The November 3 University Council meeting was primarily devoted to the annual State of the University presentations. President Amy Gutmann's report, including the portions presented by Omar Blaik, Craig Carnaroli and Medha Narvekar appear in this issue. Interim Provost Peter Conn's remarks, along with the portions of his report presented by Carton Rogers and Leslie Hudson will be included in next week's issue.
I'm pleased to give you a report on the state of private philanthropy to the University of Pennsylvania. Before I share with you some of the results from Fiscal 2004 and an update on where we are so far this year, I'm going to give you a little bit of a context of our program.
Private philanthropy to the University of Pennsylvania has grown tremendously over the last 15 years. We have a very loyal and very large alumni body of 250,000 alumni around the world. They have increasingly stepped forward in recent years to invest in our academic mission and to support our priorities.
I want to give you a snapshot of the last few years (see below). As you can see the vast majority of our private support goes to support academic programs and research across the University: 18 percent goes to directly support students and faculty and 11 percent goes to support construction of academic facilities.
You can see private philanthropy splits almost evenly between individuals, alumni, and friends and foundation and corporations. This is slightly misleading because a number of the foundations are in fact private individual family foundations of alumni and others who are directing funds to the institution. So individual donors continue to be and will be in the future a very important part of the philanthropic base for the University.
I thought you might like to see where we stand against our Ivy peers. I'm very pleased to report in Fiscal 2004 we stood fourth in this group. We now consistently rank either number three or four in these rankings. Ten years ago Penn was never in the top five. So we have really made some progress here in terms of philanthropic support from our alumni and other friends.
I want to focus for a moment on annual giving. This is the bread and butter program for development. These are the annual unrestricted gifts that individuals make to support the University and as you can see we have been trending up here. We've been focusing a lot of time and attention on building these programs and we're very pleased to see this kind of result. Why is annual giving important? Usually the first philanthropic connection that an individual has with the University is through annual giving. It is from this group of people that we find our larger benefactors.
I want to take a minute to update you on our fund raising for undergraduate financial aid. We completed in June of 2004 a $200 million campaign to build the undergraduate financial aid endowment. We completed that campaign at $205 million. Named scholarships at the University grew during this period from 150 in 1997 to 1,075 named scholarships when we closed this fiscal year. This year 14 percent of the undergraduate financial aid budget is now funded from our endowment as opposed to 4 percent when we started this campaign. We clearly will be working with Dr. Gutmann and others to look at our development strategy for undergraduate financial aid and for graduate financial aid going forward. This will continue to be a major priority for us.
Finally I want to make sure that everybody knows that we have alumni around the world who stay very connected to Penn. One of our priorities for President Gutmann this year is to make sure she meets our alumni around the world. We have major events planned in eight cities through the spring and into the fall of next year. Tomorrow we will be in Boston, and we are expecting over 800 alumni coming out to meet the President, which is an all time high for us in that city.
That concludes my report.
Almanac, Vol. 51, No. 11, November 9, 2004