wfn.org | UMNS# 054-Africa University receives anonymous $10.5 million gift

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Africa University receives anonymous $10.5 million gift

Jan. 30, 2006

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NASHVILLE, Tenn. (UMNS) - An anonymous $10.5 million gift to United
Methodist-related Africa University has increased the school's endowment
and will fund more capital projects.

The gift to the 14-year-old institution in Mutare, Zimbabwe, is the
result of proceeds from the November sale of an Illinois farm.

A couple with a love for Africa and the United Methodist Church, but
wanting to remain anonymous, donated the 320-acre farm. It was their
second major gift to Africa University.

"This gift reminds us of all that we receive from God, especially as we
remember Christ's birth and how he has changed the world," said James
Salley, the university's vice chancellor for institutional advancement.
"Africa University is a jewel in a country and region that is struggling
to survive. Our students, faculty and staff are moving forward in the
face of serious challenges."

Nearly three-quarters of the gift will go into the university's
permanent endowment fund, which supports scholarships and other needs.
The donation increases the fund to $36.2 million. The remainder will be
used for capital projects.

"This was an extraordinarily generous gift of real estate," Salley said.
The land was valued at about $2.7 million when it was donated to the
university three years ago. Following the advice of investment
counselors, university officials let the value increase more than
fourfold before selling it, he noted. The original gift was the largest
single donation in the institution's history.

"The benevolence of donors like this has made it possible to create an
oasis of learning in a continent fractured by war, poverty, hunger,
AIDS, malaria and harsh living conditions. Education is our best hope
for Africa's future," Salley said. The majority of the faculty and staff
are Africans. The 1,246 students enrolled are from 16 African countries.

The United Methodist Church has had a presence in Zimbabwe since 1897,
with the creation of a mission school at Mutare. Africa University was
granted a charter by the Zimbabwe government in 1992, when its first 40
students enrolled. Its first graduation took place in 1994. In 2005, 354
students received bachelor's degrees and 37 students received master's
degrees, in the school's 11th and largest graduating class.

While the growth of the endowment is important, it is the year-to-year
support from United Methodists that keeps Africa University operating,
Salley said.

"We need every dollar from the apportioned Africa University Fund to
keep the university operating," Salley said. As an apportioned fund of
the United Methodist Church, it is supported by local congregations and
annual conferences.

Africa University's endowment needs to be at least $60 million in order
to generate enough income for the school to be stable and
self-sustaining, Salley said.

According to a survey of 741 colleges and universities in Canada and the
United States by the National Association of College and Business
Officers, the median endowment assets of respondents was nearly $72
million in 2004, with an average five-year investment return of 3.8
percent. The average endowment was about $360 million.

"The disparity between Africa University and its better-endowed North
American counterparts points out how critical it is that we invest
wisely and seek new potential donors to build up our endowment," Salley
said. "For a relatively new institution, we've made a lot of progress,
but there is still much to be done."

Africa University, the first fully accredited private institution in
Zimbabwe, was established to help train church and society leaders who
can address the concerns and needs of Africa's developing nations.

Each year, the university receives about 10 times as many applications
from students as it can accommodate - between 2,500 and 3,000
applications for about 300 placements.

"A scholarship for one student at Africa University covers tuition,
housing, meals and medical care at a cost of $5,200," Salley said.
"Support from donors can make such a difference in the lives of young
African men and women."

This report was adapted from a release by the Africa University
Development Office and the Public Information Office at United Methodist
Communications.

News media contact: Linda Green, (615) 742-5470 or newsdesk@umcom.org.

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United Methodist News Service
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