University Advancement
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1 University Advancement Robert W. Groves Vice President University Advancement
2 The New Reality A Changing Funding Mix 77% Appropriation Support 63% 64% 56% 52% 62% 50% Tuition 32% 30% 37% 42% 42% 18% Other Revenues 5% 5% 6% 7% 6% 29% 8% 9% General Fund Sources, Michigan State University
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4 University Advancement Mission To advance MSU s excellence and enrich it s future Vision To build the best culture of engagement and philanthropy of any major public university in the country
5 University Advancement Values and Beliefs Respectful: We develop relationships and partnerships that are built on trust, cooperation, honesty Accountable: We honor our agreements, and deliver on our promises Collaborative: We work with each other toward common goals and to fully leverage the collective genius of the UA Team. Open-Minded: We refuse to be limited by our current beliefs and established practices. Passionate: We believe in the work we do at MSU and are champions for the cause. Committed: We delight donors, customers and colleagues by regularly meeting and exceeding their expectations.
6 Quick Facts about MSU and University Advancement Living Addressable Alumni: 463,791 Database of more than 1,000,000 alumni, friends, corporations, foundations and other organizations tracking more than 100 data elements per person/org. More than $238 million in new gifts and commitments per year in the last two years a high water mark for MSU! Number of Employees: 300+ Staff Supported: 400+ (UA provides database access, training and coordination to school, college and unit employees who do not report to UA) Total University Advancement Budget: $27.2 million (including $5.9 from the colleges and other programs outside of UA and more than $4.5 million from non-gf sources) *Addressable, Degree holders as of 3/31/2014
7 Development College and Unit Development Regional Major Gifts Corporate and Foundation Relations Planned Giving MSU Alumni Association Regional Alumni Engagement Lifelong Enrichment for Spartans Alumni Career Services Association of Future Alumni Adv. Information Systems Alumni Biographical Records Gift Processing Prospect Development and Donor Strategy Business Intelligence and Analytics University Advancement Adv. Marketing & Communications alumni.msu.edu / givingto.msu.edu Alumni Magazine / Developments Direct Mail / Greenline Telemarketing Event Production Donor Stewardship
8 University Advancement Bob Groves Vice President University Advancement Scott Westerman Assoc. Vice President Alumni Relations, Exec. Dir. of MSUAA Bob Thomas Assist. Vice President Advancement Marketing & Communications Monique Dozier Assist. Vice President Information Systems & Donor Strategy OPEN Assoc. Vice President University Development Vivianne Robinson Director of Human Resources Recruitment & Staff Development Sean Harwood Director of Finance & Endowments
9 Alumni Relations
10 MSU Has One of the Largest Alumni Constituencies 700, , , , , , ,000 0 Alumni of Record: Top 20 Research Source: Various Internet Resources April, 2017
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13 The Engagement Continuum ENGAGEMENT The pulse of the alumni base and regions, and targets & donors as part of a region. IDENTIFY INFORM INTEREST INVOLVE INVEST IDENTIFY DISCOVERY CULTIVATE/OPEN INTEREST CULTIVATE/OPEN INVOLVED SOLICIT & NEGOTIATE/ CLOSE INVEST DEVELOPMENT The pulse rated targets & donors.
14 Our Alumni More than 500,000 potential advocates Over 160 Alumni Clubs 2/3 domestic and 1/3 international 200 Spartan Ambassadors in over 70 countries Over 30 alumni interest-based groups
15 At a Glance Over $13M in scholarships from regional and interest-based groups More than 30,000 alumni and friends hosted at signature events Authenticated over 50,000 MSU Alumni profiles Continued Expansion of Digital Portfolio Exclusive to MSUAA webinar content Weekly live streaming of campus events Digital content strategy alignment with CABS
16 MSUAA Priorities Student-to-Alumni Transition Reimagined Legacy Programs Expanding our Digital Reach Elevating the Alumni Clubs Alumni Award Recognition Creating and Leveraging Partnerships
17 University Development
18 Fundraising and Support Programs at MSU Colleges Non Degree Agr. & Natural Res. Osteopathic Med. 4 H Foundation Arts and Letters Graduate School Athletics Broad College of Bus. Honors College Broad Art Museum Com. Arts and Sci. International Studies Broadcast Services Education James Madison MSU Museum Engineering Lyman Briggs Student Affairs Human Medicine Law Univ. Scholarships Music Res. Col. in Arts and Humanities Wharton Center Natural Sciences Nursing Social Science Veterinary Med. Central Programs and Services Principal Gifts Corporate and Foundation Relations Regional Major Gifts Gift Planning Annual Giving ( mail / phone / on line) Communications and Marketing (including events) Information Systems (Advance) Recruiting and Training Staff
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20 2016 Top Fundraising Institutions 1. Harvard University $1.19 billion 2. Stanford University $ million 3. University of Southern California $ million 4. Johns Hopkins University $ million 5. University of California, San Francisco $ million 6. Cornell University $ million 7. Columbia University $ million 8. University of Pennsylvania $ million 9. University of Washington $ million 10. Yale University $ million 11. Duke University $ million 12. University of California, Los Angeles $ million 13. New York University $ million 14. University of Chicago $ million 15. University of Michigan $ million 16. Massachusetts Institute of Technology $ million 17. Northwestern University $ million 18. Ohio State University $ million 19. University of Notre Dame $ million 20. Indiana University $ million Public Universities Source: The Council for Aid to Education 2016 Voluntary Support for Education survey Slide 20
