2004 Voluntary Support of Education
Additional Survey Sponsor
215 Lexington Avenue, 21st Floor
New York, NY 10016
Phone (212) 661-5800 Fax (212) 661-9766
www.cae.org
Council for Advancement and Support of Education
www.case.org
2004
National
Estimates
and Trends
for Higher
Education
General Findings
Figure 1
Contributions to colleges and universities
Voluntary Support of Higher Education by Source, 2004
in the United States increased 3.4
$24.4 Billion
percent in 2004, buoyed by a spike in
Other
Organizations
$1.55 (6%)
gifts made by individuals, according
to the 2004 Voluntary Support of
Religious
Organizations
$0.35 (1%)
Education (VSE) survey. Nearly half of
the $24.4 billion raised in 2004 came
Alumni
$6.70 (28%)
Corporations
$4.40 (18%)
directly from individuals, a 9.7 percent
increase over the year before. Though
alumni giving is the traditional base of
higher education giving, representing
between a quarter to almost a third of
all voluntary support, alumni giving only
Foundations
$6.20 (25%)
grew 2.0 percent in 2004. Individuals
Nonalumni
Individuals
$5.20 (21%)
other than alumni drove personal giving
(Figures in parentheses are percentages of total and may not add to 100% due to rounding.)
Table 1
Estimated Voluntary Support of Higher Education by Source and Purpose, 2004
(Dollars in Millions)
Total Voluntary Support
Sources
Alumni
Nonalumni Individuals
Corporations
Foundations
Religious Organizations
Other Organizations
Purposes
Current Operations
Capital Purposes
Price Indices
Consumer (CPI)
Higher Education (HEPI)
2003
$23,600
(100%)
2004
$24,400
(100%)
Percentage Change
2003 to 2004
Adj.
Current $ for CPI
3.4
0.7
$6,570
4,280
4,250
6,600
360
1,540
(27.8%)
(18.1)
(18.0)
(28.0)
(1.5)
(6.5)
$6,700
5,200
4,400
6,200
350
1,550
(27.5%)
(21.3)
(18.0)
(25.4)
(1.4)
(6.4)
2.0
21.5
3.5
-6.1
-2.8
0.6
-0.7
18.3
0.8
-8.5
-5.3
-2.0
$12,900
10,700
(54.0%)
(46.0)
$13,600
10,800
(55.7%)
(44.3)
5.4
0.9
2.7
-1.7
97.4
95.6
100.0
100.0
2.7
4.7
(Figures in parentheses are percentages of total and may not add to 100% due to rounding.)
Alumni, Nonalumni, and Capital Purpose estimates were revised from 2003 to account for the present value of
deferred gifts and permit a valid year-to-year comparison.
VSE-04/2
up. Gifts from nonalumni individuals
performance of the stock market in
education support. Alumni gave $6.7
increased 21.5 percent. Gifts for capital
the late 1990s, the rate of growth of
billion, or 27.5 percent, of total voluntary
purposes such as endowments, buildings,
voluntary support of higher education
support of higher education. At $6.2
and equipment declined in 2002 and
institutions has been faster than the
billion, foundation support represented
2003 but increased almost 1 percent
New York Stock Exchange (NYSE)
25.4 percent of the total. (See Table 1
in 2004. Giving for current operations
composite index. However, voluntary
and Figures 9 and 10.)
fared much better. Such contributions,
support is vulnerable to downturns in
which have increased every year over
the stock market and the economy in
the past three decades, increased 5.4
general. (See Figure 3.)
Voluntary Support
and Expenditures
Voluntary support is an important
component of higher education
funding, but it accounts for a small
percentage of total institutional
Corporate support of higher education
expenditures. Voluntary support as a
increased 3.5 percent in 2004, to $4.4
percentage of expenditures began to
billion. Over the past three years,
rise above 6 percent in 1996 and
Historically, alumni and foundations are
corporate pretax income has been
increased to its high point of 8.2
the biggest sources of voluntary support
increasing. In addition, a large part of
percent in 2001. In both 2003 and
of higher education. In 2002, foundation
corporate support of higher education
2004, giving brought in 7.1 percent
Despite occasional setbacks, voluntary
giving surpassed alumni giving for the
is not “charitable” in nature and is not
of institutional expenditures. However,
support of education has grown
first time in 25 years, but last year both
reported on the VSE survey. Examples of
among some types of institutions,
substantially over the past three
sources were on an equal footing. In
such support are clinical trials, contracted
voluntary support plays a bigger role.
