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Copyright New York Times

MAKING THE ASK: John Casteen is a 'Beowulf' scholar,

short-story writer and president of a distinguished university. His

mission: to dun alumns. Welcome to the world of extreme fund-raising.

-- By Michael Winerip

 

If ever there were a man placed on this earth for the purpose

of being president of the University of Virginia, it is Dr. John Casteen

3d. Born and raised near Portsmouth, Va., he entered the state's elite

public university in 1961 after turning down offers from Harvard and

Princeton, and was immediately smitten by the beauty and grace of this

campus that Thomas Jefferson designed. Dr. Casteen earned a bachelor's

degree with high honors, then a master's and a Ph.D. in English, with a

specialty in "Beowulf." Along the way he learned 12 languages, won a

literary award for a collection of short stories and built a reputation as

a dedicated teacher.

 

When still in his 20's, he told one of the deans, Ernest Ern,

"I'm going to be president of this university," and to this day, at the age

of 55, when asked to name his heroes, Dr. Casteen ticks off a list

dominated by past University of Virginia presidents. One of his formative

moments as a young man came in the spring of 1970, when he watched the

University of Virginia president at the time, Edgar Shannon -- an English

scholar, a former Harvard professor and a World War II hero -- win over a

crowd of 4,000 angry antiwar protesters gathered at the heart of the campus

on the lawn near the Rotunda.

 

"For the first time," said Dr. Casteen, "I heard a lengthy, serious debate

about the moral basis of intellectual life and national policy."

In 1990, it was Dr. Casteen's turn. A methodical, driven man with a love

of the classics, he set out to create a blueprint for his university

presidency that was finely balanced and quite traditional. He would spend

three days a week on campus guiding his professors and deans. He would

teach a literature course each semester, to keep in touch with students and

carry on the role of the scholar president. And the remaining time he would

devote to travel, to spread word of the university's good deeds, to partake

in academic associations and to help with fund-raising.

 

But after three years, the university's board of trustees had no patience

for a traditional president. Dr. Casteen was in trouble with the board. "We

didn't know if he'd be able to continue," says a top university official.

Dr. Casteen wasn't bringing in the bucks! During the recession of the

early 90's, politicians in Richmond had taken a cleaver to Virginia's

higher education budget, in a few years' time reducing annual state funding

to the university from $178 million to $122 million.

By 1993, the University of Virginia -- one of the most respected public

universities in the country -- was receiving just 13 percent of its

operating budget from the state.

 

By 1993, the board wanted one thing beyond all others from President

Casteen: money. University trustees feared that without a major

fund-raising drive, the school's quality and reputation would suffer.

The board's new marching orders were quite specific: Four out of every

five days Dr. Casteen was to be on the road fund-raising. And no more

teaching; that was a relic of the past. "They wanted me outside selling,"

Dr. Casteen recalls. "They were upset I was spending three days a week on

campus."

 

As Joshua Darden, a former university board chairman, says: "The

seven-figure donors, they want to see the president, it makes them feel

important. John had to be out there."

What Dr. Casteen has accomplished in the six years since has been

impressive. He has raised $884 million on his way to a goal of $1 billion

by the end of the year 2000, one of the largest fund-raising efforts by a

public university. The drive has endowed 514 new scholarships and 135

professorships, greatly expanded the library collection and raised

salaries, helping the university hold on to its talented faculty.

Such financial strength has played a role in keeping Virginia the

top-rated public university for five years in a row on the influential U.S.

News & World Report college survey. By fattening the endowment to $1.2

billion during this era of shrinking government support, Dr. Casteen has

also helped insulate his university from some of the political whims

emanating from Richmond.

 

But all this has come at both a professional and a personal cost. He was

criticized last year as an absentee leader in an editorial in the student

newspaper, which nicknamed him Capital Campaigner Casteen. And while Dr.

Casteen is a private man who rarely discusses his personal life even with

those closest to him, friends say the fund-raising roadshow contributed to

the breakup of his second marriage.

If the enduring image of President Shannon was that of a man talking

reason to 4,000 protesters, the enduring image of President Casteen on

campus may well be of a man schmoozing up alumni at the president's

residence; last year he opened Carr's Hill, the president's home, for more

than 150 fund-raising events.

 

Nor is this considered extreme these days, even for a public university.

In fact, it is rapidly becoming the norm. At one meeting of Dr. Casteen's

cabinet, nobody blinked when he explained what he would be doing in the

next months. "I plan to get pretty deeply into people's pockets," said the

"Beowulf" scholar.

