An organization of retired Radford University employees has passed a resolution opposing any annuity for university President Penelope Kyle.

Radford's board of visitors and the Radford University Foundation are negotiating with Kyle on a five-year contract extension. One change that's been suggested by the board is increasing her annual deferred payment from $55,000 to $200,000.

Citing concerns about the economy, what they see as a dwindling donor base and "presidential decisions that have diminished the quality of education for students and the climate of professionalism and dedication to excellence among faculty," the Radford Association of Retired Employees has written to the university's board of visitors and the Radford University Foundation board opposing that plan.

RARE passed the resolution at a July 12 business meeting. It was mailed to the boards on July 25.

The group's concerns came to light when Robert Blake, a former member of the board of visitors and the foundation board, made public a series of e-mails he exchanged with then-Rector R.J. Kirk.

Kirk referred to "this terribly misinformed letter from RARE" in an e-mail to Blake. Kirk and foundation President David DeHart responded to RARE President Pegeen Albig with reassuring letters.

DeHart assured Albig "the Foundation has never been in a stronger financial position." Gifts from individuals increased by 2 percent during the previous year, he wrote.

Kirk's letter declared, "The financial integrity of RU and the RU Foundation has never been stronger."

Albig said that hasn't allayed her concerns.

Kirk's letter says, "The foundation's net assets have increased by 37 percent," but the letter does not give a time frame for the increase.

The foundation's latest tax report shows its net assets were $49.37 million on June 30, 2007. According to the university's advancement office, those assets as of June 30, 2008, were $56.53 million -- a 14 percent increase.

Over the past three years, the assets have increased by 74 percent -- more than $24 million. Nearly half of that came in the fiscal year that ended in June 2007. The "realized gain on investment" line on the foundation's tax form that year contained $11.5 million.

"That was an exceptionally good year," said Albert Mah, manager of advancement operations at the foundation. "We were very happy with that return."

The foundation's investment committee put money into a venture capital fund, Mah said, and one of the companies supported by that fund paid off well.

Albig and her group believe that one big payoff skews the numbers, and that should be taken into account when considering the foundation's financial health.

The year before the big score, the foundation's realized gain on investment was $907,002. The year before that, it was $244,686.

RARE, which has between 80 and 85 members, cited a number of problems in its resolution. It has become difficult for designated groups and programs to get at funds meant for their use. RARE members and donors they know say they're hearing less from the university, so they don't feel their contributions are wanted or valued.

Athletic supporters and the arts society are feeling ill-used. And the folks in RARE don't think it was a good idea to sell what they consider the better pieces of the old Saint Albans Hospital property in a depressed real estate market.

"Until a year or so ago, we were more inclined to give than we are now," Albig said.

Albig said she knows people upset enough to withhold their annual pledges. One man even changed his will, she said.

RARE also took issue with Kyle's management.

The resolution declares that former colleagues "too often ... express frustration and dismay at the apparent absence of the president's understanding of a university culture."

Albig said, "Faculty and staff are depressed about what's gone on at Radford."

Whomever Albig is talking to, those people don't seem to be talking to the board of visitors and administrators. Last week's board of visitors meetings were punctuated with praise for Kyle's leadership and the university's progress.

"It's electric," board member Stephen Musselwhite said of the atmosphere on campus. "There's just something here that has not been here."

Juliann Abercrombie, the students' representative on the board, said, "The students recognize it."

There's a new attitude on campus, she said, especially among new students.

Albig remains skeptical.

There's been a big push to increase unrestricted gifts -- and it's worked.

Mary Ann Hovis, the board of visitors' liaison to the RU Foundation board, said this week that unrestricted fund gifts have increased 166 percent over the past year.

"That's a big percentage," Hovis said. "Unfortunately, it was on a small number."

Restricted funds are reserved for particular programs or departments. Unrestricted funds can be used for almost any university-related purpose.

"Unrestricted funds can be directed to that annuity," Albig said, referring to Kyle's deferred payment package. "I personally won't give unrestricted funds."