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Gearhart, G. DavidThe Capital Campaign in Higher Education. A PracticalGuide for College and University Advancement.National Association of Coll. and Univ. BusinessOfficers, Washington, D.C.ISBN-0-915164-98-195

230p.National Association of College and UniversityBusiness Officers, One Dupont Circle, Suite 500,Washington, DC 20036-1178 ($36.95 members; $49.95nonmembers).Guides Non-Classroom Use (055) Books (010)

MF01/PC10 Plus Postage.Accounting; Capital; Donors; *Educational Finance;Endowment Funds; Feasibility Studies; FinancialNeeds; *Fund Raising; *Higher Education;*Philanthropic Foundations; Private FinancialSupport; Public Relations; Trusts (Financial);Volunteers

IDENTIFIERS *Council for Advancement and Support of Education

ABSTRACTThis book is a guide to the major elements of

planning and conducting capital campaigns for colleges anduniversities. Chapter 1 provides an overview of a capital campaignand reviews the elements needed before campaign planning begins.Chapter 2 offers some historical background of development programs,and discusses selection of a campaign counsel, the campaign casestatement, and feasibility studies. Chapters 3 and 4 cover thecreation of a campaign organization, and the role of volunteers andthe external campaign organization. The process of soliciting andasking for gifts is addressed in Chapter 5. Chapter 6 describescampaign mechanics, including a brief discussion of campaign cashflow as it relates to bricks-and-mortar gifts. The public relationsaspects of campaigns are discussed in Chapter 7. Next, Chapter 8looks at campaign accounting in relation to guidelines promulgated bythe Council for Advancement and Support of Education (CASE). Finally,Chapter 9 reviews post-campaign plans including an agenda for futurefund raising. Twelve appendixes include: a typical feasibility study;a needs statements; sample language for named chairs, endowments andfellowships; samples of advertising campaigns; an organization chartfor a university relations department; and sample pledge forms. TheCASE management and reporting standards for educational fund-raisingcampaigns are also appended. (CH)

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0000

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The

Capital Campaign

in Higher EducationA Practical Guide forCollege and University Advancement

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BEST C PY BLE,===5,"PERMISSION TO REPRODUCE THIS U.S. DEPARTMENT OF EDUCATION

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EDUCATIONAL RESOURCES INFORMATIONCENTER (ERIC)

NACUBO I I ISms document has been reproduced asreceived from the person or organizationoriginating it.

U Minor changes have been made to improvereproduction Quality.

TO THE EDUCATIONAL RESOURCESINFORMATION CENTERIERICr

Points of view or opinions stated in this docu-ment do not necessarily represent officialOERI position or policy.

TheCAPITAL CAMPAIGN

in Higher Education

A Practical Guide for Collegeand University Advancement

G. David GearhartSenior Vice President for Development

and University RelationsThe Pennsylvania State University

NACUBO

3

Library of Congress Cataloging-in-Publication Data

Gearhart, G. DavidThe capital campaign in higher education : a practical guide

for college and university advancement / G. David Gearhartp. cm.

ISBN 0-915164-98-11. Educational fund raisingUnited States. 2. Universities

and collegesUnited StatesFinance. I. TitleLB2336.G43 1995378'.02dc20 94-44547

CIP

© Copyright 1995 by the National Associationof College and University Business OfficersOne Dupont CircleWashington, DC 20036

All rights reservedPrinted in the United States of America

Edited by Donna KlingerDesigned by Stacey Trey

4

Contents

Acknowledgments ix

Foreword xi

Preface xiii

ONE The Capital Campaign: An Overview 1

The Capital Campaign at Colleges and Universities 2

The Capital CampaignA Definition 3Institutional Readiness for a Capital Campaign 5

TWO Planning for the Campaign 15

Creating a Historical PerspectiveBeginningthe Planning Process 15

Campaign Counsel 16

The Campaign Case Statement 23

The Feasibility Study 23Public Feasibility Study 25Telephone Feasibility Study 25

Mail Feasibility Study 26Volunteer Feasibility Study 26

Institutional Strategic Planning and the Needs Statement 27Setting the Goal for the Campaign 29

Goal Determined by Competing Institutions 29Goal Determined by the Needs 29Setting the Goal for Public Relations Purposes 30Goal Determined by Feasibility Study 30

Need Goal Versus Dollar Goal 30Philanthropic Giving to Public Universities 31

Selecting a Campaign Name or Theme 32

THREE Creating a Campaign Organization 35

Integration of Institutional AdvancementThe First Step 35

Internal Planning Group 37

Staffing Required 38

Relationship of the Capital Campaign to OngoingFund-Raising Activities 44

Annual Fund 45Corporate and Foundation Relations 46Planned Giving 48

Communications 49The Volunteer Organization 49The Role of the President of the Institution

in the Campaign 50Assisting with and Endorsing the Campaign

Planning Phase 51Recruiting the Volunteer Committee for the

Campaign 51Attending Meetings of the Volunteer Group 51Acting as Principal Spokesperson for the Campaign 51Participating in the Faculty/Staff Campaign 51Soliciting Major Gifts 52

Role of the Chief Institutional Advancement Officer 52Providing Staff Support to the Chairperson

and President 52Serving as Liaison to the Volunteer Committee 53Serving as Campaign Director 53Providing Services to the Campaign Committee

Meetings 54Soliciting Major Gifts 54

Role of the Director of Alumni Relations 55Role of the College or University Relations Director 56

FOUR Volunteers and External Organization 59

Uses of Volunteers 59Serving in Leadership Capacities as Officers

of the Campaign 59Soliciting Major Gifts 60Providing Leadership 60Serving as Spokespeople for the Campaign 60

Recruiting Volunteers 61The Campaign Volunteer Committees and

Organizational Models 63The National Campaign Committee 63

6

The National Campaign Executive Committee 64The Honorary Campaign Committee 64

Organizational Models 64Gift Level Model 66Functional Model 67Geographic Model 69Academic Unit Model 69

Communications Committee 70Role of the Campaign Chairperson 70Role of the Campaign Vice Chairperson 72Role of the Campaign Treasurer 73Role of the Governing Board 73Role of the Development Council/Foundation Board 74The Faculty/Staff Component 74

Program-Specific Solicitation 75Annual Program Designation 75

The Student Component 76The Local Community Component 76The Alumni Association During the Capital Campaign 77Athletic Fund Raising During the Capital Campaign 78The Capital Campaign and Parent Giving 79

FIVE Solicitation ProcessAsking for the Gift 81

Why People Give to Capital Campaigns 81

Tax Considerations 81

Peer Pressure 84Altruism 85Immortality 85Control, Power, and Authority 86A Desire to Be Included, to Belong, to Be Important 87To Change History 87Don't Let the Children Have It 88All of the Above 89

Why People Do Not Give to Colleges and Universities 89"My Money Is All Tied Up" 89"Where Have You Been All These Years?" 89"I Am Leaving My Life's Labor to My Children" 89The Depression Syndrome 90"You'll Stop Coming to See Me" 90

7

Philanthropy Has Never Been a Habit 91The Pickle Theory 91Taxes 91

Physicians and Attorneys as Benefactors 91Prospect Management 93

The Prospect Management System 93Evaluation and Rating of Prospects 96The Process of Asking for a Gift 101Common Mistakes in Major Gift Solicitations 108

SIX Campaign Particulars 113The Six Phases 113Percent of Goal in Hand Prior to Public Announcement 115Cost/Budget of the Capital Campaign 116Information Systems 117The Gift Range Chart 120The Term of the Capital Campaign 121Campaign Cash Flow 122The Pledge Form 122Frequency Between Capital Campaigns 122

SEVEN Public Relations for the Campaign 125Institutional and Campaign Identity 126The Campaign Public Relations Plan 127

Phase I: Precampaign Publicity 128Phase H: Announcement of the Campaign 128Phase III: Informational Phase 129Phase IV: Concluding Campaign and Post-

Campaign Phase 129Internal University Publications 130External Publications 130The Lead Campaign Brochure 130Concluding Campaign Brochure 134Advertising Plan 135Speakers Bureau 135The Role of Video in Public Relations 136The Role of Video in Fund Raising 137The Campaign Kickoff and Concluding Events 138Board of Governors Resolution 140The Recognition Program 140

EIGHT Campaign Accounting 143

Needs Goal Versus Dollar Goal 144Call for Standard Reporting 144Lack of Uniformity in Campaign Reporting

A National Problem 145Three Key Concepts 145Government Funds 147Nongovernment Grants and Contracts 148

NINE Post-Campaign Plan 151

The Challenge Ahead 151

Post-Campaign Objectives 152Sustain and Increase Private Giving 152Collaboration with Academic Leadership 152Evaluation of Needs 153Focus Campaigns 154Creation of a College or University Development

Committee 154Maintenance of Development Resources 155Maintenance of Volunteer Programs 155Reassess Gift Endowment Levels 156

Maintenance of Donor/Constituent Relations Program 156Planning for the Next Campaign 156

Appendices AM 159

Acknowledgments

I would like to express special gratitude to David John Lieb forassisting with the compilation of the research for this book. Hisdiligent efforts were invaluable to the publication of this book,and I am grateful to him for his professional support.

I want to express special thanks to my office staff at The Penn-sylvania State University. Sandra Thompson, Jan Oakes, MaggieCrispell, and Barbara Ryzner were extraordinarily patient and help-ful as this project moved forward. I also wish to thank BernadineB. Prince, who was an early inspiration for this book.

Special appreciation is expressed to Martha Busha for her tech-nical expertise in assisting with the first draft of the manuscript. Iam also grateful to Michael Bezilla who assisted in the editing ofthe book and provided helpful suggestions.

I also wish to acknowledge the fund-raising consulting firm ofGrenzebach Glier and Associates, Inc., of Chicago, Illinois. Chair-man Martin Grenzebach and President and CEO John Glier haveprovided their expertise and guidance to me for many years, andmuch of their "wisdom" is reflected throughout these pages.

Also, I want to express deepest appreciation to the senior staffin the Division of Development and University Relations, BradChoate, Peter Weiler, Roger Williams, and Barbara Coyle; and keystaff in the Office of Development, Bob Groves, Dan Saftig, JimRhodes, and Leslie Saftig, who provided encouragement, construc-tive criticism, and experienced advice during the writing of thisbook.

Gratitude is expressed to H. Bryce Jordan, 14th president ofThe Pennsylvania State University, under whose leadership I be-gan this book and to Joab Thomas, 15th president of Penn State,under whose leadership I completed it. I am also grateful to themany volunteers of the university whose inspiration contributedto this project, particularly the chairman of our Board of Trustees,William A. Schreyer, and the chairman of The Penn State NationalDevelopment Council, Edward R. Hintz.

ix 1'O

x I The Capital Campaign in Higher Education

Finally, I wish to express gratitude to Roy B. Shilling Jr., presi-dent of Southwestern University in Georgetown, Texas, who hasbeen an inspiration to me throughout my professional career.

This book is dedicated to my wife, Jane Brockmann Gearhart,and our children, Katy and Brock.

i1

Foreword

Regardless of the label that may be applied to the function of gar-nering financial resources for institutions of higher learningfundraising, institutional advancement, or developmentthere is onething that is certain: philanthropic support is critically importantto any college or university that seeks to be one of the best of itstype within the United States. The proliferation of advancementstaff has been one of the most dramatic changes in higher educa-tion in the last 20 years. Virtually every college or universitypub-lic and independentin America is now involved in some aspectof fund raising. The acute competition for resources is forcing in-stitutions to place a major emphasis on development.

Currently, more than 300 colleges and universities are con-ducting major capital campaigns, and in the big picture more thanone-third of all institutions have mounted a campaign at some timein their recent history. Development personnel have become highlyskilled and sought after, as even a casual glance at the classifiedsection of The Chronicle of Higher Education will attest. Presidents,governing boards, regents, financial officers, and senior adminis-trators have come to recognize that running a capital campaignrequires considerable expertise and a total institutional commit-ment. These administrators realize that the entire ethos of a col-lege or university is involved in moving an institution forwardthrough a capital campaign, and they know that a successful cam-paign can fundamentally transform an institution. Entire campuses,colleges, and departments can be galvanized by major philan-thropic support. Research initiatives can be bolstered by the infu-sion of gift support, and renowned faculty who might otherwisebe lured away by competing institutions can be convinced to re-main with the promise of an endowed position that provides re-search dollars, clerical support, and extra stipends. Campaigndollars can endow more scholarships to help recruit the best andbrightest students. The capital campaign is crucial to any institu-tion that wants to be on, or remain at, the cutting edge of highereducation.

12xi

xii I The Capital Campaign in Higher Education

One of higher education's ironies is that there are few formalprograms available in which to learn how to prepare for or man-age a capital campaign. Although the average institution preparesstudents to become distinguished members of the professoriate, itoffers few opportunities in its curricula for those interested in rais-ingthrough capital campaignsthe requisite dollars for theinstitution's continued growth and enhancement. Only a handfulof colleges and universities, including Indiana University and ThePennsylvania State University, offer courses that specifically addressdevelopment. These programs are the exception. As one develop-ment director told me early in my career, "Development is notsomething that you can teach or learn, it is something that you justgo out and do!"

In this book, a distinguished university administrator has madean exemplary effort to fill that void. The Capital Campaign in HigherEducation serves as an excellent "how-to" guide for planning andimplementing capital campaigns in today's colleges and universi-ties. Other books have cast a large net and attempted to define acampaign for any philanthropic organization, be it a major publicresearch university or a small community drive. This book doesnot attempt such a feat, but instead is specific to fund-raising ef-forts in higher education. It imparts a general working knowledgeof the important attributes and characteristics of the capital cam-paign in colleges and universities and should be required readingfor all development officers and senior administrative personnel.

In short, this book will enable you to "go out and do it."

Dr. Roy B. Shilling Jr.PresidentSouthwestern UniversityGeorgetown, Texas

13

Preface

This book provides a practical summary of the major elements ofplanning and conducting capital campaigns for colleges and uni-versities. As tuition rises faster than the Consumer Price Index andlegislative appropriations continue to dwindle in state after state,both public and independent institutions are turning to philan-thropic support to maintain and strengthen their academic mis-sions. The only way to garner these critical private dollars on alarge scale is to establish an efficient and aggressive developmentprogram, staffed with dedicated, knowledgeable professionals. Itis for these professionalsboth veterans as well as beginnersthat this book is primarily intended. However, development pro-fessionals need to involve all of the administration in a far-reachingcampaignand, accordingly, administrators need to know theinstitutionwide aspects of a capital campaign. This book, then, alsoaddresses the broader aspects of development, and as such is alsofor presidents, governing boards, and business officers.

There can be little doubt that capital campaigns are increas-ingly prominent, and they are likely to gain even more visibility inthe future. In fact, they are even becoming prevalent on an inter-national basis. One needs only to cite the recent wave of capitalcampaigns in the United Kingdom and, in particular, the dramaticsuccess of the Campaign for Oxford.

Indeed, the capital campaign has become so entrenched atcolleges and universities that academic administrators, alumni as-sociation officers, faculty, and even volunteers and prospectivedonors are likely to be affected in one way or another at a partici-pating institution. It is for these groups also that this book hasbeen prepared.

The goal of this book is to present practical information in asimple, easy-to-absorb manner. The chapters form a blueprint ofthe organization, staffing, and implementation of major fund-rais-ing efforts in higher education. Chapter 1 defines the capital cam-paign and discusses its growth in recent years. It reviews thoseelements that must be in place at any institution even before seri-ous campaign planning begins.

xiii 14

xiv I The Capital Campaign in Higher Education

Chapter 2, "Planning for the Campaign," stresses the need tobring an historical perspective to the development program. Thechapter then moves into an analysis of the campaign counsel. Thecampaign case statement and its purposes are reviewed, and thefeasibility study is discussed.

Chapter 2 additionally covers the importance of the needs state-ment of the campaign. The author reviews various theories on thesetting of campaign goals, and discusses the negative public reac-tion mega-campaigns engender, as well as public reaction to pub-lic university campaigns and why public institutions need privategift support. Finally, the chapter closes with discussion of the selec-tion of a campaign theme and title.

Chapter 3, "Creating a Campaign Organization," begins withan analysis of the integration of institutional advancement and theproper organization of a development and university relationsprogram.

The chapter addresses the relationship of a capital campaignto ongoing fund-raising activities involving the annual fund, cor-porate and foundation relations, communications, and the volun-teer organization. The roles of the president of the institution, thechief institutional advancement officer, the alumni director, andthe university relations or public relations director are outlined inthis chapter as well.

Chapter 4 addresses the role of volunteers, and the externalorganization of the campaign. The recruitment of volunteers; therole of the board of governors; the role of the development coun-cil, foundation board, and business office; and the various cam-paign volunteer committees are scrutinized. The responsibilitiesof the campaign chairperson, the vice chairpersons, the campaigntreasurer, and the campaign liaison are likewise reviewed. The fac-ulty/staff campaign, the student campaign, and the local commu-nity campaign as components of the larger effort also are explained.The chapter concludes with a discussion of the alumni associationand its duties during the campaign.

Chapter 5 reviews the vitally important process of soliciting andasking for the gift. The author presents various theories about whypeople give or refuse to give to capital campaigns. A short discus-sion of physicians and attorneys as benefactors is included in thischapter. The issue of prospect management, including the evalua-tion and rating of prospects, is discussed in Chapter 5.

15

Preface I xv

A look at the process of asking for a gift will take up the bulk ofthis chapter, which concludes with a study of the common mis-takes made in major gift solicitations.

Chapter 6 describes campaign mechanics. This is a "nuts andbolts" chapter that reviews a number of aspects of the campaign,including the recommended percent of the goal to have in handprior to a public announcement, the cost of a capital campaign,the cost to raise a dollar, the gift range chart, the length of thecapital campaign, the frequency of capital campaigns, the cam-paign timetable, and the campaign pledge form. A brief discus-sion of campaign cash flow as related to bricks-and-mortar giftsalso is a part of chapter 6.

Chapter 7 covers the public relations aspects of the campaign,including precampaign publicity, editorial support, use of inter-nal and external university publications, an advertising plan, useof a speakers bureau, the lead campaign brochure, audio visuals,and donor-recognition events.

Chapter 8 examines campaign accounting and what should becounted in a capital campaign based on national guidelines pro-mulgated by the Council for Advancement and Support of Educa-tion (CASE).

Chapter 9 reviews the post-campaign plan and sets an agendafor future institutional fund raising.

ONE

The Capital Campaign:An Overview

/n 1991, aproximately $124 billion was given away in the UnitedStates,' which averages out to more than $100,000 for everyminute of every day. Philanthropy is big businessentire mar-

keting firms with huge, specialized staffs monitor the mood swingsof Americans in an attempt to secure financial support from largenumbers of people for worthy (and not so worthy) causes. These"giving specialists" have made a science of understanding whypeople are likely to be philanthropic toward one project and notso generous toward the next. This is an important question, as theexistence of entire institutions, including social and religious or-ganizations, depends solely on the support of private dollars andthe continued benevolence of the American people.

Evidence of philanthropy dates back as far as 4,000 B.C., but asJon Van Til and Associates point out, the systematic practice of"fund raising" is truly an American tradition.2

Nowhere have the philanthropic practices of the Americanpeople been more apparent than in higher education. Geiger states,"Private giving has greatly abetted the relative abundance of re-sources in the diverse institutional orientations that have allowedthe American system of higher education to become the most ex-tensive in the world." Even before this nation was founded, phi-lanthropy was evident in all sectors of colonial society. The IvyLeague institutions, for example, were built largely on the dreamsof wealthy philanthropists who desired to perpetuate their family

17

2 I The Capital Campaign in Higher Education

names by the socially responsible act of giving away their fortunes.Throughout the nineteenth century, great colleges and universi-ties continued to be established by men and women who gave un-selfishly of their resources.

The Capital Campaign at Colleges and Universities

A natural outgrowth of the philanthropic presence at collegesand universities is the capital campaign. Capital campaigns, as theyexist today, appear to be a 20th century phenomenon.4 The lastfew years have seen a virtual explosion of capital campaigns fromone campus to the next. Since the early 1980s, more than 100 majorAmerican research universities have launched capital campaigns,some with goals as high as $1.5 billion.5 Many more institutions,both public and independent, are poised to begin campaigns. In-deed, few are the colleges and universities that are not planning orengaged in sizable private fund-raising efforts. To ignore such ven-tures is to risk being left behind amid intensifying competition.

A common thread that runs through the psyche of the Ameri-can public is the need to be successful. Bigger, grander, broader,bolder, and better are all adjectives that describe traditional Ameri-can aspirations. The spirit of competition runs deep in every as-pect of our society. Little wonder, then, that the rush to announceso-called mega-campaigns has become an integral part of highereducation.

Capital campaigns are now being conducted by hundredsperhaps thousandsof charities for a diverse range of purposes.Of course, not all of these charitable organizations are academicinstitutions. In fact, most of the capital campaigns in this countryare conducted by nonprofit eleemosynary organizations, and col-leges and universities make up only a small fraction of their num-ber. Consider the capital campaigns of such groups as the BoysClub of America, Girl Scouts, Boy Scouts, fraternities, sororities,hospitals, historical societies, orchestras, synagogues, mosques, theAmerican Heart Association, Easter Seals, United Way, SpecialOlympics, symphonies, churches, temples, the American CancerSociety, and the Muscular Dystrophy Associationthe list is end-less. Suffice it to say that in 1994, the Internal Revenue Servicerecognized 1,024,648 tax-exempt organizationsa conservativenumber to be sure.''

/8

The Capital Campaign: An Overview I 3

In State College, Pennsylvania (home of The Pennsylvania StateUniversity's University Park campus), a small borough with a popu-lation of 38,000, 24 separate capital campaigns by local organiza-tions were underway in 1994.

Many more kinds of organizations are engaged in capital cam-paigning today than 10 years ago. Human service groups, publictelevision stations, YMCAs, symphony orchestras, independent sec-ondary schoolsand now even primary schoolsare all launchingcapital campaigns. Information about capital campaigns for nurs-ery schools has not been forthcoming, but some no doubt exist.

The 1980s were heady times for higher education institutions.Buoyed by an expanding economy, private giving to colleges anduniversities grew by 134 percent, from $3.8 billion in 1979-80 to$8.9 billion in 1988-89, according to the Council for FinancialAid to Education (CFAE).7

Eight independent research universities (Harvard, Princeton,Yale, Stanford, Columbia, Washington, and Northwestern univer-sities and Massachusetts Institute of Technology) saw their endow-ments soar through the billion dollar threshold. Four others(Stanford, New York, and Boston universities and the Universityof Pennsylvania) launched billion-dollar campaigns. In 1991, Co-lumbia University announced a goal of more than $1 billion. Yalelaunched a campaign with a goal of $1.5 billion, and in 1993Harvard embarked on the biggest campaign ever, with a statedgoal of $2.1 billion.

Public colleges and universities also jumped aggressively intothe fund-raising arena during the 1980s. Although lacking a phil-anthropic tradition as strong as their independent counterparts,five public research universities (the Universities of California atBerkeley, Minnesota, and California at Los Angeles and Ohio Stateand Pennsylvania State universities) completed campaigns thateach raised at least $300 million. In 1992, the University of Michi-gan launched a $1 billion campaign, the first ever by a public uni-versity, although $150 million of the goal consists of willexpectancies.

The Capital CampaignA DefinitionWhat is meant by "capital campaign"? The term is probably

one of the most confusing in the higher education fund-raising

9


vocabulary and conjures up all kinds of misconceptions. Capitalhas been defined by economists as "a produced factor of produc-tion."8 Today's capital campaign, however, has in a sense become ageneric term that describes an intense effort to raise funds fromthe private sector through multiyear pledge commitments withina specified period of time. The capital campaign should really berenamed "a major gifts campaign." No longer are gifts sought onlyfor bricks-and-mortar programs. Now the typical capital campaignat a college or university includes all philanthropyannual gifts,bricks-and-mortar gifts, endowment gifts, program support gifts,and research funds. Rare is the college or university capital cam-paign that does not include every gift that is received during thelife of that campaign.

A capital campaign essentially positions an institution to pub-licly proclaim its critical need for private gift support that will al-low the continuation of current academic programs as well as thelaunching of important new initiatives. In a capital campaign thecollege or university declares that it is serious about philanthropyand that it is bringing together faculty, students, administrators,the governing board, alumni, legislators, friends, and the publicat large in an all-out effort to garner private financial support.

Most fund-raising professionals accept this broad definition.Kent E. Dove, for example, describes the capital campaign as "anorganized, intensive, fund-raising effort on the part of the thirdsector institution or organization to secure extraordinary gifts andpledges for a specific purpose or purposes (such as building, con-struction, renovation, equipment, acquisition, or endowmentfunds) during a specified period of time." 9

There are a few hold-outs to be sure. Russell Kohr, for instance,says that using the above description to define a capital campaignis "something of a misnomer." A traditionalist, he believes that astrict definition requires that capital projects are those for addi-tions to plants or endowments."' Nevertheless, capital campaignhas become the most widely accepted term for systematic, major-gift, time-specific fund raising. This term has weathered the test oftime and will continue to be used to describe any major effort witha prescribed time frame seeking financial support from the pri-vate sector. Annual giving, planned giving, bricks-and-mortar gifts,endowment gifts, or gifts-in-kindmost institutions wrap all of theseunder the rubric of capital campaigns.

20


The capital campaign also is a declaration by the institutionthat garnering private financial support will be a critical priority,not only in the short term, but in the long term as well.

Institutional Readiness for a Capital Campaign

Priorities at institutions of higher learning swing back and forthlike a pendulum. One administration might emphasize studentaffairs, campus beautification, and faculty initiatives while the nextwill concentrate on research, the improvement of teaching, andcurricular development. It is not possible for a president or chan-cellor to be all things to all constituencies. He or she must concen-trate on selective program thrusts to make substantial progress.Yet there can be no question that securing financial resources fromthe private sector must be one of the highest priorities of any ad-ministration, regardless of other thrusts. One need only look at afew institutions that have recently moved into the forefront ofAmerican higher education, in large measure because of the phil-anthropic support they have secured.

A few years ago, Southwestern University, in Georgetown, Texas,was a small-town, small-time college fairly well regarded in Texas,but not even well known outside of a three- or four-state area. In amatter of a few years, a new president transformed it into one ofAmerica's outstanding independent liberal arts colleges througha combination of inspired leadership and massive private finan-cial support. Today, Southwestern University has one of the larg-est endowments per student of any college or university in thenation."

The transformation that has taken place at Emory Universityafter the $105 million gift from Robert W. Woodruff in 1979 isequally impressive. The Woodruff gift, combined with several oth-ers, has placed Emory in a competitive position with many IvyLeague institutions. Emory regularly raids some of the top inde-pendent universities in the country for renowned faculty.

The case of Rice University in Houston, Texas, is also notewor-thy. Generous Texas Foundation resources, coupled with philan-thropy from alumni and friends, have transformed Rice into oneof the best institutionspublic or independentin the UnitedStates. A little-known institution 10 years ago, Rice is now attract-ing some of the best and brightest students in America. It has been

9i


able to secure a nationally recognized faculty and has assembledsome of the keenest thinkers from throughout the world. '2

All of these institutions, as diverse as they may be, share theblessings of major philanthropy. Each has had whole departmentstransformed through corporate, foundation, individual, andalumni support. Each has moved forward dramatically because ofbold leadership, but alsomore importantlybecause of privatephilanthropy. They have clearly demonstrated that private givingcan and will substantially change the course of an institution forthe better.

However, many institutions are not positioned to increase pri-vate support by launching a capital campaign.

When considering a major capital campaign, the followingquestions must be addressed:

1. Is the Chief Executive Officer of the Institution Committed toa Capital Campaign?

Without a doubt, the person who is crucial to the successof a capital campaign is the president of the institution. With-out his or her total backing, success will be a struggle. As G.T.Smith states, "Success in institutional advancement dependsultimately on the chief executive and that officer's willingnessand capacity for leadership in the advancement effort." 13 Thiscommitment cannot be lip service. Not only must the presi-dent wholeheartedly accept and welcome a major gifts cam-paign, but he or she must be prepared to he the principalspokesperson. The president must be willing to speak to fac-ulty, deans, students, alumniall of the constituents of the in-stitutionand indicate that the campaign is an absolute toppriority. The president must accept the fact that he or she mustspend a predominant amount of time over the coming yearsto see the campaign through to fruition.

In addition, the president must appreciate what it takes torun a capital campaign. New resources, new staff, and an over-all commitment by the entire college or university will be re-quired for success. The president must be at the forefront,pushing, prodding, and diligent in his or her quest for finan-cial support. Without the president's leadership, the capitalcampaign will wither. It will never become an institutional pri-ority, and will ultimately die from lack of interest.

22


2. Is There Leadership from the Governing Body?The governing board, board of regents, or other govern-

ing body of the institution must acknowledge that the capitalcampaign will be the most important event at the institutionfor the next several years. Nothing else can take precedence.The governing board must unmistakably signal that the cam-paign has top institutional priority and must back the presi-dent fully in pursuing the philanthropic goal.'4

Members of the governing board also must commit theirown resources, time, and talent to the campaign. Many devel-opment officers at public universities might dispute this point,arguing that many board members are political appointees whosecured their seats as part of a political payback, and who sim-ply know the governor or are a member of the party that hap-pens to be in power in the statehouse.

Admittedly, many public university governing board mem-berspolitical appointees includeddo not have the finan-cial ability to make major commitments to a capital campaign.Yet all of them, regardless of financial resources, do have theability to participate at some level. Their participation will becrucial to the success of the campaign. As Kent E. Dove states:

Without the board's visible and unanimous commitment, itwill be difficult if not impossible to motivate others to par-ticipate. And it is the governing board members, indepen-dent of others, who must eventually commit themselves toseeing that a stated goal is reached because they themselvesare unanimously determined that it will be.15

Early on in a campaign, members of the governing boardshould be asked to verify the effort through a board resolu-tion. This resolution should give the president the authority tocarry out the program and should back the campaign com-pletely. An example of this issue was never more evident than a1992 report by The Chronicle of Higher Education stating that thepresident of Rice University had resigned his position becauseof lack of support by the governing board for a new capitalcampaign. This was a bit ironic, given Rice's outstanding successin transforming the institution through private philanthropy.'

23


3. Is There a Conunitted Professional Staff in Place?An institution is far from ready for a capital campaign if it

does not have a dedicated professional staff that understandsthe importance of development in higher education. This doesnot necessarily mean that the chief development officer mustbe a seasoned veteran of previous campaigns. Many campaignsare run by people who are in their first such effort and who arerelative novices at capital campaigning.

On the other hand, the development staff should most defi-nitely have some experience in higher education fund raisingand should be willing to tap into other resourcesa fund-rais-ing consulting firm, for exampleto gain the necessary lead-ership expertise.

No matter how many staff members the campaign requires,the principal players must be willing to see the campaignthrough to completion. They should sign on for the life of thecampaign. Many colleges and universities lose the chief devel-opment officer two or three years into a five- or six-year capitalcampaign. Often, the chief development officer is lured awayby another institution with the promise of increased salary andperquisites. Wise institutions ensure staff stability through acontractual arrangement that gives the senior staff member astable environment.

Equally important are the employees who report to thechief development officer. Continuity in the campaign officeis vital, and those signing on to a capital campaign should giveassurances to their supervisor that they will see the campaignthrough to its conclusion. Changes in key staff positions canhave a debilitating impact on the campaign, and staff stabilityshot) .1 be an important priority when organizing and imple-menting a campaign.

4. Are Senior Officers Supportive?It is not enough that the president is totally committed to a

capital campaign, even though that is the most important ele-ment in judging the internal readiness of an institution to startcampaign planning. Other senior officers must be equally ascommitted and supportive before planning can begin. The chieffinancial officer is one of the key senior officers. In most institu-

24


tions, he or she controls vast resources, staff, personnel, andinstitutional operations. A chief financial officer who does notbelieve in the worth of private giving, much less a capital cam-paign, can make the life of the chief development officer mis-erable, and derail the campaign. According to Carroll Rickert,". . . the efforts of both financial and development officers,and their ability to serve the institution, are enhanced by theirworking together.""

Activities such as timely acknowledgment of gifts, valuationof securities, determining principal amounts required for en-dowments, personnel policies for hiring appropriate develop-ment staff, and advance funds for preliminary campaigningcan all be under the control of the chief financial officer, andare crucial considerations on any campus. Therefore, this per-son must be a part of the planning and implementation of thecapital campaign from its very beginning. He or she must bemade an integral part of every aspect of the campaign, and animportant partnership between the chief development officerand the chief financial officer must be forged.

This is sometimes difficult to accomplish. After all, the chieffinancial officer has many responsibilities, and the implemen-tation of a capital campaign is, in some ways, outside of his orher normal operations. Drawing the chief financial officer intodiscussions about the campaign can require effort. However,that officer can open doors that no one elseincluding thepresidentcan open as quickly and as efficiently, and a goodworking relationship between the business office and the cam-paign office will make life much easier in the initial stages ofthe campaign. The fiscal officer must be one of the "owners"of the campaign, and this can only be accomplished by involv-ing that person from the very outset of the effort. A prudentfinancial officer will realize the importance of the campaignand will seek to be involved at the earliest opportunity.

Another important party is the chief academic officer. Becausethe development function at a college or university is a rela-tively new phenomenon in higher education, many faculty andacademicians will be skeptical about any program that is forth-coming from the development office. A major multipurposecampaign that proposes to include faculty, staff, students, and

251


alumni will be given very close scrutiny by the academic lead-ership. William Pickett writes:

In academic organizations, the faculty are the ultimate deci-sion makers. In institutions where the most important activ-ity is teachers teaching and students learning, the decisionsof individual faculty members have the most powerful im-pact on the quality and the success of that endeavor. Facultymembers must be at the center of the long-range planningprocess.'

Consequently, the early involvement of the chief academicofficer in planning the campaign will help to avoid any mis-conceptions about the purposes and thrust of the effort. A goodchief academic officer can be invaluable in smoothing any aca-demic feathers that might be ruffled when the campaign isvigorously underway. In addition, this officer must take thelead along with the president to determine those critical pri-orities that will be targeted to receive financial support.

As will be seen later, the formation of a "needs statement"should be the sole prerogative of the academic leadership ofthe college or university, and the academic officer must be thecatalyst that ultimately brings together divergent interests intoa solid, cohesive, systematic plan that includes all of the projectsthat the campaign will seek to fund. Do not allow the chiefacademic officer to be on the outside of the campaign plan-ning. Make the officer an integral force from the beginning.This is not always easy as there tends to be a natural tug of warbetween external relations personnel and academic leadership.Do not allow friction to develop; keep lines of communicationopen throughout the life of a campaign.

5. Is There a Supportive Constituency?An institution's primary external volunteer constituents mustbe generally supportive of the need to begin the process ofplanning the capital campaign. Alumni volunteers who sup-port the need for a strong development program and are will-ing to give time, talent, and resources are invaluable to theprocess. The issue here is the direct support and personal in-volvement of a group of volunteer leaders who spark interest

26


and support from other alumni leaders. The feasibility of ma-jor gifts from constituents is addressed in chapter 2.

The main point concerning the parties involved is to bringthem in as early as possible in the campaign. Make them feel in-cluded, and the campaign has a much better chance for success.

Keep in mind that a capital campaign is not the sole provinceof the development staff. The development staff, even though in-timately involved in every detail of the campaign, should be con-sidered facilitators and implementors. Without the board ofgovernors, the president, and the chief officers of the institutionbehind the campaign, it will not be a successful effort. It is not thedevelopment office's campaign. It is the college or university's cam-paign, and the backing of the entire institution must be evidentfrom the beginning of the effort.

If the president of the institution is solidly behind the conceptof a campaignnot just in name, but in vigorously promoting andsupporting the conceptthen the institution is one essential stepcloser to beginning planning. If the governing board has shown sup-port and enthusiasm for the concept, then the institution is a secondstep closer to planning. If the institution has a cohesive developmentoffice with vigorous and visible leadership that plans to remain apart of the institution for the foreseeable future, then this fortu-nate institution is three steps closer to planning for a campaign. Ifthe senior officers support the concept fully and are willing to de-vote their time and the institution's resources to planning and pro-moting the campaign, and if a small but vigorous alumni volunteergroup will take a leadership role, then it would appear the institu-tion is now ready to begin the first phase of planning toward acapital campaign. Note the emphasis is still on planning. By nomeans should the institution precipitously launch an effort. Allthat has been determined is that the internal audiences that will beabsolutely critical to the success of the campaign are in favor ofbeginning the planning stages. Whether the institution is ultimatelyin a position to launch the effort will require further study. How-ever, discussions, internally and on a limited basis, can now begin.

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Notes

1. Ann E. Kaplan, ed., Giving USA: The Annual Report on Phi lan-thropy for the Year 1991. (Joanne Hayes Publisher), p. 10.

2. Jon Van Til and Associates, Critical Issues in American Philan-thropy: Strengthening Theory and Practice. (San Francisco: Jossey-Bass Inc., 1990), pp. 4, 13.

3. Roger Geiger, Foreword, in Jesse Brundage Sears, Philanthropyin the History of American Higher Education. (New Brunswick, NJ:Transaction Publishers, 1990), p. xiv.

4. Kent E. Dove, Conducting a Successful Capital Campaign: A Com-prehensive Guide for Nonprofit Organizations. (San Francisco:Jossey-Bass Inc., 1988), p. 3.

5. Brakeley, John Price Jones, Inc., Capital Campaign Report. (Stam-ford, CT: Brakeley, John Price Jones, Inc., Spring 1992).

6. Virginia Ann Hodgkinson, Murray S. Weitzman, ChristopherM. Toppe, Stephen M. Noga, Internal Revenue Service An-nual Report, Various Editions in Nonprofit Almanac 1992-1993(San Francisco: Jossey Bass, Inc.).

7. Council for Financial Aid to Education, Voluntary Support ofEducation 1979-80 and 1988-89. (New York: Council for Fi-nancial Aid to Education, 1981 and 1990).

8. Paul A. Samuelson, W. D. Norhaus, Economics. (New York:McGraw-Hill, 1989), p. 50.

9. Dove, Conducting a Successful Capital Campaign: A ComprehensiveGuide for Nonprofit Organizations, p. 1.

10. Russell V. Kohr, "Capital Campaigns," in A. Westley Rowland,ed., Handbook of Institutional Advancement: A Practical Guide toCollege and University Relations, Fund Raising, Alumni Relations,Government Relations, Publications, and Executive Management forContinued Advancement (San Francisco: Jossey-Bass Inc., 1977),p. 237.

11. The Chronicle of Higher Education, The Chronicle of HigherEducation Almanac vol. xxxix no. 1: (August 26, 1992): 35.

12. James Cass, M. Birnbaum, Comparative Guide to American Col-leges: For Students, Parents, and Counselors 15th ed. (New York:Harper Perennial, 1991), pp. 493-494.

13. G. T. Smith, "The Chief Executive and Advancement," in A.Westley Rowland, ed., Handbook of Institutional Advancement: AModern Guide to Executive Management, Institutional Relations,

28


Fund-Raising, Alumni Administration, Government Relations, Pub-lications, Periodicals and Enrollment Management (San Francisco:

Jossey-Bass Inc., 1986), p. 697.14. Robert L. Krit, The Fund-Raising Handbook. (The United States

of America: Scott Foresman Professional Books, 1991), p. 54.15. Dove, Conducting a Successful Capital Campaign: A Comprehensive

Guide for Nonprofit Organizations, p. 32.16. Michael Cinell, "Duncan Discusses Rice After Rupp," in Rice

News Vol 2, No.11: (October 29, 1992): 1, 4.17. Carroll Rickert, "The Business Officer as an Ally and Associ-

ate," in Francis Pray, Handbook for Educational Fund Raising: AGuide to Successful Principles and Practices for Colleges, Universitiesand Schools 2nd ed. (San Francisco: Jossey-Bass Inc., 1981),p. 193.

18. William Pickett, "The Long-Range Planning Process," in H.Quigg, ed., The Successful Capital Campaign: From Planning toVictory Celebration, (Washington, DC: Council for the Advance-ment and Support of Education, 1986), pp. 8, 9.

TWO

Planning forthe Campaign

Chapter 1 set the stage for a college or university to begincontemplating a major capital campaign. After convincinginternal officers that a campaign is in the best interests of

the institution and including key volunteers in the discussion pro-cess, it is time to begin vigorous planning toward a capital campaign.

At many institutions, planning for a capital campaign neverceases. This is particularly true at those institutions that have be-come experienced fund raisers over the last 25 years. Before a cam-paign has ceased operation and the final date of campaign countinghas even arrived, development officials are already planning forthe next (inevitable) major fund-raising effort. Robert L. Krit sub-mits that to properly prepare for a capital campaign, an institutionshould begin planning at least one year before the start of the cam-paign) This planning is oftentimes conducted quietly among col-lege and university officials, but the thought processes centeredaround timing, major gift prospects, and institutional readinessare already in place. Of all the important elements in a capitalcampaign, and there are many, planning must head the list.

Creating a Historical PerspectiveBeginning thePlanning Process

Development staff should create a written document that out-lines the program in detail from a historical perspective. An insti-

3015


tution cannot possibly look to the future without knowing its past.Knowledge of an institution's ability to raise major gifts is essen-tial. Is there a history of strong major gift fund raising at the insti-tution? Has it been successful in garnering financial support forsmaller capital projects? Has the annual fund program producedsteady support for academic efforts? Answers to these questionswill help establish realistic campaign boundaries.

Development officers should consider reviewing total gift sup-port for the past 10 years, examining their institution's ability toprogress incrementally from year to year in its development pro-gram. It would be unwise to push for a capital campaign with nohistorical base of support from which to draw. History is repletewith colleges and universities and other philanthropic organiza-tions and agencies that "intuitively" believe they can launch a ma-jor capital campaign without appreciating the importance of anongoing effort that provides a base of support and a pool of volun-teers. As Kent E. Dove states in his book, Conducting a SuccessfulCapital Campaign,

Realism is necessary in determining capital campaign goals or,indeed, whether an institution is even ready to enter into a capi-tal campaign . . . Past performance as well as current trends ingiving must be analyzed. An institution annually raising $500,000is not likely to be prepared to mount a successful campaign for$30 million.'

A historical perspective can be easily accomplished by pro-ducing a three- to five-page document that will establish historicalparameters.

Campaign Counsel

Consider employing campaign counsel early in the planningstages, rather than asking counsel to join the team after key deci-sions have been made. Campaign counsel may find it difficult tooperate under preexisting campaign guidelines, particularly if thereis disagreement with major organizational issues.

The decision to employ campaign counsel is always a difficultone. Many development officers believe hiring campaign counselis a "necessary evil" and that counsel can provide a different di-

31

Planning for the Campaign I 17

mension and perspective when working to establish policies andprocedures early in campaign planning)

The employment of campaign counsel is not an inexpensiveproposition. Currently, most of the larger, more established firmscharge between $1,000 and $2,500 a day plus expenses, althoughsenior officers at a few firms charge more. Fees are generally ne-gotiable and depend greatly on the level of expertise and experi-ence of the counsel assigned to an institution.

How does one determine if.counsel is necessary or desirable?A checklist is provided in figure 2.1.

Figure 2.1 Determining the Necessity of Counsel

An institution may benefit from employing campaign counsel if:

1. Development staff has limited experience in capital campaign-ing. Counsel can help to fill that void.

2. The institution has limited resources and cannot hire, as chiefdevelopment officer, a seasoned development professional withsolid campaign experience. Counsel can "bring to the table" thenecessary knowledge and ability to move a campaign forward.

