11 Observations on Fundraising in an Uncertain Economy

The following rough outline was a presentation given at the NAADD Convention by Sheila Smith, Associate Vice President for Principal Gifts at The Ohio State University. It came during a presentation on The Future of Athletics Development. I found the presentation and points to be very applicable and something every development officer should know.

1.) Understand the Environment – This point spoke to the need for a development officer to see the life of the donor. This means watching the stock market for clues on the donor’s company performance and being able to talk intelligently about business matters. Also, she mentioned she tries to see donors on a day when their stock is going up!

2.) It is Competitive – There are more and more non-profits rising up all across America every day and they are all asking for gifts and contributions. This forces a development officer to be on top of their game, which only makes the school and the fundraiser better.

3.) Understand your Case for Support – This is was an excellent point for any type of fundraising organization. In two concise paragraphs, be able to define why people should donate to your cause. It will most certainly come into use when talking to new prospects and current donors.

4.) Engagement is the Key to Investment – A development officer should let people know that they care. Engagement should get people involved and not always worry about a gift right away.

5.) Be Open to New Collaborations – Seek new possibilities and resources across campus. This could mean a partnership with the communications department to produce a video or working with the IT office for online event registration.

6.) Be Inclusive - In today’s society, it is vitally important to include both parts of the couple in recognizing gifts and in building relationships. Women tend to be more generous than men, so never assume you should focus on one person, include both as equals. In fact, at Ohio State, they give awards to couples, not just one person.

7.) Results Really Matter – When a donor makes a gift, they need to see the impact of that gift, not be told to wait four to five years for project completion. When they can see a near immediate effect, they will feel their gift has gone to a worthy cause.

8.) Consistently Inventory your Development Assets – Use this practice to come up with innovations and imitations of best practices. Make lists of these assets and brainstorm on ways to use them.

9.) Rethink Endowments - Encourage donors to give cash now or to causes that are pressing. Endowments are important, but with the stock market hit, they can lose some value.

10.) There are Winners, Even in a Down Economy – While some or even most companies will be hurt by economic downturn, there will still be some that come out ahead. Find those companies and donors.

11.) Never Give up on a Prospect – There is always another move to engage the prospect or a different approach. Seek those out in tough times.

This is just one piece of our 2010 NACDA Convention Coverage. Over the course of the next few weeks, we will be posting on more topics we learned about during our time in Anaheim.

Taylor Wood

Online Forum Explains New Plan

After recently introducing a new initiative in the Nittany Lion Club (the Nittany Lion Club Seat Transfer & Equity plan), Penn State Athletics found themselves in a situation that can be found at schools across the country: their donors had questions…lots of them. Of course, the administration at Penn State provided the answers to most questions on their website in a very detailed and complete manner. Anyone who could get online could find the reasons, strategies, and processes to work with the new plan.

Fortunately for their donors, Penn State staff sought out a creative way to answer questions that their donors had about the new program. Using technology that provides them with an online and live chat-room, the staff in the Nittany Lions Club (including their Associate Athletics Director) answered questions for 60 minutes on their website. Fans and donors could submit questions in advance or during the program that the staff would answer in real time with all the answers that their fans needed.

This type of online forum could be used for any number of functions for an athletics development department. Obviously, new initiatives come to mind, but special press conferences, event announcements, and interviews can be conducted using similar technology and the donors or fans of the school would benefit.

Rob Norris

Hofstra issues challenge for former-student athletes to give

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Increased participation by former student athletes is a goal of every athletic department.  To reach this goal, universities will often go through long and creative processes to reengage former student athletes.  To this point, Hofstra Athletics and the Hofstra Pride Club Board of Directors recently launched its inaugural Former Athlete Participation Challenge.

This challenge at Hofstra has created a competitive contest among its former letterwinners where, “the sport program with the highest percentage of participation will receive $10,000 toward their program”.  Specifically, teams receive a certain amount of points based on the percentage of alumni giving multiplied by 1000.  Additionally, 2 bonus points can be achieved per online gift over $25 made between now and May 31^st.

Initiatives like the Former Athlete Participation Challenge are becoming commonplace in athletics development all across the country, as athletic departments are continually looking to reconnect with former student athletes.  More importantly, creative programs such as this one are perfect ways for universities to get the competitive juices of former student athletes flowing in a way that benefits current student athletes.

Michael Speight

This post was contributed by Michael Speight, a graduate student in the Ohio University MBA/MSA Program. Michael will begin to contribute on a regular basis, so look for more great stories in the future.

University of Alabama updates donors on progress of stadium renovation

The University of Alabama is using a new and interesting approach to keep their donors in the loop on their football stadium renovations. Bryant-Denny Stadium is undergoing a South Endzone expansion project set to be completed before the upcoming football season. In addition to launching an informative website, the University is also producing update videos via YouTube.

In these update videos, they have an athletics department personality talk about the expansion and update donors on the progress of the construction. This interactive approach is in many ways better than a picture gallery or a webcam because it puts the viewer in the stadium with a personal tour.

