meteorology wing/KCH is that same era) why does the University supposedly have a pile of debt?


The library and KCH were donated by the Pampered Chef people, who seemingly disappeared as soon as the ink dried on their kids' degrees.  So basically Harre was left to raise money from a field of donors just for the Union?  So where did the debt come from?  I ask this as a student during the era where VU was a perpetual construction site and seemingly could pull buckets of cash out of thin air.

[vu72]

If Harre supposedly raised all this money for the Union and Library (timing wise the meteorology wing/KCH is that same era) why does the University supposedly have a pile of debt?


The library and KCH were donated by the Pampered Chef people, who seemingly disappeared as soon as the ink dried on their kids' degrees.  So basically Harre was left to raise money from a field of donors just for the Union?  So where did the debt come from? I ask this as a student during the era where VU was a perpetual construction site and seemingly could pull buckets of cash out of thin air.

Lots of alumni, for specific uses as in many sections or group of offices have a sign designating who funded it.  I believe the larger lead gift was from the Helges.

The campaign site is officially shut down.  The final final should be out shortly with a brief "victory lap" to follow--then followed by the next drive to include the Nursing and Business Schools and athletics.

[crusadermoe]

Harre never let the board borrow a dime in building the Library, Union, and KCH. Every dollar spent on construction was donor given.  Some alumni and donors disliked him for that.

Every debt taken out for building was begun by Heckler's board after Harre finished in 2008 with no capital debt. You can look at the audits.

[valpo95]

Every debt taken out for building was begun by Heckler's board after Harre finished in 2008 with no capital debt. You can look at the audits.

That is not entirely true. The Form 990 for 2007-08 (7/1/07 to 6/30/08) has tax-exempt bond liabilities of 53.2M at the end of the fiscal year. This increased from 25.1M at the beginning of the fiscal year. The big chunk of that ($29.5M) went to M A Mortenson, the contractor on the Harre Union building that would have opened in 2008.

Someone else (with more time than me) can pull all the figures by year, yet I thought this was instructive:

Year       Bond Liabilities   Interest Payments
2006-7   $25.1M              $1.1M
2011-12  $64.1M              $2.4M
2016-17   $98.8M               $3.7M
2020-21    $125M               $4.5M   (this was from the Audit results, not the form 990)