The Chronicle

Issue date: 11/21/08 Section: News
Last update: 11/21/08 at 5:52 AM EST

Aubrey McClendon

Perhaps no donors are as ubiquitous on campus recently as Aubrey and Katie McClendon, Trinity '81 and '80, respectively.

Their gifts, totalling $16 million, have helped to build McClendon Tower and the West Campus Plaza, funded an organ for the Divinity School's Goodson Chapel and are refurbishing one of the Chapel's huge organs. Their names also adorn a commons at the Office of Undergraduate Admissions.

As major givers, the McClendons represent a trend in giving at Duke: Even as total cash gifts have increased in the last few years, the number of donors has decreased. Downturns represent a special challenge for universities like Duke, as well as other nonprofits-they rely heavily on donors, who are subject to market conditions.

McClendon, president and chief executive officer of natural gas giant Chesapeake Energy, found himself forced to sell most of his 33.5 million shares in Chesapeake because of leveraged buying when share prices plummeted.

In July, those stocks were worth around $2 billion, the vast majority of his estimated $2.1 billion value. He made about $569 million on the sale, losing more than $1.4 billion.

McClendon told the Wall Street Journal that he has "other resources" and would be fine. But his loss-and the potential for major losses among other big donors-is cause for concern among the University's fundraisers. Neither McClendon nor Chesapeake responded to request for comment in time for publication.

"Of course it concerns us," said Peter Vaughn, executive director of alumni and development communications. "It concerns us for Aubrey and Katie's sake, first of all.... That said, Aubrey is a very resilient person. In terms of his loyalty and attention to Duke, that's never been an issue."

Vaughn declined to say whether McClendon had been planning any major gifts to Duke.

Although donations take a hit, the needs of the University remain static or even grow: Salaries must be paid, services must be provided and capital projects already underway must continue. On top of this, financial aid demand is likely to increase when the economy worsens, squeezing budgets even more.

"What it comes down to and the approach that we're taking is that the needs of the institution are still here," said Jeff Coates, associate dean for alumni and development at the School of Law. "The strategy is really quite simple and continues on our course: We're going to do everything we can do to enhance our pledges and our outright gifts to the annual fund."

Continued...

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