Future Perspectives of Funding Higher Education Carolinas Annual Fund Conference April 23, 2014 Charleston, SC

Ralph Patterson Vice President for University Advancement Executive Director Lander Foundation 2

Staff Ralph PattersonVPUA/Lander Foundation Myra Greene Alumni Director/Annual Giving Debbie DillAsst. Alumni Director Linda KiddAdministrative Assistant Peggy CromerFoundation Accountant Donna JohnsonGifts Manager Aren’t we missing something?

Say, what? Conversation I had this summer with our board of trustees…….”So, you want us to double the endowment, and increase annual giving by 50% over the next five years? And, that our wealth sweep showed that we should be asking 87% of our alumni for $250 a year…or less? And, you recognize that we are understaffed, and don’t have money for a campaign budget…and our president is leaving…. Let’s bring some common sense to this conversation……….

Historically, how many individuals have given Lander a gift of six figures? Only 5 (five) donors made a gift of six figures in the life of the last campaign (2001 – 2007). Only 7 (seven) donors have made gifts totaling six figures (cumulative giving ) from 1980 to

Wealth Sweep Individuals in our data base, according to Blackbaud Analytics » Total 2 have a five year giving capacity of $100,000+ a year/five years $1,000, have a five year giving capacity of $50,001 - $100,000 $5,000, have a five year giving capacity of $25,001 - $50,000 $12,250, have a five year giving capacity of $10,001 - $25,000 $10,750, have a five year giving capacity of $5,001 - $10,000 $ 5,750, have a five year giving capacity of $2,501 - $5,000 $ 5,875, have a five year giving capacity of $1,001 - $2,500 $ 4,862, have a five year giving capacity of $501 - $1,000 $ 4,670,000 1,437 have a five year giving capacity of $251 - $500 $ 3,592,500 5,694 have a five year giving capacity of $101 - $250 $ 7,117,500 3,601 have a five year giving capacity of $51 - $$100 $ 1,800,500 5,203 have a five year giving capacity of $1 - $50 $ 1,300,750 Total Potential $63,968,750 * 17,775 in our data base. We have less than 16,000 good addresses 6

Think in thirds In most campaigns, donors fall into three categories. Group one will contain our top 15 to 20 donors. From this small group we’ll receive a third of our money goal…might take more donors than 20 to reach 1/3. Group two will be our next 100 to 150 donors, from whom another third of our funds will come….might take more donors than 150… Group three is everyone else – hopefully thousands of donors – remember the importance of building our base of donors through our annual giving – The Forever Lander Fund! 7

Table of gifts…now let me be more specific Most colleges and universities with a culture of giving and a well staffed development team with a good infrastructure, need 4 prospects to get 1 major gift. Based on our wealth sweep and research, it’s realistic to think we will need 8 prospects to get 1 major gift. Table of gifts using the example of $15 million as the campaign goal …. 8

Lander University Table of Gifts EXAMPLE OBJECTIVE: $15,000,000 Gifts(Donors)AmountTotal Cumulative TotalPercentage of Goal TOP 27 Gifts – 168 prospects 1(8)Gift of $1,000,000$1,000,000 $1,000,0006.7% 2(16)Gift of $500,000$1,000,000 $2,000,00013% 8(64)Gift of $250,000$2,000,000 $4,000,00026% 16(128)Gift of $100,000$1,600,000 $5,600,00037% Next 350 Gifts- 2,800 prospects 50(400)Gift of$50,000$2,500,000 $8,100,00054% 100(800)Gift of$25,000$2,500,000 $10,600, % 200(1600)Gift of$10,000$2,000,000 $12,600,00084% Next 1,200 gifts – 9,600 prospects 400(3200)Gift of $5,000$2,000,000 $14,600,00097% 800(6400)Gift of $1,000 $800,000 $15,400,000103% 1,577(12,616) 9

7 ways to appeal to Alumni and Friends to encourage gifts to Lander University: Direct Mail Phone-a-thons Lander events on and off campus Reunions Personal Contacts Electronic ( ) Solicitations Social Media 10

Endowed/Funded Scholarships. note: scholarship numbers are through May 24, fiscal year ends June

SITUATIONAL ANALYSIS Where are we now? 12

Our Reality State Funding drops to 8% Enrollment dipped in , drop in revenue of $500,000 Will we continue to decline in School Year ? Our students demographically – – 94% receive some sort of financial aid. Loans/Scholarships Are we reaching ceiling on enrollment??? 13

Increasing Tuition Increasingly difficult to raise tuition annually Students burdened with debt Politically unpopular 14

OUR STRATEGY Toward a Permanent Campaign Mode and Criteria based decisions 15

Donors invest in Programs with purpose Programs with a positive financial return Programs that have social value Defending integrity of their degrees Are there any we should add? 16

Our Strategy is to: Use data from wealth sweep to increase annual giving rates Develop solid base of ENDOWED Gifts: – For SCHOLARSHIPS (with goal of reducing student debt load) – To support PROGRAMS (by funding faculty development, reward teaching, promote research that has direct impact on local/regional economic development, elevates reputation of institution) 17

Lander Scholarship Drive Endowed Scholarships Funded Scholarships (Annual Gifts) Planned Giving Samuel Lander Golf Classic (Scholarships) Need more staff….need more money to run a campaign….

Need New Money… Scholarship Competition. Partner with Admissions Office. Bring great students to campus, raise awareness with alumni and friends that we need to raise money for scholarships. 1.5% Administrative Fee on Endowed Funds. Raise it? New Staff-Charge a 4% to 5% tax on all gifts for the next five years? – to hire new staff members and have a campaign budget

Need New Money… Presidential Transition – Scholarship gifts in honor of outgoing president and his wife (Fundraiser) Retirement Dinner for the president (Fundraiser)

Let’s hear your ideas….