THETHE CAMPAIGN CAMPAIGN FOR FOR SMITH SMITH THE CAMPAIGN FOR SMITH FRONT COVER THE FIVE-POINT CASE FOR FINANCIAL AID Women for the World: The Campaign for Smith will strengthen our generous financial aid program now and for the future, supporting continued academic excellence and diversity and making a Smith education accessible to any talented, qualified woman who seeks it. With a goal of $200 million, financial aid is the largest priority of the campaign. For students today, one of the biggest barriers to pursuing higher education is cost. According to U.S. Census data, the median household income in the United States is just over $50,000, and about 90 percent of families earn less than $150,000 a year. Meanwhile, the cost of attending a top-tier liberal arts college like Smith hovers around $57,000 a year, with figures expected to rise an average of 4 percent annually, according to the College Board. In the face of this, Smith has pledged to continue to meet the demonstrated need of all its students, in essence charging each student only what she and her family can reasonably afford. This is an expensive endeavor, especially as the college tries to control costs while continuing to develop programs that meet the expectations of students today. The Women for the World campaign initiative to raise $200 million toward the financial aid endowment will add nearly $10 million a year to the college’s operating budget, freeing up funds to support other priorities across campus. Here are five reasons to consider this important effort. WITH YOUR SUPPORT, WE WILL Make a Smith education more accessible We want to extend the promise of a Smith education to any talented woman who seeks it, regardless of her ability to pay. A gift to financial aid creates opportunities for amazing women to accomplish great things. MM: For middle-class and continuous economic opportunity, upper-middle-class families, the where it’s possible to work your economic landscape has changed way up. But, sadly, opportunities dramatically. Many families used to are often not available to all. So nance college for their children what nancial aid does is it gets a with their home equity. That’s a broad and very qualied group of source that many families no longer women into an opportunity-rich Most Economically have, following the downturn of environment, whether those MostDivers Economicallye Top-Ranked Diverse 2008. This, coupled with the rising opportunities are educational, a 1Top-RankedLiberal Arts C Liberalolleges Arts Colleges cost of tuition and fees, has cre- network of people, a network of PercentagePercent of Un ofd eUndergraduatesrgraduates Receiving Pell Grants ated a whole new picture, one that employers or simply the people Receiving Pell Grants presents complicated decisions you live with. for the college and a real need One other really important Smith College 25 The federal Pell Grant program provides to be careful about its nances in thing to remember is that for many need-based grants to help low- and Vassar College 23 general, all while maintaining our women Smith is less expensive moderate-income individuals pay for a commitment to access. That is the than most other colleges and Amherst College 22 college education. Of the top 25 ranked reason Smith would be enhanced universities; less expensive, even Bryn Mawr College 22 liberal arts colleges in the country, Smith has by having a greater portion of its with a $57,000 price tag. And that is the highest percentage of students receiving Grinnell College 21 nancial aid budget endowed. The because of the aid we offer. So the federal Pell Grants. campaign’s nancial aid goal of idea that for less money, because Wellesley College 21 $200 million will help us do that. of aid, you can get more oppor- ■ Nearly 20 percent of Smith students are tunities is really extraordinary and Williams College 20 the first in their families to go to college. JS: I want to add to what Maureen makes us more competitive. Pomona College 18 ■ Among the class of 2017, 94 women just spoke about. We all want Wesleyan University 18 are the first in their families to attend to think of the U.S. as a land of MM: We don’t want to forget, ei- ther, that this is all in the service of Macalester College 17 college. women’s education and women’s achievement. It is so worth the FromFrom ddataata c ocompiledmpiled by Uby.S. U.S.News News funding that nancial aid provides && WorldWorld R Report,eport, 20 12010–110–11 to nd the talent wherever it is and to help women nd their power in The federal Pell Grant the world. program provides need- based grants to help AS: Endowed funds ensure that low- and moderate-income a certain portion of our budget is individuals pay for a college invested in nancial aid, and that education. Of the top 25 gives us, as an institution, exibility