TODAY Chilly with rain; High: 38, Low: 27. TOMORROW Cold, flurries possible; High: 31, Low: 14. 1£ ItvIUU :DUt 'M' icers sweep Irish, 4-3, 8-5. See SPORTS Page 10. One hundred and one years of editorial freedom Vol. CI, No. 55 Ann Arbor, Michigan - Monday, January 13, 1992 Copyright ()1 992 The Michigan Daily s Gifts to by Purvi Shah such a! Daily Administration Reporter are hes s mi itant 'U' continue despite recession inimizing layoffs, they enue from direct corporate dona- ing for external funding," he said. is the University's greatest threat, state-funded. Because $800 million to provide donations. tions has increased from $16 mil- "It depends somewhat on what the Roberson maintained. "The most of total revenue stems from th ivate corporations are lion in 1990 to $18 million in corporation is interested in and our important effect of the recession University hospital, the state actu- bottom-line now," he 1991, Roberson said. program moves with theirs." has been the state's ability to sup- ally funds about 25 percent of th He added that while companies Roberson added that this re- port the University," he said. "If University's academic programs. donations accounted for still retain an interest in the Uni- search shift does not have a great the state of the economy doesn't Yet, Roberson said he was opti- While college students and their families are agonizing over financial concerns in light of the recent recession, University fund- raising appears to be unhampered by current economic pressures. University fund-raisers say that although they are receiving fewer awards from private companies, alumni donations are increasing this year - due in part to the breadth and success of the Univer- sity's academic and athletic pro- grams. Joe Roberson, associate vice president for Development, indi- cated that because companies are concerned with internal problems Financial problems threaten Hillel by Jennifer Silverberg Daily Staff Reporter Like many University student groups, Hillel, the second largest umbrella organization on campus next to UAC, is experiencing a fi- nancial strain due to the recession. The non-profit Jewish student organization is sponsoring a major fund-raising campaign to combat a worsening financial situation. "A financial crisis is an appro- priate way to describe it," said David Glaser, chair of the Hillel student governing body. "We're shooting for $200,000, but there could be a deficit of as much as $60,000," Glaser said. Hil- lel had raised $109,000 as of Jan. 9. "This year, given the recession and general financial times, our economic condition is worse," said Dianne Harrison, Hillel's director of development. Glaser felt that other factors were also partly responsible for Hillel's financial crunch. "We are slightly stuck for funds because the Jewish community is facing a wide variety of stresses. The biggest is "The pri much more said. Private d $94 million e e n in revenue during the j.. last fiscal year, Roberson said. The University has raised $40 million so far this fiscal year, nearly equal- ing private donations at this stage last year. Additionally, University rev- versity, they have shifted their overall focus - and money - from higher education to elemen- tary and secondary schools because they perceive the latter to be in greater danger. Roberson indicated that at- tempts are now made to solicit corporations to fund faculty mem- bers who are working with ele- mentary and secondary school sys- tems. "We have a lot of faculty doing that kind of work and they're look- 'A large portion of the alumni donors are in the recession-proof category.' -Mark Brotherton Tele fund Program Manager impact because of the range and quality of University programs. "We're still a high priority to them," he said. "It's just taking more effort and making more matches of programs." The state's vulnerable economy improve, you're worried something could happen." Executive Director of Univer- sity Relations Walter Harrison said 15 percent of the University's $1.8 billion operating budget is mistic about the University's posi- tion even though corporate giving is down, arguing that Michigan has not been as hard-hit economically as other states. Harrison agreed, "Of course ev- erybody's aware of the recession, but we don't have undue concern about it." Nonetheless, the University is not taking lightly the issue of fund-raising - especially from private corporations. See RECESSION, Page 2 Colleges weather recession's rough economic waters by Karen Sabgir Daily Higher Education Reporter Although the recession has af-. fected fund-raising campaigns at universities nationwide, philan- thropy directors, like their coun- terparts at the University, are re- porting a satisfactory, if not re- markable, year overall. Some of the directors say they have yet to feel the effects of the recession, while several others say they are prospering under the pro- tection and consistency of capital campaigns. "We are down some this year, but not a large percentage," said Gary Kitsmiller, Ohio State Uni- versity's associate director for De- velopment. Kitsmiller reported a decrease in corporate but not pri- vate donations. He said past recessions have not had a great effect on fund-raising, and he does not believe that the cur- rent decrease in gifts is related to the recession. "A