The university has recently increased the amount taxed on donations to the school from 5 percent to 6.5 percent, due to lower funding from the state.
The change comes after 25 years of a stable administrative tax on all donations to the university, said Rhea Turteltaub, the vice chancellor of external affairs.
“To be able to grow our enterprise, to raise private resources for the university and with the ever diminishing state funding challenge, we need to rely more heavily on private support,” Turteltaub said.
She said that currently, 16 percent of the university’s budget comes in the form of state support and that philanthropy accounts for 4 percent of the overall budget.
State funding for UC has steadily decreased over the past several decades. In the 1978-1979 fiscal year, state funding accounted for 37 percent of the university’s $458 million in revenues, according to the UCLA Annual Financial Report.
Turteltaub said that the increased administrative tax would help to raise funds for development, alumni relations and communications, both of which are important in supporting fundraising efforts.
She added that donors have always known about the administrative tax and that she hopes that donors understand the university’s decision to raise the tax.
“We believe that the rationale will be understood … (and donors) recognize that the university is challenged.”
Compiled from Bruin wire services with reports from Theresa Avila, Bruin senior staff.