Appropriations from the state of Indiana are declining as a percentage of IU's total operating budget. Because the University is committed to keeping tuition and fees at an affordable level, private gifts are vital to fill the gap.
The state of Indiana takes great pride in Indiana University and provides as much funding as it can. Competing demands for state dollars, however, mean that less than 30 percent of IU's operating budget is provided by state appropriations. Since tuition and fees provide only another 25 percent of the budget, and since state support continues to decline, in relative terms, private gifts are increasingly important to Indiana University.