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05-16-2007, 10:52 AM
http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/051707dnmetutsouthwestern.750752bf.html
$50M gift comes with a catch
10:01 AM CDT on Wednesday, May 16, 2007
BY HOLLY K. HACKER / The Dallas Morning News
hhacker@dallasnews.com
T. Boone Pickens, the legendary oilman and Dallas billionaire, has an unusual offer that the University of Texas Southwestern Medical Center isn’t refusing.
Mr. Pickens is giving the Dallas campus $50 million today, with a hefty catch: Over the next 25 years the school must turn that gift into $500 million. Should it fall short, UT Southwestern can keep the initial $50 million – but must fork over the balance to Oklahoma State University, Mr. Boone’s alma mater, for student scholarships.
T. Boone Pickens Officials at the UT System and Southwestern insist they’ll meet the challenge and, no offense to college students across the Red River, every cent will stay in Texas. Why else would they have accepted the unconventional terms?
“Unless the country goes into a deep depression, I think it should be readily doable,” said Kern Wildenthal, UT Southwestern’s president.
Mr. Pickens agreed. “Can you see UT writing a check to OSU for anything?” he joked.
The maverick philanthropist is giving another $50 million, with the same provisions, to UT’s M.D. Anderson Cancer Center in Houston. It’s the largest single gift in Anderson’s history and ties for the largest one to UT Southwestern.
Each campus must hit the half-billion mark before it can spend any of the money. If — or when — that happens, the money can be spent as the medical campuses best see fit.
“I predict that although we’ll have made tremendous strides over 25 years, we’ll still have problems,” Dr. Wildenthal said, be it in treating Alzheimer’s disease, cancer or some new infectious disease. UT Southwestern’s two earlier $50 million gifts were from Dallas investor Harold C. Simmons and his wife, Annette, in 2005 and from anonymous donors in 2003.
Mr. Pickens is giving his money through his new foundation. UT Southwestern’s share will go to its foundation for investment. With a 10-percent annual return, the money would grow to $500 million within 25 years. The foundation has routinely exceeded that return rate over the past decade, Dr. Wildenthal said.
Those who track private gifts to higher education say such an arrangement is definitely novel.
“That’s interesting. I haven’t heard of anything quite like that,” said Rae Goldsmith of the Council for Advancement and Support of Education.
Some people donate money on the condition that the recipient raise an equal amount. But for a university to give up its investment earnings if it misses a fundraising goal? Ms. Goldsmith said that’s a new one to her.
The arrangement could pose problems if a university sought other donations to reach the half-billion mark, then didn’t get to keep the money.
“Certainly if I give to my alma mater, I don’t expect my alma mater to turn around and give the money to somebody else later,” Ms. Goldsmith said. “Donors give for a purpose.”
Mr. Pickens has given to both UT institutions before and he served on an Anderson board from 1977 to 1986.
“I’ve just been fortunate to have the money to give them,” he said.
That would be an understatement. Forbes magazine ranks Mr. Pickens as the 103rd richest American, with a net worth of $2.7 billion. He’s shared much of that wealth, giving nearly half a billion dollars to various causes from 2003 to 2006, according to The Chronicle of Philanthropy.
Those gifts include a $165 million donation for OSU to upgrade the football stadium that bears his name and build other athletic facilities. Some critics said such a fortune – the largest gift ever to an NCAA athletic program – should have gone instead to academics or another more worthy venture.
Granted, many Texans consider football a noble cause. But UT officials predict the Pickens money will have a big impact on something more important: the state’s health needs.
“This really sets the stage for Texas to assert itself as a world leader in health care, health research and health education,” said Randa Safady, a UT System vice chancellor.
The 25-year term, as donations go, is also unusual. A typical university fundraising campaign lasts seven years, sometimes as much as 10.
For starters, a quarter-century of inflation will whittle away the value of $50 million. And not to be morbid, but what if today’s donors and recipients aren’t around then?
Mr. Pickens, who’s 78, said he’ll at least get a sense of whether UT Southwestern and M.D. Anderson are on track to make their goals.
“They’ll do it. There’s no question they’ll do it,” he said.
Dr. Wildenthal, 65, has led UT Southwestern for 21 years. To him, 25 years isn’t that long for the medical campus to wait, especially given all the possibilities the donation brings.
