University Development Overview and Future Plans

Presentation for the 2012 Business Practices Seminar

February 24, 2012

Dr. Elizabeth Flanagan Mr. Thimothy Corvin

VP for Development & University Relations Senior Associate VP for Development & Principal Gifts

INTRODUCTION AND SESSION OVERVIEW

(FLANAGAN)

2

What we will cover today:

• Overview of Development at VT

• History of Campaigns at VT

• Interim Development Proposals

• Priority Setting and Timeline

3

Organizational Chart for the Office of the

Vice President for Development and University Relations

Vice President for Development

and University Relations

(Betsy Flanagan)

Senior Associate Vice President for

Development and Principal Gifts

(Thim Corvin)

Associate Vice President for

Advancement Services

(Rhonda Arsenault)

Associate Vice President for

University Relations

(Larry Hincker)

Assistant VP for Colleges

•Women in Leadership and

Philanthropy Program

Assistant VP for University Programs

Regional Programs

Gift Planning

Corporate and Foundation Relations

Business Office

Donor Relations

Research and

Information Systems

Gift Accounting

Annual Giving

Special Events

Desktop and Systems

Support

Development Communications

Public Affairs

Publications

Visual Communications

Extension Communications

Public Service Communications

Northern Virginia Graduate Center Communications

WVTF Public Radio

Licensing and Trademarks

The Development Process

Identification Volunteers – Staff

Self-Reference

Investment

Capital Fund Raising

Involvement

Annual Giving

Support Activity

Volunteer Leadership

Board Engagement

Information

Experiences

Communications

Publications

Website

Engagement

Campus Programs

Educational Events

Campus Activities

Club Programs

Evolved from an earlier model created by Douglas S. Dibbert, President of the

University of North Carolina General Alumni Association.

Stewardship

Acknowledgements

Reporting

Events

Development Funding Model

• Reinvestment Fee (7%)

• Fundraiser costs shared with colleges/units

• The VT Foundation supplements

development costs

• Note: It takes approximately 14¢ to raise

$1.00

6

ANNUAL GIFT FUNDRAISING

(CORVIN)

7

Development Pyramid

Annual Giving

Special Gifts

Major Gifts

Principal Gifts

Under $1,000

$1,000-$25,000

$25,000-$1 Million

$1 Million+

Annual Giving

• Purpose: To build

• a base of on-going support for operations

• A source of unrestricted funds

• A source of prospects for major gifts

• A culture of philanthropy among constituents

The Market

• Individuals

• Alumni

• Parents

• Friends

• Faculty and staff

• Seniors

Methods of Annual Gift Fundraising

• Direct Mail • Inexpensive (dollars and HR)

• Can reach masses quickly

• Low return (1-3% average)

• Less personal

Methods of Annual Gift Fundraising

• Telefund

• Advantages

• Interactive

• Can segment target markets

• Personal contact with students

• Can encourage upgrades

Methods of Annual Gift Fundraising

• Telefund

• Disadvantages • High cost (35-50 cents on dollar raised)

• Students struggle with handling objections

• Telemarketing laws

• Fulfillment

Methods of Annual Gift Fundraising

• E-Philanthropy

• Inexpensive

• Appeals to some; not others

• Higher average gift

• Cost effective for pledge reminders, stewardship

Challenges in Annual Gift Fundraising

• Fulfillment

• Donor retention from year to year

• Increasing gift size

• Database integrity

• Lapsed donor reactivation

16

Unit FY2012 Donors to date

FY2011 Donors

to date +/-

FY2012 Dollars

to date

FY2011 Dollars

to date +/-

FY2011

Total Dollars

%

of Total

College of Agriculture and Life Sciences 736 712 3% $220,902.20 $174,033.15 27% $216,695.99 102%

College of Architecture and Urban Studies 443 439 1% $188,821.11 $78,870.96 139% $90,906.83 208%

College of Business, Pamplin 1,654 1,727 -4% $467,342.79 $354,005.21 32% $451,523.14 104%

College of Engineering 2,986 2,875 4% $925,747.49 $645,242.50 43% $929,376.44 100%

College of Liberal Arts and Human Sciences 1,251 1,358 -8% $211,160.33 $157,682.39 34% $218,606.68 97%

College of Natural Resources 237 252 -6% $47,685.81 $47,538.10 0% $55,265.46 86%

College of Science 940 920 2% $269,223.70 $197,424.83 36% $275,541.08 98%

College of Veterinary Medicine 131 78 68% $40,654.50 $11,134.76 265% $23,273.12 175%

Corps of Cadets 1,252 1,281 -2% $501,090.64 $285,511.26 76% $367,688.23 136%

Graduate School 924 1,050 -12% $70,254.82 $66,978.89 5% $87,717.24 80%

Parents Fund 2,302 3,601 -36% $194,150.96 $289,591.83 -33% $362,319.16 54%

University Libraries 317 228 39% $58,019.84 $31,583.60 84% $44,943.68 129%

University Unrestricted 625 350 79% $154,933.89 $80,003.42 94% $113,489.36 137%

Other 481 344 40% $223,371.26 $139,296.39 60% $210,545.40 106%

TOTAL 12,708 13,544 -6% $3,573,359.34 $2,558,897.29 40% $3,447,891.81 104%

FY12 Annual Fund Results: July 2011- Jan 2012

MAJOR GIFT FUNDRAISING

(FLANAGAN)

