What's Philanthropy and How Do Donations Work?

Author Audrey Soemarno '27 is a Media & Communication major and works as a student assistant at JWU, contributing to JWU News.

What's Philanthropy and How Do Donations Work?

Did you ever wonder how Johnson & Wales University is able to provide student scholarships or academic opportunities? We don’t always understand the financing that goes on behind the scenes, but it stems from the inner workings of philanthropy and donations within the university. I had the pleasure of speaking with Vice President of Advancement & Alumni Relations Michelle Mattox and Vice President of Finance Danielle Santamaria to learn more.

VP Mattox gives an overview of what her role entails: “My job is external facing in the sense that we work with JWU alumni, parents, donors and friends to have them invest in and give their philanthropy to the university. So, we're in a relationship-building business in the sense that we are working to identify who wants to be engaged, how they want to be engaged and where can they give back to support our students, our faculty and overall, our university community.”

VP Santamaria shares, “I provide strategic leadership and oversight for the university’s finance department, which includes accounting, financial planning & analysis, purchasing, accounts payable and internal audit. I work closely with other departments, the leadership team, our Board of Trustees and various external stakeholders to enhance operational efficiencies, achieve financial sustainability and drive long-term strategic growth.”

They both gave me insight on philanthropy and donations within the university which I am here to share with you.

Philanthropy: Giving With Purpose

Philanthropy at JWU is more than just financial contributions; it is an investment in the future of students, empowering them to achieve their goals while creating a lasting impact on the university community.

Santamaria’s definition: “Philanthropy is the act of giving through charitable donations and volunteerism. For private, nonprofit universities, donations are essential in diversifying revenue streams and reducing reliance on tuition. At JWU, philanthropic contributions most notably support scholarships."

From a philanthropic standpoint donors may give dollars to support things such as scholarships or a program fund within a college. Some individuals may choose to give a certain amount that had been approved internally to create a specific fund. The gift is given as a very specific number because the funds are restricted to the specific donation cause the donor is giving to, and the money can’t be used for anything else.

Her example: “Say I were to give $50,000 and name it the Wildcat Chef Scholarship Fund, and I wanted to support a student from Rhode Island that was a major in the College of Food Innovation & Technology. Those funds are attached to that endowed fund, which can only be spent for that purpose — and so those funds are then pulled, and they are invested into an R.I. Student in a major in that specific college.”

“It's typically at a 5% spend-down so that principal balance remains the same, and then we take 5% from those interest earnings to support that scholarship,” she continues.“The great thing about an endowment that a donor would create is that it's not a short-term plan. The endowment is in perpetuity and would support those students forevermore.”

Santamaria concludes, “The bulk and purpose of philanthropy in the university goes to support those students who are paving their way through life.”

Who makes donations?

In short, everyone! Donors are mostly alumni, friends of the university and parents because they have the means to support the university. These donors want to pay it forward and help other individuals have the same opportunities they were given in college to the new generation of students. A lot of corporation's support scholarships as well. Donations of at least $50,000 are made at the endowment level, so the donor has to be willing to make a $50,000 commitment. This doesn't mean that a donor has to give JWU a $50,000 check on the spot. A commitment can be pledged over five years, but it is put at a minimum of $50,000 which ultimately allows the donors to create their own endowment.

Santamaria says, "A big part of what we do is meeting with individuals one on one and having conversations about where they want their philanthropy to go and who they want to support. These people will have an idea of how they want to benefit JWU, from supporting the university overall to supporting students to supporting a college and/or athletics. We help them define where they want to put their donation by matching up their interests with the priorities of the university and finding that common touch point in how they want to give back.”

JWU is a nonprofit, and Santamaria explains why that matters: “JWU can accept donations coming in from individuals as philanthropic, because they will receive a tax receipt based upon what their gift is. So, when people fill out their taxes, they're able to identify what philanthropy they've been giving throughout the year, and we are one of those nonprofits that provide that benefit.”

What does JWU’s Board of Trustees Do?

The Board of Trustees oversees the operation of the institution, ensuring that endowments are managed responsibly to sustain JWU’s mission. The board is responsible for making sure that we're financially in a good place and that the university is properly investing and keeping JWU on budget. If there are any large structural changes made within the university the trustees will be involved in that conversation as well. They're essentially here as an oversight management board that helps operate the university behind the scenes. That’s why the boards are held responsible to create a balance within the university.

How Students Benefit from Philanthropy

“In addition to funding scholarships, people donate to the JWU Fund to support the university as a whole,” Santamaria states. The university decides on how the funds are applied. Donations help support the university from everything that you would see, touch or know. For example, giving to a college allows the university to provide experiential education opportunities such as internships and fund trips to industry conferences. It provides an overall exposure for students to experience more than what meets the eyes.

She shares, “If I went back as a college student, I wish that I knew that there's this huge community, this big network of people that are giving their private funds to make my student experience and academic experience possible.”

Mattox adds, “With a deeper understanding of endowments and the impact of philanthropy, I encourage students to take an active role in advocating for JWU. By sharing experiences, engaging with donors, and raising awareness, students can help secure funding for future scholarships and resources to enhance the student experience."

She encourages students to connect with Advancement and Alumni Relations to learn how to support fundraising efforts. Additionally, students can engage with the Student Government Association (SGA) to participate in discussions about philanthropic priorities that will help shape the future of JWU.

“I think the biggest takeaway is that when you have that opportunity to give back and pay it forward, just do it,” advises Santamaria. “Allow other people to have the same experience that you had — I think that's a very meaningful way to give back the way others gave back to you in your college experience."

How You Can Make an Impact

During oneJWU, the university's annual 24 hours of giving event, the entire JWU community comes together to support the university. This year, oneJWU will be held on March 18. This day of fundraising allows alumni, students, faculty and friends to contribute any amount, whether big or small, to the university. Those donations help fund scholarships, experiential education, industry conferences and countless other student opportunities.

oneJWU gives donors a way to stay connected with the JWU community and to help change students’ lives through gifts (donations). The emphasis is on participation, not the amount of the donation. It's really inspiring to see everyone come together to create opportunities for JWU students.

Every dollar makes a difference, and participating in oneJWU is a chance to show appreciation for JWU while paying it forward for future Wildcats.

Philanthropy and donations play a vital role in shaping a student's experience here at JWU, ensuring that scholarships, internships and academic opportunities are accessible to everyone. Through the generous contributions of alumni, parents, corporations and friends of the university, we can create a culture of giving and ensure that JWU maintains financial stability and provides essential resources that enrich many students’ lives.

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