University Development Overview and Future Plans

1 University Development Overview and Future Plans Presentation for the 2012 Business Practices Seminar February 24, 2012 Dr. Elizabeth Flanagan Mr. Thimothy Corvin VP for Development & University Relations Senior Associate VP for Development & Principal Gifts INTRODUCTION AND SESSION Overview (FLANAGAN) 2 What we will cover today: Overview of Development at VT History of Campaigns at VT Interim Development Proposals Priority Setting and Timeline 3 Organizational Chart for the Office of the Vice President for Development and University Relations Vice President for Development and University Relations (Betsy Flanagan) Senior Associate Vice President for Development and Principal Gifts (Thim Corvin) Associate Vice President for Advancement Services (Rhonda Arsenault) Associate Vice President for University Relations (Larry Hincker)

2 Assistant VP for Colleges Women in Leadership and Philanthropy Program Assistant VP for University Programs Regional Programs Gift Planning Corporate and Foundation Relations Business Office Donor Relations Research and Information Systems Gift Accounting Annual Giving Special Events Desktop and Systems Support Development Communications Public Affairs Publications Visual Communications Extension Communications Public Service Communications Northern Virginia Graduate Center Communications WVTF Public Radio Licensing and Trademarks The Development Process Identification Volunteers Staff Self-Reference Investment Capital Fund Raising Involvement Annual Giving Support Activity Volunteer Leadership Board Engagement Information Experiences Communications Publications Website Engagement Campus Programs Educational Events Campus Activities Club Programs Evolved from an earlier model created by Douglas S.

3 Dibbert, President of the University of North Carolina General Alumni Association. Stewardship Acknowledgements Reporting Events Development Funding Model Reinvestment Fee (7%) Fundraiser costs shared with colleges/units The VT Foundation supplements Development costs Note: It takes approximately 14 to raise $ 6 ANNUAL GIFT FUNDRAISING (CORVIN) 7 Development Pyramid Annual Giving Special Gifts Major Gifts Principal Gifts Under $1,000 $1,000-$25,000 $25,000-$1 Million $1 Million+ Annual Giving Purpose: To build a base of on-going support for operations A source of unrestricted funds A source of prospects for major gifts A culture of philanthropy among constituents The Market Individuals Alumni Parents Friends Faculty and staff Seniors Methods of Annual Gift Fundraising Direct Mail Inexpensive (dollars and HR) Can reach masses quickly Low return (1-3% average) Less personal Methods of Annual Gift Fundraising Telefund Advantages Interactive Can segment target markets Personal contact with students Can encourage upgrades Methods of Annual Gift Fundraising Telefund Disadvantages High cost (35-50 cents on dollar raised) Students struggle with handling objections Telemarketing laws Fulfillment Methods of Annual Gift Fundraising E-Philanthropy Inexpensive Appeals to some.

4 Not others Higher average gift Cost effective for pledge reminders, stewardship Challenges in Annual Gift Fundraising Fulfillment Donor retention from year to year Increasing gift size Database integrity Lapsed donor reactivation 16 UnitFY2012 Donors to dateFY2011 Donorsto date +/-FY2012 Dollars to dateFY2011 Dollars to date +/-FY2011 Total Dollars% of TotalCollege of Agriculture and Life Sciences7367123%$220, $174, $216, of Architecture and Urban Studies4434391%$188, $78, $90, of Business, Pamplin1,6541,727-4%$467, $354, $451, of Engineering2,9862,8754%$925, $645, $929, of Liberal Arts and Human Sciences1,2511,358-8%$211, $157, $218, of Natural Resources237252-6%$47, $47, $55, of Science9409202%$269, $197, $275, of Veterinary Medicine1317868%$40, $11, $23, of Cadets1,2521,281-2%$501, $285, $367, School9241,050-12%$70, $66, $87, Fund2,3023,601-36%$194, $289, $362, Libraries31722839%$58, $31, $44, Unrestricted62535079%$154, $80, $113, $223, $139, $210, ,70813,544-6%$3,573, $2,558, $3,447, Annual Fund Results: July 2011- Jan 2012 MAJOR GIFT FUNDRAISING (FLANAGAN) 17 Major Gift Fundraising Identifying Major Gift Prospects Research on prospects Electronic Screening Qualitative Field research Referrals Cultivating MG Prospects Focus on rated prospects Face to face visits Invitations to campus Small group sessions with leadership/faculty Major Gifts Gift Type Outright Irrevocable deferred Revocable deferred Likely to see combination Corporate Support Best prospects have shared interests Quid pro quo expectations Matching gift possibilities Who is the decision-maker?