3. The president and senior officers of the institution are supportingthe capital campaign but not vigorously. Campaign counsel of-ten can help shape the president's opinion about the need foradditional resources for the campaign and can provide "politi-cal muscle" to convince college and university leadership of theneed for new resources, additional staff, and commitment of presi-dential time.

4. Senior development staff members need help verifying their man-agement and organizational decisions. The employment of cam-paign counsel brings a new and different perspective that canaugment the opinions of internal development staff.

5. Development staff could benefit from knowledge of "cutting-edge" development initiatives at other institutions. Although it isinappropriate for counsel to share confidential information aboutother institutions' capital campaigns, general knowledge aboutnew initiatives can be most helpful to campaign planning.

6. Assistance is needed in motivating volunteers and giving them asense of professionalism. The "comfort level" of volunteers canincrease dramatically if they have faith in counsel and believethe campaign is being organized in the best professional manner.

7. The institution could benefit from project-specific expertise thatcounsel can provide for a variety of campaign efforts. Often

32


Figure. 2.1 (Continued)

institutions will employ campaign counsel for specific projectssuch as conducting a feasibility study, publishing the lead bro-chure, producing a video for use by staff and volunteers, or pro-viding technical planned giving and tax advice for complex majorgifts. Having counsel handle these tasks can save valuable timefor development officers who are concentrating on the cultiva-tion and solicitation of major gift prospects.

8. A sounding board is needed for professional staff who may notcommunicate their needs and ideas to senior development offi-cials or senior officers of the institution. Counsel, when appro-priate, can be "brokers of information" and assist in solvingproblems internally among staff members with competing pri-orities.

9. The most senior development officer of the institution needs asounding board for confidential campaign problems, particularlyin the area of personnel decisions. Campaign counsel can serveas a confidant who is connected to the campaign and is in theinner circle of campaign planning, but is not a direct member ofthe senior officer's staff.

Selecting the best firm can be a difficult and time-consumingprocess. However, development staff and senior administrators mustdevote adequate time and resources to it. Choosing counsel withthe "proper fit" is important for early success in the campaign.4

When selecting campaign counsel, consider the guidelinespresented in figure 2.2.

When considering counsel, keep in mind that it is not alwaysnecessary to choose a large, well-established firm. With increasingfrequency, institutions are choosing chief development officers atother institutions to serve as campaign counsel.

As H. Russell Bintzer pointed out more than 10 years ago,

Almost all [independent counselors] have one characteristic incommon: a background of successful service in one or anothereducational or health-related institution. Most of these 'indepen-dents' serve a particular level of institution or a particular part ofthe country. They rely heavily on word-of-mouth advertising toacquire new clients, and almost all work for lower fees and coststhan do the members of the American Association of Fund Rais-ing Counsel.'

33


Figure 2.2 Guidelines for Sdecting Campaign Counsel

1. Conducting personal interviews with several firms is a prerequi-site when choosing campaign counsel. Both the chief executiveofficer and the specific individual who will be assigned to thecampaign should come to campus for an extensive interviewwith appropriate administrators. Prospective campaign counseland the chief executive officer of the firm should plan to meetwith the president of the institution, senior development officer,senior officers of the institution, and major volunteer leadership.At some institutions it is appropriate for campaign counsel tohave some exposure to members of the governing board. Mostgood firms will request exposure to these groups, but campaignstaff should seek wide concurrence among internal and externalgroups before employing campaign counsel.

2. Interview a minimum of three firms before making a decision oncampaign counsel. Choose firms with different staff sizes to gainthe broadest perspective possible.

3. Confidential discussions with other senior development person-nel at other institutions that have employed counsel is importantprior to the firm's visit to campus. Generally, development staffmembers are eager to critique campaign counsel, and it is a goodway to gain a perspective on a firm prior to agreeing to a visit.

4. Tell the firm that it must make a case for why it should be cho-sen. The firm must explain what they will do to help ensure thesuccess of the campaign.

5. Ask the firm to list successful campaigns for which it has pro-vided counsel, and to include specific names of developmentofficers with whom members have worked. Contact the refer-ences they provide, but also interview others who were not se-lected.

6. After the delegates have visited the institution, ask the firm toprovide a brief written document containing observations aboutthe upcoming campaign. The firms that are eager for the busi-ness will follow up quickly and efficiently, and the documentwill also provide an opportunity to review the firm's ability tolearn quickly after observing the key players at the institution.

7. Check the background and require the vita of the individual whowill be assigned to the institution, and investigate that vita care-fully to verify pertinent information. Interview individuals whoknow the person assigned to the institution to be certain that hisor her experience is adequate to provide the assistance and di-rection that is expected during the campaign.

34


Many of these officers, generally at the vice president level, areallowed by their respective presidents to serve as campaign coun-sel on a selective and limited basis. Most will have solid campaigntrack records with years of experience in development programs.Often these individuals can provide one to three days a month ofcampaign consultation and bring a practical perspective to theposition of campaign counsel. These individuals have enjoyed suc-cess in their professional positions and are knowledgeable of ev-ery aspect of campaign organization. Many times their fees aremuch less than the fees of major firms as overhead costs can bekept to a minimum.

An important question to be decided prior to interviewing afirm is the projected length of service, as well as the number ofdays the firm will devote to the campaign.Here are some guidelines:

1. Larger campaign counsel firms will argue for the placementof a full-time senior member of the firm on campus to provideday-to-day advice and assistance to campaign staff. Be wary ofcommitting to full-time counsel. Not only can this be extraor-dinarily expensive (more than $200,000 per year in some cases),but it may mean delegating management issues to counsel thatshould be reserved for permanent senior development per-sonnel. It is difficult for full-time counsel to do anything lessthan guide, direct, and manage the total capital campaign foran institution, and senior development staff should be preparedto abdicate responsibility in some areas to campaign counsel ifcounsel has been established on-site in a full-time capacity.Employ full-time counsel only in extraordinary cases where verylittle or no campaign experience exists among developmentstaff. An institution would be better served by hiring a personat the vice president level with thorough campaign experience.

2. Generally, spending two to three days per month with cam-paign counsel is sufficient. These sessions should be highlystructured, with definitive agendas distributed in advance ofthe counsel's visit. Verifiable objectives should be determinedin advance so that counsel is aware of what needs to be accom-plished during that visit. Longer terms of one or two weeksmight be necessary and desirable at the onset of the campaigncycle, but senior development staff will find it difficult to ap-

35


propriate adequate time for these longer sessions, as they areinvolved in a plethora of other duties and responsibilities.

3. In many cases, project-specific workdrafting documents, forexamplecan be carried out at the counsel's office rather thanat the institution. A contractual arrangement should allow forthis to save travel expenses.

In working with campaign counsel, there are several importantgeneral considerations:

1. Counsel should be required to execute a contract with theemploying institution. A firm with a good track record will in-sist on such a document, and the institution, likewise, shouldinsist on formalizing the relationship through a contractualarrangement. The contract should establish the terms of therelationship and the number of days per month that the firmwill expend for the institution. Billing procedures, expectationof payment, and ability to cancel the contract should be spelledout for both parties.

Be sure to provide a clause that requires the firm to seekprior approval of any secondary relationships with institutionswithin the same geographic region of the college or university.It behooves campaign counsel to contract with multiple insti-tutions in the same geographic region, but an institution shouldprohibit such conduct if it poses a definite conflict of interest.As an example, it would not appear to be appropriate for cam-paign counsel to serve two comparable institutions of highereducation in the same city or town. Likewise, counsel shouldnot provide services to institutions in the same locale that arein definite competition for funds, students, and faculty. Mostcampaign counsel contracts do not address this issue. An insti-tution should carefully discuss this potential conflict of inter-est and include appropriate language in the agreement.

2. Some firms will employ the chief development officer of theinstitution where they are providing counsel as counsel to otherinstitutions. This is particularly prevalent among major researchuniversities, and it is a practice that should be reviewed veryclosely. Not only is it a potential conflict of interest, but it smacksof kickbacks and collusion, aspersions that can damage thereputation of the professional as well as the firm. An institution's

3$


president should be fully informed and cognizant of the estab-lishment of any relationship of this type.

3. Often campaign counsel will want to establish a close workingrelationship with an institution's chief executive officer. Itshould be made clear from the outset that campaign counselworks for the chief development officer, not the chief execu-tive officer. An institution should have faith in its developmentofficer as the primary contact with campaign counsel. If a presi-dent has lost confidence in his or her chief development of-ficer and brings in campaign counsel to help manage this lossof confidence, then development staff should be fully informedof this relationship.

A few firms have been known to create a conflict betweenthe chief executive officer and the chief development officer,resulting in loss of faith on both sides. Campaign counsel shouldbe providing the fund-raising staff with ongoing advice andexpertise, not the president of the institution. If a presidentseeks his or her own campaign counsel, then it is very likelythat the president has lost faith in the institution's entire de-velopment program.

4. Campaign counsel may attempt to manage and direct staff evenif counsel visits the institution only two or three days a month.There is a natural tendency for the counsel to want to providehands-on management of the day-to-day operations, but thisshould be resisted. Campaign counsel should be viewed as justthatcounsel. Orders and direction must be reserved for se-nior development professionals at the institution, and theycannot abdicate their responsibility.

On the plus side, campaign counsel can provide an extraordi-nary level of expertise. However, the campaign should not beturned over for the exclusive management of counsel, and coun-sel activities should be monitored on a regular basis. Smaller col-leges and universities with less financial resources will find it difficultto employ counsel on a continuous basis. The benefits of counselexpertise, however, may far outweigh the expense involved.

37


The Campaign Case Statement

Creation of the case statement early on in campaign planningis important. The case statement is an internal document outlin-ing the history of the institution, its mission, and its long- and short-range academic plans as recommended by the president andacademic leadership. The case statement presents a basic ratio-nale for the campaign and details the reasons why an institutionshould move forward with the effort.6

There is no particular length requirement for the case state-ment, and at some institutions a document of four or five pageswill suffice. The case statement is primarily an internal document,not necessarily used for a wide audience beyond major volunteers.It is addressed to governing boards, faculty, deans, and key alumni,and describes the thinking of the institution with regard to its mis-sion and the resources required to reach campaign goals.' Sepa-rate proposals and brochures for individual projects can be derivedfrom the case statement, which also usually forms the core of thecentral campaign brochure.

Before the document will be used to recruit volunteer leader-ship, it is important to have it finalized. Figure 2.3 presents theelements of the campaign case statement.

It is not necessary to describe every element of the campaign,as that is the purpose of the institution's needs statement (discussedlater). Instead, the case statement outlines these needs in generalterms.

The campaign case statement can range from a simple typeddocument to an elegant, full-color booklet. Whatever form is cho-sen, it is an important document that should be created early incampaign planning.

The Feasibility Study

The feasibility study is a systematic process undertaken to de-termine the readiness of an institution to launch a capital cam-paign. It uses face-to-face interviews with the institution's mostimportant benefactors. It also includes a questionnaire that at-tempts to determine if an individual prospect is ready and willingto be solicited for a major commitment to the institution. As Allenwrites, "The feasibility study is a market survey that tells you how

38


Figure 2.3 The Elements of a Case Statement

A casestatement is comprised of the following elements:

1. A statement of the academic goals and mission of the institution.2. A statement linking the goals and mission with the need to pro-

vide resources that will enable goals and mission to be achieved.3. A statement describing the major areas that have been identified

as critically important priorities for funding. In other words, whatare the general areas for which the campaign will seek funds?These areas usually include faculty resources, such as endowedchairs, endowed professorships, faculty fellowships, teachingresearch awards, and other endowment needs; student aid re-sources, including graduate fellowships and undergraduate schol-arships; program resources for instruction, research, or publicservice; library resources for the augmentation of collections andthe acquisition of rare and unique books and journals; capitalresources for the construction of new facilities as well as theexpansion and modernization of existing facilities; and finally,annual support enhancement, which includes funds for normalgrowth of the annual fund during the life of the campaign.

close your key volunteers and prospects are to full commitment.Unless they are fully informed, fully involved, and fully commit-ted, they will not make their best effort for the upcoming capitalcampaign. "8

Once considered an essential element of a capital campaign,the feasibility study is increasingly falling into disuse. This is unfor-tunate because when conducted properly, it can be the single mostimportant element in the decision to launch a capital campaign. 9

Feasibility studies are generally conducted by outside counsel.Prospective donors should be made to feel comfortable in sharingconfidential information, and prospects are not always willing todo this with development staff. Outside counsel can more con-vincingly assure prospects that certain sensitive information willremain confidential.

A feasibility study begins with a carefully crafted questionnaire,a sample of which is contained in appendix A and is adapted withthe permission of the Grenzebach Glier consulting firm of Chi-cago. The questionnaire is designed to determine the interest levelof a particular prospect in the campaign. The interviewer poses a

33


series of questions, concluding by asking the prospect if he or shewould be willing to entertain a commitment to the capital cam-paign should the institution decide to move forward with the ef-fort. The questionnaire also includes questions about the level ofthat commitment. The prospect is assured that statements madeduring the interview will be kept strictly confidential and that theanswers to the various questions will not be turned over to theuniversity. Prospective donors can then feel secure about discuss-ing, frankly and honestly, their interest in and ability to contributeto a campaign.

An institution should take care in selecting those individualsto be interviewed. They should be the highest-level prospects avail-

able. At least 50 to 75 prospects should be interviewed so that abroad range of information can be obtained. The interviewer thencompiles the survey and interview results and presents a detaileddocument to the institution that generally includes a recommen-dation as to whether or not the institution should move forwardwith a capital campaign, based on the anticipated level of majorgift support. The interviewer builds his or her recommendationswholly on the interviews.

Often the feasibility study will not necessarily recommend acampaign but will lay out a set of objectives that should be ad-dressed before a campaign is feasible.

There are other kinds of feasibility studies in addition to thestandard type described above. These are described below.

Public Feasibility Study

Some institutions have begun using large group meetings wherepotential benefactors, volunteers, and interested alumni and friendsare questioned in a group setting about their interest in and sup-port for a major campaign. Although this method is highly unsci-entific, it can yield valuable information about institutionalreadiness and potential for campaign support. It is not recom-mended as a reliable process to determine the goal of a campaign,however.

Telephone Feasibility Study

Some institutions have begun using the telephone to conductthe feasibility study and question a much broader audience. The

40


advantages to this method are that a large sampling of alumni,friends, and benefactors can be contacted, and much more datacan be accumulated and then processed by the interviewer. How-ever, the reliability of the answers to the questions may be suspectgiven the informality of this medium, calling into question theoverall reliability of the study. For smaller projects that don't re-quire a multitude of major gifts, this form might be useful. Face-to-face interviews are still best, particularly when dealing with majorgift prospects and current benefactors.

Mail Feasibility Study

Some institutions have mailed questionnaires to alumni regard-ing their interest in a capital campaign. This can, in many instances,be the most reliable way to accumulate data and does offer thebenefit of a much larger sampling than other forms of feasibilitystudies. However, the likelihood of major gift benefactors com-pleting voluminous forms about fund raising is practically nil. Thisform of feasibility study is not recommended for a major capitalcampaign but could potentially be used for a smaller, more fo-cused effort.

Volunteer Feasibility Study

The use of volunteers to conduct the feasibility study is an-other method that might be considered. In this method, volun-teers are assigned to question other volunteers about their interestin a proposed capital campaign and to determine the level of sup-port that might be forthcoming from the volunteer. It is a peer-to-peer study designed to promote support among an institution'sconstituencies. This method should not be used for goal setting.

Finally, it is important to state again that no institution shouldmove forward vigorously on a capital campaign unless a feasibilitystudy has been conducted and a final report delivered. There sim-ply is no other mechanism to ensure that major gift support will beforthcoming in a campaign. Without the feasibility study, institu-tions are likely to stumble along the way, after it is too late to changecourse. The feasibility study should remain an important and es-sential element to any major capital campaign)"

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Institutional Strategic Planningand the Needs Statement

The office of development is charged with the responsibilityof gathering financial resources to meet the needs that are mostcritical to the academic enterprise. Directors of development donot determine the listing of needs in a capital campaign. That wouldbe inappropriate as it would place the burden of managing theinstitution's resources on the development staff. The needs in acapital campaign should be determined, after careful strategic plan-ning, by the academic leadership. The development staff shouldbe involved only in assessing the likelihood of success in meetingthese needs."

The president and the chief academic officer should partici-pate in every aspect of determining the needs of the campaign. Inlarge multicampus research universities, the creation of the needsstatement can take many months of work, with input from literallyhundreds of academic officials. Each department and campus of amajor institution should develop a needs statement as an outgrowthof strategic planning. The needs statement must reflect the mostimportant and critical priorities of the institution and must bedesigned to bring the institution to new heights of academicachievement. When a campaign has been completed and the pre-dominant needs items addressed through philanthropic support,there should be a clear sense that the institution has improvedacross the board. The needs of the campaign must be the needs ofthe university, and there must be heavy input from departmental-level faculty, deans, and other academic officials.

The typical call for a listing of academic needs across the insti-tution will produce a list far and above what is practical to fund ina capital campaign. Again, it is the academic leadership of the in-stitution, the president and the chief academic officer, that mustfinally determine what will be targeted by the campaign's needsstatement. This is a difficult process, requiring intimate knowledgeof the strategic plan for every unit of the institution.

In small institutions the needs statement may even extend tothe departmental level, but should also reflect input from faculty.The needs statement of a small institution may be more reflectiveof the general needs of the college or university.

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Typically, in a major capital campaign, only 60 to 70 percent ofthe needs statement is ever actually funded. This is not to say thatthe dollar goal of the campaign will not be met, but the needsstatement goal is rarely achieved in its entirety.

A needs statement also should be considered a fluid documentthat can be changed if necessary throughout the life of the cam-paign. The chief academic officer should be charged with the re-sponsibility of approving changes to the needs statement. Changesshould be made only if there have been curricular and programchanges that would make a needs statement item obsolete.

Unlike the case statement, the needs statement should be asspecific as possible and should outline, in detail, the desired num-ber of endowments to be created during the campaign, as well asthe bricks-and-mortar projects and other needs statement items tobe funded from campaign proceeds. Sample needs statements canbe found in appendix B. In a major university, each academic unitshould outline its needs statement succinctly, indicating the de-sired number of endowed chairs, endowed professorships, schol-arships, and other endowed funds. When possible, these fundsshould be earmarked for particular departments, so that the de-velopment staff is aware of exactly where endowed funds shouldbe placed. Sample language describing endowed funds, buildingprojects, and other important needs can be placed in the needsstatement but most definitely should also appear in other campaignliterature, such as the lead campaign brochure (see appendix C).

The needs statement becomes the guide for prioritizing activi-ties by the development staff. Development officers should notdeviate from the statement when attempting to seek support frombenefactors. At any given moment during the campaign, the de-velopment staff, along with volunteers, should be seeking supportfor only those items that are listed on the campaign needs state-ment. This will keep development officers focused on the majorcampaign objectives and will not allow faculty and staff with sepa-rate agendas to deter funding from a needs statement project orprogram. The needs statement also should be used to monitor theprogress of the campaign to determine if the institution is simplyraising funds and "running up numbers" or actually funding thehighest priorities of the institution as determined by the strategicplanning process and academic leadership.

The needs statement should be released publicly in some form,

43


either as part of the general campaign brochure or printed sepa-rately by academic unit. It is not necessary to keep needs state-ment items confidential, and copies of the statement should bewidely distributed so that all internal as well as external audiencesare aware of the major items to be funded. Some institutions haveused desktop publishing for their needs lists so that they can beeasily revised throughout the campaign.

Setting the Goal for the CampaignDetermining the actual monetary target of the campaign can

be one of the most difficult processes in the campaign. Too oftendevelopment staff and volunteers have no idea how to go aboutsetting the goal. They arrive at a dollar figure that has been deter-mined haphazardly and with no sense as to what is realisticallypossible from their institution's constituencies.

Most campaigns use one of four different goal-setting theories:

Goal Determined by Competing Institutions

Under this theory, a goal is set at a particular level because aninstitution of similar scope and size is currently operating with thatgoal. In other words, Institution A is in direct competition withInstitution B and believes its goal for the capital campaign must beat least as high as Institution B to avoid public criticism. This "keep-ing up with the Joneses" philosophy has no basis in scientific dataand simply chooses a figure that might be right for one institutionbut wrong for another institution. It is a sophomoric approachand can create major problems with goal attainment.

Goal Determined by the Needs

This theory simply adds up all of the needs of the institutionand arrives at the goal based upon the total aggregate of needs.This is neither a practical nor a politically wise approach and canset a goal much higher than can realistically be attained. The needsstatement should be kept totally separate when determining thefinal dollar goal of a campaign. There is never any correlationbetween the needs of an institution and the ability to fund thoseneeds. The original needs statement of The Campaign for PennState totaled more than $900 million, an impossible feat to achieve

44


at the time, given past fund-raising history. The final needs state-ment was $200 million, later increased to $300 million.

Setting the Goal for Public Relations Purposes

Many institutions set their goal because it has a particular ringto it from a public relations standpoint. Many years ago, there wasa rush to be the first institution to declare a capital campaign ofmore than $100 million. That figure sounded awesome in thosedays, and a goal was set simply because the figure was impressive tothe public at large. More recently, there was a rush to announcebillion dollar goals. Again, this theory ignores the basic premisethat a goal should be directly related to the number of major giftprospects available.

Goal Determined by Feasibility Study

This is really the only practical and accurate way to determinethe goal of a capital campaign. A properly conducted feasibilitystudy should give a reasonably good indication of the likelihoodof major gift support from an institution's top-level benefactors.The sample of interviewees must be sufficient to allow those con-ducting the study to draw conclusions about the likelihood of majorsupport. An accurate and timely feasibility study is the only way todetermine the size of the capital campaign goal.

Need Goal Versus Dollar Goal

Institutions should not back away from communicatingbothto internal and external constituentsprogress in relation to dol-lar goalsassuming those dollar goals are a reasonable expres-sion of what the institution can raise in a relatively short period.The public is interested in tracking the progress toward the dollargoal, and institutions have an obligation to report it. But it is alsowise to consider communicating progress toward the specific needsand priorities the institution has identified as campaign priorities.Campaigns are not ends in themselves, but means to an endtostrengthen the institution for more effective service to its constitu-encies by shoring up programs, facilities, equipment, and, aboveall, educational quality. Thus, colleges and universities need to go

45


beyond generalities and discuss the specifics of their campaigns.How well is the institution progressing on raising funds for schol-arships, for endowed faculty positions, for facilities and equipment,and for other endowed programs? Which academic and adminis-trative units within the institution are meeting or exceeding their"needs" and which are not?

It is vitally important for all institutional constituenciesfac-ulty, students, staff, alumni, governing boards, legislators, and thegeneral publicto know that the institution is raising funds forspecific needs. Thus, progress should be reported in terms of theinstitutional needs statement as well as the overall dollar goal. Aswill be seen in chapter 8, the new campaign reporting standards ofCASE specifically recommend this documentation in periodic cam-paign reports.

Excesses will put institutions at risk not only with external con-stituencies but with faculty and students as well. When faculty andstudents see institutions announcing that they have raised morethan $100 million in a capital campaign, yet only $10 million ofthat total is actually in the bank, institutions can expect skepticismand mistrust.

Philanthropic Giving to Public UniversitiesOne of the most difficult tasks facing a public university en-

gaged in a major private gifts campaign is to convincingly respondto a question often asked by potential donors: "Why should I makeprivate gifts to an institution that is supposedly sustained by stateor municipal tax revenues?"

The line between independent and public colleges and uni-versities has always been blurred at best. The earliest Americaninstitutions of higher education were generally religious enterprises,yet they invariably received some form of government assistance.Today, federal and state governments allocate billions of dollarsannually to independent institutions in the form of research con-tracts, fellowships and scholarships, guaranteed student loans, andother benefits.12

Public colleges and universities bear tremendous responsi-bilities for undergraduate education and research. Public highereducation institutions enroll nearly 80 percent of the nation's

4 1


approximately 12 million undergraduates." These students cango on to become some of the nation's most productive and influ-ential citizens.

Public institutions produce the overwhelming majority of thenation's engineers. More than half the presidents and board chair-persons of the Fortune 500 companies are alumni of public insti-tutions." Public institutions receive about half of all funds allocatedfor research in American universities. The land-grant institutions,especially, have excelled in agricultural research. Public universi-ties make up half the membership in the prestigious Associationof American Universities, a consortium of 56 outstanding researchinstitutions.

Higher education is the engine in an information-driven soci-ety. The federal government has recognized this through its land-grant legislation and continues to offer strong support. But it isalso up to the private sector to make certain that the engine ofhigher education performs up to its capacity. State support of pub-lic universities continues to dwindle throughout the nation, andmany publicly funded institutions now claim to be publicly assisted.Support from the state tax dollar has fallen below 40 percent, and,in some institutions, below 30 percent of total revenues. Privatesupport is absolutely vital to the public university and will becomeincreasingly more important as tax support continues to decline.

Selecting a Campaign Name or Theme

Many institutions spend an inordinate amount of time deter-mining a campaign name or theme. Some years ago, CASE CUR-RENTS magazine printed a handy model for determining the nameof a capital campaign.15 This model has recently been updated,and both are included in appendix D.

While the name of a campaign may be important to certainconstituencies, it does not have a material impact on the success ofthe effort. The simpler the name of the campaign the better, andthe use of catch phrases and overused expressions (i.e., "The Cam-paign for Excellence") should be avoided. A simplistic but effec-tive formulation is: "The Campaign for (Institution's Name)."

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Notes1. Robert L. Krit, The Fund-Raising Handbook. (The United States

of America: Scott Foresman Professional Books, 1991), p. 13.2. Kent E. Dove, Conducting a Successful Capital Campaign: A Com-

prehensive Guide for Nonprofit Organizations. (San Francisco:Jossey-Bass Inc., 1988), p. 7.

3. H. Russell Bintzer, "The Many Uses of Professional Counsel,"in Francis C. Pray, ed., Handbook for Educational Fund Raising: A

Guide to Successful Principles and Practices for Colleges, Universitiesand Schools (San Francisco: Jossey-Bass Inc., 1981), p. 217.

4. Jerold Panas, How to Choose the Right Fund Raising Firm. (Chi-cago: Young & Partners, Inc.). [Pamphlet]

5. Bintzer, "The Many Uses of Professional Counsel," in Hand-book for Educational Fund Raising: A Guide to Successful Principlesand Practices for Colleges, Universities and Schools, p. 218.

6. Krit, The Fund-Raising Handbook, p. 17.7. Kent E. Dove, "Changing Strategies for Meeting Campaign

Goals," in A. Westley Rowland, ed., Handbook of InstitutionalAdvancement: A Modern Guide to Executive Management, Institu-tional Relations, Fund-Raising, Alumni Administration, GovernmentRelations, Publications, Periodicals, and Enrollment Management(San Francisco: Jossey-Bass Inc., 1986) pp. 292-309.

8. Richard Page Allen, "Testing the Market: The Feasibility Study,"in H. Gerald Quigg, ed., The Successful Capital Campaign: FromPlanning to Victory Celebration (Washington, D.C.: Council forthe Advancement and Support of Education, 1986), p. 31.

9. John J. Schwartz, "Role and Selection of Professional Coun-sel," in A. Westley Rowland, ed., Handbook of Institutional Ad-vancement: A Modern Guide to Executive Management, InstitutionalRelations, Fund-Raising, Alumni Administration, Government Rela-tions, Publications, Periodicals, and Enrollment Management 2nded. (San Francisco: Jossey-Bass Inc., 1986), pp. 351-354.

10. Allen, "Testing the Market: The Feasibility Study," in The Suc-cessful Capital Campaign: From Planning to Victory Celebration, pp.31-35.

11. Robert L. Stuhr, "The Case Statement," in James L. Fisher andG. H. Quehl, The President and Fund Raising. (New York: Ameri-can Council on Education and Macmillan Publishing Company,1989), pp. 55-62.

48




14. Robert L. Clodius, "The Essential Partnership," in Serving theWorld: The People and the Ideas of America's State and Land-GrantUniversities. (Washington, DC: National Association of StateUniversities and Land-Grant Colleges, 1987).

15. Bernice A. Thieblot, "Name that Campaign," CASE CURRENTSvol. v no. 3: (March, 1979): 58 and vol. xx no. 10: (November/December, 1994): 58.

49

THREE

Creating a CampaignOrganization

The decision has been made to move forward vigorously on

a capital campaign. The president is supportive, the gov-erning board has given its approval, the feasibility study

indicates that resources are available among alumni and other con-stituents, and the academic leadership of the institution has pri-oritized those needs most critical for funding by the campaign.Now it becomes imperative to create a campaign organization thatwill get the job done.

This is no small task. Creating a campaign organization can-not wait until all of the elements mentioned in chapters 1 and 2are in place. Instead, the process must move forward simultaneouslywith those elements. The campaign organization must be in place,

or at least substantially in place, before the feasibility study is com-plete. Even if the study suggests objectives to reach before a cam-paign begins, staff can work on reaching these goals.

Integration of Institutional AdvancementThe First Step

Capital campaigns are managed by professional support staffunder the direction of the chief development officer. The notionof combining fund raising with the other two traditional external-relation positionsuniversity or college relations and alumni re-lationsunder the authority of a single officer was first proposed

3550


at the so-called Greenbriar Conference of 1958, where a numberof higher education public relations personnel met to discuss in-stitutional advancement.' Since then, virtually all professionals andresearch scholars working in the field have endorsed this concept.However, until recently, little attention has been paid to whether itmakes a difference if a development, university relations, andalumni relations program is organized on an integrated (i.e., cen-tralized under one office) or nonintegrated (noncentralized) ba-sis when preparing for a capital campaign.

A survey of senior advancement officers at 10 major researchuniversities nationwide, who at that time were engaged in capitalcampaigns, helped to answer this question.2 Five of the universi-ties used integrated organizations in planning and initiating theircampaigns. At these institutions, the top four officersthe headof each of the three components and the vice president to whomthey reportedwere interviewed. The other five institutions usednonintegrated organization structures. Here only the three com-ponent heads were queried, because a vice president over the en-tire institutional advancement component did not exist.

A capital campaign is an intense, time-consuming project offormidable complexity. The study concluded that universities thathave integrated organizational structures will be better able toprepare for their campaigns, achieving cost savings and better uti-lization of existing staff. Unhealthy competition among advance-ment units also is likely to be reduced.3

It is only logical, then, to recommend that the integrated orga-nization be implemented before the campaign is initiated. The prepa-ration of the case statement, the creation and continued monitoringof public relations plans, the production of campaign videos andpublications, and the impaneling of volunteers can be enhancedthrough integration.

The critical first step in creating a campaign organization, there-fore, is to create a vice president-level position that has authorityover all institutional advancement, including university or college'relations, alumni relations, and development.

The person occupying this senior role should be an individualwith a development background and solid fund-raising expertise.This is not to denigrate the other components of the advancementfunction. It is simply a recognition of the fact that the institutionaladvancement component of a university must move in unison dur-

51

Creating a Campaign Organization I 37

ing a capital campaign, and all three units must come together tosupport, enhance, and promote campaign objectives. Without thiscooperation, the campaign will not move forward as rapidly or asefficiently as the president and the governing board would like.Capital campaign success requires teamwork, and this teamworkcan only be accomplished by integrating and centralizing the ad-vancement function. An organizational chart for the advancementfunction at a college or university may be found in appendix E.

Internal Planning GroupThe first step in staffing a campaign is to form an internal plan-

ning group consisting of those individuals who will provide theongoing support to the effort. This group should be chaired bythe chief advancement officer. Its purpose is to lay out the basiccomponents and the timetable of the campaign and to track theefforts involved. Initially, the planning group should meet on aweekly basis and continue to meet throughout the campaign, neverless frequently than once a month.

All major decision making should flow from this internal com-mittee. Recommendations to the president, to the campaign chair-person, and to other volunteer leaders should begin with thiscommittee. This internal planning group should provide theagenda for volunteer-committee meetings, decisions on solicita-tions, the lead brochure, and supporting audio-visual materials.Obviously, not every decision can be made by the internal com-mittee, as some decisions will need to go before the president, thegoverning board, or the volunteers. However, the discussion thatwill form the basis for decision making should take place in thiscommittee. The internal committee is the nerve center of the en-tire campaign and can even be referred to as the campaign cabi-net, which guides, directs, and supports all campaign initiatives.

In addition to the chief development or institutional advance-ment officer, members of this internal committee should include:

Development Officer in Charge of Prospect Management. Thiscould be the director of development, assistant director of de-velopment, or major gifts officer in charge of tracking majorgifts solicitation for the institution. In small institutions thisindividual might very well wear several hats. Whoever is work-

52


ing primarily with major gift prospects should be a member ofthis internal group.Constituent Relations or Donor Relations Officer. The per-son in charge of donor relations for the institution should be amember of the group, because the planning of events, provi-sion of donor premiums, and fulfillment of donor expecta-tions will become very important in the early stages of thecampaign.Director of College or University Relations, Public Relations,or Public Information. In an integrated system where this of-ficer reports to a vice president for advancement, he or sheshould be put on the internal planning group. A number ofinitiatives involving development communicationsincludingpress releases, video presentations, brochures, and press con-ferenceswill require the expertise of a public relations pro-fessional. Integrating this important function into the campaignis vital in the early stages of the effort.Publications Director. Many times in an integrated system, thepublications officer reports to the director of university rela-tions. If this is not the case, then this official should be a mem-ber of the internal group. The planning of internal and externalpublications can take many months, and including the publi-cations director early on in the project will facilitate the prepa-ration of these materials.Other personnel who should be members of the internal plan-ning group depend upon the organization and structure ofthe institution involved. Suffice it to say that this group shouldbe composed of all of those persons who can help to move thecampaign forward because of the scope of their responsibilityat the institution.

Staffing Required

The number of staff members required for a capital campaignwill, of course, depend upon the scope and size of the institution.Certain positions are necessary, however, for a campaign of anysize. Speaking in approximations, in large public research univer-sities the staff could range from 75 to 150 people, and perhapsbeyond. At institutions with enrollments of 1,000 to 3,000 people,staff size is most likely to range between 5 and 25 people.

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The Campaign Director. The campaign director is the seniorofficial leading and guiding the campaign on a day-to-day ba-sis. He or she must give the campaign total and complete at-tention. The campaign is the director's life. He or she thinksabout the campaign first thing in the morning and the lastthing at the end of the day. It is a job that requires completeand total attention to campaign goals and objectives and shouldnot be undermined by less important priorities.

The chief development officer or vice president of the ad-vancement program should become the director of the cam-paign. After all, by this juncture the president of the college oruniversity and the governing board have determined that thecampaign will be the most important program launched at theinstitution over the next four-to-six years. Pivotal campaigndecisions will need to be made by the vice president, and es-tablishing a layer below the vice president can create an un-necessary bureaucratic organizational structure.

This does not mean, however, that the vice president shouldnecessarily take on the title of director of the campaign. Manylarge, highly successful campaigns do not have a staff positiontitled director of the campaign, preferring that this task beperformed by the vice president in charge of institutional ad-vancement or development. Senior administrators, the govern-ing board, and volunteers need to agree that the persondirecting the campaign on a daily basis should be the highestofficer of the advancement division. That signal sends a strongmessage about the critical nature of the campaign.4

If the vice president does take on the responsibilities ofdirector of the campaign, then it is necessary to employ addi-tional personnel in the vice president's office to assist with theongoing, noncampaign programs. An administrative assistant,development assistant, or development officer can help im-measurably in this regard.

Many relatively inexperienced development professionalsin senior positions ask, "How can I do the work I am doingnow and be campaign director all at the same time?" The an-swer, of course, is that when the decision has been made tomove forward on the planning of the capital campaign, practi-cally everything the vice president does should be related in someway to the capital campaign. The vice president must repro-

54


gram and reevaluate duties and responsibilities that do notdirectly influence campaign activity. The vice president's en-tire agenda should be focused on getting the capital campaignup and running. To focus on items that are not related to thecampaign is to do an injustice to the institution.The Director of Prospect Management. How many individualsare assigned to prospect management depends on the size andscope of the institution. Some institutionsthose with severalhundred thousand alumnihave prospect management staffsof half a dozen people who are constantly reviewing and up-dating prospect lists. However, every campaign needs at leastone professional to develop the major gift solicitation list. Inmost cases it is a full-time job requiring comprehensive knowl-edge of the institution, its alumni and friends, and major bene-factors.Director of Research. Many smaller institutions ignore the re-search function at this stage. Research seems to be the last of-fice filled in many development operations. Nevertheless, it isa vital component of a capital campaign and cannot be over-looked as staff is organized in contemplation of a capital ef-fort. Penn State employed as many as eight full-time researchcoordinators during the initial stages of its first capital cam-paign. Even an institution with fewer than 1,000 students wouldbe advised to employ at least one individual on the develop-ment staff with research skills.

The research staff should identify potential major gift pros-pects. It is a process that should begin long before the capitalcampaign is launched. The staff member in charge of researchshould develop profiles on individual, corporate, and founda-tion ,..ospects having the potential to make gifts of $25,000and above. A general rule of thumb requires 10 prospects toensure one major gift to the capital campaign. A 10 percentsuccess rate may, in fact, be high without a strong history ofmajor gifts. Individual profiles of major gift prospects shouldbe completed long before the feasibility study is ever under-taken.Director of Corporate and Foundation Relations. This posi-don is essential at a large research university, but a staff mem-ber ideally should be assigned to this area of the campaigneven at smaller institutions.

5 5


As a rule, corporations and foundations do not make un-restricted gifts or support endowments or bricks-and-mortarprojects. There will generally be a need for a quid pro quo for acorporate donor to make a major campaign commitment toany institution, public or independent, large or small. Corpo-rations have become notorious for requiring some tangiblebenefit in return for their "generosity."

These benefits can range from special student recruitmentprivileges to sponsorship of academic research programs. At amajor research university, these "project-oriented proposals"can be extraordinarily time consuming and will require thediligence of dedicated staff members, who will work with fac-ulty in applied research areas to develop proposals that matchthe interests and opportunities of a particular corporate en-tity. An automobile manufacturer might be interested in themechanical engineering curriculum, while major oil compa-nies might be most supportive of programs to enhance oil re-covery. Major support from the corporate sector is more readilyavailable to the research university than the small, indepen-dent liberal arts institution. However, this is not to say that smallcolleges do not have opportunities for major corporate gifts,especially if these institutions are located near corporate cen-ters or key branches.Director of Annual Giving. Annual giving at a college or uni-versity must continue, even during the capital campaign years.There must be a staff member who sufficiently understandsthe relationship between the campaign and annual giving tokeep the annual giving component of the institution alive andwell. In a small shop, this person has additional responsibili-ties. At a large university, the director of annual giving mayhave a rather large staff used to interfacing with colleges, de-velopment officers, and deans. In any case, annual giving mustbe protected from atrophying during the campaign years.Director of Donor or Constituent Relations. Increased philan-thropic support to a college or university presents unprec-edented opportunities for the strengthening of donor relations.Benefactors who make major commitments to an institutionrequire special care and attention. Someone who makes a$100,000 commitment will expectand deserveinstant re-sponse to inquiries about a whole variety of institutional matters.

56


A staff member should be assigned to the care and well-beingof these benefactors, not only during the life of the campaignbut afterwards as well. Major gift activity increases the intensityof this office dramatically, so this staff member should also bephysically located close to the chief development officer or vicepresident. Major gift prospects and donors tend to want to dealwith the chief officer of the development program. Situatingthe head of donor relations/constituent relations in the vicepresident's office will give benefactors the sense that they aredealing with the top institutional advancement officer and arenot being shunted to a lesser staff member who has correspond-ingly less "clout" within the institution.Proposal Writer. Every campaign, regardless of size, needs atleast one proposal writer. This writer will not only be in chargeof corporate and foundation proposal writing, a process that isoften technical and faculty driven, but also will fashion pro-posals for individual contributors. Every individual solicited for amajor campaign gift should receive a formal, specifically tailored pro-posal. As will be discussed later, casual solicitationsby phone,mail, or in personthat do not use a written proposal can bedisastrous. Preparing these proposals is essential to the successof any capital campaign. A staff member who can help pro-duce the proposals in a timely, efficient, and diligent manneris crucial.Director of Development Communications. All campaigns,large or small, produce communications with internal andexternal audiences. A staff member must possess excellentwritten and verbal skills to effectively produce campaign bro-chures, newsletters, press releases, and overall news media re-lations. In an integrated university, this individual could be thechief public relations or university relations officer. In the smallshop, this individual will likely have numerous responsibilities.In any event, there needs to be at least one staff member whounderstands this component of the capital campaign and canprovide support and assistance in shaping campaign commu-nications.Development Officers Overseeing Fund-Raising Personnel. Anactive volunteer campaign committee requires close supervi-sion and support by the development staff. For example,trained, knowledgeable development officers should accom-

5 7


pany volunteers on fund-raising calls. These officers shouldnot be burdened with heavy managerial responsibility or theday-to-day operations of the campaign. They must be readilyaccessible and able to travel the majority of the time, and theymust respond quickly and efficiently to volunteers during in-tense proposal delivery activity. At a large research institutionwith multiple campuses, there may be as many as 20 or 30 indi-viduals assigned this responsibility, including the vice president,who accompanies senior administrators and volunteers whencalling on prospects at the highest level. In a small shop, thevice president and two or three staff members with multipleresponsibilities might serve this function. Persons assigned thisresponsibility should be among the most talented and experi-enced development staff members. These are the people onthe front lines, cultivating potential donors and "selling" thecampaign to institutional constituents.

Although it is difficult for the vice president of develop-ment to find time for this activity, it is essential that he or shebe seen as the chief fund raiser (after the president). The vicepresident must, therefore, reserve considerable time for di-rect, face-to-face solicitation.Director of Records Systems. Major gift donors will expect theircommitments to be tracked, recorded, and acknowledged effi-ciently and effectively. A staff member who carries out this func-tion is critical to the success of the capital campaign. Giftcommitments must be recorded by an institution with extremecare and extraordinary accuracy. Failure to record a gift or toproperly acknowledge the gift can have a deleterious effect onfuture major gift support.Director of Planned Giving. Whether the capital campaign isbeing conducted at a large research university or a small, inde-pendent liberal arts college, a highly competent deferred-giv-ing officer is essential. In the large institution environment,several planned gift officers may be necessary (in 1994, PennState had four planned gift officers). In a small environment,the vice president or director of development may be calledupon to fill this role. Whichever the case, irrevocable deferred/planned gifts may account for well over 50 percent of the goalof a capital campaign. Knowledgeable personnel, trained inthe latest gift techniques, will be important.

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Each of the staff positions described above is instrumental forthe successful launching and efficient running of a capital cam-paign and should not be overlooked due to lack of resources. At amajor institution each of these components might be staffed byseveral individuals. At a small college, one individual might becharged with administering two or more of the components.

