Was Kessler Over-Looked On Purpose?

At NC State University, two major personnel searches—one for the Athletics Director and the other for the Provost—are in process, and, curiously enough, University Advancement, the department headed by Mr. Non-Personality and Mr. Persona Non Grata, Nevin Kessler, the Vice Chancellor in charge of raising money from outside sources as well as through an internal tax from University-related foundations, is not represented on either Search Committee.

Some may say this was just an oversight by the person—Chancellor Randy Woodson—making the committee assignments, but according to a source from deep inside the administration, it was purposely set up that way.

The email came late last week: “Want proof that your analysis of Nevin Kessler is being heard? Look at the search committees for AD and Provost. There is no one from development on either committee. Every other major department is represented. Nevin may be feared but he is not respected. In six months, he won't be feared or respected,” the email-author penned.

A quick review of the committees reveals the obvious once the obvious is stated. On each are representatives of the Board of Trustees, Faculty Senate, the Staff Senate, Department of Finance and Business, and the Student Body President (counted as a representative of Student Affairs). On the AD Search Committee are individuals related to NC State but not employed thereof or currently serving in an appointed position, University General Counsel, and athletics-related and/or employed individuals. On the Provost Search Committee are professors, an academic department head, a College Dean, a couple of representatives of Research and Graduate Studies, and one of extension and engagement.

Gosh! That takes care of every department under the Chancellor except for University Advancement and Kessler, the Robin Hood of the University in a weird sort of way. He knows not of how to take from the rich and give to the poor. With his 5% tax, he’s actually taking from the poor—the various University-based foundations—and giving to the rich, his own department which is supposed to be, under his leadership, the be-all and end-all in University fund raising. His lack of ability and disappointment efforts prove that to be untrue.

Missing from those important selection groups are representatives of University Development, Alumni Association, Advancement Services and University Communications, all under Kessler’s Kingdom. Of course, in keeping with his arrogance, Kessler may lay claim to any Alumni or member of the Alumni Association on either panel. Sorry, Nevin. You do not get the benefit of the doubt here.

Especially since at the last meeting of the Alumni Association Board of Directors your 5% tax, passed by and approved for implementation without all the details worked out by the NC State University Board of Trustees, was on the agenda for discussion but for some reason, hopefully soon to be known, was tabled for discussion at a later meeting. Not everyone on that Board is happy with you and your antics. Considering Alumni is or should be your major source of Advancement dollars, you really should be nice to them and not turn them against you, exactly what you and Lynn Daniel did when the two of you convinced your lackey, temporary interim Chancellor James Woodward, to fire Lennie Barton from the Executive Director’s spot there. Thank goodness Daniel’s term on the Alumni Board expires at the end of this year.

And, speaking of the 5% tax, about a month ago, I asked the chair of the BOT to answer some questions. There has been no response directly to the questions, but a response none-the-less: “Sorry, I have really been out of place and busy with business as I do have a real job. I will respond but give me a day or so to make sure I have the latest as this issue is still being sorted out. I can tell you that the 2% came from a request by the development officers of all the colleges and one of them told me personally that they could support it that way,” wrote Lawrence Davenport on May 22.

Still being sorted out? His response: “Please don’t try to read too much in to my ‘sort it out’ comment. It is a done deal as far as BOT is concerned however there is still some discussion around some of the details i.e. how to present it etc.,” he responded two days later. A telephone call soon followed with his apologies for not supplying detailed answers to the questions. He did tell me the BOT member who chairs that related committee was originally against the proposal from Kessler but was convinced enough to agree to it. But, there’s still no lengthy response to the questions several days later. (Read the questions at Taxation Without Complete Explanation.)

The 2% is the bone tossed to the University-based foundations to get them on board, even if they did so kicking and screaming. The way I read his response is that none of the development officers wanted to take part in the tax—none wanted to give up any of their financially successful efforts—but if they had to, getting a 2% rebate was better than getting nothing. From my own conversations with development officers and with those who are close to all of the development officers, very few have much regard or respect for Kessler.

And, maybe neither does Chancellor Woodson. He seems to have over-looked Kessler and University Advancement when making appointments to the search committees for a new Athletics Director and Provost.

Taxation Without Complete Explanation

The long talked about proposed 5% tax on all donations made to anything related to NC State University seems to have been approved by the Board of Trustees. At least that’s what in the draft minutes coming out of the NCSU Board of Trustees meetings of April 15 and 16.

The draft minutes, supplied by the NCSU Office of Legal Affairs as a result of a public records request, must be approved by the BOT at its next meeting, but for all intents and purposes, the tax, which is being called an assessment fee, is a done deal which brings up several questions, which have been asked of those who should know but who are not responding.

