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The Management of Fundraising

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Presentation on theme: "The Management of Fundraising"— Presentation transcript:


2 The Management of Fundraising

3 Philanthropy’s effect on society
Roles of philanthropy Reduces human suffering Enhances human potential Promotes equality and justice Builds community Creates human fulfillment Supports experimentation and stimulates change Fosters pluralism

4 Athletes and Giving Private University Appearance in a BCS Bowl Game
Est. 54 percent increase in giving Appearance in NCAA tournament No significant increase in giving Public University 40 percent increase in giving 35 percent increase in giving Source: Baade, R. A. and Sundberg, J. O. (1996). “Fourth Down and Gold to Go? Assessing the Link between Athletics and Alumni Giving.” Social Science Quarterly. (Vol. 77, No. 4). Austin, TX: University of Texas Press. Dec

5 Athletes and Giving “Alumni who participated in intercollegiate athletics when they were students donate more than alumni who never saw the inside of a locker room.” “Former athletes are 22 percent more likely to donate than non-athletes, and, on average, former athletes donate about 20 percent more than non-athletes.” “Alumni male athletes who had played on national championship teams as undergraduates contributed about seven percent more per year (with the exception of football and basketball players); there was no similar effect for women.” CONTRARY EVIDENCE: “Systematically lower unrestricted donations by former athletes than non-athletes.” Getz, M. and Siegfried, J. J. (2010). “What Does Intercollegiate Athletics Do To or For Colleges and Universities?” No Vanderbilt University Department of Economics Working Papers, Vanderbilt University Department of Economics,

6 Role of Fundraising in Philanthropy
Fundraising is the servant to philanthropy Fundraising is the gentle art of teaching people the joy of giving Fundraising begins with the Board Fundraising is the difficult work of engagement People give to people with good causes


8 Principles of Fundraising
Build total development program Planned Gift Donor Personal contact only Capital donor Special/Major Gift Donor Personal contact / letter / phone call Renewed/Upgraded Donor First Time Donor Direct mail / telemarketing / fundraising benefit / Internet / media / door-to-door Universe of Prospects © TFRS 2008

9 Techniques of Fundraising
Wills and trusts? Where are you in implementing these? Planned giving How do you define major gifts? Varies by organization In what manner do you make major gifts? Major gifts Mail Telephone Person to Person Social media Broad Based Appeals Sporting events Receptions and dinners? Meeting athletes Engagement Events

10 Principles of Fundraising
© TFRS 2008

11 Principles of Fundraising
Case for support: the expression of the cause, providing all the reasons why anyone should contribute to the advancement of the cause Mission Awareness, Insight to Problem Goals Desired Achievement Objectives What’s in Place Programs Service to People (Stories) Governing Board Character, Quality of Organization Staffing Qualifications, Strengths Facilities, Equipment Advantages, Strengths, Effectiveness Finances Validate Need for Philanthropy Planning, Evaluation Documents, Commitments, Strengths, Impact History Heroic Saga, Credibility © TFRS 2008

12 Principles of Fundraising
Fundraising is art and science Philanthropy is human fulfillment Discernment Values Impact on donor Fundraising is a management process: toward somewhat predictable ends Analysis Planning Execution Evaluation Professional stance


14 Giving USA 2013 Source: Giving USA 2013 / The Giving USA Foundation

15 Giving USA 2013 Source: Giving USA 2013 / The Giving USA Foundation

16 Distribution of High Net Worth Dollars Given to Each Recipient Category in 2011^
Percentage (%) Source: The 2012 Bank of America Study of High Net Worth Philanthropy. ^Combined organizations include United Way, United Jewish Appeal, or Catholic Charities. ‘Giving Vehicle’ represents gifts to private foundations, charitable trusts, and donor-advised funds.

17 General vs. High Net Worth Giving

18 Million Dollar List 11 percent of gifts on the Million Dollar List come from individual donors, but these gifts make up 40 percent of the total dollars The Million Dollar List, compiled by the Indiana University Lilly Family School of Philanthropy, documents publicly announced gifts of $1 million or more. The Million Dollar List it is not a comprehensive record of all million dollar plus gifts. 1.41 thousand gifts of a million dollars or more were given in 2012 706 foundations 30 other groups 68 corporate foundations 189 couples 170 individual males 121 corporations 70 individual females 34 anonymous 21 families 3 other individuals

19 Million Dollar Ready The Million-Dollar-Ready: Assessing the Institutional Factors that Lead to Major Gifts study was performed by the Indiana University Lilly family School of Philanthropy and Johnson Grossnickle and Associates. An institution with a president in office since 2000 tended to receive a higher number of million-dollar donations during the study period. An increase in the average board giving is associated with an increase in the number of million-dollar gifts received over the study period. A national ranking (i.e., U.S. News & World Report “Best Colleges” rankings) in the year 2000 is associated with a 61 percent increase in the number of million-dollar gifts received by a college or university, and a 156 percent increase in the value of those gifts. Institutions founded prior to 1900 tend to receive a higher number and total value of million-dollar donations, compared with institutions founded since Institutions founded from 1900 to 1950 received about 13 percent fewer million-dollar gifts, and institutions founded since 1950 received 12 percent fewer million-dollar gifts relative to old institutions. An institution’s employee expenses (i.e., the amount spent on salaries, benefits, etc.) are positively related to the number of million-dollar gifts received. The percentage of an institution’s faculty with tenure is associated with both the number of million-dollar gifts received by an institution and the total value of those gifts. The value of an institution’s endowment corresponds to both the number of million-dollar gifts received by an institution and the total value of those gifts.

20 Effect of the Gift on the Giver
Sara Konrath “Giving to others associated with positive health outcomes including fewer health conditions among older adults” Such as: lower blood pressure, lower viral loads and a significantly lower risk of mortality in older adults or chronically ill patients Effects particularly strong when the recipients of giving are close others Panel Study Giving good for the donor Those who give live longer, healthier lives


22 Questions

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