 

It is remarkable how fund-raising has come to preoccupy top people at even

public universities. This is not something a president is allowed to

delegate anymore. As one Casteen aide, Gordon Burris, says, "We need the

president making the ask." And as another aide, Robert Sweeney, says, "They

want to see the president when it's time for the closer." And in between,

says Dr. Casteen, "you really have to work on cultivation." Otherwise, the

president's time is his own.

 

In recent years, in the face of lagging state support, several public

universities, including Berkeley, the University of California at Los

Angeles and the University of Michigan, have undertaken billion-dollar

fund-raising drives, according to the latest report from the Council for

Advancement and Support of Education in Washington.

While at first blush this would sound like good news for America's public

universities -- how can you argue with more money? -- free money often has

its price. At the University of Virginia, for example, major donors tend to

be out-of-state businessmen, alumni who have gone off into the larger world

and made their fortune. They complain about the need to have more

out-of-state students accepted to give the university a more global

perspective (the current ratio among the 18,500 students is one-third out

of state, two-thirds in state). And they'd like to see less state

interference, perhaps even ending the university's public status

altogether. "This is an opportunity to wean ourselves off state support,"

Everette Doffermyre, an Atlanta lawyer and donor, said at an alumni

fund-raising gathering in Tucson last year. "This is our chance to get

control of U-Va.'s destiny."

 

Professors also worry that donors will pressure universities on policy as

well as admission preference for their children.

University officials say such concerns are exaggerated, and the benefits

outweigh the potential conflicts. One reason Dr. Casteen has come to

embrace his fund-raising role was his experience in the 1970's as a

professor at another great public university, the University of California

at Berkeley. There he saw firsthand how the school suffered when its

leadership got locked in funding battles with Gov. Ronald Reagan. "It made

me realize public institutions are fragile," he says, "and the need for

some degree of financial autonomy."

 

Among presidents, Dr. Casteen is considered a master of the soft sell. He

was guest speaker last year at a meeting of Maryland's 13 public university

presidents, who sat around a horseshoe-shaped table at their headquarters

in Adelphi taking notes on Dr. Casteen's sure-fire fund-raising tips.

"To conceive of fund-raising as making a pitch is missing the point,"

began Dr. Casteen, explaining that the real way to win over alumni is to

get them enmeshed with the university's future. "Money's only one part of

what you need to ask for," he said. "I ask for their vision of the

university, I ask for their political support, I ask for their membership

on committees, I ask for their children."

 

The president must make the ask, he said, because the president embodies

the university, and "people donate to a person, not a committee." He told

the university presidents how he'd tried to set a tone, including making

his own pledge ($50,000, simply listed alphabetically in the alumni

donation publication); giving up teaching ("If I was going to be on campus

three days a week, I wasn't going to be in Chicago in front of a guy at the

Commodities Exchange"); and using his house for events whenever he's on

campus ("There is a serious relationship between people coming into my

house for a reception before ball games and being a large donor").

He talked about how he used surveys and national rankings to put goals

into focus for donors. "We did some research and discovered we're the

largest university left without a concert hall," he said, a fact he

constantly drops at alumni functions. He personally rewrites fund-raising

letters. ("They have to inspire," said the former short story writer.) And

he spent a half-hour going over his appointment book. ("This man likes to

take a walk around campus -- he wants to walk, we walk. . . . This event,

I'm not the center, I'm there to add a little weight to the party.")

After an hour and a half, the presidents gave him a rousing hand. Dr. Hoke

L. Smith, Towson University president, said that these fund-raising

seminars usually focus on the technical, like the ratio of initial contacts

to closures. "This was spiritual," Dr. Smith said.

 

And this is precisely how Dr. Casteen landed $1.2 million for a new media

center. In 1996, Dr. Casteen and one of his fund-raisers visited a wealthy

alumnus, Tim Robertson (U-Va. '77, son of the evangelist Pat and president

at the time of the Family Channel cable network). "John always brings

somebody for support," Mr. Robertson says. "It's a lot more pressure when

they bring two or three guys."

 

Dr. Casteen asked what Mr. Robertson felt the university was lacking, and

the TV executive suggested that the English department needed a media

center to tap into the talent and wealth of the television world. "They

thought that was a great idea," recalls Mr. Robertson. "They said they'd

get back to me. I was amazed at how fast they did." In a few weeks, Dr.

Casteen was visiting again, this time with his arts and sciences dean.

"They had a whole curriculum laid out -- so fast!" says Mr. Robertson.

"John said we'll need x amount to endow a professorship, x to set aside

this floor at the library."

 

After the deal was clinched, the university announced it -- several times.

