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Higher Education Fund RaisingHigher Education Fund Raising
Timothy C. Caboni
Assistant Dean
Vanderbilt Universitys Peabody College
Presentation to the
National Press Foundation
31 October 2006
New York, New York
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PLANNED
GIVING
Bequests
Wills/Legacies
Estate Gifts
NetWorth Gifts
MAJOR GIVING
Endowment Campaigns
Capital Campaigns
Special Projects
From Individuals/Corporations & Foundations
ANNUALGIVING TO/FROM I.E.
SupportGroups
SpecialEventsandBenefits
Annual Campaigns
DirectMail Program
Thegeneralpublic
Investment
Involvement
Interest
Information
Identification
Pyramid of Giving
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Gift PyramidGift Pyramid 60% of gifts come from 10% of donors
15-25% of gifts come from 20% of donors
15-25% of gifts come from 70% of donors
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Building and Maintaining the BaseBuilding and Maintaining the Base
Acquisition mailings Enlist new donors
NeverGivers
Renewals produce income (sybunts,
lybunts)
First time givers renew at 50% rate, after
that, 70-80%
50% or your returns come in the first week
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PLANNED
GIVING
Bequests
Wills/Legacies
EstateGifts
NetWorthGifts
MAJOR GIVING
Endowment Campaigns
Capital Campaigns
Special Projects
From Individuals/Corporations & Foundations
ANNUALGIVING TO/FROM I.E.
SupportGroups
SpecialEventsandBenefits
Annual Campaigns
DirectMail Program
Thegeneralpublic
Investment
Involvement
Interest
Information
Identification
Pyramid of Giving
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Stages in the cycleStages in the cycle
1 Identification
2 Research
3 Planning
4 Cultivation
5 Solicitation
6 Stewardship
7 Renewal
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Principles ofGift ChartsPrinciples ofGift Charts The first two gifts should equal 10% of the goal:
$100,000
The next four gifts equal an additional 10% of thegoal: $100,000
The remaining gifts are flexible and can be broken
down into various categories: $800,000.
This chart is most effective with fundraising goals
of $25,000 or more
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$1M Gift Table$1M Gift Table
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Efficiency vs. EffectivenessEfficiency vs. EffectivenessDifference between effectiveness (maximizing the netbetween total gifts less fund raising costs) and efficiency
(minimizing the average cost per dollar raised)
The objective of an institution's fund-raising program
should not be to spend as little as possible each year to
raise money, but to maximize the net.
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Efficiency vs. EffectivenessEfficiency vs. Effectiveness
A program that annually produces $2 million at acost of $160,000, or 8 percent, may look good andis indeed efficient, but one that produces $3million at a cost of $300,000, or 10 percent, ispresumably of more help to the institution [i.e.,
more effective]
-- it is bringing in $860,000 more.
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Return on Investment AnalysisReturn on Investment Analysis ROI = Funds raised as a percentage of fund
raising expenses
Bottom line cost percentages are not a
useful measurement for internal
management purposes
Performance of one kind of fund raisingprogram cannot be evaluated against others
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ROI AnalysisROI AnalysisCategory of Fund Raising Activity
Fund RaisingInvestments # of Gifts
Amount ofGifts
Average GiftSize ROI
MinimumROI
ROI VarianceAbove/Below
I. Capacity Building (Not intendedto produce net income)
Non-income producing capacity building 120,000$ NA NA NADonor acquisition (Constituencybuilding) 550,000$ 2,683 345,000$ 129$ 63%
Public Relations and Alumni Relations 120,000$ 45 24,000$ 533$ 20%
Total Capacity Building 790,000$ 1,385 369,000$ 266$ 47%Fund Raising Costs % 214%
II. Net Income ProducingDonor renewal - soliciting prior donors
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Contact InformationContact Information
Timothy C. Caboni
Vanderbilt Universitys Peabody College
Box #514
Nashville, TN 37203
615-343-6222
peabody.vanderbilt.edu/faculty/lpo/caboni.htm