Making the Case for Auburn's Capital Campaign

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Making the Case for Auburn's Capital Campaign Powered By Docstoc
					Establishing, engaging and
sustaining a consistent
donor base
              Rob Wellbaum, CFRE
     Interim Vice President for Development
                 September 2011
Our Common Bond
Status of Giving in the US
According to Giving USA, figures on American philanthropy in 2010
 Americans gave more than $290.89 billion to charity, which was up
  3.8% in 2010.
 The greatest portion of charitable giving (73%) or $211.77 billion, was
  given by individuals.
 Charitable bequests totaled $22.83 billion or 8% of total giving.
  Charitable bequests rose an estimated 18.8%. The sum of gifts by
  individuals and charitable bequests is 81% of total giving.
 Foundations gave $41 billion, accounting for 13% of all philanthropy
  in the USA.
 Corporate giving, which is usually tied to corporate profits, rose an
  estimated 10.6% to $15.29 billion. Corporate giving accounted for just
  5% of all charitable giving.
2010 Contributions by Recipient
Religion                           $100.63 billion
Education                          $41.67 billion
Gifts to Foundations               $33 billion
Human Services                     $26.49 billion
Public-Society Benefit             $24.24 billion
Health                             $22.83 billion
International Affairs              $15.77 billion
Arts, Culture & Humanities         $13.28 billion
Environment & Animals              $6.66 billion
Foundation Grants to Individuals   $4.20 billion
Other                              $2.12 billion
Status of Giving in the US
 Giving USA reported that 60 percent of public charities saw
  decreases in 2010. Exceptions:
    §   religion
    §   human services
    §   environment
    §   animal organizations
 Giving to arts, culture, and humanities organizations were hit
  particularly hard by the recession.
 By 2050, an estimated $41 trillion will transfer from one
  generation to the next, with gifts to nonprofit organizations
  projected to exceed $6 trillion.
Giving USA 2010 Survey
 Build a more compelling case for giving in light of a more
  competitive fundraising environment. Charities built strong
  messages around the consequences of not supporting their cause,
  such as highlighting the loss of education or art programs, the
  closing of a center, or reductions in services.
 Improve communications with donors through quarterly newsletters
  and regular email announcements.
 Partner with other organizations to raise visibility and gain a
  broader audience.
 Improve efforts in getting small annual gifts from members and
  acknowledging donor gifts within one or two days.
 Increase advocacy work and draw attention to a need or crisis.
Individuals’ Motivations for
Givingthey were asked
  Because

   Presented with a giving opportunity that motivated them

   Support what they believe in, they want to make a positive difference

   Give because they cannot say “No” to the person asking.

   Give because it was easy or convenient to give.

   Tax benefits of giving, giving substantially increases in the last quarter of
    the year.

   People sometimes give because it's expected, culture or peer pressure.

   Approach giving as they do investing, maximize the leverage and impact of
    their gift.

   People give because they want to leave a legacy.
 Organizations Have No Needs, but Opportunities. People have
  needs, organizations have opportunities to address those needs.
 Seek Investment, Not Charity. Ask people to invest in the mission of
  your organization, invest in the lives of the people you serve.
  Organizations can put philanthropic dollars to work! People want to feel
  and know that their gift is making a tangible impact….return on
 Position Your Organization Philanthropically. There is a lot of
  competition for people’s philanthropic dollars. You do not have to be in
  someone’s top 5 giving priorities, but you need to position yourself so
  you are on their list when they are making their gift decisions. You need
  to communicate with them prior to them making these decisions.
 Donors Will Tell You What They Want and How they Feel.
  You'll never know how your donors or prospects feel about your
  organization until you ask them.
 Listen to your Donor Community and What They have to Say.
  People like to be sought for their counsel, but when you ask you must
  listen. All donors are different, try to listen and respond in a manner
  that speaks to their heart.
 Make Your Case Larger than the Institution. Articulate your
  vision for the future in terms of people, impact and outcomes. Not
  raising funds for the institution’s own sake but for the people it serves.
 Design Your Case or Appeal to Move People Intellectually and
  Emotionally. Your case must inspire and challenge prospective donors
  to play a role in making it all happen.
GET PEOPLE INVOLVED: The way to raise real money is to
provide real involvement, put people before dollars. “Investment
follows involvement.”

