UA-R-GC-1914-01-01-1965-03-19_Page-012

I J Annex II January 20, 1965 MEMORANDUM ON PRIVATE FINANCING The University's approach to its financial problems must be on the assumption that its principle source of income for the fore-seeable future wi II be fran Mlerlcan Government sources,and that whl Ie the prospect for success In the establishment of the Egyptian Pound Investment Fund remains good there are, nevertheless, 50 many variables In the political climate that this project could be delayed Indefinitely, or could fa i I altogether. The University would still in these circumstances have to rely for Its principle source of income on the annual grants f~ AID and the Bureau of Educational and Cultural Affairs of the State Department. These sources also are subject to the ups and downs of the political climate and the Unlversity·s security and its ability to fonnulate long range plans will remain in jeopardy as long as additional grants must be depended upon. The situation demands, therefore, that the most vigorous and well thought out program for obtaining sizeable financial support fnom private American sources is of almost equal importance to efforts made with the United States Government. Even with assurance of adequate United States Government support, there are additional reasons why a new and vigorous approach to the problem of private financing must be made. Goverrrnent spokesmen have long taken the position that the University must, In its plans for the future, provide for the time when the annual grant approach will b) longer be feasible. Government spokesmen have also said that the ma9nitude of Government help must be In reasonable proportion to private support. In addition, the political situation in the OAR requires that the University remain essentially a private, non-Govern­ment institution and private financing will be necessary to maintain that position. Any approach to financing, whether from Government or private sources, must be so devised that general operating expenses are taken care of. This aspect of the financing problem requires funds whether they are fran unrestricted grants, Income from trust funds,or project grants, ~ufflclently large to provide for general operating costs. Bearing all of the foregoing in mind, the following would seem to ~rlze the alternatives by which the kind of financing that will, by Its magnitude and its terms, provide general operating expenses over an exterKled period of time. I. The University could undertake a broad overatl campaign on the basis of an extensive, well researched mailing list of some five to ten thousand names. Such an approach Is expensive in tenns of the production of informational mater I a I t the assemb ling of ma i II n9 lists and the necessary follow-up. The experiences of others Indicates that suc