Higher Ed Giving Drops For First Time In 15 Years

Giving to higher education declined for the first time since 1988, according to the latest Council for Aid to Education annual giving study. Private gifts to higher education declined 1.2 percent to $23.9 billion for the fiscal year that ended June 30, 2002. The drop was fueled primarily by a sharp decline in gifts from alumni, according to the annual Voluntary Support of Education survey. Alumni giving dropped by 13.6 percent -- about $1 billion -- during the period, even while contributions from sources such as corporations and foundations remained stable. Researchers say the data showed a decline in giving for capital projects such as new buildings and endowments, and an increase in giving for current operations.

"The declining stock market and weak economy are the two primary factors that contributed to the decline in contributions," said researcher Ann E. Kaplan. "Unfortunately, this decline in giving comes at a time when higher education institutions are seeing an overall retrenchment from other income sources as well."

Contributions from alumni and foundations are the two biggest sources of gifts to higher education. For the first time in more than 25 years, foundation support (26.4 percent and $6.3 billion) in the 2002 fiscal year surpassed alumni support (24.7 percent and $5.9 billion), according to the survey. To read more, go to: http://www.cae.org/content/pro_data_trends.htm