17

Major Gift Fundraising

• Identifying Major Gift Prospects

• Research on prospects

• Electronic Screening

• Qualitative

• Field research

• Referrals

Cultivating MG Prospects

• Focus on “rated” prospects

• Face to face visits

• Invitations to campus

• Small group sessions with

leadership/faculty

Major Gifts

• Gift Type

• Outright

• Irrevocable deferred

• Revocable deferred

• Likely to see combination

Corporate Support

• Best prospects have shared interests

• Quid pro quo expectations

• Matching gift possibilities

• Who is the decision-maker?

• Giving policies

Foundation Support

• Types

• Corporate

• Private/Family

• Community

• Governmental

Foundation Support, Con’t

• Giving Guidelines

• Proposal centered

• Issue Focused

24

CAMPAIGN FOR VIRGINIA TECH SOURCES OF CAMPAIGN GIVING

July 1, 2003 through June 30, 2011

ALUMNI $474,246,582 42.62%

Alumni $474,150,714 42.61% Students $95,868 .01%

PARENTS $21,299,918 1.92%

FRIENDS $301,670,220 27.11%

FACULTY/STAFF Active

Retired

$9,916,380

$15,111,426

.89%

1.36%

$25,027,806

2.25%

CORPORATIONS $161,359,333 14.50% Direct Gifts and Grants $120,661,231 10.84% Matching Gifts $12,958,332 1.17% Private Grants $27,739,770 2.49%

FOUNDATIONS $99,835,171 8.97%

Direct Gifts and Grants Personal/Family Fdns.

$40,364,777

$47,916,442

3.63%

4.30%

Private Grants $11,553,952 1.04%

OTHER ORGANIZATIONS $29,264,947 2.63%

TOTAL $1,112,703,977

100.00%

Alumni/Students

ParentsFriends

Faculty/Staff

Foundations

Other Organizations

Corporations

25

CAMPAIGN FOR VIRGINIA TECH

USES OF CAMPAIGN GIVING

July 1, 2003 through June 30, 2011

Current Operations $601,697,923 54.07%

Endowments 303,715,166 27.30%

Capital Facilities 163,665,492 14.71%

Private Grants 43,625,396 3.92%

TOTAL $1,112,703,977 100.00%

Current Operations

Endowments

Capital FacilitiesPrivate Grants

Donor Stewardship • Visits to update

• Updates on funded programs

• Invitations to events/opportunities to

remain engaged

• Recognition “societies”

• Caldwell Society

• Ut Prosim Society – “President’s Circle”

• Legacy Society

27

58

120148

169

248

336

405

572

610

753

0

68

35 26

98 105 103

212

85

166

2 4 7 519 17

34 45 4759

0

100

200

300

400

500

600

700

800

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Caldwell Society GrowthFY 2002 - 2011

Total Households New Households Advancing Households to Ut Prosim

28

7 12 25 21 1744

22 3557 65 66 70

86108

137

34 23 3247 46 60 60 56

80

128 137156 170 181

220237

266

318

376

436

501

581

684

815843

861888

929

975

1029

1089 1104

1172

0

200

400

600

800

1000

1200

1400

Co

un

t

Households by year

Ut Prosim Society Membership by YearJuly 5, 2011

New Households

Total Households

29

33

10

6 6 5

12

9

6 7

2

33

42

48

54

59

69

76

82

88 89

0

10

20

30

40

50

60

70

80

90

100

FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Ho

useh

old

s

Year

President's Circle Households by YearDonor Relations 7/5/2011

(Note: differences in counts reflect removal of deceased members)

New Households Total Households

30

6228

4412 2

21

7154 63

23 2136 35 48

70

121

38

8196

6382

109

6290

134 146 148169

240

294

357380

401437

472

520

590

711

749

830

926

989

10711045

0

200

400

600

800

1000

1200

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

New Households Total Households

Legacy Society Household by Year Donor Relations 7/7/11

(Note: differences in counts reflect removal of deceased members)

Advancement Services

• Gift Accounting • CASE standards apply

• Development Communications • marketing materials

• Proposals

• website

• Information Technology

Advancement Services

• Development Research

• Donor Relations/Stewardship

• Special Events

Management • Strategy

• Goal setting

• Prospect portfolios

• Performance management

• Measuring Success with Program Benchmarks

• Dollars Raised

• Teamwork

• Integrating with University Relations

• Integrating with the Alumni Association

HISTORY OF CAMPAIGNS AT

VIRGINIA TECH

(CORVIN)

