Donors Step-Up During Economic Downturn

09/15/2009

CJ's Kids Steven Rowe

Families, businesses, nonprofit organizations, colleges and universities across the United States are feeling the economic strain. Northwest Florida State College is no exception. However, despite market losses donors have remained faithful to the NWFSC Foundation and its mission to help students and to enhance educational opportunities at the college. The total number of donors contributing to the Foundation is actually up slightly over approximately the same time last year and many donors have stepped up to the plate with additional gifts to help make up for market losses and ensure that scholarship awards can be made to deserving students.

Like foundations across the nation, market conditions have affected endowed funds at NWFSC from which the Foundation utilizes a set portion of the investment earnings to fund more than 300 scholarships annually. The Foundation spending policy allows use of up to four-percent of the last three years average endowment balance. The 2008 return on the Foundations conservatively invested portfolio was a negative 22 percent for the 12-month period ending December 31 - not uncommon among charitable foundations across the nation for 2008 who have reported investment losses from 20 to 30 percent according to the Chronicle of Philanthropy.

Thus, NWFSC Foundation Board members drafted a letter sent to nearly 100 donors and organizations who sponsor endowed scholarships, explaining that in light of last year's negative return on endowed funds, extra help was needed to fully award student scholarships for the fall 2009 term. The response to the request for extra gifts was truly gratifying according to Foundation acting director Donna Utley and associate director Carla Reinlie.

"Our goal was to bring in enough to at least renew scholarships for students who signed two-year contracts in 2008. Thanks to the generosity of our donors, we have awarded 294 scholarships to date - on track with what we were able to do last year. That is roughly $323,400 in scholarship support", said Reinlie. "When our endowment decreases, so does the amount we have to award for scholarships but contributions and pledges from donors have more than made up the anticipated shortfall in scholarship support."

Reinlie and Utley both praised the continued dedication of donors to the mission of the NWFSC Foundation. "Our donors are staying with us, even if they may have to give a little less than in prior years, because they recognize the value of their investment in the lives of students and that our students need scholarship support now more than ever," said Utley.

"As with everyone else, we have experienced ups and downs over the past year. However, the total number of people supporting the college Foundation is up 7 percent for the fiscal year which begins October 1st, compared to the same time period for last year," noted Utley. "Unfortunately, because of personal economic situations, gifts may not be as large as they have been in the past and the Foundation has seen a decrease in major gifts - the five and six-figure donations." On the other hand, Utley noted, is was gratifying that donors have remained constant and are doing what they can to support students. "We get to see first - hand how gifts affect the lives of those on the receiving end. In many cases, the extra help provides the difference between graduating or not."

NWFSC donors do make a positive impact by donating to the Foundation -because education changes lives and makes a difference not only for students, but also ultimately strengthens our community and economy for brighter days ahead.