Syracuse University announced its second-largest donation in university history Friday — $20 million, which will go toward a new scholarship program focused on incoming middle-class students.

The Louise and Howard Phanstiel Scholar Program will be administered fall 2011 to middle-class students with a U.S. citizenship who have demonstrated potential for academic success and community leadership.

‘It’s almost like you have to pinch yourself sometimes and say, ‘Wow, God gave us this money for a reason, and boy, our job is to make sure we find good things to do with it,” Louise Phanstiel said.

The donation was announced on the Quad during an event titled ‘Project P.’ A drumroll by the SU marching band built up to the announcement of the specific dollar amount, with nine University 100 members, each standing up with cardboard squares that together read ‘$20,000,000.’

Before addressing the audience, the Phanstiels received personalized letterman jackets. Howard ‘Howie’ Phanstiel spoke of the things that have changed at SU since he graduated in 1970. He said students have become more spirited, and the marching band, which he had been a member of, has improved. He also mentioned the number of times he has spoken at university functions, but said it was not quite as easy with him and his wife as the center of attention.

A barbecue followed the announcement, and the SU marching band played throughout the celebration. Students and other attendees of the packed event waved flags and held large cut-outs of the Phanstiels’ heads, reminiscent of those held of Jim Boeheim during last year’s Syracuse men’s basketball season.

Project P served as an opportunity to thank the Phanstiels for their gift on behalf of both the university and students and to celebrate the advancement of the billion-dollar campaign for Syracuse.

‘What you’ve done today will benefit generations to come through educating these young people who are attracted to Syracuse University,’ said Youlanda Copeland-Morgan, associate vice president of enrollment management and director of scholarships and student aid. ‘Thank you so much. Hope you feel the love, Howie and Louise.’

The event began with an opening speech delivered by Nykeba Corinaldi, a junior in the College of Arts and Sciences. During her first year as a student at SU, Corinaldi was affected by the economic crisis and began to question continuing her education at the university after more than 12 loan companies denied her.

During the first winter of the recession, SU launched an emergency fundraising campaign, called Syracuse Responds, to raise more than $1 million for 450 students at risk of withdrawing from SU. The campaign was able to raise enough money for more than 500 students, including Corinaldi.

‘Each year, we see you all on our applicant pool,’ Copeland-Morgan said. ‘But increasingly, it is becoming a struggle for families like yours and students like you to pay for college costs.’

Despite $178 million toward financial aid this year, support and sacrifices made by families, and efforts to pay for college through student loans and work on campus, ‘more assistance is needed to ensure that we have the resources, that you have the resources, to bridge the gap between the cost of coming to Syracuse University and the amount of money that your families can pay,’ she said.

During the presentation, Howie Phanstiel described how he and his wife came from middle-class backgrounds and wanted to give back.

‘Our goal is to continue to create opportunities for others to have the same learning and college experience that we all have shared at this wonderful institution,’ Howie said.

Howie is a graduate of the College of Arts and Sciences with a degree in political science. In 1971, he received a Master of Public Administration degree from the Maxwell School of Citizenship and Public Affairs. Since 2005, he has served on the Maxwell School Advisory Board. He also serves on SU’s board of trustees and has been one of three co-chairs for the billion-dollar campaign for SU since 2007.

The Phanstiels have previously donated to SU. They established the Phanstiel Chair in Strategic Management and Leadership in Maxwell with a gift of $5 million in 2006 and donated $1.2 million to help finance the Carmelo K. Anthony Basketball Center. Howie also led 2008’s midyear fundraising effort, Syracuse Responds.

It was Louise Phanstiel who approached her husband about creating the scholarship program. She said the two have been talking about it since the spring.

She said she and her husband wanted to give in a more meaningful way so students would know the gift had come from people who care about giving back and would hopefully inspire others to give.

Louise paid her way through college, working full time during the day and attending college at night. She was 27 when she graduated and said she wished the financial aid and scholarships of today were available then.

Now she and Howie are helping others with the opportunities they have had.

She said she was touched by the stories of students who approached her and Howie after the presentation. She said she has heard of students who are unsure if they will return because of a death in the family, a parent losing a job or a family supporting those outside the immediate family.

Howie did not become involved in giving to his alma mater until later in his life, when Louise encouraged him to, he said. He comes to SU about four to five times a year. Now that he has given the latest gift, he said he would devote time to finishing the capital campaign and following the football season.

‘It’s very clear it’s going to be a while before this economy recovers, and we know that middle-class families have always made sacrifices for kids to come to a private school like Syracuse, and the challenge will be that, in the future, those family incomes may not keep pace with the increasing cost of attending a school like Syracuse,’ Howie said.

The scholarship is an opportunity for middle-class students who are sometimes looked over during the financial aid process but, like other socioeconomic groups, were affected by the recession. Families’ financial situations differ depending on their family structure, Copeland-Morgan said.

‘You could have a $125,000 income, but that $125,000 has to be used differently when you come from a family of six where there’s four kids, versus a family of three where there’s one child,’ Copeland-Morgan said.

The national median income for the middle class is around $56,000, but the scholarship will include students whose family income is up to $175,000, Copeland-Morgan said.

The scholarship is not only meant to provide money for students to continue their education, but also to focus on philanthropy.

‘It will have mentoring components to it; it will have financial literacy components to it; it will provide lecture and academic enrichment,’ Copeland-Morgan said.

Students who receive the scholarship will be required to attend an annual lecture promoting altruism in the community, submit a one-page personal statement on their philanthropic efforts of the previous year and participate in SU’s financial literacy program, ‘I Otto Know This!’ A Council of Mentors will be available to help students throughout their time at SU.

Keeping students involved in the community and teaching them financial responsibility through a Council of Mentors were elements the Phanstiels wanted to include in the program. Louise Phanstiel said financial and community responsibility will affect students past their years at SU.

Copeland-Morgan said not all scholarship qualification details are available at this time, but the university is aiming to finalize the scholarship details by the spring.

The next step is to identify who the members of the Council of Mentors will be. The council will also ensure the gift retains the purpose the Phanstiels envisioned. The details for the scholarship, including qualifications and the scholarship application process, will be determined once mentors are chosen and meetings and discussions have begun, Copeland-Morgan said.

She also said the university is unsure how many students the program would be able to assist, but there would be a focus on incoming students. The number of students who will receive the scholarship is dependent on how much revenue the $20 million gift generates, Copeland-Morgan said.

There are three options as to how to use the gift: It can be spent, put toward the endowment for interest, or a fraction of the money can be spent and the rest can go toward the endowment, said Kevin Quinn, senior vice president of public affairs. The endowment is a pool of money the university invests. If all or some of the Phanstiels’ gift is put in the endowment for interest, the interest will be used toward the scholarship program.

All of the Phanstiels’ $20 million gift to the university will be directed toward the scholarship program to help middle-class students, but Quinn said he could not say whether they put all or some of the money in the endowment because donors do not usually announce this detail.

Louise said the couple feels inspired to continuously give after being blessed with opportunities.

‘It gives us joy,’ she said. ‘It’s not giving for the sake of giving — it’s giving to make a difference and finding the right things that are consistent with our philosophy and how we look at life, and that we can do the most with what we have.’

lgleveil@syr.edu

dkmcbrid@syr.edu

Published on October 3, 2010 at 12:00 pm