Trustees Focus on Fund Raising and Finances

Goal and name set for upcoming capital campaign

November 07, 2008 The business portion of Leaders’ Weekend focused not only on the immediate and speculative effects of the global economy, but on long-term planning to secure Andover’s future.

During its meetings, the Board of Trustees made several decisions related to the upcoming fund-raising campaign, including the approval of a $310-million goal and a full slate of fund-raising priorities in support of students, faculty, programs, and campus facilities. As of Oct. 31, the campaign nucleus fund stood strong at $164 million. The name, “The Campaign for Andover, Building on The Surest Foundation,” acknowledges the lasting impact of the previous campaign (Campaign Andover, The Surest Foundation) as well as new philanthropic momentum that will bridge generations and ensure an even stronger Andover.

Trustees were resolute in their decision to move forward with the campaign, even in uncertain economic times. With sights set on long-range goals, said Tang, the endowment becomes ever-more critical. (The campaign goal for endowment is $150 million.) There may be reason to slow the pace, he added, but this is not a time to abandon sound planning. In fact, he sees the financial challenge as a rallying cry to reinvest in faculty, staff, and students.

In terms of immediate action that would lessen the strain on the current fiscal year budget, the board consulted broadly on several possible measures and asked the senior administration to continue scrutinizing the bottom line. Steve Carter, CFO/COO, outlined a plan that would call for mid-year adjustments and will work with budget managers in the coming weeks to achieve new savings. In addition to addressing FY09, the trustees have asked the administration to work with the finance committee to plan for FY10 by looking at all major expense and revenue lines for potential savings.

In other business:

• Amy Falls, chief investment officer, outlined the impact of recent market volatility on Andover’s endowment. With abrupt shifts still plaguing Wall Street, the market will no doubt affect the Academy’s short-term planning; at the same time, she remains confident in the Academy’s long-term investment strategy. “We come at this (crisis) from a position of strength,” said Falls. “This is the time when it really counts and experienced people make a difference. Our managers are the best in the business.”

• The admission and financial aid team reported a strong start to the 2009-10 season. According to Jane Fried, dean of admission, her team is responding to the global economy with a strong, broad-based recruitment plan, which includes the full support of Andover’s need-blind admission policy. Preliminary applications are up, compared to the same time last year, as are attendance at events and interviews on campus.

• The board accepted the FY08 operating results and audited financial statements.

• The board received reports or heard presentations from the following groups: the Faculty Compensation Committee, The Sustainability Steering Committee, College Counseling, and Technology.