Tough economics lesson for school funds
Private foundations that raise money for extras in local districts are feeling the pinch of a sagging economy.

By Kathy Boccella
Inquirer Staff Writer

Even in good times, the Washington Township School District has no money in the budget for frills. So when its middle schools wanted an $11,000 projection system last year, the district turned to its education foundation.

The foundation is a nonprofit organization that raises $25,000 to $30,000 annually to fund extras that the largest district in Gloucester County cannot afford. But next year, it may not be able to pick up the slack: Only about 20 people have signed up for its big annual fund-raiser, a May golf outing.

"The timing couldn't be worse," said Charlie Doud, the foundation's president. "People are unwilling to spend $125 on a fund-raiser when that $125 may be buying a couple of pairs of shoes."

As the shaky economy and tightening state aid have forced school districts to trim their budgets, private foundations have sprung up in the last decade to pay for a wide range of equipment, artists-in-residence, and amenities that are outside the districts' spending plans. Now, they, too, are feeling the pinch.

If the trend continues, the foundations say, students may have to do without chamber music coaches, Arabic teachers, smartboards, and other educational goodies the foundations provide.

"I don't know of a local education fund right now that is not either projecting a fiscal crisis down the line or is in the middle of one right now," said Arnold Fege, director of public engagement and advocacy at the Public Education Network, which represents 82 education foundations in lower-income districts.

Even deep-pocketed districts are feeling the strain. Radnor Township's education foundation stopped awarding teacher grants for the remainder of the school year after its annual gala, a casino night, raised 30 percent less than the year before.

"Fewer people came, fewer spent money," said Joy Antonoplos, executive director of the group, which awards about $50,000 a year in grants for things such as smartboards and laptops, playwriting programs, and outdoor classrooms.

"We've put a hold on giving. Teachers have already been notified not to send in" grant requests, she said.

Foundations can generally be found in wealthier suburban districts and have traditionally provided luxuries such as rock-climbing walls and poetry cafes, but increasingly they are funding hard-to-live-without items such as computers and college scholarships.

The money comes from parents, businesses, and corporations, which participate in a wide range of fund-raisers, including a Dancing With the Stars program featuring school faculty paired with professional dancers, wine tastings, and all-you-can-eat buffets.

To make up for the shortfall, some foundations are frantically adding events, trying new fund-raising gimmicks, or targeting alumni, which private and parochial schools have done for years.

"You've got to work a little bit harder. There are always things other than special events. . . . You got to be doing a little of this, a little of that. There might be seven different areas where you can raise money and they might only be doing two," said Bob New, director of the Mid-Atlantic Consortium of Education Foundations.

A revenue stream that many foundations count on - the Education Improvement Tax Credit, which allows corporations donating to schools to get a tax credit for 75 percent to 90 percent of the contribution - may also be drying up as companies cut back on giving and states reevaluate how much they set aside for the program.

This year, North Penn's foundation received $15,000, less than half the amount it got the year before. And income from its annual golf outing was down about 20 percent, said Christine Liberaski, the group's executive director.

Now foundation leaders are hoping for a good turnout at the annual gala and auction in April and have added a raffle for an Outback Steakhouse barbecue for 50 at the winner's house. If they sell all the tickets, they could make $20,000, Liberaski said, adding that they are also looking into starting an alumni association.

Response to the Eastern Regional School District Educational Foundation's annual Monte Carlo night last November was so weak that the event was canceled and rescheduled for last Friday. Still, it raised only half the usual revenue, said Jack Goodman, president of the charity that serves the Voorhees-based district.

Even Lower Merion, the wealthiest district in the area, is struggling. Its big fund-raiser in November took in about $20,000, compared with $35,000 the previous year, mostly because of a drop in corporate sponsors.

"We were asking in a climate where nobody wanted to commit to anything," said foundation coordinator Sherry Wert. "Citibank had been our lead sponsor, so that didn't work out too well."

Upper Darby is bucking the trend with increased ticket sales for its annual gala, but its newly formed alumni association is also paying big dividends. A former student, now a Hollywood producer, just sent a check for $20,000.

To raise money for a new $90,000 television studio at the high school, Haverford's foundation is working Facebook and other social-network sites.

"It will be huge in how we get the word out about what we're doing," said Ellen Fisher, the group's president.

With charitable giving down in every sector, donors are looking for causes where "their gift will make a difference," said Robert Evans, founder of EHL Consulting in Willow Grove.

People who give to schools "see more of a return on their investment," but they do not want to attend galas or pay for elaborate capital projects in uncertain times.

"Very basic is what people are expecting," Evans said.

Despite the downturn, many foundations say they continue to fund programs and should be able to maintain the same level next year. But if the economy does not improve soon, students may have to do without Lego Robotics clubs and rock-climbing walls.

"It's possible things won't get funded," said Janis Reynolds, president of the Kennett Education Foundation, which is seeing less support for its annual fund drive, which pays for, among other things, 15 college scholarships for needy students.

"We'll work harder to fill all the requests," she said. "If we have to go out one on one to get people to donate, that's the way we'll go."