decades. Even accounting for inflation,
2004, foundation giving dropped 6.1
sponsored research, and certain partner-
As an example, private liberal arts
over the past 30 years such support has
percent, and alumni giving increased
ship programs in which corporations
institutions that responded to the
grown more than Gross Domestic
2.0 percent. So, alumni giving again
and institutions work together without
2004 survey raised 21.5 percent of
Product (GDP). Except during the peak
represents the largest share of higher
direct contributions changing hands.
expenditures from voluntary support.
percent, compared with 4 percent the
previous year. (See Table 1 and Figures
1 and 2.)
Overall, the data suggest that voluntary
support is not likely to offset declines
Figure 3
Figure 4
in other funding sources. (See Table 2
Estimated Voluntary Support of
Higher Education
Estimated Voluntary Support
and the Economy
Voluntary Support as a Percentage
of Expenditures, 1984–2004
and Figure 4.)
(Dollars in Billions)
Percentage Increase Over 1974 Amount
(Constant Dollars)
10%
Figure 2
$30
500%
$25
400%
$20
300%
9%
8%
7%
NYSE
6%
Constant 2004 Dollars
$15
Voluntary
Support
200%
$10
2%
GDP
1%
0%
0%
$0
74
4%
3%
100%
Current Dollars
$5
5%
-100%
77
80
83
86
89
92
95
98
01
04
74
84 86 88 90 92 94 96 98 00 02 04
77
80
83
86
89
92
95
98
01
04
VSE-04/3
2004 National Estimates and Trends for Higher Education
Endowments
Table 2
All Higher Education—Voluntary Support in Relation to Enrollment, Inflation, and Expenditures
Institutional Expenditures
Year
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
Total*
Enrollment
(thousands)
12,249
12,272
12,247
12,046
13,055
13,539
13,819
14,359
14,486
14,305
14,279
14,262
14,368
14,502
14,507
14,791
15,312
15,442
15,608
15,756
15,947
55.0
57.0
58.0
60.1
62.6
65.6
69.2
72.1
74.3
76.5
78.5
80.7
83.1
85.0
86.3
88.2
91.2
93.8
95.2
97.4
100.0
of funding for higher education. In
Estimated Voluntary Support
$ Per Student
CPI
(2004=100)
Endowment income is another source
Total**
(billions $)
Current
Constant
98.26
107.69
116.77
125.38
137.51
150.56
163.72
171.73
181.74
189.73
201.53
211.35
223.72
236.13
249.49
266.97
283.80
294.99
313.16
338.84
345.96
8,022
8,775
9,535
10,408
10,533
11,120
11,848
11,960
12,546
13,263
14,113
14,819
15,571
16,283
17,198
18,049
18,534
19,103
20,064
21,506
21,694
14,584
15,405
16,434
17,307
16,819
16,940
17,123
16,588
16,891
17,339
17,989
18,368
18,746
19,164
19,931
20,465
20,332
20,376
21,068
22,078
21,694
9.6%
8.4%
7.4%
9.7%
9.5%
8.7%
4.9%
5.8%
4.4%
6.2%
4.9%
5.9%
5.5%
5.7%
7.0%
6.3%
3.9%
6.2%
8.2%
2.1%
9.4%
8.7%
9.2%
1.2%
5.6%
6.5%
0.9%
4.9%
5.7%
6.4%
5.0%
5.1%
4.6%
5.6%
4.9%
2.7%
3.1%
5.0%
7.2%
0.9%
5.6%
6.7%
5.3%
-2.8%
0.7%
1.1%
-3.1%
1.8%
2.6%
3.8%
2.1%
2.1%
2.2%
4.0%
2.7%
-0.7%
0.2%
3.4%
4.8%
-1.7%
recent past years, endowments grew
$ Per Student
Total
(billions $)
As % of Inst.
