At a time when philanthropy is more important than ever at LSU, talk of potentially devastating budget cuts to higher education being bandied about the Capitol actually makes it harder for the LSU Foundation to raise money, says Stephen Moret, the foundation’s president and CEO.
“Overall it makes it more difficult because of the uncertainty,” he says. That’s especially true with respect to the multimillion dollar major gifts that fund new buildings or create new programs or departments.
“Folks want to feel like they’re investing in something that will move the institution forward—that they’re impacting students or research or the state,” Moret says. “But that presumes the investment they’re making is building on top of a foundation that is sound.”
The state’s current budget deficit of more than $850 million and next year’s projected deficit of $2 billion will mean tens of millions of dollars in cuts to higher education—even if lawmakers raise some new tax revenue. Under a worst-case scenario, the LSU System alone would see cuts of more than $65 million, which university officials have said is unsustainable.
Private donations can help offset some of the cuts, and Moret says some donors give year after year to help the university stay afloat in the face of chronic budget reductions. But as a rule, doomsday scenarios don’t cause a flood of donations from concerned alumni, particularly those who have lived through years of budget shortfalls and cuts to higher ed.
“This is not something that just happened for the first time,” Moret says. “The donor community has seen this as largely a recurring trend.”
Moret, who took over at the helm of the LSU Foundation last May after leaving Louisiana Economic Development, says statistics suggest a tremendous untapped potential among LSU alumni and non-alumni donors alike. LSU lags behind peer institutions among alumni giving and has one of the smallest endowments of Southeastern Conference universities. The foundation is working with a national consulting firm as well as the Tiger Athletic Foundation, the LSU Alumni Association and the other LSU campuses on a new strategic plan that will pave the way for a major capital campaign that will officially kick off in 2018.
—Stephanie Riegel
