Executive Fund Development Leadership Program 2012 Annual Giving

Executive Fund Development Leadership Program 2012 Annual Giving Strategies Brian Couch Sr. Director, Annual Giving Programs Office of University Relations Tuesday, October 23, 2012 1

Agenda • Annual Giving Alignment with Mission • Work Required for an Annual Fund • Developing a Capable Organization • Establishing an Operating Rhythm • Executing to Your Plan • A Strategic Plan for Your Annual Giving

Approach to Running an Organization Strategy/Mission Metrics/Success Work Required to Achieve Success Processes to Do the Work Skills/Resources/Capacity/Volume Required Operating Rhythm Organizational Structure

History The Notre Dame Annual Fund was established in 1942 to support operating costs by encouraging unrestricted giving to the University. Alumni, parents, and friends of Notre Dame are invited to make yearly contributions that will be applied to the University’s most pressing needs.

UR Vision • Deepen engagement of alumni, parents and friends in life of Notre Dame • Achieve $xxx. M in annual cash receipts by FY 17 • Achieve $xx. M in unrestricted giving by FY 17 • Transform fund-raising for academic priorities • Establish a culture that is rooted in the University’s core values and supports teamwork, innovation and individual performance

What is Your Organization’s Revenue Model? Target % of revenue derived from: • Endowments? • Expendable gifts? • Annual gifts? • Planned gifts? • Other revenue sources?

Areas Supported by Your Annual Fund? 2013 FY Plan Funding Needs $ Budget Line Item 1 $X Line Item 2 $X Line Item 3 $X Line Item 4 $X Total $XXXX • Prioritized in order, or equally funded? • Different funds for different purposes? • Central organization wide fund (unrestricted)?

Research

Residential Life

Service

Spirituality

Commencement

Gift Pyramid $100 K + $10 K + • Donor Goals Need to Be Aligned to Revenue Plan • Differentiation by giving level? $1 K + $1 -999 13

Prospect Identification Model Gift Clubs Major and Leadership Gifts Principal Gifts Capacity Annual Fund Inclination Love of Cause

Donor Life-Cycle Management Identify Contribute Ac Qualify qu isi tio n Cultivate Solicit Do Recognize no r E xp er ien ce Engage Upgrade/ Renew

Engagement Cycle

Fund Model Revenue Participation Success Donor Experience

Annual Fund Purpose • Raise in unrestricted gifts from donors who give less than $1, 500 • Achieve participation level targets for undergraduate alumni support of the University Segment • All donors who give less than $1, 500 including future donors; special concentration on undergraduate alumni Strategy • Use direct mail, electronic communications, and student callers as the primary vehicles to cultivate, engage, and solicit

Impact of Annual Fund • • Developing donors Recognition Society donors-in-training Facilitate transactions (Direct mail, phone center, online giving) Fund current needs; dorm renovations; areas of need Making the case for support; education of University’s needs/priorities Critical to future campaigns Create a lifetime philanthropic engagement Last year, gifts under $500 resulted in significant additional funding for Notre Dame!

Edward Frederick Sorin Society Purpose • • A vehicle for encouraging and recognizing individuals who support Notre Dame with an annual, unrestricted gift Gifts support the mission of Notre Dame and help fund areas of greatest need Segment Performance • Closed FY 12 with 8, 507 donors and approximately $20 M History • • • Founded in 1976 Largest and oldest society at Notre Dame Named in honor of Notre Dame’s first President

Edward Frederick Sorin Society Sorin Gift Amount Membership Level $500+ Corby Associates Level $1, 500 - $4, 999 Traditional $5, 000$9, 999 Founder’s Circle $10, 000 - $24, 999 Legacy FY 12 Gift Allocation Areas of Greatest Need $17, 887, 542 Financial Aid $703, 810 Academics & Student Life $501, 440 Catholic Mission $280, 127 Global Service $58, 400 SWEET SPOT FOR MEMBERSHIP IS 4565 AGE GROUP

Edward Frederick Sorin Society Examples of FY 11 Impact: • $2. 2 million to the financial aid office • $70, 000 to repair and refurbish the Grotto in FY 11 • $290, 000 to the Department of Applied and Computational Mathematics and Statistics to help support enhancements to computational facilities • $300, 000 to establish the Office of Internationalization • $250, 000 for stipends to hire graduate teaching assistants in the Jordan Hall of Science • $3, 000 in unrestricted funds was dedicated to the renovation of Fitzpatrick Hall of Engineering • $315, 790 to the Hesburgh Libraries

Persuasive Talking Points • A gift to the Sorin Society influences all areas of the University • It provides the “working capital” of the University • It is a gift that reflects belief in Notre Dame’s mission and trust/faith in its leadership • Notre Dame isn't something we've achieved; it's something we're achieving. A gift to the Sorin Society helps continue Fr. Sorin’s mission each and every day: to be a “…powerful means for doing good in this country. ” • Your gift will have a direct and immediate impact on the academic, spiritual, and personal development of our students.

