The Online Reflector

BRAUGHTON

By Kim Puckett | News Editor

The nation’s dilapidated economy has left its mark in every facet of the United States, including its universities. Mike Braughton, vice president of business and finance and treasurer, said UIndy has also been hit by the nation’s declining economy.

“The market value of our endowment has taken a hit just like all of the investments everywhere else.”

UIndy’s endowment lost more than one-third its market value in the last year, according to Braughton.

After this loss, the university’s budgeted endowment for the 2008-09 academic year is about $3.3 million, 92 percent of which is used for academic spending such as student financial aid and payment for endowed faculty. The remaining eight percent is used as part of the university’s unrestricted budget.
Although the erratic market has taken its toll on the university’s endowment, Braughton does not see financial collapse in UIndy’s future.

“We view this as a temporary problem, not a long term problem, because right now decisions on Wall Street are being driven by fear and irrationality,” Braughton said. “As soon as we get some sanity back in the market I think things are going to begin to turn around.”
Braughton also attributed the university’s future fiscal safety to its enrollment-driven economic model.
“We are not as dependent on our endowment as many schools are,” Braughton said. “We rely on our endowment to only provide about 4.6 percent of our total revenue. So, if it all went away, we would still survive.”

Jim Smith, vice president for university advancement, said donations to UIndy have declined this year as well. Smith said that smaller annual fund gifts, ranging from $50 to $1,000 are down 10-12 percent this year.
“We are not unhappy with that data given the financial markets and uncertainty out there,” Smith said.
Smith also said the university has seen an even larger decline in the major gift donations, which start at $10,000. These gifts are used for major building projects such as the new Student Athletics and Recreation Center.

“The decrease in gifts has slowed down the new athletic facility project by about six months,” Smith said. “Part of the project is funded by a $5 million bond, and $2 million will be funded by gifts. We raised about $700,000 pretty quickly, but when the financial market took the hit in late fall, fund-raising really slowed down.”
Like Braughton, Smith expressed optimism for UIndy’s future.
“The university is fortunate to have committed donors and friends,” Smith said. “ Right now, things have really slowed down, but I’m sure when the economy stabilizes, we will see more people philanthropically giving.”