SOU Foundation endowment fund droops along with the economy

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Recent economic turmoil has pummeled college endowments nationwide, and the Southern Oregon University Foundation is no exception.

The foundation posted $2 million less in long-term investments at the end of its fiscal year in June 2008. Investments have continued to decline since then, and an extended downturn could reverse some of the enrollment gains SOU reported earlier this fall, said Sylvia Kelley, vice president for development.

Investment returns provide money for scholarships, and "how much we have available in scholarships absolutely affects being able to recruit and retain students," Kelley said. "Parents are worried about how to pay for their children's education."

University endowments across the country dropped an estimated 25 percent in the first quarter of this fiscal year, according to the National Association of College and University Business Officers. The University of Oregon, with an endowment many times the size of SOU's, reported a 16 percent drop, from $438 million to $367 million.

The SOU Foundation, formed in 1959, is a much younger and smaller organization than many college endowments, which makes it more vulnerable to fluctuations in the economy, Kelley said. At the end of the 2007 fiscal year, the SOU Foundation had $19.4 million in long-term investments, which declined to $17.4 million at the end of the 2008 fiscal year, for a loss of 10.3 percent.

Both the university and the foundation award student scholarships, and those awarded by the foundation actually increased from $730,000 in the 2006-07 school year to $855,000 in 2007-08, according to Ron Theberge, director of finance and administration for the foundation. He estimated that scholarships awarded this year were again in the $800,000 range, because the amount given is based on a 12-quarter moving average of available funds. About 400 students receive scholarship money from the foundation each year, he said.

In tough economic times, the need to raise money increases, and Kelley is developing a comprehensive five-year fundraising plan with a large focus on scholarship money for students.

The university already has received several large gifts this year, and Kelley sees a large untapped market both in and outside the Rogue Valley, she said. She plans to fill empty board positions with members who can forge new business connections and begin more consistent, targeted outreach to alumni, who make up about 25 percent of donors.

Kelley also would like to improve procurement of online and small, regular donations, because donors who give small gifts steadily over time are the most likely to make major contributions later on, she said. Major gifts of $25,000 or more make up 80 to 90 percent of the foundation's funds, according to Theberge.

No matter what happens with the economy, the university must think long-term and continue raising private money to serve students, Kelley said.

"Attitude is everything, and I think our board and alumni have taken a positive stance," she said. "We know the economy is going to change and it doesn't do us any good to moan and groan."

Julie French is a reporter for the Ashland Daily Tidings. Reach her at 482-3456 ext. 227 or jfrench@dailytidings.com.

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