21 FY 2017 Total Gift Production vs. Cash Receipts Total Gift Production All new gifts acquired in the current fiscal year including new pledges and bequest intentions a measure of new development productivity. $254.7 M Bequest Intentions New Pledges Life Income Gifts Gifts In-Kind 2 nd Best Year Ever! $200.8 M Received Bequests Pledge Payments Life Income Gifts Gifts In-Kind Cash Receipts Best Year Ever! The most conservative accounting of giving, accounting for only actual gifts in-hand (Campaign Counting) Outright Gifts Outright Gifts (CAE- VSE Survey) Slide 21
22 givingto.msu.edu 22 Slide 22
23 Millions Large Gifts Drive Totals $300 $250 $200 $150 $100 $50 $ Gifts $62 Mil 141 Gifts $38 Mil $ Gifts $101 Mil 201 Gifts $53 Mil $ Gifts $119 Mil 229 Gifts $50 Mil $ Gifts $90 Mil 245 Gifts $74 Mil $ Gifts $112 Mil 289 Gifts $75Mil Gifts in Kind $1 M+ Cash/Planned Gifts $1 M+ Cash /Planned Gifts 100K < $1 M Cash / Planned Gifts < $100K $ Gifts $106 Mil 302 Gifts $77 Mil $ Fiscal Year Slide 23
24 The Donor Pyramid Principal Gifts $5 Mil + Presidential Focus Major Gifts Assigned Relationship Mgr. Personal Contact, Specific Strategy Targeted Events Mail, Phone, egifts Special Gifts Annual Gifts $100,000 < $5 Mil / 5 years $1,000 < $10,000 / yr $<1,000 / yr
25 The Donor Continuum Discovery Cultivation Solicitation Stewardship
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27 Campaign Time Table Internal Consultation /Preparation Quiet Phase Public Kick Off Public Phase Campaign Wrap up Oct. 24, 2014
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30 Why do we do Capital Campaigns? Campaigns provide a discipline for setting fundraising priorities Campaigns create excitement, intensity and a series of deadlines that motivate donors to give, and give at higher levels Campaigns create pride and a positive environment in the university that help to re-energize alumni, faculty and staff to seek and give private support Campaigns generally bring 25-40% new money to a university that would not have been raised otherwise Campaigns help fund high-priority needs such as scholarships, fellowships, professorships, research, new programs, and buildings Campaigns bring discipline and accountability to fundraising personnel and programs Campaigns enhance and diversify the revenue stream of a college, university or campus
31 Why Do They Work? They require and precipitate institutional focus They provide a framework for success They galvanize donor interest and commitment They raise sights internally and externally They accelerate the cultivation/solicitation cycle
32 PROGRESS TOWARD CAMPAIGN GOAL $2,000 March 31, 2018 $1.611 Billion $1,500 Goal $1,500 Millions $1,000 $500 $0 Goal Actual
33 STUDENT SUPPORT FACULTY SUPPORT We are inclusive. We are providing exceptional experiences. We are rigorous and can draw top students from around the world. $400 Million $350 Million We are creative and innovative. We are leaders with a network. We are mentors. We are finding new paths. We are enriching. We are evolving. We are inspiring. COMMUNITY SUPPORT $450 Million $300 Million We are experts in areas of critical importance to the world. We are driven to put the best ideas to work for others. RESEARCH SUPPORT
34 Campaign Impact $622 Million to grow MSU endowments 1,600 New Scholarships and other endowed Funds 82 New Endowed Chairs and Professorships $269 Million in research funding Improved Facilities, including Business Pavilion, Grand Rapids Research Center, North End Zone for Football, Hall of History for Basketball, Music Building expansion and renovation.
35 Telling the Story
36 Philanthropy is Increasingly Important to Higher Education There are practical limits to tuition increases if we are to remain accessible to students of limited means For publics, the states investment in higher education is declining in both nominal and real terms Endowments are critical to ensuring long-term financial stability and flexibility for innovation. Private gifts are an important, low-cost source of capital for facilities, especially as states reduce capital appropriations for publics. Private support can help to ensure an institution s ability to fulfill its mission and control its destiny
37 Questions? Bob Groves Vice President University Advancement Michigan State University 300 Spartan Way, 535 Chestnut Rd. East Lansing, MI
38 Additional Resources University Advancement Includes org charts, newsfeed University Development MSU Alumni Association Gift Planning Includes examples of charitable gift planning techniques through tax and estate planning Endowments at MSU Includes most recent annual endowment performance report, endowment FAQ, and link to Office of Investments and Financial Management Honored Faculty Website Featuring Faculty who hold Endowed Chairs and Professorships MSU online giving site Empower Extraordinary Launch Recap FY2016 Best Fundraising year ever! September 2017 Campaign Exceeds Goal a Year Early! College and Unit Campaign Case Statements Don t Fear Fund Raising, David Perlmutter, Chronicle of Higher Educ. Part 1 The ins and outs of asking friends for money Part 2 Matching donor passion to your department s needs
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