The Art of Foundation Fundraising - Research | USC · 1. Kimberly Alexander. Executive Director. Corporate and Foundation Relations. College of Letters, Arts and Sciences. October

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Kimberly AlexanderExecutive DirectorCorporate and Foundation RelationsCollege of Letters, Arts and SciencesOctober 29, 2008

The Art of Foundation Fundraising

http://www.usc.edu/identity/license/?fn=logo_white_card.zip

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PRESENTATION GOALS

Overview of National Foundation Fundraising Trends

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USC Foundation Fundraising Performance Issues

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Basic Strategies to Increase Foundation Fundraising

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USC Foundation Relations Office Services

http://www.usc.edu/identity/license/?fn=logo_card_white.zip

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What is a Foundation? (Foundation Center 2006)

The philanthropic world consists of two principal types of foundations,

private and public. Private foundation’s are the primary source for USC

support. A private foundation can be defined by:

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Nonprofit and non-governmental

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Has its own funds or endowment provided by a family, individual or a for-profit company

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Managed by it own board of trustees or directors

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Established to aid educational, social, religious, or other charitable activities serving common welfare

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Makes grants, primarily to other nonprofit organizations; and

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Required to file a 990-PF form with the IRS annually


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Types of Foundations (Foundation Center 2006)

There are three different types of private foundations:

Independent or Family Foundations receive endowments from individuals or families (and, in the case of family foundations, they continue to show measurable donor or donor-family involvement) Company-Sponsored or Corporate Foundations receive funds from their parent companies, although they are legally separate entities Operating Foundations run their own programs and services and typically do not provide much grant support to outside organizations


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Distribution of National Foundations:

Where Are Foundations Located? (Foundation Center 2006)


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Nearly 50% of Foundations Established After 1989 (Foundation Center 2006)


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Foundation Giving Continues to Increase

(Foundation Center 2006)


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Growth in Foundations Summary 1990-2005

Close to half of larger foundations were formed after 1989

Between 1990 and 2005, the number of active grantmaking foundations more than doubled from approximately 32,000 to over 68,000

Only 2% of foundations held the vast majority of assets in 2005

In this same time period, assets of active grantmaking foundations jumped from $142.5 billion to $531 billion

Following the rise of assets, giving more than tripled from $8.7 billion in 1990 to $33.6 billion in 2005

Adjusting for inflation, giving more than doubled between 1990 and 2005


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Foundation Assets Continue to Grow

An Update 2007-2008

Giving rose 10 percent to an estimated $42.9 billion in 2007

Inflation-adjusted giving in 2007 broke the prior record set in 2006

Accounting for inflation, growth in 2008 giving is likely to be modest

Assets grew by 9 percent to an estimated $669.5 billion in 2007


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Corporate FoundationsOutlook for Corporate Foundation Giving

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Corporate FoundationsCorporate Foundation Giving Patterns, 2006

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Corporate FoundationsCorporate Foundation Giving Patterns, 2006

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Corporate FoundationsSummary 2006 Statistics for Corporate Foundations

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Family FoundationsGrantmaker Data, 2006

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Family FoundationsGiving Patterns,

2006

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Family FoundationsGiving Patterns, 2006

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Top 25 Recipients of Foundation GrantsIn California, circa 2006

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Types of Support Awarded by Foundations,circa 2006

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Top 25 Foundation Awarding GrantsIn California, circa 2006


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Distribution of Grants by FieldSpecific Recipient Type, circa 2006


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Top Ten States by Foundation Grant Dollars Received, 2006


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Grantmaking Trends in 2006


Past Economic Downturns and the Outlook for Foundation Giving

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PRESENTATION GOALS

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Foundation Giving To USC

Fiscal Year

Total Foundation

Percent of TotalGiving to USC

USC

Fundraising

2000-2001:

$78,902,519

26.9% of Total Giving

2001–2002:

$192,874,376

33% of Total Giving

2002-2003:

$112,206,152


2003-2004:

$71,539,520


2004–2005:

$60,779,261


2005-2006:

$66,906,349


Average $97,201,362

25.2%


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USC’S Foundation Fundraising Compared To Peer Institutions

