Although two major donors to Ball State University will cut contributions to several of their beneficiaries, the cuts will not significantly affect the university, school officials said.
The Ball Brothers Foundation and the George and Frances Ball Foundation, both of which donated a total of $20.6 million this year, announced they would have to cut back donations to several smaller organizations to which they donate because of the economic recession, directors for both organizations said.
Ben Hancock, vice president of university advancement, said Ball State does not anticipate any negative effects from the foundations' cutbacks.
The Ball Brothers Foundation was valued at slightly more than $130 million and the George and Frances Ball Foundation was worth $108 million.
Ball Brothers Foundation director Jud Fisher said Ball Brothers dropped in value by $13 million this year.
"[The foundation will] have to hone our giving strategy," Fisher said. "We will be giving to a core group of organizations."
It will donate less to small non-profits with higher risks this year, he said.
The George and Frances Ball Foundation director Norm Beck said his foundation also took a financial hit, dropping about $18.4 million in value this year.
IRS law requires the foundations to donate 5 percent of their current assets as of Dec. 31 to all their beneficiaries.
The Ball Brothers Foundation has promised $10 million to Ball State over the next 10 years, Fisher said. The foundation will donate the money in $1 million grants every year.
Ball State will continue to be on the Ball Brothers recipient list after the 10-year period, Fisher said.
Beck said the George and Frances Ball Foundation also will continue contributing to the university.
Beck emphasized two of the foundations most recent donations - $10.5 million to the Ball State Bold: Investing in the Future capital campaign and a $100,000 donation to the Ball State Museum of Art.
"We are happy to be able to contribute to Ball State, and other educational institutions," Beck said.
Hancock said Ball State is fortunate to have such large contributors.
"We are pleased with the foundations and the donors who have donated to the university," Hancock said.
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