Market Analysis Of Alumni Giving Trends

Research conducted by AlmaMatters.org

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Alumni Contributions

Total voluntary contributions = $29.75 billion dollar industry

$8 billion was alumni donations

Donations have been fairly stagnant (increase of 3 billion over the past 10 years)

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Enrollment Stats Percentages of 16 to 24 year olds enrolled in college:

1972: 49%

1997: 67%

2001: 62%

2005: 69%

Note: From 2004 to 2014, NCES projects a rise of 11 percent in enrollments of persons under 25, and an increase of 15 percent in the number 25 and over

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Voluntary Support Breakdown

Voluntary Support of Higher Education, 200729.75 billionAlmaMatters.org

Marketing Mix Telephony

Mostly handled in house, student labor, profitable

Direct Mail High response rate

E-Mail Fairly new means of communication

Website Great for keeping alumni up to date, size and scope

varied

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Typical Donation Facts Based upon surveys conducted, universities generally get a

1 to 2% response from mailers, phone calls, or invitation cards to events.

Donation amounts vary: <$2,500.00 Phone calls/Direct mail >$2,500.00 Campus events Larger donations are typically from wills, foundations,

estates

Schools investment for fund-raising is about 10 cents per dollar received. Note: This number applies to retention of existing donors.

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Institution Touch Points

Anniversary of graduation

Homecoming

Athletic events

Ground breakings/celebrations

Fundraising campaigns

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Donor Lifecycle Graduation to 10 year mark

Maintaining relationship

10 plus yearsMarriage, promotion, kids, higher disposable

income

20 plus yearsLeaving a legacy

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Strengths of the Market

Size of the market

Continuously growing alumni base

Loyalty is established with alumni early on

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Weaknesses Demographics – several segments

Schools struggle to engage alumni

List neglect

Short term fund raising vs. long term relationship building

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Opportunities Growing base of alumni

Longer life spans, increasing capacities, new degree offerings

Room for growth - 88% of alumni do not contribute

Schools recognize the need for new marketing solutions

Engage current students now

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Threats

EconomyTight economy, unemployment rising,

political changes approaching

Performance StandardsAthletics, academics, rankings

Competition for donor dollars

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Conclusion Schools need to start engaging students now to

increase chances of a donation in the future

There is a need for innovative marketing concepts to engage alumni

Fund raising is essential for schools to cover costs and to keep national ranking Tuition typically covers 73% of a schools operating cost.

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References 1). Kaplan A., (2007). Council for Aid to Education.

www.cae.org. Retrieved April 2, 2008, from http://www.cae.org/content/display_press.asp?id=73

2). Student Effort and Educational Progress. (2007). Transition to College, (1), . Retrieved April 3, 2008 from http://nces.ed.gov/programs/coe/2007/section3/indicator25.asp#info database.

  3). Golden D., (2007). MATHLESSONS.

http://online.wsj.com. Retrieved April 1, 2008, from http://online.wsj.com/public/article/SB117279405348024132-9gtgPqmUvqfygoTj_VTDcS48J1o_20070309.html?mod=yahoo_free

Interviews Conducted are private information.

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