4 fundraising guides

FUNDRAISING FOR PRESIDENTS: A GUIDE

By

James M. Langley Founder and President Langley Innovations

TABLE OF CONTENTS FOREWORD

13

BEYOND THE MYTHS AND STEREOTYPES: A TALE OF TWO PRESIDENTS

14

Illustrating the Divide: A Study in Contrasts

15

Stepping Back

29

UNDERSTANDING THE CURRENT FUNDRAISING REALITY

32

Culture is Key

32

Moving from Categories to Objectives

40

Developing Fundraising Objectives into Supportable Projects: A Study in Process at Bentham College

43

The High-Functioning Advancement Attributes Needed to Execute Successful Objectives and Projects

48

BEYOND OBJECTIVES AND PROJECTS

57

The President in the Major Gift Fundraising Process DRILLING DOWN INTO THE PROCESS: ACHIEVING PRESIDENTIAL SUCCESS ACROSS SETTINGS

57 66

Asking

66

The President as Steward

73

Campaigns

76

New Models

78

Institutional Positioning

83

Volunteer Management

89

Events

97

Development of Principles and Policies

99

New Presidents

105

Tying it All Together

108

ADDITIONAL READING

111

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FOREWORD An effective president does so much more than raise funds and shake hands. Your institution’s president is uniquely positioned to scan the horizon and help develop and communicate a vision of the future to prospective donors. In this monograph, Jim Langley, president and founder of Langley Innovations and past vice president for advancement at Georgetown University, contends that the president’s primary role in fundraising is not to ask for money but to create the conditions that attract significant philanthropic investments.

This monograph will offer a forward-thinking look at:

How the president can take a lead role in defining the case for support and identifying inspiring projects defined by specific objectives rather than by categories of institutional need

How the president can define for donors the difference a philanthropic dollar makes in achieving key objectives

The respective roles and responsibilities of the president, the vice president for advancement, and the board chair

The president’s specific role in donor stewardship, campaigns, piloting new models for fundraising, volunteer management, and asking

How to onboard a new president in ways that strengthen rather than stall the work of fundraising

Our monograph opens with A Tale of Two Presidents, a detailed narrative illustrating two institutions – one in which the president takes a traditional approach to executive involvement in fundraising, the other reflecting a more intentional and strategic approach. Enjoy this parable of effective presidential/development partnership and then turn to page 20 to begin reviewing practical strategies for your president.

FUNDRAISING FOR DEANS: A GUIDE By

James M. Langley Founder and President Langley Innovations

TABLE OF CONTENTS STARTING RIGHT

13

Connecting with Your Development Officer

15

Understanding the Dean’s Role

20

Understanding the Case for Support

21

Understanding Donor Psychology

23

THE APPOINTMENT WITH A PROSPECT OR DONOR: DOS AND DON’TS

26

Before the Appointment

26

During the Appointment

Following the Appointment

28 31

ENGAGING PROSPECTS WITH THE STRONGEST PHILANTHROPIC PROPENSITY

Predictive Indicators of Propensity

46

WORKING WITH YOUR PRESIDENT

49

WORKING WITH CENTRAL ADVANCEMENT

51

The Importance of Getting Informed

51

The Importance of a Two-Way Partnership

54

A Word of Caution: If Your Unit is Raising Less Money

54

WORKING WITH ALUMNI RELATIONS: YOUR ENTIRE SCHOOL’S RESPONSIBILITY

57

36

MANAGING PROSPECT PORTFOLIOS

61

The First Tier in Your Portfolio

62

The Second Tier in Your Portfolio

65

The Third Tier in Your Portfolio

66

The Last Tier in Your Portfolio

68

How Large Should Your Portfolio Be?

