Campaign gap grows wider from allotments

By Allison Sundaram

Although the $350 million Campaign for Santa Clara is nearly complete in donations, development officials are concerned that some of those gifts are earmarked for different priorities.

The campaign, announced in October 2002 by University President Paul Locatelli, S.J., was to raise millions of dollars for scholarships and new building projects, including the new Library for the 21st Century.

The campaign is broken up into seven priorities, including construction projects, scholarships and technology. However, since donors choose where their gift is directed, some goals have been better funded than others within the campaign.

The greatest funding gap is in construction projects, which still lack $76 million though $113 million has already been raised.

"Even though we've brought in $343 million, sometimes donors will give us gifts that are not designated to any of these priorities," Assistant Vice President for Development Nancy Trish Calderon said. "So, because of that, we still have this gap in the priorities even after we've met the goal."

The money raised for capital projects will go toward the new Library for the 21st Century, a new building for the Leavey School of Business and a new Jesuit residence. Scholarships and technology must raise a combined $14 million to meet campaign goals.

Although officials are optimistic about raising the full amount in pledges and gifts, there has been talk of a bond initiative to support construction on the new library, currently scheduled to begin in June 2006. A $1.5 million cushion to service debt accrued by library construction costs has been built into the 2006 operating budget.

Construction costs have increased since October 2002. Material costs have risen, particularly steel prices, which has been blamed on recent natural disasters, such as Hurricane Katrina in August 2005. The costs for the library increased by $15 million, the business school by $13 million and the Jesuit residence by $1 million.

The need for a cushion of $1.5 million can be partially attributed to fact that 52 percent of raised money is in pledges which can be paid over a period of up to five years. Pledges are still a part of the overall figure raised, but gifts and donations, in comparison, put money in-hand for the university. Gifts and donations make up 48 percent of the funds raised.

"Because we want to break ground and start on the building there's some debt that's required," Calderon said.

The university anticipates reaching an interim goal of $28 million for the library by June 2006, when construction will begin.

As of Dec. 31, 2005, $7 million had been donated or pledged to the new Jesuit residence, leaving a discrepancy of 46 percent, or $6 million.

"We really need a new building for a variety of reasons," said Sonny Manuel, S.J, rector of the Jesuit Community. "One is the university needs this building, because currently we have almost twenty rooms empty, because the Jesuit community has diminished in number over the years."

The university plans to open Nobili Hall for undergraduate housing in fall 2006. There are also plans to use the first story of Nobili for interim library services.

Despite the fact that most of the capital campaigns still have 45 to 50 percent more needed to be raised for completion, the university is optimistic about meeting campaign goals.

"We don't feel our work is done until we've met all the priorities of the campaign," Calderon said.

Although there is no anticipated upsurge in donations due to a particular action, the Board of Trustees, which has so far contributed $60 million to the business school and library projects, has inaugurated a further push for donations.

The board will be contributing an additional $15 million, and calling upon various alumni and friends of the university to give more and finish funding the capital projects.

The campaign has also received $59 million comprising of non-designated gifts and gifts dedicated to non-campaign projects.

The $343 million raised thus far accounts for approximately 98 percent of the donations needed, and will continue until Dec. 31, 2006.

Contact Allison Sundaram at (408) 554-4546 or asundaram@scu.edu.