Impact of Scandal on Penn State Fundraising Unclear
Impact of Scandal on Penn State Fundraising Unclear
Although at least one major Penn State donor is said to be reconsidering his support for the university, it remains to be seen how, or even if, the recent child sex abuse scandal involving former assistant football coach Jerry Sandusky will affect the school's fundraising, the Associated Press reports.
Following the release last week of a disturbing report by former FBI director Louis Freeh which found, among other things, that the university's board "failed in its duty to make reasonable inquiry into these serious matters and to demand action by the President," George Middlemas, a Chicago-based venture capitalist who had been a staunch supporter of former head football coach Joe Paterno and planned to leave half his considerable net worth to Penn State upon his death, said he was reconsidering his decision. "I happen to believe that giving money to this particular board of trustees and this particular president is flushing it down the toilet," Middlemas told the AP. "The longer these bozos stay in their position, the easier it's going to be for me to sign the paperwork that's in process right now."
Not all Penn State donors feel the same, however. Lloyd Huck, a retired Merck & Co. chairman and former president of the school's board of trustees, told the AP that while the scandal was "a terrible situation," he remains a committed supporter of the university. And former Penn State defensive back Bob Capretto, now a real estate investor, said that despite the Freeh report's findings, he will continue to support the university financially in the future. Other donors, including Gakeb Dreibelbis, a State College developer, aren't so sure. And if he does, said Dreibelbis, his donations should not be used to help pay the $60 million penalty levied against the university by the NCAA last week.
Still, institutions of higher education don't always suffer financially after a scandal, the AP reports. Indeed, Penn State recently reported that its $2 billion For the Future campaign had reached the $1.6 billion mark ahead of schedule. "I can tell you I've been on the phone nonstop for a week," said Ira Stolzer, a member of the fundraising campaign team," and the single theme is: how can we help?"
| 
