With incentives, UNC fundraising chief’s pay could rival chancellor’s

By Todd Cohen

CHAPEL HILL, N.C. — Thanks to a deal proposed by Chancellor Carol Folt and approved this summer by the board of trustees, annual pay for David Routh, the incoming fundraising chief at the University of North Carolina at Chapel Hill, could total $494,000, or only $26,000 less than Folt’s own salary.

The annual salary for Routh, who was named Thursday and begins his job October 14 as vice chancellor for development, will total $395,000.

And if he meets goals Folt sets, Routh also could get incentive pay totaling up to 25 percent of his base pay, or nearly $99,000, bringing his annual pay to nearly $494,000.

Folt’s annual salary is $520,000, compared to $432,600 for her predecessor, Holden Thorp, UNC says.

The stakes are high for both Folt and Routh: A comprehensive fundraising campaign at UNC-CH that at one time was expected to total $3 billion has been on hold for years.

Plans to launch the campaign initially were delayed by the collapse of the economy five years ago.

They were delayed again in the spring of 2012 by the board of trustees, which reportedly rejected plans for the campaign submitted by Thorp and Matt Kupec, the former vice chancellor for advancement, saying the plans needed more work.

This summer, during the search for the new vice chancellor, the UNC-CH board of trustees approved a proposal by Folt to provide the incentive pay.

That move prompted speculation that Folt, former interim president at Dartmouth who became UNC chancellor on July 1, was courting a candidate who already was paid $500,000 or more, or wanted to be paid that amount.

Routh, a 1982 graduate of UNC-CH, has been serving as managing director for U.S. Trust/Bank of America Private Wealth Management in Raleigh and is a former director of gift planning at the university.

Thorp resigned in September 2012 in the face of a scandal involving Kupec, who had resigned days earlier after 21 years as the school’s fundraising chief.

Kupec’s annual salary totaled $349,800, UNC says.

The annual salary for Julia Sprunt Grumbles, a former corporate vice president at Turner Broadcasting who served for a year as interim vice chancellor for advancement before stepping down in early September, was $295,000.

Thorp named Grumbles to the post after he resigned but before he stepped down in June. He now is provost at Washington University in St. Louis.

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UNC-Chapel Hill loses interim fundraising chief

By Todd Cohen

CHAPEL HILL, N.C. — Julia Sprunt Grumbles has stepped down as interim vice chancellor for university advancement at the University of North Carolina at Chapel Hill.

The departure of Grumbles, a former corporate vice president at Turner Broadcasting, leaves the school without fundraising leadership, at least temporarily.

UNC Chancellor Carol Folt is expected this fall to name a new vice chancellor for university development.

The fundraising operation at the school has been without permanent leadership since the resignations a year ago of Holden Thorp as chancellor and of Matt Kupec as vice chancellor for university advancement in midst of a controversy involving Kupec.

That lack of leadership, in turn, has left in a state of suspension UNC’s long-delayed plans for a comprehensive campaign that at one time was expected to total $3 billion.

After Kupec resigned and Thorp announced his resignation, effective at the end of the academic year in June, he named Grumbles as interim vice chancellor for advancement and launched a search for a new vice chancellor.

Folt, a former interim president at Dartmouth who became chancellor July 1, has signaled that total compensation for the new vice chancellor for development might be exceptionally high.

This summer, in an unusual move, the board of trustees at UNC-CH approved a proposal by Folt to let the next vice chancellor for development receive incentive pay of up to 25 percent of his or her base pay by meeting goals set by Folt.

That move led to speculation that Folt might be courting a candidate who already was paid over $500,000 a year.

Underscoring that speculation was the participation by Folt earlier this year, before she took office, in the decision to dismiss search firm Witt/Kieffer from the search for Kupec’s permanent successor.

Thorp had launched that search after he announced he was resigning but before he stepped down this summer. He now is provost at Washington University in St. Louis.

Search firm Isaacson, Miller subsequently was hired to conduct the search.

Elizabeth Dunn retired in January as senior associate vice chancellor for university advancement at UNC-CH. That position still is vacant.

Incentive pay plan for UNC fundraising chief raises eyebrows

By Todd Cohen

CHAPEL HILL, N.C. — In a highly unusual move, the board of trustees at the University of North Carolina at Chapel Hill on Thursday approved a proposal by Chancellor Carol Folt to let the next vice chancellor for development receive incentive pay of up to 25 percent of his or her base pay by meeting goals set by Folt.

UNC, which is searching for a permanent fundraising chief, now can pay the new vice chancellor up to nearly $396,000 a year, based on a maximum set by General Administration for the 17-campus UNC system, according to The Herald-Sun in Durham.

That means the new vice chancellor could earn nearly $99,000 in incentive pay in addition to his or her base pay.

Speculation is that Folt may have a candidate in mind who already is paid over $500,000 a year, or wants to be paid that amount.

Incentive pay, if based on a percentage of contributions, could run counter to ethical principles for fundraising because it could give at least the appearance that, in soliciting gifts from donors, fundraising professionals might be acting in their own self-interest and also might be trying to secure a gift sooner than they otherwise would have.

Folt, former interim president at Dartmouth, succeeded Holden Thorp on July 1 after he resigned last September in the face of a controversy involving Matt Kupec, who the same week quit as vice chancellor for university advancement.

Earlier this year, before taking office but after she was hired, Folt participated in the decision to dismiss search firm Witt/Kieffer from the search for Kupec’s permanent successor.

Thorp had initiated the search after he announced his resignation but before he stepped down this summer.

Search firm Isaacson, Miller since has been hired to conduct the search.

Julia Sprunt Grumbles, former corporate vice president at Turner Broadcasting, is serving as interim vice chancellor for university advancement.