ranked liberal arts colleges to shift priorities as they change. in the country, Smith has We really want to be sure that we’re the highest percentage of preserving the mission of nancial students receiving federal aid into the future. We can’t fully Pell Grants. envision future economic changes, so having exibility is critical. JS: Endowment ensures that Smith remains among the group James Shulman is president of of institutions that can continue to ARTstor, a nonprofit that provides provide an extraordinary educa- software, services and more than tion. Inevitably, there will be institu- 1.3 million images to colleges, tions that can afford to do more, universities and museums around to offer more, and then there will the world. He has an array of be places that can’t, that will drop experience writing about educa- programs and cut support. When tional policy issues and nonprofits. people consider gifts to the nan- Currently, he is chair of the Smith cial aid endowment, they have to College Board of Trustees’ ask, “Do I want Smith to continue Campus Life Committee. to be exceptional?” If they don’t, there will be other alternatives for needy students. There will be a lot 2 DRAFT bitious young women eager, as Sophia Smith trusts designated for student aid, and from envisioned, to increase their “power for good.” gifts and grants for scholarship support. The The campaign focuses on financial aid and a slow pace of the economic recovery contrib- range of investments under the broad theme of uted to a 6 percent increase in financial aid reimagining the liberal arts. over the prior year. The college’s discount rate, which compares institutional scholarships to Undergraduate Discount Rate Statements of Financial Position comprehensive fee revenue, increased to 39.2 Scholarships/GrossWITH YOUR Comprehensive SUPPORT, WE WILLCollege assets grew approximately $144 mil- percent and the average institutional award to Fee Revenues, in percentages lion during fiscal year 2013, due primarily to undergraduate students increased to $21,300 earning a 14.3 percent investment return on for the year. 39.2 long-term investments. Liabilities declined by 40 38.1 37.0 37.2 nearly $11 million due to an increase in the Investments 35.8 35.9 fair market value of swaps on the college’s vari- The market value of the college’s endowment 35 Support diversity inable its rate many debt. dimensions was $1.56 billion on June 30th. The college’s investment return of 14.3 percent reflected the 30 Financial aid allows the collegeStatements ofto A ctivitiesattract a remarkably strong performance of investment markets accomplished and diverseUnrestricted group net of assets students, increased by making $45.4 during the year. While Smith’s returns fell million in 2012–13 largely due to the positive short of the portfolio’s one-year benchmark 25 each student’s learning returnexperience on the college richer’s investments. and more Smith’s (14.3 percent versus 15.4 percent), the college’s rewarding. revenue sources are diversified, with 46 percent returns exceeded the benchmark over five-year 20 of revenues coming from student income net (6.1 percent versus 5.6 percent) and ten-year A giftof financial to financial aid; 37 percent fromaid investment is (10.3 percent versus 8.1 percent) periods. 15 return; 11 percent from gifts; and 6 percent The long-term investing horizon for the an investmentfrom other income sources. in Smith’s endowment allows for a large allocation to Sixty percent of Smith’s 2,673 students equity-oriented strategies where the potential 10 sustainedreceive need-based excellence. grant aid as part of for long-term capital appreciation exists. Other the college’s commitment to providing an strategies are also used to reduce risk and 5 outstanding education to qualified women of volatility while optimizing performance. At June all economic backgrounds. The college meets 30, 33 percent of the portfolio was invested in 0 eligible students’ demonstrated need through a global equity, 33 percent in private partner- 2008 2009 2010 2011 2012 2013 combination of grants, loans and work-study, ships, 25 percent in alternative equity, 6 percent based on an application process that considers in fixed income and 2 percent in cash and cash CostCost vs. vs. Price Price of a of Smith a Smith Education Educationfamily income and assets. The college expended equivalents. 2012–13 $56.9 million on undergraduate financial aid The board of trustees approves the annual 22012–13 endowment spending level and its investment through income from endowment funds and committee oversees investment strategy and 70,000 Every Smith student, regardless of her $71,500 financial situation, receives a significant Cost per undergraduate subsidy from the college toward the real 60,000 student cost of her education.