69

SUSTAINING THE QUALITY OF YOUR DONOR RELATIONSHIPS

71

72

76

Managing Prospect Information

APPENDICES

A. Campaigns: A Primer

77

B. Naming Opportunities: A Word of Warning

82

C. Hiring the Right Development Officer

85

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FOREWORD The role of the dean has evolved quite a bit from being exclusively an academic leader; he or she is increasingly responsible for serving as the college representative for campus-wide events and committees, participating in institutional planning and prioritization exercises, and perhaps most importantly, engaging alumni and actively fundraising for the college.

In this book, Jim Langley, president and founder of Langley Innovations and past vice president for advancement at Georgetown University, contends that the dean’s primary role in fundraising is not exclusively to ask for money but to create the conditions that attract significant philanthropic investments.

Read this report for a forward-thinking look at:

How the dean can take a lead role in defining the case for support and identifying inspiring projects defined by specific objectives rather than by categories of need

The respective roles and responsibilities of the dean, the faculty, and the college development staff

How deans can work most effectively with the president, the central advancement office, and their development officer

The dean’s specific role in donor stewardship, campaigns, piloting new models for fundraising, volunteer management, and asking

FUNDRAISING FOR BOARDS: A GUIDE By

James M. Langley Founder and President Langley Innovations

TABLE OF CONTENTS INTRODUCTION 13 CHAPTER 1: WHAT EVERY BOARD MEMBER SHOULD KNOW ABOUT BUILDING A CULTURE OF PHILANTHROPY

18

CHAPTER 2: DEEPENING APPRECIATION

32

CHAPTER 3: AFFILIATION: NEW MODELS

43

CHAPTER 4: AGENCY: EMPOWERING ALUMNI TO GIVE THROUGH YOU, NOT TO YOU 55 CHAPTER 5: BUILDING AND EVALUATING ADVANCEMENT OPERATIONS

65

CHAPTER 6: THE ROLE OF THE BOARD IN FUNDRAISING

86

CONCLUSION

102

APPENDICES

104

10

INTRODUCTION The hiring and firing of presidents is too often and too glibly said to be a governing board’s greatest responsibility. In fact, the board’s greater responsibility is to ensure institutional relevance over time.

An institution, by definition, is an organization that serves important societal purposes over many generations. Each board “inherits” an institution from its predecessors. A good board will work hard to hand over to its successors an institution that is as relevant as the one it inherited. A great board will work even harder to hand over an even better institution. It is in that context that the firing or hiring of presidents must be placed. A president should be fired if he or she has impaired the health or relevance of the institution. A president should be hired not only as a correction on his or her predecessor but to preserve and enhance the best of that culture and excise anything that threatens to make it less relevant or less responsive to current and future generations.

One of the best ways of determining whether an institution remains relevant and responsive is by monitoring and measuring its ability to inspire high levels of moral and financial support, particularly from its graduates. Yes, a board is in the business of monitoring any number of critical functions, including:

Enrollments

Retention levels

Time to degree

Efficacy of teaching,

Evidence of faculty scholarship

Service to society

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But no institution can long afford to march to the beat of its own wishful thinking. It must prove it has made and is making a difference in the lives of those it teaches. Students are its reason for being.

Its graduates must believe that the value of their education, over time, was far greater than the cost. Therefore, the measure that no educational institution can afford to ignore is the level of esteem in which it is held by its alumni.

If alumni hold it in high regard, not just in the abstract as a ”good school,“ but as an institution that made an important and lasting difference in their lives, they will support it over the course of their lifetimes, giving more as their means increase. They will remain engaged in the life of the institution and feel an increasing sense of ownership toward it. They will encourage their children to attend and will advocate naturally on its behalf, constantly fueling— electronically or interpersonally—the most positive form of advertising, credible and positive word-of-mouth endorsements.

The less regard in which they hold the institution, the less they will engage in these activities. No brand management, marketing or fundraising campaigns will be able to compensate for that lack of regard, no matter how much money is spent.

There is, of course, a lag between what an institution does in the present and how its value will be ultimately determined in the future.

So the all-important alumni votes—be they in the form of donations of time, talent or treasure—are long in coming. Yet, no institution will be able to create or sustain a culture of philanthropy without the enduring support of its alumni.

