Report ranks Penn 4th in fundraising

Penn's fundraising efforts last year were the fourth most successful in the nation, according to a recent survey by the Council for Aid to Education.

Having raised $332.8 million in 2004, the University ranked behind Harvard -- which took first place for the second consecutive year -- Stanford and Cornell universities.

In addition to ranking the fundraising performance of U.S. colleges and universities, the survey -- conducted by the New York-based non-profit organization, formed to "advance corporate support of education" -- also noted a general 3.4 percent increase in contributions from last year, primarily due to a surge in gifts made by individuals.

According to Executive Vice President Craig Carnaroli, such contributions are vital to development.

"To run the University effectively, we very much rely on the generosity and support of our donors," Carnaroli said.

Fundraising is especially critical, Vice President for Development and Alumni Relations John Zeller said, because of its potential influence on the University endowment.

"It makes an incredible impact on endowment progress, design of new initiatives. ... It is a critical revenue stream for higher education," said Zeller, who came to Penn from Johns Hopkins in January. He added that impressive fundraising can also improve scholarships and the recruitment and retention of faculty.

Currently, the University's $4 billion endowment is small compared to those of peers like Harvard and Princeton.

In an effort to augment its fundraising even further into the long term, the University will enter the quiet phase of a new campaign this summer. A quiet phase is non-public preparation for a fundraising campaign.

According to Penn President Amy Gutmann, the campaign will not officially be announced for a few years, but this summer, officials will begin building contributions for the campaign goal.

Gutmann is encouraged by the fundraising progress the University has made so far.

"One of the reasons I'm so optimistic about our campaign planning is, as of the end of December, we were 56 percent above where we were last year in fundraising, and January and February have been terrific months as well," Gutmann said.

"So my work has been increasing the momentum of our fundraising efforts," she added.

While the overall increase in donations to higher education is marked, Carnaroli cautions that one must take it into account that many donations are targeted for specific uses, such as building renovations or scholarships.

Zeller also notes that large gifts, such as the recent $10 million anonymous donation for recruiting interdisciplinary faculty, can drastically alter a University's ranking in the annual CAE survey.

Yet Zeller is still impressed by Penn's fourth-place finish.

"If you make the top 10 of that ranking, clearly it's rarified air, and clearly the top five is superb," he said.

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