Heckler to Retire: New President Search

[crusadermoe]

That's kind of an odd move.  You're basically conceding that you can't attract a president right now and maybe that is just honesty.   

She sounds great and knows the realities of VU finance due to her board oversight role.   I agree that phasing out a Heckler role seems like a financial move. 

[David81]

That's kind of an odd move.  You're basically conceding that you can't attract a president right now and maybe that is just honesty.   

She sounds great and knows the realities of VU finance due to her board oversight role.   I agree that phasing out a Heckler role seems like a financial move. 

They were put into a bind when provost Biermann departed for the presidency at another college. As with so many other schools with searches pending, suspended, or regrouping, the provost is the obvious choice for interim/acting president. But when your #2 leaves, the bench quickly becomes razor thin.

Also, the pool of folks willing to relocate and jump into a new situation with this ongoing pandemic starts to shrink fast as well. Even the task of moving suddenly becomes even more herculean than a normal move.

[crusadermoe]

We keep talking on this thread about Heckler's achievements in endowment giving, largely through the glorious (10 years of counting) Forever Valpo campaign. 

Somewhere in the bowels of the NACUBO webiste there must be a way to compare the value of the July 2008 endowment value held when he started and the June 2020 endowment status. 

How much endowment in cash gifts was actually raised in cash gifts from donors?...rather than gained in market growth during a long steady 2010-2019 bull market?   

[vu72]

We keep talking on this thread about Heckler's achievements in endowment giving, largely through the glorious (10 years of counting) Forever Valpo campaign. 

Somewhere in the bowels of the NACUBO webiste there must be a way to compare the value of the July 2008 endowment value held when he started and the June 2020 endowment status. 

How much endowment in cash gifts was actually raised in cash gifts from donors?...rather than gained in market growth during a long steady 2010-2019 bull market?   

So I did a little digging.  I found an article in the Torch that said that the Endowment when Alan Harre left was "about $200,000,000".  So lets give Alan the rounding error and say it was 200M.  I also found a newspaper article which reported Indiana Universities endowments which was written in February of this year.  It said Valpo's Endowment was $259,000,000 which was up from 2017 when it was at $235Mil.

It is nearly impossible to judge Mark's overall record in that regard.  I believe he started The Valpo Day of Giving, which raises money for a variety of things, very little of which goes to increasing the endowment.  That day has been raising around $725,000 each year.  Add to that that the Endowment distributes money each year (call it 5%) so calculating his overall effectiveness is difficult to say the least.

[David81]

We keep talking on this thread about Heckler's achievements in endowment giving, largely through the glorious (10 years of counting) Forever Valpo campaign. 

Somewhere in the bowels of the NACUBO webiste there must be a way to compare the value of the July 2008 endowment value held when he started and the June 2020 endowment status. 

How much endowment in cash gifts was actually raised in cash gifts from donors?...rather than gained in market growth during a long steady 2010-2019 bull market?   

So I did a little digging.  I found an article in the Torch that said that the Endowment with Alan Harre left was "about $200,000,000".  So lets give Alan the rounding error and say it was 200M.  I aos found a newspaper article which reported Indiana Universities endowment which was written in February of this year.  It said Valpo's Endowment was $259,000,000 which was up from 2017 when it was at $235Mil.

It is nearly impossible to judge Mark's overall record in that regard.  I believe he started the Valpo Day of Giving, which raises money for a variety of things, none of which go to increasing the endowment.  That has been raising around $725,000 each year.  Add to that that the Endowment distributes money each year (call it 5%) so calculating his overall efectiveness is difficult to say the least.

There are private universities comparable to VU in enrollment and overall financial profile that would die to be able to do a $250m fundraising campaign over a 5-year public phase. In fact, I teach at one of them, a private, regional university with an endowment almost identical to VU's, with tens of thousands of alumni (including lots of successful law and b-school grads). When our centennial arrived back in 2006, the university announced a very modest $75m capital campaign. We couldn't even raise that amount of money; the whole thing simply sputtered after some early successes and we (faculty) never heard another word about it. It would be folly for us to even imagine a $250m campaign.