Experience has shown that a capital campaign invariably re-quires many more staff members than assumed at the outset. Presi-dents and governing boards are usually surprised and sometimeseven dismayed at the number of new personnel required to makethe campaign a success. It is simply not possible to run a capitalcampaign with existing development and university/college rela-tions personnel, and increased personnel costs are a fact of life. Ifthe president of an institution requires the chief development of-ficer to administer the campaign without any increased staff, thatpresident is dooming the effort to failure and is asking the chiefdevelopment officer to accomplish the impossible. The capitalcampaign will require increased personnel costs in practically everysector of the development operation.5

Relationship of the Capital Campaign to OngoingFund-Raising Activities

A sophisticated development organization is in the business ofraising money, with or without the aegis of a capital campaign.This has even led to the argument among some development pro-fessionals that capital campaigns are simply an ongoing statementof institutional needs and priorities and that institutions shouldcontinue to vigorously raise private funds with or without the frame-work of a capital campaign. After all, just because the campaignhas concluded does not mean that the needs of an institution ceaseto be acute. In fact, a capital campaign tends to raise the level ofexpectation among academic administrators for continued re-sources for academic priorities.

Some development professionals agree that an institution isalways in a capital campaign because that institution is always seek-ing private gift support as vigorously as possible. The University ofTexasAustin has long felt that the formal establishment of a capi-tal campaign is not necessary because it continually seeks privategift support year in and year out. In other words, the institution's

59


entire program is trying to seek the maximum support possiblefrom alumni, friends, corporations, and foundations. Therefore,the trappings of a capital campaign are superfluous.

In a sense, what the officials at the University of TexasAustinare saying is that the capital campaign simply "gets in the way" ofongoing fund-raising activities. Their argument rebuffs the propo-sition that it is impossible to sustain an intensified, systematic pro-gram of major gift fund raising on an ongoing basis, that there isno opportunity to "rally the troops" around a particular cause, andthat volunteers grow weary of major gift fund raising after five toseven years. The University of Texas contends that it is possible tosustain major gift fund raising forever. Unfortunately, a sustained,intense major gift fund-raising campaign or activity will many timeslead to "donor fatigue." Benefactors will, in fact, grow weary ofperpetual major gift solicitation without some relief.

There is no question that a five- to seven-year capital campaigninstills a fund-raising process that will continue to benefit the insti-tution in years ahead. While the day-to-day development activitiesshould by no means be suspended during a campaign, all compo-nents of a development operation should be keyed into campaignactivities. None of the ongoing activities should exist in a vacuumapart from the overall campaign activity; each should run in tan-dem with the campaign.

Annual Fund

Regardless of the size of the institution, the vast majority of acollege or university's alumni will not be given the benefit of apersonal call by a volunteer or staff member on behalf of the cam-paign. It is simply not feasible or practical for vast numbers ofalumni to be contacted personally and asked to make a gift to thecampaign. At Penn State, the database lists 350,000 alumni. A per-sonalized appeal to only 1 percent of these would require 3,500personal solicitations. Similarly, at a small college with 10,000 to20,000 alumni, the proportionally smaller professional staff sizestill makes it difficult to call on a large percentage of this databasepopulation.

Nevertheless, an annual fund program should not continueduring the campaign without regard for the larger effort. Manyinstitutions have left the annual giving program undisturbed dur-ing the capital campaign and have focused on major gifts from a

En


relatively small number of alumni. Under this scenario, annualgiving is allowed to send the same type of mailings and performthe same kind of telephone solicitations that it has always done.Communications with alumni proceed as if the capital campaigndoes not exist.

This is a mistake. The annual fund program should continueto seek gifts during the capital campaign, but should recognizethe campaign in all promotional literature. A 1979 survey of uni-versities conducting capital campaigns by the American Councilon Education found that "in both the public and private sectors,the overwhelming majority of institutions maintain their annualfund-raising programs during the course of their capitalcampaigns."'

Annual fund literature should carry a description of the cam-paign, and alumni should be made to feel that their annual giftsare helping, even in a small way, to satisfy campaign needs. Ex-treme care, however, should be taken to make certain that alumnido not feel their annual gift is necessarily their only gift to the capi-tal campaign. Many alumni who are solicited for an annual gift of$100, $500, or $1,000 might inadvertently be made to feel thatthey have done all that is necessary for the capital campaign. If so,a future solicitation of a particular alumnus for a gift of $25,000,$50,000, or $100,000 might fall on deaf ears. An alumnus shouldnot feel that his or her annual gift relieves him or her of an obliga-tion to make a major gift to the campaign.

This is likely to be a problem with only that small percentageof alumni who are capable of making a major gift to the campaign.There are several ways to avoid what can be called a preemptive an-nual grill (see figure 3.1).

Corporate and Foundation Relations

In many cases, capital campaigns present an opportunity toincrease annual gift or normal ongoing support from a corpora-tion or a foundation to the institution. If the college or universityis receiving $10,000 a year for a particular project from XYZ Cor-poration, it might be possible to invite that corporation to pledgethat amount during the life of the campaign as well as increase itto new levels. In this case, the use of a double-ask, where the cam-paign solicitation includes an annual giving component, can work


Figure 3.1 Ways of Avoiding a Preemptive Annual Gift

The following actions can help institutions avoid a preemptive an-nual gift:

1. Delete from annual phone or mail gift solicitation databases thosemajor gift prospects who will be asked personally to contributeto the campaign with a multiple-year pledge. Even though thismechanism solves the problem of receiving a preemptive giftthrough the mail, it is not recommended under all circumstances.Unless the capital campaign has a large staff that is capable ofreaching alumni quickly, it could mean that certain alumni willgo unsolicited for several months, if not for several years, duringthe campaign. Excluding an alumnus from an annual fund mail-ing solicitation in an attempt to reserve him or her for a capitalcampaign "ask" may simply have the effect of "losing the an-nual gift." Extreme caution should be taken when making anydecision to eliminate major gift prospects from the annual givingprocess.

2. Isolate major gift prospects and deal with them through specialmailings that inform and educate the prospects to the necessityof a "double ask." The double ask appeals to an alumnus orfriend of the institution to make a commitment, not only to an-nual giving, but a multiyear pledge to the capital campaign aswell. The double ask does require the education of alumni andmust be carefully worded so that alumni keep the commitmentsseparate and distinct.

3. A third option is to continue annual giving appeals full throttle,and, in fact, make them a part of the overall campaign by usingthe campaign logo and campaign information in all annual fundliterature. Major gift prospects receive the same mailings as allother prospects, and these mailings are identified as campaign-related solicitations. When the alumni are called upon person-ally and individually by staff and volunteers for major gifts, anexplanation is made for the necessity of both annual giving andcapital giving. The second solicitation (the campaign solicita-tion) is structured and likened to other philanthropic giving, mostparticularly, church giving. Most religious organizations ask forongoing annual giving for church or synagogue operations. Oc-casionally, members of a particular church or synagogue areasked to contribute a capital gift for a particular project that hasbeen identified as a priority. Generally, this is a bricks-and-mor-tar project, but not necessarily. Most individuals recognize thedifference between an annual gift and a capital gift with amultiyear pledge.

62


Figure 3.1 (Continued)

4. Finally, it might be wise to consider suspending phone and mailsolicitation to major prospects during the life of the campaign.Many smaller institutions have chosen this alternative and haveasked these prospects to make a multiyear commitment to an-nual giving as well as a multiyear commitment to the capitalcampaign. In other words, ask an alumnus to continue his or her$1,000 annual gift, and pledge an additional capital gift over thenext five years to a scholarship fund or other endowed fund orproject. Remind the alumnus of both his annual and capital giftat the same time. Hendrix College used this strategy very effec-tively in a campaign in the early 1980s. Major gift alumni areasked for one commitment with two components. Again, how-ever, the problem of getting to all of these major gift prospects ina relatively short period of time is a drawback to this process.

especially well. When asking a corporation for a campaign gift, donot simply ignore the annual component that is already comingfrom the corporation. Make it a part of the overall solicitation.

For many years, corporations and foundations resisted appealsfor capital campaigns. These entities did not generally give to bricks-and-mortar projects and endowment funds anyway, and they ap-peared disinterested in learning about campaign priorities. Thereis some evidence that this is changing, and corporate executivesare beginning to understand the importance of a capital campaignto an institution. Jon Van Til and Associates state that "increas-ingly, corporate giving is being seen not solely as philanthropy butrather as an established part of doing business."'

Planned Giving

The planned giving office is a key component of a capital cam-paign team. Many of the larger commitments during any campaignare in the form of planned, irrevocable gifts that require the ex-pertise and knowledge of a professional planned gift office. Pres-sure will build to accelerate planned gifts so that they are in a formthat allows for their countability in the campaign. Planned gift staffshould always exercise flexibility in looking for ways to move giftsto fruition while maintaining the integrity of the major gift pro-cess. This sense of urgency is the major difference between a

63


planned giving staff in a campaign mode and one in a noncampaignenvironment. Pressure to accept major planned gifts, irrevocablein nature, as opposed to smaller cash gifts will also be in evidence.Staff must balance these competing needs, always focusing on whatis best for the institution as a whole.

Communications

All communications with the institution's constituencies dur-ing the life of the campaign should reflect the status of a campaignenvironment. Internal and external publications should clearly beidentified as campaign publications. If an institution has previouslydone a good job of communicating to its constituencies, there isno reason to change the general format, and only minor adjust-ments need to be made to signal that these existing publicationsare campaign-oriented. Perhaps a name change of a particularcommunications deliverable is all that would be necessary. How-ever, all communication techniques should be seen as campaigncommunication pieces during the lifetime of the effort.

The Volunteer OrganizationThe campaign gives the institution the opportunity to revital-

ize and reinvigorate its main volunteer organization. Many col-leges and universities have a major volunteer organizationcomposed of alumni and friends who assist in the developmentfunction. These organizations should not necessarily be suspendedduring the campaign. However, because the capital campaign doesallow an institution to redirect the focus of the major volunteergroup, in some cases an existing volunteer group should be put"on hold" so that a new volunteer organization can be createdexclusively to support the campaign.

At Penn State, for example, a development council existed in1984, when the university was preparing for a capital campaign.The council was composed primarily of individuals who, while sup-portive of the university, did not have the financial capability tomake major commitments. Moreover, the council was sufferingfrom burnout. Penn State decided to place this organization onhold and created a new organization titled The Executive Com-mittee of the Campaign. When the campaign concluded six years

64


later, a new organization was formed with new members and renamedThe National Development Council. The new membership didinclude many of the volunteers who were active during The Cam-paign for Penn State. Only the volunteers that exhibited interestin garnering financial resources for the institution were invitedback on the council. This afforded nonactive members the oppor-tunity to quietly serve the university in other ways.

Thus a whole new organization sprang from the campaign vol-unteer group. The National Development Council has proven tobe more vigorous and supportive of university projects than itsprecampaign predecessor, and it is composed of individuals whohave the financial ability and wherewithal to make major commit-ments to the university.

Do not allow two volunteer organizations to operate simulta-neously during the campaign. It is not possible for staff membersto service both groups, and confusion will exist as to the purposesand functions of one volunteer group versus the other, unhealthycompetitor.

At those public universities with foundations composed of vol-unteers who control the fund-raising programs of the institution,the campaign volunteer committee should come from that orga-nization or at least be made a subunit of that organization. Thepreferred technique is to use the existing foundation board of di-rectors as the campaign committee. This may not be possible ifthe board is not composed of major gift prospects who can guide,lead, and direct the campaign through the example of their ownphilanthropy.

The Role of the President of the Institutionin the Campaign

The president has a dramatic impact on the campaign. As statedpreviously, the president must totally support the concept of a cam-paign and must be its strongest advocate. He or she must make thecampaign an institutional priority and devote a substantial per-centage of time to the effort. In their book, The President and FundRaising, James Fisher and G.H. Quehl state that "the college oruniversity president must lead the entire fund-raising effort as thechief advancement officer for the institution."'

How much of the president's time should the campaign re-

65


quire? In the early stages of the effort, it is not out of the realm ofpossibility for a president to devote as much as 60 to 70 percent ofhis or her time to campaign priorities. At a minimum, the presi-dent must be willing to devote ample time to the following activities.

Assisting with and Endorsing the Campaign Planning Phase

The president must be viewed as the campaign leader. Thiscannot be left to the campaign staff or the chief development of-ficer. As the person who will bring the campaign to fruition, he orshe must be at the front of any planning efforts.

Recruiting the Volunteer Committee for the Campaign

The president must be willing to travel extensively in the earlydays of the effort to impanel the volunteer committee for the cam-paign. Again, this cannot be left to the chief development officer.The president must personally recruit every member of the mainvolunteer committee. Recruitment should include personal calls,either at the volunteer's home or place of business. Securing thecampaign chairperson will probably be the most important initialtask of the president.

Attending Meetings of the Volunteer Group

The president must attend every meeting of the major volun-teer group of the campaign to demonstrate to these volunteersthat the campaign is an important priority. Major volunteers willwant to communicate directly with the president about campaignmatters, and he or she should be available accordingly.

Acting as Principal Spokesperson for the Campaign

All major gift announcements should flow through thepresident's office and be made jointly by the president and thecampaign chairperson. This demonstrates to benefactors that theirgift commitments are considered vital and will also signal internaland external constituencies that the campaign is very importantto the welfare of the institution.

Participating in the Faculty/Staff Campaign

The president should be a visible and active participant dur-ing the internal faculty/staff campaign. The president must be seen

66


as totally supportive of the effort, and this visibility will serve as amultiplier, encouraging other members of the faculty/staff com-munity to make commitments to the campaign.

Soliciting Major Gifts

Generally speaking, the president should solicit any gift above$250,000; donors will expect it. Corporate and foundation gifts inthe $1 million range should be solicited by the president. Obvi-ously, the president will have a very high profile in campaigns of$100 million or more because these larger-scale efforts requirenumerous gifts of $250,000 and above. Presidential involvementbelow the $250,000 level should be evaluated closely. This is par-ticularly true in larger institutions. Smaller colleges and universi-ties might appropriately reduce this level to perhaps $100,000 butmuch below this becomes a poor use of the president's time. TheCEO of the institution must concentrate on major, sizable gifts.Only in circumstances where the president has a close personalrelationship with the prospect should his or her involvement beconsidered below this level. Certainly, the president of the univer-sity should solicit the chairperson of the campaign early on re-gardless of the size of the chairperson's campaign commitment.

Role of the Chief Institutional AdvancementOfficer(Vice President)

In any major gift campaign, the chief advancement officer,usually at the vice presidential level, inevitably has a very high pro-file. Duties and responsibilities follow.

Providing Staff Support to the Chairperson and President

First and foremost, the vice president must provide staff sup-port to the chairperson of the campaign and the president of theinstitution. All prospects assigned to the chairperson of the cam-paign and the president must also be assigned to the vice presi-dent. The vice president should know these prospects intimatelyand view them as his or hers under the prospect managementsystem.

Any time a solicitation is made by the chairperson or presi-dent, the vice president should promptly debrief the chairperson

67


and the president. The vice president should provide written re-ports of contact, even though he or she may not actually make thesolicitation with the president or chairperson. In short, the vicepresident provides support to the president and campaign chair-person on an ongoing basis and makes certain that reports of con-tact, proposal letters, and acknowledgment letters are done in atimely and efficient manner.

Supporting the chairperson and the president is the most criti-cal and important priority of the vice president. In any major giftcampaign, the chairperson and the president should be involvedon a weekly basis in gift solicitations. Servicing these two impor-tant officials will occupy a great deal of time by the vice president,but no task is more important during the campaign's major giftsolicitation phase.

Serving as Liaison to the Volunteer Committee

The vice president also is the staff liaison to the top volunteercommittee. The vice president's office should maintain constantcontact with the top volunteer committee. The vice president mustremain in monthly contact with all members of the volunteer com-mittee, either through phone conversations or personal visitations.Members of the volunteer committee should feel comfortable withthe vice president on a personal basis and should be willing tocontact the vice president at any time with important campaigninformation, particularly regarding new prospects.

Serving as Campaign Director

As already noted, the vice president should serve as the direc-tor of the campaign. This responsibility should not be delegatedto any other official. Major volunteers and benefactors of the insti-tution will want to deal not only with the president but with thesenior fund-raising official. The vice president must plan and di-rect the campaign on a daily basis, and provide analysis of everyaspect of campaign activity, plans, and fund-raising potential. Manyadministrative details of the campaign can be assigned to otherstaff members, but responsibility for moving the campaign forwardon a day-to-day basis should remain with the vice president.

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Providing Services to the Campaign Committee Meetings

All meetings of campaign committees should be under the di-rection of the chief development officer. The agenda and majorthrusts of campaign meetings should flow from the vice president,in consultation with campaign volunteers.


The vice president can and should accompany the presidentof the university and/or the chairperson of the campaign on ma-

jor gift solicitations. Care should be taken that no more than threeindividuals be involved in a solicitation at any one time. Generallyspeaking, the vice president makes a $1 million solicitation only ifaccompanied by a campaign volunteer or the president of the in-stitution. The vice president is involved in solicitations at the levelof $100,000 to $1 million. Obviously, there are exceptions to thisgeneral rule and the solicitations will depend upon the vicepresident's relationship with campaign prospects. The vice presi-dent is one of the major solicitors during the campaign and shouldbe expected to spend 50 percent to 75 percent of his or her timein campaign solicitations during the advanced gift phase of thecampaign. Given the administrative tasks that the vice presidentwill be required to perform, this will be very difficult to accom-plish. The vice president will be the busiest individual in the cam-paign and must protect his or her time carefully.

No major campaign meeting should take place without theinvolvement of the vice president, nor should any major solicita-tion move forward without his or her knowledge and approval. Allagendas of campaign committee meetings should be structuredand approved by the vice president. In short, the vice president isthe director, the architect, the progenitor, the manager, and thefacilitator for the entire campaign. Without a strong vice presi-dent guiding and leading the effort, the campaign cannot be suc-cessful. The president and lead volunteers must have a vicepresident who is hardworking, diligent, energetic, and enthusias-tic, and who is always looking for the next major gift to the cam-paign. During the intense period of the campaign, the vicepresident should think about the campaign 18 hours a day. Theother six hours are reserved for sleep and reflection.

Throughout this chapter, the chief advancement officer has

69


been referred to as a vice president-level official of the college oruniversity. It is strongly urged that the person occupying this posi-tion hold that title. The institution relies on this person to guideand lead a critically important university priority, and the title ofvice president is an outward sign to constituents of the importanceof the position.

Role of the Director of Alumni RelationsIn any capital campaign, the director of alumni relations must

be an enthusiastic supporter of the effort, as many alumni tradi-tionally look to this official first for guidance and direction.

The alumni magazine should regularly carry stories and ar-ticles about campaign successes. In fact, the alumni director shouldmake space in alumni publications available to the campaign of-fice on a continuing basis. The director and staff should also makecampaign news a priority during alumni club visitations. Theyshould make presentations on the importance of the campaign atall public alumni meetings and should be willing to share cam-paign materials and information readily with alumni throughoutthe country.

It is not out of the realm of possibility to involve the director ofalumni directly in campaign solicitations. Many times, alumni di-rectors are closer to alumni prospects than any other individual atthe institution. Involving them in the solicitation phase, providedthey have expertise in solicitation, can yield important benefits.Even though an alumni director's main responsibility is generally"friend raising," there is no reason why this cannot be expandedto fund raising during the life of the campaign.

Furthermore, in many campaigns, alumni clubs have beenencouraged to create endowed scholarships and fellowships. De-pending upon campaign priorities, it may be advisable to encour-age alumni clubs to be involved in the campaign at this level.

Many alumni associations have independent funds availablefor the use of their board of directors. It would not be unusual,then, to ask the directors to appropriate funds to the campaign asa gift from the association. At Penn State the Alumni Associationmade a $1 million gift to endowment programs. This gift was col-lected mainly from self-generated revenue, including the sale ofalumni watches, clothing, credit cards, and licensing fees. The gift

70


had a dramatic impact on alumni giving in general and served as amultiplier, inspiring contributions from other independent uni-versity groups.

If support from the alumni director is important to the cam-paign, it is only reasonable to conclude that criticism about cam-paign priorities and a less than supportive attitude on behalf ofthe alumni director can undermine campaign priorities. Conse-quently, it is imperative that the alumni director be kept informed,involved, and a part of the campaign at every juncture.

Role of the College or UniversityRelations Director

Titles for this individual vary from institution to institution,but the responsibilities are mainly those of a chief public relationsofficer, who is in charge of public relations, public information,and media relations. For the purposes of this book, this person isreferred to as director of college or university relations.

In an integrated program where this official reports to the chiefadvancement officer, the director of university relations should beintimately involved in the campaign. When a separate develop-ment communications program is not in effect, the director ofuniversity relations along with his or her staff should provide thissupport to the campaign. All public relations/media relations pro-grams should flow through the director of university relations.

This official usually needs a staff dedicated to developing cam-paign communications programs. Internal and external publica-tions along with press releases, campaign publications, and mediasupport require an office devoted to these functions exclusively.There is no reason, however, that these functions should not re-port through a director of university relations. The director is pre-sumably an expert in dealing with the public and the media andshould be able to provide important direction and leadership tothe campaign. Precampaign publicity should be initiated by thedirector of university relations, and a precampaign publicity planthat leads to the ultimate announcement of the campaign shouldbe created and proposed by the director of university relations.Not to involve the chief public relations officer will only lead tohurt feelings and less-than-satisfactory relationships among ad-vancement personnel.

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Notes

1. M. D. Richards, G. R. Sherratt, "Institutional AdvancementStrategies in Hard Times," in ERIC Report Number 2. (Washing-ton, DC: American Association of Higher Education, 1981).

2. G. David Gearhart, "A Study of the Relationship Between thePreparation for and Initiation of a Capital Fund-Raising Cam-paign in a Major Research University and Two Types of Orga-nizational Structure." Ed.D. diss., University of Arkansas,Fayetteville, Arkansas. 1989.

3. G. David Gearhart, M. Bezilla, "Fund Raising Success TakesTeamwork," in Fund Raising Management. (March, 1991), pp.42-44,46.

4. Rita Bornstein, "The Capital Campaign: Benefits and Hazards,"in James L. Fisher and G. H. Quehl ed., The President and FundRaising. (New York: American Council on Education andMacmillan Publishing Company, 1989), pp. 203-204.

5. Paul E. Wisdom, "Another Look at Costs," in James L. Fisherand G. H. Quehl, The President and Fund Raising. (New York:American Council on Education and Macmillan PublishingCompany, 1989), pp. 147-159.

6. Sharon L. Coldren, The Constant Quest: Raising Billions ThroughCapital Campaigns. (Washington, DC: American Council onEducation, 1982), p. 60.

7. Jon Van Til and Associates, Critical Issues in American Philan-thropy: Strengthening Theory and Practice. (San Francisco: Jossey-Bass Inc., 1990), p. 59.

8. James L. Fisher, G. H. Quehl, ed. The President and Fund Rais-ing (New York: American Council on Education and MacmillanPublishing Company, 1989), p. ix.

73

FOUR

Volunteers andExternal Organization

Development literature is full of articles, books, monographs,dissertations, and other materials on the use of volunteersin philanthropic endeavors. Much of the literaturediscusses

the essential role of volunteers in fund raising.' Volunteers are ex-tremely important in a capital campaign, especially in securingmajor gifts. Although staff, including the president, vice presidents,deans, and development officers, can be successful in major giftfund raising without volunteers, it is more likely that the processof solicitation will be accelerated with the strategic involvement ofkey volunteers.2

Uses of VolunteersVolunteers have many uses during a capital campaign. Some

of the more important ones are the following.

Serving in Leadership Capacities as Officers of the Campaign

Depending on the size and scope of the campaign, there maybe opportunities for volunteers to serve in a varietyof official roles,such as campaign chairperson, vice chairperson, secretary, andtreasurer. Numerous committees and task forces throughout thelife of the campaign require volunteer leadership, many of whichare described in the following pages.

59 7 4



Often a volunteer can make a difference in the solicitation ofamajor gift. Peer pressure (described in more detail in chapter 5)can be an important factor in closing on a major gift opportunity.Volunteers accompanying staff, particularly the president or vicepresident for development, can be a powerful team that mightleverage a gift that otherwise would not be forthcoming.

Providing Leadership

Volunteers can provide leadership and expertise on organiza-tional and strategic issues relating to gift accounting principles,campaign timing, and campaign promotional materials.

Serving as Spokespeople for the Campaign

Volunteers, along with the president of the institution, can serveas spokespeople with the news media and the institution's con-stituencies. Many times, volunteers will carry more clout than staffin a community and can serve in an important communicationscapacity.

Ask only the most dedicated, committed, and energetic volun-teers to participate in the volunteer role during the capital cam-paign. Choose only those volunteers who have interest insupporting the campaign through their own philanthropy. Pre-pare them to commit their own resources to the effort before theycan ask others to do so.

In most cases, volunteers will require extensive training in thesolicitation process. This process is outlined in chapter 5.

Regardless of the size of the institution or of the capital cam-paign, the use of volunteers demands extensive staff time. Volun-teers expect the campaign office to tend to their needs and answertheir questions, and this expectation should be anticipated. Vol-unteers are a most valuable resource, and staff members must treatthem with care and respect. The "care and feeding" of volunteersduring a capital campaign is one of the most important staff as-signments, and staff should be prepared to spend many hours inthis process.

Barbara Snelling states:

No matter what the role of its volunteer, the volunteer's gift oftime should be respected by the professional. There is a respon-

75

Volunteers and External Organization I 61

sibility to see that this gift is cherished, not wasted or abused.The stewardship of the volunteer's time is analogous to, andshould be taken as seriously as, the stewardship of a voluntarygift of money in which considerable care is given to ensure thatthe money is managed well and used only for specified purposes.'

Recruiting VolunteersAll volunteers, regardless of the level of assignment, will re-

quire recruitment. Whenever possible, volunteers should be re-cruited by the most senior staff. In most cases, this will be thepresident of the institution and/or the chief development officer,and this action will help to identify the campaign as an importantactivity. If an executive at a lesser level is sent to recruit possiblevolunteers, they are likely to dismiss the campaign as unimportantand an unnecessary expenditure of their time.

The recruitment of the senior volunteer leadership must alsoinvolve the campaign chairperson, reflecting a unified effort ofboth administration and alumni and friends. This places the pri-ority of the campaign at the highest level and is an undeniableinstitutional demonstration of commitment. As Kent E. Dove states,

Recruitment of volunteers is a shared responsibility and is usu-ally done most successfully from the top down. The campaignchair should be recruited by the top people in an organization. . . the institution should not send in a low-level manager to askfor a commitment. Send top gunsthe chief executive officerand the board chair.4

The senior development officer in charge of the campaignaccompanies the president and chairperson of the campaignthroughout the recruitment process. This staff member will haveday-to-day contact with the lead volunteers, and a close workingrelationship from the beginning is very important.

In larger campaigns with multiple committees and assignments,it may not be practical for the president of the university and thechairperson of the campaign to recruit volunteers past the majorlead campaign committee. It may be necessary for volunteers andother staff to recruit lower-level campaign committees. This is ac-ceptable provided the recruiters have a full understanding of cam-paign priorities, volunteer duties, and responsibilities. Sending

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mixed messages into the volunteer workforce can have a long-lasting and debilitating impact on early campaign planning andobjectives.

Ultimately, the volunteer leadership must take ownership ofthe campaign and make it their campaign. Every facet of the ef-fort must have the support and encouragement of the volunteerstructure.

An important first step for volunteers is to make their own com-mitment to the campaign, particularly as they begin soliciting oth-ers for commitments. Many experts in the field insist that volunteersbe solicited even before they are asked to serve on major cam-paign committees. The thought is that a volunteer will be only asgood as his or her commitment to the campaign. If a volunteercommits at a lower level than is appropriate for his gift capacity,then it is likely that his volunteer work will be similarly unim-pressive .5

The theory here seems solid and is difficult to contradict. How-ever, from a practical standpoint, particularly in the first majorcampaign at a college or university, soliciting volunteers beforethey are heavily involved in the campaign and before they haveexperienced working with fellow campaign leaders may be a mis-take. Experience has shown that volunteers who have the poten-tial to make major commitments to the institution are more apt todo so only after they are fully entrenched in the campaign andhave been convinced that it is an extremely worthwhile effort.Winning a volunteer's complete confidence early on in the pro-cess may not be possible. A better tactic might be to inform volun-teers that they will be called upon for a "major commitment" at anappropriate time during the campaign. Tell volunteers that a giftrequest will be forthcoming early in the campaign and that a giftof six or seven figures will be expected if the volunteer joins thenational campaign committee.

This, of course, opens up the possibility of preemptive gifts, sothe solicitation should not be delayed for too long. However, rush-ing in with a proposal at the same time the volunteer is being re-cruited for committee membership may be premature and resultin a much smaller commitment than originally desired.

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The Campaign Volunteer Committees andOrganizational Models

There are numerous ways to organize a volunteer structurefor a capital campaign. Practically every capital campaign, how-ever, needs a lead campaign committee or, as it is often termed,the national campaign committee.

The National Campaign Committee

This is the group of volunteers that has been recruited by thepresident of the institution, chief development officer, and chair-perso'n of the campaign to guide and lead the overall effort. Thiscommittee is generally composed of alumni and friends of the in-stitution who are interested in giving their time and talent as wellas making a major financial commitment.

In larger institutions, the committee may be representative ofcampuses, academic branches, and other units. This approach isnot necessarily recommended, as an institution should be lookingfor the most capable and financially viable volunteers without re-gard to which units are represented. It is more important to have acohesive volunteer committee composed of individuals who havethe ability and wherewithal to be at the same general giving levelas their fellow committee members. Committee members who donot have the financial ability to make major commitments to thecampaign might feel embarrassed or even inadequate in their com-mittee membership. Most committee members, therefore, shouldbe of sufficient philanthropic ability so that their level of gift sup-port will not be embarrassing or seem inadequate when comparedwith other committee members.

The size of the national campaign committee will depend agreat deal on the institution's constituency. Larger, more complexinstitutions will often find it necessary to expand the number ofcommittee members. The recent Campaign for Penn State had atotal committee membership of 32. Some campaign committeesof smaller institutions might find it adequate to hold committeemembership to no more than 10 or 15 members. The committeemust be small enough so that each member becomes acquaintedwith his or her fellow committee members, and the national com-mittee becomes a team effort and a special group of supportersworking toward a common goal.

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The national campaign committee should meet at least fourtimes a year during the life of the campaign. It is necessary to stayin close contact with committee members, and after solicitationassignments have been made, it will be important for committeemembers to make regular interim reports on a continuing basis.Committee members ought to feel a sense of obligation to gettheir committee assignments accomplished, knowing that they willbe called upon on a quarterly basis to make appropriate reports.

The National Campaign Executive Committee

Depending on the size of the national campaign committee, itmay be necessary to create a smaller working group that can meeton a monthly basis. The planning group could consist of the offic-ers of the campaign and appropriate staff members. The planninggroup guides the campaign on a regular basis and serves as a sound-ing board for major campaign decisions. The executive commit-tee should have the authority to act on behalf of the nationalcampaign committee.

The Honorary Campaign Committee

There will be alumni and friends of the institution who maywant to participate in some way with campaign objectives but areunable to do so because of physical impairments and other con-siderations. These alumni and friends might be unable to traveland participate in campaign meetings. This honorary status willkeep them involved and informed about campaign progress andwill serve as a way to recognize a distinct group of benefactors whoare interested in the institution but can no longer participate on aregular basis. The honorary committee is also a mechanism to rec-ognize government officials and other friends of the institutionwhose time is at a premium and who are unable to appropriate thehours necessary for the campaign.

Organizational Models

Several different organizational models exist for the creationof volunteer committees for a capital campaign. It is most impor-tant to keep in mind that every committee within the campaignshould have a definitive goal and set of objectives. These goals

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may fluctuate throughout the life of the campaign, but volunteershave to know specifically what is expected of their respective com-mittees. Every volunteer should be given a task plan and a defini-tive list of prospects and assignments.

Keep in mind, too, that the campaign committee should notbe recruited until there are definitive plans and tasks for assign-ment to those committees. Campaign committees should not beimpaneled and organized until the campaign has reached the pointwhere there are goals and objectives for that respective commit-tee. Organizing committees without specific tasks will only lead toconfusion. Volunteers will feel the campaign is not progressingand that they have been asked to participate but given no duties orresponsibilities. Refrain from organizing committees that do nothave task plans. There are few situations worse than a committeethat has no purpose for existence.

Many campaigns operate subcommittees under the overallnational campaign committee. This provides many advantages inthat it allows staff to focus on a defined committee membershipand allows for optimum management of the volunteer structure.Organizing the national campaign committee into geographic re-gions, gift levels, and functional areas helps to maintain a tightlycontrolled organizational structure and can assist institutions bothlarge and small in moving the effort forward rapidly. However,multiple committees outside the national campaign committee canalso lead to confusion and unnecessary dispersement of staff.

Decide early in the campaign how to organize the volunteercommittee structure. Volunteers must be able to understand wheretheir committee assignment fits into the overall organizationalstructure of the campaign, and this structure must be both ex-plainable and defensible to alumni and friends. An organizationalstructure that is confusing and overly complex wastes staff time.Maintain a tightly controlled committee structure and avoid creat-ing a plethora of committees and subcommittees.

The following are organizational structures and models thatcommonly exist in capital campaigns. Keep in mind that manycampaigns across the country use bits and pieces of each model,and there does not seem to be any clear, definable committee struc-ture that can be recommended as the paradigm.

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Gift Level Model

This model creates committees according to gift size. Solicita-tions are performed sequentially, with the largest gifts solicitedfirst and then down the ladder until the annual fund level has beenreached and achieved. These committees are based solely on giftsize and do not take into consideration the type of prospect beingsolicited (i.e., corporate, individual, foundation). Four distinctcommittee types are prevalent in this model.

Advance Gifts Committee. Its members participate at the highestgift level, soliciting commitments in the advanced stages of thecampaign at the $250,000 level and above. This committee mustbe in place several monthsor even yearsprior to the publicannouncement of the campaign, and is responsible for seekingthe largest gifts in the campaign from the most generous and in-fluential alumni and friends of the institution. Generally, this com-mittee is composed of a small group of mega-gift benefactors whocan solicit their peers at the highest possible level.

This committee will operate throughout the life of thecampaign.

Leadership Gifts Committee. Its responsibility is to seek gifts fromthe volunteer leadership of the campaign.,This committee shouldsolicit every member of the national campaign committee as wellas other campaign committees, as organized. The leadership giftscommittee can broaden its responsibility to solicit the governingboard of the institution as well as other significant advisory boards.The committee is so named because it is soliciting commitmentsfrom the leadership volunteers of the institution. Campaign lead-ers must show strong support by donating their own personal re-sources, and this committee is charged with the responsibility offerreting out these gifts. This committee's work should be com-pleted prior to the public announcement of the campaign. Devel-opment officers should expect 100 percent participation fromnational campaign committee members.

Major Gifts Committee. This committee is charged with seekinggifts that typically fall below the advance gifts phase, perhaps at thelevel of $50,000 to $100,000 and above, and its work can continuethroughout the life of the campaign. It is possible to merge this

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committee with the advance gifts committee or to redefine its mis-sion and objectives as the campaign moves forward out of the ad-vance gift phase.

Annual Fund Committee. As noted previously, it is important tocontinue the annual fund component of the development pro-gram, even during the life of a capital campaign. Many peoplewho are alumni and friends of the institution do not have the where-withal to make a major capital campaign gift but will continue togive annually to the institution. This committee must not seek pre-emptive gifts from individuals who do have the capacity to makelarger capital commitments over a multiyear period. However,alumni who cannot make major commitments will still want to beinvolved in the campaign and will want to do their part by makingan annual gift. A committee organized to deal with this level ofgiving is important to the overall welfare of the campaign.

Functional Model

Many campaigns are organized around functional modelsrather than gift levels. Again, it is possible to organize a campaignusing both a gift model and a functional model. The functionalmodel, unlike the gift model, concentrates on the origin of thegift. In other words, is an alumnus, friend, corporation, or founda-tion making the commitment? Is it a planned, irrevocable gift oran annual gift? This model is not necessarily concerned with thedollar level of a particular solicitation, but rather with the entitythat is making the commitment. Three committee types are repre-sented in this model.

Corporate and Foundation Gifts Committee. This committee is

charged with the responsibility of soliciting gifts from corporationsand foundations. Although the committee should be concernedwith gift levels and soliciting gifts sequentially, its main concern is

to concentrate on the functional area ofcorporations and founda-tions. Take care to recruit candidates who are knowledgeable aboutcorporate and foundation giving, as well as those who have real orperceived clout in the corporate community. Many times the en-tire national campaign committee serves in the capacity of thecorporate and foundation committee, allowing for maximum in-put from all committee members. Throughout the life of The Cam-

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paign for Penn State, a separate corporate and foundation com-mittee was not used. The belief was that the committee of the whole(The National Campaign Committee) should concentrate on foun-dations and corporations. Staff could then draw from the exper-tise and knowledge of all committee members rather than rely onthe knowledge of a few serving on a separate committee. The ad-vantage of a separate committee is that it allows a group of spe-cially qualified volunteers to concentrate on the corporate andfoundation sphere. Those volunteers should keep in mind thatmuch expertise will exist among other national campaign com-mittee members not serving on this committee.

Individual Gifts Committee. As the name implies, this committeefocuses on individual alumni and friends.

Irrevocable Planned Gifts Committee. It is unusual to find thiscommittee in the organizational structure of a capital campaign.Committee members concentrate on irrevocable gifts such as es-tate notes, charitable remainder trusts, pooled income funds, giftannuities, and other gifts that require special expertise and knowl-edge. There is likely to be great overlap between this committeeand the individual gifts committee, as volunteers have no way ofknowing when an individual may want to use a deferred-givingtechnique. Organizing a separate committee for this purpose mightbe confusing to volunteers in the solicitation process and is notrecommended.

Annual Fund Committee. This group can be organized either froma gift standpoint or functional standpoint. Most institutions havesome form of annual giving program, and this committee wouldseek to keep in place certain annual fund efforts during the life ofthe capital campaign. Keep in mind that preemptive gifts are of-ten made when annual fund committees are in place, and greatcare should be taken to keep these types of gifts to a minimum. Itmay be necessary to form this committee in the final stages of thecampaign and use it as a "cleanup crew," more concerned withnumbers of gifts rather than the size of contributions.

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Geographic Model

Those institutions with large constituencies in multiple loca-tions may want to consider a geographic model that creates volun-teer committees on either a regional or city basis. One advantageof the geographic model is that it uses volunteers to make calls onprospects living in their local areas. Robert L. Krit feels that thisenhances the solicitation process because prospects "are more likely

to respond to contacts made by local solicitors."'

Regional Committees. For those institutions that wish to coverthe entire continental United States, development officers maywant to consider creating multiple geographic regional com-mittees. Nevertheless, regions can be so large that the area is

cumbersome and unmanageable and, thus, impractical whenattempting to solicit major gift prospects. Regional volunteerchairpersons should be within a 200-mile radius of any majorgift solicitation they may be involved in. If the region spreadsout much further, it is not likely that the chairperson will makethe solicitation.

Managing a large network of committees with multiplevolunteers in numerous regions and cities requires a tremen-dous amount of staff time and follow-up and can be a verydifficult process.Major City Committees. Perhaps one compromise to the re-gional approach is to organize geographic volunteer commit-tees in major cities. This strategy would create a volunteerchairperson and committee in each of the major cities acrossthe continental United States. This model, of course, will notcover every prospect, but it will give the campaign a sense ofnational breadth and scope.

Academic Unit Model

Institutions may want to consider creating volunteer commit-tees by academic unit. For large multicampus institutions, thismodel is built around campuses, departments, and schools of study,and volunteers are organized into committees for each of theseacademic units. Thus, the department of engineering has its ownvolunteer campaign committee, as does the department of busi-ness, the department of liberal arts, and so on. For small institu-

8 4


tions, committees can be organized around departments or aca-demic divisions.

While this model has the advantage of bringing together aninstitution's total constituency, it tends to be unwieldy andunman-ageable. The model also tends to break down the campaign intocompeting fiefdoms and does not allow for a cohesive, systematicapproach to fund raising. The campaign becomes a series of mul-tiple campaigns, rather than a unilateral approach that promotesthe entire university toward common objectives.

Communications Committee

The committees discussed thus far are designed to be involvedin the solicitation, cultivation, and research of prospects. It is oftennecessary to form other committees that do not have solicitationand cultivation goals. One such committee is the communicationscommittee.

Many institutions have alumni in the communications field whocan provide expertise, support, and advice to a campaign's com-munications program.

Most campaigns pick and choose from each of these modelsand create an organizational structure that seems right for thatparticular college or university. These models should not be lookedupon as mutually exclusive, and campaigns normally blend all ofthe models in an attempt to form the best possible organizationalstructure.

Role of the Campaign Chairperson

The national campaign chairperson is in a critically importantposition, and an individual should be tapped to fill this role earlyon in the campaign planning. As Robert L. Krit writes, "obviously,[the campaign chair] should be someone who holds a high posi-tion in the business or social life of the community, but this initself is not sufficient. The general chairperson must have the will-ingness and the time to work. A prominent name on a letterheadalone will not attract support."'

Most likely, the individual will be an alumnus of the institu-tion, but this is not absolutely required. It is advisable, however,

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because an institution wants its alumni to identify closely with asuccessful alumnus who is heading up the campaign.

There are many elements that come together to create the ul-timate campaign chairperson. The following are some positionsworth consideration when looking for a candidate.

The Chairperson, President, or Chief Executive Officer of aNationally Respected Company. An individual with these cre-dentials will be immediately recognized by alumni and friendsof the institution and will have instant clout when calling onprospects. The CEO of a major company also has staff avail-able to him or her to assist in a multitude of campaign arrange-ments. Often the CEO can use corporate transportation whencoupled with a business trip.A Retired CEO of a Major Company. Often these individualsmake excellent campaign chairpersons. However, an institu-tion must keep in mind that a CEO's clout is diminished atretirement, and even though the individual may have time togive to the campaign, he or she may have diminished leveragewith major gift prospects.Professionals. Doctors, lawyers, engineers, accountants, moneymanagers, and financial managers all can make good campaignchairpersons provided they are willing to devote the time andeffort to the process. Many professionals simply cannot appro-priate the time necessary to the task.

Some important characteristics to look for when seeking the rightcandidate follow:

Speaking Ability. The chairperson of the campaign should haveextraordinarily good public speaking ability. He or she will becalled upon countless times in large group settings, and for allintents will be the spokesperson for the campaign. The ideal isan individual who is at ease with the microphone as well ascomfortable in responding to tough questions from the newsmedia.Affable and Ingratiating. The campaign chairperson shouldbe an individual who is liked and respected by fellow commit-tee members. The chairperson must be a true leader, some-

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one that other committee members want to follow. The com-mittee chairperson can be a hard driver, but this must be tem-pered with an ingratiating style that is contagious among othercommittee members.

The national campaign chairperson should be a person whostimulates interest and enthusiasm for the entire project. His orher time and effort must be devoted to policy decisions and thecultivation and negotiation of major commitments to the campaign.The chairperson helps to inspire and persuade members of thenational campaign committee to carry out their responsibilitiesthoroughly and promptly.

The national campaign chairperson:

a has executive responsibility for the successful completion ofthe campaign;

o presides at all meetings of the national campaign committeeand the executive committee and is involved in every aspect ofthe planning and implementation of campaign objectives;reports progress to the governing board of the institution aswell as to campaign support groups;endorses and represents the campaign goals and plans and isthe primary spokesperson for the campaign;speaks publicly on the campaign's behalf to the media and tothe institution's various constituencies; andis heavily involved in the leadership phase of the campaign insoliciting major gifts for the effort.

In short, the campaign chairperson must appropriate enor-mous en .g-y and enthusiasm and must dedicate himself or herselfto leading the campaign throughout its life. Penn State was blessedwith the ultimate campaign chairperson in William A. Schreyer,former chairman and CEO of Merrill Lynch. He provided almostdaily leadership and enthusiastic support to the campaign. Hewaspivotal in its success.

