Fardin Sanai Vice President, University Development University at Albany 1 Executive Leader Workshop June 10, 2015

Philanthropic Landscape 2

Philanthropy in America 3 89% of Americans give. Americans give between 1.8% to 2.4% of household income (3% over 50 years old.) 55% of Americans volunteer. 8 out of 10 think they should. Volunteers are much more likely to give.

Philanthropy in America 4 Total = $ billion ($ in billions – all figures rounded) 1.08 million registered charities With average growth, Americans are expected to give $4 trillion in philanthropy over the next 10 years % of all US philanthropy from high Net worth is: 65-75%

Funding Sources by Sector 5 Private contributions Private payment Government Grants and payments Investment income Other revenue Source: CRS calculations using data published by Wing, Pollak, and Blackwood. The Nonprofit Almanac, 2013,

Where it Went: Most Popular Causes for American Support contributions: $ billion by type of recipient organization (in billions of dollars- all figures are rounded) As has been the case for 57 years, the religion subsector received the largest share of charitable dollars, with an estimated 32% of the total in 2013 Includes rounding to get to 100% * Includes gifts to non-grantmaking foundations, deductions carried over, Contributions to organizations not classified in a subsector, and other unallocated contributions © 2013 Giving USA Foundation

ROI in Different Types of Fundraising Activities 5 to 10 cents per $1 raised 20 cents per $1 raised $1 to $1.25 per $1 raised 20 cents per $1 raised 25 cents per $1 raised 50 cents of gross proceeds 20 cents per $1 raised 3% to 7.5% of amount of gift 7 Type of Fundraising Activity Associated Fundraising Cost Capital Campaign/Major Gifts Corporations/Foundations (Grant Writing) Direct Mail Acquisition Direct Mail Renewal Planned Giving Benefit/Special Events National Average overall Online Donations Source: The figures listed above are based on basic metrics developed and published by the Association of Fundraising Professionals (AFP).

Types of Organizations on the Philanthropy Environment/Animal Welfare Religious Community Foundation Social Service Health Hospital & Medical Centers International Colleges and Universities Arts & Cultural Public Broadcasting Public Affairs Youth Museums & Libraries Donor-Advised Funds Jewish Federation Education Other

The Philanthropy 50 of 2013: Where the Big Gifts Went 9 1-Donor advised fund 4- Art groups 6- Foundations 11-Hospitals and medical centers 1-Community Foundation 28-Colleges and Universities 1-Education group 5-Museums and libraries 2-Health charities 3-Schools 3-Medical research groups

Giving Motivations 10

Individual Donor Motivation 11 Rarely giving for financial incentives ( tax benefits), donors share: -Compassion for those in need; -Desire to give back to their community; -Aspiration to make an impact in the world; -Passion for a cause; -Belief that they may set an example for others; -Wish to assist the person/organization asking; -Response to a personal request or special giving opportunity PASSION FOR A CAUSE

Reasons Why Donors Stop Giving 12 TOP 3 REASONS WHY DONORS STOP GIVING… Too frequently solicited or asked an inappropriate amount Decided to support other causes Household circum- stances changed Too frequently asked/asked an inappropriate amount Support other causes Household circumstances changed No longer involved with the organization The program/purpose was completed Organization kept inaccurate records 58.9% 34.2% 29.4% 11.7% 11.4% 10.4%

Why Do Corporations Give? 13 Corporations realize benefits from their investment in community well-being, a better work environment and motivated and healthier employees. When asked which of the following three hold the most weight for corporate philanthropy programs, the top five were: (1) Personal interest of CEO/board members, (2) Local community needs, (3) Employee interest, (4) Alignment with business needs and (5) Visibility contributing to brand strength.

Challenges and Trends 14

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What can presidents do to greatly improve their institution's fundraising success? A new president should create the conditions that will attract significant philanthropic investments. A new president should be very clear about the objectives needed to obtain their goals. 19 The President’s role in Fundraising

Explain in clear, compelling terms what distinguishes and differentiates their institution on a local, regional, national and global level; Articulate how those differentiating and distinguishing features can be amplified, with sufficient funding, to deliver more value to those the institution exists to serve; 20 President’s Fundraising Success

Lend credibility to those aspirations by putting forward series of objective specific projects that demonstrate exactly how, when and to whom that value will be delivered; and Demonstrate with consistency how their institution is a cause- oriented, service driven culture. 21 President’s Fundraising Success

The most important elements contributing to a positive student experience include: Rich teaching traditions, accessible faculty, low student- faculty ratios A sense of community that new students “inherit,” making them feel as if they “belong” and “matter” Enduring campus traditions, often conveyed through the effective use of ritual Continuity of purpose and stability of leadership Absence of divisive crisis, lingering controversy 22 Culture of Philanthropy