To be on the verge of wrapping up a successful fundraising campaign of this magnitude is quite an achievement, and Mark Heckler deserves a significant amount of credit for that. In addition to immediate gifts and forthcoming bequests, it helped to change the alumni culture of giving. (I speak as someone who made a campaign bequest and became a monthly donor -- much, much more than I'd ever done before.)

That said, the pandemic has exacerbated financial vulnerabilities at virtually every higher ed institution in the country. For the next few years at least, the main goal is going to be survival. It's going to be a rough ride, and some will be looking for scapegoats. The reality is that VU is in a better position to get through this than many comparable institutions.

[crusadermoe]

Heckler certainly is a good speaker and he proved his skills as an actor earlier in his career. 

But over the period of 1998-2008 Alan Harre led a campaign raising $121 million in five years and another raising $230 million in five. 

Then over the period of 2009-2020 Mark Heckler launched one campaign that has raised $250 million.   

I'll take the work horse over the show horse if I want to stack up some hay.   I've shared those stats earlier in the thread so I won't note them again.

[vu72]

Heckler certainly is a good speaker and he proved his skills as an actor earlier in his career. 

But over the period of 1998-2008 Alan Harre led a campaign raising $121 million in five years and another raising $230 million in five. 

Then over the period of 2009-2020 Mark Heckler launched one campaign that has raised $250 million.   

I'll take the work horse over the show horse if I want to stack up some hay.   I've shared those stats earlier in the thread so I won't note them again.

So Alan "raised" 351 million but left when the endowment was 200 million. Were all those pledges from people in their 20's?

[David81]

Heckler certainly is a good speaker and he proved his skills as an actor earlier in his career. 

But over the period of 1998-2008 Alan Harre led a campaign raising $121 million in five years and another raising $230 million in five. 

Then over the period of 2009-2020 Mark Heckler launched one campaign that has raised $250 million.   

I'll take the work horse over the show horse if I want to stack up some hay.   I've shared those stats earlier in the thread so I won't note them again.

Harre was VU's President for 20 years, while Heckler has served for a little over 10, so I think that should be considered if you're comparing fundraising amounts. That said, Harre brought VU into the modern era of university development work and deserves enormous credit for that. It should be pointed out, in any event, that Heckler arrived just as the full brunt of the Great Recession was impacting the economy and jobs. The decline in non-profit giving was especially notable among high-income philanthropic donors, the kinds of folks who give larger gifts. It would take a few years for charitable giving to recover, which happened to coincide with when VU publicly launched the Forever Valpo campaign in 2016.

The next VU President will have a similarly tough task when it comes to fundraising, perhaps even harder. A lot of older alums (early Gen X and beyond) have dug deep for the Forever Valpo campaign, and it won't be easy to go back to that group for larger gifts. Subsequent generations are simultaneously paying off significant student loan debt while getting their lives and careers off the ground, and they may be unable or hesitant to make a big gift. And, of course, this pandemic has everyone nervous about, well, everything.

[crusadermoe]

You raise some good points.  Thanks. 

Yes, the future looks concerning.   Especially if we put ourselves "on hold" indefinitely until we find a vaccine.

We have already swatted a COVID "fly" with a $2T sledgehammer by stopping everyone from working and now the cynical opportunistic Dems are seeking a $3T one.  The cost of our cure is getting MUCH more expensive than the disease. These money giveaways will create a perception that money is free and the votes of our most ignorant voters will have been purchased.  You can't put that perceived "free dollars to voters" genie back in the bottle.  But if i need to pay rent or food I get why.

At some point you have to pay those bond holders higher interest rates to get them to keep buying your debt.  So all these late Gen X alumni of VU and even young boomers will drown in taxes in the next 10-20 years because the rate on that huge U.S. debt will swamp the government budget and compete with S.S. funding to kill it  early. If the big debt unionized pensioner states of CA, NY, NJ and IL get a chance to bail themselves out with federal money everyone goes down with that ship even earlier.   Ok, breathe...

[David81]

You raise some good points.  Thanks. 

Yes, the future looks concerning.   Especially if we put ourselves "on hold" indefinitely until we find a vaccine.