And no institution can become great or maintain— much less enhance—its greatness without building a culture of philanthropy.

12

While educational institutions secure support from multiple sources including foundations, corporations, and friends, alumni support is the most important to monitor and encourage. Why? Here are three key reasons: 1.

Of the more than $330 billion dollars contributed annually in recent years in the name of philanthropy and charity, 74% comes from individuals. Another 4–5% comes from individuals giving through family foundations. Therefore, the largest source of support available to any fundraising organization is the philanthropic individual.

2. Further, the individual who gives to an institution for a decade or more is the most apt to give the largest current and estate gifts.

3. Finally, giving is personal and experiential; we give to those organizations that have had a personal impact on us and/or speak to our most deeply held values.

For all these reasons, alumni should be the most readily available source of support to educational institutions. No other constituency has more directly benefited from them. A lack of alumni support suggests the waning relevance of an institution, something that no board should ignore.

The fact that alumni support, at a national level, has been in decline for twenty straight years should be of great concern to all colleges and universities, This declining support should be of enormous concern to the boards of colleges and universities so afflicted. Yet, too many have been content with reports from presidents and advancement leaders trumpeting “dollars up” while acknowledging, sotto voce, “donors down.”

The reliance on fewer and fewer donors, especially longterm supporters who graduated before 1975, betokens more difficult days ahead.

Higher education is running out of the kind of supporters who have so consistently given to provide the margin of institutional excellence.

13

If we can’t create the conditions to convert alumni into lifelong supporters, what does that say about the efficacy and relevance of our institution? Board members should say to themselves and each other, “We are in danger of becoming the generation of leaders that allowed our most generous and sustainable source of private support slip away. A generation that provided our highest levels of support is aging and only one-third of the generation that has followed them sees higher education as a worthy philanthropic recipient. How did this happen and what can we do to reverse the trend?�

Board members cannot afford to ignore issues of waning student appreciation and alumni affiliation. There is little point in throwing ever-larger amounts of money at the fundraising enterprise if those issues are not addressed. Indeed, these issues are a sign of the loss of institutional relevance.

The purpose of this book is to explore these patterns and trends, suggest how the most deleterious of these can be reversed, and discuss how the most positive patterns and trends can be enhanced.

Without a full understanding of the conditions that create and promote philanthropy over time, boards will be in the position of trying to understand tactics and strategies that are out of context.

In such cases, expenditures in the advancement operation will not produce anything close to the optimal rate of return. In the following pages, we will explore the context in which fundraising success occurs and then pursue tactics that enhance that success.

This book is intended to provide a firm and factual context that will allow board members and those that work with them to understand how they can play a more vital and strategic role in building, maintaining and enhancing a culture of philanthropy. In so doing, they can help ensure and enhance institutional relevance and enduring societal impact well beyond their term of service.

14

What Non-Governing Boards Can Gain from This Book While this book was written with governing boards in mind, many of the same principles and purposes apply to foundation boards, a means by which many public universities seek to secure, manage, and disburse private funds. They play an invaluable role in defining and advancing institutional purposes even though they do not direct concerns themselves with the governing of an institution.

In addition, many of the proposed duties in this book would constitute a good use of time for those who are recruited to advisory boards, including those empaneled by presidents, deans, athletic directors, and others.

COMPREHENSIVE FUNDRAISING CAMPAIGNS: A GUIDE FOR PRESIDENTS AND BOARDS By

James M. Langley Founder and President Langley Innovations

TABLE OF CONTENTS PART 1: THE PRINCIPLES OF CAMPAIGN SUCCESS

12

INTRODUCTION

12

CHAPTER I: SO MUCH MORE THAN MONEY

15

CHAPTER II: THE CASE OF THE DISAPPOINTING RESULTS

23

CHAPTER III: PRESIDENT, VICE PRESIDENT OF ADVANCEMENT, AND BOARD: THE MOST PRODUCTIVE DIVISION OF LABOR

43

CHAPTER IV: IMAGINING AND IMPLEMENTING BETTER WAYS

52

CHAPTER V: ADAPTING TO NEW REALITIES

73

CHAPTER VI: MAKING EFFECTIVE USE OF CAMPAIGN COUNSEL

84

PART II: ORGANIZATION AND EXECUTION

96

CHAPTER VII: FROM PLANNING TO IMPLEMENTATION: THE ROLE OF THE BOARD 96 CHAPTER IX: THE PRACTICALITIES OF CAMPAIGN PLANNING CHAPTER X: CONCLUDING THOUGHTS