change from the recession may happen. If so, we'll see it in the next six months," he said. Sandy Waterkotte, director of special and annual gifts at Michi- gan State University, agreed with Kitsmiller. "There is certainly nothing official ... but the next six months should tell more." This year, Massachusetts Insti- tute of Technology (MIT) offi- cials are finishing up a five-year capital campaign called "Campaign for the Future." The goal has re- cently been increased from $550 to $700 million. "The recession has had an im- pact in giving, but we still have av- eraged $100 million a year since 1987, and we will reach our new goal," said Charlie Ball, assistant director of the MIT News Office. Despite the campaign's success, Ball pointed to some decreases in donations. The total amount of gifts, according to the MIT trea- surer's report, shrunk 4.5 percent between the 1989-90 and 1990-91 fiscal years. The total amount, ex- cluding donations of equipment, was down 10.4 percent. "Gifts from individuals were adversely impacted from the de- cline in the stock market caused by the crisis in the Middle East," Ball said. Individual donations were down 26 percent last year. How- ever, Ball said corporations and foundations showed modest gains. Both Linda McNay, executive See FUNDS, Page 2 AIHUNYJI TM. ..r,,LLIUaI Hillel, the second largest umbrella organization on campus, is experiencing financial difficulties resulting from the recession and a variety of other problems. Operation Exodus, which is trying to get Jews out of the Soviet Union," Glaser said. "Funds that would stay at the University go to help them instead." The financial problems are also a result of the lack of a programming endowment, officials said. Four years ago, with the aid of a building endowment, Hillel moved into a $3 million building. The organization expected to create a program endowment afterward, but the money was never raised. "We never would have built the building if we had known that we wouldn't get the program endow- ment," said Executive Director Michael Brooks. Hillel's financial crisis may cause cutbacks in staff and pro- gramming. The organization cur- rently operates on an annual budget of $600,000, Glaser said. "Because costs keep going up and we are funding more projects, there is a greater financial need," Harrison said. "If we don't raise money, we will have to cut back on staff, and then they aren't there to help with student programming. Then there are less student programs which means there is less of a need for staff to supervise," See HILLEL, Page 2 'U' student travels to 0 Moscowdespite coup by Mona Qureshi Daily Staff Reporter News of the sudden coup in the Soviet Union shook Ellen Fred's household in Traverse City last Au- gust. While the LSA junior was packed and mentally prepared to spend the semester studying in called. After the coup ended one and a half weeks later, Fred said her par- ents were still uncomfortable, but they allowed her to leave. A student of Russian and East European Studies, Fred spent last semester studying at the Moscow State Institute of International Re- lations (MGIMO) in Russia through the Study Abroad Program. The MGIMO prepares students to be international ambassadors, a ca- reer that Fred said interests her. The MGIMO is reputed to be the most prestigious university in Rus- sia, Fred said. "It's very difficult to get in without connections. I got in as foreign visitor." Fred said the students at her school spoke English well and wanted to practice with her, but it also frustrated her that she was not able to practice her Russian as much as she wanted. Fred attended classes ranging from Russian political theory to the history of international relations. Fred described the students at her school as formal and competi- tive. She also said she did not know if she could trust the other students See MOSCOW, Page 2 Video store owner sells out by Ben Deci Daily Crime Reporter Michael Wax, the former owner of Wolverine Video, may have rented out his last new release. He recently filed for Chapter Thirteen bankruptcy and sold his store, amid allegations of unfairly charging customers' credit card accounts. Wax sold Wolverine Video, lo- cated at 611 Church Street, to Amer's Inc., last month, after filing for bankruptcy on Sept. 3, 1991. A group of University students will file a class action suit against Wax after his bankruptcy hearings. The students' lawyer, Nick Roumel of Student Legal Services, explained the delay by saying, "Chapter Thirteen is a reorganiza- tion bankruptcy. He asks the court's protection for his assets while he pays back his creditors. Until the court makes a ruling, Wax's assets are frozen. Roumel also added that nor- Fred poses in front of Reu Square's St. Basil's Cathedral. Moscow, her parents were deter- mined to stop her. "I fought with my parents. I watched CNN for 16 days. I mean, in one night, the whole thing was off. I was devastated," Fred re- Fallen gymnast Gymnast Rich Dopp, an LSA first year student, was taken to University Hospitals after falling following a vault yesderday afternoon. He was treated and released several hours later. Ann Arbor City Council candidates launch campaigns for April elections by Erin Einhorn and Travis MReAvnolds stressed a need for students to un- voting in a presidential election,"