But, before the questions are posed in this space, let’s get you to this point in a quick summary. Quoting and paraphrasing from the draft minutes from a report by the BOT Development Committee to the full BOT:

“…the committee was updated on capital fundraising projects and year-to-date fundraising results. Gift receipts are down 9% from last year at this time, and gifts and new commitments are down 16%. Efforts are being made to increase fundraising activity with alumni, and there are over $32 million in solicitations scheduled to occur before the end of the fiscal year.”

“…the committee discussed at length how to fund the staffing and operations needed to prepare the University for its next campaign and also discussed how to successfully implement a gift assessment fee. A task force has been established to review a gift assessment fee, and this task force will make recommendations to the Vice Chancellor of University Advancement (Nevin Kessler) and the Chancellor (Randy Woodson).”

“…given the importance of the decision regarding the assessment fee to the entire University, it would be helpful to Chancellor Woodson to have the support of the entire Board of Trustees.”

At that point in the BOT meeting a motion was made and seconded “to support a one-time gift fee of 5% with 2% going to the unit that attracted the gift and 3% going to the central advancement organization. The motion carried unanimously.”

So, based on those draft minutes and the passing of the motion, questions have been posed to the Chairman of the Board of Trustees and to the Chairman of the Development Committee. Neither has replied. Questions were not posed to Vice Chancellor Kessler, who should know because it’s his policy, because there is no way on God’s Green Earth that he would reply. Here are the questions:

—When does this policy start?

—Does this assessment cover all financial gifts to NC State University and related organizations including the Wolfpack Club (Student Aid Association)?

—Is the fee within the donation or is the donor required to make an additional donation to cover it?

—How does this affect a tax deduction related to the donation, especially if part of the donation is specifically going to support the regular operations of the University and not to the cause for which it is intended?

—Why use the wording that says “with 2% going to the unit that attracted the gift”? Why not just assess 3% of the gift for Advancement?

—Are there any exceptions? For instance, if $3 million is pledged and/or donated to build the clubhouse at the golf course but only if that full amount is applied completely to the project will the stipulation be granted?

—With gift receipts down 9% from last year this time and overall gifts and new commitments down 16%, and with the Advancement office getting more funding to reverse this trend and actually exceed deficit giving, will the Trustees constantly review the efforts of that department to make sure the additional revenue to Advancement is being used properly and profitably?

—In the draft minutes, it is said that “a task force has been established to review a gift assessment fee, and that task force will make recommendations to the Vice Chancellor for University Advancement and the Chancellor.” Is this something different from the motion that authorizes the 5% assessment?

—Does this assessment apply to current pledges pending actual donations?

—How will this be applied to gifts in kind? If some wants to donate benches, tables, and other items to the golf course or another department, how will the assessment be handled?

—Will there be regular reports available to show how many actual dollars are being added to University Advancement and how it is being spent?

The desire of NC State University to raise more money from private funding is very much appreciated, especially in tough economic times and as the North Carolina legislature is working on a budget that reduces funding. Based on annual donations to NC State University, I expect really great things from University Advancement and not just additional staff, desks and computers. I trust that the BOT will keep its eye on the prize.

Hopefully, the BOT did not just take the word of Kessler for the need for the new policy but considered many other avenues for funding that office. Please understand that opposition to this tax has more to do with the person who will have his hand on the money. He’s not credible based on a blatant lie he told last fall. If he lied about something as simple as why he fired Lennie Barton, to what lengths will he go to gain more money for the operation of his department?

That’s another question that needs to be answered. If anyone has that answer as well as answers to the other questions, your response is welcomed. Otherwise, this new policy, this 5% assessment fee, will be taxation without complete explanation.

Cart Before the Horse: PR Spin Before Policy?

Is the proposed 5% tax on all donations to NC State University a done deal? Has Vice Chancellor for Advancment Nevin Kessler, a man not worthy of having NC State University associated with his name, gotten his way? You decide.

An email arrived midday Wednesday. It came from one of my on-campus Deep Throats, one of many who feed my passion for information of what’s happening at NC State University, especially related to Kessler and his drive to tax contributions by 5% to operate his office. No doubt he's a typical a Democrat (with sincere apologies to the Democratic Party), as he knows only how to tax others and not generate a dollar through hard work.

