Summer Seminar 2012 Development 2012: Myths, Realities, and Best PracticesApplication of Development “Best Practices” Model
National Statistics 1,205 Catholic high schools in the country. Average Catholic High School Enrollment: 2009-10: 607 (fairly steady in the decade) 2010-11: 535 (down 12%) Tuition and Costs: Mean tuition: $8,800 Per Pupil Cost: $10,800 (27% incr. since ‘07) (24% incr. since ‘07) Mean “Gap”: $2,000 per student (increase of 11% since ‘07)
National Statistics 42% of schools were conducting capital campaigns. Average endow: $3.7 mil. – half reported < $1.3 mil. in endowment. Average % of students requiring financial aid = 40% and rising. Average tuition increase = 4%. 55% have President/Principal operating model. Average enrollment 535.
Conclusions Enrollment trend is down Demographics Competition Cost “Gap” is widening Upward pressure on costs Downward pressure on tuition Results? Increased pressure on recruiting/admissions Increased pressure on advancement
TrendsScope, sophistication and expectation of development has increased dramatically.Less emphasis on ‘periodic capital campaigns’.More emphasis on perpetual funding initiative – fund the strategic plan.The need is to increase all annual funding form all components – AG, MG,PG.
Advancement TrendsComprehensive funding initiatives – some schools aren’t calling it a ‘capital campaign’.Emerging from the institutional strategic plan.Emphasis on perpetual funding initiative – fund the strategic plan.Transition from ‘periodic capital campaign’ and periodic focus on major gifts to:‘Maximize philanthropic potential on a yearly basis’ from each fundamental source: AG, MG, PG.
Where Investments Come From 84% of all financial donations (nation wide) come from individuals (5% from corps., 11% foundations). In a capital campaign/major gift initiative, 70% of the goal will come from the top 10-20 commitments (or top 8-10% of the giving pyramid). In education, alumni and parents are the primary prospects. Foundations are secondary prospects; corporations are seldom prospects.
Fundraising & AdvancementFundraising: –Is ‘mass communication’ oriented. –Makes few distinctions, considers all constituents equally. –Same approach to all. –Is activity oriented – events, premiums (raffle tickets, bake sales, etc.) –Has a low marginal cost effectiveness rate. –Is an effective method of raising some money.Advancement: –Is personal and relationship oriented. –Distinguishes higher potential. –Is strategic in nature: mission-centered. –Requires a customized approach to all. –Is more results oriented. –Is the most cost effective method; will raise exponentially more money.
Our Model Maximize R Philanthropic VE RE FO RO W Potential OR M TO Y DATO RELATIONSHIPS AND PARTICIPATION
Catholic H.S. Advancement – ‘Best Practices’ Annual Fund: supports the operating budget, funds the “gap” focuses on current & past parents, alumni national averages: 14% alumni support, 27% parent support average amount raised $400,000 Major Gifts: Supports institutional capital priorities (facilities, endowment, programs, technology) Focuses on top of the pyramid prospects - those that have the wealth and the interest in making philanthropic investments in the school’s mission <5% of the constituency base has major gift potential
Catholic H.S Advancement – ‘Best Practices’ Planned Gifts: legacy commitments – wills, insurance policies, etc. usually earmarked for endowment focus on the securing the future of the institution ‘Strategic’ Events: typically two per year – one in the fall, one in the spring traditionally include an auction and one other ‘major’ event focus primarily on current parents, secondarily on alumni and past parents usually earmarked for financial aid, current operations, or current special project
Institutional Leadership“A herd of deer led by a lion will defeat a herd of lions led by a deer.”Must GET IT!!Shared vision of the future – Consensus and PRIORITY of FUNDING COMPONENTSCommitted President/PrincipalCommitted Director of DevelopmentReal Leadership/Board Commitment To AdvancementAllocation of Financial Resources – spend $ to make $Realistic ExpectationsTotal Commitment to the plan and to success – don’t give up!!
Guiding Principle #2 Step by StepA successful advancement initiative is the result of a series of steps taken one at a time, in the proper sequence, according to a plan and timeline.At any particular time, leaders should be concerned with only one step.If that step is not executed properly, the next will be more difficult. If that step is executed properly, the next will be easier and more effective.
Guiding Principle #3 Implementation, Not Ideas, is the Key to Success Changes that are structural and transformational are the keys to ensuring high quality outcomes. Substantial increases rather than incremental (‘fundraising’) and ‘muddling through’ Achieve key strategic objectives (‘advancement’) Implementation: After all the strategizing and meeting, someone has to go out and do it! That’s YOU!!
Catholic H.S. Advancement – ‘Best Practices’ Purpose: What is the singular objective of the Development operation? Focus: Laser-like focus on the ‘right’ things! Implementation: Execution, getting it done!! Don’t let this year go by without doing this!