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alumni fundraising in the united states cafamerica solutions may, 2007

Contents. Status of UK University FundraisingCAFAmerica Solutions for UK UniversitiesAbout CAFAmericaCAFAmerica Services. 2. 3. University Fundraising. Status of UK University FundraisingUK universities measure the value of fundraising operations based primarily on new gifts and pledges raised each financial year.UK lags behind US in terms of funds raised and rates of alumni giving.Extremely low alumni giving rates

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alumni fundraising in the united states cafamerica solutions may, 2007

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    1. 1 Alumni Fundraising in the United States CAFAmerica Solutions May, 2007 Susan Saxon-Harrold Chief Executive Officer, CAFAmerica

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    3. 3 University Fundraising Status of UK University Fundraising UK universities measure the value of fundraising operations based primarily on new gifts and pledges raised each financial year. UK lags behind US in terms of funds raised and rates of alumni giving. Extremely low alumni giving rates sector average of 1% in 2004-2005 of contactable alumni compared to approx. 15% in US for state universities and approx. 45% for Ivy League institutions. UK higher education (HE) institutions raised on average 1.6m each in 2004-2005 (excluding Oxbridge) for an estimated 450m. Total private giving to US HE sector was 13.5b in 2004-2005. Only 13 UK universities raised more than 5m in 2004-2005. Investment in HE: US 2.7% GDP, UK 1.1% GDP. US & UK governments spend roughly the same percentage of GDP on HE. Discrepancy is due to levels of personal giving.

    4. University Fundraising On the Bright Side UK university fundraising has grown in the past three years, supported by increased investment in development activities. UK university fundraising is cost effective - 1 generated for every 28p invested, on average. Research has shown that consistent and sustained investment in attention to donors can generate significant returns. 25 years ago, US state universities raised little via personal giving. Now voluntary giving comprises a significant portion of their revenue through an investment in fundraising. 4

    5. How CAFAmerica Can Help Gain the Expertise and Reputation of CAFAmerica US donors want the security of knowing their money is being used wisely. CAFAmerica has been a respected leader in the international non-profit sector in the United State for 15 years. Thousands of individuals, family and community foundations, and corporations trust CAFAmerica to support their international philanthropic goals each year. Reach A Broad Donor Base Private gifts provide revenue to support projects and build endowments that limited state funding cannot. Very few UK universities ask their contactable alumni to make a donation every year. CAFAmerica helps you reach your US alumni easily and cost effectively and gives you a mechanism to collect and track annual donations. 5

    6. How CAFAmerica Can Help Relieve Administrative Burden Development office expansion at UK universities has outgrown the supply of development professionals. Larger fundraising programs raise greater amounts of money. Using CAFAmerica to support your US fundraising eliminates the need for administration to set up an independent US charity. Take Advantage of Legacy Gifts Legacy gifts represent 17% of received cash income for UK universities in 2004/2005. CAFAmerica can help set up charitable remainder trusts and charitable leads trusts for your US donors. 6

    7. How CAFAmerica Can Help Fundraise Cost Effectively You dont have to spend a lot to make a lot. Even young fundraising programs boast a 1 return for each 38p invested. More than half of UK universities who raised more than 5m in 2004/2005 spent less than 1m on fundraising. The cost of establishing a US charity is $15,000-$18,000, not including staffing and administration. CAFAmerica costs a mere $3,000 per year (approx. 1,500) for a Friends of Charity Fund Customize For Your Fundraising Program CAFAmerica offers a variety of programs to meet the fundraising needs of UK universities Donor Advised Grants: one-off gifts made at any time. Minimum $500 donation. Friends of Charity Fund: an easy, convenient, and cost effective tool for raising unlimited donations in any amount. Consultancy: services to help identify US grantmakers, review grant proposals, and support US fundraising programs. 7