 Create Authentic Involvement. Ask for insights and opinions.
  Invite people to do something important for you. Enable them to
  develop a strong sense of “buy in” in your organization.

 The Process of Planning is More Important than the
  Plan Itself. Planning for your organization's future presents an
  opportunity for involvement. People become motivated to work
  for and invest in plans they helped develop.

 Share Your Plans Without Asking for Money. Share your
  hopes, your dreams and your plans with your shareholders in a
  setting that is not asking for money. Cultivate relationships by
  seeking their input and feedback on your plans.
 Specifically ask for the Gift you think is Appropriate. General
  appeals will always produce lower results. Segment your appeal to ask
  for an amount that is appropriate for that donor.
 Few Will Do the Most. The 80/20 rule is now a 90/10 rule. Focus
  additional efforts on donors that will produce the greatest results.
 The Early Donor Sets the Pace. "He who gives early gives twice."
  His/her contribution sets an example for others to follow. Identify and
  solicit likely larger donors first. Their giving will encourage others to give.
 Trustees/Board Members Have an Opportunity, Not an
  Obligation. Don't pressure them into giving, but rather create
  opportunities for them to become actively involved and genuinely
  interested in your organization's success.
 Staff Giving Lends Credibility. Voluntary staff contributions convey
  a sense of the value of your organization. Set the example.
 Make Great Investments Possible. Provide donors flexible payment
  periods and opportunities to make non-cash gifts.
Fund Raising is not a dirty word: The fund raiser is an investment
counselor, not a salesman.
 People Give to People. This is a relationship business.
 The Right Person Makes the Difference. Find the right
  person to ask them for the gift. Peer to peer.
 The One Who Asks Must First Give. Actions speak louder
  than words.
 For Larger Gifts, See the Prospect Face to Face. Get as
  personal as you can. Engage the donor in person whenever
 Qualify the Prospect as Best You Can. Consider what the
  prospect is capable of giving, not just what you think they are
  likely to do. Tailor your request to the donor's means, reasons for
  giving and giving history.
 Tenacity Prevails. "If at first you don't succeed, try, try again."
  Don’t write someone off, because they said no. What does “No”
  mean. T.A.P. - Timing, Amount, Project
PRACTICE STEWARDSHIP: The task is not to get an one-time
donation, but to develop a donor relationship…Advocate.
 Giving is Relational, not Transactional. You want the
  donor to feel an emotional connection to the organization and
  the donation….not just write the check.
 The Donor Deserves Good Stewardship. Sincerely
  thank the donor, recognize the donor, fulfill promises on how
  the gift is to be use, and report the outcome of their
 The Best Advocate is Both Donor and Volunteer.
  Engage your donors to become more involved and advocates
  for your organization. The advocate gives and asks
  others to give, works and asks others to work.
Fundraising - How do we get
Mission and Vision
 Horst Schulze - Know who you are, who you want
  to be and what your promise is
      Who are you?
      What is your mission?
      Why is what you do important?
 How will donor support enhance your mission?
 What are your priorities and opportunities for
  donor support?
 Build your Case for Support?
Make the
                         Set your
Who is your Audience…Prospects

