The Organization of Development

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The Organization of Development

• Department Heads Chairs
• November 29, 2007
• Judy Kirk

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Vision
University Development
Mission
To engage the resources of the private sector to
build and sustain excellence at the University
of Minnesota.
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Why We Were Formed

• The University of Minnesota Foundation was formed
  to accept
• and manage gifts on behalf of the University and
  its colleges, campuses
• and programs.
• Specifically, it
• Exists to support the Universitys interests.
• Secures, manages and invests private support for
  the benefit of the University.
• Provides private support for a portion of the
  operations or programs of the University.
• Uses sound fiscal and auditing procedures.
• Obtains and maintains status as a tax exempt
  organization.

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Fundraising at the U of M

• UMF relationship with the University includes
  development oversight and services
• Strategic U-wide development leadership
• Campaign planning and implementation
• Delivery of comprehensive development services
  for U-wide Development (i.e. technology, legal,
  donor relations, gift administration, annual
  giving, communications)
• Financial subsidies to collegiate development
  programs
• Endowment investment management
• Assessments across colleges/programs for
  continued program support or new investment

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Historical Campaign Summary

• 1985-88, Minnesota Campaign Focus 100 endowed
  faculty positions
• Result 111 added
• 1989-96, Mini-Campaigns Focus New renovated
  facilities
• Weisman, Ted Mann Concert Hall,
  Mariucci Arena, Williams Arena Sports
  Pavilion
• 1997-03, Campaign Minnesota Focus Support for
  faculty, students, facilities research
• Result All goals exceeded
• 2004-Now, Mini-Campaigns Focus Scholarships,
  fellowships, new facilities
• On-campus stadium, translational
  research, Carlson School addition, Bell
  Museum, Equine Center, Weisman addition

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Campaign Minnesota Highlights
Campaign Minnesota A Historic Achievement

• 1,655,703,867 raised, or 127 of goal
• 220,000 donors
• Major impact on faculty and students
• What this means for future of fund raising at the
  U
• A 30 increase in number of donors
• 113,000 first-time donors
• 11,000 faculty and staff donors

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Historical Gift Production
2-year Average
26
51
76
216
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Impact of Giving
Who donates? (FY07)
87,167 total donors
Corporations, foundations, organizations 5,123
donors 70M
28
Individuals (non-alum) 29,369 donors 70M
Alumni 51,073 donors 97M

Faculty/Staff 1,602 donors
14M
Donors of 2007 Gifts
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National Rankings
Growth in Voluntary Support (in millions)

National ranking among Public private
universities 14
15 15
14 14 Public universities
only 4
7 5
5 4
10
National Rankings
Voluntary Support of Education - 2006
(In Millions)

• Private and Public
• Stanford 911
• Harvard 595
• Yale 433
• Pennsylvania 409
• Cornell 406
• Southern California 406
• Johns Hopkins 377
• Columbia 377
• Duke 332
• Wisconsin 326

• UCLA 320
• Washington 316
• New York U 280
• Minnesota 267
• Northwestern 253
• Michigan 251
• Indiana 248
• UC - Berkeley 246
• U of Chicago 237
• UNC Chapel Hill 237

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Impact of Giving
Combined University Endowments (in millions)
As of June 30

2,819
2,255
1,965
1,728
1,515
National ranking among Public private
universities 25 25
25 25
na Public universities only
6 6
6 6
na
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Impact of Giving - Highlights

• 404 endowed chairs from 17 in 1985
• 191.3 raised for Scholarship Campaign.
• Growth in scholarships and fellowships
• 378 fellowships, 463 scholarships
• Endowment exceeds 407M.
• 46 increase in of students receiving support.
• 128M raised, Campaign Minnesota.
• Built, renovated 25 facilities, including
• -Architecture addition -McNamara Alumni Center
• -Microbial Plant Genomics -Murphy Hall
• -Amundson Hall -Barbara Baker Dance Center
• -Weber Music Hall, UMD -Showboat
• -Studio Arts -Fitness Center, Morris
• -Andersen Library -Arboretum Visitor
• -Mechanical Engineering -Learning Centers
• -Science Building, UMD -Densford Nursing Center

