Giving Statistics,Leadership

and Trends in Catholic Secondary Education

Terry Fairholm, PresidentJuly 31, 2013

National Giving Statistics• In 2012, total giving was $316 bil.

• 3.5 % increase - 1.5% increase adjusted for inflation

• 2% of GDP

• $229 bil. or 73% from individuals – 1.9% incr. adjusted for inflation.

• $45.7 bil. or 14% from foundations – 2.3% incr. adjusted for inflation.

• $23.4 bil. or 7% from bequests

• $18 bil. or 6% from corps.

National Giving Statistics

• Foundations increased grants by 2.3%

• Bequests fell by 9% (after a 6% increase in 2011)

• Contributions to colleges, universities and private schools rose by 5%

Catholic School Statistics

• 1,200 Catholic high schools in the USA

• 554 average enrollment

• 56% have President/Principal model

• Cost of educating one student increased 5%

• Tuition increased 9.1%

• Financial aid increased 31%

• 72% of students seek financial aid

Catholic High School Statistics

• Schools are able to meet 57% of the need for financial aid

• $4.6 mil. average endowment; ½ <$2.0 mil.

• 12% average alumni giving

• $686,548 total development-generated revenue

• Average annual fund $396,000

• $1,665 average “gap”

Annual Fund

API Philanthropic G iving Model

Annual G iving(This School Year)

Major G ift Program(Short-Term Future,

3-5 yrs.)

Planned G iving(Long-Term Future,

5+ years)

Auction

Events

Major Gifts for Capital Projects

Estate G ifts, Insurance, Trusts, etc.

EndowmentFacilities, e.g.

Fundraising vs Advancement Fundraising:

– Is ‘mass communication’ oriented.– Makes few distinctions, considers all constituents equally.– Same approach to all.– Is activity oriented – events, premiums (raffle tickets, etc.)– Has a low marginal cost effectiveness rate.– Is an effective method of raising some money.

Advancement:– Is personal and relationship oriented.– Distinguishes higher potential.– Is strategic in nature.– Requires a customized approach to all.– Is more results oriented.– Is the most cost effective method; will raise exponentially more money.

Development TrendsComprehensive funding initiatives – some schools

aren’t calling it a ‘capital campaign’.Emerging from the institutional strategic plan.Transition from ‘periodic capital campaign’ and

periodic focus on major gifts to:‘Maximize philanthropic potential on a yearly

basis’ from each fundamental source: AG, MG, PG.Re-thinking roll of Alumni Relations.

Development Trends

We are still off the high water mark of $344 bil. in giving in 2007

One of just 4 years we have exceeded $300 bil. in giving

Seems like more of a reflection of our mood than the reality of giving

Giving by taxpayers that itemize represented 81% of the total given in 2012

Development Trends Fewer than 20% of those earning under

$50,000 itemize Over 93% of those earning $200,000 or more

itemize From experience we know that the bulk of the

funds we raise come from a small % of our constituents at the top of the pyramid

The recover is here and it is being driven by the wealthy

Development Trends

The decision to give is the direct result of fundraising best practices

While it is always beneficial to explore new and different ways of engaging prospects – we must be aware

the boom in philanthropy continues to be in major gifts

Major Gift TrendsMore complex questions from top prospects. It’s taking longer to reach major gift financial goals.More solicitation calls are required; a deeper

pyramid.Prospects are pledging more conservatively. Increased importance of annual and planned

giving.Scope, sophistication and expectation of

development has increased dramatically.No margin for error.

The basis of good leadership is: • honorable character •selfless service to your organization

Respected leaders concentrate on:• what they are [be] (such as beliefs and character)• what they know (such as job, tasks, and human nature)• what they do (such as implementing, motivating, and providing

direction)

Be – Know - Do

“Management is doing things right; leadership is doing the right things.”

- Peter Drucker

Management vs Leadership• Management involves planning and budgeting.

Leadership involves setting direction.• Management involves organizing and staffing.

Leadership involves aligning people.• Management provides control and solves problems.

Leadership provides motivation.

Management vs Leadership• Management is about coping with complexity; it

brings order and predictability to a situation.

• But that’s no longer enough—to succeed, Catholic high schools must be able to adapt to change.

• Leadership is about learning how to cope with rapid change.

Leadership in a Catholic High School

p

“A herd of deer led by a lion will defeat a herd of lions led by a deer.”

1. Ensure clarity and fulfillment of mission.

2. Provide top quality education.

3. Maximize enrollment.

4. Maximize philanthropy.

5. Ensure prudent financial management.

The Right Things – Core Leadership Skills

1. Vision

2. Action

3. Results

Core Leadership Skills Vision: Envision a new reality, new directions,

the preferred future.

Action: Desire isn’t the factor that holds leaders back, it’s knowing how to execute.

Results: It’s a myth that hard work is enough to achieve results. A special set of skills is required to reach the end zone.

VisionVision requires:

Knowledge: An up to date understanding of the broader issues facing your school.

Planning: Set goals and ‘get things done’.

Courage: Take the necessary risks.

Action“Vision without action is hallucination”

-Thomas A. Edison

Action Requires:

Decision Making: Make sound decisions in a timely manner.

Communication: Create an open environment where thoughts are expresses freely.

Engage Significant Others: Moves the organization toward seemingly unobtainable results.

Results

Results Require:

Risk Taking: Push the envelope, do things differently.

Results Focus: Stay committed to the strategy.

Agility: Respond quickly to change and adversity.

Moving The Mountain…Who Does What??

Board: Create policy Adapt the vision Allocate needed resources Authorize action Give! Get or Get Off!!

President/Principal: Create the vision Commit to Advancement LEAD the initiative by taking action – hiring, delegating, soliciting, etc.

V.P. for Advancement/Development Director: Commit to Advancement Set priorities; be disciplined about execution. Accept responsibility for implementation – GET IT DONE!