For more than 20 years the CASE Commonfund Award has been recognizing individuals who have contributed to the advancement of the college and university foundation field. The 2024 award was presented to Kathy Schmidlkofer, President and CEO, University of Minnesota Foundation and Gretchen Wood, Executive Director, Monroe Community College Foundation, on site at the 2025 Conference for College and University Foundations held in Chicago, IL earlier this month.
Policy Environment Generating Uncertainty
Various recent federal policy actions have created significant challenges for higher education, many of which impact college and university foundations. The most immediate impacts have come from cuts to funding streams such as grants. For example, as of the conference, no funding was coming through the National Institute of Health (NIH) – which typically distributes more than $37 billion per year – impacting faculty, staff and students, and putting even more pressure on fundraising and endowments. The ongoing dismantling of the Department of Education will have consequences that are currently unclear. And policies targeting DEI programs beyond admissions are making it difficult to manage existing donor agreements and meet various programmatic goals.
One main goal of this administration is to extend the tax cuts imposed by the 2017 Tax Cuts and Jobs Act (TCJA) before many provisions expire at the end of 2025. Doing so requires trillions of dollars in offsets to be raised for the federal government to extend massive tax cuts. One way to do that is by cost-cutting, e.g. slashing NIH and Pell grants. Another is by raising tax revenue – there is potential for increased taxes on the charitable sector broadly, to tax nonprofit institutions as businesses. Current policy proposals could also dramatically increase and broaden applicability of the higher education endowment tax (currently 1.4 percent that applies to less than 75 colleges and universities), although a silver lining for college and university foundations at this conference is that current endowment tax proposals do not apply to public institutions.1
See U.S. Federal Policy Tracker | CASE for more information on policies that may impact your institution.
Movement Toward Centralized Data Systems
Multiple sessions focused on actions being taken to integrate data and share information across all areas of the institution. In fundraising, that looks like a platform to track donations and gifts to show how they are being used throughout the organization, with data being updated on an ongoing basis, in real time. Having transparent, high-quality data and the ability to access it across offices can mitigate the risk of breeching gift agreements, misusing, or under-utilizing available funds. It can also help with donor engagement as a way for all parties to better track and communicate fundraising progress and milestones.
Further, centralized data systems are a fundamental and critical step toward adoption of artificial intelligence (AI). Once data across offices is managed in one place, AI tools can be deployed to analyze data more quickly and efficiently. Insights from a centralized platform with AI-enabled tools can contribute to more informed decision-making being applied to donor engagement, investments and budgeting. What was clear is how many resources – between providers, software platforms, and tools – are now available to meet your institution where it is in the journey toward more effective and efficient data systems.
Donor Engagement is Critical During Times of Uncertainty
Donors may have specific causes they want to support, but these may not always align with the foundation's top priorities. Finding a way to meet the donor's intentions while keeping the foundation's goals in mind is essential. This alignment is facilitated through open communication and understanding the underlying motivations of donors. Engagement is critical for ensuring that both the donor’s mission and the foundation’s goals can be achieved in ways that feel mutually beneficial. Double down on engagement. Communication with donors becomes even more crucial during periods of uncertainty. Leaders need to be transparent and proactive with donors but also their internal teams. Finding unique ways to create opportunities for their staff and donors to express concerns will ultimately keep them engaged and ensure connectivity during difficult periods.
Foundations are Balancing Independence & Institutional Alignment
University foundations play a unique role: they exist to support their affiliated institutions while maintaining a degree of operational independence necessary to function strategically and effectively. To navigate this dual identity, foundations must clearly articulate their value proposition—not simply as financial arms of the university but as strategic partners and emphasize the impact of their fundraising, investment management, and goals-based investment approach in advancing the broader mission. Foundations must operate as fiduciaries of capital —evaluating not only the financial return on each investment, but balancing risk and reward, and alignment with the institution’s long-term needs and mission. Whether deploying capital into projects or financial markets, foundations must think strategically about every dollar invested and how it advances university priorities. Embedding risk management practices into the Investment Policy Statement (IPS) and continually reassessing risk-reward strategies amid shifting market conditions and institutional needs is key.
Balancing independence with institutional alignment requires strong communication and governance structures. Foundations depend on the university for resources, yet they must retain the autonomy needed to manage investments, assess risk, and generate revenue strategically. Investment portfolios of foundations should be tailored to the specific purpose of the funds they manage. Customizing investment portfolios ensures alignment with donor intent, organizational goals, and long-term institutional strategies. Proactive engagement with senior leadership is key to bridging any gaps and finding the right balance to maintain the foundation’s autonomy while fostering collaboration. Foundations that regularly evaluate their governance models and communication strategies are better positioned to demonstrate impact and reinforce their role as stewards of capital and committed university partners.
Considerations for the Future
As college and university foundations prepare to support institutional agility in response to societal, political and economic changes, several things remain top of mind for the future.
Labor shortages and turnover are emerging as significant challenges for fundraising teams, threatening the consistency and effectiveness of advancement efforts, posing significant challenges for long-term fundraising success. As experienced gift officers and development professionals retire or transition to other sectors, institutions are facing difficulties in recruiting and retaining qualified talent. To address this, institutions must prioritize professional development and training and promotion of more junior employees and explore innovative staffing models that balance in-person and virtual engagement, potentially with the use of VEOs (virtual engagement officers).
Remote/virtual work and engagement have significantly reshaped the landscape of fundraising in higher education, bringing both challenges and opportunities. On one hand, virtual engagement tools, such as VEOs, have allowed college and university foundations to connect with donors more frequently and across broader geographic regions, increasing flexibility and efficiency. Many donors have become comfortable with video meetings and digital stewardship, which has expanded the ways institutions can maintain relationships and share impact stories. However, remote working employees can negatively affect internal collaboration and team cohesion. Institutions are seeking balance between leveraging the convenience of virtual engagement and preserving the personal touch that inspires transformational giving.
Generational giving is reshaping fundraising at colleges and universities, as institutions navigate the differing values, expectations, and behaviors of donors across age groups. While older generations, such as Baby Boomers and Gen X, have traditionally supported alma maters out of loyalty and a sense of duty, younger donors—particularly millennials and Gen Z—are more focused on impact, transparency, and social relevance. They are more likely to give to specific causes or projects rather than to the unrestricted endowment, and they want to see how their contributions directly support student needs, equity, sustainability, or innovation. These shifts require advancement teams to rethink their engagement strategies—leveraging digital platforms, storytelling that humanizes their efforts, and personalized outreach to younger donors. At the same time, institutions must continue to steward long-standing relationships with older donors while preparing for the largest intergenerational wealth transfer in history.
Conclusion
As higher education continues to evolve, college and university foundations must proactively adapt to shifting landscapes in philanthropy, gift trends, and public funding and perception. By staying mission-driven and adaptable, these foundations can help ensure their institutions remain resilient, relevant, and equipped to serve future generations. As stewards of both financial resources and public trust, college and university foundations must position themselves not just as fundraising arms, but as visionary partners in shaping the future of this segment. It is more important now than ever.