Year Total USC

Total USC

USC National Rank

Foundation Giving To Peer Institutions

Fundraising Foundation (CAE)Fundraising

Stanford Harvard Cornell Duke Yale Columbia Penn Berkeley UCLA

2000-2001 $293,309,089

$78.9

12th

100.6 212.7 48.7 100.4 80.5 65.6 92.2 39.9 119.1

2001-2002

585,161,932

192.9 1st

82.5 126.2 52.8 114.0 70.5 74.6 95.7 52.1 117.6

2002-2003

305,981,845

112.2

9th

125. 99.0 58.2 115.5 63.7 83.8 97.5 58.5 153.8

2003-2004

354,481,220

71.5

13th

165. 151.1 45.5 96.2 69.5 74.9 108.4 47.9 123.3

2004-2005

344,265,008

60.8 20th

192 160.4 40.3 110.7 85.0 73.1 106.5 75.9 139.0

2005-2006

412,699,509

66.2

Totals

$521.7M

$665.1 $749.4 $245.5 $536.8 $369.2

$372 $500.3 $274.3 $652.8


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USC Foundation Gifts (By School)

2000-2001 2001-2002 2002-2003 2003-2004 2004-2005

Business 81 502 348 249 224

Cinema 66 50 48 47 41

Dentistry 20 24 16 18 21

Education 22 16 15 28 28

Engineering 81 93 83 71 64

Gerontology 55 42 42 40 24

College 115 104 107 192 151

Keck 169 193 155 163 167

Law 81 82 57 47 52

Annenberg 37 64 71 57 60

Social Work 11 19 24 32 19

Architecture 16 20 20 15 31


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California Versus National Foundation Support To USC

(Academic Units Including Keck)

Year

California

National International

2000-2001

$29,172,255 (778 awards) $7,376,513 (500 awards) $93,381 (8 awards)

2001-2002


2002-2003


2003-2004


2004-2005


2005-2006

TBD

TBD

TBD

TOTALS

$244,600,008 (With Annenberg) ( 81.2%) $55,257,373 (18.4%)

$1,078,906 (.4%)$144,600,008 (Without Annenberg) (72%) $55,257,373 (28%)

$1,078,906 (.5%

USC’S FOUNDATION SUPPORT OVERWHELMINGLY

COMES FROM CALIFORNIA-BASED FOUNDATIONS


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PRESENTATION GOALS

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Getting In Shape for Foundation Fundraising: The Development of a Foundation Strategic Plan

Determine priority projects or programs for foundation support

Who are the right School, University & External Partners for your projects

Who are the right foundation prospects for your projects

Determine internal and broader institutional linkages

Develop foundation contacts and relationships

Review the plan with appropriate colleagues


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Not All Foundations Are Created Equally

Fine tune your cultivation and solicitation strategy to recognize:

Focus – Interest in strategic philanthropyFluctuations in giving amountsRegional versus national versus internationalSize matters – small, medium and large asset baseTrend towards partnerships versus traditional donor/doneerelationshipsShifting Foundation Culture

These differences impact how proposals areprepared & presented


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Foundation Diversity: The Spice of Life

Compare Andrew Mellon Foundation vs

Haynes Foundationvs

Gordon Moore Foundation

What would be the difference in how you prepare?

Would your proposal content and format be different?

Would USC institutional assets be different?

Would USC institutional strategic relationships be different?

Would your expectations be different?


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Key Meeting & Call Objectives

Connect with key decision makersEstablish common groundReciprocal exchangeDemonstrate linkagesConfirm giving preferences, guidelines, and inquire about future trends at the foundationExplore partnership potentialDescribe institutional priorities and projectsSecure advice on strategy and next stepsObtain agreement to review draft before submission

It is essential to follow-up

all calls and meetings promptly.


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Your Winning ProposalComplies with foundation giving criteria Clearly customized to the individual funderSubmitted in a timely fashion to meet required deadlinesFollows Foundation proposal guidelinesCompelling and attractive projectAppropriate workplan and management structureA correct ask amount/costing rationaleThe correct faculty member(s)Correct internal or external partnersProposal is succinct, clear and reader friendlyIncludes all necessary USC attachment documentsCover letter from appropriate personStrategic leveraging of USC relationships

A COLD PROPOSAL WITHOUT PRIOR CONTACT WITH A FOUNDATION STAFF MEMBER IS RARELY SUCCESSFUL


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Proposal Preparation ChecklistRFP/DocumentsInternal or External Partners?PersonnelBudgetTechnical ProposalUSC Documents, Support Letters, Cover Letter, etc.Finishing touchesPackagingProposal Delivery/LogisticsFollow-up with funder


