No, this isn’t a Groupon deal, but it sure feels just as cheesy as presenting a printed out coupon to the waiter. North Dakota Governor, Jack Dairymple, released details about the state’s $12.8 billion budget proposal for the next two years. Included in the plan is an incentive strategy to help promote private donations to public universities.
$30 million will be set aside for education funding over the next two years. One-third allocated for the University of North Dakota, one-third for North Dakota State and one-third for the rest for the remaining public colleges in the state. But, the funds will only become available as a 1:2 partial match to private donations.
“The one-for-two incentive is really a proven strategy for philanthropy around the country,” Dalrymple told The Forum’s Editorial Board last week. “We think this is something that we should try.”
The plan will encourage schools to up their donation drive efforts and raise overall awareness. “It’s an incentive for people to step up to the plate because they know there is a partnership now between private contributions and the state of North Dakota,” said Jim Miller, President of NDSU Development Foundation.
“I think it’s wonderful,” he said. “We’ve talked about similar programs for several years, and this is the first time something like this has actually made it into the governor’s budget.”
Several states have adopted the partial match strategies with great success but a few have also had some setbacks. Florida, who has had a ‘Major Gifts Trust Fund Program’ established since the early 80’s was forced to repeal the program three years ago when hit with budget shortfalls. When the incentive program ended, private donation interests pulled back, leaving a huge deficit in expected contributions.
Institutions who had become accustomed to a certain level of funding took on large projects and renovations that were not sustainable without the same level of donations and state sponsored gift matching.
The University of Florida currently has 15 buildings under construction which have become stagnant. Leslie Bram of the University of Florida Foundation said, “Our donors and benefactors are frustrated because they want to see the projects come through.”
“We’ve delayed three years and construction costs have gone up,” she said.
If passed, hopefully, North Dakota Universities will plan accordingly and remember that the bill only runs for two years. It could be a case of ‘here today, gone tomorrow’.