As of October 31, 2007
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National Giving Trends

• Multimillion-dollar gifts from donors seeking to
  change the worlda huge opportunity!
• Donors not motivated by needs as much as by
  opportunities
• Interdisciplinary programs attract leadership
  gifts
• Growing interest in seeing immediate impact
• Donors want to see results, accountability
• Increasingly, donors want to know the
  measurable outcomes before making a sizeable
  gift
• Sources of support are changing
• Alumni support critical to successful
  campaigns
• Corporate funding growing at much slower rate
  than in recent past
• Demand increasing for good, experienced
  fundraisers

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Critical Success Factors

• A Compelling Case
• Aligns Us vision, strengths, priorities with
  donors dreams, passions goals.

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Critical Success Factors
Transformational Gifts Possess unique capacity
to alter the programs, perception and future of
an organization Traditionally defined by the
impact on an organization, and size relative to
the overall budget. People no longer give to
charity, they buy into results. Peter F.
Drucker, renown business writer,
management consultant university professor UMN
transformational gift level ? 25 million
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Critical Success Factors
Transformational Gifts

• Nationally, largest 10 gifts to universities
• Totaled 757M or average of 76M each.
• 7 went to private schools 3 to publics.
• 8 from alumni of those institutions.
• Us Experience
• Twelve 10 Million gifts in last decade
• 11 business founders or executives
• 10 were alumni
• 9 were volunteers prior to the gift
• Age range 56-85 median, 66
• Why did these alumni give?
• Passion for, connection to the institution
• Desire to have an impact on the world

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Critical Success Factors

• Leadership Commitment Focus
• Integration of private support into Us
  long-range planning.
• U leaders committed to building strong
  relationships with alumni, donors.
• Volunteer leaders meaningfully engaged in life of
  U fund-raising.

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Critical Success Factors

• Volunteer Commitment Engagement
• Energetic force that drives momentum of campaign
  success
• Us front-line advocates
• Expand networks and access to additional
  prospects
• Share indispensable expertise
• Give of their own time and financial resources

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Critical Success Factors

• A Top-Quality Development Operation
• Ability to attract, retain top professional
  talent.
• Effective coordination in decentralized culture.
• Strong central services.
• Budget appropriate for the potential.
• Cost to raise 1 at the UofM has averaged only
  9.4 cents annually for past decade.
• ROI 7-15 raised for each 1 invested in
  development

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Relationship with College/Unit
UMF Strategic Partnerships Collegiate
Development Colleagues
Chancellors/Deans/Directors

• Search process consultation (descriptions,
  search committee resources, networking)
• Financial subsidy
• Compensation consultation and market analysis
• Performance management consultation
• Development strategy consultation

• New employee orientation
• Monthly development meetings
• Training opportunities
• Donor consultation
• Central development services
• Rewards and recognition

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Relationship with College/Unit

• Your Chief Development Officer
• Is a trained professional in major gift fund
  raising
• Understands your units mission of work
• Has great people skills
• Has passion and commitment
• Has high ethical standards
• Is donor-centered

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Relationship with College/Unit

• How you can help your CDO
• Have trust in their expertise and experience
• Be patient building long-term relationships
  takes time
• Get involved help your development officers
  understand your goals and be available to help
  donors learn more about you
• Adopt a long-term vision

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Giving Trends

• Motivations for giving
• To leave a legacy
• To support things they care about
• To support a passion for a cause or vision
• To give back in gratitude for what his/her
  University did for them

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Why People Give

• Larry and Nancy Bentson
• Following family tradition of giving.
• Established endowment for undergraduate
  scholarships with 10 million gift in 2005.
• In the first year, 66 students were Bentson
  Scholars. This school year The Bentson Family
  Scholarship will provide 185 students with about
  5,000 annually for four years or more.
• The Bentsons have led lives rich with loving
  family, friends and financial prosperity. Now
  they want to help students experience the same.

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