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Making the Ask: There is More Than One Entry for Foundation Proposals

Avenue A•

Draft proposal that has been reviewed by foundation officer•

They become the champion and shepherd it through the processAvenue B•

Final proposal prepared•

Formal request made to CEO and/or their BoardAvenue C•


Submitted by President to PresidentAvenue D

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Submitted by volunteer/Board member to President


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Keys to Successful Foundation Fundraising

Foundation Background Research – Project submissions need to match the needs and interests of the funder & attentive to foundation strategic developmentsProposal protocol – Submissions need to absolutely follow foundation proposal format guidelines and timelinesStrategic Cultivation – Leveraging personal support through school and institutional linkagesBuilding and sustaining meaningful relationships and partnerships with foundationsContinual meaningful stewardship of successful and unsuccessful project proposals

Success with foundations takes time –

You should expect to be turned down. Continue to work on developing personal relationships with

the funders. Stick with it!


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Always Be Thinking About

Right Timing

Right Project

Right ask amount

Right Solicitor


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Foundations Supporting Higher Education Issues (A Partial List)

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Bill and Melinda Gates Foundation•

Ford Foundation•

J. Paul Getty Trust•

Robert Wood Johnson Foundation•

Lilly Endowment•

W.K. Kellogg Foundation•

William and Flora Hewlett Foundation•

David and Lucille Packard Foundation•

Andrew W. Mellon Foundation•

Gordon and Betty Moore Foundation•

John D. and Catherine T. MacArthur

Foundation•

California Endowment•

Starr Foundation•

Annie E. Casey Foundation•

Rockefeller Foundation•

Kresge

Foundation•

Annenberg Foundation•

Charles Stuart Mott Foundation

How many have you developed relationships with?


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PRESENTATION GOALS

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USC Foundation Relations How We Can Help

1. Secure support for university’s priorities as identified by the President, Provost and Deans

2. Increase numbers and geographical diversity of participating foundations beyond “traditional”

USC supporters to fund university priority projects

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Increase USC visibility and communication with national/international foundations

4. Expand USC internal capacity for foundation fundraising

5. Development and maintenance of internal foundation infrastructure systems


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Foundation Relations Prospect Development Model

Foundation ProspectFoundation ProspectDevelopment Development CycleCycle

Identificationof

Prospects

Identificationof

Prospects

Engagementof

Prospects

Engagementof

Prospects

On-going Follow-upActivities

On-going Follow-upActivities

Meetings with Foundation Leadership and USC Leadership

Meetings with Foundation Program Officers and USC Faculty/Fundraising Staff

Invite Foundation Staff to USC outreach events

Mailings to Foundations by USC on a regular basis

Meetings with Foundation Leadership and USC Leadership

Meetings with Foundation Program Officers and USC Faculty/Fundraising Staff

Invite Foundation Staff to USC outreach events

Mailings to Foundations by USC on a regular basis

On-going invitations to outreach events

Solicitations/Proposals

Special mailings and stewardship activities

Private Meetings/Visits

Dissemination to USC Faculty and Administration

On-going invitations to outreach events

Solicitations/Proposals

Special mailings and stewardship activities

Private Meetings/Visits

Dissemination to USC Faculty and Administration

Development databases

Trustee/Board recommendations

College Alumni

Outreach events

USC faculty recommendations

Other, e.g., USC “friends”, personal contacts, outside data bases, etc.

Development databases

Trustee/Board recommendations

College Alumni

Outreach events

USC faculty recommendations

Other, e.g., USC “friends”, personal contacts, outside data bases, etc.


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USC Foundation Relations Is Involved With The Following Schools and Centers

Marshall School of Business Annenberg School for CommunicationCinemaSchool of Dentistry Rossier School of Education Viterbi School of Engineering College of Letters, Arts & Sciences Keck School of Medicine Gould School of Law School of ArchitectureSchool of Policy, Planning and DevelopmentSchool of Social Work School of Gerontology TheaterThornton School of MusicProvost Office of Research Advancement Pacific Counsel of International Policy Lusk Center for Real Estate Center on Philanthropy, Public Policy and Research


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Foundation Relations Contact Information

OPEN–

Director of Foundation RelationsOR

Thom Rhue

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Associate Senior Vice President, University Advancement –

(213) 740-1218

ORhttp://www.usc.edu/giving/foundation/

http://www.usc.edu/giving/foundation/