We have already swatted a COVID "fly" with a $2T sledgehammer by stopping everyone from working and now the cynical opportunistic Dems are seeking a $3T one.  The cost of our cure is getting MUCH more expensive than the disease. These money giveaways will create a perception that money is free and the votes of our most ignorant voters will have been purchased.  You can't put that perceived "free dollars to voters" genie back in the bottle.  But if i need to pay rent or food I get why.

At some point you have to pay those bond holders higher interest rates to get them to keep buying your debt.  So all these late Gen X alumni of VU and even young boomers will drown in taxes in the next 10-20 years because the rate on that huge U.S. debt will swamp the government budget and compete with S.S. funding to kill it  early. If the big debt unionized pensioner states of CA, NY, NJ and IL get a chance to bail themselves out with federal money everyone goes down with that ship even earlier.   Ok, breathe...

I disagree that "ignorant voters" are being bought off with the enhanced unemployment payments. In a nation where a huge percentage of the population is living paycheck to paycheck -- which covers voters of all political persuasions -- sudden unemployment means not having money to cover basic living expenses. It's as simple as that. And most of these folks are ready to go back to work when it's safe to do so. Recent studies by the Fed (Chicago) and by Yale researchers have found that the enhanced payments have not led people to work less.

The pandemic is revving up economic conditions that were in play well before the coronavirus arrived. As you suggest, the disappearance of viable pension and retirement plans has tens of millions of people hurtling toward traditional retirement years without necessary funds. It hasn't helped that state governments who agreed to these public pension plans never invested sufficient money to fund them. We can easily save Social Security for the long haul if we raise the payroll tax income cap on those who can easily afford to pay a little extra, but the current political climate won't permit that.

As for COVID being a "fly," I respectfully disagree. I live in Massachusetts, and we've lost over 8,000 people to this disease, with a lot of other survivors of all ages left with chronic health impacts. Our shutdown has been painful but necessary, and is finally showing signs of success. I have friends in New York and Florida who can share stories about how terrible and frightening this has been as well. Good leadership could've nipped much of this thing in the bud (look at much of Europe and New Zealand, for example), but we didn't have that, especially when public health experts were already sounding the warning. And now it's clear that, on the whole, America lacks the self-discipline and intelligence to do what's necessary to wrestle this thing down more decisively. It's likely that we'll be dealing with both the health and financial repercussions for our lifetimes.

All of which means that U.S. higher ed will face pretty rough waters. Universities are among the most resilient institutions in the history of the Western world, so I'm assuming they'll manage to stay around as long as there's a demand for post-secondary learning. Valpo has a brand name both national (to a Lutheran constituency) and regional (as a strong academic institution in both liberal arts and professional training), so it has some advantages. But it will not be easy.

[crusadermoe]

Guess we both had a good rant.

The initial Relief bill was needed..We all had great fear of the unknown.  It feels like we are skewing against risk now.

But I wemt off topic too far.
I invite you to the Off Topic thread since i am in agreement with you on Social Security. I think paynents need both a high floor and low ceiling.  The Bowles Simpson comittee did a lot of the work already.

[bbtds]

The initial Relief bill was needed..We all had great fear of the unknown.  It feels like we are skewing against risk now.

I believe that the second wave of infection has put the country right back where it started with this virus and that the second stimulus is just as or more important than the first. New job losses are happening that people feel are permanent and the only real hope is that change can be had through an election. Unless, of course, we allow the election to be manipulated by a president reaching for a possible semi dictatorship status.

[vu72]

But if i need to pay rent or food I get why.

To those millions who have lost their jobs, it becomes more than rent and food.  The health system in the US is overwhelmingly tied to employment.  If you lose your job you lose your health insurance.  So now we have a young family with no income, say, two kids but one is diabetic and medicaid becomes the only option. As same states have chosen not to expand Medicaid coverage, you may still not be eligible. A real mess...

[78crusader]

There has been some discussion on this board re: Heckler v. Harre fundraising, endowment history, etc.

