1. Club Leadership Workshop Scholarships and Fundraising June 2, 2007 Presented by Denise D’Allura and Sondra Fonville

2. Major/Special Gifts Annual Gifts Event-driven Small Number of Donors; Larger Gifts Larger Number of Donors; Smaller Gifts Largest Number of prospects Supporting Club Activities; Smallest Amounts of Support Encourage awareness and philanthropy to scholarship efforts Partner with “Development” Renewal and upgrade of current donors Club Scholarship Fundraising Model

3. ZZZZZZZZZZZ….. Okay the Pyramid is a little Dull Let’s talk Courtship!

4. Stage 1. Meeting the right person “Loves kids, dogs, and Grandma” Translates to: “Has a passion for scholarship and has capacity to give”

5. Practical Tips for Clubs ‘Work’ Your events Look for those with interest Gauge Capacity Diverse events attract diverse pocket books The best prospects are not always the obvious ones

6. Stage 2: Showing your best side Talk about the things that will gain their interest

7. Practical Tips for Clubs Build Awareness It is about the students Use your tools

8. A Few Case Points Nearly 50% of undergraduate students at the U-M receive need-based financial aid; Poor students less likely to apply; 14% report family earnings under $50,000 Are we competitive? Out-of-state tuition is approximately $40,000 Close to the yearly cost of out-of-state Ivy League institutions & $10,000 more than the cost to attend Ohio State. U-M students borrow more than the national average Unmet need for non-residents has increased from a low of $922 to over $11,000 a year. Endowment dollars per student than many of competing institutions: Princeton $1.492 million/student Harvard$1.147 million/student Yale$1.2 million/student Northwestern$276,000/student Duke$205,000/student U-M$76,800/student

9. Asking for a date Texting E-mail Phone Call Face to Face Specific time and Place Catered to your dates interest

10. Stage 3: Dating Some will be winners, some will be losers, and some will be friends for life Translates to: Some will give, some won’t, and among those you meet there will be a big giver

11. Practical Tips for Clubs Acquisition ‘Dating’ can be expensive Personal/genuine is better We can help by: Involving the Office of Annual Giving Giving you advice on your solicitation pieces Renewing is easier and cheaper Upgrading should be easy with the right stewardship

12. Stage 4: Really getting to know each other

13. Practical Tips for Clubs Develop a Strategic but Genuine Approach in collaboration with AAUM Development Cultivate by Involve Involve with Students In fundraising Giving Advice and feedback Thanking Understand their interests Coordinate with On-campus interests

14. Stage 5: The Proposal No one should be surprised when you pop the question! Asking for a big gift shouldn’t be any different

15. Practical Tips for Clubs If done right it should feel like an audit or a root canal but be a genuine progression of the relationship Your job doesn’t end here, stewardship is Critical A gift is the beginning of a life long relationships Big gifts are not always about Cash, there are many creative ways a person who wants to give can give

16. It will work! A case study: “Jose Approach” Club volunteers leveraging their networks ‘All about the Students’ Continued Communication

17. Results Year 1 Results April 2006-2007 Gift Level# of GiftsTotal $250 96$8,430 $499 28$7,600 $999 15$7,750 $2,499 11$11,500 $4,999 3$7,500 $9,999 2$12,500 $10,000+3$80,360 158$135,640 96 Gifts 6% of Money 57 Gifts 26% of Money 8 Gifts 68% of Money Smaller Gifts Led to Big Gifts

18. Year 2 Already raised $45,000 Including a $10,000 and $25,000 gift Cultivation in process for at least 2 new major prospects

19. How we work together Major/Special Gifts Annual Gifts Event-driven Small Number of Donors; Larger Gifts Larger Number of Donors; Smaller Gifts Largest Number of prospects Supporting Club Activities; Smallest Amounts of Support Encourage awareness and philanthropy to scholarship efforts Partner with “Development” Renewal and upgrade of current donors Club Scholarship Fundraising Model

21. Gift Processing Logistics All gifts should be processed individually through the AAUM* Made payable to University of Michigan Ensures Receipt and Tax Deduction for individual Credit towards University Recognition Events Must deduct the fair market value of attendance to get the tax deductible portion Must provide disclosure if payment is greater than $75

22. Awarding Scholarships Now you have the Money how do you award it? Working Financial Aid 101

23. Awarding Your U-M Club Scholarships The “Honeymoon” How Need Based Aid is determined Treatment of UM-Club Scholarships in the Financial Aid “Package” Tips for Selecting and Awarding Scholarships to Students Keeping Track of Your Scholarship Account

24. Determining Need-Based Aid Financial Aid Programs were created with the idea that the primary responsibility for paying for college costs rests with the student and his or her family. Need-based financial aid is available to families who demonstrate a need for additional resources to help pay college costs.

