The Organization of
Development
Department Heads & Chairs
November 29, 2007
Judy Kirk
University
Vision Development
Mission
To engage the resources of the private
sector to build and sustain excellence at the
University of Minnesota.
Why We Were Formed
The University of Minnesota Foundation was formed to accept
and manage gifts on behalf of the University and its colleges, campuses
and programs.
Specifically, it:
• Exists to support the University’s interests.
• Secures, manages and invests private support for the benefit of the
University.
• Provides private support for a portion of the operations or programs of
the University.
• Uses sound fiscal and auditing procedures.
• Obtains and maintains status as a tax exempt organization.
Fundraising at the U of M
UMF relationship with the University includes
development oversight and services:
• Strategic U-wide development leadership
• Campaign planning and implementation
• Delivery of comprehensive development services for Uwide Development (i.e. technology, legal, donor
relations, gift administration, annual giving,
communications)
• Financial subsidies to collegiate development programs
• Endowment investment management
• Assessments across colleges/programs for continued
program support or new investment
Historical: Campaign Summary
1985-88, Minnesota Campaign
Focus: 100 endowed faculty
positions
Result: 111 added
1989-96, Mini-Campaigns
Focus: New & renovated facilities
Weisman, Ted Mann Concert Hall,
Mariucci Arena, Williams Arena &
Sports Pavilion
1997-03, Campaign Minnesota
Focus: Support for faculty,
students, facilities & research
Result: All goals exceeded
2004-Now, Mini-Campaigns
Focus: Scholarships, fellowships,
new facilities
On-campus stadium, translational
research, Carlson School addition,
Bell Museum, Equine Center,
Weisman addition
Campaign Minnesota Highlights
Campaign Minnesota: A Historic Achievement
• $1,655,703,867 raised, or 127% of goal
• 220,000 donors
• Major impact on faculty and students
What this means for future of fund raising at the U
• A 30% increase in number of donors
• 113,000 first-time donors
• 11,000 faculty and staff donors
Historical: Gift Production
Minnesota Campaign
Non-Campaign
Campaign Minnesota
2-year
Average:
26
51
76
2007
2006
2005
2004
2003
2002
2001
2000
99
98
97
96
95
94
93
92
91
90
89
88
87
86
85
84
83
82
240
220
200
180
160
140
120
100
80
60
40
20
0
216
Impact of Giving
Who donates? (FY07)
87,167 total donors
Corporations, foundations,
organizations– 5,123 donors
$70M
6%
28%
Individuals (non-alum) – 34%
29,369 donors
$70M
58%
Faculty/Staff – 1,602 donors
$14M
Donors of 2007 Gifts
2%
Alumni – 51,073 donors
$97M
National Rankings
Growth in Voluntary Support
(in millions)
$ 300
250
$265
$267
$233
$239
$246
2002
2003
2004
2005
2006
14
4
15
7
15
5
14
5
14
4
200
150
100
50
0
National ranking among:
Public & private universities
Public universities only
National Rankings
Voluntary Support of Education - 2006
(In Millions)
Private and Public
1. Stanford
2. Harvard
3. Yale
4. Pennsylvania
5. Cornell
6. Southern California
7. Johns Hopkins
8. Columbia
9. Duke
10. Wisconsin
$911
595
433
409
406
406
377
377
332
326
11. UCLA
12. Washington
13. New York U
14. Minnesota
15. Northwestern
16. Michigan
17. Indiana
18. UC - Berkeley
19. U of Chicago
20. UNC – Chapel Hill
$320
316
280
267
253
251
248
246
237
237
Impact of Giving
Combined University Endowments
(in millions)
As of June 30
$ 3,000
$2,819
262
2,500
$2,255
$1,965
2,000
$1,728
$1,515
1,500
1172
204
187
177
224
Minnesota Medical Foundation
876
772
University of Minnesota
654
1,000
553
University of Minnesota
Foundation
1385
500
785
887
989
1155
0
National ranking among: 2003
Public & private universities 25
Public universities only
6
2004
2005
2006
2007
25
6
25
6
25
6
na
na
Impact of Giving - Highlights
•
404 endowed chairs* from 17 in 1985
•
$191.3 raised for Scholarship Campaign.
Growth in scholarships and fellowships*:



•
378 fellowships, 463 scholarships
Endowment exceeds $407M.
46% increase in # of students receiving support.
$128M raised, Campaign Minnesota.

