IPAA-commissioned survey quantifies real-world opinions of university donors on issue of divestment
Washington, DC – As divestment activists try their best to generate attention for their campaign around the U.N. climate conference in Paris this month, a new survey released this week of large financial donors to colleges and universities in the United States suggests these individuals both widely oppose fossil-fuel divestment, and would think twice about investing their own money in a school once informed that it has chosen to go down that path.
The first-of-its-kind survey, commissioned by the Independent Petroleum Association of America (IPAA) and conducted by FTI Consulting, Inc., captured the views of 275 individual, major college donors, an unprecedented sample size for this issue. Among those surveyed, a full 80 percent said they would expect the endowments of schools that divested to take a significant financial hit, with 79 percent saying separately that they wouldn’t expect divestment to have any “tangible impact” on the environment or climate change.
“Large donors give money to schools for a number of different reasons, but having those schools waste that money on symbolic campaigns that hurt returns without actually achieving anything aren’t among them,” said Jeff Eshelman, senior vice president for operations and public affairs at IPAA. “But the most important finding here is that two-thirds of donors surveyed said they’d consider not investing in a school if it chose to divest. That’s a real group, and one to which school administrators and trustees should consider listening to more as part of the review process.”
Notably, over three-quarters of respondents agreed that endowment managers should be using donors’ money to maximize the value of the endowment, while 66 percent indicated they would be less likely to invest their money in a college or university that had decided to divest itself of oil and gas securities. The survey found this opinion was consistent across party lines, as 82 percent of Republicans, 76 percent of Independents, and 70 of Democrats agree that endowments should be entirely focused on increasing financial returns and supporting campus programs. There is also widespread agreement divestment would hurt the college endowment, with 80 percent believing that their alma mater divesting of oil and gas companies would decrease the value of the endowment. This is consistent across party lines with 83 percent of Republicans, 77 percent of Independents, and 79 percent of Democrats in agreement.
Donors surveyed are defined as individuals who donated $5,000 or more to U.S. colleges in the past five years. More than half of respondents donated $10,000 or more over the past five years, while three in 10 donated $20,000 or more. Read a complete list of questions included on the survey, along with full answers provided and percentage-breakdowns attached to each response on www.DivestmentFacts.com.
Key Findings from the Survey