1 Haas Annual Fund Update Trends in Annual Giving Haas Volunteer Alumni Retreat – June 24, 2006

2 HAN/Development Council Retreat HAF Mission Statement The Haas Annual Fund is the foundation of support for excellence at the Haas School of Business. The Haas Annual Fund works directly with alumni and friends to invest in the success of Haas by maximizing the support of public higher education, seeding new initiatives, and maintaining the School’s status as one of the premier business schools in the world.

3 HAN/Development Council Retreat Haas Development & Annual Fund Time Line 1918College of Commerce founded 1945Graduate School of Business created 1976First MBA Admissions Director appointed Haas Annual Fund launched; inaugural Dev Co and Advisory Boards First Placement Center placed in operation (funded by Wally & Peter Haas) $573, $678, $829,813 Haas family give corner-stone gift for new building $790, $720,870 # of Haas endowed chairs doubles to 24 during course of CC $752, $866, $1,017, $1,184,155 January 1995: move into new building $1,317, $1,452, $1,735, $2,032, $2,336, $2,451, $1,690, $1,701, $2,035,81910% part.w/soft credits $2,036,153 12% part. w/soft credits $2,462,000 as of % part. as of 6-23 w/sc

4 HAN/Development Council Retreat Participation Campaign  10 million in new endowments every year  10% participation of undergraduate alumni in annual giving each year to the Haas Annual Fund  FY056.75%  FY067% as of 6/22/06  Need 626 more undergraduate alumni to reach 10% (as of 6-19)  20% participation of graduate alumni in annual giving each year to the Haas Annual Fund  FY0519%  FY06 17% as of 6/20/06  Need 435 more graduate alumni to reach 20% (as of 6-22) The national trend in : Dollars are UP; Participation is DOWN! WHY: People are making choices to give more to fewer organizations.

5 HAN/Development Council Retreat Class Gift Committees/Regional Participation RegionTotal Alumni FY HAF donors as of 6-19 FY HAF donors FY Haas donors as of 6-19 FY Haas donors East Bay SF/Marin6, South Bay LA/So Cal NY Metro Seattle

6 HAN/Development Council Retreat Class Gift Committees Class Gift Committee Update Refer to UG and MBA CGC Charts in your folder

7 HAN/Development Council Retreat Participation Campaign – How to Respond  Structure Appeals to Generational Giving Differences –Civics (65+) give out of loyalty; respond to mail; reluctant to give over phone –Boomers (early 40’s – 65) respond more to emotion; prefer mail, telemarketing –Gen X ( yrs) give to areas of passionate interest - disasters; respond to visuals; prefer on-line giving –Gen Y Net (<28) too early to identify their areas of passion; 100% visual  Capture “good” addresses and phone numbers  Solicit best prospects at least 6 times annually  Focus on donor retention and lapsed donor activation rates  Steady retention rates are favorable indicators (Haas at 60%+)  Consider “2 nd ” asks to most loyal donors

8 HAN/Development Council Retreat New Innovation – first year Annual Fund Buckets Numbers of gifts made to the buckets:5,623 Unrestricted: 4567gifts Undergraduate Programs: 264 gifts Graduate Programs: 601 gifts Faculty Support & Retention 95 gifts Dean’s Initiatives 96 gifts

9 HAN/Development Council Retreat Direct Mail Innovations  Faculty Letter campaign  3800 letters sent, 318 gifts received from recipients (8.36%)  Increased personalization  Degree information  Past giving patterns  Established progressive giving levels (10-20% increases) based on prior-year giving  Fiscal year-end “thank you” postcard  Increased reunion and CGC postcard and letter mailings  Revenue Sharing Program from the Cal Fund  Haas only alumni(50% of their gift allocated to Haas)  Haas multi-degree(20% of their gift allocated to Haas)  Total Haas alumni786  Haas revenue sharing projected gains: $226,805

10 HAN/Development Council Retreat Challenge Fund Innovation Implemented six challenge funds to leverage participation while increasing the annual fund’s bottom line 1.Ryan Challenge ($150K)  Match 1:1 MBA and BS class gifts 2.MBA 99 Class Gift committee Challenge ($100K)  $25K to the CGC w/ the highest participation  $10K to the CGC w/ the highest dollar amount  $75K match challenge to MBA 99 3.MBA 96 Reunion Challenge ($30K)  Match 1:1 up to $30K 4.MBA 94 Class Challenge: Ted Janus/Karin Bauer ($50K)  Match 1:1 up to $250/gift 5.MBA 95 Class Challenge: David Anderson ($10K)  Match 1:1 all new donations and renewed donations above $100/gift

11 HAN/Development Council Retreat Student Campaigns  Lifelong Connections/MBA 101% Pledge Campaign  FY 05$142,80177% participation  FY 06$166,73293% participation  Feed the Bear Pledge Campaign –FY 05$19,16510% participation –FY 06$30,15930% participation

12 HAN/Development Council Retreat Student Thank-a-thon 1,493 calls were made  Wrong/Disconnected Number: 244  Voic Messages: 834  Live calls: 659

13 HAN/Development Council Retreat Future: Annual Fund and the Capital Campaign FACT: The healthiest development programs are those that actively promote the importance of both major and annual gifts while securing support for a campaign. The “dual ask” must be incorporated. Four possible roles for the annual fund in a campaign: 1.Incorporate and grow the annual fund throughout the entire campaign – must have 80%+ renewals annually to AF 2.Use the annual fund during the final years to create a crescendo of future leadership annual fund donors. 3.Launch the campaign with an annual fund strategy to set the tone and pace. 4.Don’t include the annual fund at all.

14 HAN/Development Council Retreat Annual Fund in a Capital Campaign, continued What is the culture of the Haas Annual Fund in the campaign and what are its goals? Combination of incorporating/converting capital campaign donors to the annual fund and growing the annual fund to create a crescendo of annual fund giving in the final years of the capital campaign. Haas Annual Fund must promote its own campaign message beyond bricks and mortar: degree programs, student support, career and technology services for students and alumni Haas is unique in its (non-reunion year) class gift committees and participation campaign. Continue to promote the Campaign throughout the capital campaign with a focus on increasing donor renewals. In order to set higher participation rates realistically, we must first increase the renewal rate. HAF must achieve 80%+ renewals annually to the annual fund in order to increase overall participation rate from 14% to the 30-65% rates prevailing at competitor schools Trend: 20% of all alumni donors give to the capital campaign while 80% give to the annual fund. Focus on renewing 80% of those donors! Haas renewal rate is holding steady at 60%. Convert the major donors to the capital campaign to leadership-level annual fund donors in the final year of the campaign.

15 HAN/Development Council Retreat Annual Fund Goals  Volunteer Recruitment ~  Upgrade and improve volunteer tools  Volunteer benefits/kick-off events w/Dean  Haas Leadership Society benefits  So. Cal HLS dinner  Complimentary Haas Gala tickets and reception  Identify additional benefits………………  Web-based class agent tool  Create new challenge funds directed toward  Reunion years  Recent grads 4 years out (pledge fulfillment)  New donors  Upgrades to HLS ?  Data Mining  Continue to improve data reporting to volunteers and Haas  Create and implement student giving campaigns for EWMBA, MFE, BCMBA

16 HAN/Development Council Retreat Annual Fund Challenges  Migration of databases to one central database  Reporting accurate data  Accurate contact information  Home and Business addresses, s, phone numbers  Volunteer web-based tool  Who can provide the best technology to meet our high-level needs  Limited staff resources to meet the needs of the Annual Fund