Published without comment - Here are the numbers and VU's endowment rank since 2002 out of approximately 700 colleges and universities:

2002 118mil; rank #266
2003 115mil; rank #268
2004 130mil; rank #274
2005 143mil; rank #272
2006 166mil; rank #265
2007 192mil; rank #263
2008 199mil; rank #253
2009 140mil; rank #284
2010 140mil; rank #305
2011 163mil; rank #309
2012 163mil; rank #302
2013 177mil; rank #301
2014 202mil; rank #302
2015 204mil; rank #302
2016 204mil; rank #295
2017 235mil; rank #283
2018 250mil; rank #284
2019 259mil; rank #278

Paul

[David81]

There has been some discussion on this board re: Heckler v. Harre fundraising, endowment history, etc.

Published without comment - Here are the numbers and VU's endowment rank since 2002 out of approximately 700 colleges and universities:

2002 118mil; rank #266
2003 115mil; rank #268
2004 130mil; rank #274
2005 143mil; rank #272
2006 166mil; rank #265
2007 192mil; rank #263
2008 199mil; rank #253
2009 140mil; rank #284
2010 140mil; rank #305
2011 163mil; rank #309
2012 163mil; rank #302
2013 177mil; rank #301
2014 202mil; rank #302
2015 204mil; rank #302
2016 204mil; rank #295
2017 235mil; rank #283
2018 250mil; rank #284
2019 259mil; rank #278

Paul

The biggest drop is 2008 to 2009 -- a loss of roughly 30 percent of its gross amount and 31 places on the endowment rankings -- the heart of the Great Recession. That's a brutal percentage drop. That we fell "only" 31 places shows has badly higher ed got smacked during that time. It was followed by another drop of 21 places even though the endowment remained the same. I'm wondering if VU pulled some of its principal out of the market in 2009-10, as it was starting to recover.

In any event, the Forever Valpo public phase years (2016-onward) show VU clawing its way back.

The pre-2002 years would be interesting to see, and I'm betting that's where Harre's successes are more evident. But Heckler arrived and departed during two of the worst times for the country and for higher ed.

[usc4valpo]

From 2000 to 2008 Valpo wasbetter in basketball and had higher national recogintion, and the ranking follows this. Could this be a coincidence where basketball success contributes, certainly not in a primary manner but with some contribution? At USC, academic standards rose while the football program improved and was nationally ranked. There is correlation in some cases where athletic success enables academic improvement.

[David81]

From 2000 to 2008 Valpo wasbetter in basketball and had higher national recogintion, and the ranking follows this. Could this be a coincidence where basketball success contributes, certainly not in a primary manner but with some contribution? At USC, academic standards rose while the football program improved and was nationally ranked. There is correlation in some cases where athletic success enables academic improvement.

I think it can make a difference when a powerhouse sports school with an alumni base of fans that follows their teams closely after graduation is playing for national championships and major Bowl appearances. And it can also make a difference if a Cinderella team like VU's '98 Sweet Sixteen run gets national attention.

But if we're talking about on-the-court success that is not exactly the stuff of national coverage -- a few one-and-done appearances in the NCAA and NIT during the span you mention -- I'd be surprised if that gives a big boost to fundraising. My sense is that for the men's basketball program to have an impact like that, it would have to be closer to a Gonzaga level of excellence.

[vu72]

I am certainly not knocking the ability of basketball success to draw attention to Valpo and then possibly add student interest and applications.  I do however wonder the correlation between the two, particularly for the high achieving student often coming to Valpo for academic reasons.  A Christ College student (I know there must be a few on this board) may not have much time to attend games particularly if they also are in the Chorale or orchestra or even a fraternity or sorority.

There needs to be attention and effort on all fronts.  Two very important events for prospective students were cancelled this year.  The first was the Lutheran Basketball Association of America tournament.  This draws Lutheran grade school students (and their coaches and parents) from all over the country and includes at least 500 kids, albeit grade school kids--but still gives them an on campus experience at Valpo--for future reference.  I think back to our NIT run and the game against Florida State, the night of the opening convocation for the tournament.  After the event, the packed Chapel was invited to go to the game.  Think there were some impressed kids?

The second cancellation was the Lutheran Music Program, hosted by Valpo every summer.  This brings about 100 high school kids to Valpo for a whole month!  These are incredible musicians and undoubtedly very good students.  Many of these do chose Valpo.  The loss of exposure this summer, no doubt has hurt.

