Summer Seminar 2012

Development 2012: Myths, Realities, and Best Practices

Application of Development “Best Practices” Model

National Statistics1,205 Catholic high schools in the country.

Average Catholic High School Enrollment:2009-10: 607 (fairly steady in the decade)2010-11: 535 (down 12%)

Tuition and Costs:Mean tuition: $8,800 Per Pupil Cost: $10,800

(27% incr. since ‘07) (24% incr. since ‘07)

Mean “Gap”: $2,000 per student (increase of 11% since ‘07)

Enrollment/Size:

<50: 3%

50-149: 21%

150-299: 40%

300-499: 21%

500-749: 10%

750+: 5%

National Statistics

National Statistics 42% of schools were conducting capital campaigns. Average endow: $3.7 mil. – half reported < $1.3 mil.

in endowment. Average % of students requiring financial aid = 40%

and rising. Average tuition increase = 4%. 55% have President/Principal operating model. Average enrollment 535.

Conclusions Enrollment trend is down

Demographics

Competition

Cost

“Gap” is widening

Upward pressure on costs

Downward pressure on tuition

Results?

Increased pressure on recruiting/admissions

Increased pressure on advancement

Trends

Scope, sophistication and expectation of development has increased dramatically.

Less emphasis on ‘periodic capital campaigns’.

More emphasis on perpetual funding initiative – fund the strategic plan.

The need is to increase all annual funding form all components – AG, MG,PG.

Advancement TrendsComprehensive funding initiatives – some schools

aren’t calling it a ‘capital campaign’.Emerging from the institutional strategic plan.Emphasis on perpetual funding initiative – fund

the strategic plan.Transition from ‘periodic capital campaign’ and

periodic focus on major gifts to:‘Maximize philanthropic potential on a yearly

basis’ from each fundamental source: AG, MG, PG.

Where Investments Come From 84% of all financial donations (nation wide) come from

individuals (5% from corps., 11% foundations).

In a capital campaign/major gift initiative, 70% of the goal will come from the top 10-20 commitments (or top 8-10% of the giving pyramid).

In education, alumni and parents are the primary prospects.

Foundations are secondary prospects; corporations are seldom prospects.

Fundraising & AdvancementFundraising:

–Is ‘mass communication’ oriented.–Makes few distinctions, considers all constituents equally.–Same approach to all.–Is activity oriented – events, premiums (raffle tickets, bake sales, etc.)–Has a low marginal cost effectiveness rate.–Is an effective method of raising some money.

Advancement:–Is personal and relationship oriented.–Distinguishes higher potential.–Is strategic in nature: mission-centered.–Requires a customized approach to all.–Is more results oriented.–Is the most cost effective method; will raise exponentially more money.

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RELATIONSHIPS AND PARTICIPATION

Our Model

Maximize

Philanthropic Potential

Catholic H.S. Advancement –‘Best Practices’

Annual Fund:

supports the operating budget, funds the “gap” focuses on current & past parents, alumni national averages: 14% alumni support, 27% parent

support average amount raised $400,000

Major Gifts:

Supports institutional capital priorities (facilities, endowment, programs, technology)

Focuses on top of the pyramid prospects - those that have the wealth and the interest in making philanthropic investments in the school’s mission

<5% of the constituency base has major gift potential

Catholic H.S Advancement – ‘Best Practices’

Planned Gifts:

legacy commitments – wills, insurance policies, etc. usually earmarked for endowment focus on the securing the future of the institution

‘Strategic’ Events:

typically two per year – one in the fall, one in the spring traditionally include an auction and one other ‘major’ event focus primarily on current parents, secondarily on alumni and

past parents usually earmarked for financial aid, current operations, or current

special project

Institutional Leadership

Must GET IT!!Shared vision of the future – Consensus and PRIORITY

of FUNDING COMPONENTSCommitted President/PrincipalCommitted Director of DevelopmentReal Leadership/Board Commitment To AdvancementAllocation of Financial Resources – spend $ to make $Realistic ExpectationsTotal Commitment to the plan and to success – don’t give

up!!

“A herd of deer led by a lion will defeat a herd of lions led by a deer.”

Guiding Principle #1:

RealityAdvancement is part science and part art; but

THERE IS NO MAGIC.

It is all about paying attention to fundamentals, setting the appropriate strategy, then executing.

Guiding Principle #2

Step by StepA successful advancement initiative is the

result of a series of steps taken one at a time, in the proper sequence, according to a plan and timeline.

At any particular time, leaders should be concerned with only one step.

If that step is not executed properly, the next will be more difficult.

If that step is executed properly, the next will be easier and more effective.

Guiding Principle #3Implementation, Not Ideas, is the Key to

Success Changes that are structural and

transformational are the keys to ensuring high quality outcomes. Substantial increases rather than incremental

(‘fundraising’) and ‘muddling through’ Achieve key strategic objectives (‘advancement’)

Implementation: After all the strategizing and meeting, someone has to go out and do it! That’s YOU!!

Catholic H.S. Advancement – ‘Best Practices’

Purpose: What is the singular objective of the Development

operation?

Focus: Laser-like focus on the ‘right’ things!

Implementation: Execution, getting it done!!

Don’t let this year go by without doing this!