BRANDEIS UNIVERSITY

Mission: “Founded in 1948, Brandeis University (BU) is one
of the youngest private research universities, as well as the
only nonsectarian Jewish-sponsored college or university in
the country. As a research university, Brandeis is dedicated
to the advancement of the humanities, arts and social, natural
and physical sciences. As a liberal arts college, Brandeis
affirms the importance of a broad and critical education in
enriching the lives of students and preparing them for full
participation in a changing society, capable of promoting
their own welfare, yet remaining deeply concerned about the
welfare of others.”
(Charity Navigator Website: http://www.charitynavigator.org)

FINANCIAL EFFICIENCY EVALUATION:
According to Charity Navigator, BU has an overall rating
of four stars (four stars is the highest rating.) Charity
Navigator provides the following breakdown of BU based on
990 tax returns through fiscal year 2008:
Overall Rating ****
Organizational Efficiency: Program Expenses 87.4%
Administrative Expenses 9.0%
Fundraising Expenses 3.4%
Fundraising Efficiency $0.11
(BU spends $0.11 to raise $1.)
Efficiency Rating ***

Organizational Capacity:
Primary Revenue Growth 6.0%
Program Expenses Growth 6.6%
Working Capital Ratio (years) 2.65
(BU can sustain itself for 2.65 years
without generating new revenue.)
Capacity Rating ****

Organizational Capacity refers to an organization’s
ability to sustain itself over time. Charities that exhibit
consistent revenue and expenses growth are more likely
to sustain its programs and services over the long haul.

Compensation for its President, Jehuda Reinharz was $534,528 which was 0.16% of expenses. For purposes of comparison, compensation for Ruth Messenger, the President of the American Jewish World Service, was $218,625 which was 0.76% of expenses. Percentagewise, these are very low compensation figures for a nonprofit president.

Analysis of Form 990 Tax Return:
As of fiscal year 2009 (2008 990 tax return), BU had total net
assets of $771,801,174 ( Part X - Balance sheet line 33) in
FY 2009 down from $945,752,008 in FY 2008 and total assets
of $1,155,725,455 (Part X -Balance sheet line 16) down from
$1,243,898,599, in FY 2008. BU had endowment funds of
$558,516,000 in FY 2009 (Schedule D, Part V, Endowment
Funds) down from $712,132,000 in FY 2008. It had 17 donor
advised funds with $6,451,072 in aggregate contributions and
$5,981,135 in aggregate grants made from those funds during
the year; the aggregate value of all donor advised funds at the
end of the year was $2,202,928 (Schedule D, Part I.)

FINANCIAL TRANSPARENCY EVALUATION:
According to our PET (Philanthropy Economic Transparency)
Index, this blog’s financial transparency rating
system of information provided by the nonprofit on its
own website, BU has a transparency rating of 1 star
(6 stars is the highest rating.) Of the following six
items, BU provides one item of the following metrics on its
website. Item #5 - operating expenses can be found in the
University’s Budget in the Office of Budget and Planning
section under Links in the Sites A-Z Directory under
Finance and Administration.

1) The nonprofits most recently filed 990 tax return
2) The nonprofit’s audited financial statement
3) The nonprofit’s annual report
4) The nonprofit’s investment philosophy
5) A breakdown of the nonprofit’s expenses
6) The nonprofit’s rating from Charity Navigator

Discussion:
As of fiscal year 2009, Brandeis was a financially
efficient nonprofit with excellent organizational capacity.
The recent financial turmoil on Wall Street has also affected the relationship between donor and non-profit. The turmoil has caused donors to become uncertain and more selective in giving to non-profits. Non-profits that are transparent about their finances will regain the lost trust of its donors sooner than those non-profits that are not transparent about their finances. Brandeis discloses very little financial information on its web site. It should provide
an audited financial statement, its annual report and its most
recently filed 990 tax return on its website. Brandeis has
over 46,000 alumni and only 17 donor advised funds. A
duel strategy of financial transparency and better marketing
of its donor advised funds will result in increased giving
to Brandeis.