 Campers/Alumni
 Former Camp Counselors
 Parents and Families
 Guest Groups
 Volunteers
 Church Partners
Engaging your Audiences
  Data is Key!
   ◦ How are you collecting data?
   ◦ How are you updating data?
   ◦ What data are you collecting and on whom are collecting it?
   ◦ How are you using your data?
   ◦ Are you sufficiently recording gifts and tracking this information?
   ◦ Is your data secure?
  Communication and engagement strategy for each group
  Opportunities for involvement during and after their camp
  Opportunities to engage in stewardship or service activities
  Make “their” camp a part of their lives…ownership!
Types of Giving Programs
Level 1 Giving - On-Site Giving: Engage your constituents while
they are on-site.
 Love offering, service project, t-shirt sale with the profits benefiting a
tangible project.
 A majority of donors’ first gift will be spontaneous.
 Have materials, a display, gift envelops or “Wish List” available for
when they visit.
 Establish a gift club. Ask your guests to consider a small membership
fee to a gift club. Provide them a sticker for their car and invite them to
any special events. Give them priority registration for future camps.
Types of Giving Programs
Level 2 Giving - Annual Giving Program: Engage your constituents on an
annual basis through letters, phone calls, peer to peer visits, reunion class,
email and social media.
 Getting the first gift is the hardest. When donors make their year-end gift
decisions, you must be at the table.
 Continue to build your membership club through direct appeals. Begin to
ask donors to give beyond their initial membership.
 As you build your donor base, ask your donors to continue to support you
each year.
 Support your annual appeals with special events, ask for gifts during certain
milestones in the life of the camp, host reunion groups or family weekends, and
ask for reunion gifts on the anniversary of campers’ camp experience.
Types of Giving Programs
Level 2 Giving - Annual Giving Program (cont.):
 Ask those closest to you to serve on a volunteer development
board. Volunteers can write a letter on your behalf and be an
advocate for your organization to their peers.
 Involve current camp counselors to contact previous camp
employees to ask to give, share stories and thank for previous
 Support your efforts with gift information on your web-site.
Enable donors to easily make on-line gifts, as well as information
on giving opportunities, your “wish list”, as well as how they can
support you long-term through planned gifts.
Types of Giving Programs
Level 3 Giving – A Campaigns: Once you have a growing donor base,
you may want to initiate a short-term capital campaign. These would
usually be used to fund capital construction projects, land acquisition,
one-time special projects or create an endowment fund to support
future operations.
 Capital and endowment campaigns require a pool of donor prospects
from which to recruit lead and substantial gifts that will take the
campaign two-thirds or three-fourths of the way to the campaign goal
before turning to the final public phase to complete the campaign.
 Unless you have a pool of donors with an established track record, it
will be difficult. Most donors at this level strongly identify with
organization and have chosen to focus on your program as a giving
priority in their life.
Types of Giving Programs
Level 4 Giving - Planned Gifts: Donors at this level
identify your organization as one of their most
significant priorities and want to assign a substantial
share of their wealth or assets to make a difference and
leave an enduring legacy.
These types of gifts will require the services of a
professional on the donor’s end, as well as the
organization’s end. The nature of these gifts will vary
based on the intent and needs of each individual donor
Types of Planned Gifts
 Simple Will Bequest
 Name as beneficiary and/or owner of a lift
  insurance policy
 Name as beneficiary of a retirement account,
  make a gift from a retirement account
 Gift of appreciated assets
 Retained life estate
 Charitable Gift Annuity or Trust
Auburn Campaign History

 1960      Auburn University Foundation is formed

 1965      Auburn Annual Fund was established

 1978-85   Auburn Generations Fund Campaign
             Goal $61.7 million   Results $111 million

 1990-96   Campaign Auburn: The Next Generation
             Goal $175 million    Results $201.6 million
Auburn Campaign History Cont.

 2001      Auburn receives three transformational gifts
             Name the College of Engineering
             Name the School of Pharmacy
             Gift to build and name a new art museum

 Oct. 2001 Auburn launches its third campaign
            “The It Begins at Auburn” campaign
             Goal $500 million         Results $608.8 million

 Next Campaign Likely implementation in June 2012
Sources of Funds
Final Thoughts
 People give to and support what they value
  and believe in
 People give to make a difference in the lives of
 People give to organizations in which they believe
  in the leadership
 People give to well run organizations
 People give to organizations that have
  made a difference in their life

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