34

History of Campaigns at Virginia Tech

• 1980 - Organized official fundraising program

• July 1982-December 1986

• “Campaign for Excellence”

• Goal - $50 Million; Raised $118 Million

• July 1992-June 1998

• “Campaign for Virginia Tech”

• Goal - $250 Million; Raised $337 Million

35

Historical Campaign Planning Process

• Develop Campaign Goals linked to the

University Strategic Plan

• Identify university needs and priorities and

translate into the tentative campaign plan

• Complete analysis of each college/unit

relative to prospect base, staffing, resources,

and volunteer potential

36

Historical Campaign Planning Process

• Convene needs assessment committee

chaired by Provost; include all deans, unit

heads, and Vice Presidents

• Conduct feasibility study and assess results

• Identify, research, and establish strategies for

top Nucleus Fund prospects

• Establish tentative goal for nucleus fund

phase

37

The Campaign for Virginia

Tech: Invent the Future

What would we do if we

had a BILLION

dollars??????????

38

Invent the Future Campaign

• July 2003-June 2011 • “The Campaign for Virginia Tech: Invent the Future”

• Goal - $1Billion

• Raised - $1.12B through June 30, 2011

• Continued counting through June 30, 2011

• Met $1B goal early (November 2010)

• Compensate for suspended fundraising and poor economy

• Included late regions who wanted to participate (NY/DC/MD)

• Focused on meeting established, unfulfilled goals

• Campaign Closing Celebration in Fall 2011

39

Invent the Future Campaign Priorities • Academic Excellence ($309M; 170%)

• Faculty Chairs, Professorships and Fellowships

• Graduate Programs

• Libraries

• The Undergraduate Experience ($184M; 128%)

• Scholarships

• Study Abroad and Multicultural Initiatives

40

Invent the Future Campaign Priorities

• Research Facilities ($67.4M; 52%)

• Cross-disciplinary Research Buildings

• Virginia Tech and the Community ($70M; 86%)

• Arts Initiative

• Campus Infrastructure and Historic Sites

• Transfer of Knowledge

• President’s Discovery Fund ($15.1M; 101%)

41

20,648,969

31,233,125

42,938,250

12,837,269

23,805,967

27,152,857

2,020,631

5,883,072

6,738,464

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

'90-'98 '99-'03 '04-'09

Individual Organization Realized Bequest

Virginia Tech Avg Year Gift Support by Source

+51.3%

Co

nsta

nt

2008 D

ollars

+37.5%

+14.5%

+191.2%+14.1%

+85.4%

Campaign Success: Growth in Gifts from All Sources

Very strong growth after the previous Campaign across all sources. Continued

growth across sources in the Invent the Future Campaign, especially in gifts from

Individuals.

Campaign Campaign

Strength: Growth across donor sources.

43

Statistics in order

of largest alumni

population to

smallest,

beginning with

Virginia.

44

98 497 2,627

5,849

11,758

32,157

46,113

52,417

57,790

4,606

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s

Virginia Tech Alumni Counts by Decade, 1920 to 2010

45

Prospect/Gift Campaign Table

$1Billion Goal

PLANS FOR THE FUTURE

(FLANAGAN)

46

Summary of Penetration Statistics

47

• Doubled overall prospect pool from 17,000 to

34,000 during campaign

• Have seen 36% of identified prospects

• On average, it takes 13 visits per every major gift

received

• We focused more on the high end and less on the

low end, so money is still out there

• Alumni from the ‘80s and early ‘90s will be key in

the next campaign

PRIORITY SETTING AND TIMELINE

(FLANAGAN)

48

Total Development Proposals by Type

“WISH LIST”

Endowments $676.9

Capital $575.0

Current Operations

$119.9

Dollars in millions

49

Note: Proposals include only those

from academic units.

Cash Flow vs. Intermediate Priorities

• Current priority “wish list” totals $1.3B

• Annual Cash flow is projected at $100M

• Approximately $600 million in projected

cash flow for the $1.3 billion in intermediate

requests over next six years

• Question to Deans: “Considering your

unit priorities, do you have the existing

prospect base to fund them?”

50

Proposed Timeline for Next Campaign

51

• July 2018 – Quiet Phase begins

• December 2021 – Quiet Phase ends

• January 2022 – Public Phase begins

• Coincides with 150th Anniversary of VT

• June 2026 – Public Phase ends • This recommendation is for a 7-year intermediate period.

• The previous two campaigns had intermediate periods of

6 years and 5 years, respectively.

Conclusion • Development encompasses a great deal

• All about relationships, information gathering,

financial climate, and realistic expectations

• Must gain buy-in from internal and external

constituents

• All parties work together with a commitment

to success for the future of Virginia Tech

52

QUESTIONS??

Thank You!!

Dr. Elizabeth “Betsy” Flanagan Mr. Thimothy Corvin

315 Burruss Hall 902 Prices Fork Road

Mail Code 0253 Mail Code 0336

540-231-7676 540-231-2811

betsyf@vt.edu tcorvin@vt.edu

53