The investigation into President Benjamin Ladner's spending of school money won't dent fundraising, according to AU officials and donors, but some think the probe raises questions about how money is managed elsewhere in the university.
"There's no question the leadership of the institution is important in fundraising, but they're only a conduit for the institution they represent," said Al Checcio, vice president of University Relations. "[Donors are] not supporting an individual ... it's AU they're supporting."
"While they're concerned, it's nothing that's going to dampen their enthusiasm about AU."
Steve Gaenzler, '92, a member of the Alumni Steering Committee, said it shouldn't seriously affect how alumni donate, but some might be wary of money management at AU.
"People may question that it bubbles down to the way the school spends the money people donate," he said. "The risk is that alumni view this as not a localized problem, but a widespread problem."
Lily Qi, also a member of the Alumni Steering Committee, is concerned about the message sent by Ladner's suspension, which was reported by the Washington Post and other news outlets. It was also mentioned on the Chronicle of Philanthropy's Web site.
"Certainly, the university should not tolerate abuse of power and should hold everyone accountable...but in Ladner's case, an internal investigation would have been more appropriate," Qi said in an e-mail.
"Suspension definitely hurts his credibility in the public's eyes and if the university decides to keep him afterwards, it would also hurt his reputation."
Despite her concerns, Qi plans to continue donating to AU. She believes most alumni choose to donate based on their experience with the university and the value of their degrees, rather than the president's conduct.
Acting President Neil Kerwin declined to comment on what effect the investigation could have on fundraising, but he told members of Student Government at a Q&A session Wednesday that "anyone who's president must see fundraising as his or her primary function."
Don Myers, vice President of Finance and university Treasurer, did not return several phone calls and an email.
Students working at the Phonathon were instructed to stop calling alumni for several days after the Washington Post reported the investigation July 30 and after Ladner's suspension was announced Aug. 24.
They received a release from Checcio describing the information they could discuss with alumni. The memo described little more than the Today@AU email sent Aug. 1.
"The review findings or any wrongdoing discovered will not affect the university's financial position and strong academic standing," Checcio said in the memo.
"We've only been authorized to say so much to alums," said Summer Carson, a Phonathon supervisor and senior in the School of International Service.
Phonathon has seen no decrease in donations due to the investigation and only about five alumni have asked about it, Carson said.
More than 20 percent of donations in fiscal year 2005 came from alumni, a record participation. The university received donations from more than 14,000 alumni, up from about 7,200 in 1999, according to the AU web site.
The fiscal year closed in May with more than $17 million from donors toward its $200 million A New AU campaign, which began in October 2003. The university has raised more than $106 million toward its goal.
The campaign is the largest in the school's history and helps fund endowments, construction, scholarships and other improvements. When Kerwin met with SG members, he highlighted the need for large donations in projects to enhance the School of Communications and School of International Service.
Kate Thomson, '01, said she donates to specific programs in the School Of Communication but not more general AU campaigns. She's been following the investigation since a fellow alumnus sent her a Post article about it.
"I was kind of surprised to hear about the official probe, but then again not so surprised, because there were rumors about Ladner spending too much money when I was at AU," Thomson said in an email. "But I don't think anyone mentioned personal expenses, we were generally concerned about how much was spent on flowers when the library seemed to contain old books."
Ruth Brown, '97, said she hasn't donated to AU recently and the Ladner probe won't affect her decision to make a contribution in the future.
"I don't necessarily think the investigation of President Ladner indicates that there is wrongdoing in other parts of the university," Brown said in an email. "It might not be a bad idea, however, since there is so much money involved in the running of a major educational institution ... to look more closely at how money changes hands and where it ends up."
Ilene Zatkin-Butler, who sponsored the eponymous garden next to Bender Arena, declined to comment. Cyrus Katzen, who with his wife Myrtle contributed $15 million to build the Katzen Arts Center, also declined to comment at this time.
Ultimately the Board of Trustees' Audit Committee oversees the president's spending, but "typically that's an operational question" handled by the administration, said Mark Huey, Ladner's assistant and a liaison between the president's office and the board.
The committee is "more at a policy-setting level and looking at the overview and the future of the university" than a body that monitors the president's individual expenditures.
The board reviews Ladner's performance and decides his compensation annually in closed meetings. He makes the second-highest salary among D.C. area private university presidents, The Eagle previously reported. His base salary was $633,000 for 2003-04, according to the Post.
