Are the Donors All Right?
Posted on April 5th, 2010 in Uncategorized | 4 Comments »
A Crimson article suggests that Harvard’s donors aren’t worried or upset about the university endowment’s $11 billion decline last year.
“The donor community that I know, they believe in Harvard—they’ve been up, and they’ve been down,” said John A. Armstrong ’56, who has endowed a professorship in engineering and applied sciences. “I think it’s highly unlikely that their commitment to Harvard has been affected.”
This is the kind of reporting that I’ve noticed in the Crimson on quite a few occasions this past year—marked by a lack of skepticism and a faith in the powers-that-be.
For example:
A tough economic climate may also present particularly wealthy donors with opportunities for giving. Low interest rates during a recession make an investment vehicle known as a charitable annuity trust particularly attractive because it allows donors to pass on money to their heirs and the University at low tax rates, according to one prominent donor who asked to remain anonymous to preserve his relationship with the University.
I don’t want to be too hard on the Crimsonians who wrote this story, as they are learning their craft, but this is pretty weak. Why would this source want to remain anonymous when he’s actually encouraging donations to Harvard? More to the point, it’s easy enough to call up a wealth advisor and get a neutral party to comment on charitable trusts.
And I think there’s a similar lack of skepticism—or, perhaps, it’s a similar hint of cheerleading—throughout this piece. The university has lost billions, much of which it didn’t have to lose, and you can’t find anyone who thinks that subsequent fundraising will take a hit?
4 Responses
4/5/2024 4:00 pm
I agree. Part of the excerpt you quote sounds as if it could be lifted directly from a development office brochure.
4/6/2024 4:14 pm
Let us examine the campaign. Six billion over six years. The University raises $500mm more or less each year. That means the campaign is meant to pull in $3 billion incremental money. Oh, that is about the amount wasted in the central bank/endowment fiasco or roughly equal to the new debt taken on by the University to staunch the liquidity crisis caused by the aforementioned. Let’s all stick our heads in the sand and sign up for that program!!
4/10/2024 2:17 pm
Speaking of terrible reporting from the Crimson, check out this rotten egg:
http://www.thecrimson.com/article/2010/4/8/tushnet-court-kagan-solicitor/
The headline calls Kagan’s appointment to the Supreme Court a “likely prospect”… without citing a single source.
Like you said, they’re still “learning their craft,” but this is unacceptable.
4/11/2024 7:42 pm
That giving is unharmed is totally untrue. Some donors are very skeptical. ‘Giving to Harvard is like buttering a pig’s ass’ one of them said recently when asked to contribute to a particular target.