As Americans grow increasingly concerned about the worsening economy, and scenes of panicked investors play out on television and in newspapers, college fund raisers say the financial events of the past month haven’t undermined their mission or their resolve to raise private funds for higher education.
“You can’t sit and do nothing,” said Laura Fredericks, a fund-raising consultant in New York who used to run the development office at Pace University. “The world didn’t end. And there’s plenty of money out there.”
At the same time, development officers cannot operate in the same way they did when the market was up and the public was confident about the economy.
Here are some suggestions from experts in the field about what fund raisers can do now:
Look inward. Instead of seeking new donors, take a look at your donor pool and focus on those you may not have paid much attention to in recent years.
Rank your biggest donors, longest-giving donors, largest cumulative donors, and oldest donors, suggests Robert F. Sharpe, Jr., a fund-raising consultant in Memphis. The longtime donors, oldest donors, and those who have given sizable amounts in smaller chunks over many years may not be as splashy as the megagift givers, but they are loyal to your institution and may soon be deciding which charities to include in their wills.
Mr. Sharpe suggests dividing the names on the lists among fund raisers—and even the college president—and contacting the top donors in each category to thank them for their support. Tell them how much they’ve given in all. That recognition will help keep your institution in their minds when they consider making bequests or planned gifts.
“Right now we need to learn how to make ‘the thank,’” Mr. Sharpe says. “We need to thank people for their cumulative giving, for their longevity of giving, for what they’re giving now.”
Be near, dear, and clear. In a tough economy, the competition for dollars among charitable causes becomes even fiercer. When donors pull back on their giving, they usually cut out recipients rather than reduce gifts to every organization they support, experts say. Their advice: Visit donors, call them, tell them what their gifts have done, and make a clear case showing why the institution needs their continued support.
Add value. Challenge gifts, which offer an incentive for additional donors to give, can make people feel they are getting (and giving) more for their money.
When Purdue University announced a $2.5-million anonymous gift for merit scholarships this week, the university also introduced a challenge to help raise a total of $10-million for the same program. Every gift over $25,000 that goes into the scholarship endowment will be matched.
The program essentially gives donors a chance to double the money they provide for scholarships, and allows the university to attract more high-achieving students, said France A. Córdova, Purdue’s president.
Think long-term. Psychologically a donor might prefer not to make an outright gift in uncertain times but would rather make a planned gift that provides an immediate tax break or guaranteed payments from an annuity, says Ms. Fredericks, the consultant.
At a time when many colleges are reporting losses on their endowment returns for the 2008 fiscal year, remember that unrestricted endowment funds have historically come from bequests, Mr. Sharpe says. Don’t ignore your longest-term donors, even if they are not giving as much as they used to, because they are the ones who can build your endowment through bequests over the next five to 10 years.
Offer to help. A relationship with a donor is like a marriage, says Debra A. LaMorte, senior vice president for development and alumni relations at New York University. You are there for them in the good times as well as the bad—meaning you don’t go away if they are having a hard time financially.
Many of NYU’s business-school donors work in the financial industry or other businesses that are hurting. To help them out, the university plans to offer opportunities for job and social networking.
“We’re really trying to be there in a different way than saying, ‘Where’s your annual gift?’” Ms. LaMorte says. “That’s not realistic.”
Be sensitive. This might not be the right time to hold a black-tie gala. Even if your donors are still in a position to give, they may feel that a big party seems inappropriate when so many people are worried about their economic situations.
“People are not in a celebratory mood,” Ms. Fredericks says. “They’d rather give outright.”
Instead, she says, reach out to big donors with a phone call and to the larger pool of small donors through letters or messages on the college’s Web site. Emphasize that you understand it’s a difficult time, but make the case that your institution and its students need financial support now more than ever.