HOPKINS CAMPAIGN UNDER WAY ------------------------------------------------------------ Endowment is key to future of institutions ------------------------------------------------------------ The Johns Hopkins Initiative has as one of its principal goals a substantial increase in the endowments of The Johns Hopkins Institutions. An endowment is that portion of an institution's financial resources that is held in perpetuity. A portion of the total return generated by the endowment is used to fund current operations; the principal, however--whether in the form of cash, bonds, equities or other investments--is considered inviolate and, in general, cannot be spent. The Johns Hopkins Institutions were founded on a bequest of $7 million from merchant Johns Hopkins. Under the conditions Hopkins specified for the university's half of that $7 million, the trustees were barred from using the principal of the bequest either for capital expenditures or operating expenses. The bequest was the university's first endowment; the bequest itself could not be spent, though the income it generated could. Endowment is a university's financial bedrock. It allows an institution to be less dependent than it might otherwise be on unpredictable sources of revenue, such as research sponsorship or government aid. It allows an institution to charge students less in tuition than the full cost of an education. And it provides a research university, in particular, assurance about its financial future, enabling it to take the intellectual risks that can pay off in monumental leaps forward in knowledge. Today, Johns Hopkins University has a small endowment relative to many of its peer research universities. As of June 30, 1994, the end of fiscal year 1994, the market value of the Hopkins endowment stood at $746.777 million. As of June 30, 1993, the latest date for which comparable figures from other universities are available, the market value of the Johns Hopkins endowment stood at $725.035 million. That ranked Johns Hopkins 21st in a survey of colleges and universities published in the Feb. 9, 1994, edition of the Chronicle of Higher Education. Harvard University had by far the largest endowment, at more than $5.118 billion. Of the 20 schools ranking above Johns Hopkins on the survey, 10 had endowments more than twice as large as Hopkins'. A total of 14 had endowments above $1 billion. Because of the endowment's relatively small size, Johns Hopkins University is able to generate only about 4 percent of its annual operating budget from endowment income. For many private research universities, that figure is 10 to 20 percent. The Johns Hopkins Hospital and Health System's endowment as of June 30, 1994, was $178.666 million. Facts about the Hopkins campaign Goal: Raise $900 million in private funds to increase endowment, fund capital projects and support ongoing programs of the Johns Hopkins Institutions (i.e., The Johns Hopkins University and The Johns Hopkins Hospital and Health System). Priorities: The primary aim of The Johns Hopkins Initiative is to increase substantially the university's relatively small endowment and to fund pressing construction and renovation projects for both the university and the health system. Of the $900 million overall goal, $525 million is for endowment and capital purposes. The remaining $375 million is for support of current programs, including through annual giving. Duration: The public phase of the Johns Hopkins Initiative began on Saturday, Oct. 1. The campaign will conclude in the year 2000. Advance gifts: The boards of trustees of the university and the health system authorized the institutions to accept gifts for the campaign beginning July 1, 1991. Since then, lead donors have been asked to show their support and enthusiasm with advance pledges and gifts for endowment and capital purposes. Advance gifts and pledges totaled $274.6 million, or 30.5 percent of the total goal. The two largest advance gifts are a $50 million challenge for endowment in the School of Arts and Sciences by the Zanvyl and Isabelle Krieger Fund, and the $20 million gift announced Friday for the Eisenhower Library from R. Champlin and Debbie Sheridan. Last campaign: The Campaign for Johns Hopkins was publicly launched in September 1984 and lasted until February 1990. The campaign raised a record $644 million, 43 percent more than the original goal of $450 million. The Campaign for Johns Hopkins was significantly different in character, however, from The Johns Hopkins Initiative. The earlier effort raised $247.5 million, or 38 percent of the total, for endowment and facilities. The Johns Hopkins Initiative seeks to increase that portion to 58 percent; the emphasis on the university's critical need for endowment, in particular, makes this a difficult goal to accomplish. Endowment money is the hardest to raise. Goals by unit: School of Arts and Sciences, $140 million; School of Continuing Studies, $9 million; Eisenhower Library, $27 million; School of Engineering, $50 million; Homewood Schools, $8 million; School of Hygiene and Public Health, $80 million; Johns Hopkins Medicine, $455 million (School of Medicine, $355 million; hospital and health system, $100 million); School of Nursing, $19 million; Peabody Institute, $20 million; School of Advanced International Studies, $40 million; Nanjing Center, $4 million; academic centers and university-wide needs, $48 million. Priority projects: All divisions of the university seek substantial gifts of endowment to increase financial aid for both undergraduate and graduate students, to create endowed chairs for both young faculty and senior professors, and to provide seed money for new research projects. Priority capital projects include the new comprehensive Cancer Center at the hospital, new buildings for the School of Nursing and the School of Hygiene and Public Health, renovations of the Eisenhower Library and several Engineering School buildings at the Homewood campus, and student activity and recreation space at Homewood.
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