Role of the Campaign Vice Chairperson

Use of the title campaign vice chairperson is a way to elevatecertain committee members to special status. Also, it is important

7


to have at least one vice chairperson who can fill in from time totime for the campaign chairperson.

A campaign vice chairperson can serve as chairperson of ma-jor campaign committees. In The Campaign for Penn State, JoePaterno, nationally acclaimed football coach, served as one of threevice chairpersons. His leadership and support was a major reasonfor the campaign's success.

Role of the Campaign Treasurer

This position, if occupied by a volunteer, may be mostly cer-emonial. Treasurer's reports are generally created by campaignstaff, but the campaign treasurer should deliver these reports at allcampaign meetings.

A good campaign treasurer will want to become enmeshed inthe various development office reports that are published regu-larly. The treasurer should monitor these reports, being concernedwith both the dollars raised for the campaign as well as the per-centage of the needs statement that is being funded.

Role of the Governing Board

The role of the governing board depends on the type of insti-tution that is conducting a capital campaign.

The governing board of an independent institution is oftenstaffed with individuals who have the potential to make major phil-anthropic commitments to the institution. In this case, the boardmay be an excellent source of campaign committee members, andthe use of governing board members on a capital campaign com-mittee is advisable. If governing board representatives serve in thiscapacity, it will heighten the awareness, interest, and importanceof the campaign among the governing board members.

In public institutions the governing board is often formedthrough political appointments, and the board members may havelittle or no interest in philanthropic endeavors.

In either case, the governing board ought to show full supportof the fund-raising effort by endorsing it with a board resolutionearly in the public phase of the campaign. Obviously, the presi-dent of the institution will want to keep the governing board fullyapprised of campaign objectives, but at some point in the early

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stages of the campaign, it is advisable to ask the governing boardto formally endorse the effort (see sample endorsement in appen-dix F).

Role of the Development Council/Foundation Board

Many institutions already have volunteer organizations in placeprior to the launching of a capital campaign. These organizationsmay be titled development councils, boards of visitors, develop-ment advisory boards, or perhaps even foundation boards. In largepublic universities, the foundation board may have legal authorityover gift assets to the institution. The foundation board may oper-ate as a development governing board, and the chief executiveofficer of the foundation is often the chief development officer ofthe institution. These are legal entities created by the institutionto serve as conduits for private gifts, and many of them have grownto be powerful organizations that literally guide and direct all as-pects of the development program. The foundation board may,indeed, be the unit that gives authority to a national campaigncommittee, but rarely does this foundation board actually becomethe national committee.

Development councils and boards may, in fact, conflict with anational campaign committee, and care should be taken to be cer-tain that there is a clear delineation of responsibilities among thesevarious constituency units.

An advisory development board or council may coexist with anational campaign committee, or an institution may decide to putthe council on hold during the life of the capital campaign. It willbe difficult for staff to service both entities during a campaign,and a development council that is seeking private gift support forthe institution may simply be superfluous during the years of acapital campaign if another entity has been formed. This will be adifficult choice for an institution but one that must be thought outin advance.

The Faculty/Staff Component

Any good campaign plan, regardless of the size of the institu-tion, will have a faculty/staff component.

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Although some experts claim that faculty/staff giving to a capi-tal campaign increases the likelihood of corporate and founda-tion support to the institution, this has not been proven. Thereare some foundations that are interested in faculty and staff giv-ing, but, in general, this does not seem to be a major concernamong corporations and most foundations.

On the other hand, faculty and staff giving is important to "ig-nite" positive feelings on campus among faculty and student groups.Much positive publicity should surround a faculty/staff campaignto heighten awareness of the capital campaign in general.

A faculty/staff campaign should occur toward the middle ofthe overall campaign and can serve as a catalyst to reinvigorate theeffort. There are a multitude of ways to solicit faculty and staff, butonly two will be dealt with here.

Program-Specific Solicitation

Many institutions choose an all-university need that might ap-peal to a large number of faculty and staff membersrenovationof the library, or the creation of faculty fellowships or student schol-arships. Faculty and staff are then asked to contribute to this needeach year for the life of the campaign. Many times a multiyearpledge is requested, and faculty and staff are solicited by their peersduring a defined period of one to two months.

The disadvantage of this method is that it does not allow fac-ulty and staff to designate their giving toward a particular entity ordiscipline of their choice. In other words, a professor of biologymay want to contribute to the biology department or to the col-lege of his or her choice. Program-specific fund raising does notpromote this kind of activity.

Annual Program Designation

The preferred method of solicitation of faculty and staff, par-ticularly at major universities with multiple campuses and schoolsof study, is to allow faculty and staff to designate their giving on anannual basis to an entity of their choice. A multiyear pledge is stillpossible, or the institution can simply solicit faculty and staff annu-ally throughout the life of the campaign. If annual solicitation is totake place, then major gift prospects among faculty and staff (theremay, in fact, be some) should take place long before the facultyand staff campaign. Faculty and staff campaigns are notorious for

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preemptive gifts from individuals who have the means to contrib-ute a much larger pledge.

The Student Component

The student component can also galvanize a campaign. Al-though resources garnered by such a campaign may be minimal,the public relations value of this effort can be extremely important.

The student campaign is probably best organized around liv-ing units where competition between these units can be attained.An alternative is the use of student clubs and organizations. Stu-dents will likely want to rally around a particular campaign need,and they should be given the opportunity to choose one that willdirectly benefit them.

Because of the matriculation of students, the student campaignshould be held on an annual basis throughout the life of the over-all capital campaign. This will help to alleviate the problems ofstudent continuity but, on the other hand, will create problems oftraining and deployment of student volunteers.

The Local Community Component

This is an opportunity for smaller businesses, associations, andother entities in the region surrounding the institution to partici-pate in the campaign by making a pledge commitment. A commu-nity-based campaign should not run throughout the life of thecapital campaign, but rather have a defined window of solicitationthat might occupy a three- or six-month period of time. Volun-teers are recruited to solicit local businesses and associations forfive-year pledges. This campaign uses a lot of volunteers, as tar-geted businesses and associations are divided among multiple so-licitors. The solicitation effort would begin with training sessionsand division of responsibilities and prospects. Volunteers wouldbe given a definitive period of time in which to make their solicita-tions and then report back at the end of that period.

The community campaign is another way to galvanize supportin the local area. Generally, this campaign gains small contribu-tions, of an annual type.

This campaign should not be inaugurated until the advanceand major gift phases have taken care of all of the major gift op-


portunities in that region. There may, in fact, be some major com-mitments that could be forthcoming, and these prospects shouldhave already been contacted and proposals presented to them longbefore a community campaign is launched. This will help to en-sure that preemptive gifts are not made.

The three efforts described above, the faculty/staff component,the student component, and the local community component, allhave similar objectives. They are targeted toward a specific popu-lace; they have, as one of their objectives, the garnering of supportfrom a large group of contributors at a low level; and, finally, theycan produce extraordinarily favorable publicity for a campaign.

All three of these efforts should be given to the same develop-ment staff. Depending on the size and scope of the annual fundstaff, these three campaigns might fit well into the annual givingprogram during a capital campaign. The process will require stafftime, and some workers may question the validity of the campaignswhen considering the dollar return on staff investment. Neverthe-less, these campaign efforts are important and should be con-sidered.

The Alumni AssociationDuring the Capital Campaign

Most colleges and universities have alumni offices that may beassociated with the development program but are separate anddistinct entities, not necessarily involved with fund raising.

These alumni offices may take the form of separate legal enti-ties with private governing boards. In some smaller independentinstitutions, the alumni office is governed entirely by the institu-tion, and the separate alumni association board serves in an advi-sory capacity to the institution.

Regardless of the type of alumni association at a particularcollege or university, there will be a need to determine how to usean alumni support group, alumni association, or alumni officeduring the capital campaign. The use of the alumni association oralumni office will depend greatly on the organizational structureof that entity. Some suggested uses follow.

Invite the alumni association to pass a resolution in support ofthe capital campaign.

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Invite the alumni association to fund a particular identifiedproject within the capital campaign such as a scholarship, fel-lowship, or even an endowed chair. Support for this projectcould come from the association's own assets. Campaign staffshould be careful that the association does not present a con-flict of solicitation of alumni in an effort to fulfill its own cam-paign commitment.If the alumni entity has clubs in certain geographic areas, theseclubs can serve as excellent vehicles for a public relations pro-gram about the campaign. Ask that the clubs allow campaignvolunteers and staff to speak before club programs, informingthe alumni about the campaign and its objectives.Alumni clubs can also sponsor individual scholarships fromtheir particular geographic regions. Funds for these scholar-ships can be generated through dues or a variety of other tech-niques.

Keeping the alumni association and alumni office involved in cam-paign planning is important in the early stages of the campaign.Potential conflict between the association objectives and the capi-tal campaign should be avoided, and this will only be possiblethrough open communication and coordination.

Athletic Fund Raising During theCapital Campaign

For the most part, athletic fund raising at colleges and univer-sities consists of ticket options and membership in booster cluborganizations. These programs generally do not interfere with theongoing process of development for academic programs and arenot part of the ongoing development program of a college oruniversity.

There are a handful of institutions, however, that have begunmajor gift fund-raising programs in athletics, some of which aredesigned to endow positions within the athletic department, in-cluding athletic team positions such as quarterback, center, guard,tackle, and so on. One institution that has managed this processwith success is the University of Southern California.8

In large complex universities with nationally recognized ath-letic programs, the needs statement of the capital campaign should

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include a component for the athletic department. Athletic fundraising is becoming more and more sophisticated, and institutionswould be wise to build upon alumni interest rather than excludethe program from the capital campaign.

The Capital Campaign and Parent Giving

Many colleges and universities regularly solicit parents for con-tributions to the institution. Often, this is conducted through aninstitution's annual giving program and may include a phone ormail campaign.

During a capital campaign, an institution should not ignorethe potential of major gifts from the parent population. Parentswho have been contributing to the annual fund regularly wouldbe prime prospects for capital gifts at higher levels, and these pros-pects should he treated as any other major gift prospect.

Some institutions have chosen to isolate parents, and to ap-peal to them separately during the capital campaign. While this iscertainly possible from an organizational standpoint, it may sim-ply garner smaller commitments of an annual fund nature. It isprobably best to treat this group as any other university constitu-ency and solicit those parents that might have the potential to makemajor gifts to the capital campaign.

Notes

1. Barbara Snelling, "Recruiting, Training, and Managing Volun-teers," in A. West ley Rowland, ed., Handbook of InstitutionalAdvancement: A Modern Guide to Executive Management, Institu-tional Relations, Fund-Raising, Alumni Relations, Publications, Pe-riodicals, and Enrollment 2nd ed. (San Francisco: Jossey-Bass Inc.,1990), pp. 67-77.

2. Margaret A. Duronio, B.A. Loessin, Effective Fund Raising inHigher Education: Ten Success Stories. (San Francisco: Jossey-BassInc., 1991), p. 214.

3. Snelling, "Recruiting, Training, and Managing Volunteers," inHandbook of Institutional Advancement: A Modern Guide to Execu-tive Management, Institutional Relations, Fund-Raising, AlumniRelations, Publications, Periodicals, and Enrollment 2nd ed., p. 70.

4. Kent E. Dove, Conducting a Successful Capital Campaign: A Com-

9 4


prehensive Guide for Nonprofit Organizations. (San Francisco:Jossey-Bass Inc., 1988), pp. 44, 45.

5. Richard Fox, "Your Partnership with Power People," CASECURRENTS vol. x no. 20: (November/December 1984): 43.

6. Robert L. Krit, The Fund-Raising Handbook. (The United Statesof America: Scott Foresman Professional Books, 1991), p. 13.

7. Krit, The Fund-Raising Handbook, p. 35.8. Gary Smith, 'That Old School Spirit: C. Elerding Endows USC

Football Team's Coach and Punter," in Sports Illustrated vol. 69.(November 28, 1988): 110-114.

FIVE

Solicitation ProcessAsking for the Gift

Soliciting a major gift$100,000 or moreis not a single act,but rather a process. The cultivation and solicitation ofalumni, friends, corporations, foundations, and associations

is a careful step-by-step endeavor that culminates in convincingthe benefactor that his or her support is critical. This can takemonths and even years of planning to bring to fruition. Rarely, ifever, is a major gift made to an institution without careful anddeliberate planning by volunteers and staff. "Instantaneous gifts"that surprise both the development officer and the institution arerare and indeed seldom realized.

Why People Give to Capital Campaigns

Although many considerations can enter the mind of a philan-thropist who is considering a major gift, here are the most common:

Tax Considerations

Ever since Congress enacted income and estate taxes, theAmerican people have been concerned about reducing their taxburden.

As Jon Van Til and Associates points out, the reason the fed-eral government provides tax deductions for philanthropic gifts is.twofold. One, the government feels the services provided by not-

9681


for-profit organizations actually relieve the government of a bur-den. Second, a philanthropic gift does not "enrich" the benefactor.'

While Congress has continued to reduce the tax advantages ofcharitable giving, substantial benefits can still be realized by indi-viduals who itemize deductions of contributions made to qualify-ing organizations.2

The tax advantages of charitable giving differ according to thetypes of gifts made to an institution. The following are some ex-amples of such gifts.

Gifts of Cash. The simplest way to make a gift to a college or uni-versity is to give cash. The date of the gift is the date that the checkis mailed or delivered. Gifts of cash may be deducted up to 50percent of adjusted gross income, with a five-year carryover forany excess.

Gifts of Appreciated Property. If an institution sells long-term prop-ertythat is, property that it has owned for more than one yearthat institution is liable for capital gains tax on any appreciation.However, if an institution makes a gift of this property to a qualify-ing charitable organization, it may avoid any tax liability on thatappreciation. Institutions are also allowed a charitable deductionfor the fair market value of the property that is transferred. (Thecost basis must be used for gifts of property held for one year orless.)

Gifts of long-term, appreciated property are deductible up to30 percent of adjusted gross income, with a five-year carryover forany excess. An individual may elect to have the contribution ofsuch property come under the 50 percent limit by reducing thetotal allowable contribution to the cost basis. Such an election maybe warranted if the total appreciation is small.

Tangible Personal Property. A charitable deduction is allowed fora gift of tangible, personal propertyfor example, artwork, books,stamp collections, and manuscripts. Tax regulations affecting suchgifts held more than one year by the donor depend in part on howthe gift will be used. If a university accepts a painting for its perma-nent collection, for examplea related usethe donor can claima charitable deduction for the fair market value of that property

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Solicitation ProcessAsking for the Gift I 83

and may deduct up to 30 percent of the adjusted gross income inthe year of the gift.

If the gift is put to an unrelated use by the university(e.g., astamp collection given to the college of science to sell for use ofproceeds)the donor's deduction is limited to the cost basis, whichmay be deducted up to 50 percent of adjusted gross income in theyear of the gift.

The five-year carryover may be used, for any excess above theprescribed limits. Strict valuation and reporting requirements ap-ply to gifts of appreciated property, depending upon the type ofproperty given and the charitable deduction claimed.

Bargain Sales. When property is sold to the university for less thanits fair market value, the transaction is called a bargain sale. Thedifference between the fair market value and the sale price is de-ductible as a charitable gift. If the property has a long-term capitalgain, the donor is liable for the portion of gain allocable to theselling price.

Gifts of Life Insurance. Life insurance may provide a current andfuture charitable income tax deduction if the benefactor assignsownership of the policy to the institution. If the policy is paid up,the deduction is the amount of the replacement value, but notmore than the cost basis (usually, the total of all premiums paidless dividends received). If premiums are still being paid, the de-duction will be roughly equal to the cash surrender value. Futurepremium payments also are fully deductible.

Deferred Gifts. To encourage certain individuals to make philan-thropic gifts to higher education and to other qualifying organiza-tions, the federal government allows a number of vehicles formaking deferred gifts. In essence, a donor can take a substantialcharitable deduction now for a gift that the institution will notactually receive until a later dateusually after the death of thedonor and selected survivors. The greatest tax benefits of suchplans are usually reserved for older individuals.

When a benefactor contributes cash, securities, or real prop-erty as deferred gifts, he or she continues receiving income fromthe property for life, and usually the life of at least one other, such

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as a spouse. The property is received by the college or universityafter the death of the last surviving beneficiary.

A person is able to take an income tax deduction in the year ofthe gift (or transfer) for the value of the property, less the value ofthe life interest retained. This is often referred to as the remain-der value. The amount of the deduction is based on Treasury tablesand takes into account the life expectancies of, and expected pay-ments to, all noncharitable beneficiaries.

Deferred-giving instruments include a pooled income fund;charitable gift annuities; charitable remainder trusts, including thecharitable remainder unitrust and charitable remainder annuitytrust; charitable lead trust; and a gift of remainder interest in ahome or farm.

Peer Pressure

The old adage, "People give to people," should be embeddedin the minds of all development officers. The whole concept ofvolunteerism is built around the premise that one's peers are moresuccessful in soliciting a gift from friends and associates than adisassociated third party. A recent survey of 10 American publicand independent research universities involved in capital cam-paigns indicated that volunteers play a critical role in asking forand securing major gifts of six figures and above.'

A CEO of a Fortune 500 company recently turned down therequest of a community fund-raising organization to head its cam-paign. The CEO's basic rationale was that she didn't want to beput on her colleagues' lists after she had asked them to supporther cause. Human nature is such that it is very difficult to turndown the request of a friend and colleague or business associate.This is not to say that the benefactor would support any cause,regardless of its stated purpose. Certainly, the benefactor must rec-ognize and appreciate the importance of the philanthropic en-deavor. But experts in the field have discovered that time and timeagain, it is the volunteer who can exercise a degree of peer pres-sure that, when coupled with a sincere and worthy cause for sup-port, will convince a prospect to contribute. Many times thesuccessful solicitation team consists of a lead volunteer and thepresident or chief executive officer of the institution. Business menand women want to know that their peers and associates are alsosupporting the endeavor with their gifts. As Kent E. Dove writes,

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"There is no substitute for the influence a volunteer can have oncertain prospective donors. In many cases, the staffs' influence isnegligible compared to that of the right volunteer."4

The donor doing what he or she feels is expected can play apart in peer-pressure giving. Many individuals, not wishing to beconsidered a "low-end" donor, will contribute to an endeavor atthe "expected" level. Directors of development are quite often askedthe question, "What are others doing for the campaign and whatdo you expect of me?" Wise development officers use peer pres-sure to their advantage. Be alert for opportunities in matching theright volunteer to the right prospect.

Altruism

Do not assume that there are hidden agendas and motives forgiving money away. Many benefactors genuinely are concernedabout the welfare of a particular institution. Philanthropists oftenare motivated by a sincere desire to help mankind; they are unself-ishly concerned for the welfare of others. Major benefactors tocolleges and universities hope that their efforts will lead to theimprovement and betterment of the institution that they haveadopted. According to Jerold Panas, "Large donors give to heroic,exciting programs rather than needy institutions . .. It is trite, buttrue: an institution must exhibit the audacity and power of an ideawhose time has come."'

Million-dollar-plus gifts are seldom given on the basis of peerpressure and tax avoidance. Most benefactors at these levels see anopportunity to shape and mold the future of higher education.Indeed, whole colleges and universities have been transformedliterally overnight because of the massive infusion of gift dollars.

Immortality

Most people want to be remembered and to make their markon the world. Most of the time this desire takes the form of raisinga healthy family. Children become a reflection of their parentsand continue the family traditions.

The quest for immortality also can play an important role inmajor gift fund raising at colleges and universities. Harvard,Stanford, Rice, Bucknell, and Duke Universities, to name only afew, are all institutions that were named for philanthropists whoinjected resources into the institution. Endowments at colleges and

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universities in the last 20 years have increased steadily as a result ofmajor gifts for professorships, chairs, fellowships, and scholarshipsin perpetuity. Benefactors want to be remembered for this sup-port and are willing to make six- and seven-figure contributions sothat their memory is forever intertwined into the academic fabric.Academic institutions are places of wholesome integrity and pro-vide the perfect setting for a donor to "carve out a piece of immor-tality." Do not mistake a donor's shyness or lack of insistence onnaming opportunities as necessarily genuine. Many benefactorsdo not actively seek publicity. It is the development officer's job toferret out a donor's real thoughts and inner feelings about per-petual naming opportunities. Perhaps it is not an understatementto say that 90 percent of the time benefactors do want to be recog-nized, if only modestly, for what they have done to enhance educa-tion through their giving. A wise director of development will notgive up until he or she is absolutely convinced that the benefactorsincerely wishes anonymity.

Control, Power, and Authority

All seasoned development officers have experienced the prob-lem of benefactors wanting to exercise their authority, power, andcontrol over the institution through their gifts. This desire for in-fluence can range from donors insisting on football tickets on the50-yard line to others demanding that an entire curriculum bechanged. Around March or April, many directors of developmentbecome de facto admissions officers, as benefactors attempt toexercise their influence to get their sons and daughters and thesons and daughters of friends and business associates into theinstitution.

One small, independent, prestigious college in the Midwestcompletely changed the master plan of the institution because ofone donor's insistence. True enough, that one donor pumpedmillions of dollars into the college, but his thoughts on the physi-cal plant were not always logical or practical. Nevertheless, theadministration succumbed to his wishes for fear of angering himand subsequently being excluded from his estate plans. Even to-day, 10 years after the benefactor's death, the college's president ishoused in an old, dilapidated house far removed from the campusadministrative core, for no other reason than the fact that this par-ticular benefactor insisted on it.

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One also might recall the prestigious institution in the East,where the board of trustees voted to make the college coeduca-tional. A major benefactor emerged with a proposal: "If you re-main a women's institution, I will give you $10 million." The collegeto this day does not accept male students.

Many major benefactors will come to feel an ownership of theinstitution and will exercise control, power, and authority over themanagement of the college or university. Their interests may in-deed be beneficent, and they may truthfully be philanthropists inevery sense of the word, but their interest and their financial sup-port extends much further than a true philanthropic spirit. Noworthy institution should compromise its basic integrity for anybenefactor, large or small.

A Desire to Be Included, to Belong, to Be Important

Benefactors of all ages and philanthropic levels generally wantto be a part of a successful enterprise. In the final months of TheCampaign for Penn State, the decisive selling point to donors whohad not committed was that this was their last chance to become apart of a very successful endeavor. Those who had held out to thelast weeks and months of the campaign finally committed to theeffort, realizing that they would be left out and would not be a partof the campaign's grand success.

Many gift programs are designed around gala dinners and otherevents that list benefactors in programs and brochures. The bene-factor is listed by levels according to the degree of support, andthe classifications are as broad as the gifts themselves. But indi-viduals will invariably turn to the page where they expect to belisted to be certain that they have been included at the appropri-ate level. Practically everyone wants to be part of a successful en-deavor. Often, it can be the primary motivator for major giftsupport. Harold J. Seymour stated nearly 30 years ago: "It appearsto be a logical corollaryassuming we all aspire to be sought andto be worthwhile members of worthwhile groupsthat there canhardly be any stronger motivation for supporting a group or causethan simple pride of association." This still holds true today.6

To Change History

Experience has shown that there are a number of wealthy bene-factors who desire to change the course of history. When John D.

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Rockefeller Jr. was approached about the renovation and restora-tion of Colonial Williamsburg, he recognized a distinct opportu-nity to save an important part of the history of this nation.Rockefeller stated many times that all it took was leadership, inge-nuity, and lots of moneyprobably not necessarily in that order.

Andrew Carnegie recognized the importance of building li-braries throughout America. His gifts helped to change the courseof education in this countryas he knew they would. Time andtime again people of privilege, class, and wealth have transformedtheir dreams into reality through philanthropy. This impulse seemsto be on a higher plane than a more ordinary desire to perpetuateone's own memory.

It is true that the age of the Rockefellers, Carnegies, Vanderbilts,and Mellons is long gone. However, philanthropists will continueto build institutions making their vision, idealism, and dreams re-ality through their giving.

Don't Let the Children Have It

Among wealthier benefactors, there seems to be an emergingtrend away from passing great wealth onto one's children. Bene-factors have come to realize that great wealth passed on to chil-dren can many times have a deleterious effect on the lives of theiroffspring. Benefactors claim that children who realize that theywill inherit $20 million or $30 million have no incentive to live aworthy and disciplined life.'

Seventy-five years ago, corporate executives built their wealthmuch differently than today. One had to invent a better product,own the company outright, or discover oil or gas. Today, however,companies in all sectors are paying huge salaries to ensure longev-ity of talent among corporate officers. It is not unusual for thechief executive officer of a Fortune 500 company to make any-where from $2 million to $6 million annually in salary and bo-nuses. Such an executive will not be able to avoid building an estateof $20 million, $30 million, or even $40 million. The decision ofwhat to do with this estate and to whom to go to for counselingabout this important issue will become increasingly more common.The decade of the 1990s and beyond will bring a whole new gen-eration of wealthy individuals who have climbed the corporate lad-der and have built sizable estates from salary and other corporateincentives.

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All of the AboveMost benefactors exhibit a smattering of all of the above char-

acteristics. When isolated, some of the reasons why people giveseem self-centered, egotistical, and not in keeping with the truespirit of the academy. Keep in mind, however, that perhaps noneof the reasons cited above are inherently bad. It is important toremember that in the final analysis, no one is required to make agift to a college or university.

Why People Do Not Give toColleges and Universities

"My Money Is All Tied Up"

During the late 1970s, when inflation was rampant and inter-est rates climbed to incredible heights, prospects across the coun-try claimed that all of their money was sunk into certificates ofdeposit. Similarly, many donors proclaim, that they are on a fixedincome and that their funds are tied up in trusts, certificates ofdeposit, stocks, and bonds that do not allow for readily accessiblecash.

"Where Have You Been All These Years?"

Individuals who graduated from a college or university andthen moved to other regions of the country often lose identitywith their alma mater. There are, of course, hundreds and hun-dreds of philanthropic causes, and alumni develop loyalties to ahost of community causes over a period of years. When the direc-tor of development from their alma mater comes calling, they arelikely to ask, "Where have you been all these years?" Many of thesepeople are already giving to the community symphony, the localUnited Way, and perhaps other colleges and universities in theirgeographic areas. People tend to give where they live, and for manyinstitutions it may be difficult to regain the loyalty of the pros-pects. This is a compelling reason for maintaining close ties withalumni as they climb the ladder of success.

"I Am Leaving My Life's Labor to My Children"

Although many major benefactors wish to avoid leaving a sub-stantial estate to their children, often there is the reverse situation.

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Many prospects do indeed want to pass their life's labor on to theirchildren; they have worked hard to build a large estate and wanttheir children to live a better life than they had in their early years.They want their children to be untroubled by financial worries.

The Depression Syndrome

Time and time again, campaign officials will encounter pros-pects who lived through the years of the Great Depression, whenthey were literally concerned about the next meal on the table.These prospects find it extremely difficult to part with capital, fear-ing that history will repeat itself, and they will not be able to takecare of themselves or their family. This line of thinking is a veryreal phenomenon that is difficult to overcome.

An elderly prospect at a southwestern land-grant universitywascultivated for many years by the president of the institution andthe development staff. But she never made a major gift to the insti-tution and died intestate. At the public hearing where her estatewas distributed, it was learned that at the time of her death, shepossessed more than $13 million in certificates of deposit, bonds,and cash. Her regular passbook checking account had a balanceof more than $210,000.

"You'll Stop Coming To See Me"

Many donors actually enjoy the game of "cat and mouse." Theythrive on the attention of presidents, development officers, deans,and others visiting them on a regular basis. These donors reasonthat if they make a major commitment to an institution, the staffwill stop coming to see them and simply move on to another pros-pect. One development director was never so shocked as when aprospect asked him point blank, "If I go ahead and make a gift toyour institution, will you still come to see me?" Many donors, espe-cially those in advanced years, enjoy visits by university or collegepersonnel, especially the president or other chief officers of theinstitution. They are fearful that once they have signed on thedotted line incentive or reason for continued cultivation will nolonger exist. This argues for a strong donor recognition program,ensuring benefactors that they will not be forgotten even after theircommitment has been secured.

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Philanthropy Has Never Been a Habit

Many people have never enjoyed the true spirit of philanthropyas a part of their daily life. They have never been a member of achurch where giving is an integral part of belonging. They havenever been deeply involved in community causes where they arecalled upon to support community chests, United Ways, or otherphilanthropic endeavors. They have not acquired a habit of givingand do not understand the nature or value of giving. Writing out acheck for an eleemosynary organization is simply not a part oftheir lives and may never be. Generosity is a learned behavior andis not necessarily an inherent attribute.

The Pickle Theory

An old adage states, "If you can get the first pickle out of thejar, the rest will follow with relative ease." The same is true withmany benefactors. The problem is not that they lack the resourcesto make a gift to the institution. Rather, they simply cannot com-prehend the idea of a dollar leaving their hands.

Taxes

Just as tax considerations can motivate a contribution, they alsocan have a deleterious effect on giving. While tax rates have risenand fallen through the years, philanthropy has continued to in-crease steadily. Nevertheless, recent laws related to the alternativeminimum tax have unfavorably influenced gifts by donors in hightax brackets.

Physicians and Attorneys as Benefactors

For many years, directors of development throughout the coun-try have been asked the question, "Why don't physicians give totheir alma maters?" Actually, there does not appear to be a singlestatistical analysis that shows that physicians don't give their "fairshare." However, statistics aside, many development directors feelstrongly that physiciansand for that matter, attorneysdo notmake philanthropic gifts. Here are a few possible reasons why theseprofessionals don't contribute.

1. Physicians and lawyers spend an inordinate amount of timestudying in college to assure that they are admitted to medical

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or law school. The college experience is a serious one for fu-ture physicians and lawyers, and many times this experiencebecomes one of drudgerya time of working, studying, andpraying that they will be good enough to be admitted to a pres-tigious medical or law school. Premedical and prelaw students,therefore, may not remember these years with affection.

2. Many physicians and attorneys exhibit a great loyalty to theirmedical school or law school and not their undergraduate ex-perience. Professional institutions can usurp loyalty to under-graduate institutions because medical or law school experienceis so important, difficult, and totally consuming. Alumni arebonded to those institutions rather than their undergraduateexperience.

3. Many physicians and attorneys believe that they are alreadyfulfilling the philanthropic spirit by helping society throughtheir professional achievements.

4. Common belief has it that physicians are among a community'swealthiest citizens. However, the average debt incurred by ayoung medical school graduate is more than $100,000. Add tothis the indebtedness incurred to set up a practice, and a phy-sician may not feel in the giving mood. For this same reason,physicians may not develop a habit of giving to any charitablecause throughout their lives.

Probably more so than with any other group of people, fundraisers need to keep in mind the axiom of meeting the donor'swishes. When soliciting physicians and attorneys, developmentprofessionals need to pay particular attention to the proper culti-vation of these prospects. Rather than rushing in with a proposal,take the time to learn about the prospect's interests and wishes.Involve the prospect in the life of the institution before asking fora contribution.'

Some of the most generous philanthropists in history have beenphysicians and attorneys. Whole medical schools, law schools, hos-pitals, law libraries, and medical laboratories have been galvanizedbecause of the generosity of physicians and attorneys. At any rate,truth in the statement that "physicians and attorneys don't give" isworth exploring further.

Dispelling the myth that doctors don't give is the $10 millioncampaign for Penn State's Milton S. Hershey Medical Center corn-

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pleted in 1992. During this campaign, more than 92 percent ofthe medical center's faculty made gifts and pledges. The key tosuccessfully securing major gifts from physicians is no differentfrom any other major gift prospect. The development officer mustfirst focus in on the potential donor's interests. As James Brucker,director of development at Penn State's Hershey Medical Center,points out: "We've found that if you treat physicians the way youwould any other major gift prospect, they will respond positively."9

Too often, because it is assumed physicians have exorbitantsums of disposable income, they are asked to support everythingfrom Little League to the local opera. Physicians are people too.Penn State's development staff at Hershey put together a sophisti-cated volunteer structure comprised of physicians who asked theirpeers to support medical-related programs with resounding suc-cess. Development officers ask business people to support the busi-ness school and engineers to support engineering programswhyshould physicians be treated any differently?

Prospect Management

One of the most important aspects of a major capital campaignis prospect management and the evaluation and rating of majorgift prospects. Because most campaigns still validate the tried andtested formula that 90 percent of the gifts come from 10 percentof the donors, it is absolutely vital that a capital campaign securemajor commitments very early in the campaign process. Generallyspeaking, a campaign is doomed to failure if early major commit-ments are not forthcoming. This is true whether the goal is $1million or $100 million.

The Prospect Management System

A successful major gifts effort must include the implementa-tion of a prospect management system. The purpose of this systemis to guide and direct activity with major gift prospects, using vol-unteer involvement, senior officers of the institution, and devel-opment personnel. Colleges and universities of any size shouldimplement a prospect management system for their ongoing de-velopment program, but it is especially vital during a capital cam-paign. When fully implemented, the prospect management systemwill regulate all major gift activity for the institution and will be

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standard operating procedure for major gift fund raising. Kent E.Dove says that:

The prospect management and tracking system helps an organi-zation manage its involvement with major prospects. Once some-one is identified as a prospect, it is imperative that the institutioninvolve that person in its life. Involvement precedes and oftenbegets investment. And investment is the end game in the capi-tal campaign . '°

The following are the basic elements of a prospect manage-ment system, whether the system is a sophisticated, computer-drivenmodel or a more intuitive system that is driven manually:

1. All prospects being pursued for solicitation at the level of$10,000 and above should be assigned to an appropriate de-velopment staff member through the prospect managementsystem. That staff member, often in conjunction with a senioradministrator, should be charged with the responsibility of es-corting his or her prospects through the system.

2. Weekly or monthly prospect management meetings should beheld to discuss additions and/or deletions of prospects to thesystem. Those prospects assigned to a university official who isnot a part of the development operation also should be as-signed to an individual who does attend the prospect manage-ment meetings on a regular basis.

3. Volunteers assigned to a prospect should be so identified bythe prospect management system, but should not supplant orinterfere with the assignment of a staff member to the case. Allprospects should be assigned a staff member.

4. One senior development staff member should have overallresponsibility for managing the prospect management systemand should be the only person authorized to change prospectassignments on a regular basis.

5. Individual staff members assigned to prospects will be identi-fied as the "principal" for those prospects. The principal is re-sponsible for the gift solicitation of that prospect. The principal,in consultation with volunteers and other university or collegeofficials, makes all decisions regarding solicitation, size of thegift request, and the particular appropriate proposal to sug-

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gest to the donor. The principal must be held responsible formoving the solicitation process forward at the appropriate time.

6. Requests for assignments and/or deletions of prospects on theprospect management system should be handled routinely atprospect management meetings. All development personnelwho call assigned prospects should attend the regular pros-pect management meetings.

7. A summary of all additions and/or deletions of prospectsshould be circulated to development personnel on a regularbasis.

8. A permanent record of all current assignments on the pros-pect management system should be available for immediatereview by development personnel. In a more sophisticated pro-gram, the information should be available for on-line inquiryon the computer database.

9. Every active prospect appearing on the prospect managementsystem should be assigned a principal.

10. Many times, especially in large universities, other staff mem-bers will have identifiable relationships with a prospect. Forinstance, the development officer in the college of the liberalarts and his or her counterpart in the library might have com-peting interests in the same prospect. A prospect managementsystem should allow for these competing interests by designat-ing a "secondary assignment" confirming an additional linkwith the prospect. This second position affirms another inter-est in the prospect by an additional academic unit and keepsthat interest active and before all development staff.

The principal assigned to a prospect has wide-ranging re-sponsibilities for moving the prospect forward for eventualsolicitation. These responsibilities must include deciding all"next steps" in cultivating and soliciting a prospect. Every pros-pect should have a next step. It may be as simple as a targetdate when the principal will initially contact the prospect, or itmay pinpoint subsequent visitation of the prospect, the datewhen a letter should be sent to that prospect, or a date whenthe president of the institution should be involved with theprospect.

Generally speaking, each new prospect assigned to a prin-cipal should be seen within a reasonable period of time. Pros-

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pects who are not visited initially by the principal assigned tothem should be reassigned to others.

11. Every prospect in the system should be visited by the staff prin-cipal at least once every six months. If a prospect is not impor-tant enough to be visited at least every six months, then thatprospect may not have bona fide gift potential and thus doesnot belong on the prospect management system.

12. A principal may wish to employ a team approach to a prospectand include multiple staff members and/or volunteers. Theteam approach should be encouraged, depending upon theprospect.

13. In consultation with other senior development officials, theprincipal assigned to a prospect should be responsible for de-fining the status and rating of that prospect. The principalshould make the final decision on the appropriate size of thegift request.

14. Prospects should never be visited or solicited without the per-mission and advance notice of the principal assigned to theprospect. This will eliminate duplicate solicitation and themultiple visitation of prospects by competing college or uni-versity personnel.

Evaluation and Rating of Prospects

Development officers are constantly fretting over the size ofthe ask for a particular prospect. They obviously want to ask forthe maximum gift possible, one that would require a prospect to"stretch" his or her giving. As mentioned previously, major leadgifts are critical to any capital campaign, and benefactors must bechallenged in their giving if multimillion dollar goals are to bemet.

An old adage in the development business states: "You can neverask for too much." That adage is tired and worn and should bediscarded. Benefactors can, indeed, be insulted, confused, andupset by major asks that are far out of proportion to their ability togive. Benefactors can be embarrassed if the campaign ask is out oftheir league and they simply do not have the resources to comeforward at the level that is expected of them.

This is not to say that benefactors should be made to feel "com-fortable" about their giving. One multimillion dollar donor washeard to comment after contributing $10 million to his alma mater

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that one should judge a person "not by how much they give totheir alma mater, but by how much they have left!"

Very few benefactors will ever give away their last penny, but itis a development officer's challenge to encourage a benefactor tostretch his or her giving and make a contribution that does notmerely reflect excess income but instead demonstrates theprospect's commitment to the institution. In short, a gift shouldbe affordable but perhaps somewhat financially "painful." How doesone achieve this delicate balance? The following methods are usedfrequently to determine the size of a gift request.

Professional Prospect Research. Many colleges and universitieswith sophisticated development programs have large research staffsthat pore over multiple reports, proxy statements, Dun andBradstreet reports, financial data, and other information to deter-mine the wealth of particular prospects. Regardless of the size ofthe development operation, a research component should be es-tablished during a capital campaign. Even the two- to four-mem-ber shop would be wise to implement a research component in itsoperation. As Bobbie S. Strand says: "The goal of [prospect re-search] is to support the evaluation of individuals or organizationsas prospective donors and to aid in the development of cultivationand solicitation strategies.""

Researching prospective donors involves gathering, organiz-ing, and synthesizing information that is then analyzed, screened,and presented in a clear and concise format. In addition, identifi-cation of new prospects is a continuing responsibility of this office,which uses a number of resources and techniques to accomplishthese ends. High-quality research reports depend upon a team-oriented, well-trained staff working with other development per-sonnel. Because research offices rely extensively on their alumnidevelopment databases and on their hard-copy files to provide in-formation on a prospect's past ties and contacts with the institu-tion and his or her giving to the university, proper maintenance ofboth is of utmost importance to research offices. Research initiateschanges in the database as new information surfaces in the courseof the development staffs work. Hard-copy files hold correspon-dence, research reports, reports of contact by development offic-ers, news clippings, past proposals, and gift guidelines. Theimportance of good, solid reports of contact by development per-

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son nel cannot be overemphasized. After every visit to a potentialbenefactor, a development officer should write a briefing givingfirsthand observations, information that may not be available else-where.

Development research offices maintain a library of referencematerials and various tracking notebooks to follow donor philan-thropic activity, research contracts with corporations, faculty pro-posals to corporations or foundations, and other pertinentinformation. Research offices also have access to university andpublic libraries and work closely with librarians to solve researchproblems. Newspaper libraries vary in their policy of providinginformation or references to articles over the telephone, but canbe important sources of information on articles appearing in news-papers that have not yet been indexed.

County tax offices also vary in their policies of providing infor-mation over the telephone. While tax assessments on pieces ofproperty are matters of public record, some tax offices requirerequests in writing. On occasion, wills can be helpful to the re-searcher and are on file at most county courthouses. The greatestboon to prospect research has been access to various files throughcommercial databases. Many sophisticated research offices sub-scribe to a number of commercial databases. Stock held by com-pany insiders and any holdings they have that constitute 5 percentholdings in public companies are public information and are avail-able from online commercial databases. Indices referencing bio-graphical information are also available. Newspaper and magazinearticles on prospects can be retrieved through a simple databasesearch.

Generally, in a sophisticated research office, reports are for-matted to include only information helpful to the cultivation ef-fort. In larger research offices, reports are typed by clerical staff,proofed by the researcher, and then read by the research managerbefore being sent to the appropriate development officer for usein the gift solicitation. The reports are archived on the system andretrieved for updating. All reports should be treated with the high-est degree of confidentiality and should not contain any offensivematerial. According to Strand:

One of the major problems in major donor research is that mostfiles contain too much of the wrong kind of information and too

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few vital data. Quality of information, rather than quantity, shouldalways be the emphasis. Prospect research should deal with theseissues:

1. What is this prospect's financial giving capacity?2. How interested in this institution, or similar institutions, is

the prospect?3. What particular project important to the institution is the

prospect most likely to care about?4. Who can influence the prospect to give to this institution for

this purpose at this time?'2

Volunteer Information. Perhaps the best and most reliable way todetermine the size of a gift request is by discussing a particularprospect with an informed volunteer. Often, the volunteer canprovide sensitive and confidential information about a particularprospect and the ability of that prospect to make a major commit-ment to a college or university.

Electronic Screening. Several private companies have electronic-screening tools available and many of these have been customizedfor fund raising. Electronic screening has become very popular inthe development business. Many electronic-screening servicesmaintain databases of geodemographic data supplemented by

other indications of wealth, including holding insider stock inpublic companies. These companies receive a magnetic tape froman institution that then seeks a match with those in its database. Ifa potential benefactor lives in a city block that is considered to be"upscale," that prospect will be pulled up on the database. Onewould draw the conclusion that because the individual lives in anaffluent, high-rent district, he or she would be capable of makinga philanthropic gift to his or her alma mater. Obviously, electronicscreening is only one method of determining major gift prospects.Any electronic-screening data should be rigorously reviewed andtested for accuracy.

Periodicals. Research offices scan periodicals for announcementsof gifts to other institutions. Most sophisticated research officessubscribe to a variety of periodicals in an attempt to locate pros-pect information.

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Group Screening. Group screening is a traditional prospect evalu-ation and rating system that is used by a number of colleges anduniversities. The traditional group screening involves several vol-unteers reviewing a list that is provided in advance by the develop-ment staff. The list is not usually an entire alumni listing, but ratherhas been refined to a particular universe of prospects. These groupscreenings can be open discussions or silent screenings. Depend-ing upon the number of prospects to be reviewed and the antici-pated giving level, various methodologies can be used. For example,when reviewing a relatively small group of high potential prospects,an initial silent screening by the group, followed by an open dis-cussion, can be very useful. Many times during the silent part ofthe screening, an individual will rate a prospect much higher ormuch lower than the rest of the group. Often, whoever rated theprospect out of line from the rest of the group may have somespecial information about that potential benefactor.