The tax, supposedly if agreed upon by the NC State University Board of Trustees at its meeting in a few days (or maybe it's already agreed to), would not be an add-on to the contributor but a subtraction from money donated for any cause. Kessler and his band of merry men have already written the "public relations" message that will be released if the policy is implemented. The PR spin, full of deep horse manure, came in that email and, in its entirety, it’s presented below. It is written: “All gifts received by the university will be assessed.” There’s no word from anyone if this applies to donations to the NCSU Student Aid Association, Inc., aka The Wolfpack Club.

According to the proposed statement, implementation date would be July 1, 2010. Also, there is no indication if this applies to current un-paid pledges such as my on-going pledge to the Lonnie Poole Golf Course. If it's to be taxed, the University will receive the balance prior to that date just to keep Kessler from getting his greedy, grubby hands on my donation. After that, I’ll have to re-think any and all contributions to NC State until Kessler is no longer there. I believe many others will do the same, and I encourage many others to do the same: Pay up now; withhold later. No matter what you think, as an avid supporter of my alma mater, this is not cutting of my nose to spite my face. This is more about Kessler than the policy. Maybe if more contributors withheld donations, he might leave or be asked to leave. Do unto others, the big book says, and Kessler did unto Lennie Barton what should be done to Kessler.

You might be asking why I feel this way about Kessler. It’s simple. He lied to me in a telephone conversation last fall when he and temporary Chancellor James Woodward fired Barton. Since our initial conversation, I’ve tried to talk to him plenty of times. I called his office and left messages. I 've asked for official documents from his office and been ignored. At the time of my calls, maybe I wanted further explanation to his decision to fire Barton. Maybe I wanted to increase my contribution to the golf course. Maybe I had other good reasons to talk to the person who is supposed to be in fact the chief fund-raiser for the University. But then I understand he prefers not to speak with the "little people" who contribute to NC State. We must be too far below his level. Hah! In any case, a University representative in his position should take the time to talk with an alumnus, one who has supported the University with money and passion much more than he has. Remember, Kessler’s just a hired hand who has moved from job to job every three years or so. He does not have the guts or the courage to talk with me and others with my same concerns. My University should not be represented by someone as sleazy and as gutless as Kessler.

So, here is the text of the PR spin about the tax, if it passes. I have my opinion of the policy. Let me hear from you about it:

Funding Advancement at NC State University
At NC State University, we are known for our position as the largest university in North Carolina with almost 33,000 students from every county in the state and more than 100 countries.

This year we expect more than 18,000 to seek admission to a freshman class that will seat about 4,800. The average cost of tuition and fees for in-state students is just $2,764 per semester making us one of the three “Best Values” in public higher education according to US News & World Report.

We are also recognized for the economic impact we have on the state. Our innovation and research have helped attract more than $336 million in research funding to campus during the past year and for every dollar we receive in state support, we return $8 in total income to North Carolina.

Our 170,000 living alumni are legendary for their pride and passion around the Wolfpack, and every year our graduates pump more than $2.9 billion into the North Carolina economy.

A Challenge from Chancellor Woodson:
As we welcome our new Chancellor, Randy Woodson, to campus, he has charged us to reach higher in all of our efforts around teaching, research, extension and engagement. While we recognize that our gifts and potential are considerable, we also know that we must improve our efforts to raise private dollars if we’re to be successful.

Toward this end, the university is making some changes in our fund raising processes. These changes will align the university with standard practices across the country and prepare us to generate additional private dollars that will be used to fund our priorities and the priorities of our donors.

Our Action Plan:
To achieve our goals, the university must invest in new and improved information services, and research, gift and data processing systems. We must also invest in people.

To help fund these improvements, the university will implement a 5 percent gift assessment beginning on July 1, 2010. The assessment will be divided among the university’s main development office and the college or fund raising unit to which the gift is directed. All gifts received by the university will be assessed.

A significant portion of new funds will be dedicated to the university’s endowment. Increasing the value of this important funding source is vital to the long-term health of NC State. The average value of the endowments of our peer universities is about $1 billion, or more than $25,000 per student. At NC State, the value of our endowment is around $463 million, or $14,000 per student.

We will also pursue other sources of revenue to fund our aspirations -- state funds, endowment fees, etc. -- but the Gift Assessment is a reflection of the national model among colleges and universities. For example, assessments at our peer institutions range from 2 percent to more than 7 percent.

The Outcome of Our Actions:
With the increased funding made possible by additional private donations, we will be able to continue our efforts to enhance the student experience and to provide focus on our research efforts and on the priorities of our donors. By improving our fund raising efforts, the assessment will also leverage the gifts of those who already support the university in a way that will move NC State forward.
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Now, see that "comment" line just below. Click and post. Anonymous comments, especially those in favor of Kessler's desire to steal from the rich to help his less than successful efforts, are encouraged and accepted.