Its a multifaceted approach to recruiting.  All hands on deck!

[JD24]

From 2000 to 2008 Valpo wasbetter in basketball and had higher national recogintion, and the ranking follows this. Could this be a coincidence where basketball success contributes, certainly not in a primary manner but with some contribution? At USC, academic standards rose while the football program improved and was nationally ranked. There is correlation in some cases where athletic success enables academic improvement.

I think it can make a difference when a powerhouse sports school with an alumni base of fans that follows their teams closely after graduation is playing for national championships and major Bowl appearances. And it can also make a difference if a Cinderella team like VU's '98 Sweet Sixteen run gets national attention. But if we're talking about on-the-court success that is not exactly the stuff of national coverage -- a few one-and-done appearances in the NCAA and NIT during the span you mention -- I'd be surprised if that gives a big boost to fundraising. My sense is that for the men's basketball program to have an impact like that, it would have to be closer to a Gonzaga level of excellence.

I have to disagree here. Appearing in the tournament on a somewhat consistent basis, not necessarily every year, brings exposure to the school which I would think would enhance fundraising. Gonzaga is unique in what they have done with a school and program which 20 years ago was around the equal of Valpo and I don't think that situation exists with any other school/program.

[crusadermoe]

My guess is that endowment levels and athletics don't correlate much.  Other than Mr. Schrage's permanent gift it seems like the big endowment and estate money flows to scholarships arts, and core academics, which makes sense.  I always figured athletics was a bigger factor in attracting kids than getting big gifts. 

Unfortunately, COVID (or the over reaction to it) has rocked the viability of college sports to its core.  Planning on basketball or athletics as a core publicity, admissions, and revenue strategy has been shaken and that saddens me.  It knocks out a positive Valpo factor right after we joined the MVC. 

The Power 5 and perhaps the Big East can feel solid financially as soon as a vaccine comes out because their athletics self support.  That's a hedge in their risk.  All others don't have a cushion to take that risk now because their main operations budget subsidizes sports costs.

[David81]

Well, VU has entered a transitional phase in its history with Interim President Colette Irwin-Knott now sending out greetings to the incoming class. I wish her well, and I hope this year is as uneventful as a year with a pandemic can be.

I've been thinking about comments here about what kind of new president VU needs, his/her support of sports, fundraising, and whatnot. The more I think about it, the more I believe it's not about finding a "business president" or an "academic president" or any other label. It's about finding the person who is the right fit for the moment, and it's not necessarily someone who comes from a predictable place.

After I graduated from VU, I headed off to NYC for law school at NYU. Guess who was the president there? None other than John Brademas, the long-time Indiana Congressman and House Leader (and former Rhodes Scholar) who had been ousted from his South Bend district seat during the 1980 Reagan election. He was a remarkably successful president, raising gobs of money and bringing all sorts of national and global luminaries to campus. Two presidential appointments later came John Sexton, who had been the dean of the law school. He raised even more gobs of money and made NYU a top ticket destination for college-bound high school seniors. Neither had a big-name sports program to offer visibility, as NYU had phased out of D1 sports decades earlier in favor of a modest D3 program (and no football).

Which is to say...you find the right person where you find them...instead of pigeonholing a category and limiting yourself. VU has a unique challenge: It's too big to be a "church college," and with all of the successful professional programs it wouldn't fit into that niche anyway. But it cannot give up its Lutheran connection either, as that is one of its distinctive characteristics. And while the liberal arts may not be favored in today's return-on-investment climate, VU's strong liberal arts foundation, plus the unique draw of Christ College, means that you don't abandon those pieces either.

The sports thing is hard to gauge. The men's basketball program has had enough success to offer a taste of what it's like to be in that national lane. But college sports are destined to be under increasingly scrutiny due to expenses, and the mid-major programs will face challenges.

So, it's a bit of juggling act. Many things to many people, leaning conservative but welcoming of all, with a core of faith and a blend of liberal arts and vocation. I think it takes a unique leader to understand that mix and to be effective advocating for it.

