A sluggish economy has caused overall gift income to the ISU Foundation to decrease by about $7 million in comparison to the first quarter last year.

The overall gift income was down, primarily due to a decrease in pledge commitments. However, cash receipts – funds available for immediate expenditure and investment – from July 1 to Sept. 30 were about $4 million ahead of last year at this time, said Tom Mitchell, president of the ISU Foundation.

“We are only four months into our fiscal year, and November and December are typically our strongest months,” said Barb Boose, ISU Foundation communications manager. “During these first four months, we experienced the weakest economy in the past 10 years and the most catastrophic terrorist act in the history of our country.”

Mitchell said the Foundation is being sensitive to donor concerns about the war on terrorism and the economy, but it is positive donation amounts will rise.

“The shortfall is entirely attributable to the downturn in the U.S. economy,” said President Gregory Geoffroy, “which has caused many potential benefactors to defer making major giving commitments until their net worth recovers as a result of the expected recovery of the U.S. economy.”

To help increase donations, Geoffroy announced the Investing in People fund-raising initiative at his October installation ceremony. The money from the campaign will go to undergraduate scholarships and graduate fellowships and assistantships. Money also will go to endowed faculty positions through interest earned on a principal amount that is left untouched.

“The Investing in People initiative resonates very well with potential benefactors that we have discussed it with,” Geoffroy said. “And it should further energize our private fund-raising efforts.”

In recent months, Mitchell said, the Foundation has received millions of dollars for agriculture scholarships, faculty positions in engineering and business, equipment in chemistry and teaching facilities.

The Foundation’s development staff is working with university deans, directors and faculty to communicate Iowa State’s needs and goals with potential donors, Mitchell said.

“While private giving is always somewhat unpredictable, and certainly the times we’re living in are even more uncertain,” he said, “we are confident that alumni and friends will continue to support Iowa State at the high levels we’ve seen in the past.”