Alumni Hold Key to Future of Indiana Colleges

By Terry T. Munday

Lilly Endowment’s latest initiative to aid public and private colleges in Indiana came with a not-so-subtle message: It’s time for alumni of those institutions to step up and play a larger role in the future of their alma maters.

Few would question that Lilly Endowment has done more than its share. The Indianapolis-based philanthropy has given more than $1 billion since 1996 to public and private education in Indiana.

Lilly Endowment’s latest initiative – to match up to $3.5 million raised by each of the 38 accredited colleges and universities in the state – could boost that total by another $138 million.

The only rule, and it’s a valid one, is that the money must come from people who should have the greatest interest in the welfare of those 38 public and private colleges: Their alumni. Historically, alumni of Indiana colleges haven’t done as well as they should when it comes to supporting their alma maters.

The Indiana General Assembly tried to address that problem when it created the Tax Credit Law for Higher Education. But fewer than 5 percent of Hoosier taxpayers take advantage of the law which, in effect, reduces the net cost of a $400 college gift to about $90 for a married couple.

What Lilly Endowment has done with its Special Initiative to Strengthen Philanthropy for Indiana Higher Education Institutions is add another incentive atop an existing incentive.

Lilly Endowment believes there is a connection between giving and engagement, according to Sara B. Cobb, Vice President for Education for the Endowment. “It seems that a person who makes a financial contribution to a college or university is more likely to be interested in the institution’s vitality and effectiveness,” she said.

Ms. Cobb said that higher education institutions that boast high levels of giving from alumni, faculty, staff, students and parents are among the strongest such institutions in our country. The latest Lilly Endowment initiative should serve as a forceful incentive for more of the people in those categories to support the Indiana college of their choice.

Granted, it should be easier for large universities – such as IU or Purdue or Ball State – to raise $3.5 million because of their larger alumni base. But the goal should be well within reach for smaller institutions, such as Indiana Wesleyan University.

Here’s some simple math to explain why I believe that. About 15,000 of Indiana Wesleyan’s 27,000 alumni live in Indiana. If each of those in-state alums gave just $200, their gifts would generate $3 million – or a total of $6 million with the Lilly Endowment match.

Because of Indiana’s tax credit law, coupled with a Federal income tax deduction, the net cost of each of those 15,000 gifts would be about $44 per alumni! That is an investment that every graduate of every public and private college in Indiana ought to be willing to make.

Lilly Endowment can’t do the job by itself. The media already has used adjectives such as ‘exceptional’ and ‘unprecedented’ and ‘unique’ to describe the Endowment’s latest initiative. It’s time for alumni of Indiana colleges and universities to become partners in the ongoing process to upgrade higher education in the state.

Write a check to your alma mater, and do it now. Your dollars never will be worth more.

Terry T. Munday is the Vice President for University Advancement of Indiana Wesleyan University in Marion.