Spring Break
Hogan seeks more private funding through new program
Kate Monohan
Issue date: 2/16/09 Section: News
UConn President Michael J. Hogan announced a new initiative called the Presidential Challenge program, on Feb. 2. The Presidential Challenge aims to raise $100 million in private funding for scholarships and graduate fellowships, which have lost some funding in light of the current economic crisis.
"Students and their families, like everyone else, are being hit hard by the current economic challenges," Hogan said in a university press release. "Given the important role of higher education in catalyzing economic development, we need to seek ways to protect their access to UConn, one of the nation's top public research universities."
This is the first time that UConn has sought out private endowments, said M. Dolan Evanovich, vice president for enrollment planning, management and institutional research. The average student at UConn will graduate with about $20,000 in debt, which is on par with the national average of $22,000, according to Evanovich.
"This is a long-term strategy," Evanovich said. It will take five to seven years to accomplish this goal, he said.
By partnering money from private donors with the existing $50 million that the university has set aside for scholarships, Hogan hopes to elicit more donors, and with that, help more students. This will be done with a matching of the payout (the interest) of the endowment funds, Evanovich said.
If someone were to donate $100,000, for example, the payout would be 4 percent annually. The principal amount ($100,000) stays in the account, and the interest ($4,000) would be paid out to the student. Then, the university would match this amount with another $4,000 for a total of $8,000, making the money go that much further for students.
"We could help two students instead of one, or four instead of two," Evanovich said.
Non-endowed gifts would be paid out immediately, with 50 cents on the dollar, making a donation of $100,000 increase to $150,000. Endowments are preferred, since they provide money in perpetuity, Evanovich said.
"Students and their families, like everyone else, are being hit hard by the current economic challenges," Hogan said in a university press release. "Given the important role of higher education in catalyzing economic development, we need to seek ways to protect their access to UConn, one of the nation's top public research universities."
This is the first time that UConn has sought out private endowments, said M. Dolan Evanovich, vice president for enrollment planning, management and institutional research. The average student at UConn will graduate with about $20,000 in debt, which is on par with the national average of $22,000, according to Evanovich.
"This is a long-term strategy," Evanovich said. It will take five to seven years to accomplish this goal, he said.
By partnering money from private donors with the existing $50 million that the university has set aside for scholarships, Hogan hopes to elicit more donors, and with that, help more students. This will be done with a matching of the payout (the interest) of the endowment funds, Evanovich said.
If someone were to donate $100,000, for example, the payout would be 4 percent annually. The principal amount ($100,000) stays in the account, and the interest ($4,000) would be paid out to the student. Then, the university would match this amount with another $4,000 for a total of $8,000, making the money go that much further for students.
"We could help two students instead of one, or four instead of two," Evanovich said.
Non-endowed gifts would be paid out immediately, with 50 cents on the dollar, making a donation of $100,000 increase to $150,000. Endowments are preferred, since they provide money in perpetuity, Evanovich said.
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