Faced with one of the most challenging fundraising environments in years, educational institutions are appealing to donors to help meet the swelling demand for financial aid caused by the economic downturn, the New York Times reports.

Until recently, universities largely emphasized new buildings, research, sports centers, and faculty recruitment in their fundraising pitches. According to some fundraising experts, however, those subjects are now turning off some potential donors, who are more interested in supporting immediate needs of students.

Indeed, schools including Hampshire College in Amherst, Massachusetts, and Chapman University in Orange, California, have made sure to point out to donors that demand for financial aid has increased significantly (by 88 percent at Chapman). Chapman's executive vice president of university advancement, Sheryl Bourgeois, said she has even shared letters from financially strapped students with potential donors. While such efforts have had some success in helping the university exceed its fundraising goals this year, recent donations have begun to dip.

At the University of North Carolina, Greensboro, fundraisers are telling potential donors that some $30 million in requests for aid remain outstanding. The university's endowment is down 25.6 percent, while the state's governor has proposed cutting financing to the UNC system by 5 percent. Patti Stewart, vice chancellor for university advancement at Greensboro, said she expects the school to hit its annual fund target of $3 million by the end of the school year, which would be flat compared with last year — a standard that has become somewhat desirable in an economy in which many funds are down.

"Flat is the new up," said Jon Hysell, director of annual giving at Hamilton College in Clinton, New York, where a $6 million annual fundraising drive is already flat compared with last year, thanks in part to an emphasis on financial aid. "So, rather than talking about how a $100 donation buys forty-five compact fluorescent light bulbs, we're talking about how their gift affects a student in need."