The endowments of colleges and universities are taking a hit due to the souring economy, but officials say their portfolios remain healthy.

"There are no plans for cutbacks in any short- or long-term objectives," said Vivian Glover, assistant vice president for communications and marketing at Claflin University.

Claflin is moving forward with plans to expand its molecular virology lab and build a biochemistry center, she said.

Glover said the university's endowment has declined slightly, but didn't give specific figures. Sound financial advice has kept Claflin from losing a sizeable percentage of its endowment like other schools, she said.

She reported that no student has been forced to drop out due to economic factors.

U.S. News and World Report has ranked Claflin as the South's number one university in terms of alumni giving. The publication's 2009 college rankings found that 37 percent of Claflin alumni contribute to the university.

"We consider ourselves very fortunate," Glover said.

Other schools haven't been so lucky, according to a study conducted by the National Association of College and University Business Officers and the Commonfund Institute.

The study found college endowments dropped by an average of 22.5 percent from July 1 to Nov. 30, 2008.

That's on top of a 3 percent average drop the previous fiscal year, the study reported.

George Quick, chairman of the S.C. State University Foundation, noted the endowment has taken a beating because of the stock market's volatility.

"We haven't been able to overcome that in the short run," he said.

He noted that has affected S.C. State's ability to give scholarships to students.

But Quick said that has been offset, to some degree, by the university's investments in bonds.

"The thought is to steady the ship and hope the market rebounds," said Dr. Jackie Epps, interim vice president of institutional advancement at S.C. State.

He said a recent gala fundraiser, which garnered $180,000 in donations, replenished lost scholarship funds. S.C. State's endowment was around $3 million at the beginning of 2009, Epps said.

He said the university is shifting away from equities and investing more in fixed-rate securities, like bonds. In fact, he noted 80 percent of the endowment's current investments have fixed-rate returns.

The equities S.C. State does have a stake in are low-risk Fortune 500 companies, Epps said. He did not provide a list of those companies.

Epps said overall, donations are up 25 percent from last year.

"In that respect, we're doing quite well," he said.

The endowment at Voorhees College took some considerable and unexpected financial lumps last year.

"We started out in fairly good, stable position financially," said Vice President for Institutional Advancement Courtney Davenport.

The endowment realized a 6 percent loss in the final months of 2008, but has since stabilized, he said. But fluctuating market conditions could change that.

The Denmark college's portfolio is managed by a private firm.

Voorhees Chief Financial Officer Joe Dickson said 45 percent of the college's portfolio is invested in equities, with 33 percent attached to fixed-rate securities. The remaining balance of the endowment is spread out between cash equivalents and Treasuries.

Voorhees' endowment funds scholarships and various programs.

Neither Claflin nor Voorhees would release the value of their endowments. Both are private institutions.

T&D Staff Writer Lee Tant can be reached by e-mail at ltant@timesanddemocrat.com or by phone at 803-534-1060. Discuss this and other stories online at TheTandD.com.

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