HBCU FUNDRAISING

HBCU FUNDRAISING: CREATING A CLIMATE OF BUILDING NOT BEGGING

BY R. WAYNE WOODSON

A strong fundraising plan is critical to the success of any nonprofit organization. Historically Black Colleges and Universities rely heavily on donations to implement their missions. Although HBCUs receive income from tuition, it is extremely important that they maximize support from alumni, faculty, staff, students, families, corporations, foundations, friends, and other organizations. With such a vast network of potential funding sources, it is interesting that there has been an increase of HBCUs experiencing challenges securing the necessary funding to ensure fiscal stability.

Why does a fundraising challenge exist at some HBCUs? This question is frequently asked and the answers are not simple. There are a number of factors that might impact current funding. Although it is understood that fundraising is important, HBCUs are often focused on meeting immediate budgetary demands. Each of them is trying to secure every dollar possible for the institution. This task is being completed in a climate that in many cases is presenting an inaccurately negative narrative about HBCUs. This narrative hinders successful fundraising efforts.

In many cases, HBCUs are attempting to meet fundraising goals with Institutional Advancement offices that are understaffed and underfunded. There are instances in which the entire Office of Institutional Advancement has less than four full-time staff people. Some of these offices have budgets that are significantly less than the amount necessary to meet the expected goals. For these offices, the idea of spending the time necessary to successfully cultivate a major donor is hard, because they have to maximize every minute for the greatest return on investment. Although that donor might give a large gift at the end of the cultivation process, the staff member working on the solicitation may have missed out on 10-20 smaller gifts that could have been used to meet immediate needs on the campus.

In addition to offices being understaffed and underfunded, HBCUs do not have a history of creating donors in their current students. Many students feel that fundraising is something that is

done by the administration. There is often a lack of connection between the current student body and the institution’s fundraising plan. A great deal of energy is spent instilling in students the school’s history and spirit, but that same effort is not regularly put into creating a student-centered giving program. If students are molded into givers from the beginning of their connection to the institution, then they will more than likely continue that behavior once they become alumni. Alumni giving is critical for institutional longevity.

The success I have experienced throughout my 20 year fundraising career can be attributed to a three tier approach to giving. The process focuses on cultivating, securing, and acknowledging every donor (unless they have requested to remain anonymous). In the nonprofit sector, a great deal of resources are invested in cultivating and acknowledging. The investment creates a significant return, because it cultivates long-term donors who have developed a connection to the mission and work. The expectation is that this connection will motivate them to give more consistently without the need for such a great investment of resources in the future.

Acknowledging donors and gifts creates a sense of value. Events to thank small and large donors impacts the securing of future gifts because donors see the importance of their investment. In many cases, donors who gave smaller amounts encouraged friends and family to contribute, which increased the donors pool and overall giving rates. In some cases, those small donors over time increased their own giving amounts. Cultivating and acknowledging are critical for fundraising success.

When I started working with HBCUs, it was surprising that acknowledgement was not viewed as critical in the fundraising process as it was when I worked for arts and social service organizations. In some cases, HBCUs only follow-up with a thank you letter. Some donors did not hear from the institution

again until it was time to implement another appeal or request additional funding. Utilizing this approach to securing donations does not create a desire for long-term support. The overall goal of fundraising should be to build lasting relationships that will increase giving over a longer period of time. Continuing to connect with donors creates connections that sustain the fundraising structure. Without an expectancy of regular support, HBCUs have created a system in which they must beg people to give.

The lack of importance on cultivation and acknowledgement is most evident in alumni engagement. Often alumni say, “the only time the school contacts me is when they want money.” Or, “I don’t know what they even do with the money.” Sometimes the statement is, “Why are they always begging when I do not even know what is happening at the school?” These viewpoints can be addressed by consistent communication and cultivation. Alumni have a vested interest in their Alma Mater being fiscally stable and secure. Most alumni do not want their institutions to close, so they have some sense of obligation to help. In order to improve alumni giving, there must be a new cultivation structure that is based on consistent engagement and communication. Creating a giving climate in which alumni feel invested in the process of overall success will increase their desire to give and support. This is going to be extremely important for students who have graduated in the past 10 years, because they have a different expectation of communication and a desire to be connected. In some cases, these recent graduates feel that their small donation will not make an impact. By creating campaigns that are targeted to small donors, institutions have an opportunity to meet fundraising goals. By shifting the current giving paradigm, we can begin to stabilize the fiscal future of HBCUs.

Unfortunately, issues that have impacted HBCUs over the past 15 years have created a climate of panic. It has almost been like smaller HBCUs have been functioning in a State of Emergency. In order to move forward, this mindset has to be shifted. The long-term outcomes must be central to every decision, campaign and project. This shift will begin to create a more stable fiscal future for HBCUs. The focus must be on the history and successes of these great institutions of higher learning. Individuals, corporations and foundations must be made aware that by investing in HBCUS they are investing in the best of America.

Colleges and universities must begin to adequately invest in the Office of Institutional Advancement. Staff must be sufficient to accomplish the work. Budgets must include funding for cultivation and acknowledgement. An annual plan should be developed and funded. Fundraising plans should include realistic benchmarks and goals that can be measured by data. The design-as-you-go fundraising models must be discontinued. If there is structure in the process, people will become used to supporting on a regular basis. It is possible to create a fundraising structure that will move HBCUs forward. In order for this to happen, there must be a shift in thinking. Once this shift happens, increases in giving and long-term support will begin to become evident in data on campuses around the country. Equal attention must be given to cultivation, securing, and acknowledging donors. The ultimate goal is for a system to be in place that secures the long-term sustainability of HBCUs so that they are not relying on any single external entity to help fund the work that is being done on their respective campuses.

R. Wayne Woodson is Managing Partner for Woodson and Associates, Executive Director of The Woodson Fund, and Owner of RWYN Apparel. As a highly sought after consultant, his primary areas of specialty are fundraising, marketing, institutional effectiveness/strategic planning, and enrollment management. Mr. Woodson came to higher education after years of work in the non-profit sector as a fundraiser and administrator. He continues to provide consulting services to higher education institutions, nonprofit organizations, and corporations. As the Great Grand Nephew of Carter G. Woodson, the pioneer of African-American studies and labeled the “Father of Black History”, Woodson is a national spokesperson for educational access for underrepresented populations and the accomplishments of African Americans. He believes that a quality education should be available and affordable to all because education can revitalize urban communities and the upliftment of the next generation.