Higher Education Fund Raising

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Higher Education Fund Raising

• Timothy C. Caboni
• Assistant Dean
• Vanderbilt Universitys Peabody College
• Presentation to the
• National Press Foundation
• 31 October 2006
• New York, New York

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Beginning Questions

• Is an appropriate volunteer fund raising board in
  place, and do its members fully understand their
  leadership role and responsibilities?
• Has your institution systematically examined its
  fund raising potential?
• Is the development office appropriately organized
  and configured for optimum productivity and
  results?
• Has your institution made the prerequisite
  investments in institutional advancement to
  attain the desired results?
• Does the President play an appropriate role in
  leading the fund raising program and integrating
  it into the institutions superstructure?

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Pyramid of Giving

• PLANNED GIVING
• Bequests
• Wills/Legacies
• Estate Gifts
• Net Worth Gifts

Investment
Donor Commitment

• MAJOR GIVING
• Endowment Campaigns
• Capital Campaigns
• Special Projects
• From Individuals/Corporations Foundations

Involvement
Donor Growth
Interest

• ANNUAL GIVING TO/FROM I.E.
• Support Groups
• Special Events and Benefits
• Annual Campaigns
• Direct Mail Program
• The general public

Information
Initial Support
Identification
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Gift Pyramid

• 60 of gifts come from 10 of donors
• 15-25 of gifts come from 20 of donors
• 15-25 of gifts come from 70 of donors

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Building and Maintaining the Base

• Acquisition mailings Enlist new donors Never
  Givers
• Renewals produce income (sybunts, lybunts)
• First time givers renew at 50 rate, after
  that, 70-80
• 50 or your returns come in the first week

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Pyramid of Giving

• PLANNED GIVING
• Bequests
• Wills/Legacies
• Estate Gifts
• Net Worth Gifts

Investment
Donor Commitment

• MAJOR GIVING
• Endowment Campaigns
• Capital Campaigns
• Special Projects
• From Individuals/Corporations Foundations

Involvement
Donor Growth
Interest

• ANNUAL GIVING TO/FROM I.E.
• Support Groups
• Special Events and Benefits
• Annual Campaigns
• Direct Mail Program
• The general public

Information
Initial Support
Identification
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Stages in the cycle
1 Identification 2 Research 3 Planning 4
Cultivation 5 Solicitation 6 Stewardship 7 Renewal
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Principles of Gift Charts

• The first two gifts should equal 10 of the goal
  100,000
• The next four gifts equal an additional 10 of
  the goal 100,000
• The remaining gifts are flexible and can be
  broken down into various categories 800,000.
• This chart is most effective with fundraising
  goals of 25,000 or more

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1M Gift Table
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Efficiency vs. Effectiveness
Difference between effectiveness (maximizing the
net between total gifts less fund raising costs)
and efficiency (minimizing the average cost per
dollar raised) The objective of an institution's
fund-raising program should not be to spend as
little as possible each year to raise money, but
to maximize the net.
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Efficiency vs. Effectiveness
A program that annually produces 2 million at a
cost of 160,000, or 8 percent, may look good and
is indeed efficient, but one that produces 3
million at a cost of 300,000, or 10 percent, is
presumably of more help to the institution i.e.,
more effective -- it is bringing in 860,000
more.
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Return on Investment Analysis

• ROI Funds raised as a percentage of fund
  raising expenses
• Bottom line cost percentages are not a useful
  measurement for internal management purposes
• Performance of one kind of fund raising program
  cannot be evaluated against others

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ROI Analysis
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Contact Information

• Timothy C. Caboni
• Vanderbilt Universitys Peabody College
• Box 514
• Nashville, TN 37203
• 615-343-6222
• tim.caboni_at_vanderbilt.edu
• peabody.vanderbilt.edu/faculty/lpo/caboni.htm