131 140

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PREFACE In the course of running three university campaigns, and in guiding dozens more as a consultant, I have seen virtually every college or university fall short of its full fundraising potential because of one significant, persistent, and largely unrecognized barrier: competing assumptions held by various institutional leaders about the keys to success and, therefore, the strategies and tactics that are most likely to produce it. Imagine, for instance, if a board chair believes that the key to success is a charismatic president; the president believes it is hiring a charismatic vice president for advancement, and the vice president for advancement believes it is a matter of hiring aggressive, extroverted fundraisers and holding them to meeting precise metrical goals. In those competing expectations, we see the weight of responsibility being shifted to another party, rather than the requisite acceptance of shared responsibility. We also see each party cleaving to a very incomplete part of a more complex reality.

In an earlier book, Fundraising for Presidents: A Guide, I stressed the importance of “the triangle of fundraising leadership,” composed of the president, the board chair, and the vice president for advancement, and enumerated their shared responsibilities.

“If this triangle of fundraising leadership is formed,” I wrote, “and each party meets the expectations of the others, the institution will greatly improve its probability of philanthropic success.”

If, however, each of these parties holds to a different theory of fundraising success, agreeing to a division of labor will prove difficult.

Even if some nominal cohesion is achieved at the outset, it will come under strain as difficulties and frustrations are encountered in the course of a campaign.

By putting this disjuncture in other contexts, we can see its deleterious effects. For instance, imagine an unfolding military campaign in which each general is using a different map in what is supposed to be a unified and highly coordinated battle plan.

Imagine further if each was gathering battlefield intelligence from different sources and interpreting it so that it comported with their preconceived notions of the keys to military victory.

18

Or imagine the leadership team of a political campaign composed of individuals with very divergent notions of the key to securing a majority of votes, and each second-guessing the other right up to Election Day. In a higher education setting, it is not the least bit unusual to find competing assumptions about fundraising success, not only among members of the leadership triangle, but also among individual members of the board, members of the senior administration, and the senior staff of advancement. While a certain amount of this in a large, complex organization is inevitable and never fully resolvable, every effort to minimize it should be made when an institution resolves to conduct a comprehensive campaign.

A comprehensive campaign, by definition, is the means by which an institution seeks to advance its strategic priorities, an effort that requires focus, the marshaling of its human and financial resources, and the subordination of individual agendas to a common good.

Institutions of higher learning must rise to the great strategic challenges of the day and develop campaign priorities that are responsive to current and emerging societal needs. Cohesion of purpose and clarity of mission is more important than ever before.

This book, therefore, does not aspire to be a “how-to� manual. It seeks to ground board members, presidents, vice presidents for advancement, deans and other critical stakeholders with an objective and comprehensive understanding of what it takes to achieve higher levels of success in a campaign, and to sustain that growth well after the campaign is complete. In particular, it will review and elucidate under what conditions a comprehensive campaign should be considered, how it should be configured to align institutional competencies with societal needs and opportunities, how it can build and not deplete constituent strength, and why it must be conducted with the highest integrity.

19

Finally, it will call out, as no book before has done, the most constructive roles that boards (both governing boards and foundation boards) and individual board members can play in achieving these purposes, which are far greater and more strategic than the usual injunctions about “giving and getting.” Indeed, greater optimization of a board’s strategic oversight and individual board members’ skills and experiences will be essential if institutions are to raise their game in these ever more challenging times.