Philanthropy Study Committee
Evaluate and report on how to maximize private funding support UNM over the long term BENCHMARKING The Committee will benchmark other institutions, both peer and aspirational, and evaluate the size and scope of the peers’ development operations and funding mechanisms.
EVALUATING Drawing from the evaluation, the Committee will evaluate UNM’s philanthropic effort, encompassing staffing, funding, and design of philanthropic efforts going forward.
REPORTING A report with recommendations will be presented to the UNM Board of Regents and the UNM Foundation Board of Trustees by no later than June 30, 2012 (target date: mid-April 2012). (Amended target date: mid-March).
Philanthropy Study Committee
Review of Summary Points:
David Bass – AGB The percentage of state provided support to public colleges and universities has dropped from 46% in 1980 to 27% in 2005 and is expected to continue to decline Tuition has increased from 13% to 18% Private support at an average of 8.5% Private support is becoming more important as economic conditions change Private fund raising of major gifts is a long term process Foundation assets need to be around $750 million to $1 billion in order to produce income for the foundation to have reductions in institutional support
Philanthropy Study Committee
Review of Summary Points:
Paul Robell – University of Florida Foundation The Foundation relationship with the Deans has been the key to successful fundraising Our goal is for experienced development officers to raise at least an average of $2 million per year. . .it takes approximately 2 to 4 years to raise that level of funds Investment in development officers includes not only their salaries, but also staff support, administration and other related costs
Philanthropy Study Committee
Review of Summary Points:
Paul Robell – University of Florida Foundation (cont.) There is no direct relationship to funds raised and budgeted funds required to pay fundraising costs University of Florida Foundation holds and invests “callable” funds to be distributed as does University of Colorado The fee on endowment is 120 bps or 1.20% There is no gift fee
Philanthropy Study Committee
Review of Summary Points:
Cara Quackenbush - Eduventures There are 3 major groups of factors influencing return on investment: Institutional, Staff and Donors Important metrics are cost to raise a dollar, dollars raised per frontline officer, dollars raised per budget dollar, department investment per area, ratio of frontline staff per services staff FTE, ratio of donors to alumni base, ratio of rated prospects to alumni base and average gift size UNM falling in the $55 million to $99.9 million level. . . averages for this level were $70 million raised (annually) with a budget of $10.6 million. . .90 FTE advancement staff, 28 of those were frontline FTE
Philanthropy Study Committee
UNM Founda.on Staffing Infrastructure
18 16
UNM Found1on Actual FY10/11 FTEs
16
Eduventures 2010 Survey Median FTEs
Breakout of UNMF's "other service areas" category
14
Eduventures survey currently underway . UNM Founda>on FY11/12 data will be included to provide direct comparisons.
12 10
10
7
6
6 4
(see handout for addi/onal informa/on)
8
8
17
6
6.5
5 3
3 2
2
2
0 Marke.ng
Research
Stewardship and Events
IT/Data Management
Execu.ve Leadership
Finance & Accoun.ng
Human Resources
Opera.ons
Other Service Areas
Philanthropy Study Committee
UNMF – Comparing 2009 to 2012 Staffing
See Handout
UNMF Private Support: 2003-‐2011 $100,000,000 $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $-‐
Philanthropy Study Committee
UNMF – 2012 Summary of Departments and Staff Population See Handout
Philanthropy Study Committee
2011 Institutional Advancement and Alumni Relations Compensation Survey McConnell 2012 Report See Handout
Philanthropy Study Committee
Review of Summary Points: Cara Quackenbush – Eduventures (cont.)
Key Findings Increased investments over time in budget and staff produce higher fundraising totals Despite budget constraints institutions are continuing to invest in advancement staff
Philanthropy Study Committee
Review of Summary Points:
Richard Lawrence – University of Colorado Foundation UC made the decision to maintain investments in long term initiatives during tight budget periods Planned giving is the most efficient fundraising initiative with a cost of $.08 to raise a dollar UC holds monies to be distributed to the University until requested and earns a 3% short term interest rate on those “callable” funds The fee on the endowment is 135 bps or 1.35%. University of Colorado does not have a gift fee
Philanthropy Study Committee
Evaluating Funding Sources See Handout:
UFFO Survey Pros and Cons of Key Revenue Sources (How Public College & University Foundations Pay for Fund- Raising – Royster C. Hedgepeth)
CAMPAIGN HISTORY “EMBRACE EXCELLENCE”
• T imeline: 1986-1990 • Development Officers: 25-30 • Goal: $200-$250 million • Result: $392.6 million
CAMPAIGN HISTORY “IT’S PERFORMANCE THAT COUNTS”
• 1997-2000 • Development Officers: 40 • Goal: $500 million - $750 million • Result: $850.4 million
CAMPAIGN HISTORY “FLORIDA TOMORROW” • 2005-2012 • Development Officers: 74 • Goal: $1.2-1.5 billion • Result: $1.45 billion to date- 10 months remaining
Philanthropy Study Committee
Minus Model Reduc.on in Development Officers
(from historically low performing colleges)
minus 6 posi.ons
Reduc.on in Propor.onate Number of Administra.ve and Support Staff minus 6 posi.ons Resul.ng in Budget Reduc.on
$ 720,000
Resul.ng in Base Fundraising Capacity Reduced Annually (approximately) $5 million Resul.ng in Annual Base Fundraising Capacity
$45 -‐ $55 million
Philanthropy Study Committee
Model # 1 Current Budget plus Variance ($500,000)
(projected with 2% infla.on rate)
Current Staffing Levels
(25 frontline development officers, 83.5 total staff)
Budget (FY12/13)
$ 9.8 million
Annual Base Fundraising Capacity $50 -‐ $60 million
Philanthropy Study Committee Model # 2 Model # 1 Assump.ons plus Adding 10 Staff Over 5 Years Planned Giving Officer
Major Gig Officer Regional Officers -‐ East and West Coast, Central (to be assigned based on evalua.on) Total Frontline FTE
Budget (FY12/13)
Support Staff Total New Posi.ons
1 1 4
6 4
10
(5th year -‐ 31 frontline officers, 93.5 total staff)
$ 10 million
Annual Base Fundraising Capacity
$62 – $72 million
Philanthropy Study Committee
Model # 3 Model # 1 and Model # 2 Assump.ons plus Adding 10 More Staff (Total 20)Over 5 Years Addi.onal Planned Giving Officer
Addi.onal Unit Based Development Staff (assigned to historically most produc.ve units) Total Addi.onal Frontline FTE
Budget (FY12/13)
Addi.onal Support Staff Total Addi.onal Posi.ons
1 5
6 4
10
(5th year -‐ 37 frontline officers, 103.5 total staff)
$ 10.3 million
Annual Base Fundraising Capacity
$74 – $84 million
Philanthropy Study Committee
Evaluate and report on how to maximize private funding support UNM over the long term BENCHMARKING The Committee will benchmark other institutions, both peer and aspirational, and evaluate the size and scope of the peers’ development operations and funding mechanisms.
EVALUATING Drawing from the evaluation, the Committee will evaluate UNM’s philanthropic effort, encompassing staffing, funding, and design of philanthropic efforts going forward.
REPORTING A report with recommendations will be presented to the UNM Board of Regents and the UNM Foundation Board of Trustees by no later than June 30, 2012 (target date: mid-April 2012). (Amended target date: mid-March).