“I’d love to still be around,” he said. “And hopefully I’ll be around watching someone else spend this money.”
$50M gift comes with a catch
10:01 AM CDT on Wednesday, May 16, 2007
BY HOLLY K. HACKER / The Dallas Morning News
hhacker@dallasnews.com
T. Boone Pickens, the legendary oilman and Dallas billionaire, has an unusual offer that the University of Texas Southwestern Medical Center isn’t refusing.
Mr. Pickens is giving the Dallas campus $50 million today, with a hefty catch: Over the next 25 years the school must turn that gift into $500 million. Should it fall short, UT Southwestern can keep the initial $50 million – but must fork over the balance to Oklahoma State University, Mr. Boone’s alma mater, for student scholarships.
T. Boone Pickens Officials at the UT System and Southwestern insist they’ll meet the challenge and, no offense to college students across the Red River, every cent will stay in Texas. Why else would they have accepted the unconventional terms?
“Unless the country goes into a deep depression, I think it should be readily doable,” said Kern Wildenthal, UT Southwestern’s president.
Mr. Pickens agreed. “Can you see UT writing a check to OSU for anything?” he joked.
The maverick philanthropist is giving another $50 million, with the same provisions, to UT’s M.D. Anderson Cancer Center in Houston. It’s the largest single gift in Anderson’s history and ties for the largest one to UT Southwestern.
Each campus must hit the half-billion mark before it can spend any of the money. If — or when — that happens, the money can be spent as the medical campuses best see fit.
“I predict that although we’ll have made tremendous strides over 25 years, we’ll still have problems,” Dr. Wildenthal said, be it in treating Alzheimer’s disease, cancer or some new infectious disease. UT Southwestern’s two earlier $50 million gifts were from Dallas investor Harold C. Simmons and his wife, Annette, in 2005 and from anonymous donors in 2003.
Mr. Pickens is giving his money through his new foundation. UT Southwestern’s share will go to its foundation for investment. With a 10-percent annual return, the money would grow to $500 million within 25 years. The foundation has routinely exceeded that return rate over the past decade, Dr. Wildenthal said.
Those who track private gifts to higher education say such an arrangement is definitely novel.
“That’s interesting. I haven’t heard of anything quite like that,” said Rae Goldsmith of the Council for Advancement and Support of Education.
Some people donate money on the condition that the recipient raise an equal amount. But for a university to give up its investment earnings if it misses a fundraising goal? Ms. Goldsmith said that’s a new one to her.
The arrangement could pose problems if a university sought other donations to reach the half-billion mark, then didn’t get to keep the money.
“Certainly if I give to my alma mater, I don’t expect my alma mater to turn around and give the money to somebody else later,” Ms. Goldsmith said. “Donors give for a purpose.”
Mr. Pickens has given to both UT institutions before and he served on an Anderson board from 1977 to 1986.
“I’ve just been fortunate to have the money to give them,” he said.
That would be an understatement. Forbes magazine ranks Mr. Pickens as the 103rd richest American, with a net worth of $2.7 billion. He’s shared much of that wealth, giving nearly half a billion dollars to various causes from 2003 to 2006, according to The Chronicle of Philanthropy.
Those gifts include a $165 million donation for OSU to upgrade the football stadium that bears his name and build other athletic facilities. Some critics said such a fortune – the largest gift ever to an NCAA athletic program – should have gone instead to academics or another more worthy venture.
Granted, many Texans consider football a noble cause. But UT officials predict the Pickens money will have a big impact on something more important: the state’s health needs.
“This really sets the stage for Texas to assert itself as a world leader in health care, health research and health education,” said Randa Safady, a UT System vice chancellor.
The 25-year term, as donations go, is also unusual. A typical university fundraising campaign lasts seven years, sometimes as much as 10.
For starters, a quarter-century of inflation will whittle away the value of $50 million. And not to be morbid, but what if today’s donors and recipients aren’t around then?
Mr. Pickens, who’s 78, said he’ll at least get a sense of whether UT Southwestern and M.D. Anderson are on track to make their goals.
“They’ll do it. There’s no question they’ll do it,” he said.
Dr. Wildenthal, 65, has led UT Southwestern for 21 years. To him, 25 years isn’t that long for the medical campus to wait, especially given all the possibilities the donation brings.
“I’d love to still be around,” he said. “And hopefully I’ll be around watching someone else spend this money.”