In-fighting, economy may hurt endowment

Oct. 2, 2008

By Ashley Corinne Killough
Staff Writer

According to a report by Bentz, Whaley & Flessner, a consulting firm hired to measure potential giving to the university, Baylor's goal of reaching a $2 billion endowment by 2012 could be hindered by internal disagreements between groups at Baylor.

At the end of the 2007-08 fiscal year, Baylor's endowment was at $1.1 billion. It was the fourth consecutive year marked with an increase in gifts designated for the endowment, with $21.9 million added to the fund.

Dr. Dennis Prescott, vice president for university development, presented the report at the Faculty Senate meeting in September. Prescott declined to comment on the details but said the report was well received by the administration.

"We're still analyzing it, and we're beginning to implement some of its recommendations," Prescott said.

While optimistic about Baylor's efforts in establishing major gifts, Prescott said the main obstacle for the endowment's growth is the economy.

"The $2 billion goal was viewed as having an extremely aggressive timeline when it was set out," Prescott said. "We would be a lot closer if we didn't have challenges in the financial markets. That affects giving, as well."

Prescott suggested the endowment could have experienced a financial setback during Monday's record-breaking drop on Wall Street. Baylor's Office of Investments did not respond to requests for information on the endowment's status.

In its resolution concerning the presidential search, Faculty Senate addressed the relationship between internal division and university giving.The resolution said Baylor's "ability to raise institutional funds has been significantly hampered by transient leadership, perceptions of disunity and perceptions of non-standard procedures and searches."

Tension surfaced when the Board of Regents voted in May 2007 to end the fee-for-service relationship between the university and the Baylor Alumni Association. Adding to the disunity was the decline in faculty morale after an unusually high number of candidates were denied tenure in March, a decision ultimately made by former President John Lilley.

Lynn Tatum, immediate past president of the Texas American Association of University Professors, said division in the Baylor family has been a "massive drag" on the university's ability to raise funds.

"Most of this turmoil arose out of controversies associated with previous administrations, controversies that we can, and should be able to, move past," Tatum said. "The faculty, donors, regents and alumni that I talk to want to reunify. And if we are careful and thoughtful, we will be able to do so."

Tatum said an important step for moving forward would be the enactment of Faculty Senate's recommendations that the next presidential search committee be inclusive and representative of various groups at Baylor.

"Imagine the good will that could be generated with a search committee that includes representatives of the faculty, students, alumni, staff and regents. A president supported by all of Baylor's constituents can raise significant funds."

Jeff Kilgore, vice president of the Baylor Alumni Association, said the consultant's report validated a need for Baylor's various constituents to unite. He said the BAA supports Faculty Senate's proposal of inclusion in the presidential search.

"The idea of inclusion doesn't assume authority, it only begs for a platform by which opinions can be shared, so that those making decisions can make as informed decisions as possible," Kilgore said.

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