Videos are a great way to engage your donor clients and keep those who donated to the project in the loop on the construction of the facility. This keeps all fans of Alabama Athletics in the loop on this high profile, high interest project, generating buzz amongst the fan base.

Special thanks to Brian Gainor for sending along information about this project.

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YouTube videos: Educating your donors and communicating your fundraising message

Hope College, located in Holland, Michigan, has recently launched a viral campaign of YouTube videos directed toward educating viewers on a wide range of university-related topics. One of these videos explains, in approximately two and a half minutes, endowed student scholarships at Hope College.

In the brief, but comprehensive video, a number of key fund raising tactics are employed. First, the video begins with a mural of student pictures, putting a face to those who benefit from endowed scholarships. Second, the basic financial aid model is explained in a simplified form, shedding light on the percentage of students who receive some sort of aid and the average amount of money students receive each year. Third, the opportunities available to students as a result of donor support as well as a complete breakdown of the allocation of donor funding are given.

Once this information is communicated, the stage is set to present a goal and to solicit support for the future – which is exactly the strategic approach taken in the video. The goal is to increase the endowment by $140 million, with $50,000 designated for student scholarships. The video continues to explain the amount raised and the total number of endowed scholarships to date – 623. The last major piece to any fund raising strategy, stewardship, closes the video with a formal “Thank You.”

In an interactive age, disseminating information in a short, easy to watch, entertaining way will surely reach a wider audience and be more effective at communicating the message. Many athletic departments publish brochures or attempt to explain the process illustrated above in written form on their website, a more traditional approach. The innovative and creative example shown here by Hope College sets the bar for future donor communication.

To view the Hope College Endowed Scholarships video, click here

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Matt Kirinovic

Make Jim Pay – Washington State uses radio talent to bolster new campaign

Washington State University, in need of a variety of facility upgrades to service all their sports teams, has launched a new development fund called the Student-Athlete Excellence Account. This new fund is designed to improve the experience for all WSU student-athletes and engage a donor group that includes former student-athletes, alumni, and university friends. The most unique part of this campaign is the use of their color analyst (and former WSU head coach), Jim Walden, for the fund drive.

Jim Walden has been describing Cougar football for the past nine years and, in an attempt to spur giving to the Student-Athlete Excellence Account, is putting up his own money as a matching gift to the athletics department. For each $5 donated to the new account, Jim will donate $1 of his own, up to $100,000. However, if the account grows to $1 million, Jim will donate an additional $100,000 for a total of $200,000 for WSU student-athletes.

The use of radio/television talent in fundraising is not unique, but the degree that Washington State is utilizing their long-time football analyst is impressive. Schools looking for a unique way to engage fans and facilitate new donations should look to WSU for an example of a creative, and perhaps effective, plan. To see the “Make Jim Pay” video and read more about the account, click here.

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Rob Norris

Winston-Salem State re-introduces Red and White Club

Winston-Salem State Athletics have brought back the Red and White Fund as the primary fundraiser for Rams student-athletes. WSSU re-introduced the club after the athletics department replaced it with the AMON Booster Club. However, newly appointed Director of Athletics William “Bill” Hayes brought the program back when he returned to WSSU on January 1, 2010.

As part of the re-introduction, WSSU has announced the creation of the 1000 HORN$ program. The 1000 HORN$ program is the main annual giving initiative towards the Red and White Fund goal of $1 million a year for the athletics programs. The 1000 HORN$ is the idea to get 1,000 people to give $1,000 a year to reach the $1 million goal.

WSSU recent announcement is a unique move for an athletic fund. It shows the strategic changes that can be brought about by an administrative change. The 1000 HORN$ program is a clear means to meet the new organization’s goals. Very few departments state explicitly that they are trying to raise $1 million from 1,000 donors. But by branding the initiative, Winston-Salem State increases the probable success of the program.

Sean Phifer

From Marketing to PR to Development: Converting Goodwill into Fundraising

In my post last week, I wrote about the importance of PR and Marketing to development officers and promised an anecdote.

In this instance, both effective marketing and a devotion to public relations work cultivated a donor who will be a significant supporter for years to come.

This particular donor is a local small business owner and alumnus (as well as former student-athlete) who recently relocated to the area.  Upon his return, being a savvy buisinessman, he noted two things: 1) How prevalently and prominently our corporate sponsors were featured in our promotions and marketing of athletic events, and 2) How little his competitors seemed to take advantage of options available to them through our athletics marketing and promotions program.  In the earliest stages, it was the way that we effectively marketed businesses that caught his interest and piqued his imagination — if we could do this for other local companies, what could we do to help promote him and his operation?

Seeking a unique way to promote his business, we involved him in some lower level marketing programs, such as individual game sponsorships and eventually a season-long promotion to which he purchased the naming rights.  These programs increased foot traffic in his store and increased awareness and visibility of his business, as all effective marketing should.

