Partners in Philanthropy
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- Brian Jennings
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1 Partners in Philanthropy Ronald J. Schiller President, NPR Foundation Inspiring the Largest Gifts of a Lifetime CASE June 2010 Partnerships Partnering to build effective relationships Donors as philanthropic partners Alumni, members, and other friends as essential partners in the past, present, and future of our institutions
2 Three Methods of Fund Raising (Dunlop) Speculative: Time and resources directly primarily toward asking Campaign: Cultivate-solicit; increased attention to preparation Person-Centered: Time and resources directed primarily toward building the relationship, building a commitment How many partners should be involved in each? The Three-legged Stool Speculative: partners Campaign: 3 partners at a minimum Gifts of a Lifetime: partners, or more How do we support these partnerships? What is the appropriate level of staffing, and why?
3 Rationale for a Shared Approach (Smith) Many friends are better than just one. Faculty, students, directors, curators, on-air hosts and correspondents, etc. can often represent the institution more vividly. vidly. More partners may mean more frequent contact and more opportunities for involvement. Who, then, are those pursuing the ideas that drive the largest gifts? Who are the possible partners in building the relationship? Belief and Confidence (Dunlop) Givers make their largest gifts in support of ideas in which they believe and have confidence, and which are being pursued by people in whom they believe and have confidence.
4 Partners Joan Kroc: She loved NPR and its unfiltered presentation of the news. It wasn t t liberal, and it wasn t t conservative. It was as objective as you re going to find. She wanted [NPR] to be a better organization, to be bigger and more relevant. She believed in public radio. For Joan Kroc, it was 3 simple elements: the organization (and its reputation), where it wanted to go in the future (its "vision"), and finally,..and I think most importantly...the person who ran it (in the case of NPR, it was Kevin Klose). She put her big "chips" on people she admired, could "relate" to, and trust.. Without any of the 3, her $200 million + gift would probably not have happened. - Dick Starmann, advisor to Joan Kroc Partners David Tepper: To come from Peabody High School and be able to do this in my life is just amazing. I m I very lucky to be able to do this. Dean Dunn is making some fantastic and strategic changes I I wanted to be a part of it. David Tepper gave $55 million, the largest gift in Carnegie Mellon s history, to name the Tepper School of Business.
5 Partners David Booth: I I remember Professor Fama standing up the first day of class and saying This is the most practical course you will ever take, and it turned out to be true. We built Dimensional Fund Advisors around his set of ideas. It It s not so much a gift as a partnership distribution. The University of Chicago just has been helpful to me in all parts of my life. David Booth and his family gave $300 million in 2008 to name the University of Chicago s business school, the largest gift in the university s s history, and the largest gift ever to name a school of business. Philanthropy: A source of revenue, or something more? Who founded, and who sustains, the majority of our private institutions whether in education, the arts, health care, social services, or other not-for for-profit sectors? The University of Chicago: John D. Rockefeller, William Rainey Harper, the people of Chicago Public Radio: one of the great philanthropic success stories 3 million members Whose vision made, and makes, these institutions possible?
6 Our Role (Smith) To build relationships with individuals which allow us to get to know what they value, and for them to get to know the values of our institutions Whose values come into play, then, in these relationships? Partners Gary Comer: My wife Francie and I have been determined to find the most effective ways to give back to my old neighborhood. We have chosen to do that by focusing on fundamental needs, such as children s health and education. What could be more important than that? Before Gary s death, Gary and Francie Comer gave the University of Chicago $20 million to build the Comer Children s Hospital, $21 million to add a pediatric emergency room, and $42 million to expand the hospital and add a Center for Children and Specialty Care. This is in addition to many wonderful gifts in the neighborhood including the Comer Youth Center, gifts for the Revere School, and support of neighborhood housing initiatives, as well as gifts to the University for the College, the School of Social Services Administration, and the Physical Sciences Division.
7 Degree holders? Grateful patients? Donors? Or Partners in Philanthropy? Law School class of 1947: entry point, or description of relationship? Our institutions offer a breadth of opportunity to link to philanthropic interests Our friends interests grow and change over time Are we willing to listen? Are we able to listen? Positioning for Partnership Are we organized for success? Budget structures Goal setting Management structures, staff incentives Communications Is centralization the answer? Do we know how to partner internally, in order to understand better how to partner with donors?
8 Positioning for Partnership Collecting information Info focused on the institution, its structure, its needs Info focused on the donor, her family, her philanthropic interests and objectives Which fields are blank? Who Are Our Competitors? How many would say that the institution you serve competes with other non-profits for philanthropic dollars? Do different parts of our own institutions compete with each other for philanthropy? Does this benefit a specific unit? The donor? The institution as a whole? If lifelong relationships are important, will this work over the long term?
9 Your Philanthropy How many give to the undergraduate or graduate institution where you earned a degree, or where you work, or both? How many give only to the area represented by the department in which you took your degree? Your Institution s s Top Donors Have they given once or multiple times? Have they given to one area or several?
10 The University of Chicago Of the individuals and families who have given $10 million or more to the University of Chicago: The average span of years between first gift and most recent gift is 33.5 years The average number of individual years in which the donor has made gifts to the University is 30 71% are donors to multiple parts of the University Partners Public Policy (Woodrow Wilson) graduate of Princeton: $1 million to art museum, $35 million for integrative genomics, $60 million for a science library, $101 million for the creative and performing arts. A friend of Carnegie Mellon: professorship in engineering in honor of father, gifts to music, gifts to cancer research. Donors to Carnegie Mellon can find ways to satisfy multiple philanthropic objectives, all on one campus!
11 Partners Think of the most successful fundraising organizations in our country: Do they have greater need? Do they necessarily have a larger prospective donor base? Are their staff and volunteers more persuasive? Are they more grateful when they receive gifts? U.S. Trust Survey of Affluent Americans Why contribute? Desire to support worthwhile causes 79% Respect and recognition 4% Determining factor Reputation and integrity of the charity 81% You or a friend has benefited from the charity 37%
12 Essential Ingredients in Partnership Need, or shared objective? Ability to impress, or mutual respect? Indebtedness, or mutual benefit? Persuasion, or trust? Gratitude, or results? Partners: Essential to Our Mission We re not just grateful that our colleges and universities have successful and involved alumni: we would cease to exist without them. It has always been so for most private institutions in this country. We re not just fortunate that patients are grateful: our hospitals would close without them. Our non-profit institutions were built on philanthropy, they thrive on philanthropy, and their future depends on philanthropy. It is not an extra; it is a cornerstone of each institution s s foundation. There is no us us and them them.. Philanthropists are true partners in the fulfillment of our institutions missions.
13 Partners Who, then, benefits from the partnership? John D. Rockefeller: Why shouldn t t people give to the University of Chicago money, time, their best efforts? It is the grandest opportunity ever presented I I am profoundly, profoundly thankful that I had anything to do with this affair.
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