A CASE study of the University of Sheffield over the last nine years – focusing on philanthropy

Miles StevensonDirector of DevelopmentThe University of Sheffield, United Kingdom

9th March 2011

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I aim to cover …

• How we built a Development and Alumni Relations office

• Using Sheffield as a case study – successes, achievements and lessons

• Questions and discussion

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The University of SheffieldFounded in 1905

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5 June 2002

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18 November 2011

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Building a pipeline

A good team

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Andrew Carnegie (1835–1919)

“The rich man who dies rich dies disgraced.”

“I resolved to stop accumulating and begin the infinitely more serious and difficult task of wise distribution.”

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Our aim was to create …

• a successful office • which built a strong alumni

family and brand• supported my Vice-

Chancellor• Helped Sheffield• enthused supporters• and raised money

Marco Van Basten

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Your University is sceptical/nervous

• Can it succeed? • How much will it cost?• Can you recruit good staff?• Will you raise any support? • Realistically, what can be

achieved in the short-term?• Is it essential?

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Confront The “B” word - Begging

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Fundraisers and fundraising?

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Institutional Audit 1

• Check out the history – why haven’t they had one before?

• Who is the head of the institution?

• What is his/her (real) commitment?

• How much charisma?

• Unique selling points – if any

• What is the institution good at?

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Why Education is Important

Ricketts – Penicillin – Viagra!

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Why Education is Important 2

Bailey Bridge – Stainless Steel – London Eye

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Institutional Audit 2

• What resources are available?

• Are senior management keen?

• What is your reporting structure?

• How many alumni, how old, how famous?

• What is the appetite to do this?

• Any focus groups to test this?

• What other supporters exist?

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Institutional Audit 3

• What does the institution really want?

• What are the expectations?

• How reasonable are these expectations?

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Donors won’t pay for …

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The Strategic Plan

A plan will involve the whole range of activity• Prospect research, identification and cultivation• Publications – e-bulletins• Volunteers• Events/Reunions• Database• Alumni Ambassadors• Legacies/Major gifts• Annual Fund• Mailshots and tele-campaigns

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Basic Ingredients

• Database

• Time

• Direction

• Staff

• Backing from the top

• Training

• Energy and enthusiasm

• A budget

The University of Sheffield: a case study

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Sheffield

                                  

               

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The University of SheffieldFounded in 1905

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Sheffield - 1904

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Back to 1984

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What went wrong?

Unrealistic expectations Lack of commitment at the top Ownership – “someone else will provide the money” Parties and publications versus fundraising Ever growing costs No early successes = destroying confidence Too much “choice” for donations Alumni groups preserving independence Staff not really believing in it - apologetic Ultimately the cost – benefit ratio

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Starting point

No one was asking

No Development Office – so no co-ordination

No thanking of existing donors = withering away

No publicity to raise any awareness of why someone should give

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What did I do first?

• Scoping – pause for thought

• Database – expensive

• Questionnaire and research

• Internet site – with donation form

• Quality publications

• Fundraising priorities and plan

• Alumni Relations programme

• Agreed projects

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Public backing by Vice-Chancellor

Talk to all heads of department on my second day

Support from Vice-Chancellor

Acknowledgment of difficulties

Immediate expressions of interest

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Essential stakeholders

You need key constituents on your team

1. Your Vice-Chancellor/your boss

2. The senior managers

3. Your staff

4. Your supporters/donors

5. The academic champions

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Building participation

• Leadership to agree on objectives

• Case for support

• Communication to departments and faculties

• Champions – internal and external

• Determine past and current supporters

• Find new supporters

• Create gift clubs and donor recognition points

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My starting point

• Some data – no database

• 1 ½ alumni relations staff

• No magazine – limited website

• 6 regular donors – c. £100 p.a.

• No organised fundraising

• But … evidence of philanthropy from the past

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Teams

• Database and Research

• Fundraising – Annual Fund Telephone and direct mail

• Fundraising – Projects

• Fundraising – Major Gifts

• Fundraising - Legacies

• Finance and Stewardship

• Alumni Relations

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Development and Alumni Relations Office

Office established June 2002:

• To reconnect with alumni, staff and

friends of the University

• To raise donations

• To build up endowments

Now 17 staff

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Sowing the seeds

Alumni Relations prepares the ground for increased reputation, brand recognition, better recruitment and ultimately donations.

Don’t treat alumni as a “cash cow”

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Ordinary alumni?

