FundraisingforUniversities Brussels April25th2002 2 Agenda UniversityfundraisingpracticesabroadFundraisingmechanismsDo sanddon tsinacademicfundraisingConclusion 4 50 ofdonationstoUSuniversitiescomefromindividuals 5 Privatecontributionsperstudenthavegrownatover50 perdecade 6 About50 ofprivatefundingisusedtofinancecurrentoperations 7 Thetop3fundraisingpublicuniversitiesintheUSraiseasmuchprivatemoneyasthetotalbudgetforuniversitiesinBelgium Students 137450 140000 8 BasedonUSbenchmarks Belgianuniversitiescouldsignificantlyenhancetheirprivatefundraising KUL ULB 9 USfundraisingisnotdoneexclusivelybyprivateuniversities 10 10outofthetoptwentyfundraisinginstitutionsarepublicuniversities public private 11 EventhemostprestigiousEuropeanuniversitieshavesignificantlylowerprivatefundsthantopUSpublicschools 12 USuniversities fundraisingisfacilitatedthroughalargenumberoftax optimaldonationoptions Outright tax deductiblegifts Propertygifts Bequests CharitableLeadTrust Constantincomeproducinggift Variableincomeproducinggift Giftstouniversitiesthatoptimizetaxes CharitablegiftannuityCharitableremainderannuitytrusts PooledincomefundsCharitableremainderunitrusts 13 Mostuniversitieshaveawelldevelopedwebsitetoexplainfiscalissuestopotentialdonors 14 Topfundraisingandqualityeducationarehighlylinked Wealthy universitiescanensurehighqualityeducationthrough BestprofessorsBestresearchandeducationfacilities 15 ThereforemostuniversitieshavesetupBoardsofTrusteestogiveananswertokeyqualityandindependenceissues Howdemandingcanafundingcompanybe Canitrequireaclass roomtobearitsname Canitrequireauniversityresearchteamtoworktogetherwithitsemployees Canithaveanypreemptiverightsontheresultsoftheresearchprogramthattheyhavehelpedfinancing Canithaveaninfluenceontheuniversityrecruitmentpolicy Willprivatefundingbespecificallyinvestedinselectedprojects Underwhichconditionscanafundingcompanyplayanadvisoryroleforaresearchprogram 16 Researchandeducationqualityisguaranteedthroughindependentcontrol Harvardexample EnsurethattheUniversityremainstruetoitsCharterGiveformalconsenttomajorinitiativesandtoappointmentsProvideadvicetotheCorporationElectedbyalumni BoardofOverseers PresidentandFellowsofHarvardCollege TheCorporation OrganiseResearchandeducationRaisefunds 17 Agenda UniversityfundraisingpracticesabroadFundraisingmechanismsDo sanddon tsinacademicfundraisingConclusion 18 Externalfundraisingisonlyonesourceofnon publicfinancingforuniversities Tuitionfees Externalfundraising Entrepreneurialactivities Revenuefrom saleof spin offsInvestmentsSponsoredresearchprojects PrivatesponsorsAlumnidonationsCorporatesponsorsFoundations 19 Alumniandotherindividualdonations 0 2 000USD AlumniParentsAnonymous OnlineformsMailings Typicalamount Typicalsources Typicalapproach 2 000 20 000USD Localentrepreneursandwealthyindividuals oftenalumni InvitepotentialdonorstosocialeventsCreate honor arounddonationResearchanddareask attherightlevel 20 000 1MUSD Localentrepreneursandwealthyindividuals oftenalumni Alumnigroups classof76donatesUSD1M Luck butoftenlinkedtoalumnistatusand oruniversityreputationRelationships 0 20MUSD Verywealthyfamilieswithahistoryofcharitablegiving Luck butoftenlinkedtoalumnistatusand oruniversityreputationProvideprofessionalassistance eg setuptrustthatprovideslife longincomefordonor 20 About5 ofalumnicontibuteyearly Foreveryalumnus approx 50USDisraisedAveragealumnidonation 1000USD5 ofallalumnicontributeyearly 21 EuropeanschoolshavemuchloweralumnicontributionlevelsthanUSschools 22 Corporatedonationsareoftenlinkedtoa tangible return Purewelfare Tangible return Exclusiveaccesstostudents eg exclusivePepsisalesinreturnforlargedonation Primaryaccesstoresearchresults Novartis Berkeleydonation Setupnewresearchfacilitiestoincreasethenumberofengineers Imagebuilding Tiecompanynametorespectedinstitutions professors BancofAmericaDean KBCchair ToyotadonationofUSD1M withoutstringsattachedAnonymousdonations Typicalapproach UserelationshipstogetaccesstocorporateleadersActivelyapproachthemwithawellpreparedfile 23 USfoundations mostimportanttargetiseducation 24 Agenda UniversityfundraisingpracticesabroadFundraisingmechanismsDo sanddon tsinacademicfundraisingConclusion 25 5 Do s inacademicfundraising Invest Createstructure Build cherishrelationships Becreative Distributeequally InvestinagoodteamandsupportProfessionalfund raisingteamAlumnidatabases FacilitateandclarifythegivingprocessOnlinepaymentYearlyforms Whatdougetinreturn Provide tax optimizationadvicetodonors Trytoelaboratecreativesolutionstobestsuitapossiblecorporatedonor 10year noCokeonuniversity inreturnforaUSD25MdonationfromPepsiUofTfundraisergetsadailylistofwealthypatientsintheuniversityhospital Chair 500K 2M EURProfessorship 100000 EURFellow 0 1000EUR 50 ofdonationscomefromindividualsContactwealthyindividualsMakedonorsfeelspecial keeptheminformed Socialevents forthewealthy LecturesfordonorsNewspaperarticlesBuildingsnamedtodonorsPictures platesofdonorsinschool Mostdonationsgotoscienceandbusinessdepartments Distributethemacros