Thorp hired her after Kupec quit.

In the face of all the maneuvers over filling the University’s chief fundraising job, the plans for a long-delayed comprehensive campaign that at one time was expected to total $3 billion remain in limbo.

UNC replacing firm working on search for fundraising chief

By Todd Cohen

CHAPEL HILL, N.C. — Plans for a long-delayed comprehensive campaign at the University of North Carolina at Chapel Hill to raise $3 billion have taken yet another turn with the replacement of the search firm hired earlier this year to help find a new vice chancellor for development.

The latest move, which dismissed search firm Witt/Kieffer, was made with the participation of Carol Folt, interim president of Dartmouth, who was selected in April to become UNC’s new chancellor, effective July 1.

“With her input, the [vice chancellor for development search] committee is now moving forward with the search,” Karen Moon, director of UNC News Services, said in an email message to Philanthropy North Carolina.

“We are using a different firm,” she said. “The committee is in the early stages of identifying candidates and is pleased with its progress.”

Witt/Kieffer was hired “to help move the search process to a point where the Chancellor-Elect, once named, could become readily engaged,” Moon said.

She said a new firm had not yet been selected and that Witt/Kieffer had been dismissed because the “search committee, with input from Chancellor-Elect Folt, decided to go in a different direction with the search process.”

Moon said a campaign planning cabinet of volunteers is “actively working” and will “focus on helping the University create a vision for the campaign: its big overarching themes and how to communicate them.”

Schools and units throughout the UNC campus “have begun to identify priorities,” she said. “However, there is no official timeline for the campaign, as the Chancellor-Elect and the new Vice Chancellor for Development will need to be involved in those decisions,” Moon said.

Scott Ragland, director of development communications at UNC, told Philanthropy North Carolina that plans for a capital campaign had been in limbo pending the selection of a new chancellor and a new vice chancellor of development.

“Until those people are in place, we don’t know” details of campaign plans, including a possible schedule for launching the campaign’s quiet and public phases, Ragland said. “We are not going to establish a timetable without their input.”

Thorp announced last September he would step down as chancellor, effective July 1, an announcement he made a week after Matt Kupec quit as the long-time vice chancellor for university advancement.

Both resignations came in the wake of disclosures that Kupec and another fundraiser at UNC with whom he was having a romantic relationship had taken at least 25 personal trips at the University’s expense.

Thorp, who later was selected as provost at Washington University in St. Louis, in January named an 11-member search committee to help identify candidates to be the school’s new vice chancellor for development.

In a message at the time to faculty and staff, Thorp said that, with the search for a new chancellor “well under way, it’s important to initiate the process now to time the vice chancellor search so my successor will have an opportunity to provide input and be involved in the interview process and final selection.”

Thorp said he had made that decision after consulting with his predecessor, James Moeser.

Witt/Kieffer was hired at that time.

Four years ago, UNC was poised to begin a multi-billion-dollar campaign when the capital markets collapsed, prompting the school to put the campaign on hold.

One year ago, Thorp and Kupec reportedly asked the UNC board of trustees to okay the start of the campaign’s silent phase last July, but the board vetoed that request, saying the school was not ready and should devote another year to developing its strategy.

After Kupec’s resignation, Thorp named Julia Sprunt Grumbles, former corporate vice president at Turner Broadcasting, as interim vice chancellor for university advancement.

And Elizabeth Dunn retired in January as senior associate vice chancellor for university advancement.

UNC-CH launches search for chief fundraiser

By Todd Cohen

CHAPEL HILL, N.C. — Holden Thorp, outgoing chancellor of the University of North Carolina at Chapel Hill, has named an 11-member search committee to help identify candidates to be the school’s new vice chancellor for development.

UNC-CH already is searching for a new chancellor to succeed Thorp, who announced in September he would step down at the end of the school year this June.

“With the search for the University’s next chancellor well under way, it’s important to initiative the process now to time the vice chancellor search so my successor will have an opportunity to provide input and be involved in the interview process and final selection,” Thorp says in a message to faculty and staff.

He says UNC also is “using this strategy with the search for the executive vice chancellor and provost.”

Thorp says in the message that he consulted with his predecessor, James Moeser, “who had to deal with two vacant administrative positions when he became chancellor in 2000.”

Moeser “confirmed my thinking that initiating these key searches now would help accelerate the transition process within the administration and put my successor in the best position after taking office.”

Chairing the search committee will be Lowry Caudill, a UNC-CH alumnus, member of its board of trustees, co-founder of Magellan Laboratories, and an adjunct faculty member.

Thorp announced his resignation a week after Matt Kupec, the school’s long-time vice chancellor for university advancement, quit in the face of disclosures he had taken at least 25 personal trips at the university’s expense with Tami Hansbrough, a  fundraiser at the school and the mother of its former star basketball player Tyler Hansbrough.

She and Kupec, who both are divorced, had been in a relationship.

Kupec had pushed for UNC to hire Hansbrough, who quit several days after Kupec, and Thorp knew about her hiring and about Kupec’s role in it, according to published reports.

Thorp subsequently named Julia Sprunt Grumbles, former corporate vice president at Turner Broadcasting, as interim vice chancellor for advancement.

And Elizabeth Dunn is retiring this month as senior associate vice chancellor for university advancement.

Planning for a comprehensive campaign at UNC to raise $3 billion, an effort that had been expected to begin its quiet phase next summer, remains uncertain.

Four years ago, UNC was set to launch a multi-billion-dollar campaign when the economy crashed, so the school put the campaign on hold.

Last spring,  Thorp and Kupec reportedly asked the board of trustees to approve launching the campaign’s quiet phase this past July, but the board rejected the proposal, concluding the school was not ready and needed to spend another year working on its strategy.