Expenditures
Current
Constant
5.600
6.320
7.400
8.500
8.200
8.925
9.800
10.200
10.700
11.200
12.350
12.750
14.250
16.000
18.400
20.400
23.200
24.200
23.900
23.900
24.400
457
515
604
706
628
659
709
710
739
783
865
894
992
1,103
1,268
1,379
1,515
1,567
1,531
1,517
1,530
831
904
1,041
1,173
1,003
1,004
1,025
985
994
1,024
1,102
1,108
1,194
1,299
1,470
1,564
1,662
1,672
1,608
1,557
1,530
5.7%
5.9%
6.3%
6.8%
6.0%
5.9%
6.0%
5.9%
5.9%
5.9%
6.1%
6.0%
6.4%
6.8%
7.4%
7.6%
8.2%
8.2%
7.6%
7.1%
7.1%
12.9%
17.1%
14.9%
-3.5%
8.8%
9.8%
4.1%
4.9%
4.7%
10.3%
3.2%
11.8%
12.3%
15.0%
10.9%
13.7%
4.3%
-1.2%
0.0%
2.1%
12.6%
17.3%
16.8%
-11.0%
5.0%
7.6%
0.2%
4.0%
6.0%
10.5%
3.4%
10.9%
11.2%
15.0%
8.7%
9.9%
3.4%
-2.3%
-0.9%
0.9%
8.8%
15.2%
12.7%
-14.5%
0.1%
2.1%
-3.9%
0.9%
2.9%
7.7%
0.5%
7.8%
8.7%
13.2%
6.4%
6.3%
0.6%
-3.8%
-3.1%
-1.7%
3.0%
8.0%
7.0%
-12.0%
-0.6%
1.0%
-0.8%
-0.9%
0.3%
3.8%
-1.6%
5.6%
6.4%
8.8%
3.6%
7.0%
0.4%
-7.0%
-7.6%
0.0%
slowly or declined at most institutions.
In 2003, survey respondents reported
a 4.3 percent average increase in the
market value of their endowments.
However, in 2004, endowments
of survey respondents increased
18.7 percent.
Percentage Change Over Prior Year
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
0.2%
-0.2%
-1.6%
8.4%
3.7%
2.1%
3.9%
0.9%
-1.2%
-0.2%
-0.1%
0.7%
0.9%
0.0%
2.0%
3.5%
0.8%
1.1%
0.9%
1.2%
3.6%
1.9%
3.6%
4.1%
4.8%
5.4%
4.2%
3.0%
3.0%
2.6%
2.8%
3.0%
2.3%
1.6%
2.2%
3.4%
2.8%
1.6%
2.3%
2.7%
* The enrollment figures reflect full- and part-time students, not FTE.
**SOURCE: U.S. Department of Education.
Figure 5
Current Operations vs. Capital
Purposes Giving, 2000–2004
(Dollars in Billions)
Current Operations
Capital Purposes
$11.3
$11.9 $12.2 $12.0 $12.4
2000
VSE-04/4
2001
$13.6
$12.9
$11.5
2002
$11.0
2003
$10.8
2004
Capital Purpose
Giving vs. Current
Operations Giving
The New York Stock Exchange (NYSE)
in 2002. However, the trend reversed in
significance. By 2002, alumni support
composite index increased in 2004 but
2004. The average number of securities
was back to its 1988 level of almost a
declined in 2003. Stock market
gifts reported on the survey was up
quarter of voluntary support. In 2004,
performance for both years contributes
15.7 percent, and the value of those
alumni support rebounded further,
Over the past three decades, current
to capital purpose contributions for the
gifts was up 25 percent. In 2004, the
reaching 27.5 percent of total support.
operations giving has accounted for
academic year 2004, which extends
average gift of stock reported on the
(See Figures 9 and 10.)
slightly more of the contribution
from July 1, 2003, to June 30, 2004.
survey was $36,660. In 2000, the
revenue than capital support, with the
(See Table 1 and Figures 5, 6, 7, and 8.)
average value of reported securities
exceptions of 1998, 1999, and 2000,
contributions is reflected particularly
rapidly. (See Figure 5.)