"They milked it for all its press value," Mr. Robertson says.

How does a man like Dr. Casteen, with so many intellectual gifts, have the

patience and will to spend so much time on the road begging for money,

alumni dinner after alumni dinner, cocktail party after cocktail party, the

same speeches, the same conversations? A student reporter once asked how he

did it, and Dr. Casteen's answer was fascinating for how little insight it

provided. "To maintain the necessary pace," Dr. Casteen said, "you don't do

anything magic, you keep your head clear, you exercise, you sleep, you

follow rules of moderation." Rather than a peek into Dr. Casteen's psyche,

this was his fitness regimen for ultra-marathon fund-raising.

Indeed, today's university president often resembles the national

television-age politician -- public figures who don't have an internal

world or the ability to convey it, even though they are quite intelligent.

That lack of introspection can be precisely what enables them to operate so

effectively in the public arenas where they dwell.

 

Dr. Casteen himself was briefly in politics, serving in the 1980's as

state secretary of education to Gov. Charles S. Robb, a Democrat. He is

shrewd politically, which has enabled him to continue as university

president under both Democrat and Republican governors. When he speaks, he

has a way of looking at you and raising an eyebrow, of starting an idea and

not quite finishing it, often seeming to say more than his words while

never really answering that controversial question.

 

At the same time, as his vice president for development, Mr. Sweeney,

points out, "he can deliver an impressive 40-minute speech on anything with

no notes."

 

Though he's constantly under pressure, rarely is there a crack in his game

face. "I've seen him at a million tough moments when I know his stomach had

to be churning," says Mr. Ern, the dean, who has worked with Dr. Casteen 30

years, "but John never lets on, that's part of the mystique. He doesn't let

you see inside."

 

As to what really is going on inside, even those closest to Dr. Casteen

say it's hard to know. "I've never engaged an individual who can talk in

such detail of hiking Dismal Swamp and say so little about himself," says

Mr. Ern, referring to Dr. Casteen's passion for the outdoors. Even Dr.

Casteen's brother Tim says, "I don't know how much I can help, he doesn't

open up much."

 

Dr. Casteen will not discuss how the demands of fund-raising affected his

marriage or his relationship with his three grown children (nor would he

permit interviews with them). But as one friend says, if you spend 80

percent of your work time on the road and when you are on campus you open

your house for more than 150 fund-raising events a year, there is little

time for a personal life.

 

"If the spouse doesn't thrive in the fishbowl business," another friend

says, "it's a problem." Dr. Casteen's former wife, Lotta, an English

professor at the university, declined to be interviewed.

To meet John Casteen 3d you would assume he was born to this elite world,

but that is not so. His father and grandfather were shipyard workers in

Portsmouth, and his parents still live in the same house where Dr. Casteen

and his two brothers grew up. To this day, the brothers -- Dennis, a

quality control worker at Norfolk Naval Base, and Tim, a fourth-grade

public schoolteacher -- live on the same block as their mom and dad.

 

The very things that have led Dr. Casteen to take a different route from

the rest of his family also help make him the perfect fund-raiser for the

University of Virginia. For his own worldly success illustrates the

possibilities that a great public university can open up for a boy or girl

of modest means.

 

As a senior at Cradock High School in Portsmouth in 1961, he was accepted

to Harvard and Princeton but could not afford either of those private

universities. He chose Virginia after the dean of admissions, Marvin Perry,

made a visit to the Casteen home to recruit this bright student and,

sitting at the kitchen table, showed the family how it could afford the

state school with its lower tuition.

 

John 3d was the first Casteen to attend college. From the time he entered,

he always worked to help pay his way, in the dining hall, at the library,

unloading trucks at Morton Frozen Foods.

He had trouble adjusting at first, didn't have the sureness of students

from the elite private schools; as a freshman, he struggled to post a B-/C+

average. But during his sophomore year, he developed more confidence that

this was a place he belonged, and he rarely got anything less than A's. From then on, the university felt almost magical. It was there that he met

professors like William Faulkner and John Dos Passos, who turned him toward

literature.

 

After five years away, as a professor at Berkeley, Dr. Casteen returned to

Charlottesville to be the University of Virginia's dean of admissions from

1975 to 1982. It was during this time that he began to return the favor

that the university had done for him. Under Dr. Casteen, black student

enrollment jumped from 2 percent to 11 percent, the current level. Nor was

this a token effort. The four-year graduation rate of black students at

Virginia -- 84 percent -- has long been the highest of any public

university in the country.