A new twist now exists in group screening. A prospect's nameis given to the group and the group is asked about the size of giftthat this prospect may make to the university. The volunteers"punch in" their responses on a keyboard, and the data are imme-diately displayed on a screen for all to see. By using this methodol-ogy, the raters have immediate statistical information and can spotany abnormality such as very high or very low ratings. Each ratingcan be attributed back to a specific volunteer in the room.

A relatively small number of institutions have become moreformal in group ratings and have created national programs toconduct group sessions throughout the country. Stanford Univer-sity, Washington University, and the College of William and Maryare three institutions that have experimented with group ratingprograms with some success.

Recently Penn State launched its Leadership Evaluation andAssessment Program (LEAP) in an attempt to identify a new waveof major gift prospects throughout the United States. LEAP meet-ings are being conducted in 50 cities with large concentrations ofPenn State alumni. During these sessions, specially selected alumniare asked to screen lists of potential major benefactors and ratewhat their giving capacity might be in another campaign. Theselists are then put into a database and manipulated along with datafrom other screening sessions. The result is a source of informa-tion based on personal knowledge of alumni who work and reside

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in the same geographic area as the new prospects that have beenrated. Through the LEAP project, Penn State hopes to identify asmany as 25,000 new potential benefactors at the $10,000 level andabove. All of this is being done in anticipation of a second capitalcampaign.

The Process of Asking for a Gift

Volunteer leaders are the key to success in any major capitalcampaign. While professional staff are important to the campaigneffort, they are no substitute for peers soliciting peers. Success ingetting big gifts often has as much to do with the volunteers' influ-ence as the organizational quality or characteristics of any particu-lar program or cause.

A successful gift campaign has a number of requirements,among them: the right volunteer leadership, an effective organi-zational structure, specific goals and objectives for each campaigncommittee, a compelling case for support, a favorable economicenvironment, and strong staff support.

Several factors in the campaign process are cited as most cru-cial in determining a successful effort.'3

The Importance of Major Gifts. Ninety percent of the dollars con-tributed to any program with a major gift focus is raised from fewerthan 10 percent of the donors." The importance of major giftscannot be overemphasized. Those commitments must be madeearly on for the campaign to be truly successful.

People Give to People. A compelling case for financial support isimportant, but people do indeed give to people. Major donors aremore likely to give at higher levels when they are invited to do soby their peers. Although staff members are very important in mov-ing the solicitation process forward, many times only a peer canconvince a particular donor to give in a very significant manner.

Sequential Giving. The largest gifts should be solicited first. Suc-cess at this level sets the pace for those with smaller giving capabili-ties and unquestionably establishes the level of giving for the restof the campaign. Because the number of any institution's majorprospects is limited, great effort must be expended to persuadethese initial major prospects to give in proportion to their capacity

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before any broader-based efforts can begin. Every campaign shouldmove sequentially, allowing the successful solicitation of the larg-est gift to influence the level of the next-largest gift, and so on.The successful achievement of any campaign is often dictated byhow well this early stage of solicitation proceeds. W.R. Brossmanstates that:

A $10 thousand project of the women's auxiliary to improve cam-pus landscaping needs a big gift approach just as much as does amultimillion dollar campaign for Harvard. And the same goesfor fund raising for athletics, for cooperative efforts such as stateassociation groups of the independent liberal arts colleges, forannual giving programs, for estate planning activities, for memo-rial projects, and all the rest. Without a nucleus of major gifts,the enterprise will fail.'5

Formal Solicitations. Major gifts almost never result from letters,phone calls, or casual requests. If a prospect feels that the cam-paign is not worth more than a letter or a phone call from a volun-teer or staff member, he or she is likely to decide that it is notworth the gift. It is absolutely vital, then, that key prospects receivespecific written proposals followed by, or in conjunction with, face-to-face meetings. When possible, solicitations should be conductedon a two-on-one basis, as this type, of team effort has proven tomost effective. Typically the team might include the president or asenior officer of the university, or perhaps selected faculty or amember of the development staff. Generally, the team should in-clude a volunteer leader who is acquainted with the prospect, oranother person well known by the prospect. It is almost always agood idea to solicit major gifts in teams. Team members not onlyreinforce one another but also are better prepared to answer ques-tions and cover any points that may arise during a visit. There arethree effective teams.

1. Volunteer and chief executive officer2. Volunteer and staff member3. Chief executive officer and staff member

The teams to be used depend on the circumstances. It is hard torank the combinations by effectiveness, though the first combina-tion often represents the most leverage and the third the least.

/17


The chief executive officer may serve as staff in the first and sec-ond combinations and really acts like or fulfills the role of a volun-teer, leverage being all-important.'6

Development personnel should provide cohesive, well-writtenproposals, tailored to the prospect, for presentation during thesevisits.

Cultivation: A Process. Major gifts frequently require months oreven years of cultivation before being realized. In fact, John Glier,of Grenzebach Glier and Associates, says the average gift of $100,000or more requires a cultivation period of 18 to 36 months.

Campaign leaders are in a position to conduct informal culti-vation activities by entertaining at their homes, hosting small lun-cheons, or talking with likely prospects on the golf course. Suchparticipation by volunteers in these endeavors is crucial to the suc-cess of a campaign.

Cultivation is part of the early leadership phase of the capitalcampaign, although a volunteer's first visit to a prospective donorprobably will not be a solicitation call. Most major gifts are madeby individuals who are significantly aware and vitally involved inthe activities of the college or university. Cultivation is the processthat brings prospects closer to the institution.

Avoid Preemptive Gifts. Allowing prospects to establish their owngift levels without the benefit of focused cultivation and formalsolicitation almost always produces gifts that most campaign lead-ers view as less-than-total commitment. To ensure the success ofthe capital campaign, solicitation teams must be able to proposethe right pr,ogram opportunity at the right level of giving for eachcampaign prospect. A campaign must try to avoid allowing a do-nor to make a gift and/or pledge before the actual proposal isformally made.

Volunteer Giving. A volunteer's confidence in the validity and ur-gency of the campaign will be a major factor in persuading othersto make a significant gift. The best evidence of this confidence is avolunteer's own generous participation at the highest possible level.

Know the Prospect. Volunteers should work with the developmentstaff to know as much as possible about a prospect before the visit.

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In all cases, a prospect should not be visited by a volunteer untilthe volunteer has enough background to ask for the right gift forthe most appropriate program. Volunteers should look for ways inwhich the prospect's investment can allow for greater participa-tion in the program or in the institution as a whole.

Know the Needs. A volunteer must be ready to answer questionsabout both the institution and the campaign needs. Volunteersshould not be expected to know every minor detail about the needsin every division of the college or university. However, a generalunderstanding of the main goals of the campaign and what thefunds will be used for is extremely important when soliciting aprospect.

Personal SolicitationA Key. Major gifts require personal contact.Phone conversations should only be used to discuss the campaignin general terms. A volunteer should find a time and place whenthe prospect can give full attention to the presentation about thecampaign.

Solicit the Best Prospects First. This will give volunteers more con-fidence for calling on other prospects.

Make the Case. The volunteer should first explain the campaigngoals and explore areas of interest. The volunteer should talk aboutwhy the institution is worth the prospect's time and resources. Dis-cussion allows a prospect to develop enthusiasm and talk aboutpersonal interests and inclinations. First and foremost, a volun-teer should be enthusiastic about his or her own interest and com-mitment the campaign.

Ask for the Gift. Volunteers should encourage the prospect to makea "stretch" commitment, and should show the prospect the tableof required gifts for campaign success. A volunteer should discussdesignated gifts, pointing out memorial or tribute opportunitiesto (subtly) indicate the level of gift the institution is hoping toreceive from the prospect. It is not unusual for a volunteer to tellthe prospect at this point how much he or she is planning to giveto the campaign. This is particularly helpful when the level of gift

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support from the volunteer matches or exceeds what is being askedof the prospect.

In a face-to-face meeting, perhaps the most difficult part of thesolicitation is looking the individual in the eye and asking for anactual amount. It is also the most crucial. From the moment avolunteer and staff member make the call, the prospect is waitingto hear the dollar amount that will be requested. Asking for thegift is the key element of the solicitation. It cannot be left hangingin some vague, misunderstood format. The amount must be statedclearly and definitively, and the prospect must realize that a solici-tation for a specific dollar amount has taken place.

Knowing the right way to ask for a gift is something that onlywill come with practice and experience. The most seasoned devel-opment officers who have asked for a gift, literally hundreds oftimes, can still have difficulty when it comes to requesting a dollaramount. A volunteeror for that matter, a staff membershouldnot feel inadequate simply because he or she finds this extremelyimportant part of the solicitation difficult. The bottom line is thatit is difficult, but essential.

The gift amount should always be decided upon in advanceand supported with a specific written proposal provided by thestaff. Prospects will appreciate being asked to consider a targetedprogram or programs, and a specific dollar amount. The proposalshould be tailored to a prospect's personal interests and needs asbest as these qualities are known at the time.

A volunteer and staff member should always keep the discus-sion focused and seek resolution. Initially negative responses arecommon, and a volunteer should not back away from the solicita-tion if the prospect does not respond positively.

Generally speaking, a lower gift should be negotiated only whenthe target asked is clearly beyond the reach of a particular pros-pect. Development officers have numerous stories of prospects whohave rejected initial proposals only to make much larger gifts aftera lengthy period of cultivation.

Explore Ways to Give. Volunteers should remind the prospect thatgifts can be made with a variety of assets, including stocks, securi-ties, real estate, insurance, and bequests, as well as cash. If an out-right gift is not possible, volunteers should suggest the deferred


gift and remember to emphasize tax advantages, even if tax incen-tives do not seem to be the primary motivation for making a con-tribution.

Use Recognition Strategy. Gift naming opportunities provide animportant impetus, particularly at major gift levels.

Seek Pledges. Volunteers should encourage donors to give the mostgenerous gift possible by extending payments over a period of years.-

Volunteers should not be reluctant to leave pledge forms inthe hands of prospects who do not make a commitment and signthe pledge immediately. It is important to keep in mind that whenasked for a major commitment, the prospect will probably needtime to consider the proposal and will not make a split-seconddecision. Even though some professionals may argue against it,one should allow prospects to take pledge forms and proposalshome, discuss the proposal with family members, and think aboutthe proposed gift's affect on the institution. Big gifts to collegesand universities are generally made only after much deliberationand thought, and it is wise to allow the prospect to have enoughtime for proper reflection.

A gift pledge commitment should be made in writing usingthe official pledge commitment form. This is required so that thegift can be officially counted toward the campaign goal and berecognized by campaign leadership. Prospects also recognize thatthe pledge is a serious investment in the institution and under-stand the need for adequate documentation.

Don't Push. Major gifts cannot be hurried. As gifts get larger, thetime required to reach a decision is generally longer. The pros-pect may want to consult with his or her family or personal staffand possibly a financial or legal advisor before deciding upon thesize and method of giving. It is important to always encourage suchconsultation.

This is not to suggest that a development officer or volunteershould not continue to follow up with the prospect in a meaning-ful way; perhaps set a date in the future to discuss the pledge. Butit is crucial to be sensitive to the prospect and allow adequate timefor a genuinely reflective decision.

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Be Positive. Volunteers should not become discouraged. The jobmay be a difficult one, but the benefits to the institution are im-mense. Nothing is more important to the institution than the cam-paign. Development officers must remember that they are helpingto change the institution for the better: they are positioning it forthe future.

Leave a Proposal. The written proposal seems to be a stumblingblock for many development officers. Many development direc-tors have failed because of their inability to put the gift requestdown in writing. For some reason, the campaign proposal lendsitself to procrastination and, many times, is the last item that is"pulled together" prior to the solicitation. Development officerswill barter, beg, and plead so that "they" don't have to write theproposal.

Proposal writing for prospects should be neither complex nordifficult. The proposal is simply a statement in writing of the mostcritical reasons why the campaign must be successful. A shorterproposal, rather than longer, is preferable, and the author advisesa proposal that is no longer than two pages. This should be ad-equate space to delineate the needs of the campaign and the spe-cific gift proposal and amount for the individual prospect. Both ofthe $10 million gifts received in The Campaign for Penn Statecame about from a formal, personal solicitation with a deliveredproposal of no more than two pages. One's words in a proposal donot need to be eternal to be immortal. Besides, benefactors donot want to take time to read lengthy proposals that go on intermi-nably with lofty language but relatively little substance.

Proposals should always state an amount and a pledge term sothat benefactors are clearly aware of the expectation of the institu-tion. Some experts will claim that stating this amount early in theproposal is better, although anecdotal evidence suggests that thisis not necessarily an important factor provided that the gift askamount is clearly visible in the letter, preferably within the two-page format.

Many development officers will ask what kind of format willget a better reception, a proposal format or letter format. Theletter format is a much warmer communication to the prospect.Proposals seem much too clinical and technical for individual bene-factors.

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It should be pointed out that many corporate foundations, andfoundations in general, will require formal proposals of consider-able length. Each foundation is generally different, and their guide-lines should be consulted prior to proposal writing. However, forindividual benefactors a two-page letter format is recommended.

Common Mistakes in Major Gift Solicitations

Thinking That Someone Else Will Raise the Major Gifts. Big giftsdon't just happen; they require considerable preparation by staffand volunteers. One volunteer can't think that another will takecare of the big gifts. It is the responsibility of the developmentprofessional or volunteer to find gift support for the institution. Itis imperative to think creatively and positively.

Not Understanding That the Best Major Gift Prospects Are PastDonors. In any size campaign past contributors are the best sourcefor future support. Don't make the mistake of thinking that a per-son who has given generously has exhausted all of his or her assets.Generally speaking, wealthy people regenerate wealth and are con-stantly adding to their portfolio and building capital. Don't allowa wealthy, generous benefactor to feel left out simply because heor she hasn't been "asked enough." These individuals are thecampaign's best prospects, and, generally speaking, they shouldbe asked first in any major campaign.

Not Asking for a Gift. This omission is the bane of all fund raising.The president accompanies a volunteer to ask for a major commit-ment from a prospect, but somehow the proposal is not quite puton the table. Either the president is or the volunteer is shy or acombination of both. Not asking for the gift will absolutely destroya campaign. Nothing can hinder a campaign more than failure toask. No magic is requiredjust a strong will, intestinal fortitude,and the ability to look a person in the eye and ask. Just ask.

Not Asking for a Large Enough Gift. Generally speaking, donorsare not forthcoming with major commitments unless they are asked.Million-dollar gifts flow to an institution only after a staff memberor volunteer has specifically requested that support. Don't expectthe large gifts to walk in the door without cultivation and a pre-cise, detailed presentation.

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Failing to Cultivate the Prospect Adequately Before Solicitation.Major gifts take timemore than first anticipated. A volunteer andstaff member should not be too quick to place a proposal before aprospect. Be certain that the prospect is ready to receive it. Gener-ally speaking, when a prospect is not ready, he or she will not makea gift or will make a much smaller gift than that requested.

Not Knowing Enough About the Prospect's Personal and ProgramInterests. Prospects make major gifts to areas where they have apersonal and programmatic interest. An individual who, for ex-ample, is closely aligned with liberal arts should be encouraged togive to liberal arts. If a prospect never had any interest in anotherprogram and shows no inclination to give to anything other thanliberal arts, why try to switch his or her loyalty? Ask donors to givewhere they are most comfortable giving and don't try to changetheir allegiances to other projects that do not hold special interest.

Not Fully Understanding the Case for Support. Volunteers mustunderstand why they are seeking major gift support. Prospectsreadily gauge the interest of a volunteer and can tell during thesolicitation if that volunteer is committed to the program. Anoncommitted, uninterested volunteer only hinders the solicita-tion effort. Volunteers must be wedded to the case for support,and must understand the needs of the institution and why the in-stitution is seeking philanthropic support.

Not Being Fully Prepared with Alternatives for a Particular Pros-pect. Even though staff members have done a magnificent job try-ing to determine the interest areas of a prospect and have spentmany hours putting together the proper gift solicitation, it maystill be unappealing to a particular benefactor. Volunteers and staffmust be ready to suggest support of alternative projects and pro-grams to a potential benefactor and must be able to talk creativelyduring the solicitation. Don't be caught off guard when a poten-tial benefactor says, "I am not really interested in that project. Whatelse do you have to offer?"

Failing to Talk About the Benefits of Giving. Many benefits willaccrue to an individual who decides to make a commitment to hisor her college or university. A volunteer should be prepared totalk about both the tangible and the intangible benefits.

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Failing to Involve the Right People in the Solicitation. Staff mem-bers should match volunteers with prospects. This should not be asimple method of pairing off geographic volunteers with prospectsin their region. For major gift prospects, much discussion shouldtake place as to who should be the appropriate person to make thepresentation.

A particular case involved a major presentation by the presi-dent of the university, soliciting a Pittsburgh-based foundation for$500,000 for an academic program in one of Penn State's colleges.As it turned out, the entire solicitation was spent talking aboutPenn State football and Joe Paterno. Two weeks later, Penn Statereceived a $1 million gift for the Paterno Libraries Endowment. Itmight be said this approach used the wrong volunteerbut withgratifying results.

Relying Too Heavily on Development Staff to Provide the Initia-tive. Staff members are critical to the success of the campaign.Their importance cannot be overstated. They will help to lead andguide the effort and serve as the catalyst to make the campaignhappen.

However, relying too heavily on development staff also can leada campaign to failure. Staff are important, but volunteers are moreimportant when soliciting major gifts. Volunteers must not rely onstaff to tell them everything to do. Volunteers must be active intheir own right and should not wait for the campaign staff to lo-cate sources of support. On the other hand, volunteers should notpursue their own agenda without staff input. Certainly their activi-ties must be coordinated by the development personnel. Volun-teers should be encouraged to think creatively and cannot expectthat their every movement will be orchestrated by developmentpersonnel.

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Notes


2. Barbara Brittingham, T. Pezzullo, "The Campus Green: FundRaising in Higher Education," in ASHE-ERIC Higher EducationReport Number 1. (Washington, DC: School of Education andHuman Development, The George Washington University,1990), p. 40.

3. G. David Gearhart, "A Study of the Relationship Between thePreparation for and Initiation of a Capital Fund-Raising Cam-paign in a Major Research University and Two Types of Orga-nizational Structure." p. 173, Ed.D.. diss., University of Arkansas,Fayetteville, Arkansas. 1989.


5. Jerold Panas, Megagtfts: Who Gives Them, Who Gets Them. (Chi-cago: Pluribus Press, 1984), p. 35.

6. Harold J. Seymour, Designs for Fund-Raising: Principles, Patterns,Techniques. (New York: McGraw Hill, 1966), p. 6.

7. Richard Kirkland Jr., "Should You Leave It All to the Children?"in Fortune vol. 114: (September 29, 1986): 18-26.

8. Holly Hall, "Getting Doctors to Give," in The Chronicle of Phi-lanthropy vol. iii no. 11: (March 26, 1991): 18-21.

9. Doug Stanfield, "Doctors Don't Give," in Fund Raising Manage-ment: (April 1993): 23-27, 44.


11. Bobbie J. Strand, "Building a Donor Information Base," in A.W. Rowland, ed., Handbook of Institutional Advancement: A Mod-ern Guide to Effective Management, Institutional Relations, Fund-Raising, Alumni Administration, Government Relations, Publications,Periodicals, and Enrollment Management (San Francisco: Jossey-Bass Inc., 1986), p. 337.

12. Strand, "Building a Donor Information Base," in Handbook ofInstitutional Advancement: A Modern Guide to Effective Manage-ment, Institutional Relations, Fund-Raising, Alumni Administration,

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Government Relations, Publications, Periodicals, and EnrollmentManagement, pp. 339-340.

13. The Campaign for Penn State: Guide for Volunteers. (University Park,Pennsylvania: The Pennsylvania State University, 1987), p. 1.[Brochure].


15. W. R. Brossman, "The Central Importance of Large Gifts," inFrancis C. Pray, ed., Handbook for Educational Fund Raising: AGuide to Successful Principles and Practices for Colleges, Universities,and Schools (San Francisco: Jossey-Bass Inc., 1981), p. 70.

16. Thomas E. Broce, Fund Raising: The Guide to Raising Money fromPrivate Sources 2nd ed. (Norman, OK: University of OklahomaPress, 1979), p. 226.

0'7

S I X

Campaign Particulars

The Six Phases

/t is helpful to look at a capital campaign as a series of phases.These phases often overlap, and sometimes it is difficult todetermine when one phase has been completed and another

one has begun. The phases are interconnecting and interwoven.It is possible, however, to define each phase in general terms.

Six phases in a capital campaign can be identified.

1. Quiet Planning Phase. Depending on the breadth and scopeof a campaign as well as on its sophistication and complexity,this phase could, in fact, last for several years. Some institu-tions begin planning a capital campaign two, three, or fouryears prior to ever soliciting the first gift. The preceding chap-ters have laid out the various elements necessary in planning acapital campaign, and it may take at least this long to put theseelements into place. An institution that has been planning acapital campaign for several years should not be concernedabout the tremendous time commitment in the planning pro-cess unless the campaign has, in fact, been discussed in a pub-lic forum. It is difficult to hold the attention of importantvolunteers if the planning phase is announced in public. Thisphase should be internal, involving primarily institutional staff,and should be a confidential preparation outlining the vari-ous elements from an internal standpoint. Some institutions

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begin this phase of a campaign literally weeks or months afterjust having completed a major capital campaign.

2. Advance Gift Phase. During this phase, which may last one totwo years, the campaign becomes public to a small group ofbenefactors and volunteers, while the major campaign com-mittee is recruited, and the lead gifts are solicited. This phaseis characterized by major gift activity with the institution's mostimportant and generous benefactors. The success of the ad-vance gift phase often determines the overall success of thecampaign.

3. Public Phase. This phase is characterized by the public an-nouncement to the news media of the capital campaign andthe determination and announcement of the goal. The publicphase of the campaign can stretch anywhere from two to fouryears, depending on the overall length of the capital campaign.Major gift activity will continue throughout this phase, and thegarnering of gifts of at least $100,000 and above will be of par-ticular importance during this phase.

During the public phase, it is likely (and desirable) thatmedia attention will focus on the campaign, and various vol-unteer donor events are initiated. These events could includea kickoff for the campaign, announcing the goal as well as theamount of funds raised in the advance gift phase. It is duringthe public phase that the faculty/staff campaign, student cam-paign, and, perhaps, community campaign could be initiated.This adds public attention to the effort.

4. Plateau Phase. At some point during the public phase of thecampaign, the campaign will likely enter into a "plateau"phasea time when volunteers and benefactors tire of the cam-paign and are ready for its completion. In a five-year campaign,this phase generally occurs three or four years into the cam-paign. Volunteers are fatigued and ready to get the campaignbehind them. Not every campaign experiences a plateau phase,but if it should occur, an institution must find ways to reinvigo-rate those involved in the effort.

The establishment of a new (higher) goal and new (longer)timetable can help to breathe new life into the campaign.

5. Final Phase. The final phase of the campaign is built aroundthe achievement of the goal and pushing toward successfulcompletion. Goal attainment, in itself, energizes the commit-

12'9

Campaign Particulars I 115

tee, and many benefactors who have not already made com-mitments will come forward in an effort to help put the cam-paign "over the top." At this time previous benefactors oftenincrease their commitments in hopes of achieving the goal.

During the final phase, donor-recognition events shouldtake place to honor major benefactors for their philanthropy.An institution may be interested in a final campaign event thatbrings together the various constituencies of the campaign,honoring them and their multiple achievements.

The final phase should be an important time for the insti-tution to assess what the campaign has meant in terms of addi-tional resources for academic programs.

6. Post-Campaign Phase. Immediately following the end of thecampaign, campaign staff should assess the success of the cam-paign and create a post-campaign plan to continue philan-thropic support. Even though the campaign has concluded,major gift fund raising must remain as an important part ofthe development program. Hopefully, the institution will havereached a level of gift support that can be sustained, even inthe off years of the capital campaign. The capital campaignalso should be expected to boost the level of annual giving.The post-campaign phase is a time to sharpen the focus of thedevelopment program and to decide where resources can bestbe applied to continue to attract the highest level of gift sup-port possible.

An example of a campaign timetable characterizing the sixcomponents is contained in appendix G.

Percent of Goal in HandPrior to Public Announcement

A capital campaign should never be publicly announced with-out a percentage of the goal already committed.'

Some professionals will argue that at least 50 percent of goalshould be committed prior to public announcement. For capitalcampaigns above $100 million, the achievement of 50 percent maynot be possible. A more practical aim is to achieve at least one-third of the goal in pledges and commitments prior to announc-ing the capital campaign publicly. One-third of the goal in hand is

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a respectable figure that shows forward momentum as well as theability of the college or university to attract major commitments.Having attracted $5 million in a $15 million capital campaign or$100 million in a $300 million capital campaign is a notable achieve-ment and will be viewed by the public as substantial progress to-ward the goal.

While some may argue that the larger the amount in handprior to public announcement the better, this can send a signal tothe public that the achievement of the goal is too easy or too simpleand that the goal has not been set high enough. This may, in fact,cause donors to lower their sights in terms of their own campaigngiving. It is never wise to give benefactors and volunteers the feel-ing that the achievement of the goal will not require a stretch com-mitment on their part. Do not make the process look too easy.

Cost/Budget of the Capital Campaign

The worn out phrase, "You have to spend money to makemoney," can certainly be applied in the context of a capital cam-paign. Capital campaigns are doomed to failure when senior ad-ministrators fail to recognize that the campaign will, in fact, costmoney. It is simply not possible to run the effort without an infu-sion of resources over and above the normal operating budget ofa development office.

Studies have revealed that the cost to raise a dollar can rangewidely from a low of 5 cents to a high of 90 cents.

As Margaret Duronio and B.A. Loessin state: "It is difficult tocompare fund-raising costs and budgets across institutions."2 Theaverage for all philanthropic organizations, not just colleges anduniversities, is about 20 percent. Jon Van Til and Associates pointout that "the Council of Better Business Bureaus (CBBB) statesthat fund-raising expenses that exceed 35 percent are excessive."3

The author knows of no definitive studies that earmark capitalcampaign fund-raising costs at a particular percentage. For sometime, principals at Grenzebach Glier and Associates have main-tained that fund-raising costs in a capital campaign should be ap-proximately 10 percent of the funds raised. Therefore, if a campaignis raising $100 million, it will probably cost in the neighborhoodof $10 million to raise those funds. This figure seems to have somecredibility. In fact, the American Association of Fund Raising Coun-

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sels (AAFRC) recommends that capital campaign costs stay between5 and 10 cents per dollar raised.4

Perhaps a better way to look at fund-raising costs for a capitalcampaign is to review a list of those items that will require an ex-traordinary appropriation of funds. The following is a partial list:

1. Travel Budgets. Expect as much as a 50 percent increase dur-ing the first three years of the campaign.

2. Staff Costs. Staffing costs inevitably increase, and an institu-tion should be ready to add staff in a number of key areas.

3. Donor Relations Costs. Donor relations and donor-recogni-tion costs climb markedly, particularly during the final stagesof the campaign.

4. Publications Costs. Campaign publications, including the cam-paign brochure and periodic public reports, require additionalresources for the development office.

5. Volunteer Cultivation Costs. The institution must appropriateadditional funds for the cultivation of volunteers. Numerousvolunteer meetings must take place throughout the life of thecampaign.

6. Administrative Services Costs. An institution may need to up-grade its records system in anticipation of a capital campaign,and this will require additional resources.

7. Video Costs. An institution may want to create a campaignvideo; production costs can be extremely expensive.

8. Costs for Kickoff and Concluding Events. A campaign kickoffevent and a campaign conclusion are not only time-consum-ing from a staff standpoint, but also quite costly. An institutionshould appropriate funds as needed for these two importantevents.

9. Professional Fees. Depending on the expertise of the existingstaff, there may be an increase in planned gifts to the institutionduring the capital campaign. Attorneys' fees and other fundsfor expert advice in planned giving might be required. If cam-paign counsel is employed, these costs must be factored in.

Information Systems

When "gearing up" for a campaign, one of the frequently over-looked areas is the information system. It is one of the most impor-

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tant aspects to the success of a major fund-raising effort, not tomention ongoing development operation. Conversely, in the ab-sence of a fully functional system that is in tune with the needs ofthe staff, the efforts made toward dollar goals and the cultivationof prospects can be quickly erased. Mistakes seems to compoundthemselves and what was a simple problem one day becomes acatastrophe the next, drawing development officers away from thecentral purpose of raising money: A $1,000 gift is acknowledged as$100; the bio field will not accommodate a last name with morethan 10 letters; there is not a clear list of everyone who gave $1,000and up last year and live in a defined geographic region; and onand on. This leads staff members to distrust the information thatis in the system and to attempt to find other ways to meet informa-tion needs. Mini-info systems are built by area, department, or insome cases, by individual. Again, time is taken away from the pur-pose at hand. The problem continues to compound itself.

A successful fund-raising operation cannot operate without auser-friendly, flexible, reliable, management information system.With that in mind, three critical aspects of a good system shouldbe reviewed: application software, data management, and resources.

Many software programs are literally homegrown and built overyears, adding new fields when needed. However, today's marketoffers a variety of sophisticated alumni development programs thatmeet the needs of all types of institutions. They are user-friendly,efficient, and provide room for growth.

Most systems come as a package, with elements that an institu-tion pays for but does not necessarily need, or enhancements thatare not available with the package and cost extra. Nor are thesesystems inexpensive. When considering the cost of building a per-sonal system, it is at least worth the time to investigate the possi-bilities.

Application software programs typically address four areas ofinformation: biographical, gifts, pledges, and memberships.

Biographical information has become much more than nameand address. Today's fund raisers and alumni professionals needto be aware of family relationships, interests, business information,volunteer activities, preferred mailing address, preferred mailingname, nicknames, and so on. The system needs to be capable ofgenerating personalized mail with preferred salutations in a quick,

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efficient manner. The marketplace has grown accustomed to thiskind of product.

Likewise, gift and pledge information is complex, and a sys-tem must handle these without mistakes. Gifts that are split be-tween husband and wife, matching gifts, pledge payments, pledgereminder, gift receiptsall have to be integrated into a system andautomated as much as possible, but still provide the users withflexibility to meet the individual needs of the institution.

Perhaps the best indicator of a good system is the ease withwhich information can be entered and retrieved. The human ele-ment is the most critical when measuring the integrity of the data-base. Therefore, a system that simplifies the process of data entrynot only saves time, but reduces the chance of error. A good sys-tem will not only provide the flexibility and breadth to track infor-mation in many different ways, but also keep the data-entry stepsto a minimum.

Although the mark of a good information system is its capacityto store information in a variety of ways, the true test is its capabil-ity to provide that information in a usable format. Today's advance-ment professional requires more information in more ways in lesstime. The combination of high-speed networks, sophisticated soft-ware programs, and advanced technology have reduced turnaroundtimes by significant amounts. Statistical data (counts, lists, or la-bels) that required two to three dayssometimes even a weektoformulate and retrieve can now be done by "on-line select proce-dures" in just hours.

Perhaps the most important tools to the fund-raising profes-sional, especially during a campaign, are the reports generated bythe system. Accurate, timely reportsdaily, weekly, and monthlyprovide critical information and play an important role in the de-cision-making process. The questions then become: Whatinformation is needed? In what format? How often? All of thesequestions need to be thoroughly addressed before entering a cam-paign and assessing whether the current system has the capabili-ties required.

Appendix H lists several companies that specialize in provid-ing alumni/development data systems.

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The Gift Range Chart

Early in campaign planning, it is important to create what iscommonly referred to as "the gift range chart," which is designedto show the number of gifts that are required at certain levels inorder to reach the goal. In other words, how many gifts of $1 mil-lion will be needed to achieve a goal of $100 million? How manygifts of $500,000 will be required? After determining the numberof gifts that the campaign would like to achieve in any one cat-egory, it is then important to quantify the number of prospectsneeded to achieve the number of actual gifts at that level on thegift range chart. If an institution has listed five $1 million gifts asnecessary to reach the overall goal, then there will be a correspond-ing number of prospects that should be contacted for gifts at thatlevel. Appendix I contains gift range charts for campaigns of $10million and $100 million.

The number of prospects that are needed for the achievementof a gift in a particular category is somewhat subjective. Kent E.Dove states that, "it is a generally accepted rule of thumb that aninstitution must have at least four legitimate gift prospects for eachmajor gift required."5 The Campaign for Penn State had a pro-posal funding rate of approximately 30 percent. This percentageis probably high compared to other institutions, some of whichachieve less than a 10 percent proposal funding rate.

Therefore, using the 25 percent success rate as proposed byDove, one would draw the conclusion that in order to achieve 10$1 million gifts in a capital campaign, it will be necessary to have aminimum of 40 to 50 viable prospects who have the potential tocontribute at this level. This is a somewhat liberal estimate, andthis author maintains that an institution would be more likely torequire 70 to 100 viable prospects to secure the 10 $1 million giftsreferenced above.

A gift range chart should not be created in a vacuum. It shouldbe tied to an institution's prospect management system, and thenumber of legitimate prospects an institution has will have a sig-nificant impact when creating the gift range chart.

Obviously, development officials must "labor in reality" whencreating the chart. The author is reminded of a New Yorkercartoonwhere several people were sitting around a table planning a ben-efit concert. They were trying to determine what the price of the

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tickets should be in order to achieve $50,000. One participant ex-claimed, "I've got a good idea, let's sell one ticket for $50,000!"

If the gift range chart is tied to the prospect management sys-tem, development officers may be surprised at how closely giftswill fall along the lines of the gift range chart. A carefully craftedgift range chart helps an institution track its progress towardachievement of the goal.

The Term of the Capital Campaign

The length of a capital campaign normally spans from three toseven years, and it is recommended that no campaign have a lengthlonger than seven years. (Chapter 8 will discuss this further.) Therationale for this is that capital campaigns can sustain neither them-selves nor the enthusiasm of volunteers much longer than sevenyears. Those institutions that launch capital campaigns with a ten-year term or more are probably not actually conducting capitalcampaigns, but rather labeling their annual ongoing support struc-ture a capital campaign.

Most institutions appear to have a campaign length of five years.'Five years is a reasonable period in which to galvanize volunteersupport and keep the volunteer enthusiasm from waning. The termof a campaign will depend a great deal on the size and complexityof the institution. Larger, more diverse institutions with multipleconstituencies may need to expand the number of years past fivein order to complete all of the major gift solicitations required.Institutions with smaller alumni constituencies may be able to com-plete the major gift process in a much shorter period of time.

Bearing on the length of a capital campaign is, of course, thecontinuity and longevity of staff and key volunteers. It is importantthat the president of the institution remain in office throughoutthe life of the capital campaign. Changing presidents in the middleof a capital campaign can be most destructive to the overall pro-cess. Likewise, losing senior development staff can cause an insti-tution to lose momentum in its capital campaign. Stability of staffmust remain a priority throughout the life of the campaign.

Similarly, key volunteers must sign on fora definitive length oftime, and it is important that the key volunteers not only maintaininterest but be officially connected to the campaign throughout

13$


its term. The longer a campaign exists, the more difficult the con-tinuity of staff and volunteers will be.

Campaign Cash Flow

A capital campaign does not necessarily create significantchanges in the institution's operating cash flow in the short term.Most commitments to a capital campaign are pledged on amultiyear basis. It is difficult to explain to many groups, particu-larly faculty, that a $100 million capital campaign will not produce$100 million in hand by the final year of the campaign. The insti-tution will receive numerous planned gifts that may pay income toa benefactor, but will have to wait a period of years to receive theactual financial benefits of the gift.

Campaign volunteers and staff should educate internal andexternal constituents about this issue early on in the campaign.

The Pledge Form

Chapter 8 discusses the importance of the pledge in more de-tail. The pledge form is an important element in the campaign,and its design should be a campaign priority.

Three types of pledge forms should be designed. The first is alegally binding document and should be used whenever possible(see appendix J).

The second pledge form can be used as a statement of intentby a benefactor and is not necessarily binding on the benefactoror his or her estate. Many donors are reluctant to sign a documentthat will bind their estate should they not fulfill their pledge dur-ing their lifetime (see appendix K).

Finally, officers should create a third pledge form when giftsof cash or securities, rather than planned gifts, are required (seeappendix L).

Frequency Between Capital Campaigns

As previously stated, many institutions begin planning for asecond capital campaign almost immediately after the first hasconcluded. It gives a sense, internally, that the institution is con-stantly in campaign mode. It is important, however, that the quietand public phases of a campaign be separated by a period of years

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from a second effort. At least five years should interrupt two ma-jor, comprehensive campaigns. The two most important consider-ations are volunteer and donor fatigue.

Immediately following an intense solicitation effort, it may bedifficult to stir up volunteer support. Some "breathing room" willbe necessary before launching another effort. Perhaps more im-portant than this, however, is donor fatigue. The institution mustgive donors the opportunity to "catch up" prior to launching an-other major effort. Donors will be paying multiple-year campaignpledges, and it is wise to consider the pledge period of major bene-factors carefully.

On the other hand, development officials should not wait solong that major prospects and benefactors have developed newand additional loyalties, pledging substantial amounts to compet-ing priorities rather than reconsidering support to the college oruniversity. Wealthy individuals continue the production of wealthand build capital throughout their lives, and it is likely that theywill be making major commitments to some other entity. Institu-tions should not allow major prospects to develop other interestsand philanthropies by unnecessarily delaying a second campaign.

Notes


2. Margaret A. Duronio, B.A. Loessin, Effective Fund Raising inHigher Education: Ten Success Stories. (San Francisco: Jossey-BassInc., 1991), p. 5.


4. James M. Greenfield, "Fund-Raising Costs and Credibility: Whatthe Public Needs to Know," in NSFRE Journal: (Autumn 1988).


6. Brakeley, John Price Jones, Inc., "Capital Campaigns 1991-92,"in Capital Campaign Report. (Stamford, CT: Brakeley John PriceJones, Inc., Spring 1992).

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SEVEN

Public Relationsfor the Campaign

Fund-raising and public relations experts must find ways tocollaborate when organizing a public relations plan for acapital campaign. According to Roger L. Williams, a major

trend began in the late 1980s. "Public relations and development,once the surly partners of a shotgun marriage, have learned to getalong famously. The main reason: the many capital campaigns thatcolleges and universities have launched."'

Williams surveyed 12 colleges and universities that were in-volved in capital campaigns and discovered that both fund-raisingand public relations officials recognized the importance of thepublic relations function in their campaigns.

The organizational structure of an institution's public relationscomponent will heavily influence the communications plan of acapital campaign. The communications function must be closelyaligned with (or report to) the public relations personnel, pro-vided the institutional advancement program is integrated underone senior officer. The development communications arm of thecampaign can and should continue to report to the public rela-tions experts under this integrated model. It is important, how:ever, that with any organizational model the public relations anddevelopment personnel work in tandem to create the best publicrelations plan possible for the campaign.

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Institutional and Campaign Identity

A strong visual identity system for an institution and its cam-paign is often overlooked but can be an extremely important pub-lic relations initiative.

An institutional and campaign identity helps eliminate confu-sion in the minds of target audiences, and unifies and strengthensan institution and all its component parts. It projects an image ofexcellence and cohesiveness that is important in attracting majorgift support. Not only will a campaign need a definitive name, butit will also need a "look" and graphic identity that will help to en-sure that the institution's many diverse parts have visual consis-tency. An identity system allows an institution to communicate, atevery opportunity, a sense of stature, history, and quality in keep-ing with its stated commitment to greater levels of excellence. RogerWilliams, who masterminded Penn State's identity system beforethe launch of its comprehensive capital campaign in 1985, describesan identity as:

[a] comprehensive positioning exercise. . . It involves anorganization's basic competencies, its market products, competi-tive differentiation, and strategic goals. In the sharply competi-tive climate of the 80s, an identity program can be a superbmanagement tool. It can help to refine or even drive aninstitution's strategic plan. More mythically, it can serve as a self-fulfilling prophecy.'

Robert Topor, when addressing the issue of institutional im-age, states:

Your first objective is to create and communicate some positivecommon image ideas appropriate to all audiences. Another ob-jective is to create and communicate discreet image aspects todiscreet target audiences. Think of your institutional image as acentral theme with variations on that theme for various audiences.The common aspects are most critical. They will be the ones thatposition your institution in the marketplacethat is, these as-pects will determine the perceived relationship of your institu-tion to its competitors."

A campaign must present a clear, focused, and consistent com-munications program. It must allow the institution to communi-

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Public Relations for the Campaign I 127

cate its cohesiveness and must give the public a sense of directionand leadership.

Williams provides five suggestions for those institutions con-sidering an identity program in anticipation of a capital campaign.These are presented in figure 7.1.

The Campaign Public Relations PlanRobert L. Krit offers the following on public relations: "Good

public relations involves the development and maintenance of good

Figure 7.1 Five Suggestions for Developing an IdentityProgram

1. Select an external firm with expertise to do the research and cre-ate the graphic identity system. Do not try to do this through aninternal committee or turn it into a student logo contest. Too muchis at stake not to have the very best objective expertise at yourdisposal.

2. Realize that such a program cannot succeed without yourpresident's support.

3. Reconcile yourself to the fact that identity programs take timeand energy even at small institutions. As organizational changeenthusiasts can well imagine, alterations to an institution's aes-thetic symbols do not come easily; everybody from the janitor tothe president of the faculty senate brings subjective baggage tothe introduction of a new identity. It is a highly visible project,and everyone will have an opinion.

4. Realize, too, that even with top-level administrative support, youstill have to "sell" the new identity to the rest of your academiccommunity. An identity program finds greater acceptance in thecorporate world, where the CEO manages its adoption, and onlythose employees seeking new careers challenge its validity. Inacademe, faculty and staff are not so easily impressed, and theyoften resist mandates, especially when they don't like what isbeing mandated. Therefore, much work and persuasion are in-volved in meeting with individuals and groups to explain howthe new identity will better serve their unit's special needs.

5. Finally, tie the identity to the substantive directions in which theinstitution is moving. Identity is not fluff, puffery, or icing on thecake. It can be an invaluable management tool in finding andcommunicating the unique essence and aspirations of an institu-tionin that process attracting resources and support essential tothe institution's future.4

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relations with whatever segment of the public you may wish to reach,including those in need of your services as well as those on whomyou must depend for support."' An institution should devise a publicrelations plan as part of its overall campaign planning. The planshould have definite goals and objectives and should lay out a pre-cisely targeted audience. Audiences important to the campaigninclude alumni and friends of the institution as well as internalconstituentsfaculty, staff, and students.

The campaign plan should build momentum with precampaignpublicity objectives, with the hope of escalating to a crescendo inanticipation of announcing the campaign goal and public phase.

Roger Williams says that public relations can contribute toeducational fund raising on three basic levels:

1. Contextual, creating visibility for the institution and enhanc-ing its reputation with a variety of constituencies so that fundraising can succeed

2. Strategic, helping to resolve the what and why issues of educa-tional fund raising

3. Tactical, determining how to fulfill goals and objectives withspecific events and activities'

The purpose of the campaign public relations plan is to createexpectations of success among key constituencies. The plan shouldbe designed to keep the various publics informed about campaignprogress and to create a mood of forward movement and success.

A public relations plan can fall into four distinct phases.

Phase I: Precampaign Publicity

Create excitement about the campaign and the upcoming an-nouncement of the goal and objectives. This phase should be deli-cately handled so as not to abridge the confidentiality of the goaland campaign announcement prematurely. The announcementof the campaign chairperson and the lead campaign committeewill be important components of this phase.

Phase II: Announcement of the Campaign

Plan a formal event to announce the goal of the campaign andits various components. Rely on the public relations component

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of the university to implement the campaign announcement andpublic phase.