In 2004, the increase in voluntary
from other individuals typically repre-
gifts reached a high point of $42,066.
The effect of the stock market on
when stock values were increasing
The sum of alumni giving and giving
in data on gifts of securities. These
Personal Giving
sents about half of all giving to higher
education. In 2004, personal giving
represented 48.8 percent of all contri-
gifts are important because they are
Alumni giving is the traditional founda-
butions. In addition, individuals may
support of higher education was
among the largest gifts an institution
tion of higher education support,
support an institution through a family
caused almost entirely by an increase
receives. In 2003, such contributions
representing up to about a quarter of
foundation, donor-advised fund,
in gifts for current operations. While
declined in both number and value,
charitable receipts until the late 1980s,
or private business. These gifts are
capital purpose giving stabilized, its
though the rate of decline was steeper
when it began to inch above that level.
considered contributions from organi-
share of total support declined to
in 2002. The number of such gifts
Alumni contributions’ share of total
zations, not personal gifts, but they are
44.3 percent. Current operations
declined 17.3 percent in 2003 and 20
support for higher education reached a
given because of a personal relationship
contributions increased and currently
percent in 2002. Their value declined
high of nearly 30 percent in 1998 and
with an institution. With that in mind,
21.2 percent in 2003 and 35 percent
then began to taper off in relative
personal relationships with colleges
represent 55.7 percent of the total.
and universities can be said to account
the majority of contributions.
Figure 6
Figure 7
Figure 8
Estimated Support by
Major Purpose
Current Operations Giving vs. GDP
Capital Purposes Giving vs. NYSE
Billions of Constant 2004 Dollars
Percentage Increase Over 1974 Amount
(Constant Dollars)
Percentage Increase Over 1974 Amount
(Constant Dollars)
$14
180%
500%
160%
$12
400%
140%
$10
120%
Current Operations
NYSE
Current Operations
300%
100%
$8
80%
$6
200%
60%
Capital Purposes
GDP
40%
$4
100%
Capital Purposes
20%
$2
0%
-20%
$0
74
0%
77
80
83
86
89
92
95
98
01
04
74
-100%
77
80
83
86
89
92
95
98
01
04
VSE-04/5
74
77
80
83
86
89
92
95
98
01
04
2004 National Estimates and Trends for Higher Education
Organization Giving
Gifts and grants from organizations
decreased 2.0 percent, mostly driven by
a 6.1 percent decline in foundation
giving. Since foundation grants are
typically based upon previous years’
assets, the foundation giving picture
should improve as foundation assets
rebound in a more robust investment
environment. Corporate support of
higher education institutions increased
3.5 percent, and, as noted earlier,
charitable giving represents a fraction of
the corporate support of higher education
institutions. (See Figures 11 and 12.)
While foundations and corporations
Figure 9
Figure 10
account for most of the organization
Estimated Support by Individuals
dollars that go to higher education,
Billions of Constant 2004 Dollars
Alumni Support as a Percentage
of Total Giving to Higher Education
religious organizations and other
$8
organizations, such as some donor-
$7
advised funds and fundraising consortia
$6
(including United Way, UNCF, and
$5
other combined-fund drives), also
$4
make significant contributions. These
$3
contributions increased just over a
$2
half a percent, or $10,000. Religious
$1
organization giving declined 2.8
$0
percent, also representing $10,000.
30%
25%
Alumni
20%
15%
10%
Other Individuals
5%
0%
74
77
80
83
86
89
92
95
98
01
04
84 86 88 90 92 94 96 98 00 02 04
(See Table 1.)
Figure 11
Corporate Support vs. Economic
Indicators
Figure 12
Foundation Support vs. Economic
Indicators
Percentage Increase Over 1974 Amount
(Constant Dollars)
Percentage Increase Over 1974 Amount
(Constant Dollars)
500%
500%
NYSE
400%
400%
300%
300%
NYSE
200%
200%
Corporations
PTI
100%
Foundations
PTI
100%
GDP
GDP
0%
0%
-100%
-100%
74
VSE-04/6
77
80
83
86
89
92
95
98
01
04
74
77
80
83
86
89
92
95
98
01
04