Edward Frederick Sorin Society Fundraising Strategy • Personal engagement by Major Gift Officers • Two direct mail acquisition campaigns – Fall and Spring • Monthly membership/gift reminders • Lapsed donor outreach • Collaboration with Leadership team on annual unrestricted gift strategies • Phone Center calling • Regional Acquisition events – 5 to be planned in spring 2013 Major Gifts Officers • Campus-based solicitors whose purpose is to cultivate Sorin Society gifts in the range of $5 k to $25 K • Unrestricted, incremental gifts are the primary goal • Core portfolios of 250 prospects are refreshed each quarter • Mini-campaigns also occur throughout the year targeting potential benefactors outside of core portfolios • Regionally-targeted (East, Midwest & West) • Focus is upgrade, acquisition, renewal and recapture

Edward Frederick Sorin Society Why join the Sorin Society? 1. 2. 3. Out of gratitude for my ND experience Out of loyalty to ND To support ND’s areas of greatest need 4. Football ticket and/or parking pass benefit

Edward Frederick Sorin Society Donor Experience: • Personal invitations to regional events • Opportunities to meet and engage with University leadership • Having a dedicated point of contact at Notre Dame for questions & interests

Organizational Design Principles • Clear segmentation of donor base (current and potential) • Clear ownership for solicitation and donor experience by segment • Geographic segmentation • Clear revenue & service level targets owned by team and individuals

Donor Experience & Interests Segmentation by Interest Donor Experience Parents Alumni Young Alumni Multiple Others Annual Fund Corby Sorin President’s Circle Restricted Targeting & Developing Content – More Complex

AGP Organization Annual Giving Corby Annual Fund Sorin Fund O’Hara Thomas More Rockne Function Interest Groups Donor Experience Mar. Com Ops. Analytics Other Support Functions Full Capability for Each Segment Integrated Execution

Mar-Comm Org Structure Marketing / Communication Operations Composition and Content Online Technology Direct Mail • Plan, manage , and execute Direct Mail strategies that focus on unrestricted fundraising and undergraduate participation • Includes coordination with Donor Services, DIS, other segment owners, and outside vendors • Manage and monitor online giving • Create, manage, and distribute broadcast emails • Create event registration forms • Support member-only communities Phone Center • Call Alumni, Parents and Friends and ask for an Annual Fund pledge • Focus on upgrade gifts • Focus on acquisition and renewals

Mar/Comm Operations Online Electronic Support Broadcast emails • Calendar Management • Sent through my. Notre. Dame • 2 levels for email population • Recognition Society Sealed Communities • Monthly thank you emails • Monthly renewal emails Online Giving Forms • 9 giving forms Event Registration Forms

Mar/Comm Operations Phone Center • Created in 1987 to provide another way for the University to stay in touch with its alumni, parents, and friends • 130 Notre Dame students are employed at the Phone Center of which 11 are Student Managers, 2 are Sr. Student Managers • 63, 000 calls are made per semester • 6, 500 pledges are made per semester • Roughly 75% of pledges are fulfilled

Interest Groups Team Reunion Giving » 50 th Reunion » 15 -45 Year » Dorm Challenge Parents’ Program Young Alumni » Corby Society » Annual Fun Student Philanthropy » Senior Legacy Gift » Underclass Fundraising

Volunteer Fundraising Committees • 10 members (individuals and/ or couples) • $? ? K commitment by each member • $? ? K goal/expectation through peer to peer solicitation • Solicitation of peers • $? ? ? K incremental growth in year one $? ? k individual gift $? ? k peer-topeer gifts 10 members $? ? ? K in year 1

Donor Experience • Fellowship • Impact • Access • Identity Donor Experience is Key to the Relationship

Donor Experience Elements • • Acknowledgements Reminders Annual reports Events (incl. concierge) Tokens of appreciation Public recognition Communications Service Levels by Element & by Segment Aligned to Donor Interests

Matching Gifts Programs Contributions from a corporate employer that matches gifts made to a charitable organization by the corporate employee A donor can arrange a match by: • Obtaining a matching gift form from the company and sending it with his or her gift • Providing the company a receipt or acknowledgment from Notre Dame • Using the donor’s company’s website

AGP Operating Rhythm Meeting Segment Performance Review Purpose Revenue Donor Service Levels Work Plan Execution Support Function Review Donor Service Level by Segment Schedule Fidelity Process Capability (KPIs) Project Review Continuous Improvement Programs/Appeals–Strategy/Growth Budget /Finance Spend by Department Cost to Serve Targets Cost Reduction Programs People, Org Capability Training Achievement ND Voice Performance Organizational Development AGP Op Rhythm Standing Meeting Every Thursday 9 -11 a. m.

Fund Dashboard Revenue Generation • Total revenue Participation Rates • Total donors • Upgrades (in & up) • Renewals • Recaptures • New Donor Experience Execution of Work Plan • # Touches • Schedule fidelity • Voice of Donor F/B • Budget performance

Continuous Improvement DMAIC: A 5 -step, organized way of improving processes: • Define: describe exactly what you’re trying to do • Measure: figure out how well process works now • Analyze: understand why it’s working this way • Improve: identify best way to make it better… try it out…fine-tune it…put improvement in place • Control: make sure the process stays improved

Fundraising Process Objectives: • 25 – 50% increase in overall revenue yield • Increase the value-added time fundraisers spend on cultivation, solicitation and gift close activities by 25 -50% D- Define M- Measure A –Analyze I- Improve C - Control

Question & Answer