Economy worries UVa donors

By Aaron Lee

Published: October 3, 2008

The University of Virginia’s Board of Visitors heard Friday that the school’s mission to raise $3 billion by 2011 is still on course — despite the economic downturn.

However, Bob Sweeney, UVa’s senior vice president for development and public relations, told UVa’s main governing body that the university is hearing donor concerns about the economy.

He added that the greatest reservations about the current economy are coming from those who would donate in the $50,000 to $100,000 range.

Sweeney also said some of the university’s top officials — such as Leonard W. Sandridge, executive vice president and chief operating officer — are taking on more-significant roles in the campaign.

Sweeney regarded Sand-ridge as “a closer on some of the very large gifts that come to the university.”

Sweeney also said Dr. Tim Garson, executive vice president and provost, had become a “key solicitor.”

The university also is continuing to pursue donors, even if only to make contact with them now so they will be more open to giving when the economy recovers, Sweeney said.

The campaign to raise $3 billion hit the $1.77 billion mark as of August. But the places UVa’s endowment money is invested in have taken hits over the last several months.

UVa’s overall endowment pool lost $98 million in August and $93 million in July. Those losses constituted less than 2 percent each month.

UVa’s investments were not affected by this week’s news that a $9.3 billion investment fund that serves about 1,000 colleges and private schools was being terminated, said Carol Wood, assistant vice president for public affairs.

As of Thursday, colleges had been told by officials with a nonprofit known as Commonfund that, for the time being, they would only be able to withdraw up to 37 percent of their investment. And that the decision to limit withdrawals was made because the fund wasn’t liquid enough to pay out all at once, the nonprofit said.

According to news reports, UVa’s College at Wise is invested in the Commonfund, but the degree of their holdings was not clear at press time.

University officials point out that the $5 billion investment pool earned $278 million in the fiscal year that ended June 30.

Overall, UVa’s endowment has been a positive performer for the last two fiscal years, returning 25 percent in 2007 and 6 percent in 2008.

“We could actually defy the conventional wisdom that this is a bad time to be in the philanthropy business,” Sweeney said Friday.

He said that the university is currently having “substantive discussions” with six prospective donors who could make contributions to the endowment in the “eight- or nine-figure range.”

Five of those potential donors are individuals and one is a foundation, he said.

“I can’t guarantee that a single one will close,” he said. “But I would not be surprised if they all did.”

Chris Brightman, CEO of the University of Virginia Investment Management Co., is expected to address the Board of Visitors today.