Feature Story: The Campaign For MSU--How Does A Billion Dollars Sound?

            Confidence in MSU remains strong, as measured by the Campaign For MSU surpassing the billion-dollar mark.  But much work remains.

            To many casual observers, The Campaign for MSU may seem little more than a focus on high profile, landscape-changing gifts like new buildings and such. To be sure, the construction of the new, state-of-the-art Biomedical and Physical Sciences Building that looms large on campus is a shining example of the kinds of tremendous projects that enhance Michigan State University in part as a result of private fundraising.

            But fundraising means so much more to so many people. It may sound a tad cliché, but giving a gift to MSU is all about the people who are positively affected by the generosity of strangers.

            Michigan State University recently announced that The Campaign for MSU (see cover story, Fall 2002), an ambitious fundraising project that was publicly announced three years ago, has surpassed the $1 billion mark. The ultimate goal is to reach $1.2 billion by June 30, 2007, including substantial increases in MSU’s endowment assets.

            “Passing this important milestone is a true testament to the belief that our alumni, friends, corporations, foundations and our own faculty, staff and retirees have in the future of Michigan State University,” said MSU President Lou Anna K. Simon at an event to announce the highlight.

            “MSU is now among an elite group of universities which have reached the milestone of raising $1 billion from private sources,” added MSU Vice President for University Development Chuck Webb. “And among those universities, we are only the third public university, along with Berkeley and Purdue, to reach that amount without the added fundraising benefit of a major on-campus medical/research center. This is an accomplishment of which we all can be very proud.”

            To be sure, but part of what makes the billion mark an astonishing accomplishment for MSU is where much of the giving has come from, and perhaps more importantly, the people who benefit on campus and in what ways. Take for example the Kennedys of East Lansing.

            MSU Professor Emeritus of American Thought and Language Theodore R. Kennedy and his wife, Mrs. Jean G. Kennedy, ‘45 (Comm. Arts), a former academic advisor at MSU, wanted to find a way to memorialize their beloved daughter, Kathleen. They did so by creating an endowed fund in her honor that will allow the MSU Libraries to purchase books and other materials relating to British or American history or literature, which was their daughter’s passion.

            “The Library will always need resources,” Dr. Kennedy said, “and this endowment is an effort to provide financial assistance, because the Library is a permanent asset to all students that come to MSU.”  They will fund the endowment through a future gift planned from their estate, the assets for which will come from a retirement IRA.

            The Kennedy’s gift points to several facts about The Campaign for MSU that may not be readily understood when one reads a headline that says the university just raised one billion dollars from private sources.

1. First, it is important to understand that gifts are given to the university in a variety of ways. Donors make gifts of cash, stocks and property, for example, but they also give, as in the case of the Kennedys, planned gifts. Planned gifts—though no less generous or helpful in the long run—come from estate plans, meaning that MSU will not have access to the funds until the passing of the donors. All gifts count toward the billion plus total, but some are received now while others are received later.
2. Second, the Kennedy gift will be placed in an endowed fund. In endowed funds, the total amount of a gift is invested. Each year, only a portion of the invested income earned is spent while the remainder adds to principal growth. In this respect, an endowment is a perpetual gift. The stability provided by a named endowment, which can be started with as little as $30,000, explains why university administrators are stressing the need to continually increase funds designated as endowment and have created a sub-goal of The Campaign for MSU to add $450 million to MSU's endowment. So far, $277.8 million has been raised for endowment as of September 1, 2005.
3. Third, students and faculty alike benefit from creative gift-giving by MSU donors. In this case, there will come a day when a new collection of materials will be made available in the MSU Libraries for use by students, researchers and the public.
4. Fourth, it is common knowledge that when the university overall is enhanced, so are the degrees and reputation of everyone – alumni and friends alike – associated with MSU. When the MSU Libraries (or any of the colleges and programs on campus) grow in stature and reputation, the entire university community stands to benefit. Because of the Kennedys, in this one way the MSU Libraries will improve in an area they would not have been able to on their own.
5. Fifth, as former faculty and staff members, respectively, Dr. and Mrs. Kennedy represent one of the single most generous categories of donors during the campaign:  MSU faculty, staff and retirees. Their collective generosity—supplying more than 5% of the total pledged and contributed to date—speaks volumes as to the faith that those closest to the university have in its future.