Phase Ill: Informational Phase

During this phase, publicity centers on announcing major gifts.This will create a sense of momentum and will help to energizethe campaign's key constituents.

Care should always be taken to announce gifts of benefactorsin the medium that will give maximum visibility to the gift. Specialattention should be given to the benefactor's wishes. This may in-clude releasing the information to hometown newspapers, specialprofessional journals, and other outlets that will publicize the giftin the most appropriate way.

Staff, in consultation with volunteers, should decide early onin campaign planning the level of campaign gifts that should bepublicized. This will depend a great deal on the level of gifts thatare expected in the campaign, but development officers shouldbe sensitive, and only publicize those gifts that will help to serve asa multiplier for other contributions. Publicizing smaller contribu-tions will only set the tone of the campaign at that level and willnot help to position the campaign as a major gift effort. A poten-tial benefactor who reads about a gift from an individual who hadthe capability of making a much larger contribution may be apt toreduce his or her pledge accordingly. At Penn State, gift publicityis generally not offered below the $50,000 level. Naturally, flexibil-ity must be maintained as there certainly are some situations wheregifts below $50,000 may require publicity. But generally speaking,announcing major commitments early in the campaign will helpto set the level of support to achieve the goal.

Phase IV: Concluding Campaign and Post-Campaign Phase

Building toward the successful conclusion of the campaign andattainment of the goal in the immediate post-campaign environ-ment is the last phase of the campaign public relations plan. Thisphase focuses on the success of the campaign and points to theachievements of the effort toward strengthening academic pro-grams. An institution's constituency is interested in what happensimmediately following the successful conclusion of the campaign,and a carefully structured public information plan to inform vol-unteers and other constituents is essential.

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Internal University PublicationsKeep the internal institutional community apprised of cam-

paign planning and direction. Often, faculty and staff who are notdirectly related to the campaign can lose track of the campaign'sprogress without a carefully structured informational network. Useinternal university publications, such as the student newspaper, anadministrative informational newspaper, and a presidential letterto faculty and staff, to keep internal constituencies "wired in"throughout the life of the campaign. Even though these venueswill not necessarily produce gift income for the campaign, thisstep will alleviate possible future criticism about campaign progressfrom internal constituents.

External Publications

A good campaign public relations plan should include the useof all appropriate external publications. This may include alumnimagazines, messages from the office of the president, newsletters,and other publications designed to inform the external constitu-ents of the college or university.

Consider creating new external publications to keep top vol-unteers informed on a regular basis. One of these publicationsmight be a confidential campaign document that includes men-tion of major gifts that have not been announced publicly. Thisgives volunteers a sense of being campaign insiders and draws theminto the process.

Colleges and universities use alumni magazines regularly inspreading the word to alumni and friends about campaign progress.

Establishing a special campaign publication to be mailed tobenefactors above a certain giving level can be worthwhile. Dur-ing The Campaign for Penn State, "Campaign News" was mailedquarterly to 30,000 individuals who gave $250 and above in thecurrent or preceding fund years. This kept the key external phil-anthropic constituency of the university informed of both cam-paign priorities and the progress of the campaign.

The Lead Campaign Brochure

The use of a lead campaign brochure is not absolutely vital tothe success of the campaign. Some institutions have preferred not

.1 if /41


to use a lead brochure, seeing it as a waste of institutional funds.They argue that the promotional piece looks good but is seldomread and that most copies end up on a shelf in the basement of thedevelopment office.

These arguments notwithstanding, lead brochures are impor-tant and serve to validate the campaign. If the campaign devisesthe lead brochure correctly, it can be used successfully in majorgift requests; it should accompany gift proposals routinely.

The following are the key components of a lead campaignbrochure.

1. Opening Statement by the President of the Institution. Launch-ing a campaign is a very significant event in the life of a collegeor university. A statement by the president of the institutionnoting the importance of the campaign is a fundamental ele-ment in the brochure. A photograph of the president shouldaccompany the statement.

2. Statement by the Chairperson of the Campaign. The chairper-son of the campaign must be highly visible throughout theeffort. A photograph and statement in the lead brochure helpidentify the campaign with the chairperson.

3. Profile of the Chief Academic Officer. It may be important toprofile the chief academic officer of an institution in the leadbrochure. This has several benefits, but most importantly itstamps the effort as an academic project and speaks volumesto internal constituents (such as the faculty) about the impor-tance of the academic enterprise. Faculty and students mustsee the campaign as an academic enterprise. Profiling chiefacademic officers will lead one to the conclusion that the insti-tution is seeking funds for the most critical academic priorities.

4. Profiles of Benefactors and Faculty. It may also be importantin the lead brochure to profile prominent faculty as well asmajor gift benefactors. Select those with whom others can iden-tify, and quote these individuals about their personal as well asinstitutional views of the importance of the campaign. Theseprofiles can be effective fund-raising "testimonials."

5. Profiles of Members of the Board of Trustees or GoverningBoard. As stated previously, the governing board is criticallyimportant to any major enterprise, including a capital cam-paign. The governing board, particularly at an independent

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institution, must "buy into" the process and be integrally in-volved in every aspect. Profiling certain board members in thelead brochure will draw the board as a whole into the cam-paign and closely align it with campaign priorities.

6. Information About the Campaign Goal. Mention the campaigngoal frequently throughout the brochure and break it downinto general categories that detail how gifts will be used. A giftrange chart should also be included in the brochure to givebenefactors a sense of duty and responsibility in making majorstretch gifts to the institution.

7. Most campaigns' needs are divided into at least six broad cat-egories, including the following:a. GO for Endowment. This category is generally divided into

faculty chairs, professorships, fellowships, and researchfunds.

b. Student Scholarships. Most capital campaigns include theneed for more scholarship funds. Often this category isincluded along with endowed faculty positions under anendowment category. It may, however, be important tobreak out the scholarship section from endowed funds forfaculty, as this may be more understandable for potentialgift prospects.

c. New Academic Initiatives. A goal for some campaigns is tofund important new programs in academic units. Theseare not necessarily endowed programs but new initiativesthat have been identified by the academic officers as high-est priorities.

d. Instituticmwide Objectives. Many institutions break down theircampaign goals by departments or schools of study. Thereare some projects that have an impact on the total institu-tion, such as the library. It may be important to itemizethis area as a separate goal category in order to underscoreits importance to the institution as a whole.

e. Bricks and Mortar. Most campaigns set out to raise funds forconstruction of new buildings and renovation of existingones.

f. Annual Giving. Comprehensive capital campaignsgenerallyinclude the total gift support received by an institutionduring the period of the capital campaign. This will thennecessitate a final category for annual gifts that are of an

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unrestricted, undesignated nature that flow to the institu-tion during the life of the campaign. List a figure in thelead brochure that corresponds to money normally raisedduring the annual giving program and which does not fallinto another funding category.

8. Specific Ways to Give to the Capital Campaign. The lead bro-chure should list specific broad categories with appropriatelanguage so that benefactors can choose the area they wish tobenefit. Consider the following:a. Named Chairs. A minimum endowment amount should be

listed in the text of the brochure. The highest honor thatcan be bestowed on a faculty member, the endowed chair,provides an eminent scholar with a salary as well as addi-tional sums to fund graduate assistant salaries, secretarialhelp, course development, and traveling expenses. An en-dowed chair is key in attracting and retaining the acknowl-edged leaders in their fieldsthe stars of the academicworld.

b. Named Professorships. The minimum endowment requiredshould be listed in the text. An endowed professorship al-lows the institution to attract and keep top-flight faculty bysupplementing departmental support. Funds are used toprovide salary supplements, graduate assistant stipends,secretarial help, and travel expenses. As with named chairs,this kind of support can influence the caliber of faculty aninstitution is able to recruit as well as the quality of teach-ing and instruction a department is able to provide.

c. Endowed Fellowships. Minimum endowment should be listedin the text. Faculty fellowships allow the institution to pro-vide extra funds to outstanding faculty members. Thesefunds help those who receive them to further their work inteaching, research, and public service. Endowment incomegoes toward paying graduate assistants, secretarial support,and travel expenses.

d. Graduate Fellowships. Minimum endowment should belisted in the lead brochure. To further its mission as a re-search and teaching institution, a college or university mustrecruit the brightest graduate students and award them inkeeping with their respective needs, responsibilities, andstages of academic development.

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e. Undergraduate Scholarships. Minimum endowment shouldbe listed in text. A college or university scholarship pro-gram has a dual purpose: to attract the most promisingstudents to the institution and to make a college educationavailable to every qualified student, regardless of theindividual's background or financial position. Endowedscholarship funds provide the necessary support.

f. Buildings, Roads, and Plazas. Where buildings are con-structed using private funds, whole buildings or parts ofbuildings may be named for benefactors. Roads and plazascan also be named. Each instance is individually reviewedin accordance with established institutional policy. Pro-posed names must be approved by the president of the in-stitution and its governing board.

9. Gift Acceptance. A campaign brochure should also explain theprocess used to make a major commitment to the institution.The brochure should also contain a section on outright giftsand current tax laws relating thereto, including gifts ofappre-ciated securities and real estate.

A section on deferred gifts and information on how theywork should also be contained in the text of the brochure.Include only general information on gift mechanisms in thelead brochure. More technical information should be reservedfor other publications that the institution might use in its on-going development program.

10. Pledge Form. The lead brochure should include a pocket orfold-out in the back of the brochure where a pledge form canbe placed. The pledge form ought to be kept separate fromthe body of the brochure to make it easier to use.

11. Telephone Number and Address. Finally, a lead brochureshould always include a telephone number and address wherean interested benefactor can get in touch with campaign offi-cials. Too often, lead campaign brochures do not provide thiscritical and important information.

Concluding Campaign Brochure

Many institutions use a concluding brochure as a retrospectiveon the success of the campaign. This publication serves as an his-torical document and outlines the various successes in the cam-

18


paign, providing information on major gift support, success at at-taining the goal, and information on lead volunteers.

Capital campaigns can change institutions dramatically, andthe final campaign brochure provides a vehicle to herald theprogress of the institution and the many academic programs af-fected by a successful campaign. It is also important to list all ofthe volunteers who were involved in the campaign.

Advertising PlanSome institutions carry the message of a capital campaign to

their key constituents through advertising. This is an often-ne-glected facet of a campaign as college and university personnelmay view advertising as "nonacademic and inappropriate to anacademic enterprise." However, advertising is being used increas-ingly, particularly in announcing major events and campaignprogress.

Penn State's $352 million campaign used advertising in twoinstances. When the original goal was announced, a full-page ad-vertisement was carried in the local newspaper the day after thecampaign party announcing the goal. Space was also purchased tolist the national campaign committee. At the conclusion of thecampaign, a second advertisement was placed in the local news-paper touting the success of the campaign and what it meant toacademic programs. The advertisements gave a sense of accom-plishment to the immediate university community. Modified ver-sions of these advertisements later ran in internal publications.

College and university advertisements are becoming muchmore commonplace and more accepted as an important means ofcommunication.

Speakers Bureau

One of the most effective ways to spread the word about a cam-paign is through a speakers bureau. The speakers bureau puts topuniversity officials and volunteers in front of service clubs, alumniclubs, and constituent groups primarily in close geographic prox-imity to the institution. These staff members and volunteers speakabout the campaign's and direction.

Local service clubs and other groups constantly request speak-

1 4 9


ers for their organizations, and an institution will be one step aheadif it can design a speakers bureau that can accommodate theserequests easily and effectively.

The Role of Video in Public Relations

The use of video in capital campaigns has become much moreprevalent. While the cost of producing videos is formidable, vid-eos do serve the useful purpose of exciting and informing key con-stituents.

Videos particularly can be used in the public relations plan tocommunicate the purpose of the campaign to alumni clubs andservice groups, faculty meetings, and student organizations. Thesevideos should be relatively short (7 to 10 minutes), uplifting, andexciting. Consider at least three possible uses of video for cam-paign public relations purposes:

1. The Campaign Launch Video. This video informs viewers ofthe basic purposes of the campaign and also addresses the mis-sion and challenges facing the institution as a whole. If thevideo is well produced, it can give constituents a feeling ofimportance and serve to validate the campaign effort.

2. Campaign Progress Video. A video midway through the cam-paign, showing success in meeting campaign objectives and(perhaps) announcing new goals and objectives, is worth con-sidering. Campaign volunteers are likely to enter a plateauphase during the campaign, and an exciting video praising theirsuccesses and highlighting objectives can help to energize thecampaign.

3. Conc ..ding Campaign Video. This video profiles the campaignachievements as well as key volunteers and benefactors.

Videos can also have tremendous value as keepsakes and cultiva-tion tools for major benefactors. Some institutions even use videosas a form of donor relations, sending benefactors a video anthol-ogy with information on endowed scholarships and endowed fac-ulty positions. According to Yale University Vice President TerryHolcombe, this has been a most effective means of communica-tion with major benefactors.

50


The Role of Video in Fund Raising

A relatively new wave in fund raising is the use of video for giftrequests or in conjunction with gift requests through telephonesolicitation.' The Ohio State University campaign in the late 1980spioneered the use of video. Ohio State mailed out several thou-sand videotapes to solicit benefactors for its President's Club. Theresult was highly successful, and alumni and friends of Ohio Stateresponded well, raising $1,342,900.

Recently, Penn State took the use of video to a new level whenattempting to raise $20 million for "an academic/athletic convo-cation and events center." Major individual and corporate donorscommitted $15 million of this amount. The campaign then turnedto a larger, broad-based audience to attract gifts in the $1,000 to$25,000 range. The goal of this broad-based campaign was $2million.

The Penn State alumni database contains more than 300,000alumni and 150,000 "friend" records. Selected from the databasewere 20,000 individuals who had shown an interest in Nittany Lionathletic programs. Members of the booster organization (theNittany Lion Club) and former athletes made up the bulk of thetarget audience for the broad-based video campaign.

Needless to say, it would have been tremendously challenging(if not foolhardy) to ask for gifts of $1,000 to $25,000 over thetelephone without a considerable amount of prospect "grooming."Penn State needed to position the convocation center as an im-portant project and build enthusiasm among the targeted audi-ence. Therefore, it mailed three personalized contacts prior to thesolicitation. Each contact built upon the previous one with addi-tional information. Meanwhile, the telemarketing group-60 paidPenn State studentsattended three special training sessions tobuild the students' comfort level to ask for gifts of up to $25,000.

A seven-minute videotape was mailed to each of the 20,000prospects informing them that they would be contacted by a stu-dent from Penn State. The videotape outlined the various "ticketpackages" for gifts at certain levels and encouraged individuals toqualify for ticket options and/or donor recognition on appropri-ate plaques to be placed in the new facility.

The response was overwhelming. The total cost of the projectwas $182,000, and the total raised was $3,440,000. This was a 5.3

151


cent cost to raise one dollar and exceeded all expectations of thestaff. Director of Annual Giving Dan Saftig and Associate Vice Presi-dent for Development and University Relations Brad Choate, whomasterminded the project, believe that telemarketing, combinedwith a video, can have a dramatic impact on a campaign, providedthe audience has been carefully screened and targeted. Saftig andChoate are currently working on another video campaign for en-dowment support of the university.8

Video will be increasingly important, particularly for those in-stitutions with large constituencies. Use of video, when backed upwith telephone solicitation, allows an institution to contact manymore thousands of alumni with a personalized appeal.

The Campaign Kickoff and Concluding Events

The campaign kickoff and conclusion are celebratory eventsimportant to any campaign. Most volunteers and benefactors willwant to see a beginning and an ending to the campaign, and thoseevents serve that purpose. According to Roger Williams:

Special events can inject excitement, spark enthusiasm, and gen-erate momentum in a way that nothing else can approximate.They can introduce, recognize, thank, and motivate volunteersand major donors, communicate key messages about your insti-tution, and dispel myths and misinformation. They can exhila-rate participantsand they can be designed as creatively as theimagination will allow.9

Heather Ricker Gilbert, a special events consultant, discussedthe key to staging a successful campaign kickoff or concludingevent. She offered the following advice to development officers:

Know your purpose. Why are we having this event?Understand your audience and situation. Is a black-tie galaappropriate for the culture of your institution?Promote a theme that plays up what is special about your insti-tution and its aspirations.Create clear and compelling invitations, and mail them at leasteight weeks before the event.Consider the aesthetics: the food, flowers, decor.

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Analyze the program. What is the best way to showcase keyvolunteers? Do you need a celebrity, or will a famous alumnusmake a better host?Rehearse and prepare. Assume nothing, and practice every-thing possible on sitemusicians, sound, lighting, etc.'°

These campaign events bring together volunteers and majorgift benefactors in a special and memorable way. If done properly,benefactors will remember the events as an important time to pauseand assess the strengths of their college or university. These eventscan be marvelous occasions to promote goodwill among internaland external constituents.

Expenses associated with opening and concluding events canbe prohibitive for some institutions. Costs of events built aroundmeals are especially exorbitant. Consider sponsoring a receptionthat would serve light food and perhaps champagne or wine (ifalcohol is appropriate) and attempt to avoid the need to feed alarge group of friends of the institution.

In The Campaign for Penn State, the opening gala was a largedinner for approximately 1,000 people. Although the event washighly successful, the cost was enormous. In today's environment,an institution could well be criticized for spending institutionalfunds for such an event.

The concluding gala for The Campaign for Penn State wasequally as impressive but not nearly as elaborate or costly. Morethan 2,000 guests were invited to a reception at the university'shotel complex. Guests then were transported to the university's2,600-seat auditorium where they were dazzled with a combina-tion of campaign videos, student and faculty performances, and amajor Hollywood-style production. The total cost of the conclud-ing event was approximately one-half what a formal sit-down din-ner would have cost. Unlike the kickoff, the concluding event wasless exclusive and involved more university personnel.

Although cost must always be a factor and extravagance mustbe avoided, it is important to bring the university community to-gether to experience a cohesiveness of purposes. The campaignopening event and concluding event, if properly staged, can beimportant occasions to promote the university and the capitalcampaign.

1.53


Board of Governors Resolution

Early in the campaign, the governing board of the college oruniversity should be invited to support the campaign with a for-mal resolution. This is a good public relations device, and it canreceive wide attention among an institution's internal and exter-nal groups.

A sample resolution is included in appendix F.

The Recognition Program

The institution must establish donor-recognition guidelines thatwill become an integral part of the campaign. As Dove points out,"Whether or not people say they want to be recognized, the plainfact is that 99 percent of all people love recognition.""

Recognition should be given to benefactors soon after theymake major commitments to the campaign. An institution maywant to create an overall category of recognition for benefactorswho reach a certain cumulative total of giving to the institution. Anumber of institutions have ongoing gift recognition groups, andthere is no reason to cease operating these groups during a capitalcampaign. The institution may, however, want to raise the level ofmembership in anticipation of an increased number of people whowill be eligible for membership due to the increased activity of acapital campaign. This will help to preserve the aura of "exclusivity"

The following are general guidelines for donor recognitionduring a capital campaign. The institution should create a recog-nition program that takes into account the history of the institu-tion, resources available to pay for the recognition program, andthe ability to provide staff to conduct the activity.

1. Donor Recognition for Endowed Chairs and Major EndowmentGifts. Benefactors who endow chairs, professorships, and othermajor endowments and/or gifts to capital projects must berecognized with an elegant dinner, hosted by the president ofthe institution, with appropriate internal and external invitedguests. Consider inviting other prospective benefactors to theevent for cultivation purposes.

The president should give the benefactor something tan-giblea chair, an engraved plaque, illuminated scroll, or a

1:4


crystal vase. This recognition helps bond the benefactor to theinstitution.

2. Smaller Recognition Events. Smaller recognition events, includ-ing luncheons, meetings with the president, and other univer-sity officials would be appropriate for gifts below the major giftlevel.

3. Recognition Plaques. Some institutions create a large plaquethat is placed in a highly visible location and which lists allmajor campaign benefactors. While such recognition is impor-tant, it may be impractical for larger, institutions with sizableconstituencies.

4. Recognition in Publications. Recognize major gift benefactorsin campaign publications on a continuing, ongoing basis. Manydonors appreciate this recognition, and it can also serve as acatalyst for other gifts from individuals who read about thephilanthropy of their colleagues. During a campaign there is atendency to focus on the acquisition of gifts rather than therecognition of generosity. The campaign officers must workhard to avoid this. Recognizing a major gift benefactor duringthe life of the campaign is very important and should not beoverlooked.

Notes

1. Roger L. Williams, "They Work Hard for the Money," in CASECURRENTS: (June 1989): p. 36.

2. Roger L. Williams, "Marketing Begins with Identity," in Admis-sions Marketing Report vol. iii no. vii: (JulyAugust 1987): p. 16.

3. Robert S. Topor, Institutional Image: How to Define, Improve, MarketIt. (Washington, DC: Council for Advancement and Supportof Education, 1986), p. 1.

4. Williams, "Marketing Begins with Identity," in Admissions Mar-keting Report vol. iii no. vii: p. 18.

5. Robert L. Krit, The Fund-Raising Handbook. (The United Statesof America: Scott Foresman Professional Books, 1991), p. 159.

6. Roger L. Williams, "The Role of Public Relations in Fund Rais-ing," in Educational Fund Raising: Principles and Practice. (Wash-ington, DC: The American Council on Education/Oryx Press,1993).

7. Jon Van Til and Associates, Critical Issues in American Philan-

155


thropy: Strengthening Theory and Practice. (San Francisco: Jossey-Bass Inc., 1990), p. 50.

8. Leslie S. and Daniel P. Saftig, Penn State Forever: Endowments atPenn State, (State College, PA: Filmspace Productions, 1993)[Video].

9. Williams, "The Role of Public Relations in Fund Raising," inEducational Fund Raising: Principles and Practice.

10. Heather Ricker Gilbert, "The Winning Combination: WhenYou Put Together Planning and Panache, It Adds Up to a Suc-cessful Campaign Special Event," in CASE CURRENTS: (June1989): 42-44.


56

EIGHT

Campaign Accounting

The rush to announce huge campaigns by competing insti-tutions was notorious in the 1980s, and only the decliningstate of the economyand perhaps some public criticism

kept mega-campaigns in check during the early 1990s. As theeconomy begins to pick up steam, competitiveness among collegesand universities to launch large campaigns is, again, evident.

Capital campaigns are now being conducted by hundreds ofcharities throughout the country. These campaigns do a great dealof good for their respective institutions, but they also tend to fuela public perception of institutional greed, especially when the mega-campaign is coupled with nationwide reports of tuition hikes out-stripping the rate of inflation, and operating budgets threateningdeficit spending at some of our most prestigious institutions.

Large endowments at colleges and universities also help to addfuel to this fire, causing the American public to believe collegesand universities have grown too fat, spend too much money, andare financially out of touch with the rest of society. More than 80percent of the public and independent research universities of theAssociation of American Universities (AAU) have endowments ofmore than $100 million. The combined endowments of all AAUinstitutions total more than $30 billion.' The National Institute ofIndependent Colleges and Universities claims that nearly 55 per-cent of the 3,500 higher education institutions in the country haveendowments under $1 million.' Yet, the most sensational sums arereadily communicated to the public, causing a perception that themain thing wrong with higher education is that it costs too much.

157143


According to an article in "AGB Reports":

Not only are we dealing with the perception of huge endowments,but we also face a gross misunderstanding of what an endow-ment is. Surprisingly, many benefactors and gift prospects whogenerally are quite sophisticated financially, often know littleabout endowments. To many, endowments erroneously representa simple savings account into which an institution can dip its handat will and extract whatever sum it needs for solving a problem.'

This public perceptionthat colleges and universities aregreedycan be partially offset during a capital campaign by thetypes of reports that are issued regularly to volunteers, benefac-tors, and the public at large.

Needs Goal Versus Dollar Goal

Financial reports should track two goals. Obviously, benefac-tors and volunteers will be very interested in the dollar goal. How-ever, the more important goal of a capital campaign is theachievement of the needs statement. Campaigns are not just aboutraising money, but raising money for the most critical and impor-tant priorities of the institution.

Call for Standard ReportingCapital campaigns should adhere to stringent guidelines when

reporting dollar goals. The Council for Advancement and Sup-port of Education and the National Association of College andUniversity Business Officers promulgated standards for gift account-ing that apply to annual reporting several years ago. Most institu-tions with solid fund-raising programs regularly complete theCouncil for Aid to Education (CAE) survey of voluntary supportof education, which is the only means available nationwide to trackgift reporting each year.4 These reports succinctly define what typegifts to report under prescribed categories.

A blue-ribbon committee of CASE recently promulgated na-tional reporting standards for educational fund-raising campaigns.The committee's conclusion, published as "CASE Campaign Stan-dards: Management and Reporting Standards for Educational Fund

158

Campaign Accounting I 145

Raising Campaigns," is meant to be a supplement to "Managementand Reporting Standards for Educational Institutions: Fund Rais-ing and Related Activities."5 The latter document provides stan-dard definitions and guidelines on gift valuation but remains silenton the subject of capital campaign accounting and reporting. Theauthor served as a member of the committee and contributed tothe promulgation of the standards. This chapter draws heavily fromthe guidelines and comments on the rationale behind them.

Lack of Uniformity in Campaign ReportingA National Problem

The final guidelines have been distributed nationwide andshould be used by all colleges and universities that conduct capitalcampaigns. Only through systematic, common reporting guide-lines can abuses of the past be eliminated in the future. Highereducation needs to ensure that what it is reporting is uniform,consistent, provable, and credible. Colleges and universities thatpresumably exist to search for truth must be scrupulously honestand fair-minded in their reporting of campaign gifts. Excesses inthis regard will only further encourage public perception of insti-tutional greed. Running up campaign totals with revocable giftcommitments, verbal pledges, will expectancies, and unsubstanti-ated commitments will only make faculty, students, alumni, andfriends skeptical of the entire development program. Portrayingcampaigns as successful when they count highly speculative com-mitments is contrary to everything that higher education is about.Such practices do not accurately reflect the fund-raising perfor-mance of the institution. The use of common guidelines will, mostassuredly, bring these practices to an end.

The report, "CASE Campaign Standards: Management andReporting Standards for Educational Fund-Raising Campaigns,"is included in appendix M. Some of the rationale behind the stan-dards is included below.

Three Key Concepts

Introduced in the standards are three key concepts that mustbe seen as fundamental to the overall document. First, campaign

59


reports should separate results of a campaign's featured objectivesor needs statement from other institutional purposes. Secondly,campaign reports should separate gifts received during the activecampaign solicitation period from gifts the campus expects to getfrom pledges and other deferred commitments after the campaignends. Third, campaign reports should give both the face value andthe discounted present value of all deferred gifts.

The third key concept, reporting deferred gifts both at facevalue and discounted present value, was a major compromise thatwas made in the final negotiation process when the committeemet on December 9, 1993. The original draft required that all de-ferred gifts be discounted to present value, and this caused a tre-mendous uproar in the profession. At least half of the developmentprofessionals throughout the country believed that discountingdeferred gifts to present value was not an acceptable way to pro-ceed, and the committee felt that this threatened the survival ofthe document. The other half believed that present value discount-ing was the only way to proceed, and anything short of that wouldbe a major compromise to the integrity of the report. As noted inthe appendix, the committee decided that a compromise was im-portant in order to resolve the issue and receive maximum accep-tance of the campaign guidelines from professionals throughoutthe country.

The guidelines propose that each college or university con-ducting a capital campaign will be asked to file a report annuallywith CASE. This information will be compiled and published an-nually by CASE as a service to its membership and the public.

This report will provide professionals with a common languagefor discussing the progress of their capital and major gift campaigns.Institutions will be asked to report their campaigns' financial re-sults in basically three distinct columns. The first will be a report-ing of current gifts and pledges at face value. The second will be areporting of deferred gifts and future commitments reported atface value for featured objectives and other objectives. The thirdwill be a reporting of deferred gifts and future commitments atthe gift's discounted present value for featured objectives and otherobjectives.

This three-column approach is a compromise, a change to theoriginal thinking of the committee. The approach resulted fromquite lengthy discussions with a number of professionals and, ap-

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Campaign Accounting I 147

parently, was the brainchild of Peter McE. Buchanan, president ofCASE. Quoting from the report,

This multi-column reporting approach is the result of lengthydiscussions with CASE members about the pros and cons of re-porting deferred gifts (future commitments) at present valueversus face value. While discounting to present value representsa substantial change from past practice, many people stronglysupport its use as a more realistic indicator of the future valuethose dollars will have when the institution actually is able to spendthem. Also, this method accounts for any pay-out obligations tothe donor. At the same time, this approach recognizes the con-cern about the potential negative impact present day discount-ing could have on donors. When donors make an irrevocabledeferred gift, they turn over an asset to the institution and giveup their control of it. And, even though the institution may payback a substantial amount to the donor and will not be able tospend the asset for some time into the future, many donors con-sider the current face value of the asset as the amount that he orshe gave to the institution. Therefore, the standards create threeprimary reporting columns, plus two columns for totals, to ac-commodate these concerns. Those who believe that publicly dis-playing the present value of deferred gifts will, in fact, discourage,donors from making such gifts may choose to report only thefirst two columns to their constituents, but those institutionsshould report all columns on Appendix B to their appropriategoverning boards and to CASE. CASE will in turn report all col-umns in its published report of campaign results. These stan-dards are, therefore, silent on the question of how an institutionsshould publicly recognize its donors.6

This appeared to be a good solution given the difficulty in bring-ing closure to this important part of the report. CASE will, in turn,report all three columns on an annual basis so that all institutionswill be able to compare the their capital campaigns to one anotheron a level playing field.

Government Funds

During the mid-to-late 1980s, several state legislatures appro-priated funds to colleges and universities to create endowments,provided those appropriations could be matched by private corn-

161


mitments. The capital campaign at the University of Minnesotatook advantage of this important private/public partnership toincrease the university's endowment portfolio dramatically.

After much discussion, the committee, while not criticizing thisapproach to garnering financial resources, believed that funds thatcame from legislative appropriation should not be counted in acapital campaign. The matching dollars, of course, could certainlybe counted.

Nongovernment Grants and Contracts

Another area of the report that was debated with intensity wasnongovernment grants and contracts. Many institutions, particu-larly major research universities, regularly contract with privateindustry to perform a variety of research projects. Obviously, asstated in the previous paragraph, publicly supported research dol-lars in the form of grants and contracts should never be countedin a capital campaign. However, the process of determination be-comes complicated when considering privately funded research.

A distinction between grant income and contract revenue mustbe made but cannot always be determined with ease. Thecommittee's statement on the subject is as follows:

The difference between a private grant and contract should bejudged on the basis of the intention of the awarding agency andthe legal obligation incurred by an institution in accepting theaward. A grant, like a gift, is bestowed voluntarily and withoutexpectation of any tangible compensation. It is donative in na-ture. A contract carries an explicit "quid pro quo" between thesource and the institution.?

Whether this is helpful in deciding what to count and what not tocount is not certain. This clause in the standards may, in fact, cre-ate more questions and befuddlement than answers and clari-fication.

It seems that the tangible benefit part of the clause is the mostclarifying. If a corporation is receiving a contract for benefit, thenit is unlikely that the institution should count those funds in thecampaign. There are no easy answers here, and the institution mustdecide this issue on a case-by-case basis, always leaning in the

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Campaign Accounting 1 149

direction of close scrutiny when reviewing these types of com-mitments.

Notes

1. G. David Gearhart, R. L. Williams, "Do Mega Campaigns MakeUs Look Greedy?" in AGB Reports vol. 33 no. 1: (January/Feb-ruary 1992): 17.

2. Gearhart, Williams, "Do Mega Campaigns Make Us LookGreedy?" in AGB Reports vol. 33 no. 1: (January/February1992): 1.

3. Gearhart, Williams, "Do Mega Campaigns Make Us LookGreedy?" in AGB Reports vol. 33 no. 1: (January /February,1992): 1.

4. The Campaign Reporting Advisory Group, Council for Ad-vancement and Support of Education, CASE Campaign Stan-dards: Management and Reporting Standards for EducationalFund-Raising Campaigns. (Washington, DC: Council for Ad-vancement and Support of Education, April, 1994).

5. The Campaign Reporting Advisory Group, Council for Ad-vancement and Support of Education, CASE Campaign Stan-dards: Management and Reporting Standards for EducationalFund-Raising Campaigns, p. 1.

6. The Campaign Reporting Advisory Group, Council for Ad-vancement and Support of Education, CASE Campaign Stan-dards: Management and Reporting Standards for EducationalFund-Raising Campaigns, p. iv.

7. The Campaign Reporting Advisory Group, Council for Ad-vancement and Support of Education, CASE Campaign Stan-dards: Management and Reporting Standards for EducationalFund-Raising Campaigns, pp. 9,10.

163

NINE

Post-Campaign Plan

The campaign is winding down, the concluding gala has beenheld, and the volunteers are feeling very good about thesuccess they achieved.

The Challenge Ahead

When the campaign enters its final phase, it is important toundertake an evaluation of the development program and deter-mine its direction during the immediate post-campaign period.The overriding challenge will be to continue the momentum thathas been attained in the campaign and sustain the level of privategift support without a campaign context. When a major campaignConcludes, the focus and visibility provided by the campaign inevi-tably change. The case for major gift support becomes more diffi-cult to make, as many benefactors believe that with the successfulconclusion of the campaign, programmatic and endowment needshave been met. The academic community may mistakenly believethat the level of resources dedicated to the office of developmentis no longer necessary. There may even be some individuals whoassume that the development program as a whole is no longernecessary, and the campaign has made the need for private giftsupport in the future a distant priority.

1.64151


Post-Campaign ObjectivesSustain and Increase Private Giving

To sustain and, indeed, increase the institution's current levelof external philanthropic support, the internal and external com-munities must understand that the efforts and pace of the devel-opment program should not decrease once the campaignconcludes. All post-campaign planning must be based on the as-sumption that the primary goal is to simultaneously increase thecurrent level of support while preparing for the next capitalcampaign.

The primary objective of the development office should be toincrease the number of philanthropic dollars. This objective willbe achieved by continuing to direct, guide, and participate in theidentification, involvement, cultivation, and solicitation of alumni,friends, corporations, foundations, and organizations. However,the campaign should anticipate that total annual support may, infact, decrease in the immediate years following the campaign. With-out the context of a major effort, it is likely that the number ofmajor gifts flowing to the institution will diminish, as will theirsize. Expect this; it is not an unusual phenomenon. The key is toput in place the staffing, resources, projects, and programs thatwill maintain total gift support at the highest level possible.

Collaboration with Academic Leadership

While the fundamental goal of the office of development is toincrease yearly income, this objective must be pursued in concertwith the academic leadership of the institution. Development per-sonnel must make it clear that they provide a service and that theacademic leadership of the institution is charged with the respon-sibility of determining funding priorities. During the campaign,the needs statement listed those priorities. Now that the campaignhas ended, a mechanism should be put in place that continues toinvolve the academic leadership in determining critical priorityneeds. This requires increased communication with academic of-ficers by members of the development staff. To that end, seniormembers of the development staff should inaugurate regular plan-ning meetings with academic officials, including deans and aca-demic department heads. These meetings will help to link thefund-raising staff to the academic enterprise.

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Post-Campaign Plan I 153

Evaluation of Needs

The campaign will likely achieve only a percentage of the cam-paign needs statement. Even though the dollar goal may be sur-passed, it is highly unlikely that every need determined early inthe campaign will have been met. A needs percentage achieve-ment of 60 or 70 percent is a tremendous accomplishment. In anycase, the institution must now initiate a process to establish a newset of needs to help direct the fund-raising agenda once the cam-paign concludes.

The first step in establishing new needs requires a two-prongedapproach:

1. A review of goals and needs that were not met in the currentcampaign

2. The establishment of a new long-term needs statement as de-termined by the academic leadership of the institution

To initiate the first step, the chief academic officer should askacademic officials to submit a list of those academic needs that areon the current campaign needs statement and were not met dur-ing the campaign but are still priorities. These existing unmet needsform the basis for a "revolving" needs statement that will be a fluiddocument reviewed on an ongoing basis and subject to regularchange.

Secondly, the chief academic officer should request that newneeds be submitted. Those compiling the new needs ought to takeinto account the institution's strategic long-range planning pro-cess, and should continue to focus on the need to raise endow-ment support in the form of endowed faculty positions, graduatefellowships, and scholarshipsprovided this is an area to be tar-geted as a continuing priority.

Before a need (new or existing) is placed on the revolving needslist, a review should be conducted by the appropriate member ofthe development staff to determine the fund-raising potential ofthat particular project. Generally, factors to be considered whenreviewing the funding potential of a need are as follows:

1. The overall cost of the project or program as well as the con-tributed dollars required to support the project

2. The number of identified prospects who may have an interestin that particular project or objective

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3. The gift capacity of those prospects and the probable timingof a gift

4. The urgency of the need5. How each project fits into the overall needs of the institution

and its strategic plan

If major needs are identified that might require a heavier insti-tutional commitment (e.g., a major building project), formal fea-sibility studies should be undertaken to determine the likelihoodof success of the project immediately following a major capitalcampaign.

Focus Campaigns

A natural result of an evolving needs statement will bea deci-sion by the academic leadership to launch a limited number ofsmaller focus campaigns) A focus campaign may be a project leftover from the major capital campaign that was not funded, or itmay be one that was not even pursued in the campaign. Focuscampaigns are generally efforts that involve the entire constitu-ency of the institution and are built around a project that will ben-efit that constituency. Examples include a new building project forthe library or a classroom building that will be available to all de-partments and students, or, perhaps, a scholarship fund that ben-efits every academic unit.

One of the outcomes of the launching of smaller focus cam-paigns during the off years of a capital campaign is to continue toinvolve important volunteers in the development program. In ad-dition, many benefactors will have concluded their campaignpledges and may be looking for a project of more limited scope.

Creation of a College or University Development Committee

To facilitate the process of establishing a new needs statementthat will represent all areas of the institution and to provide a meansof reviewing new initiatives, consider forming a development com-mittee to review major fund-raising projects and to make recom-mendations to the president and the governing board for thoseneeds that should be funded through focus campaigns. This wouldbe an internal committee composed of representatives of the ad-ministration and faculty at the highest levels. This committee shouldbe chaired by the president and should meet on a regular basis. It

167


would be charged with the responsibility of approving focuscampaigns as well as the needs statement in the post-campaignenvironment.

Maintenance of Development Resources

Since the beginning of the campaign, the institution's admin-istration more than likely provided increased funding for the de-velopment function. This investment of resources helped to movethe campaign forward and probably resulted in an increase in gifts.

To maintain the current level of support as well as to increaseprivate giving in a noncampaign environment, current staffing lev-

els must generally be maintained, and plans must be made to in-crease or, at the least, maintain the budget of the office ofdevelopment. Boards and presidents should not decrease the fund-ing of the office of development simply because the campaign hasnow concluded.' Now, more than ever, the development office willneed the resources to continue and even increase major gift sup-port. A new level of private gift support has been reached, and it ispossible to sustain this level of giving, provided the resources aremade available on a continuing basis. Too often, institutions tendto cut the staff of the development office and their annual mainte-nance budget simply because a campaign has concluded. This isshortsighted and will only lead to a decrease in philanthropic giv-

ing in the long run.

Maintenance of Volunteer Programs

One of the most important benefits resulting from a majorcapital campaign will be the development of a network of volun-teers. In a large complex university, these volunteers were prob-ably recruited from throughout the United States, and theparticipation of new friends and alumni in the institution's affairsis probably at an all-time high. The campaign manager must de-velop a program to continue involving the most effective of thesevolunteers once the campaign concludes.

If the institution does not have an ongoing volunteer organi-zational structure such as a development council, developmentboard, or board of visitors, establish such an organization. Mem-bership could be composed of key campaign volunteers who dem-onstrated their commitment to philanthropy during the majorcapital campaign. The purpose of this development board or coun-

168


cil would be to provide leadership for major philanthropic activi-ties such as focus campaigns at the university. It would be a mistaketo disband the national campaign committee without forminganother group that can tap into volunteer leadership.

Reassess Gift Endowment Levels

During the life of the campaign, gift endowment levels werelikely maintained. The amounts required to endow a scholarship,professorship, chair, or other program remained constant. Theinstitution would be wise to review these endowment levels andreassess the effectiveness of the income generated. It is possiblethat managers should increase endowment minimums, and a gen-eral review of these amounts should be made before launchinganother major capital campaign.

Maintenance of Donor/ConstituentRelations Program

During the years between campaigns, and prior to a secondcampaign, a strong constituent/donor-relations program must bemaintained. Benefactors must be honored appropriately for ma-jor gift support, and continued cultivation is essential to an ongo-ing development program. Even though a campaign has concluded,the development office is still in the business of raising money forinstitutional priorities and needs. Alumni and friends of the insti-tution must be made to feel that their gift, after the campaign hasconcluded, is critically important and deeply appreciated evenoutside the context of a capital campaign.

Planning for the Next Campaign

As previously stated, many institutions conclude their cam-paigns and immediately begin planning a second effort to com-mence in five to seven years. Planning toward that eventualityshould begin immediately once the campaign has concluded. Apost-campaign committee composed of key development person-nel should begin meeting quarterly in anticipation of another cam-paign. This committee would assess and evaluate the success of thelast capital campaign and begin anticipating those elements thatwill need to be put in place for the next one. To plan for the next

69


campaign is simply to acknowledge reality: fund raising is here tostay in higher education and is likely to play an increasingly impor-tant role at both public and independent institutions in the yearsahead.

Notes

1. Toni Goodale, "The Ongoing Capital Campaign," in Fund Rais-ing Management vol. 1 no. 3: (September 1989): 72.

2. Rita Bornstein, 'The Capital Campaign: Benefits and Hazards,"in James L. Fisher and G.H. Quehl ed., The President and FundRaising, (New York: American Council on Education andMacmillan Publishing Company, 1989) pp. 202-211.

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Appendix A

STRICTLY CONFIDENTIALInterviewee

FEASIBILITY STUDY(College or University Name)

1. Does the College/University enjoy a positive image in the community?

a. How would you rank the educational programs of the College orUniversity?

1. Excellent2. Good3. Fair4. Don't Know /No Opinion

b. How would you rate the administration of the College or University?

c. How would you rate the faculty of the College/University?

d. How would you rate the fund-raising programs at the College/University)?

2. Do you believe that the building of a new facility for the College/University is apriority for the State of

1 71159 ,


3. Is the College/University responsive to community and professional needs?

4. How do you compare the College/University to other comparable institutions?

5. Do you consider the College/University an important community and regionalasset? In what ways?

6. The new facility is being financed by a combination of state and University funds.In anticipation of the completion of this facility, the College/University wishes tolaunch an endowment program to strengthen educational programs. Potentialbenefactors will be asked to contribute to an endowment fund for a variety ofpurposes including scholarships, lectureships, endowed chairs, and professorships.These funds will greatly enhance the educational mission of theCollege/University. In recognition of gifts from benefactors, areas within the newbuilding will be named for gifts at appropriate levels. Do you consider thisproject to be both important and urgent?

7. One million dollars to three million dollars has been estimated as the total dollargoal for this campaign. In your opinion, can the College/University raise$1 million to $3 million from the private sector in a campaign?

8. What is the most that you believe the College/University could raise for thisproject?

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Appendix A I 161

9. In this campaign, it is anticipated that most of the funds raised will come from asmall number of major gifts. In a campaign of the scale we are discussing here,commitments in the $25,000 to $100,000 range and up will be required for success.In fact, we are hoping that we might be able to secure some gifts as high as$250,000 to $1 million. Keeping in mind that gifts can be cash, securities, andreal estate and can be fulfilled over a five-year pledge term, would you be willingto suggest to me the names of individuals, corporations, and foundations that youthink have the ability and possible interest to make such gifts to this campaign?