Built, renovated 25+ facilities, including
-Architecture
addition
-Microbial & Plant Genomics
-Amundson Hall
-Weber Music Hall, UMD
-Studio Arts
-Andersen Library
-Mechanical Engineering
-Science Building, UMD
-Law School addition
*As of October 31, 2007
-McNamara Alumni Center
-Murphy Hall
-Barbara Baker Dance Center
-Showboat
-Fitness Center, Morris
-Arboretum Visitor &
-Learning Centers
-Densford Nursing Center
-Translational Research
National Giving Trends
Multimillion-dollar gifts from donors seeking to change the world—a
huge opportunity!
•
Donors not motivated by needs as much as by opportunities
•
•
Interdisciplinary programs attract leadership gifts
Growing interest in seeing immediate impact
Donors want to see results, accountability
•
Increasingly, donors want to know the measurable outcomes before
sizeable gift
Sources of support are changing
•
•
Alumni support critical to successful campaigns
Corporate funding growing at much slower rate than in recent past
Demand increasing for good, experienced fundraisers
making a
Critical Success Factors
A Compelling Case
Aligns U’s vision, strengths, priorities
with donors’ dreams, passions & goals.
Critical Success Factors
Transformational Gifts:
Possess unique capacity to alter the programs, perception
and future of an organization;
Traditionally defined by the impact on an organization, and
size relative to the overall budget.
“People no longer give to charity, they buy into results.”
–Peter F. Drucker, renown business writer, management
consultant & university professor
UMN transformational gift level  $25 million+
Critical Success Factors
Transformational Gifts
Nationally, largest 10 gifts to universities

Totaled $757M or average of $76M each.

7 went to private schools; 3 to publics.

8 from alumni of those institutions.
U’s Experience
•
Twelve $10 Million + gifts in last decade

11 business founders or executives

10 were alumni

9 were volunteers prior to the gift

Age range 56-85; median, 66
Why did these alumni give?

Passion for, connection to the institution

Desire to have an impact on the world
Critical Success Factors
Leadership Commitment & Focus

Integration of private support into U’s longrange planning.

U leaders committed to building strong
relationships with alumni, donors.

Volunteer leaders meaningfully engaged in life
of U & fund-raising.
Critical Success Factors
Volunteer Commitment & Engagement
• Energetic force that drives momentum of
•
•
•
•
campaign success
U’s front-line advocates
Expand networks and access to additional
prospects
Share indispensable expertise
Give of their own time and financial resources
Critical Success Factors
A Top-Quality Development Operation
•
•
•
•
Ability to attract, retain top professional talent.
Effective coordination in decentralized culture.
Strong central services.
Budget appropriate for the potential.
– Cost to raise $1 at the UofM has averaged only 9.4
cents annually for past decade.
– ROI: $7-$15 raised for each $1 invested in
development
Relationship with College/Unit
UMF Strategic Partnerships
Collegiate Development Colleagues
• New employee orientation
• Monthly development meetings
• Training opportunities
• Donor consultation
• Central development services
• Rewards and recognition
Chancellors/Deans/Directors
• Search process consultation
(descriptions, search committee
resources, networking)
• Financial subsidy
• Compensation consultation
and market analysis
• Performance management
consultation
• Development strategy
consultation
Relationship with College/Unit
Your Chief Development Officer:
•
•
•
•
•
•
Is a trained professional in major gift fund raising
Understands your unit’s mission of work
Has great “people” skills
Has passion and commitment
Has high ethical standards
Is donor-centered
Relationship with College/Unit
How you can help your CDO:
• Have trust in their expertise and experience
• Be patient: building long-term relationships takes time
• Get involved: help your development officers understand
your goals and be available to help donors learn more
about you
• Adopt a long-term vision
Giving Trends
Motivations for giving
• To leave a legacy
• To support things they care about
• To support a passion for a cause or vision
• To give back in gratitude for what his/her University did
for them
Why People Give
Larry and Nancy Bentson
•• Following family tradition of giving.
•
Established endowment for undergraduate
scholarships with $10 million gift in 2005.
•
In the first year, 66 students were Bentson
Scholars. This school year The Bentson
Family Scholarship will provide 185 students
with about $5,000 annually for four years or
more.
•
The Bentsons have led lives rich with loving
family, friends and financial prosperity. Now
they want to help students experience the
same.