Background & Bias
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1 The Reboot of Philanthropy in Higher Education Northeast Annual Giving Conference Michael Westfall Eastern Washington University
2 Background & Bias
3 The Advancement Evolution Continues Private Research One Regional Comprehensive East Coast West Coast Campaigns: Million $ Billion $ Multi-Billion $ Low Hanging Fruit: Cult of Personality Years Cult of the Market Years Philanthropic System Reboot Inputs & Process Matter More Than Ever
4 Objects Are Closer Than They Appear Overall Giving Down 6% for FY09 (Chronicle of Philanthropy) Higher Education Giving Down 11.9% for FY09 (VSE) More than in any of the 50 years giving has been tracked. Private Liberal Arts Giving Down 18.8% for FY09 Higher Education Giving Down 9% for FY09 (GivingUSA) Alumni Participation % Dropped 1% Pt to 10% Overall
5 Objects Are Closer Than They Appear Nearly 40% of Americans reduced charitable giving during recession (Chronicle of Philanthropy) Only Prior Dips In History of Higher Ed Fundraising Were Due to Shift in Tax Laws & 9/11 Mixed Signals of Case Fundraising Index? Predicted Down 4% for FY09 Predicted Up 3.7% for FY10 (as of Jan 10) Silver Lining: In relation to GDP, Philanthropy Maintained Share!
6 Advancement Leadership in Tough Times Article by Mike Myatt of Nagrowth Management Matters 8 of 15 Characteristics I Feel Make a Difference in the Advancement Enterprise Integrity Ability to Focus Embrace Change Brand Champion Boundless Energy People Acumen Organizational Acumen Never Quit
7 Survival Strategies Manage Expectations Align Vision with Results Focus on Inputs Activity Drives Results Cast a Wider Net Importance of a Leadership AG Effort
8 The Return of Questions: New & Old What is Your Cost to Raise a $? How are managing & spending donor $ s? Reports & Transparency How is my gift making an impact? Why has my endowment value declined so much? USA Endowments Down 20% - 30% vs. Year Ago Is an Endowment Still a Good Investment? When will my endowment pay out again? UPMIFA Immediate Use vs. Long Term Growth Debate
9 Reading the Tea Leaves GG&A Recent Study from of $1 mm Donors from Twelve (12) Universities Donor loyalty y rates of 74% - 97% %p prior to $1 mm gift Data showed sharp giving increases in the 2 nd year of prior recessions Translation: This group is most likely to increase giving once economy stabilizes! Keep Them Close!
10 Glass Half-Empty or Half-Full? The economic downturn will not keep people from dying and it is not going to keep a wealth transfer from occurring. Paul Schervish Schervish, The Center on Wealth & Philanthropy Bequests & PG Vehicles have increased importance Cash Gifts Declined Greater Than Overall Gifts Planned Giving is a Safe Harbor Pre-Recession Top Ten Gifts: Cash Recession Top Ten Gifts: Planned Gift Cornell Strategy: In the midst of $4 billion campaign Shift from Capital to Student Aid Hiring more Planned Giving staff & focusing on 70+
11 Campaign or Not? Provides good timing and prep w/out expectations It is hard for anyone to find a meaningful place in a billion dollar campaign. What can one s $10k gift accomplish? Have concrete plan with results. Cast a Wider Net Several $1 Billion Campaigns Announced Utah Boston College UT-Austin Rice
12 Gift Closure Challenges Listen More/Talk Less No Doesn t Mean No Not You IU Center of Philanthropy Study: 19% Peer Advantage Use of Board Members re: Why They Continue to Give Not Now Not This Designation Not This Amount
13 Retention & Recruiting Strategies No Salary Increase Solutions Title Conferences Equipment Succession Planning Foundation Funds/Perks Trailing Spouse Bonus/Incentives Case Position Kent State Example $59k in 09 10% (2.5% ea.) of Salary Bonus Potential ti New Prospect Calls: 55 Visits Made: 198 Solicitations: 27 Gift Closures: 14
14 Donors of Tomorrow More Informed Than Ever Less Dependant On Any One Source for Information Connected to More People & Organizations Which Stretches Finite Attention & Resources Bombarded w/ Commercial, Political, Philanthropic and Personal Messages Changing g Expectations of Engagement e Defining Data: Recent study shows that alumni that give in the first five years gave, on average, eight (8) more times the amount.
15 New Technologies The Channel Challenge Texting Case Study: Haiti As of 2/11/10 $644 Million Raised $37 Million Via Text of $5 & $10 Gifts Cons Average Gift Size? Time Lag? Building Lasting Relationships?
16 New Media Channels New Technologies Print is important, but is becoming niche Increase use of rich media and microsites Use of Social Networking Examples Cell Phone as Primary Phone 2/16/10 Nielson Survey 07: 15% 08: 18% 09: 21%
17 Invest in Infrastructure Recommendations Understand Donor Attitudes and Financial Picture Remember that Recovery is Partially Financial and Partially Attitudinal Widen Prospect Base While Reassessing Known Focus on Stewardship & Visit Activity Tell Your Story Invest in Annual Giving & Leadership Annual Giving Remember, Whether You Think You Can or Can t t, You Are Probably Right
18 Opportunistic Appeals Save Our Scholarships State Budget Cuts
19 EWU Red Turf
20 Riverpark Square Examples
21 Questions? Mike Westfall
D R A F T F U N D D E V E L O P M E N T P L A N S H A R O N C R I N O
2 0 1 3 D R A F T F U N D D E V E L O P M E N T P L A N S H A R O N C R I N O 2 WE MUST NOT ONLY GIVE WHAT WE HAVE, WE MUST ALSO GIVE WHAT WE ARE. Theodore Roosevelt OBJECTIVES 3 To review basics of fundraising
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