Presentation Transcript

1. Giving Trends in Independent SchoolsNYSAIS Advancement Conference

   Kathleen Hanson, Senior Consultant & Principal Leader: Schools’ Practice Group
2. Your planning committee asked me to address: Is the amount of money for philanthropy getting smaller? Are schools less of a priority when individuals are considering charitable giving? Are people changing the areas they wish to give to in schools? Are schools dealing with “culture clashes” with old versus new money
3. Many trends are regional…………. Certainly impact of the recession created less giving among some segments of the school community Loss of jobs Loss of bonus Real Estate Market Multiple tuitions in the school
4. Some trends relate to the age of the school Younger schools which rely almost completely on current parent and grandparent giving felt the downturn in the market Elementary schools felt both the downturn in enrollment and giving – families feeling that a public option would be “acceptable” for a younger child
5. Is the bucket of dollars smaller? According to the Federal Reserve The median household lost nearly 39% of its wealth from 2007 to 2010 Income among the richest 10% of Americans fell 7.7%
6. Yet ……. In 2010 there were 15 gifts of $50 million + to higher education In 2011 there were 6 gifts of $50 million + to higher education No data for independent schools
7. Anecdotally……………….. Donors of mega gifts are giving – for them the market volatility is the “new normal” and they are moving on Traditional major gift bands (six figure gifts) are more problematic – they are worrying about retirement assets, unemployed children and grandchildren and the ability to fulfill a pledge over time.
8. A Marts & Lundy Special Report – State of Philanthropy 2008 to 2011 In Independent Schools: Cash for operating support shows growth of 4% in unrestricted gifts and even more robust growth of 10% in restricted gifts. Why the more robust growth in unrestricted? Shift in donor attitudes where donors favor a gift to a specific institutional priority over unrestricted annual fund appeals
9. Same report for independent schools Cash for capital support, (FY2011 over FY 2009) has increased 16% for endowment while gifts for facilities have decreased 17% Still, giving has not rebounded to the 2008 levels –despite increases
10. Is a smaller bucket of wealth the only problem? While the economy and re-distribution of wealth are key factors in what we are seeing, we also suggest a third factor which is impacting results and that is institutional perspectives and allocation of resources within the advancement program.
11. Donor attitudes Donor attitudes has shifted but institutional messaging and donor engagement has been slow to adapt. Some schools act as if they are victims of circumstances Others are defying all odds and enjoying record years
12. Distinguishing Characteristics Enlightened leadership Within advancement and within the school Define the role you wish philanthropy to play in the life of the school Invest in it Volunteer Leaders in Philanthropy engage at the highest level Recognize: Donors want engagement and conversation over informing and educating
13. Are schools less of a priority for donors? Many schools are under soliciting (not enough volunteer help and the culture doesn’t support staff soliciting) Schools that emphasized transactional giving suffered during the recession Little identification and engagement of donors Schools that presented “Ideas” which created solutions and had a positive impact on teaching and learning suffered far less – in fact, many have achieved great success in both annual and capital giving. Schools that can answer the “Why?”
14. Bottom line is Value Do your donors value the contribution you are making to students and/or the community? Can you illustrate that the results of philanthropy provide you with the resources to do significantly more for student learning and program innovation?
15. An example……… NYC Day School Institutional Expenses $32,932,000 Endowment 113,200,000 Draw (5%) 5,660,000 Gifts to current operating 5,025,000 Draw + gifts to operating 10,685,470 Draw/operating as % of IE 32.4%
16. Another example MA Boarding School Institutional Expenses 47,103,500 Endowment 387,500,000 Draw (5%) 18,375,000 Gifts to current operating 5,188,626 Draw + gifts to operating 23,563,626 Draw/operating as % of IE 50%
17. Are donors changing where they want to give within schools? Yes, for many, particularly within the annual fund Donors want to have an impact with their gift Donors want $$ directed at people and programs more than facilities Great emphasis on giving which supports faculty Current parent donors recognize the need for adaptation and innovation
18. Giving to endowment More likely that gifts from alumni will be directed to endowment Current parents need a great deal of conversation and engagement to understand the value of endowment Some donors today are believe each generation gives to immediate programming needs, not endowment
19. Culture Clashes – Old versus New Money Old versus new and more Self – made wealth often wants “immediacy” and “impact” Challenges Non native-born donors Lack of familiarity with mainstream American philanthropy systems & structure
20. International Fund Raising Families of current International students Many boarding schools are having great success There are steps to follow for success International alumni Involvement from graduation on is imperative Membership on governing boards
21. Schools with egalitarian cultures Resistance to high levels of recognition Desire that all events are inclusive Lack of culture of philanthropy
22. Bottom Line Three essential elements: Case for support Constituency that is engaged in meaningful conversation with the school Catalysts – Staff and volunteers who move the program forward
23. Q and A