Anyway, just sharing some thoughts.

[vu72]

Well, VU has entered a transitional phase in its history with Interim President Colette Irwin-Knott now sending out greetings to the incoming class. I wish her well, and I hope this year is as uneventful as a year with a pandemic can be.

I've been thinking about comments here about what kind of new president VU needs, his/her support of sports, fundraising, and whatnot. The more I think about it, the more I believe it's not about finding a "business president" or an "academic president" or any other label. It's about finding the person who is the right fit for the moment, and it's not necessarily someone who comes from a predictable place.

After I graduated from VU, I headed off to NYC for law school at NYU. Guess who was the president there? None other than John Brademas, the long-time Indiana Congressman and House Leader (and former Rhodes Scholar) who had been ousted from his South Bend district seat during the 1980 Reagan election. He was a remarkably successful president, raising gobs of money and bringing all sorts of national and global luminaries to campus. Two presidential appointments later came John Sexton, who had been the dean of the law school. He raised even more gobs of money and made NYU a top ticket destination for college-bound high school seniors. Neither had a big-name sports program to offer visibility, as NYU had phased out of D1 sports decades earlier in favor of a modest D3 program (and no football).

Which is to say...you find the right person where you find them...instead of pigeonholing a category and limiting yourself. VU has a unique challenge: It's too big to be a "church college," and with all of the successful professional programs it wouldn't fit into that niche anyway. But it cannot give up its Lutheran connection either, as that is one of its distinctive characteristics. And while the liberal arts may not be favored in today's return-on-investment climate, VU's strong liberal arts foundation, plus the unique draw of Christ College, means that you don't abandon those pieces either.

The sports thing is hard to gauge. The men's basketball program has had enough success to offer a taste of what it's like to be in that national lane. But college sports are destined to be under increasingly scrutiny due to expenses, and the mid-major programs will face challenges.

So, it's a bit of juggling act. Many things to many people, leaning conservative but welcoming of all, with a core of faith and a blend of liberal arts and vocation. I think it takes a unique leader to understand that mix and to be effective advocating for it.

Anyway, just sharing some thoughts.

I would add, brilliantly written.  A thoughtful post opening the crust of all things Valpo.  I think a lawyer from Boston may just be the right person for the job!   

[vu84v2]

With one exception, I also thought this was beautifully written and hit on many very important points. However, I do not understand why leaning conservative (or any political direction) would have any part in who would make a good leader. But welcoming to all is vital.

[David81]

With one exception, I also thought this was beautifully written and hit on many very important points. However, I do not understand why leaning conservative (or any political direction) would have any part in who would make a good leader. But welcoming to all is vital.

Thank you for the good words.

Just to clarify, I don't think the next president (or any VU leader) has to lean conservative. But the institution definitely leans that way, including its alumni base. I used to have more issues with that, but so long as the school has room for different points of view, I'm okay with it. Despite my own liberal politics, I've seen what can happen at higher ed institutions that lean far to the left. I prefer a balance with room for all, because it helps us grow and gain understanding.

I happen to be Mark Heckler fan. Getting to know him a bit helped to bring me back into the fold as a contributing (uh, as in $) alum, among other things. I can tell that his more liberal leanings have rankled some folks here, but those values come from his faith, not simple political posturing. I think he has taken some courageous stands on diversity and inclusion in ways that were not part of my experience of VU in the late 70s and early 80s. (I happened to be one of small handful of minority students at VU -- in my case Asian American -- and the lack of diversity left its mark on me.)

So, I just hope VU can weather this immediate situation, shore up its finances in a post-pandemic academic climate, and sustain in a good way. Selecting the right leader for next decade or so will make a big difference.

[David81]

I would add, brilliantly written.  A thoughtful post opening the crust of all things Valpo.  I think a lawyer from Boston may just be the right person for the job!   

[/quote]

That's very kind of you to say that! Believe me, academic administration would not be my cuppa tea. I'm also a firm believer in the Peter Principle, having seen it validated in academe time and again. I enjoy being a professor, and it's what I do best.

But I do hope the right person is out there for VU. Challenges notwithstanding, I think it presents an opportunity to be part of a unique and important university.