25. Determining Need-Based Aid The formula used to determine whether a student is eligible for need-based aid is: Cost of Attendance - Expected Family Contribution (EFC) -Scholarships/Other Resources = Need For Aid

26. Treatment of U-M Club Scholarships in the Financial Aid “Package” Scholarships recognize outstanding academic achievement and they improve the overall quality of the financial aid package. Although scholarships are included as a resource when determining eligibility for need-based aid, they can nonetheless reduce the need for a student to borrow or work.

27. Treatment of U-M Club Scholarships in the Financial Aid “Package” Scholarships are first, used to meet any gap between the cost of attendance, how much the family is expected to pay and the financial aid offered. Next, they will reduce the amount of need-based loan or work-study.

28. Treatment of U-M Club Scholarships in the Financial Aid “Package” Resident Student Total Cost of Attendance$20,973 Expected Family Contribution- 10,701 Gross Need $10,272

29. Treatment of U-M Club Scholarships in the Financial Aid “Package” Resident Student Aid Package Using 2006-2007 Figures EFC$10,701 Grants 2,199 Federal Work-Study 2,500 Federal Loans + 5,573* Total Aid = $10,272 = 20,973 If this student received a $2,500* scholarship, Federal Loans would be reduced by $2,500.

30. Treatment of U-M Club Scholarships in the Financial Aid “Package” Non-Resident Student Total Cost of Attendance$40,381 Expected Family Contribution- 10,701 Gross Need$29,680

31. Treatment of U-M Club Scholarships in the Financial Aid “Package” Non-Resident Student Aid Package Using 2006-2007 Figures EFC$10,701 Grants 7,999 Federal Work-Study 3,000 Federal Loans + 7,500 Total Aid = $18,499 = 29,200 If this student received a $2,500 scholarship, aid would not be reduced. The scholarship would go towards the gap of unmet need.

32. Treatment of U-M Club Scholarships in the Financial Aid “Package” Suggestions for Scholarship Amounts? Resident Students $2,500 Non-Resident Students $3,000 - $5,000

33. Tips for Selecting and Awarding Scholarships to Students U-M Clubs approach the scholarship process in a variety of ways; however, many request student rosters to identify the students from their area.

34. Tips for Selecting and Awarding Scholarships to Students There are two ways to request a roster: 1. The Alumni Association Roster Request Form at: http://alumni.umich.edu/recruitment/rost er-request.php http://alumni.umich.edu/recruitment/rost er-request.php 2. Contact your Office of Financial Aid Liaison

35. Tips for Selecting and Awarding Scholarships to Students There are Important Things to Understand When Requesting a Roster 1. Student’s admission status 2. Timing of your request 3. Available information 4. Roster “Quirks”

36. Tips for Selecting and Awarding Scholarships to Students Admission Status The Office of Financial Aid only includes admitted students on the rosters we produce. There are basically two “types” of admitted students. 1. Admitted 2. Matriculated

37. Tips for Selecting and Awarding Scholarships to Students Timing Timing is important for two reasons: 1. Students may or may not appear on a roster based on their admission status at the time a roster is requested. 2. Based on the type of scholarship you are awarding (Merit vs. Need criteria), timing can make a difference in when you may want to request your roster.

38. Tips for Selecting and Awarding Scholarships to Students Available Information Typically, only contact information is provided on rosters. This information includes names, addresses, phone numbers and email addresses. We are often asked to disclose the need of Individual students, and while we are unable to do this, we can rank students according to need.

39. Tips for Selecting and Awarding Scholarships to Students Roster “Quirks” Addresses and Zip Codes Verifying Need Changes in Admission Status

40. Keeping Track of Your Scholarship Account Annual Reports are available. Please contact your liaison if you are not currently receiving one, and would like to. We hope to have a better system for reporting in place in the near future. Until then, please ask, ask, ask if you need anything.

41. Contact Information Office of Financial Aid University of Michigan 2011 Student Activities Building 515 E. Jefferson Street Ann Arbor, MI 48109-1316 (734) 763-4119 Angie Grunow algrunow@umich.edualgrunow@umich.edu Eileen Brussulo efc@umich.eduefc@umich.edu Sondra Fonvillesondaka@umich.edusondaka@umich.edu Al Hermsen ahermsen@umich.eduahermsen@umich.edu