            But the Kennedys are only one example. There have been thousands of people and organizations over the past few years that have heard the call and answered with extremely generous gifts. All categories of fundraising at the university—from corporate and foundation gifts, individual major gifts, planned gifts and yes, telemarketing—have increased significantly.

            “So much has been accomplished since the start of the campaign,” said MSU’s Associate Vice President and Director of University Development Marti Heil. “We have had new buildings constructed, old buildings renovated, numerous new scholarships created, key faculty additions, improvements in laboratories and other spaces for students. It is truly incredible the amount of enthusiasm we have seen and the level of generosity among our alumni, friends and individuals, as well as corporations and foundations. Now, we need to keep moving forward to reach and exceed the $1.2 billion goal, and to meet our endowment and planned giving goals.”

            Admittedly, a fundraising campaign of this magnitude could not succeed without many donors with the capability of making massive gifts coming forward to lead the way. Although MSU was among the last in the Big Ten to begin organizing its fundraising efforts, a sign of the progress made over the past several years has been the increasing number of gifts of $1 million or more given to the university each year. Since July 1999 when the campaign's silent phase began, the university has received 27 gifts in excess of $5 million, and another 120 gifts in excess of $1 million. These donors alone have given more than $650 million to Michigan State University.

            The future of fundraising at MSU, however, relies in part on the strength of the donor base. Gifts from donors of $1 million or more, as generous as they are, wouldn’t by themselves reach the lofty goals MSU has set. It’s good news, then, that the annual appeals the university makes through mail and telemarketing to MSU alumni have been met with increasing enthusiasm. Since 2001, the university has seen increases of more than 30 percent in the number of alumni who are making gifts every year—gifts ranging from a few dollars to a few thousand. The pipeline is strong, as they say.

            “These results would not have been possible without the continued hard work and support of the academic leadership and staff of each of the university's colleges and programs,” President Simon said. “It's a team effort, and I thank deans, directors, faculty and staff for all of their hard work.”

            Not too faint in the distance, just slightly behind the celebratory tone in announcing the billion dollar milestone, was the drumbeat signaling more work to be done. The generosity of the entire MSU family has certainly placed the university in lofty company, but like all great Spartan initiatives, there is no satisfaction in getting part way there.

            The more people give what they can, the more scholarships can be created to help students in need. The more needs are met with enthusiastic and generous support, the more MSU faculty can conduct cutting-edge research and the more MSU can reach out to help communities around the country and across the globe as it has done throughout its history.

            While some may interpret giving personal assets to the university as a sacrifice, Dr. Kennedy sees it another way. “We reap the rewards,” he said, “knowing that this fund is something our daughter Kathleen would have wholeheartedly approved.”

            For information on the Campaign for MSU, visit  givingto.msu.edu.  For information on MSU’s billion dollar milestone, visit special.newsroom.msu.edu/billionmark. 

Rick Seguin, ’90, M.A. ’99, is assistant director of marketing programs with University Development and sings professionally with a Lansing-based group called Any World.

YOUR GIFT IS IN GOOD HANDS

            When making a gift to Michigan State University earmarked for an endowed fund, MSU alumni and friends can have confidence that their donations are being stewarded well.  MSU’s investment performance continues to be superior over the past decade. The National Association of College and University Business Officers (NACUBO) annually surveys its member institutions on investment pool returns. In the NACUBO Endowment Study for the five years ending June 30, 2004, MSU’s average annual return of 8.5 percent placed it 26^th of 531 reporting institutions; and for the 10 years ending June 30, 2004, MSU’s average annual return of 13.2 percent placed it 23^rd of 443 institutions.

ENDOWMENT BRINGS A SPARTAN HOME

            Dr. Andrea Amalfitano, ’84, Ph.D. ’89, DO ’90, has had extensive experience and training at the Mayo Clinic, the University of Michigan and at Duke for the last nine years.  Thanks to a private gift from the Osteopathic Heritage Foundation, which funded an endowment for the chair he now holds, he has returned to his alma mater—bringing with him research on the cutting-edge of molecular medicine and the application of the newest technologies to treat patients with debilitating genetic disorders.

            “It’s most likely as a direct result of my training at Michigan State that I’ve been successful,” he said at a press conference in August on MSU’s campus to announce the billion-dollar milestone reached in The Campaign for MSU.  “As a result of my training here, I have a truly holistic approach to dealing with these trying situations, and I’ve always wanted to come back to Michigan State to give back what it gave me.  This endowment is allowing me to do that.”