10. If you were to be called upon to assist with this project by making a gift, wouldyou have interest in the project?

11. I would like to ask you to share with me, on a strictly- confidential basis, the givinglevel that you might consider for this project if financial circumstances are rightand an appealing naming opportunity in the new building is placed before you?

12. Who do you believe would be an important and critical volunteer to the successof this fund-raising project?

13. Would you be willing to be a part of the campaign as a volunteer?

173


14. Is the timing right to launch a campaign of this magnitude?

15. Where does this project fit into your civic priorities on a scale from one to ten,with one being the highest?

16. Is there any reason by the College/University should not embark upon acampaign of this magnitude as soon as it is prepared to do so?

17. Are there any other matters bearing on this project that you feel should beaddressed prior to embarking on a campaign for the College/University?

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Appendix B

ii4/MTE

COLLEGE OF THE LIBERAL ARTS NEEDS STATEMENT

A society prospers and endures when its people arerich in imagination, insight, and critical inquiry. PennState's College of the Liberal Arts helps foster theseintellectual skills by providing the knowledge ofhuman experience, of values, and of culturaltraditions.

The 1985 Association of American Colleges' reporton the meaning and purpose of baccalaureateeducation defined the ability to communicate ideaswith precision and clarity as a primary goal ofpostsecondary education. Mastery of our own and offoreign languages enables students to use their skillsof analysis and inquiry. By integrating liberaleducation with professional studies, students areprepared to apply their knowledge in diversesettings.

In the College of the Liberal Arts, faculty aredevoted to helping students gain a mastery oflanguage, an awareness of private and social values,and knowledge of the diversity of cultures andexperiences that define the contemporary world. Thefaculty includes distinguished scholars who havedeveloped programs recognized for their excellence.

The college is a national leader in foreign languagepedagogy. A satellite system for receiving foreignlanguage broadcasts and specially designedclassrooms provide the latest techniques andtechnology for language instruction.

The Department of Philosophy's faculty isinternationally prominent in scholarship and also ishighly active in instruction on Penn State'sCommonwealth Campuses. The Department ofSpeech Communication's graduate program has beenranked among the top three in the country. Itsalumni include two college presidents.

A team of psychology faculty studies therelationship between emotions and wellness. Theexpertise of this research group, which includes EvanPugh Professor Herschel W. Liebowitz, is unequalledanywhere in the world. Industrial/organizationalpsychologists are bringing their skills to institutionaland corporate settings to improve employee andmanagement operations far beyond the University.

The National Endowment for the Humanities hasrecognized and supported the college's commitmentto excellence through a challenge grant, the largestaward NEH made in 1985. By successfully raising $3million in new and. increased private support overthe next three years, the college will receive Simillion from NEH.

To enhance its level of excellence, Penn State'sCollege of the Liberal Arts is seeking $7.75 million foracademic program support. The money would beused for the following purposes:

$5.25 million for faculty support. Endowed facultychairs in Literary Theory and ComparativeCriticism, Ethics, and Anglo-German LiteraryRelations would build on programs of distinctionand use resources unique to Penn State, such asthe Allison-Shelley Collection of Anglo-Germantranslations. Endowed professorships would beestablished in newly developing disciplinesWomen's Studies, Group and OrganizationalCommunications, Clinical/Industrial Psychology,and Jewish Life and Literature. An endowedVisiting International Professorship would aim tobring the best of the world's scholars to thecollege. A Research and Development Fund wouldhelp provide critically needed resources for collegefaculty.

$1 million for student aid. Outstanding graduatestudents are crucial for the college to achieveexcellence in research and teaching. The quality offuture faculty depends on attracting top studentsto graduate study. Critical shortages ofoutstanding faculty are beginning to develop. Thecollege's responsibility to excellence in the futurerequires assistance to attract the nation's beststudents.

$1.5 million for program enhancements. Themoney would be used to enhance the college'sfirst rate writing program and will fund a majortelevision series based on the work of Penn State's

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prominent archaeologists. A Resident WritersProgram would complement the faculty byproviding for extended visits by the nation'sleading scholars. The Department of English is thelargest in the country, and its faculty includesseveral of the nation's outstanding writers. Facultymembers Stanley Weintraub and Philip Younghold the Evan Pugh Professorship. TheDepartment of Anthropology is bringingarchaeology's newest approaches and techniquesto the public through a nationally televised coursetitled "New Directions." Two of its faculty,William T. Sanders and Paul T. Baker, aremembers of the National Academy of Sciences andhold Evan Pugh Professorships.

The Pennsylvania State University. in compliance with federal and statehlt,s. is committed to the policy that all persons shall have equal access toprograms. admission. and employment without regard to race, religion.sex. national ongin. handicap. age. or status as a disabled or Vietnam-erasereran. Direct all aliirmative action inquiries to the Affirmative ActionOfficer. Suzanne Brooks. 201 Willard Building. University Park. PA It.602.,1141n63-0471.

L Ed 07-018

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Appendix B I 165

/71FEVNINfi

COLLEGE OF BUSINESS ADMINISTRATION NEEDS STATEMENT

Already recognized as one of the nation's topbusiness schools, Penn State's College of BusinessAdministration is poised to assume a position ofever, greater national and international leadership inthe study of management and businessadministration.

Through innovative approaches to teaching andresearch, the college is keeping pace with the rapidlychanging world of business. Anticipating thosechanges, the college's Division of Research hasestablished seven centers for research. Each unitdeals with an area that is critical to the future ofAmerican business: strategic decision making; themanagement of technological and organizationalchange; pension and welfare research; regionalbusiness analysis; the study of business markets;issues management research; and real estate studies.

The college includes seven departments, whichprovide a focus for the study of business disciplines.Several departments have been recognized foroutstanding achievement. Studies of the impact ofstrategic decisions on the financial community havebeen sponsored by the Blankman Program and havebrought recognition to the Department of Finance.Activities associated with the William Elliott Programand Chair annually bring leaders of the insuranceindustry to Penn State. With its emphasis on thestudy of business markets, the Department ofMarketing plays a unique role among universitiesstudying in this area. Accounting and BusinessLogistics are internationally noted as outstandingdepartments, with Business Logistics recently rankedby two independent surveys as the top program inthe nation.

Professional programs at the M.B.A. and executiveeducation levels have attained national and

international prominence. The executive educationprogram is regularly cited as among the best in theland, and in a recent survey, Penn State's wasranked among the top three, along with those ofHarvard and Stanford. The college's M.B.A. programis considered one of the country's top twenty and israted as one of the most rapidly improving M.B.A.programs in the nation.

Other innovative programs are being launched aswell. The G. Albert Shoemaker Program in BusinessEthics provides an examination of management ethicsand corporate social responsibility. The programincludes lectures, conferences, panel discussions, andresearch studies designed to affect the entire businesscurriculum. The Shoemaker Program is one of thefirst of its kind.

To enhance this level of excellence, Penn State'sCollege of Business Administration is seeking 56.4million for academic program support. The moneywould be used for the following purposes:

54 million for faculty support. Endowed chairs,professorships, and University fellowships wouldprovide the faculty leadership needed to developoutstanding programs, student activities andcurricula in the core disciplines of the college.Competition for top faculty in businessadministration is intense, and this type of supportis essential for developing excellent programs thatenable students to learn from outstandingteachers.

51.1 million for student aid. Gifts to this areawould be used for fellowships, grants, andscholarships for both undergraduate and graduatestudents. This support would attract the best and

177


brightest students at all levels and rewardoutstanding performance among those alreadyenrolled.

$1.3 million for capital construction and programenhancement. Of this, $1 million would fundconstruction of the Management EducationLaboratory, which would house special classroomsthat simulate a working business environment. Inaddition, funds are needed to support specialprograms and centers to enable the college to beon the cutting edge of studying and examiningnational issues.

The Pennsylvania State University. in compliance with federal and Statelaws. is committed to the policy that all persons shall have equal access toprograms. admission. and employment without regard to race. religion.sex. national origin. handicap. age. or status as a disabled or Vietnam -eraveteran. Direct all affirmative action inquiries to the Affirmance ActionOfficer. Suzanne Brooks. 201 Willard Building, University Park. PA78111 $63-471.

37.552

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178

Appendix B I 167

FeNgiNfe

COLLEGE OF ENGINEERING NEEDS STATEMENT

For more than a century, Penn State's College ofEngineering has been Pennsylvania's single greatestsource of engineering graduates. Since the turn of thecentury, the college has ranked among the top teninstitutions in the country in the number of studentsenrolled in its baccalaureate program.

In fact, one in every fifty engineers in the nationwith a bachelor's degree earned that degree fromPenn State.

Throughout its history, the college has been aninnovative force in engineering education nationwide.In 1909, it became the first college in the nation tooffer a degree program in industrial engineering. Thecollege also initiated the first formal program inengineering extension, which later developed into theUniversity's Commonwealth Campus System.

With the creation of an Engineering ExperimentStation in 1909, Penn State became one of America'sfirst academic institutions involved in engineeringresearch. In the last five years alone, the college hasmore than doubled its sponsored researchexpenditures, to the tune of more than 515 million in1985-86.

The college's Breazeale Nuclear Reactor was one ofthe first college or university research reactors to beLicensed by the Atomic Energy Commission. Recentlyrelicensed by the Nuclear Regulatory Commission, itis the nation's longest-operating university reactor.

However, sheer numbers and being a pioneer donot tell the entire story. Even more impressive is thequality of the graduates produced by the College ofEngineering.

More than one hundred forty chief or seniorexecutive officers of Fortune 1000 corporations areamong the 50,000 Penn State engineering alumni.

Three engineering alumni are astronauts. PaulWeitz, a 1954 aeronautical engineering graduate,piloted the first flight of the shuttle Challenger in1983. Captain Weitz also flew on a 1973 Skylabmission. Colonel Guion Bluford, a 1964 aerospaceengineering graduate, was a mission specialist onChallenger flights in 1983 and 1985. He is thenation's first black astronaut. Robert Cenker. a 1970

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aerospace engineering graduate who also holds amaster's degree in aerospace engineering from PennState, was a payload specialist on the January 1986flight of the shuttle Columbia.

To enhance the level of excellence that makes suchaccomplishments possible, Penn State's College ofEngineering is seeking 521.05 million for academicprogram support. The funds would be used for thefollowing purposes:

56.95 million for faculty support. This wouldinclude three endowed chairs in thrust areas ofengineering education and research that are criticalto the country's needs; fifteen professorshipsthroughout the various engineering programs; andfaculty fellowships in Electrical Engineering andMechanical Engineering. Competition for topengineering faculty is intense, and such support isnecessary if the college is to attract and retainquality professors. The endowed chairs are meantto attract key faculty with internationallyrecognized expertise in critical areas, while theprofessorships would broaden the base of facultyquality by attracting new senior-level professors.

53.6 million for student aid. The opportunity towork with superior students attracts and retainssuperior faculty. Important research is conductedby students under the supervision of such faculty.Scholarships and fellowships help to bring thebrightest engineering students to Penn State andencourage them to continue at the University ingraduate programs. This, in turn, increases thetalent pool from which new faculty can beappointed.

55.5 million for program enhancement. Becauseengineering technologies constantly are changing,it is critical that the College of Engineering keeppace. The money would provide for the purchaseof additional equipment that will keep laboratoriesup-to-date. In addition, innovative Centers ofExcellence in Research and Instruction are

179


planned, to further enhance the college's level ofexcellence in these two areas.

$5 million for facilities expansion andimprovement. Additional funds are required tocomplete capital building projects that are fundedonly partially by the Commonwealth. A numberof vital new facilities are needed as well.

the Pennsylvania State University. in compliance with federal and statelaw, is committed to the policy that all persons shall have equal access toprograms. admission. and employment without regard to race. religion.se.. national ongin. handicap. age. or status as a disabled or Vietnam-eraveteran Direct all affirmative action inquiries to the Affirmative ActionOfficer. Suzanne Brooks. 201 Willard Building. University Park. PA ItailJ2,tSlilen3.0471.U Ed. B7.801,

Produced by the Penn State Department or Publications

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Appendix C

SAMPLE LANGUAGE FORUNIVERSITY NAMED CHAIRS, PROFESSORSHIPS, ENDOWED

FELLOWSHIPS, GRADUATE FELLOWSHIPS, ANDUNDERGRADUATE SCHOLARSHIPS

University Named Chairs - Minimum endowment: $1 million

The highest honor that can be bestowed on a faculty member, the endowed chairprovides an eminent scholar with a salary, as well as additional sums to fund graduateassistant salaries, secretarial help, course development, and traveling expenses. Anendowed chair is key in attracting and retaining the acknowledged leaders in theirfieldsthe stars of the academic world.

University Named Professorships - Minimum endowment: $250,000

An endowed professorship allows the University to attract- -and to keep--top-flightfaculty, by supplementing departmental support. Funds are used to provide salarysupplements, graduate assistant stipends, secretarial help, and travel expenses. As withnamed chairs, this kind of support can influence the caliber of faculty we are able torecruit, as well as the quality of teaching and instruction a department is able to provide.

University Endowed Fellowships - Minimum contribution: $100,000

Faculty fellowships allow the University to provide extra funds to outstanding facultymembers. These funds help those who receive them to further their work in teaching,research, and public service. Endowment income goes toward paying graduate assistants,secretarial support, and travel expenses.

Graduate Fellowships - Minimum contribution: $50,000

To further its mission as a great research and teaching institution, College/Universitymust recruit the brightest graduate students and reward them in keeping with theirrespective needs, responsibilities, and stages of academic development.

Undergraduate Scholarships

The College/University scholarship program has a dual purpose: to attract the mostpromising students to the University and to make a University education available toevery qualified student, regardless of the individual's background or financial position.Endowed scholarship funds provide the necessary support.

181.169


There are three ways to institute a named scholarship:

A. A gift of $25,000. A gift of $25,000 or more will be used to fund anAcademic Excellence Scholarship. As a specially targeted area ofscholarship funding within the Campaign, this premier scholarship isoffered to students who are invited to participate in the College/UniversityUniversity Scholars Program.

B. A gift of $15,000. A gift of $15,000 or more is used to establish a separateendowment fund scholarship. The donor is free to establish selectionrequirements for those receiving the scholarship, provided the establishedterms fall within the law and do not unreasonably restrict the scholarship.

C. A gift of $10,000. A gift of at least $10,000 can be used to establish anamed scholarship in one of four already existing University endowedscholarship programs. These cover the areas of greatest need forscholarship support. Separate guidelines have been established for each ofthese programs.

i. Alumni Memorial Scholarship. These scholarships are awarded onmerit, to recruit students of the highest caliber.

ii. College/University National Merit Scholars Scholarship. Selectionfor these scholarships is based on procedures administered by theNational Merit Scholarship Corporation.

iii. College/University National Achievement Scholars Scholarship.These scholarships are awarded to black students selected under theNational Achievement Scholars Program of the National MeritScholarship Corporation.

iv. Renaissance Scholarship. These are awarded to the 'brightest of theneediest" students.

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58


Sound off is your chance to share an opinionabout CASE areas of interest. Send manu-scripts for consideration to CASE CURRENTS,Suites 5301600, One Dupont Circle,Washington, DC 20036.

Name that campaignBY BERNICE A. THIEBLOTPresidentThe North Charles Street Design Organization

Inflation has proven to be an ill windblowing a beneficial side effect to fundraisers and publications consultants. Asendowments are ravaged, capital cam-paigns are springing up like crocuses.And inventing those words and phrasesthat sear minds, kindle dreams, andopen hearts and checkbooks has onceagain emerged as an art form.

Based on recent experience, I am con-vinced that the most difficult activityassociated with a campaignsecondonly to raising the money itself isnaming it.

Because finding a name is so taxing,too many institutions are copping out

resorting to campaigns designated bynumbers. You'll recognize them bysuch names as "Eighty Million for theEighties" or "Two Centuries: Two Mil-lion." Numbers lack the power to stirsouls. Better, we think, to name acampaign for its philosophical ob-jectives and attain a loftiness beyondmeasurement.

In the interest of serving higher edu-cation, we have developed our own pat-ented method for naming campaignswhich we, herewith, share with you.

Using this system is as simple asordering from a Chinese menu. Noticethat there are three columns. Begin byreading down Column A until you findthe participle or infinitive that seemsmost appropriate to your campaign.Next, choose the phrase from ColumnB that feels just right. All you need is anoun from Column C and, presto, yourcampaign has the perfect name.

For example, if you had chosen #30in Column A, #18 in Column B, and#43 in Column C, you would have"Mandate for an Extraordinary PersonalSacrifice." Now what could describethe objectives of a capital campaign bet-ter than that?)

A word of caution to the novice: Be-ware the acronym. "Advancement of aSuperb Structure" will not do. Neitherwill "Signalling an Abundance ofProgress." cnSe

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Column ATowardHonoringQuest forTime forIn Support ofCelebratingOpportunity forCreatingTo ShareBurnishingProgram forInvestment inGlorifyingExalting .Transcending

'SignallingForce forImperative forAffirmingFrontier ofIn Search ofPursuit ofTo PerpetuateTo SustainAdvancement ofFulfillingSurpassingThe Consummation ofCampaign forMandate forReinforcingBuildingMaximizingUnitingResources forOptimizingCounterbalancingGeneratingEngineeringEnnoblingUpgradingMotivatingStrengtheningChiselingForgingRenewingReaffirmingSignallingSafeguardingArticulatingTo CultivateejReap ingPreserving "-1-

Column BGreatera Tradition ofa Commitment toa Heritage ofthe Enrichment ofa Century ofa Largera More Perfectan Ancienta Hallmark ofa Keystone ofa Foundation ofa Fount ofthe Margin ofthe Magnitude ofan Abundance ofa Remarkablean Extraordinarya Loftya Noblea Mightyan Illustriousa Signala Renowneda Gloriousa Grand .

a Majestica Perpetuala Legacy ofa Superba Peerlessa Monument toMatchlessa Superiorthe Vastness ofan Enduringthe Strife ofthe Elements ofan Edifice fora Capacity forthe Frequency ofthe Occurrence ofa Generousa Monument toa Vitalan Unbroken Chain ofa Tower ofa New Age ofa Vision ofa Graciousan Enduringthe Rewards ofa Viable

Column CEndowmentLearningQualityEnrichmentLeadershipServicePurposeWisdomGiftTraditionGreatnessAbundanceBeneficenceExcellenceVisionProgressImperativeDecadeAchievementDreamFulfillmentHistoryHonorPresenceDifference

. DevelopmentPromiseCampaignServiceIdeaCovenantPhilanthropyMoneyStructure

rtunityce

InflationAccountabilityExcellenceGenerosityInvestmentGivingPersonal SacrificeExpansionLinkPromisesTruth-UnityVirtue'ProminenceVitality ^

- IndustryAlternative

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SOUND OFF

NA E THAT CAMPAIGN IINomenclature in the '90s: 343,000 possibilities for your next fund drive

BY BERNICE AS HBA,711(4,B14,02;

When CURRENTSasked me to updatemy March 1979look at campaignslogans, I couldn'thelp noticing thatthe campaigns ofthis decade haveevolved. Today's

Thieblot driVe is more ambi-tious than its predecessor-longer andmore comprehensive. And whether or notthe campaign focuses on an institutionalanniversary, it's more likely to acknowl-edge the coming turn of the century.

Certain things, though, have notchanged. A campaign still needs a mem-orable, thematic name-and it's still justas likely not to have one. If anything, to-day's larger, more amorphous effortshave names that are duller than ever.

My original "Name That Campaign"posited an alternative-a chart that letyou try my personal formula for craftingthat all-important capital campaignmoniker. Today's new priorities and lan-guage suggest it's time to update theterms of 15 years ago.

Using this naming system is as easy asordering from a Chinese menu. Simplyscan the columns, select the terms thatseem appealing, and presto-your cam-paign has a name. If you choose Nos. 43,29, and 55, for example, you'll have"Mandate for an Extraordinary Person-al Sacrifice" (a favorite of mine). If youbypass the appetizer and choose onlyfrom columns B and C, Nos. 56 and 26give you "A Monument to Meaning"(which is certainly timely).

Some combinations work better thanothers, of course. (Beware the unfortunateacronym-"Advancing a Spirit of Ser-vice," for example.) Even so--and with-out counting the variations you canachieve by switching gerunds to infinitives,changing singulars to plurals, and swap-ping the articles "a" and "the"-there are343,000 combinations here. You may findthe right name for your campaign, oneworthy of the coming millennium. itlt

Bernice Ashby Thieblot heads the North Charles

Street Design Organization in Baltimore

64 CASE CURRENTS

COLUMN A COLUMN B COLUMN CI. To Structure A New Paradigm2. Milestones Toward A Magnificent Millennium3. Innovating A Global Interface+4. Transforming A Spirited Ideal5. To Perpetuate Traditional Values6. To Hamess A Vast Tedmology7. Envisioning A Vision of Vision8. Toward A Greater Endowment9. To Honor A Tradition of Learning10. Advancing Advanced Advances11. Quest for A Commitment to Quality12. Time for A Heritage of Innovation13. In Support of The Enrichment of Leadership14. To Celebrate A Century of Service15. °enormity for A Spirit of Resolve16. To Create A More Perfect Archetype17. To Bestow A More Purposeful Purpose18. To Share An Ancient Gift19. To Burnish A Bold lladition20. Program for A Keystone of Greatness21. Investment in A Foundation of Abundance22. Glorifying Access to Beneficence23. Exalting The Margin of Excellence24. Transcending The Magnitude of PrOgren25. Achieving An Eminent Institution26. Signaling An Abundance of Meaning '27. Force for A Remarkable Imperative28. Access to A More Accessible Access29. Imperative for An Extraordinary Decade30. To Honor Another Century31. In Search of Our Greatest Strength%32. To Affirm A Lofty Achievement33. Frontier of A Noble Dream34. Pursuit of An Illustrious History35. Resolving A Mighty Fulfillment36. To Perpetuate A Signal Honor37. To Sustain A Renowned Presence38. Enhancing A Glorious Difference39. Fulfilling A Grand Development40. To Surpass . A Majestic Promise41.42.

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43. Mandate for A Superb Idea44. Reaffirming A Peerless Covenant45. Building Caring Philanthropy46. Maximizing Matchless Money47. To Unite A Superior Structure48. Resources for The Vastness of Opportunity49. To Maintain An Enduring Edifice50. Engineering An Edifice for Edification51. Ennobling A Capacity for Generosity52. Billions for A Breathtaking Bimillennial53. Safeguarding A Splendid Investment54. Providing The Occurtence of Giving55. Strengthening A Generous Personal Sacrifice56. Chiseling A Monument to Expansion57. To Forge A Vital Link58. To Renew An Unbroken Chain of Promises59. Restoring A Tower of Truth60. Extending A New Age of Unity61. To Seek Two Centuries of The Future62. Pledging A World of Change .63. Preserving The Elements of Virtue64. To Dream of A Gracious Prominence65. To Cultivate The Rewards of Vitality66. Keeping Viable A Viable Alternative67. Fostering A Meaningful Legacy68. Sharing A Momentous Bond69. Progress Toward A Significant Venture70. To Champion A Notable Enterprise

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Appendix E

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Appendix F

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Board of Trustees9/12/86 105-6

Remarks b Mr. William A. Schre er, Chairman, The C for Penn State

Following remarks regarding The Campaign for Penn State, Mr. William A. Schreyer,Chairman, acknowledged the tremendous efforts being put forth by everyoneinvolved with the Campaign -- the staff, the volunteer leadership, themembers of the Executive Committee, the members of the National CampaignCommittee, and all those persons who have committed their time or resourcesto the Campaign. Mr. Schreyer introduced the Campaign Vice Chairmen --Edward R. Hintz, Joseph V. Paterno and Frank P. Smeal and the Campaign Treasu:el,Robert E. Eberly, Sr. He recognized the honorary members of the CampaignCommittee -- Trustee Emeriti Hallowell, Shoemaker and Ulerich.

Mr. Schreyer read a letter from Governor Dick Thornburgh conveying hisbest wishes for a successful fundraising campaign. (Letter on file inthe Office of the Board of Trustees.)

Mr. Schreyer presented for the trustees' approval the following resolutionendorsing the goal of The Campaign for Penn State:

WHEREAS, The Campaign for Penn State is critical to attainingthe University's overarching goal as identified by the strategicplanning process "to secure its status among the best publicresearch universities in the nation";

WHEREAS, the University has generated a six-fold increase inprivate support over the last decade, from $5.8 million in 1975-76to $37.6_ million in 1985-86;

WHEREAS, the University has performed especially well inattracting corporate gift support over the years, attractingnearly twice the national average in 4orporate giving to highereducation institutions (41 percent of Penn State's total giftsupport derived from corporations in 1985-86);

WHEREAS, total private gift support to higher educationincreased 13 percent in 1984-85 to a record $6.3 billion,indicating a favorable economic climate for fund raising;

WHEREAS, the University has attracted excellent voluntaryleadership to spearhead The Campaign for Penn State; and

WHEREAS, the Campaign priorities identified by theUniversity's academic officers have been endorsed by allappropriate bodies;

THEREFORE, BE IT RESOLVED, That the Board of Trustees of ThePennsylvania State University approves the monetary goal of TheCampaign for Penn State as will be announced by the CampaignExecutive Committee on. September 13, 1986, and extends its warmsupport and encouragement to the Committee in this most importantchallenge.

The Board of Trustees approved the above resolution unanimously.

189

Appendix G

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Appendix H

ALUMNI/DEVELOPMENT DATA SYSTEM COMPANIES

Vendor Address

Access International, Inc. 432 Columbia StreetCambridge, MA 02141

Advocate Development Corporation 891 Montvale AvenueStoneham, MA 02180

Blackbaud, Inc. 4401 Belle Oaks DriveCharleston, SC 29405-8530

Business Systems Resources, Inc. 1000 Winter Street, Suite 1200Waltham, MA 02154

Datatel, Inc. 4375 Fair Lakes CourtFairfax, VA 22033

Information Associates, Inc. 3000 East Ridge RoadRochester, NY 14622

Iowa System for Institutional Advancement, Inc. 180 North Riverside DrivePost Office Box 2808Iowa City, IA 52244-2808

PG Ca lc Incorporated

Quodata Corporation

Jeffery R. Shy Associates, Inc.

Systems & Computer Technology Corporation

TARGET/1 Management Systems

Viking Systems, Inc.

192181

129 Mount Auburn StreetCambridge, MA 02138

One Union PlaceHartford, CT 06103

4732 East Long Hill RoadWilliamsburg, VA 23188

4 Country View RoadMalvern, PA 19355

27 Millen DriveAuburn, ME 04210

25 Church StreetBoston, MA 02116

Appendix I

183193


Sample Gift Chart Goal: $10,000,000

Number ofGifts

Needed

In theRange of

Total forthe Range

CumulativeTotal

Number ofProspectsRequired

1 $2,000,000 $2,000,000 $2,000,000 52 $1,000,000 $2,000,000 $4,000,000 103 $500,000 $1,500,000 $5,500,000 154 $250,000 $1,000,000 $6,500,000 20

10 $100,000 $1,000,000 $7,500,000 5020 $50,000 $1,000,000 $8,500,000 10030 $25,000 $750,000 $9,250,000 15050 $10,000 $500,000 $9,750,000 250

Many <$10,000 $250,000 $10,000,000 Many

Sample Gift Chart

Number of In theGifts Range of

Needed

Goal: $100,000,000

Total for Cumulativethe Range Total

Number ofProspectsRequired

1 $20,000,000 $20,000,000 $20,000,000 51 $10,000,000 $10,000,000 $30,000,000 52 $5,000,000 $10,000,000 $40,000,000 104 $3,000,000 $12,000,000 $52,000,000 206 $1,000,000 $6,000,000 $58,000,000 30

10 $500,000 $5,000,000 $63,000,000 5030 $250,000 $7,500,000 $70,500,000 15050 $100,000 $5,000,000 $75,500,000 250

100 $50,000 $5,000,000 $80,500,000 500200 $25,000 $5,000,000 $85,500,000 1000500 $10,000 $5,000,000 $90,500,000 2500

Many < $10,000 $9,500,000 $100,000,000 Many

194

AppendixINVESTMENT COMMITMENT

FOR CAPITAL PROJECTS

In consideration of my interest in education and for and in consideration of the similar promises of other donors, and to induce othersto contribute to College/University and in consideration of the University's promise to rate this gift as specifiedherein and the University's actions in reliance on this pledge, and other good and valuable consideration, the receipt of which is herebyadtnowledged, and intending to be legally found hereby, I/we hereby pledge and promise to pay toCollege/University the sum of S

This gift will be used for

and this promise to useand the use by the University of the amount pledged shall in itself constitute lull and adequate consideration for this pledge.

This commitment will be paid to College/University in the following manner

PLEDGE YEAR 1 S

PLEDGE YEAR 2 S

PLEDGE YEAR 3 5

PLEDGE YEAR 4 S

PLEDGE YEARS S

Total amount for this year's gift is enclosed.

I/We prefer to make the annual gifts in the month of beginning 19_.

Additional funds will be forthcoming through matching gifts from my company or my spouse's company which is

(Company Name)

The above pledge will include matching gifts from my company or my spouse's company which is

(Company Name)

This pledge is to be irrevocable and a binding obligation upon me, my estate, my executors and my heirs. This pledge shall begoverned and interpreted under the laws of the State or Commonwealth of . In witness I/we hereby sign and sealthis Pledge Agreement with the intention to be legally bound hereby.

Signature Date

Signature

Please acknowledge and credit this gift in the following way:

Date

Name(s) (please print)

Street

City. State, Zip Code

Please make checks payable toCollege or University

THE PLEDGE YEAR runs fromJuly I through June 30.LCBP

18519 5

Pledge Accepted BYOffice of University Development

COLLEGE OR UNIVERSITYStreet AddressCity, State Tip Code

Staff Representative

University Officer

Appendix K

INVESTMENT COMMITMENT INTHE COLLEGE OR UNIVERSITY

To make commitment to The College or University, I/ue mister total gift/pledge of $

This gift will be mod fox

This commitment will be paid to The College or Univetsby is the following manner:

PLEDGE YEAR 1

PLEDGE YEAR 2

PLEDGE YEAR 3 $

PLEDGE YEAR 4

PLEDGE YEAR S

Total amount for this peat's gift is enclosed.

I/We prefer to make the annual gifts in the month of

1/We prefer to make this gift in the following manner.

Cash Securities, or Real PropertyLife InsurancePooled Income Rind

beginning

Charitable TrustGift AnnuityOther (please specify)

Additiocud funds will be forthcoming through matching gifts from my company or my spouse's company which is

Signature

Sigeature

Company Name

Due

Date

Please adcnowledge and credit this gift in the following war.

Nme(s) (please print)

Street

Gcy, Stith Zip Code

Pleas make cheeks payable toCollege or University

Pledge Accepted BrOffice of University Development

COLLEGE OR UNIVERSITYStreet AddressOtt State Tip Code

THE PLEDGE YEAR runs from Staff RepresentativeJuly I through June 30.

18 96

University Officer

Appendix LINVESTMENT COMMITMENT IN

THE COLLEGE OR UNIVERSITY

In consideration of my interest in education and for and in consideration of the similar promises of other donors, and to induce othersto contribute to College/University and in consideration of the University's promise to use this gift as specifiedherein and the University's actions in reliance oa this pledge, and other good and valuable consideratMo, the receipt of which is herebyacknowledged, and intending to be legally bound hereby, I/we hereby pledge and promise to pay toCollege/University the sum of

This gift will be used for

and this promise to useand the use by the University of the amount pledged shall in itself coestitute full and adequate consideration for this pledge.

This commitment will be paid to THE PENNSYLVANIA STATE umvesisrry in the following manner.

PLEDGE YEAR 1 5

PLEDGE YEAR 2

PLEDGE YEAR 3

PLEDGE YEAR 4

PLEDGE YEARS

Total amount for this year's gift is enclosed.I/We prefer to make the annual gifts in the month of beginning 19_.

I/We prefer to make this gift in the following manner.

Cash Securities, or Real Property Charitable TrustLife Insurance Gift AnnuityPooled Income Pund Other (please specify)

Additional funds will be forthcoming through matching gifts from my company or my spouse's company which is

Company Name

This pledge is to be irrevocable and a binding obligation upon MC, my estate, my executors and my heirs. This pledge shall begoverned and interpreted under the laws of the Commonwealth of Pennsylvania. In witness whereof. I/we hereby sign and seal thisPledge Agreement with the intention to be legally bound hereby.

Spume Date

Signature

Please acknowledge and ciedit this gift in the following way:

Date

Name(s) (Meese print)

Street

Ory, State, Zip Code

Please make checks payable totCollege or University

THE PLEDGE YEAR nuts fromJuly I through June 30.l lip University Officer

Pledge Accepted BrOf of University Development

COLLEGE OR UNIVERSITYSaw AddressCity, State Zip Code

Staff Representative

BEST COPY AVAILABLE 189

1 :7

Appendix M

191198


CASECAMPAIGN

STANDARDSMANAGEMENT AND REPORTINGSTANDARDS FOR EDUCATIONAL

FUND-RAISING CAMPAIGNS

Endorsed byAmerican Association of Colleges of Nursing (AACN)American Association of Community Colleges (AACC)

American Association of Fund-Raising Counsel (AAFRC)American Council on Education (ACE)

American Prospect Research Association (APRA)Association of Community College Trustees (ACCT)

Association of Healthcare PhilanthropyCanadian Council of Advancement Executives (CCAE)

The College BoardCouncil of Graduate Schools (CGS)

Council of Independent Colleges (CIC)Lilly Endowment, Inc.

National Association of College and University Business Officers (NACUBO)National Association of Independent Colleges and Universities (NAICU)

National Association of Independent Schools (NAIS)National Association of State Universities and Land-Grant Colleges (NASULGC)

National Council for Resource Development (NCRD)National University Continuing Education Association (NUCEA)

COUNCIL FOR ADVANCEMENT AND SUPPORT OF EDUCATIONApproved by the CASE Board of Rustees, April 18, 1994

© 1994, Council for Advancement and Support of Education; reprinted with permission

Appendix M I 193

Table of Contents

FOREWORD

CAMPAIGN REPORTING ADVISORY GROUP ii

PREFACE: WHY INSTITUTIONS NEED CAMPAIGN STANDARDS i i i

I. GUIDELINES FOR CAMPAIGN MANAGEMENTCampaign DesignCampaign PlanCampaign Purposes 2

Campaign Marketing 2

Campaign Recognition 3

II. CAMPAIGN REPORTING STANDARDSCampaign Period 4

Pledge-payment Period 4

Fundamental Principles of Campaign Counting 4

Advance-gifts Phase/Nucleus-fund Phase 4

What to Report 5

When to Report Gifts 5

How to Report Gifts 5

Pledges 5

Exclusions 6

III. STANDARDS FOR REPORTING CERTAIN TYPEISOF GIFTS AND PLEDGESCash 7

Marketable Securities 7

Closely Held Stock 7

Gifts of Property 7

Charitable Remainder Trusts and Pooled Income Funds 7

Charitable Gift Annuities 8

Remainder Interest in a Residence or Farm 8

Charitable Lead Trusts 8

Wholly Charitable Trusts Administered by Others 9

Non-government Grants and Contracts 9

Testamentary Pledge Commitments 10

Realized Testamentary Gifts I 1

Life Insurance I I

Special Circumstances 12

200

194 I The Capital Campaign in. Higher Education

APPENDIX A: Annual Campaign Activity Survey 13

APPENDIX B: Campaign Report I: Results by Objective and Source 15

APPENDIX C: Campaign Report II: Revenue Projection by Gift Type 16

APPENDIX D: Present-value Calculation: Background and Methodology 17

APPENDIX E: Life Expectancy Tables, Ages 25-90 18

APPENDIX F: Sample Deferred Pledge Agreement 19

APPENDIX G: Sample Contract to Make a Will 21

Statements from AGB and NACUBO:

" The Board of Directors of the Association of

Governing Boards of Universities and Colleges

(AGB)commends CASE for developing the CASE

Campaign Standards. AGB endorses the standards

except for those provisions addressing testamentary

bequests and deferred gifts. AGB urges institutions

to count bequests only when actually realized. With

regard to deferred gifts, AGB urges that campaign

totals be based on present value only."

"The National Association of College and Univer-

sity Business Officers (NACUBO) endorses the man-

agement and non-financial reporting standards devel-

oped by CASE that are presented in this publication.Application of these standards by colleges and universi-

ties will contribute to an industry-wide improvement in

the accurate determination and interpretation of fund-

raising information.

Institutions should be mindful that the standardsregarding reporting of testamentary pledges differ from

generally accepted accounting practices and hence will

lead to reporting differences between these manage-

ment reports and general purpose financial statements

of the institution."

All inquiries should be directed to theCouncil for Advancement and Support of Education

Suite 400, 11 Dupont Circle, Washington, DC 20036-1261Telephone: (202) 328-5900 Fax: (202) 387-4973

Internet: [email protected]

201

Appendix M I 195

Foreword

he document you are reading isthe culmination of a major effortby the educational community to

bring a higher standard of conduct to one of themost visible activities in the academy: the fund-raising campaign. The officers and trustees ofthe Council for Advancement and Support ofEducation (CASE) urge all institutions that areplanning or conducting campaigns to adoptthese standards. They go into effect for theacademic year beginning July I, 1994, withreports on the fiscal 1994-95 results due toCASE in December 1995.

This document represents four years of inten-sive effort by a small group of volunteer andstaff professionals who worked tirelessly toreach consensus on a complex undertaking. TheCampaign Reporting Advisory Group preparednumerous drafts and distributed them for com-ment to CASE members, selected committees ofthe National Association of College and Uni-versity Business Officers, members of theAmerican Association of Fund-Raising Coun-sel, educational representatives on the board ofthe National Committee on Planned Giving,and many other parties. The advisory commit-tee also considered the scores of comments theyreceived, debated the issues, and ultimatelycame to the conclusions in this document.

For their selfless commitment of time and ex-pertise, I want to express CASE's deep thanks toall the members of the Campaign ReportingAdvisory Group, whose names appear on thenext page.

But two people deserve special credit: Dr. VanceT. Peterson, chair of the advisory group and vice

president for institutional advancement at Occi-dental College; and Mary Joan McCarthy, vicepresident for administration of the professionalservices group at CASE. Although universalvoluntary compliance will ultimately be themeasure of these standards' effectiveness, weowe these two professionals enormous grati-tude for their work in bringing them about.

To encourage all educational institutions in theUnited States and Canada to comply with thesestandards, I have asked associations in bothcountries to endorse them. I am pleased thatseveral leading corporations and foundationshave also indicated interest in supporting them.CASE is grateful to Lilly Endowment, Inc. forits endorsement and for funding the printing anddistribution of CASE Campaign Standards.

So that professionals will understand and usethe standards, CASE will include training ses-sions about them at many of its educationalfund-raising conferences and at its eight NorthAmerican district conferences in 1994 and I995.Also, to encourage consistency among report-ing standards, CASE will begin to revise the giftreporting section of the 1982 document Man-agement Reporting Standards for EducationalInstitutions: Fund Raising and Related Activi-ties. When that revision is complete, CASEplans to combine into one publication the twostandards documents.

All of us who have contributed to these stan-dards hope and expect that they will strengtheneducation and the philanthropic spirit thatundergirds it, for the future benefit of society.

Peter McE. BuchananPresident, Council for Advancement

and Support of Education

202


ii

Campaign Reporting Advisory Group

Vance T. Peterson, Ph.D., ChairVice President, Institutional AdvancementOccidental College

G. David GearhartSenior Vice President for

Development and University RelationsThe Pennsylvania State University

Martin GrenzebachChairmanJohn Grenzebach & Associates, Inc.

Warren HeemannVice President for Developmentand Alumni Relations

University of Chicago

James A. HyattAssociate Chancellor for

Budget and PlanningUniversity of California, Berkeley

2 03

Roy E. MuirAssociate Vice President for DevelopmentUniversity of Michigan

James F. RidenourSenior ConsultantMarts & Lundy, Inc.

STAFF

Richard A. EdwardsSenior Vice PresidentProfessional Services Group

CASE

Mary Joan McCarthyVice President for AdministrationProfessional Services Group

CASE

Appendix M I 197

Preface iii

Why Institutions NeedCampaign Standards

eyhe capital or comprehensive fund-raising campaign is a vehicle forfocusing attention upon the needs

and aspirations of an educational community. Acampaign is thus an important event in the lifeof any institution striving for greater financialstability and excellence.

The recent trend toward campaigns that raisehundreds of millions or even billions of dollarshas boosted the visibility of fund raising ingeneral and the role of campaigns in particular.This visibility has also heightened the pressureon fund raisers and financial managers to ensuretheir campaigns' success.

At the same time, and in part because of theirsheer size, campaigns are being scrutinizedwith growing intensity by faculties, governingbodies, donors, and beneficiaries. Together withthe public at large they want, and deserve, toknow exactly what impact such campaigns willhave on their institutions.

It is, therefore, of vital importance that institu-tions have two measures for their work: first, anobjective means to compare one campaign toanother, and second, a rational way to discernhow well any given campaign has met the goalsthat spurred the institution to conduct the cam-paign in the first place.

This document is designed to address these twoissues. Its goal is to establish guidance formanaging campaigns and standards for report-ing campaign gifts in the United States andCanada. Such standards should help avoid in-vidious comparisons among campaigns of dif-ferent types and purposes. They should also

help institutions articulate the impact of anygiven campaign to various constituencies.

These standards depend upon three fundamen-tal concepts:

( I ) campaign reports should separate resultsby (a) the campaign's featured objectives'and (b) the campaign's other objectives;

(2) campaign reports should separate outright/current gifts and pledges from deferredgifts the institution expects to receive af-ter the solicitation and pledge-paymentperiods end; and

(3) the reports should record these deferredgifts at both their face value and theirdiscounted present value. If bequest ex-pectancies or the death benefit of lifeinsurance are counted, they should betreated in the same way.

All of these measures are important to helpingfaculty, volunteers, donors, institutional admin-istrators, and the general public reach a com-mon understanding of the true impact of cam-paign fund raising.

These standards are rooted in two importantconvictions. One is that how well the campaignmeets its objectives is far more important thanthe size of its dollar goal. The other is thatsuccess should be measured primarily in termsof how well the institution meets its own needsand fulfills its unique mission. Working fromthese convictions, the many people who helpedcreate these standards have a lofty ambition forwhat the standards will ultimately achieve.

' Every campaign is designed to help meet specific institutional needs. While all educational institutions have manyongoing needs for outside funding, those specifically featured in the campaign priorities list or case statement areconsidered "featured objectives."

,204


iv

They, and the Council for Advancement andSupport of Education, believe that by settinghigh standards for conducting campaigns andreporting their results, philanthropy will bestrengthened and protected, and public confi-dence in education will be enhanced.

CASE Campaign Standards is intended as asupplement to Management Reporting Stan-dards for Educational Institutions: Fund Rais-ing and Related Activities (CASE/NACUBO,1982). Each educational institution conductinga campaign is asked to file a report annuallywith CASE.

The report to CASE consists of Appendices Aand B, which are included on pages 13-15 in thisdocument. CASE will organize and publish theinformation from these reports annually as aservice to its membership and the public atlarge. The CASE report will provide fund-rais-ing professionals, consultants, educational lead-ers, and volunteers with a common language fordiscussing their campaigns and comparing themfrom institution to institution.

