Despite recession, donations continue to grow at University

Even in the face of an economic recession, IU is receiving more donations than ever but relying on fewer donors.

Given the economic situation, some have questioned how college students in need of financial assistance will be affected. There is fear that the amount of scholarships will decrease because people can’t afford to donate.

But the amount of donation dollars has actually increased since last year, though the number of donors decreased. Between July 1 and Dec. 5, 50,252 people donated $42.5 million to IU. During the same time period in 2007, 61,465 people donated $41.1 million.

Barbara Coffman, communications director for the IU Foundation, said she believes the long-term future for scholarships looks bright.

“People are conscious for the need of scholarship assistance,” she said. “We have had people be especially generous.”

Just last week, the IU School of Law announced a $35 million donation for scholarships from alumnus Mickey Maurer and his wife, Janie.

With donations like the Maurers’, and Kelley School of Business alumnus William Fry’s gift of $15 million for minority scholarships last month, IU students haven’t been overlooked in the season of giving.

Once a donation is announced, IU invests the gift, with a portion given out each year, Coffman said. The scholarship money comes from a percentage of the interest earned on the initial endowment. This way, the donation lasts indefinitely.

The amount of money awarded for a particular scholarship in any given year isn’t sharply affected by the current market condition. This is because IU uses a 12-quarter rolling average when calculating the interest.

The amount distributed annually is taken from the average over the past three years, in a procedure Coffman calls “smoothing of fluctuation.”

Many college students rely not only on donations from the private sector but federal grants to help ease their college debt.

With the government pouring billions of dollars into bailing out Wall Street, there is concern there could be cuts in money to aid college students. But students don’t need to worry about this, said Roy Durnal, senior associate director of the Office of Financial Assistance.

Congress recently increased the amount the federal government gives in Pell Grants, Durnal said.