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A GOOD BUY?

Radcliffe's uncertain finances may scare away a strong Harvard

But this independence may change in the futurewhen, without broad alumnae donations, Radcliffeneeds Harvard's funds.

Last year, Radcliffe received 28 percent of itsoperating budget from gifts and bequests. As anallied institution that does not graduatestudents, Radcliffe would eventually no longerhave alumnae, and these sources of income wouldbegin to dwindle, coming only from those who wouldsupport a center for studies in gender.

But Radcliffe will probably no longer have someof the programs it presently offers. Currently,Radcliffe spends $12.3 million--or 55.8 percent ofits budget--on programs and activities.

Sources describe one financial situationadministrators are considering.

Radcliffe would retain its endowment to fundits new incarnation. But Harvard would take overRadcliffe's management and pay the differencebetween its endowment income and the money theinstitutes would need to survive. The newRadcliffe would survive from income from theendowment and donations, with fewer overheadexpenses from development.

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Harvard, as it prepares to negotiate withRadcliffe, evaluates the institution as it would acompany it is planning to buy.

University administrators focusing onRadcliffe's operating budgets see a blurrypicture. Its alumnae giving rates fluctuate; itsendowment grows sporadically.

In other words, Radcliffe's future finances arenot clearly defined. It may not have a certainpool of alumnae donations. It is taking largerchunks out of its endowment than is usuallyaccepted.

Harvard is left wondering why it--a collegemore financially successful than the norm--shouldmerge with an institution that has not reached thesame financial heights.CrimsonNicholas C. FoxHow Radcliffe Spends Its Money Radcliffeexpenditures for the year ended June 30, 1996

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