Development  Office   Report <ul><li>UA Science Board of Advisors Meeting </li></ul><ul><li>Friday, October 31, 2008 </li>...
How to Raise Money in a  Declining Economy  <ul><li>Is it time to run for the hills, give up, or just bury  </li></ul><ul>...
• Review basic historical philanthropic statistical data --  Various charitable causes people support --  Individuals, Cor...
How Bad Can it Really Be? <ul><li>Think about it – </li></ul><ul><li>This could be your $200K Ferrari  </li></ul><ul><li>o...
2005 U.S. CONTRIBUTIONS:  BY SOURCE OF CONTRIBUTION  ($260.28 BILLION)  Individuals-76.5% of total giving $199.07 billion ...
2005 U.S. CONTRIBUTIONS:  BY TYPE OF RECIPIENT ORGANIZATION ($260.28 BILLION)  Environment and animals $8.86 3.4% Foundati...
TOTAL U.S. GIVING BY SOURCE BY FIVE-YEAR PERIODS (Adjusted for inflation, $ in billions) Giving USA  uses the CPI to adjus...
GIVING BY INDIVIDUALS 1965 – 2005  ($ in billions) Current dollars Inflation-adjusted dollars
GIVING BY FOUNDATIONS 1965 – 2005  ($ in billions) Data: The Foundation Center Current dollars Inflation-adjusted dollars
GIVING BY CORPORATIONS 1965 – 2005  ($ in billions) Current dollars Inflation-adjusted dollars
TOTAL U.S. GIVING, 1965–2005 (including recessionary periods) Recession Periods in yellow:  1969–70; 1973–75; 1980; 1981–8...
UA FOUNDATION TOTAL GIVING -- IMPACT OF RECESSION PERIODS, 1978–2005  Recession Period Effect on  Giving 1981-1984 - 23% 1...
How Bad Can it Really Be? <ul><li>This painter might be reprimanded by his boss later today….. </li></ul>
Is This Economic Crisis Really Much Different Than Crises from the Past? People seem to have short memories… <ul><ul><ul><...
Is This Economic Crisis Really Much Different Than Crises from the Past?  (cont.) People seem to have short memories… <ul>...
How Bad Can it Really Be? <ul><li>This soldier doesn’t look like he will be promoted any time soon….. </li></ul>
How Do Depressed Economies  Effect the Actions of Donors? <ul><ul><li>Affluent Donors are curtailing their giving </li></u...
How Do Depressed Economies  Effect the Actions of Donors? (cont.) <ul><ul><li>Timing of this economic crisis could cripple...
How Bad Can it Really Be? <ul><li>Life is just is not fair sometimes….. </li></ul>
What Development Strategies Should Be Employed Right Now?  <ul><ul><li>Don’t Panic -- Remain Calm </li></ul></ul><ul><ul><...
What Development Strategies Should Be Employed Right Now? (cont.)  <ul><ul><li>Do not apologize about solicitations </li><...
What Development Strategies Should Be Employed Right Now? (cont.)  <ul><ul><li>Take a Long-Term View of Development </li><...
What Development Strategies Should Be Employed Right Now? (cont.)  <ul><ul><li>Take a Long-Term View of Development </li><...
How Bad Can it Really Be? <ul><li>“ You may want to stop and  get something for dinner on your way home…..” </li></ul>
How Bad Can it Really Be? <ul><li>Honey, at least I wasn’t parked in a no-parking zone….. </li></ul>
How Bad Can it Really Be? <ul><li>Maybe we should just relax and not take all this so seriously….. </li></ul>
How Bad Can it Really Be? <ul><li>Because it will all be over soon….. </li></ul>
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"How to Raise Money in a Recessionary Environment"

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This was a presentation giving at the Fall, 2008 meeting of the University of Arizona College of Science Board of Advisors

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"How to Raise Money in a Recessionary Environment"

  1. 1. Development Office Report <ul><li>UA Science Board of Advisors Meeting </li></ul><ul><li>Friday, October 31, 2008 </li></ul>
  2. 2. How to Raise Money in a Declining Economy <ul><li>Is it time to run for the hills, give up, or just bury </li></ul><ul><li>our heads in the sand? </li></ul>
  3. 3. • Review basic historical philanthropic statistical data -- Various charitable causes people support -- Individuals, Corporations, Foundations -- Impact of Recessions on Philanthropy • 40-Year National philanthropy data • Review Impact of Recent Recessions on UA Foundation
  4. 4. How Bad Can it Really Be? <ul><li>Think about it – </li></ul><ul><li>This could be your $200K Ferrari </li></ul><ul><li>on the bottom….. </li></ul>
