The USA education and community foundations at hard times

AT HARD TIMES WITH COLLAPSING RESOURCES, USA COLLEGES AND UNIVERSITIES HAVE MORE LIABILITIES, HIGHER DEBT SERVICE AND INCREASING EXPENSE WITHOUT THE REVENUE OR THE CASH RESERVES TO BACK THEM UP. MANY OF THEM HAVE OFTEN OPERATED ON THE ASSUMPTION THAT THE MORE THEY BUILD, SPEND, DIVERSIFY AND EXPAND, THE MORE THEY WILL PERSIST AND PROSPER. BUT THEY HAVE BECOME OVERLEVERAGED WITHOUT HAVING BEEN SUPPORTED BY ENOUGH REVENUE DIVERSIFICATION. TUITION FEES HAVE INCREASED, COMPETITION FOR GRANTS HAS BECOME PARTICULARLY KEEN BUT THEIR LONG-TERM DEBT HAS ALSO BEEN INCREASING AT AN AVERAGE RATE OF APPROXIMATELY 12% PER YEAR. THE FOUNDATION CENTER DATABASE REVEALS THAT IN 2010 THE TOP USA 50 FOUNDATIONS SPENT NEARLY $983-MILLION ON SCHOOLS. THE SAME FOUNDATIONS GAVE SLIGHTLY MORE THAN A BILLION DOLLARS TO HIGHER EDUCATION. AMONG THEM COMMUNITY FOUNDATIONS HAVE BEEN AN IMPORTANT PARTNER OF USA EDUCATION FOR DECADES AND THEIR ROLE HAS CHANGED AND EVOLVED. AT THE BEGINNING IT WAS A PURE GRANT-MAKING ACTIVITY. IT THAN EVOLVED TO PARTNERSHIPS AND INNOVATIVE STRATEGIES LIKE VOUCHERS OR CHARTER SCHOOLS. IT BECAME ALSO POSSIBLE THAT COMMUNITY FOUNDATIONS POOLED THEIR EFFORTS AND RESOURCES IN A COMMON NETWORK WITH OTHER FOUNDATIONS, PUBLIC ADMINISTRATIONS, CORPORATION OR INDIVIDUAL DONORS IN ORDER TO COPE WITH NEEDS OF TERRITORIES, WIDER THAN A COMMUNITY TOO. COMMUNITY FOUNDATIONS ARE TODAY A MAIN COORDINATING AND ORIENTING STAKEHOLDER OF BOTH THE DEMAND AND THE SUPPLY OF PROFESSIONAL SKILLS, ACCORDING TO THE COMMUNITY KEY-SUPPLY-CHAINS. THIS IS ESPECIALLY AT HARD TIMES WHEN ECONOMIES NEEDS TO BE SUPPORTED AND TARGETED TO EFFICIENT BUSINESSES. THANKS TO A K-MEANS-CLUSTERING WE CLASSIFY THE BIGGEST (2010’S TOTAL REVENUES) 100 USA COMMUNITY FOUNDATIONS AND WE PROFILE THEM ACCORDING TO FINANCIAL PERFORMANCES AND PHILANTHROPIC BEHAVIOURS. 5 CLUSTERS ARE SIGNIFICANT AND THREE MAIN BEHAVIOURS ARE LEADING: THE GRANT-MAKER, THE NETWORKER AND THE PARTNER ACCORDING TO THEIR FITTING TO COMMUNITY NEEDS. DOWNLOAD PDF