Gifts To Local Colleges Trend Higher In ‘08

View chart on local college donations

Central Massachusetts colleges and universities like to talk about all they have in common with some of the top names in education.

Now, they have a new connection to big players like Harvard, Columbia and Yale.

While gifts to the majority of educational institutions in the country dropped in fiscal year 2008, donations to both the “top 20,” and to most local colleges, rose.

According to a new report by the Council for Aid to Education, giving to the top 20 institutions rose 11.5 percent in fiscal 2008, while gifts to others declined 4.2 percent. Since the big guys account for a disproportionate amount of cash, that still played out to a 6.2 percent increase in total contributions for the year.

Meanwhile, in Central Massachusetts, the College of the Holy Cross, Worcester Polytechnic Institute and others saw an increase in gifts.

Loyal Alums

As it has been for years, Holy Cross was the number one local gift recipient, bringing in $25.9 million. Michael C. Perry, vice president for development and alumni relations, said the college also maintained its history of having an extraordinarily high percentage of alumni giving: 55.5 percent in FY 2008.

“It speaks to that fierce, passionate loyalty that they have, and the desire to give back,” said Perry.

Fitchburg State College saw donations rise to nearly $2 million, 96 percent over its 2007 number.

“That’s the most we’ve ever raised in a single year, and we were thrilled to have gotten to that level,” said Michael Shanley, executive assistant to the president for external affairs.

Shanley said part of the steep increase was luck, with several large bequests coming in the same year. But he said the jump still represents an achievement for the college.

Similarly, Assumption College in Worcester saw its donations for the year shoot up 75 percent to $7.8 million, thanks to a huge $4.3 million donation from alumnus Donald D’Amour, chairman and CEO of Springfield-based Big Y Foods, and his wife Michelle.

Since colleges’ fiscal years generally end on June 30, the CAE numbers do not reflect the steep economic decline the country saw in the second half of last year. And colleges are likely to have more trouble in fiscal year 2009. CAE said trends in giving tend to follow the stock market, and the economy in general.

“This is a tough year,” Perry said. “We are down right now in total dollars and total gifts at this point.”

But, he added, giving tends to pick up in April, May and June.

Perry said it’s crucial for Holy Cross to keep talking to potential donors even when they may be going through rough times.

“Our hope is that Holy Cross is still high on their list of priorities and that they will understand the challenges that we are facing now,” he said. “If everybody can do what they can then we’re going to be in great shape.”

Michael Shanley said gifts to Fitchburg State are down so far this year too, with individuals, foundations and trusts all hit hard by declining investment values.

“Even our most generous donors who have, over the years, made significant gifts to us have obviously taken a hit,” he said.

Shanley said the college is working to expand its list of potential donors in the hope that quantity of donors will make up for the size of individual donations.

“We’re not hanging our heads and waiting this economic downturn out,” he said.