  5. 5. 2005 U.S. CONTRIBUTIONS: BY SOURCE OF CONTRIBUTION ($260.28 BILLION) Individuals-76.5% of total giving $199.07 billion Foundations-11.5% $30.00 B Bequests-6.7% $17.44 B Corporations-5.3% of giving $13.77 B
  6. 6. 2005 U.S. CONTRIBUTIONS: BY TYPE OF RECIPIENT ORGANIZATION ($260.28 BILLION) Environment and animals $8.86 3.4% Foundations $21.70 8.3% Human services $25.36 9.7% International affairs $6.39 2.5% Arts, culture, and humanities $13.51 5.2% Public-society benefit $14.03 5.4% Unallocated giving $16.15 6.2% Health $22.54 8.7% Religion $93.18 35.8% Education $38.56 14.8%
  7. 7. TOTAL U.S. GIVING BY SOURCE BY FIVE-YEAR PERIODS (Adjusted for inflation, $ in billions) Giving USA uses the CPI to adjust for inflation. Individuals Bequests Foundations Corporations 1966 –70 2001 – 2005 1996 –00 1991 – 95 1986 –90 1981 – 85 1976 –80 1971 – 75 516.39 549.95 569.54 621.38 740.06 781.02 1,081.51 1,270.83
  8. 8. GIVING BY INDIVIDUALS 1965 – 2005 ($ in billions) Current dollars Inflation-adjusted dollars
  9. 9. GIVING BY FOUNDATIONS 1965 – 2005 ($ in billions) Data: The Foundation Center Current dollars Inflation-adjusted dollars
  10. 10. GIVING BY CORPORATIONS 1965 – 2005 ($ in billions) Current dollars Inflation-adjusted dollars
  11. 11. TOTAL U.S. GIVING, 1965–2005 (including recessionary periods) Recession Periods in yellow: 1969–70; 1973–75; 1980; 1981–82; 1990–91; 2001 Inflation-adjusted dollars Current dollars
  12. 12. UA FOUNDATION TOTAL GIVING -- IMPACT OF RECESSION PERIODS, 1978–2005 Recession Period Effect on Giving 1981-1984 - 23% 1992-1994 - 7% 2000-2003 -16% Giving Period Total Giving 1978-1979 $17.2 million 1985-1986 $26.9 1995-1996 $48.4 2004-2005 $121.1
  13. 13. How Bad Can it Really Be? <ul><li>This painter might be reprimanded by his boss later today….. </li></ul>
  14. 14. Is This Economic Crisis Really Much Different Than Crises from the Past? People seem to have short memories… <ul><ul><ul><li>Remember When?… </li></ul></ul></ul><ul><ul><ul><li>1987 – October 19, Black Monday on Wall Street </li></ul></ul></ul><ul><ul><ul><li>1990’s – Savings & Loan Crisis </li></ul></ul></ul><ul><ul><ul><li>Late 1990’s – Internet/Tech Bubble bursts </li></ul></ul></ul><ul><ul><ul><li>1997 – Asian Economy Meltdown </li></ul></ul></ul><ul><ul><ul><li>2001 – 9/11 and Terrorism grips the country </li></ul></ul></ul>
  15. 15. Is This Economic Crisis Really Much Different Than Crises from the Past? (cont.) People seem to have short memories… <ul><ul><li>Remember When?… </li></ul></ul><ul><ul><li>2002 – Enron/WorldCom and accounting scandals </li></ul></ul><ul><ul><li>2004 – Tsunami in Indonesia </li></ul></ul><ul><ul><li>2005 – Hurricane Katrina </li></ul></ul><ul><ul><ul><ul><li>Natural disasters spur significant donor initiatives across the world </li></ul></ul></ul></ul><ul><ul><li>2007 – Current Economic slowdown begins </li></ul></ul><ul><ul><li>2008 – Mortgage crisis and Wall Street Meltdown </li></ul></ul>
  16. 16. How Bad Can it Really Be? <ul><li>This soldier doesn’t look like he will be promoted any time soon….. </li></ul>
  17. 17. How Do Depressed Economies Effect the Actions of Donors? <ul><ul><li>Affluent Donors are curtailing their giving </li></ul></ul><ul><ul><ul><ul><li>80% of donors feel a significant impact </li></ul></ul></ul></ul><ul><ul><li>51% of wealthy donors plan on giving less this year </li></ul></ul><ul><ul><li>“ Discretionary Philanthropy” is directly affected </li></ul></ul><ul><ul><ul><ul><ul><li>Athletic season tickets – individual games </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Performing Arts – Select performances </li></ul></ul></ul></ul></ul><ul><ul><li>When faced with reduced donor dollars, donors tend to </li></ul></ul><ul><ul><li>cut out individual charity recipients, rather than reduce total amount given to their “charity portfolio” </li></ul></ul>
  18. 18. How Do Depressed Economies Effect the Actions of Donors? (cont.) <ul><ul><li>Timing of this economic crisis could cripple the philanthropic </li></ul></ul><ul><ul><li>community in 2008-2009 </li></ul></ul><ul><ul><ul><ul><li>Majority of charities raise between 40%-50% of their entire annual support in the 4 th quarter </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Some raise 40%+ of their annual revenues in DECEMBER alone </li></ul></ul></ul></ul><ul><ul><li>General Motors eliminates their corporate matching gift program </li></ul></ul><ul><ul><li>Bankrupt Lehman Brothers donated $23M in 2007 </li></ul></ul>