Appendix A consists of a questionnaire aboutthe institution and its campaign. Appendix B:Campaign Report I is a form for reporting acampaign's financial results in three primarycolumns plus two columns for totals:

(I) current gifts and pledges reported at facevalue;

(2) deferred gifts (future commitments) re-ported at face value for featured objec-tives and other objectives;

(3) deferred gifts (future commitments) re-ported at the gift's discounted presentvalue for featured objectives and otherobjectives;

(4) the sum of 1 and 2 above; and

(5) the sum of I and 3 above.

205

This multi-column reporting approach is theresult of lengthy discussions with CASE mem-bers about the pros and cons of reporting de-ferred gifts (future commitments) at presentvalue versus face value. While discounting topresent value represents a substantial changefrom past practice, many people strongly sup-port its use as a more realistic indicator of thefuture value those dollars will have when theinstitution actually is able to spend them. Also,this method accounts for any pay-out obliga-tions to the donor.

At the same time, this approach recognizes theconcern about the potential negative impactpresent-value discounting could have on do-nors. When donors make an irrevocable de-ferred gift, they turn over an asset to the institu-tion and give up their control of it. And, eventhough the institution may pay back a substan-tial amount to the donor and will not be able tospend the asset for some time into the future,many donors consider the current face value ofthe asset as the amount that he or she gave to theinstitution.

Therefore, the standards create three primaryreporting columns, plus two columns for totals,to accommodate these concerns. Those who be-lieve that publicly displaying the present value ofdeferred gifts will, in fact, discourage donorsfrom making such gifts may choose to reportonly the first two columns to their constituents,but those institutions should report all columnson Appendix B to their appropriate governingboards and to CASE. CASE will in turn report allcolumns in its published report of campaignresults. These standards are, therefore, silent onthe question of how an institution should pub-licly recognize its donors.

Vance T. PetersonChair, Campaign Reporting Advisory GroupVice President, Institutional Advancement,

Occidental College

Appendix M I 199

Chapter I

Guidelines for Campaign Management

und-raising campaigns for edu-cational institutions, often re-ferred to as capital campaigns,

are a means by which institutions intensify fora finite period their continuing efforts to raisemoney. They have evolved from campaigns thatmost often sought cash over a period of a year ortwo for a single capital objective, such as theconstruction of a building, into complex under-takings. Today, campaigns may run for sevenyears or more and may seek both cash and intricatedeferred gifts for current operations and a varietyof capital purposes (including building construc-tion, renovation, and endowments). Whereasonce campaigns usually served single, readilyunderstood purposes and had goals in the tens ofmillions of dollars, they now are often organizedas responses to the needs of entire campuses,and success is measured in the hundreds ofmillions, even billions of dollars.

The scope of today's campaigns, their complex-ity, the sophisticated knowledge required to un-derstand them, and their promotional nature to-gether can create misunderstanding about thepurposes of campaigns and what they will achieve.When the critical needs of an institution areidentified, a goal is set that would fund them, andthe goal is attained, the faculty, administration,and volunteers assume the institution's problemsare solved. Too often this is not the case, leavingmembers of the academic community and thegeneral public confused and dissatisfied.

The following recommendations are offered tohelp alleviate these concerns.

CAMPAIGN DESIGN

Care should be taken to design campaigns thatreconcile the needs of the institution with theinterest and capacity of its constituencies to fundthem. The strength of the development pro-gram, including the size of the investment thathas and will be made in it throughout the cam-paign, must also be factored into the design. Thetendency of institutions to focus their attentionon the size of the goal of their proposed cam-paign rather than what should and can realisti-cally be achieved is probably the greatest causeof dissatisfaction with campaign results. Whenthe desire to have a large goal influences aninstitution's decision regarding campaign ob-jectives, the length of the advance-gifts phase(also known as the nucleus fund), the durationof the public phase, and the accounting policiesit adopts, that campaign will tend to favor publicrelations over academic purpose.

CAMPAIGN PLAN

A written plan should be prepared and reviewedby all appropriate bodies of the institution. Thisdocument should describe, at a minimum:

(1) the institution's financial needs that willbe addressed;

(2) the campaign reporting policies to whichthe institution will adhere (including thetreatment of pledges, deferred gifts, andgifts-in-kind);

(3) the manner in which exceptions to thosepolicies will be considered and acted upon;

206


2

(4) the tentative goal for both featured objec-tives (usually endowment and construc-tion) and other objectives (usually expend-able programmatic support and annual fundrevenues);

(5) an objective analysis of the fund-raisingpotential of the institution;

(6) the purpose and duration of the advance-gifts phase of the campaign; and

(7) the duration of the public phase of thecampaign.

The plan should be approved formally by thecommittee organized to assist in the planning ofthe campaign and the appropriate governing boardof the institution. It also should be reviewed andcommented upon by all other interested bodies ofthe institution.

It follows that the advance-gifts phase of acampaign cannot begin until the campaign planis approved and that the institution should notreach back and credit to its campaign gifts thatwere received prior to the plan's endorsement.

CAMPAIGN PURPOSES

Those planning campaigns are encouraged tokeep in mind that campaigns can achieve sev-eral purposes and should design their cam-paigns with all those purposes in mind. Theseinclude the articulation and dissemination of:the case for support of the institution; the definingof its priority needs; the nurturing of the develop-ment program and staff; the broadening and deep-ening of volunteer participation; and the strength-ening of the working relationship among theinstitution's volunteer leadership, including itsgoverning board, faculty, students, administra-tion, alumni, and friends.

287

They should also keep in mind that no campaignwill be the last campaign, and care mustbe takento conduct it in a way that will serve the institution's

long-term best interests. Neither the needs of theinstitution nor the results achieved by thecampaign's success should be exaggerated. Itshould be made clear that high participationby young as well as more mature alumni, bypersons of modest means as well as the wealthywill be an important factor in gauging thecampaign's success. The gratitude of the institu-tion and those volunteers working on its behalfshould be communicated promptly and graciouslyto all who have made gifts. All volunteers shouldbe kept informed of the campaign's progress in asystematic way and recognized publicly for theimportant role they played in the campaign.

Finally, when planning a campaign, consider-ation should be given to the work that needs tobe done following its formal conclusion. Vol-unteers need to be thanked, pledges collected,and reports made and distributed. And mostimportant, serious and imaginative thought mustbe given to ways in which the valuable relation-ships established in the course of the campaignwill be not only maintained but nurtured andstrengthened during the years that follow.

CAMPAIGN MARKETING

Campaign marketing should be proportional toinstitutional requirements. While campaign casestatements and other literature or presentationsshould be designed to inspire and motivate do-nors, such materials should not be used to distortinstitutional accomplishments, characteristics, orcapabilities. Campaign managers also are cau-tioned to balance the marketing of outright anddeferred support in their presentations. Both typesof gifts play an important role in campaigns, andboth should be given visibility in a well-roundedcampaign.

Appendix M I 201

CAMPAIGN RECOGNITION

Special care should be taken by campaign man-agers to devise appropriate ways of recognizingall contributors during a capital campaign (keep-ing in mind Internal Revenue Service regula-tions on premiums) even if their gifts may falltechnically outside of what is appropriatelycounted according to these standards. For ex-ample, while most institutions currently choose

not to include testamentary pledges of any typein their campaign totals, the individuals respon-sible for making such commitments during thecampaign still should be recognized in somefashion for having responded to the institution'srequest for increased support. Most institutionsrecognize testamentary commitments through aspecial recognition society of some type.

208


Chapter II 4

Campaign Reporting Standards

CAMPAIGN PERIOD

For purposes of these standards, the "CampaignPeriod" refers to the total time encompassed bythe active solicitation period for the campaign,including the advance-gifts phase. CASE rec-ommends that no campaign period exceed sevenyears in duration. Generally speaking, shortercampaign periods are preferable to longer ones.

PLEDGE-PAYMENT PERIOD

The pledge-payment period should not exceedfive years.

FUNDAMENTAL PRINCIPLES OFCAMPAIGN COUNTING

The following basic principles for countingcampaign gifts are applicable to all institutionsand all types of campaigns:

(1) only those gifts and pledges actually re-ceived or committed during the specificperiod of time identified for the campaign(a period up to seven years including theadvance-gifts phase) should be countedin campaign totals;

(2) the advance-gifts phase of a campaign isalways a part of the designated campaignperiod, and commitments reported forthis phase must actually have been re-ceived or pledged during this specifiedperiod within the campaign time frame;

gifts and pledges may be counted to onlyone campaign; and

(3)

209

(4) the value of any cancelled or unfulfilledpledges must be subtracted from cam-paign totals when it is determined theywill not be realized.

ADVANCE-GIFTS PHASE/NUCLEUS-FUND PHASE

The advance-gifts or nucleus-fund phase is thatperiod of time prior to public announcement ofthe campaign, or the campaign's official goal,during which pace-setting gifts are sought fromindividuals and organizations closest to the in-stitution. As indicated above, the advance-giftsphase should be considered a part of the cam-paign period.

Defining the advance-gifts phase as part of thecampaign period will also help ensure that so-called "reach back" gifts are not counted.

It is preferable that credit for gifts received inthe advance-gifts phase of a campaign be lim-ited to those gifts given for featured objectives,thereby strengthening the focus of campaignefforts and eventual results. Another approachis to have a comprehensive advance-gifts phase,during which all gifts and pledges are counted.If this approach is adopted, it is critical thatcampaign managers explain to institutional per-sonnel and campaign volunteers that reportedresults will inflate somewhat the true impact ofthe campaign effort.

Whichever method is used, the key principles atwork are:

(1) the advance-gifts period should be limitedto a set number of months or years, and

Appendix M I 203

5

(2) this period of time should be included aspart of the total campaign duration.

WHAT TO REPORT

All gifts and pledges falling into categoriescovered by these standards may be reported.The spirit of these standards, however, is that itis never appropriate to report only one numberwhen announcing campaign results. As a mini-mum, the following results should be reportedto the institution's board and in the report toCASE:

(1) the total of outright gifts and pledgesreceived, reported at face value, and

payable within the campaign period andpost-campaign accounting period asspecified in the campaign plan;

(2) the total of deferred (future) commit-ments, reported at face value, which willbe received at an undetermined time inthe future;

(3) the total of deferred (future) commit-ments, discounted to present value, whichwill be received at an undetermined timein the future;

(4) the grand total of 1 and 2 above; and

(5) the grand total of 1 and 3 above.

Additionally, totals for the campaign's featuredobjectives vs. other campaign objectives wouldbe appropriate in most campaign reporting.

As noted in the preface, institutions that believepublicly displaying the present value of de-ferred gifts will in fact discourage their donorsfrom making such gifts may choose to reportonly the first two columns to their constituents,but should report all columns from Appendix Bto their boards and in their reports to CASE.

Both campaign staff and counsel should takepains to ensure that campaign publicity clearlystates the results of the campaign in accordancewith these categorical standards.

WHEN TO REPORT GIFTS

Outright gifts should be reported only whenassets are transferred irrevocably to the institu-tion or an institutionally related foundation.Deferred gifts should be reported only whenassets are transferred or, in cases where noassets are transferred, when a legally bindingdeferred pledge agreement or other irrevocabledocument is consummated with the institution.

HOW TO REPORT GIFTS

Appendices B and C are viewed as basic tools ofreporting campaign activity. Appendix B: "Cam-paign Report I" summarizes results by cam-paign objectives and. sources, further separatesgifts and pledges to be received during thecampaign solicitation period or the immediatepost-campaign accounting period from com-mitments of funds to be received at some inde-terminate time in the future, and records de-ferred gifts at both face value and present value.

Appendix C: "Campaign Report II" summa-rizes gifts, pledges, and deferred gift arrange-ments by type, according to when they will bereceived by the institution. This "cash flow"projection report is important to institutionalbudget planners and others interested in under-standing the immediate and future impact of acampaign on the institution.

PLEDGES

(1) Oral Pledges: Oral pledges should not bereported in campaign totals. On the rareoccasion when special circumstances may

210


6

warrant making an exception, the advance-ment officer should write to the indi-vidual making an oral pledge to documentthe commitment, place a copy of the writ-ten commitment in the donor's file, andgain specific written approval from a giftacceptance committee made up of institu-tional and volunteer representatives.

(2) Pledges of Cash: Pledges of cash shouldbe written and should commit to a specificdollar amount that will be paid accordingto a fixed time schedule. The pledge pay-ment period, regardless of when the pledgeis made, should not exceed five years.Therefore, a pledge received even on thelast day of the campaign is counted incampaign totals and may be paid over afive-year period.

TestamentaryPledges and Deferred PledgeAgreements (see Appendices F and G).

(3)

EXCLUSIONS

The following types of funds should be ex-cluded from campaign report totals:

(1) gifts or pledges, outright and deferred,that already have been counted in previ-ous campaigns, even if realized during thecampaign-reporting period;

(2) investment earnings on gifts, even if ac-crued during the campaign-reporting per-iod and even if required within the termsspecified by a donor (the only exceptionpermitted to this exclusion would be in-

9 1

terest accumulations counted in guaran-teed investment instruments that maturewithin the time frame of the campaign,such as zero coupon bonds);

(3) earned income, including transfer pay-ments from medical or analogous prac-tice plans;

(4) surplus income transfers from ticket-basedoperations, except for any amount equalto that permitted as a charitable deductionby the IRS/Revenue Canada;

(5) contract revenues;

(6) contributed services, except for thosepermitted as a charitable deduction byIRS/Revenue Canada; and

governmental funds. It is recognized thatcertain state and federal government pro-grams requiring private matching fundsbear a special relationship to the encour-agement of philanthropy. Nevertheless,the difference between public and privatesupport is profound within the Americantradition.

(7)

Campaigns are clearly instruments of phi-lanthropy while governments are channelsfor the implementation of public policy.While both philanthropy and public policymay be motivated by compassion for oth-ers, only philanthropy involves the dispo-sition of privately held resources for thepublic good. Governmental funds shouldNOT be reported in campaign totals.

Appendix M I 205

Chapter III

Standards for Reporting Certain TypesOf Gifts and Pledges

CASH

Report cash at full value as of the date received bythe institution.

MARKETABLE SECURITIES

Marketable securities should be counted at theaverage of the high and low quoted selling prices(or the average of the bid/ask in the case of certainsecurities) on the date the donor relinquisheddominion and control of the assets in favor of theinstitution or trust. Exactly when dominion andcontrol has been relinquished by a donor dependsupon the method of delivery of the securities tothe donee. These reporting standards do notaddress the multitude of tax rules regarding thedelivery of securities by the donor to the donee.

CLOSELY HELD STOCK

Gifts of closely held stock exceeding $10,000 invalue should be reported at the fair market valueplaced on them by a qualified independent ap-praiser as required by the IRS' for valuing gifts ofnonpublicly traded stock. Gifts of $10,000 or lessmay be valued at the per-share cash purchase

price of the most recent transaction. Normally,this transaction will be the redemption of thestock by the corporation.

If no redemption is consummated during thecampaign period, a gift of closely held stock maybe credited to campaign totals at the value deter-mined by a qualified independent appraiser. Fora gift of $10,000 or less, when no redemption hasoccurred during the campaign period, an inde-pendent CPA who maintains the books for a

closely held corporation is deemed to be quali-fied to value the stock of the corporation.

GIFTS OF PROPERTY

Gifts of real and personal property for whichdonors qualify for a charitable deduction shouldbe counted at their full fair-market value. Gifts inkind, such as equipment and software, shall becounted at their educational discount value, which,forpurposes of these standards of reporting, shallbe deemed to be fair-market value.

Caution should be exercised to ensure that onlygifts that are convertible to cash or that are ofactual value to the institution are included incampaign totals. Gifts with fair-market valuesexceeding $5,000 should be counted at the valuesplaced on them by qualified independent apprais-ers as required by the IRS for valuing noncashcharitable contributions. Gifts of $5,000 and un-der may be reported at the value declared by thedonor or placed on them by a qualified expert onthe faculty or staff of the institution.

CHARITABLE REMAINDER TRUSTSAND POOLED INCOME FUNDS

Gifts made to establish charitable remaindertrusts (including charitable remainder trusts ad-ministered outside the institution) where the re-mainder is not subject to change or revocation,and contributions to pooled income funds shouldbe credited to the "future commitments" sectionof campaign totals at both the discounted presentvalue of the remainder interest allowable as adeduction by the Internal Revenue Code (see

'Contact the IRS/Revenue Canada for its specific definition of qualified independent appraiser.

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8

Appendix B, Column III) and at face value (seeColumn II).

The premise underlying the discounting to presentvalue of gifts of a future interest is that the presentvalue of a future interest is less than the currentvalue. See Appendix D fora discussion of presentvalue of gifts. For Canadian institutions, thediscounted present value for reporting should bethat value calculated by the institution's accoun-tant, actuary, or by software capable of produc-ing present value calculations.

Note: Recognizing that the details of all chari-table remainder trust gifts may not be available tothe institution, and thus verification that they areirrevocable will not always be possible, the Cam-paign Reporting Advisory Group nonethelessbelieves strongly that the trust must be irrevo-cable in order to be counted in campaign totals.

CHARITABLE GIFT ANNUITIES

Gifts made in exchange for an annuity are techni-cally outright gifts subject to a condition that thedonee pay an annuity for life or lives of one or moreannuitants. Thus, there is no "remainder interest."However, because the donee receives less than the

entire amount transferredonly the excess of thegifted value over the cost to the donee of produc-ing the annuitygift annuities should be reportedin the same two sections as gifts of charitableremainder trusts and pooled-income funds.

The face amount transferred should be reported inAppendix B, Column II, and the amount allow-able as a deduction under the Internal RevenueCode (the face value minus the present value of theannuity) should be reported in Column DI alongwith present values of remainders. This reportingwill also reflect both state and province lawsrequiring the maintenance of reserves against theannuity payments to be made and, in those withoutmandated reserves, the generally accepted ac-counting practices that also suggest the mainte-nance of such reserves.

21c

Reserve requirements and accounting practicereserve amounts vary widely; this method of re-porting will provide consistency of campaignreporting from all states and provinces.

REMAINDER INTERESTIN A RESIDENCE OR FARM

A gift of a remainder interest in a personalresidence or farm should be credited in the "fu-ture commitments" section of campaign totals atboth the remainder value recognized as an allow-able deduction by the IRS and at the face value.

CHARITABLE LEAD TRUSTS

Because charitable lead trusts are not deferredgifts, but are immediate gifts in trust that payover a period of time, the calculation of face andpresent values is slightly different than for acharitable remainder trust or a pooled-incomefund. For lead trusts whose terms extend fiveyears or less, the face value as described in thissection may be reported under the current "giftsand pledges" section of campaign totals.

For charitable lead trusts that extend beyondfive years, the institution should report amountsbeyond the first five-year "gift and pledges"value both at remaining face value of the in-come stream in Column II and at discountedpresent value of the remaining income stream.

For this purpose, face value of the charitablelead annuity trust is the aggregate of annuitydollars to be received by the institution for theterm of the charitable lead annuity trust. Re-maining face value is the aggregate of annuitydollars to be received for all years beyond thefirst five-year pledge period.

The face value of the lead unitrust is moredifficult to ascertain because the trust value foreach year of the trust term is an unknown, thusthe total amount to be received by the institution

Appendix M I 207

9

is also unknown. A credible estimate of the totalincome to be received from a charitable leadunitrust should be made using as the trust'searnings the Applicable Federal Rate (AFR) forthe month in which the trust was funded. Use ofthe AFR for estimating lead unitrust earnings(and therefore trust values) is consistent withreporting for remainder trusts and will obviatearbitrary selection of assumed earnings ratesamong institutions.

Thus, the trust's yearly values will be deemed togrow or shrink over the years of the trust termdepending on the relationship of the trust to theinstitution as compared to the AFR. Then, basedon trust values, trust payouts to the institutioncan be estimated. The aggregate of payouts is,for this purpose, the face value. Remaining facevalue is the total amount to be received for allyears beyond the first five-year pledge period.This latter amount is reported in Column

Discounted present value for both types of leadtrusts should be the amount allowable as adeduction (for either income or gift/estate taxpurposes). To calculate the remaining discountedpresent value for the trust term beyond the five-year pledge reporting period, use the presentvalue of the full-trust term minus the presentvalue of the five-year term.

This will require two separate present valuecalculations, one for the full-trust term and theother as if the lead trust were to run only for fiveyears. Subtract the five-year discounted valuefrom the discounted value of the full term to findthe remaining discounted value of the trust termbeyond the five-year pledge period. This re-maining present value is reported in Column III.

Any of the deduction calculation software pro-grams on the market is capable of performingthese calculations.

WHOLLY CHARITABLE TRUSTSADMINISTERED BY OTHERS

A wholly charitable trust is one that is held forthe benefit of charity, where the principal isinvested and the income is distributed to chari-table organizations. All interests in income andprincipal are irrevocably dedicated to chari-table purposes (as opposed to a charitable re-mainder or lead trust). While it is similar in thatsense to 'an endowment fund, it is created as afree-standing entity.

The fair-market value of the assets, or a portionof the assets, of such a trust administered by anoutside fiduciary should be counted in the "giftsand pledges" section of campaign totals for theyear in which the trust is established, providedthat the institution has an irrevocable right to allor a predetermined portion of the income of thetrust.

The amount to be reported in the case where lessthan the entire income of the trust is to bedistributed to the institution is the amount of theincome to be distributed to the institution overthe total income (or the stated percentage to bedistributed, if the trust terms spell this out as apercentage) multiplied by the value of the trustassets. The income of the trust is thereafter treatedas endowment income and does not appear in theamounts reported under gifts.

NON-GOVERNMENT GRANTSAND CONTRACTS

Grant income from private, non-governmentsources should be reported; contract revenueshould be excluded. The difference between aprivate grant and contract should be judged on thebasis of the intention of the awarding agency andthe legal obligation incurred by an institution inaccepting the award. A grant, like a gift, is be-stowed voluntarily and without expectation of any

21 4


10

tangible compensation. It is donative in nature. Acontract carries an explicit "quid pro quo" rela-tionship between the source and the institution.

TESTAMENTARY PLEDGECOMMITMENTS

The decision to include or exclude testamentarypledges in campaign totals is left up to eachinstitution. For some institutions and for certaintypes of donors and circumstances, the countingof testamentary pledge commitments may beappropriate. For others, depending on institu-tional history and campaign objectives, thepractice would not be acceptable. lithe decisionis made to include testamentary commitments incampaign totals, however, the following stan-dards for handling such commitments shouldbe followed.

Institutions choosing to include testamentarypledge commitments in campaign totals shouldsatisfy the following three requirements:

( I ) credit commitments that have a specifiedamount or percentage of the estate stated inthe will based on a credible estimate of thefuture value of the estate at the time thecommitment is made;

Note: Fund-raising practitioners will appreciatethat there is no single or simple way to estimatethe future value of an estate commitment. For thisreason many institutions have chosen to excludetestamentary pledges entirely from campaign to-tals. Nevertheless, others feel that testamentarygifts should be included in campaign reports,especially since these often are part of a totalcampaign commitment being made by a donor.The key to making the decision about whether ornot these types of gifts should be given campaigncredit is often the determination of future value ofthe estate. At best, this requires a judgment call tobe made by the institution after conversation withthe donor and his/her adviser.

(2) have verification of the commitment in oneof the following forms:

(a) a letter from the donor or the donor'sattorney affirming the commitment andstating that the institution will be in-formed of any changes in the will thatmight be made in the future; or,

(b) bearing in mind that in some states thefollowing options have not been legallyaffirmed, the commitment could be ac-companied either by a deferred-pledgeagreement or a contract to make a will(see below and Appendices F and G)':

Charitable/Deferred-pledge Agree-ment. A deferred-pledge agreement is alegally binding document tested in thecourts of several states that places anobligation on the estate of the issuer totransfer a certain amount to the institu-tion. Under such agreements, theexecutor of the donor's estate is heldlegally responsible for payment of thespecified amount from the estate (seeAppendix F for sample).

Contract to Make a Will. A contract tomake a will is a legally bindingdocument, also tested in the courts ofseveral states, that places an obligationon the donor to make a will thattransfers certain assets or a certainpercentage of his or her estate to theinstitution. This instrument is usedwhen the donor cannot (or does notwish to) specify the precise dollaramount he or she will contribute.Instead, the donor promises to executea valid will wherein he or she desig-nates a certain item of property or aportion of his or her estate to theinstitution.

'Specific legal instruments vary from state to state.

215

Appendix M I 209

I1

Often, this portion is stated as apercentage of the residue of the estate.After the contract is signed, nochanges may be made in the donor'swill that would decrease theinstitution's originally specified share,except as agreed upon in advance bythe donor and the institution (seeAppendix G for sample); and

(3) the amount specified or estimated shouldbe reported at both the discounted presentvalue and at face value in the deferred/future commitments portion of campaignreports (see Appendix D).

Further, institutions choosing to report testamen-tary pledge commitments are strongly urged toinvestigate carefully the actual circumstancesunderlying the estate and err on the side ofconservatism in counting such commitments to-ward campaign totals. If any circumstances shouldmake it unlikely that the amount pledged bybequest will actually be realized by the iizstitu-lion, then the commitment should be furtheradjusted according to specific circumstances,or not reported at all.

REALIZED TESTAMENTARY GIFTS

All bequests realized during the defined dura-tion of the campaign should be counted at fullvalue in campaign totals so long as no giftamount was counted in a previous campaign.

LIFE INSURANCE

Institutions may or may not wish to includecommitments of life insurance in campaign to-tals. If gifts of life insurance are to be included,the institution should be made the owner andirrevocable beneficiary of the policies, with theexception of realized death benefits.

216

(I) Paid-up Life Insurance Policies. Paid-uplife insurance policies may be counted inone of two ways:

(a) the cash surrender value, counted as acurrent outright gift (Column I); or

(b) the death benefit value, counted at boththe face value and the discountedpresent value (Columns II and III).

Each institution should decide, in advance of itscampaign, which of the two methods will beused to count gifts of paid-up life insurancepolicies and then use that method exclusivelyfor the duration of the campaign.

Cautionary note: Caution should be exercisedin valuing such commitments for the "futurecommitments" section of campaign totals, be-cause life insurance policies may not actually beworth the full stated value of the insured amount.

For example, the cash value may have beenborrowed against or the insurance companyitself may have invaded cash value to meetmissed premium payments. In such cases, loanswould have to be repaid from any death benefitproceeds due to the beneficiary. Certain poli-cies may also contain a provision wherein theinsured amount is decreased significantly aftera certain age has been attained. In all such cases,the lesser amount should be used to calculatethe present value to be credited to the campaign.

(2) Existing Policies/Not Fully Paid Up. Alife insurance policy that is not fully paidup on the date of contribution, which isgiven to the institution during the periodof the campaign, should be counted at theexisting cash value in the gifts and pledgessection, Column I, in campaign totals. Inaddition, where the payment of premiumsis pledged over a five-year pledge period,the incremental increase of the cash valueshould be counted in the gifts and pledgessection, Column I.


12

(3) New Policies. The cash surrender value ofpremiums paid (or pledged over a fiveyear period) on policies for which donorsapply and contribute to the institution dur-ing the period of the campaign should becounted in the current gifts and pledgessection in campaign totals.

(4) Realized Death Benefits. The insurancecompany's settlement amount for an in-surance policy whose death benefit isrealized during the campaign period,whether the policy is owned by the insti-tution or not, should be counted in cam-paign totals, provided no gift amount wascounted in a previous campaign.

SPECIAL CIRCUMSTANCES

If a deferred gift by bequest, life insurance,trust, or gift annuity has been counted for thecampaign as a future commitment in Columns11 and III and the life income recipient (for giftannuities, pooled-income funds, and charitableremainder trusts), the insured (on a life insur-ance policy), or the testator (of a bequest) dieswithin a five-year reporting period for the cam-paign, resulting in the institution, receiving thegift in full, the institution may revise its cred-iting of the gift to reflect that the gift is fullypaid during the allowable five-year period bydeleting it from "future commitments" Col-umns II and III and replacing the full value in"current gifts and pledges" Column I. This is toreflect consistency in reporting these receiptswith gifts and pledges paid during a five-yearreporting period.

With special thanks, CASE and the Campaign Reporting Advisory Group acknowledge Lynda S.Moerschbaecher's technical and writing contributions to this chapter.

217

Appendix M I 211

Appendix A 13

CASE Voluntary Annual Surveyof Cumulative Campaign Activity

by Member InstitutionsThis is a sample of the form CASE will ask institutions that are planning a campaign

or are in a campaign to complete and submit to CASE annually. CASE will keepinformation on campaigns not yet publicly announced confidential.

Campaign results as of June 30, 19 representing year of the campaign period.

A. CAMPAIGN GOAL:

Current OperationsCapital ProjectsEndowment

B. CAMPAIGN GOAL:

OutrightDeferred

C. PROGRESS TOWARD GOAL: (to date)

Column IV from Appendix B $

Column V from Appendix B $

D. EXTERNAL REPORTS TO DONORS:

Check which reports from Appendix B are usedin External Reports to donors:

Columns I & IIColumns I & IIIBoth

E. INSTITUTIONAL DATA:

Alumni of recordE&G BudgetFTE Students

F. CAMPAIGN SCOPE: (check one)

Single unitschool, center, etc.Several unitsbut not allComprehensivetotal institution

G. LENGTH OF CAMPAIGN PERIOD:(check one)

I Year2 Years3 Years4 Years

5 Years6 Years7 Years

H. DO CAMPAIGN TOTALS INCLUDETESTAMENTARY COMMITMENTS?

Yes No

If yes, are CASE standards met?Yes No (please explain)

I. DO CAMPAIGN TOTALS INCLUDELIFE INSURANCE?

Yes No

If yes, by what method of counting?Cash-surrender value onlyFace value/present valueRealized death benefit only

21


14

J. MAXIMUM PLEDGE PAYMENTPERIOD:

3 Years4 Years5 YearsOther (please explain)

K. ADVANCE-GIFTS (NUCLEUS-FUND)PHASE INCLUDES IN TOTALS:

Gifts to featured objectives onlyAll gifts received by the institution

L. FOR THE REPORTING YEAR, IN WHATPHASE WAS YOUR INSTITUTION'SCAMPAIGN?

Pre-campaign planningAdvance gifts/nucleus fundGeneral public phasePost-campaign accounting

M. PLEASE ENTER DATES FOR THEFOLLOWING: (month/year)

Began crediting giftsCampaign was publicly announcedCampaign will be publicly announcedCompletion or targeted completion

Institution:

Address:

Submitted by:

Title:

Telephone: Fax:

CERTIFICATION OF COMPLIANCE

(fill in name of institution and sign)

Please complete the appropriate sentence below:

1. adheres fully to CASE Campaign Standards.

2. adheres generally to the CASE Campaign Standards but withthe following specific exception(s) (please use additional paper if necessary):

Name of Chief Executive Officer (please print)

Signature of Chief Executive Officer Date

219

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Appendix M I 215

Appendix D 17

Present-value Calculation:Background and Methodology

CONCEPTUAL BACKGROUND

The financial world recognizes today's value ofan asset that will not be realized until some timein the future through the mechanism of presentvalue discounting. The present value of a futureinterest is nothing more than a statement of whatthe future amount would be worth in terms oftoday's dollar value.

In the case of deferred gifts such as bequests andlife insurance, where the value of the amountreceived by the institution is measured merelyby the passage of time, its present value is afunction of the donor or insured's actuarial lifeexpectancy and an assumed interest rate atwhich the amount is discounted. In turn, theassumed rate at which the amount is discountedis generally a function of the earning power ofassets in the economy when the donor makes thegift (or the commitment, in the case of a be-quest). These standards use the widely publi-cized Applicable Federal Rate (AFR) as thediscount factor.

In the case of deferred gifts such as charitableremainder trusts and pooled-income funds, theadditional factors of (1) the amount to be paid tothe beneficiary(ies) over the term of the trust orthe life expectancy(ies) of the beneficiary(ies),and (2) the number of beneficiaries also figureinto the present-value calculation.

In the case of a stream of payments such as thelead-trust income to be paid to an institution ora gift annuity to an annuitant, the present valueof the income stream is the current equivalent interms of a lump sum value that the recipient willreceive over time.

The Internal Revenue Code allows donors toclaim income tax charitable deductions equal to

222

today's value of money or assets donated forcharitable purposes, subject to any limitationsprovided in the tax laws. Where the gift iscurrently given for immediate use with no re-turn benefit to the donor, the current full fair-market value is the amount available for thededuction. Where a return benefit is given to thedonor or where the institution cannot currentlyhave complete access to the transferred amount,such as in a charitable remainder trust, the valuewill be less than full fair-market value.

Where an amount allowable as a charitable de-duction is less than fair-market value, the InternalRevenue Code requires that the Applicable Fed-eral Rate be used to determine its present value.This rate is released by the U.S. Department of theTreasury each month. It can be found in the Wall

Street Journalapproximately the 22nd to 24th dayof each month. The AFR may also be found in the

Chronicle of Philanthropy, several newsletters,and in mailings from various software vendors.

The Income Tax Act of Canada does not allow acharitable deduction for money or assets donatedfor charitable purposes. Instead, it allows a two-tiered tax credit for such gifts. Nevertheless, forpurposes of these reporting standards, a presentvalue of a future interest is necessary. Theinstitution's accountant or actuary may performthis calculation or a computer-generated presentvalue may also be used. For institutions in theUnited States, credit for deferred gifts to acampaign should be the same as the amountallowable as a deduction by the IRS, before limitson the deduction that pertain specifically to thedonor in question, such as reductions and per-centage limitations. Tax laws and regulations ofthe United States and of Canada should be con-

sulted for specifics.


Appendix E 18

Life Expectancy Tables, Ages 25-90(Table V-Ordinary Life Annuities; One Life-Expected Return Multiples)

AGE MULTIPLE AU MULTIPLE AGE MULTIPLE ALE MULTIPLE

25 57.9 40 42.5 58 25.9 75 12.5

26 56.0 41 41.5 59 25.0 76 11.9

27 55.1 42 40.6 60 24.2 77 11.2

28 54.1 43 39.6 61 23.3 78 10.6

29 53.1 44 38.7 62 22.5 79 10.0

30 52.2 45 37.7 63 21.6 80 9.5

31 51.2 46 36.8 64 20.8 81 8.9

32 50.2 47 35.9 65 20.0 82 8.4

33 49.3 48 34.9 66 19.2 83 7.9

34 48.3 49 34.0 67 18.4 84 7.4

35 47.3 50 33.1 68 17.6 85 6.9

36 46.4 51 32.2 69 16.8 86 6.5

37 45.4 52 31.3 70 16.0 87 6.1

38 44.4 53 30.4 71 15.3 88 5.7

39 43.5 54 29.5 72 14.6 89 5.3

55 28.6 73 13.9 90 5.0

56 27.7 74 13.2

57 26.8

Source: IRS § Reg. 1.72.9, 1993.

223

Appendix M I 217

Appendix F 19

Sample Deferred Pledge Agreement

In consideration of my interest in education, for and in consideration of the similarpromises of other donors and for other good and valuable consideration, the receipt ofwhich is hereby acknowledged, and intending to be legally bound, I, [DONOR'SNAME], irrevocably pledge and promise that [IN THE EVENT THAT MY SPOUSE (SPOUSE'S

NAME) PREDECEASES ME] my estate shall be obligated to pay [NAME OF INSTITUTION], subse-

quent to my death, the sum of [NUMBER AND 00/100 DOLLARS] .This sum, when paid from my estate, shall be used by [NAME OF INSTITUTION] for the

[SPECIFY NAME OF SCHOLARSHIP, FUND, PROJECT, ETC.].

I direct my executor, administrator, trustee, or other personal representative to pay this sumwithin one (1) year from the date of my death, without interest if paid within such period.

I acknowledge that [NAME OF INSTITUTION'S] promise to use the amount pledged by meand/or that [NAME OF INSTITUTION'S] actual use of the money pledged by me for the purposesspecified shall each constitute full and adequate consideration for this pledge.

This pledge is to be irrevocable and a binding obligation upon my estate.

Lifetime payments may satisfy pledge. This Deferred Pledge Agreement may also besatisfied in part or in full by payments made by [MY SPOUSE OR] me at my [OUR] discretion

during my [OUR] lifetime[s] and so designated by [MY SPOUSE OR] me in writing delivered to[NAME OF INSTITUTION] at the time of the gift. Any amounts paid by [MY SPOUSE OR] me from

the date of this Agreement to the date of my death which are so designated shall reduce the amountmy estate is obligated to pay after my death under the terms of this Agreement. Any amounts not sodesignated shall conclusively be presumed not to be in reduction of the amount pledged herein.

Gifts by will or living trust reduce pledge. In the event that [NAME OF INSTITUTION] is abeneficiary under the terms of my duly probated Will or Living Trust, whether a specific orresiduary legatee, the amount received by [NAME OF INSTITUTION] under the terms of my Willor Living Trust shall reduce the amount pledged in this Agreement.

This agreement shall be interpreted under the laws of [SPECIFY STATE].

EXECUTED THIS day of 19

DONOR:

[Donor's Name]

WITNESS:

[Witness's Name]

4

[Donor's Signature]

[Witness's Signature]


20

ACCEPTANCE

The undersigned, being a duly authorized officer of [NAME OF INSTITUTION], drieshereby accept the within pledge.

UNIVERSITY OFFICER:

[Officer's Name] [Officer's Signature]

225

Appendix M I 219

Appendix G 21

Sample Contract to Make a Will

THIS AGREEMENT is made this day of 19 by andbetween [DONOR'S NAME] of [CITY, STATE] (hereinafter referred to as "the Donor")

-AND-

[NAME OF INSTITUTION] of [CITY, STATE] (hereinafter referred to as "the Institution").

RECITALS

A. [NAME OF INSTITUTION] is an educational institution and, in such capacity, renders avariety of programs and services in the field of education.

B. Donor, in furtherance of [NAME OF INSTITUTION]'s programs and services, and as anincentive to others to contribute to [NAME OF INSTITUTION], desires to commit, promise, andpledge to [NAME OF INSTITUTION] [SPECIFY PERCENT ( %)] percent of the residue of [HIS/HER] estate as hereinafter defined.

C. Donor wishes to have [HIS/HER] commitment as set forth in this document be irrevocableby virtue of this agreement, in order to insure that [HIS/HER] testamentary gift to [NAME OFINSTITUTION] can be treated as a current gift to [NAME OF INSTITUTION] for purposes of [NAMEOF INSTITUTION]'s procedures.

D. [NAME OF INSTITUTION] and the Donor wish to have their complete agreement in thisregard set forth in this document.

NOW, THEREFORE, for good and valuable consideration, the receipt of which is herebyacknowledged by each party, the parties to this Agreement, intending to be legally bound,pledge, covenant, and agree as follows:

1. Testamentary Gift. Donor irrevocably pledges and agrees that [HE/SHE] has executed orimmediately will execute a valid Will or Living Trust which shall provide that [SPECIFY PER-CENT ( %)] percent of the residue of [HIS/HER] estate (as that phrase is defined in Paragraph 3of this Agreement) shall pass outright to [NAME OF INSTITUTION] to be used for [STATE PUR-POSE].

2. Use by [NAME OF INSTITUTION]. [NAME OF INSTITUTION] hereby agrees to utilize theamount received for the purpose and in the manner described in Paragraph 1 above.

3. Definition of "Residue of the Estate." The phrase "Residue of the Estate" as it is used in thisAgreement shall mean all property (real, personal, and mixed) owned by Donor individually, lessany debts, funeral and other last expenses, administrative expenses, and applicable death taxes;provided, however, that the Donor shall have the right to make the following specific bequests:

226


22

[ITEMIZE ALL SPECIFIC BEQUESTS]

4. Estimate of Worth. The Donor represents to [NAME OF INSTITUTION] that, if the provisionsof Paragraph 1 of this Agreement were to become operative as of the date of this Agreement, thevalue of [SPECIFY PERCENT ( %)] percent of the residue of the estate passing to [NAME OFINSTITUTION] would approximate [SPECIFY AMOUNT AND 00/100 ($)] dollars.

5. Provision Not to be Revoked or Amended. The Donor agrees that any Will, Living Trust, orbeneficiary designation subsequently executed in replacement of those referred to in Paragraph 1of this Agreement shall dispose of the residue of the estate in the same manner as provided inParagraph 1 of this Agreement. Donor further agrees that [HE/SHE] shall not execute a Codicil tothe Will or an amendment to the Living Trust provided for in Paragraph 1 of this Agreementwhich would have the effect of partially or fully eliminating or modifying dispositions of theresidue of the estate provided for in Paragraph 1 of this Agreement.

6. Power to Rescind or Amend. The parties to this Agreement reserve the power to jointlyrescind or amend this Agreement by written agreement signed by each of them to such effect.

7. Heirs and Assigns. This Agreement shall be binding upon the successors, heirs, personalrepresentative, and assigns of each party.

8. Governing Law. This Agreement shall be interpreted in accordance with the laws of the[SPECIFY STATE OR PROVINCE].

EXECUTED the day and year first above written.

WITNESS: DONOR:

[Witness's Signature] [Donor's Signature]

[NAME OF INSTITUTION]

By:[Attest] [Authorized Signature]

227

About the AuthorG. David Gearhart is senior vice president for development

and university relations at The Pennsylvania State University. Sincehe joined the university in 1985 as vice president for developmentand university relations, the Division of Development and Univer-sity Relations has been awarded the Grand Gold Medal by theCouncil for Advancement and Support of Education in 1987, 1988,and 1991. This award recognizes the best institutional advance-ment program in the nation. Dr. Gearhart was appointed seniorvice president in 1988.

Dr. Gearhart began his career in higher education in 1976 asassistant to the president at Westminster College. He has served ina variety of capacities at several institutions, including director ofdevelopment at Westminster and the Winston Churchill Memo-rial and Library, vice president of Hendrix College, and directorof development of the University of Arkansas.

Dr. Gearhart is a member of the American Bar Association. In1991, he was named a Fulbright Scholar and studied at OxfordUniversity. He received his undergraduate degree at WestminsterCollege and a law degree and a doctor of education degree fromthe University of Arkansas.

228

NACUBO Board of Directors

Mernoy E. Harrison, Chair, California State University, SacramentoJohn A. Palmucci, Vice Chair, Loyola College in MarylandKarla Chappelle Howard, TreasurerJerry B. Farley, Secretary, University of OklahomaCarol N. Campbell, Immediate Past Chair, Carleton College

Daniel Boggan Jr., National Collegiate Athletic AssociationR.W. "Pete" Denton, University of South CarolinaWilliam M. Dixon, Wytheville Community CollegeJames M. Dodson, McPherson CollegeNancy B. Eddy, Holyoke Community CollegeEmerson H. Fly, University of TennesseeJ. Peyton Fuller, Duke UniversityJanet Hamilton, University of California, DavisGeorge F. Keane, The Common FundKatharine J. Kral, University of Illinois, Urbana-ChampaignDavid J. Lyons, Rockefeller UniversityThomas J. Mason, University of Notre DameGary H. Newsom, Purdue UniversityCalumetDonald W. Scoble, San Francisco State UniversityJerry N. Wallace, University of Idaho

Caspa L. Harris Jr., NACUBO President

229

National Association of College and University Business OfficersOne Dupont Circle, Suite 500Washington, DC 20036-1178

CO2Y AVAILME 230

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