1. Strategies for Successful Capital Campaigns and Fundraising
James L. Lanier, Senior Fellow and Consultant, AGB
Ohio Statewide Program for
Board Members and Trustees
November 9, 2017
Strategies for Successful Capital Campaigns and Fundraising 1

2. Setting the Stage
Key Questions from Your Board Concerning FR or Campaigns
National Trends
Relationships with Related Foundation
Inside Look FR and Campaigns
Culture of Philanthropy and Volunteer Leadership
*Drill Down on Key Issues

3. Situational Assessment of Higher Education
Disruptive Change in:
Publishing
Automotive
Textile
Music
Steel
Trucking and Logistics
Telecommunications
Higher Education could be the next industry to experience a hard fall – with failures and victors
Higher education is not immune from historical events that have shaped other industries 3

4. Business Model Challenges
The changing competitive landscape presents a serious challenge for colleges and universities across the country,
impacting enrollment, philanthropic giving and the fundamental economic model of higher education
Institutions are struggling to match revenues with expenditures, while simultaneously trying to cope with:
Lower net revenue per student
Rising costs
Evolving consumer behaviors
Digital technology
Shifting student demographics
As a result, institutions are forced to address their business models.
“Institutional willingness and resolve” will be greatly tested
Creativity and innovation will be important factors in forging a prosperous future

5. Leadership Relationships - Relative to Fundraising and Campaign
Governing Board
Foundation Board 5

7. An “Inflection Point” in Public Institution Fundraising
Over the past 4 decades voluntary support for higher education has grown exponentially and public institutions have outstripped private institutions for the first time. (VSE Survey 2014)
1973: Public institutions received around a quarter of the estimated $2.2 billion in voluntary support
2014: Public institutions received $18.6 billion of $35 billion in voluntary support
2016: The growth continues

8. Advancement Trends and Challenges
Constant Major Gifts and Campaign Focus
Use of “Analytics,” Modeling and “Real” Metrics to Get the “Best ROI” for Staff and Programs
3. Trustee Questions?
Where is our “Ice Bucket Challenge?”
Where are the “Unrestricted Gifts?”
How do we “Continue to Grow Revenue?”

9. Major Gifts and Campaigns

10. Traditional Campaign and Giving Paradigms
33% to total funds from a very small group of donors at the top
33% of total funds mid-sized gifts from a large segment of major donors
33% of total funds from a very large pool of donors with small gifts
Multi-Decade Formula:
Feasibility study
Pyramid of Gifts
Huge number of Volunteers/ Committees
Silent Phase
Public Phase
Significant Increase in Staff and Budgets
Multi-year (5 to 7 years)
Endowed scholarships
Buildings

11. The Giving Pyramid Today
Traditional $
# of donors
Actual $
# of donors

12. Presidents and Board Members Focus on Major Gifts
Invite Investors to Participate in a Significant Venture
As a Team - Personally Solicit Gifts (Strategy)
Campaign Outcomes Usually Determined by Top 100 to 400 Prospects
Concept – 10% of donors will give 90%
Requires “Strategic Initiatives” (Moves)
Trustees and Volunteers Are Often the Primary Door Openers and Seed Planters

13. Sometimes referred to as:
New Types of Donors
Sometimes referred to as:
Angel Investors and Partners
Transformational Investors
Social Impact Investors
Venture Philanthropist

14. Major Gifts & Campaigns Planned or Transforming Giving
The Stages of Giving
Annual Giving
Cultivation
Asking
$ x
Major Gifts & Campaigns
Cultivation
Asking
$(5 to 100) x
Planned or Transforming Giving
Cultivation/Relationship
Asking
$1000+x

15. The Fund-Raising Cycle

16. Board Member Expectations Concerning Philanthropy
What is Appropriate to Expect of Individual Members Concerning:
Advocacy
Identification and Connections
I will help by…
Personal Philanthropy
Annual
Campaign
Planned

17. How Can Board Members Tip the Scales?
Demonstrate that the University is Among Your Top Philanthropic Priorities by Your Example
Find Your “Passion Place” and Tell the Story as an Ambassador
Make Leadership Gifts Early
Identify and Connect Prospective Donors
and Advocates to University Programs and People

18. Why Major Gift Efforts and Campaigns Fail???
Number 1 Reason –
Lack of Adequate Number of Qualified and Cultivated Prospects!!!

19. A Guiding Principle: “Donor Centered Philanthropy”
Philanthropic Giving is Emotional First, then Logical and Reasonable
Donors Want to Feel Like Investors in Projects that are Bigger and More Noble than Themselves

20. “Donor Centered” Culture of Board Leadership
Member’s Relationships and Passions Are More Important than the “Ask”
Board Members are Ambassadors and Advocates --- Not Sales People

21. Donor Centered Philanthropy – a New Mindset
It Is NOT about the Money;
It IS about
Mission, Impact and
Trusting Relationships

22. Donor Centered Philanthropy – a New Mindset
It is Not about the “Asking” for Cash It is about a Team --- Extending an “Offer” or an “Invitation” to Participate in a Significant Venture

23. Belief in Institutional Mission and the Particular Project
Why Do Donors Give?
Belief in Institutional Mission and the Particular Project
Personal Fulfilment
Financial Stability
Relationship with Principal
Someone Asks Them
They Keep Giving Because We Care for Them!!!

24. Donors Give to the “Magic of an Idea”
Modern Donors Run “from” Needs
Modern Donors Run “toward”
Passions, Interests and Excellence
Old School – Hey, Go Wrestle ole’ Joe for $10,000 (Avoid the Mind-Set)
Look for Creative Ways to Package Needs that Engage Donor Interests and Passion

25. The Ask or “Invitation”
Every Solicitation is a Campaign of One
It Requires:
The Right Person (Team)
Asking the Right Prospect (Couple)
For the Right Amount
At the Right Time
In the Right Way

26. Why a Campaign?
Vehicle to Involve and Build Ownership Among Volunteers
Strengthen Institutional Brand
It Creates Urgency
It is a Closing Mechanism
It is a Dream with a Deadline
It is a Springboard for Future Success

27. The University Has No Needs?
People and Society Has Needs –
Universities and Colleges Offer Solutions
Story Telling is a Critical Organizational and Trustee Skill!!!

28. “Never Doubt that a Small Group of Thoughtful Committed Individuals Can Change the World. Indeed, It’s the Only Thing that Ever Has.” Margaret Mead, Anthropologist 28