Penn State Erie Receives $20 Million Gift

3-25-98
Erie, Pa. -- Hailed recently as "one of the rising stars among eastern schools of business," the School of Business at Penn State Erie, The Behrend College, has received a $20 million gift from a donor who wishes to remain anonymous. It is the largest gift in the history of the College and the third largest gift ever given to Penn State.

Part of the gift will be used to establish graduate and undergraduate scholarships, allowing the College to recruit the most academically promising students and to offer aid to those with financial need. Another portion will provide a permanent source of funding for library and information technology resources. Gift funds have also been designated to establish three faculty chairs, vital resources that can be used to attract and retain world-class teachers and researchers. The remainder has been set aside to support future initiatives in consultation with the donor.

"I have referred to Penn State Erie as a 'jewel in the crown of Penn State,'" said Penn State President Dr. Graham Spanier. "The Behrend College has made extraordinary advances in the past few years, and this gift is going to help ensure that the School of Business is the finest in the region."

Penn State Erie is a four-year and graduate degree granting college of the University, located in Erie, Pa. Spanier made the announcement along with Dr. John M. Lilley, Penn State Erie provost and dean.

"This gift will transform not only our School of Business and Penn State Erie but also the people and businesses of this region who will be touched by our programming," said Lilley. "I am immensely grateful for the trust in Penn State Erie that this gift demonstrates."

Lilley noted that Penn State Erie has depended on the vision and trust of donors since its inception. "Today we continue to benefit from those seeking to ensure quality education in northwestern Pennsylvania," he said, " a tradition which began when Mary Behrend donated her Glenhill Farm to Penn State."

Mrs. Behrend gave the estate and its surrounding 400 acres to the University in 1948 in honor of her late husband, Ernst R. Behrend, a co-founder of the Hammermill Paper Company.

According to Lilley, the goals for the gift were developed jointly between the donor and the College administration.

"The scholarships and chairs that are being established support our strategic plan for the school," he said. "They were developed with the needs of the community in mind, and we could not be more pleased with this opportunity to enhance our relationship with business and industry in the tri-state region." Penn State Erie shares the University's land-grant mission to contribute to the economic development of the region through its teaching, research, and outreach.

Lilley also noted his pleasure in being able to extend increased scholarship opportunities for students. "The academic caliber of our students continues to rise, and this gift will significantly enhance the scope of what we will be able to offer to the best and the brightest."

Also on hand for the gift announcement was Edward P. "Ted" Junker III, chairman of Penn State's Board of Trustees and a longtime supporter of the College through his service on the Penn State Erie Council of Fellows.

"We are ecstatic about this record-setting gift," he said. "As the College prepares to celebrate its 50th anniversary as a Penn State campus, this is a wonderful reminder of the important role philanthropy has played throughout its history."

Junker, who is chairing Penn State Erie's part of the University's forthcoming capital campaign, also noted that the College has four schools -- the School of Business, the School of Engineering and Engineering Technology, the School of Humanities and Social Sciences, and the School of Science.

"I hope the announcement of this gift will encourage others in the region to give serious consideration and support to Penn State Erie. The impact of this kind of gift on the vitality of the region is immeasurable," Junker said.

"The scholarships and chairs will significantly enhance the quality of students who enroll in and the quality of the professors who accept positions with the Penn State Erie School of Business," said John Magenau, director of the School of Business. A professor who is offered a chair receives annual funding over and above salary to support research activities, equipment needs, and travel.

The University holds endowed gifts in perpetuity, investing the principal and using part of the income to support programs designated by donors. The remaining income is added to the principal to protect it from inflation and increase its purchasing power.

The $20 million gift to Penn State Erie is the second largest gift to be announced by Penn State during this leadership gift phase of its yet-to-be-announced capital campaign, following the gift of William and Joan Schreyer, who donated $30 million last fall to establish the University-wide Schreyer Scholars Honors College.

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PENN STATE ERIE RECEIVES $20 MILLION GIFT AS FOLLOWS:

$2 million will be used to create undergraduate scholarships, allowing the Penn State Erie School of Business to recruit students of the highest caliber. First priority will be given to business students participating in the Schreyer Scholars and Penn State Erie Honors programs.

$2 million will provide graduate fellowships for both applied and basic research projects, aiding local businesses in their role in the global marketplace.

$3 million will be used to provide a permanent source of funding for library and information technology resources.

$2 million has been designated to support executive continuing education and business outreach efforts. This will include support for outreach efforts as well as workshops and seminars which will promote the economic competitiveness of Erie and Northwestern Pennsylvania, particularly in management information systems.

$1.5 million will endow a chair in international business concentrating on areas including international trade, marketing, and free enterprise.

$1.5 million will support a chair in entrepreneurship, focusing on the creation and management of new business enterprises, addressing a critical need for the creation and development of new business enterprises in the region.

$1.5 million will establish a chair in the management of technology concentrating on the management of technological and organization innovation change needed to achieve global competitiveness in manufacturing.

$6.5 million has been set aside to support future initiatives in consultation with the donor.

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