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Now worth $73 billion (ish)

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William Squire

• You need processes

• You need a little luck

• You can create luck

• You don’t need to convert everyone

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My first donor

People invest in success

Our Alumni

Former students, staffand friends

130,000 +

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Hard and soft benefits

Word of Mouth

Donations

Reputation

Speakers

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Famous Alumni

                             

David Blunkett, Sir Harry Kroto, Sir Richard Roberts, Eddie Izzard

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Addressable Alumni (02/02/2009)

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Africa1,497

Russia & Central Asia -

28Europe 9,546 Middle

East/Gulf 1,888

N. America

2,601

S. America

338

S. Asia1,19

4

S.E. Asia

5,345

E. Asia

4,580Caribbean

443

Australasia849

UK 98,308

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Alumni Publications

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Building the communications

Your Alumni Magazine

• Establish a brand identity

• Make it interesting – not just propaganda!

• Regular publishing

• Ensure a mention of philanthropy/beneficiaries

Your Website

• Websites do not replace magazines – they complement them

• Websites can provide information/new/services

• Use it to collect information - link to your database

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Building the communications 2

Donor Publications

• Donor newsletter – validates and motivates

• Legacy/Bequest guide – important to attain big gifts (Amsterdam example)

• Guides to giving – avoid one size fits all – tailor each one

• Project/Campaign publications – avoid over-reliance on expensive productions

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Sort out publicity!

You need to start working on all your audiences immediately – every medium

Switchboard

Home web page

Donation Form

Cases for giving

You need a success story

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Centenary DVD to 25,000

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Make your gift first!

The number one rule …

If you can’t persuade yourself, you won’t persuade anyone

Gifts that “hurt” – not token gifts

All part of the training

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Gift Clubs

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Building the processes

Stewardship

• Effective mechanisms to thank supporters

• Effective mechanisms to recognise supporters

• Regular cultivation devices

• Validation tools (newsletter)

• Thank, thank, THANK - Ευχαριστώ

• Your most likely future donor is a past donor

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Saying thank you

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Recognition

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Building the processes 2

Your database

• The database is your most important resource – it is crucial for “corporate memory”

• Buy an “off the shelf model” – resist in-house designs

• Send out questionnaires

• Link your website to the database

• Use it to record information, gifts, stewardship and events

• Track and record affinity - attendance

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Building the processes 3

Prospect Management• Build a prospect identification process• Establish rigorous and thorough prospect

cultivation and tracking processes• Prospect profiles, meeting reports and data

collection methods• Programme of prospect cultivation meetings • Prepare ways to invite prospects back

(dinners, lectures, careers advice, mentor)

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Building the processes 4

Finance and gift tracking

• Make friends with the Finance Office or Bursar

• Clear guidelines for responsibility and actions

• Appropriate gift aid reclamation processes

• Agreement on who deals with general donations

• Agreement on who deals with bequests/queries

• When gifts go wrong – the £1 million bounced cheque

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Visibility

The Development Office must be visible

People must be able to find this office – and quickly

You need to know all tax issues and documentation perfectly

You must inspire trust and confidence – some people are actually just “testing” you

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Defining targets

• Set time frame over next 4 – 5 years

• “10p to gain £1” or 20p or 30p …

• Establish key stages when budget/staff can be increased

• Track and measure donations and legacy pledges

• Improve accuracy of database (fewer returns)

• Improve database content (emails, phone numbers)

• Growth in number of donors and value of gifts

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You must also havenon-financialmeasureables

Get measuring

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Some recent successes at Sheffield

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Gifts and Pledges

£24 million raised since 2002 Funds raised for every faculty 9,500 donors c. 90% of the gifts were “untied”

431 legacies confirmed

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SITraN

It is the research that counts …

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Opportunity does come knocking

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Exhibition Space

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Pro Bono Law

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Scholarships

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The Alumni Foundation

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Legacy figures

• 431 confirmations that Sheffield is remembered in a will

• A further 1,370 people have requested a legacy brochure

• Since 2000, we have received legacies from 43 individuals worth:

£3,395,776

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You MUST …

1. Believe in the cause – this will give you conviction and passion

2. Make your own gift – you can look the donor in the eye

3. Get out of the office and meet people

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You MUST …

1. Know your University inside out – history, facts, achievements

2. Identify what makes your University special – its U.S.P. (Unique selling point/s)

3. Win the trust (and time) of the senior management and academics

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You MUST …1. Have good “saleable” projects – on two sides of paper!

2. Put these through a vigorous testing

3. Identify and research who might support you

4. Get out and “sell”

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Managing expectations

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You will need …

• Process

• Staff and resources

• Early successes

• Steady nerves

• Belief in the cause

• Patience

• And a bit of luck

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Short-term gains versus long-term planning

“We build long-termfundraising relationshipsin institutions that think short-term.”

Scott NicholsHarvard Law School

Discussion and Questions