 

Back in the 1970's, when Dr. Casteen was laying that groundwork, he would

spend his Sundays driving the state, visiting black churches, trying to

convince parents that this university, which had been segregated into the

1960's, would now welcome their sons and daughters, that their children

belonged at the state's elite public college.

 

Dr. Casteen was doing for those families what Marvin Perry had done for

him two decades before, sitting in the kitchen on Wildwood Road, explaining

that a family could manage to send a child to a great university on a

shipyard worker's salary.

The university has undertaken only one other capital campaign since it was

chartered in 1819. In the early 1980's, it set a goal of $90 million,

raised $137 million in three years and promptly dismantled its development

office, which is how things stood until Dr. Casteen took over. "We could

never let that happen again," Mr. Sweeney says. "We can't afford to lose

momentum."

 

And so while there is still more than a year left in the current

billion-dollar drive, the Capital Campaigner is already laying the

groundwork for the next one. During the last year, he has been holding

weekend retreats at resorts around the country -- in Tucson, Martha's

Vineyard and Kiawah Island, S.C. -- with small groups of rich,

hand-selected alumni in their 30's and 40's who Dr. Casteen hopes will run

the next campaign.

 

At the Tucson retreat, held at the Westin Paloma resort, where rooms go

for $350 a night, all costs for the weekend for the dozen alumni and their

spouses were picked up by the university. They flew in from all over the

country, some in private planes, and one, Louis Elson, whose family made

its fortune in airport stores, arrived from London. All were long-term

donors. A few had already given more than $1 million; half had given more

than $100,000.

 

Dr. Casteen, who makes $360,643 a year, didn't just drop in, make a speech

and leave. He spent the entire weekend, joining the alumni for seminars,

meals, drinks, brainstorming sessions and lectures.

After a Friday-evening cocktail hour on the patio, with the sun setting

behind the desert mountains, the president delivered a speech at dinner on

the decline of state aid to the university. This is why, he said, he was

assembling a group of 100 families "to take the leadership for the next

drive. You are about to take ownership of this thing."

Before saying good night, Dr. Casteen told them, "I'll see you in the

morning. We go to work at the godawful hour of 7:30." And sure enough,

these bankers and venture capitalists, corporate lawyers and computer

software entrepreneurs, were all there at that godawful hour, dressed in

their khakis and polo shirts, shaved, showered and ready for a seminar on

how the university will need to change by 2020.

 

During the entire weekend, no one asked for money. The word was rarely

spoken. "At U-Va.," said John L. Lewis 4th, an investment manager and

six-figure donor, "gentlemen don't discuss their money or their grades."

"This is about strengthening their bonds to the university," Dr. Casteen

said. "These people understand why they're here."

Indeed, Bert Ellis -- who a few years ago sold his chain of 13 television

stations for $745 million -- had a keen grasp of why. "After I sold my

company I gave a half million to the university and allocated stock, so I

guess that's when I jumped up to this level," he said. "My wife and I can't

spend the money we have. We love this university. Being a giver here is

fun. I'm not anonymous. I want recognition. I want some tickets to the ball

games."

 

In recent years Virginia's governors, Democrat or Republican, have not

been kind to higher education. During the early 1990's, it was Gov. L.

Douglas Wilder, a Democrat, who cut state aid to the public universities.

And now that Dr. Casteen has overcome those cuts through aggressive

fund-raising, a new governor, James S. Gilmore 3d, a Republican, has formed

a 39-member commission to study whether the state should have more control

over how those private donations are being used.

 

But if Governor Gilmore thought he was going to make political hay on this

one, he gauged wrong. Editorial writers, business people and student

leaders have blasted him for being hypocritical -- on one hand the state

has cut its support, on the other the state wants control of private money

the university raised to fill the state budget gap. In a vote of confidence

for Dr. Casteen and the other state university presidents, a bipartisan

legislative committee this year asked the Governor and his commission to

"cease and desist." While the commission continued to hold hearings, says

Mr. Darden, the former trustee, "they've been a real snore." Governor

Gilmore is seeing firsthand, free money has its price.

 

There is nothing like an outside enemy to unite a community; the Governor

and his commission have succeeded in making Dr. Casteen a popular man in

Charlottesville. In an editorial this past school year, the student

newspaper apologized for its earlier criticisms, citing the "tremendous

success of the campaign," and acknowledging that "Casteen's leadership has

even humbled the editorial powers that be of this newspaper."

It is not often that students admit to error -- certainly not in print --

and it must have given Dr. Casteen a great sense of vindication.

"Yeah," he says. There is a pause, he lifts an eyebrow, but says no more.