University Finances: Larger fund unlikely to stop alumni donations

Despite the University's endowment hitting $6.6 billion, many alumni say that a wealthier Penn doesn't affect their overall inclination to donate to their alma mater.

Of the University's financial gifts, which include alumni donations, 50 percent is funneled in to the endowment and reinvested with certain spending limits to ensure that the principal amount is maintained.

Another 23 percent goes to construction and development of infrastructure, and the remaining amount is bestowed on specific programs.

And so impressive figures can be deceiving: Of all the money that the University spends on financial aid, only 14 percent comes from the endowment, for example.

Thus, Penn relies on alumni to give money to areas that the endowment - however large - does not cover completely.

In turn, many alumni feel compelled to help out.

"People might feel dissuaded at first" because Penn's endowment has increased so much, said 2007 College alumna and Penn Fund employee Dvorit Mausner.

"But if you look at our endowment per capita, it's below the top 50, so it's as important as ever to give," she said.

Boosting that region is not as easy as reshuffling the endowment's priorities, since most donations have very specific restrictions.

In the meantime, many alumni say they will still donate to Penn.

A larger endowment "doesn't change my attitude toward giving to Penn," 1995 College alumnus Dan Schorr said."I think it's important for us to target the programs that we care about and support."

Schorr is a regular donor to the Kelly Writers' House.

1967 Wharton almnus and Penn Alumni President Paul Williams, a donor himself, added that "many, if not most, of alumni feel a deep sense of gratitude and the desire to give back grows over time."

Giving back, though, need not involve exchanging sacks of money for an eponymous building - smaller gifts can go a long way, too.

Zeller said that last year, the University collected $125 million just in donations of less than $100,000. This amounted to 100,000 gifts, he said

Michael Litz, C'89, G'91, agreed that supporting Penn's academic programs is a great cause.

However, he said, other organizations in the world have greater need for money.

"It has to do with who has the resources to get resources," Litz said.

Williams pointed out that awareness of the University's financial needs has "markedly increased" in the past 10 to 15 years.

Many have realized that the tuition they paid was hardly enough to cover the University's expenses and find the act of giving back to be a "duty or obligation."

Asked whether Penn will ever have enough money, Williams chuckled, saying, "I doubt I would see that in my lifetime."

- Staff writer Paul Richards contributed reporting to this story.

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