  19. 19. How Bad Can it Really Be? <ul><li>Life is just is not fair sometimes….. </li></ul>
  20. 20. What Development Strategies Should Be Employed Right Now? <ul><ul><li>Don’t Panic -- Remain Calm </li></ul></ul><ul><ul><li>Resist the temptation to pull back on development </li></ul></ul><ul><ul><li>Realize & accept that development results will suffer in the next year </li></ul></ul><ul><ul><li>Advance Year-End appeals </li></ul></ul><ul><ul><ul><ul><li>Make sure mention is made of current economic climate </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Don’t act as if it does not exist – you will look foolish – must show empathy to donors </li></ul></ul></ul></ul><ul><ul><li>Real Estate equity in the past has been a source of donated funds for donors </li></ul></ul>
  21. 21. What Development Strategies Should Be Employed Right Now? (cont.) <ul><ul><li>Do not apologize about solicitations </li></ul></ul><ul><ul><ul><ul><li>Donors know about their own situation, you do not </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Donors will tell you whether it is a good time or if later in the year is better </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Donors are not “giving” to your organization, they are “investing” – They are supporting excellence, in good times and bad </li></ul></ul></ul></ul><ul><ul><li>Focus Specifically on Core Donor Pool </li></ul></ul><ul><ul><ul><ul><li>Thank them for their previous support </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Have students and board members call them </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Let them know how important they are at this critical time </li></ul></ul></ul></ul>
  22. 22. What Development Strategies Should Be Employed Right Now? (cont.) <ul><ul><li>Take a Long-Term View of Development </li></ul></ul><ul><ul><ul><ul><li>Do not get caught up in quarterly or annual results right now </li></ul></ul></ul></ul><ul><ul><ul><ul><li>The College of Science will still be here next year </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Understand that in the next 20-30+ years, over $41 Billion of wealth will be transferred </li></ul></ul></ul></ul><ul><ul><li>Wealthy Can Handle Debt Situation Better Than Middle Class </li></ul></ul><ul><ul><ul><ul><li>Debt held by top 1% amounts to only 3.7% of their total wealth </li></ul></ul></ul></ul><ul><ul><li>Emphasize Planned Gifts and Estate Gifts </li></ul></ul><ul><ul><ul><ul><li>Donors can realize significant guaranteed returns with Gift Annuities </li></ul></ul></ul></ul>
  23. 23. What Development Strategies Should Be Employed Right Now? (cont.) <ul><ul><li>Take a Long-Term View of Development </li></ul></ul><ul><ul><ul><ul><li>Do not get caught up in quarterly or annual results right now </li></ul></ul></ul></ul><ul><ul><ul><ul><li>The College of Science will still be here next year </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Understand that in the next 20-30+ years, over $41 Billion of wealth will be transferred </li></ul></ul></ul></ul><ul><ul><li>Wealthy Can Handle Debt Situation Better Than Middle Class </li></ul></ul><ul><ul><ul><ul><li>Debt held by top 1% amounts to only 3.7% of their total wealth </li></ul></ul></ul></ul><ul><ul><li>Emphasize Planned Gifts and Estate Gifts </li></ul></ul><ul><ul><ul><ul><li>Donors can realize significant guaranteed returns with Gift Annuities </li></ul></ul></ul></ul>
  24. 24. How Bad Can it Really Be? <ul><li>“ You may want to stop and get something for dinner on your way home…..” </li></ul>
  25. 25. How Bad Can it Really Be? <ul><li>Honey, at least I wasn’t parked in a no-parking zone….. </li></ul>
  26. 26. How Bad Can it Really Be? <ul><li>Maybe we should just relax and not take all this so seriously….. </li></ul>
  27. 27. How Bad Can it Really Be? <ul><li>Because it will all be over soon….. </li></ul>

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