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The Road Back: Central Minnesota manages its new reality: Schools reach out to donors
Dec 26, 2009 (St. Cloud Times - McClatchy-Tribune Information Services via COMTEX) --
By David Unze
dunze@stcloudtimes.com
The evolving world of fundraising presented challenges to Stuart Lang, Rob Culligan and Craig Wruck even before the economy slid into a deep recession.
The vice presidents for institutional advancement at College of St. Benedict, St. John's University and St. Cloud State University, respectively, were courting an increasingly mobile and technologically savvy alumni base that suddenly had financial uncertainty as a weighty reality.
While many donors were able to weather the initial turbulence, many emerged more cautious and selective about their giving. The new fundraising landscape has caused Lang, Culligan and Wruck to refocus and refine how they raise money, and they've had to do it while keeping an eye on their own bottom line.
"In this new world, the donor really is in the driver's seat," Wruck said. "Our job is to help navigate."
Giving shows decline
Charitable giving in 2008 was estimated at $307.65 billion, down from a record $314.07 billion the year before, according to Giving USA Foundation. Adjusted for inflation, that was down 5.7 percent from the year before, the largest drop in more than 40 years, according to Giving USA.
Two-thirds of public charities reported declines in gifts in 2008, according to Giving USA, and gifts to educational organizations decreased 5.5 percent in current dollars, about 9 percent after inflation adjustments.
When the economy faltered, St. Ben's and St. John's were coming off capital campaigns that exceeded their goals and ended months earlier than planned. St. Ben's raised $82.7 million in its $80 million campaign, while St. John's raised $168 million in its $150 million campaign.
A large portion of that money goes to students who need tuition assistance, which also is a top destination for the money that St. Cloud State raises.
As the economy causes donors to narrow their choices of charities and organizations that will get their money, it makes it more important to show how that money is being spent, local fundraisers said.
St. John's doubled its communications with alumni and focused on showing how their gifts kept students in school and how important education is to solving the problems that are plaguing the world, Culligan said.
St. John's launched an initiative called "No Johnnie Left Behind," in which students who were impacted by the economy and had hardships were able to rework their financial aid packages.
"That program allowed 42 students to stay at St. John's who otherwise would have left school," Culligan said of the campaign, which raised $300,000.
Opportunities
There also was a jobs program in summer 2009 in which 80 full-time jobs were created for students including work in the campus arboretum and in painting and maintaining other campus infrastructure.
St. Ben's uses a variety of ways for alumnae and friends to support current students, Lang said. Donors respond well to direct mail and electronic solicitations, personal visits and phone calls, he said.
And technology provides opportunities as well
"Technology helps increase those contacts through Facebook, Twitter, monthly e-mail blasts, videos and the college's Web site," Lang said.
Colleges are exploring how to use video clips, social networking and online giving to engage supporters and show the results made possible by their gift, Wruck said. The university just sent out a year-end "e-greeting" that has a link at the end to its online giving site, he said.
"We've long known that the best charitable contributions are those that are made with passion," Wruck said. "Our most generous donors give because of the impact they can have on the life of a student. The new media allow us to demonstrate the real results of your contribution."
The days of sending slick, mass-mail pieces and measuring response rates are fading fast, he said.
St. Cloud State has slightly more than 100,000 alumni, and costs prohibit direct mailing all of them on a regular basis, Wruck said. The challenge is to find creative and less costly ways to stay in touch, engage and inform them and ask for support.
New media is effective, but it doesn't replace traditional communications, Culligan said.
St. John's has 22,000 active alums who get a direct mailing multiple times a year, and the printing budget for the alumni magazine, annual report and alumni events hasn't changed, he said.
St. John's recently revamped its alumni Web site and does a monthly alumni e-mail. The university sends out video clips leading up to Homecoming and sends a Christmas message to connect with alums, Culligan said.
Younger alums
Younger alums are more mobile and harder to reach due in part to the absence of landline phones.
"So you need phone, e-mail and social media contacts," Culligan said. "We have put a lot of time and effort into Facebook and Twitter."
St. Ben's and St. John's also have expanded what they offer alums. More focus has been put on engaging alums and highlighting support that is available to them such as life planning, networking and other services, Lang said.
"Our alumnae have really tapped into the vast network of St. Ben's and St. John's alums for career transitioning, job searches and support," Lang said.
At all three institutions, fewer people are giving, but the size of the gift is increasing.
And if Giving USA statistics are any indication, the private Catholic schools have a bit of an edge on attracting gifts than the public institutions.
Gifts to religion made up 35 percent of charitable giving in 2008, the largest type of gift. Second was education, at 13 percent.
Giving to religion increased an estimated 5.5 percent in 2008.
"Alumnae respond because of their love for St. Ben's, appreciation of our Benedictine values and their cherished experience," Lang said.
Additional Facts
The Road Back: About this series
Today through Jan. 2, meet Central Minnesotans who used the rough days and weeks of 2009 to learn how to build a different future.
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