    8. Why Build a Relationship with CAFAmerica? US donors cannot give directly to foreign charities and receive tax benefits, but donors can give to CAFAmerica and receive a tax deduction. UK charities register with CAFAmerica for $60 and become eligible to receive grants for three years. CAFAmerica enables foreign charities to establish a Friends of Charity Fund so they can independently engage in US fundraising. Once eligible, UK charities are listed on our website a low cost way of building visibility amongst US donors. CAFAmerica has relationships with mamy different donors. When you apply for eligibility with CAFAmerica we learn about your programs and needs which we can then relay in our conversations with US donors. By taking care of all the legal and administrative duties involved, CAFAmerica makes it easy for US donors to support your charity. 8

    9. 9 CAFAmerica Introduction Mission CAFAmerica makes it safe, easy, and effective for US donors to engage in global philanthropy. Overview Established in 1992, CAFAmerica is a US registered 501(c)(3) public charity, enables us to receive tax-deductible contributions from US donors. We provide international grant making and consultancy services to US donors. Donors can give as much as they want, where they want, to legitimate foreign charities of any type. Our donors include companies, families, individuals, private & community foundations. CAFAmerica can make a grant to any legitimate foreign charity around the world as long as there are no legal or ethical barriers to doing so. Since 2001, we have made over $62 million in grants to charities in more than 70 countries around the world, with over 1,900 grants made in 2005 alone. CAFAmericas grant making services are growing, with 2 new services introduced in 2005/06. We help donors devise grant making strategies that enable their global giving investment to make a difference in countries around the world, identify donors to encourage collaborative grant making, and accompany donors on visits to identify grant making opportunities. We help donors turn their vision into grant making that achieves results and lasting impact. CAFAmerica is a member of the CAF International Network.

    10. 10 CAFAmerica Services The CAFAmerica Friends of Charity Fund A cost-effective alternative for charities to establishing their own charitable entity in the United States. The Friends of Charity Fund avoids the hassle of administering a separate charitable entity and enables charities to launch and maintain a US fundraising appeal, accept tax-deductible donations of any size from US taxpayers. Collect an unlimited number of donations in any amount. Access to resources to help start and support a U.S fundraising campaign. Direct link for donors to Fund encourages giving with increased security and ease. Web based and customized paper based donation mechanisms provided. CAFAmerica staff support and advice. $3,000 per year for first 100 donations. $1,000 one time set up fee. Quarterly disbursements wired directly to a charity bank account. Charities must be eligible with CAFAmerica to open a Friends of Charity Fund.

    11. 11 CAFAmerica Services How to open a Friends of Charity Fund Apply for eligibility with CAFAmerica. Once you are eligible to receive grants from CAFAmerica, complete the Friends of Charity Fund agreement and return to CAFAmerica with your set up fee and first year administrative fee. The Friends of Charity Fund gives you: A hassle free way to collect contributions from US donors. The ability to accept an unlimited number of donations in any amount. Quarterly disbursements of the balance of your Fund (less any outstanding fees). Online access to your Fund to view your donations, balance, and disbursements at any time. Information to distribute to donors about the Fund and easy donations methods by post or online. Information on U.S fundraising to get you started.

    12. 12 CAFAmerica Services Consultancy Services for Foreign Charities Identify opportunities to raise visibility in the United States (e.g., participation in conferences, media outreach, meetings, etc.) Craft a message and fundraising materials for a US audience. Identify private and corporate foundations and other donors who may be inclined to support a charitys work. Review US fundraising programs and grant seeking proposals. Identify fundraising consultants and firms that can help create a successful US appeal, and help negotiate the terms of an agreement. Find other like-minded charities in the United States and around the world to work as partners in joint marketing/fundraising efforts. $150 - $300 per hour depending on the scope of work.

    13. Contact CAFAmerica Samantha Dutill Grants Program Officer sdutill@cafamerica.org Chani Robinson Grants Officer crobinson@cafamerica.org CAFAmerica 1800 Diagonal Road Ste. 150 Alexandria, VA 22314 T: 703.549.8931 F: 703.549.8934 www.cafamerica.org 13

    14. Sources University Fundraising An Update December 2006; The Sutton Trust UK HE Sector Survey of Gift Revenue and Costs, Report of Survey for 2004-2005; The Ross Group, Council for Advancement and Support of Education Why the UKs universities are dwarfed by Stanford; Stephen Tall; Feb 26, 2007 14

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