Then, we stepped the game up.  The following year, we made his business the corporate sponsor of our athletic annual fund.  The alumnus and former student-athlete turned businessman was now a corporate partner of his alma mater. He earned recognition for his business on the nearly 5,000 brochures that we sent out for renewals, renewing and first time members of the Athletic Association earned a 20% discount at his store (increasing foot-traffic) and most importantly, in every press release about the annual fund on the website, newspapers, or via E-List includes a blurb about his business, his address, and his website.  We have promoted not only the benefits one receives from becoming a dues-paying member, effectively marketing his business, but we also published an initial release highlighting that an alumnus and former student-athlete was giving back to his alma mater, generating precious goodwill for him and his business.

By marketing and creating goodwill through public relations for this supporter, we have increased his in-kind and cash donations over twenty-fold YOY, with promises of more significant financial support to come.

This anecdote shows how effectively marketing and generating goodwill for your supporters can create favorable conditions for “asks,” where development officers do their best and most important work.

By William Broussard

Transparent ideas from the National Sports Forum

I have had the privilege to attend the National Sports Forum in Baltimore for the last two days. While the conference is more focused on sponsorship and marketing, I have found many parallels with development that can be utilized to help grow development offices.

Sponsorships

In a panel with representatives from some major sponsors in sports including Anheuser-Busch, Cintas, and Sports Clips, the consensus was do your homework and less-is-more in the early stages. Sponsors get hundreds of emails a day with ideas and proposals, but it is better to contact the sponsor after you have done extensive research into the company and ways the two brands match-up going into the future. This works the same in development. Very few schools have the luxury of getting large donations from unfamiliar figures. It is a daily challenge for fundraisers to gain the best understanding of the prospect to get the initial foot in the door. If you choose to approach the prospect via email, it isn’t going to do much good to send the large development brochure. Sum up the message into a couple of paragraphs and personalize it to that particular prospect.

New Media

New media such as Facebook and Twitter is a hot topic in sponsorship and marketing because no one has figured out how to make consistent revenue from the medium. Many development offices have dabbled in the practice, with the main goal spreading news about the offices to followers. While this can fulfill some objectives, one tactic being discussed extensively at NSF is using new media as a focus group to gain feedback. Allowing followers or fans to contribute to the school or feel as if they have insider information is a great way to build rapport with the group and gain important feedback from donors, particularly younger demographics.

Ticket Sales

Major League Baseball teams have one of the toughest tasks in attempting to sell tickets for 81 home dates between April and September. Because of this challenge, baseball teams have gotten extremely creative with season ticket holder programs. One such idea is a new customer reception at the beginning of each season. This reception not only allows the team to thank the new customer, but to also educate them. It is a great way to get in front of new customers early and ensure a relationship before renewals come up the next year. This is a strategy that can be utilized by development offices with new donors to grow their relationship but also to educate on the benefits of becoming a donor.

Sean Phifer

The Difference between Marketing and PR to a Development Officer

Dr. William Broussard works at Northwestern State University in both an athletics and faculty capacity.

First of all, I’m grateful for the opportunity to become a member of this community and want to share with everyone a little about me as a means of introducing myself.

I am Associate Athletic Director at Northwestern State University, Louisiana, a Division I member of the Southland Conference. I am also a professor of Journalism and Public Relations.  My full-time gig in athletics is as a development officer, overseeing the identification, cultivation, and stewardship of donors to NSU Athletics.  And my gig on the side is as a professor in the public relations component of our New Media studies-centered Journalism program, where I teach the basics of PR writing, management, and campaigns.  There is an interesting, fertile, and symbiotic relationship between these two roles and rhetorical spaces that I inhabit, and through both roles I’ve learned that effective fundraising and promotion of intercollegiate athletic programs require excellent marketing and its more often overlooked but no less important counterpart, public relations.

Much of what we do in intercollegiate athletic development involves securing funding and in-kind support for various initiatives.  There are fixed costs (scholarships, books) which require annual funding, campaign costs which require significant one-time investments, and always, always, tickets to sell and seats to fill.  This means that marketing, or the creation, acquisition, and satisfaction of customers, has as its end a monetary gain of some sort.  And plenty can be used to market athletics — interesting story lines, record-breakers, high performers, championships to defend — and so much more.  Look at any athletics website (check out www.nsudemons.com, for example) and you’ll find evidence of the prevalence of sports marketing, including game promotions involving corporate sponsors, branding, deals on tickets, and opportunities to get involved.

But the development officer should also be sure to produce or make available ample amounts of public relations materials, or materials which generate goodwill for your organization.  Examples include feature narratives about coaches and student-athletes, press releases about off the field accomplishments (like academic awards or community service), and routine contact with donors through E-lists, hand-written notes, and other forms of contact that simply keep them feeling good about your operation.  A nicely produced annual report, or a clipping sent with a note about a student-athlete sent to a benefactor of an endowed scholarship does not have the soliciting of funds as its end game.  Rather, it shows appreciation for past support and, hopefully, sets the stage for future asks.  It also creates goodwill among potential donors and supporters out there whom you may not have come into direct contact with.

So remember, take time to develop good marketing strategies and attend to the ways that you promote your program through public relations.  Both are keys to identifying, acquiring, and retaining consistent supporters of your athletic program. I will post some examples in upcoming submissions.