Strategies for Successful Capital Campaigns and Fundraising James L. Lanier, Senior Fellow and Consultant, AGB lanierj@suddenlink.net 202.580.5194 Ohio Statewide Program for Board Members and Trustees November 9, 2017 Strategies for Successful Capital Campaigns and Fundraising 1

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

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

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

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

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

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?”

Major Gifts and Campaigns

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

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

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

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

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

The Fund-Raising Cycle

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

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

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

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

“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

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

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

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!!!

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

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

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

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

“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