5 Giving policies Foundation Support Types Corporate Private/Family Community Governmental Foundation Support, Con t Giving Guidelines Proposal centered Issue Focused 24 CAMPAIGN FOR VIRGINIA TECH SOURCES OF CAMPAIGN GIVING July 1, 2003 through June 30, 2011 ALUMNI $474,246,582 Alumni $474,150,714 Students $95,868 .01% PARENTS $21,299,918 FRIENDS $301,670,220 FACULTY/STAFF Active Retired $9,916,380 $15,111,426 .89% $25,027,806 CORPORATIONS $161,359,333 Direct Gifts and Grants $120,661,231 Matching Gifts $12,958,332 Private Grants $27,739,770 FOUNDATIONS $99,835,171 Direct Gifts and Grants Personal/Family Fdns. $40,364,777 $47,916,442 Private Grants $11,553,952 OTHER ORGANIZATIONS $29,264,947 TOTAL $1,112,703,977 Alumni/StudentsParentsFriendsFaculty/Sta ffFoundationsOther OrganizationsCorporations25 CAMPAIGN FOR VIRGINIA TECH USES OF CAMPAIGN GIVING July 1, 2003 through June 30, 2011 Current Operations $601,697,923 Endowments 303,715,166 Capital Facilities 163,665,492 Private Grants 43,625,396 TOTAL $1,112,703.

6 977 Current OperationsEndowmentsCapital FacilitiesPrivate GrantsDonor Stewardship Visits to update Updates on funded programs Invitations to events/opportunities to remain engaged Recognition societies Caldwell Society Ut Prosim Society President s Circle Legacy Society 27 5812014816924833640557261075306835269810 5103212851662475191734454759010020030040 0500600700800200220032004200520062007200 8200920102011 Caldwell Society GrowthFY 2002 -2011 Total HouseholdsNew HouseholdsAdvancing Households to Ut Prosim28 7122521174422355765667086108137342332474 6606056801281371561701812202372663183764 3650158168481584386188892997510291089110 411720200400600800100012001400 CountHouseholds by yearUt Prosim Society Membership by YearJuly 5, 2011 New HouseholdsTotal Households29 3310665129672334248545969768288890102030 405060708090100FY 2002FY 2003FY 2004FY 2005FY 2006FY 2007FY 2008FY 2009FY 2010FY 2011 HouseholdsYearPresident's Circle Households by YearDonor Relations 7/5/2011(Note: differences in counts reflect removal of deceased members)New HouseholdsTotal Households30 6228441222171546323213635487012138819663 8210962901341461481692402943573804014374 7252059071174983092698910711045020040060 0800100012001990199119921993199419951996 1997199819992000200120022003200420052006 20072008200920102011 New HouseholdsTotal HouseholdsLegacy Society Household by Year Donor Relations 7/7/11 (Note.)

7 Differences in counts reflect removal of deceased members) Advancement Services Gift Accounting CASE standards apply Development Communications marketing materials Proposals website Information Technology Advancement Services Development Research Donor Relations/Stewardship Special Events Management Strategy Goal setting Prospect portfolios Performance management Measuring Success with Program Benchmarks Dollars Raised Teamwork Integrating with University Relations Integrating with the Alumni Association HISTORY OF CAMPAIGNS AT VIRGINIA TECH (CORVIN) 34 History of Campaigns at Virginia Tech 1980 - Organized official fundraising program July 1982-December 1986 Campaign for Excellence Goal - $50 Million; Raised $118 Million July 1992-June 1998 Campaign for Virginia Tech Goal - $250 Million; Raised $337 Million 35 Historical Campaign Planning Process Develop Campaign Goals linked to the University Strategic plan Identify University needs and priorities and translate into the tentative campaign plan Complete analysis of each college/unit relative to prospect base, staffing, resources, and volunteer potential 36 Historical Campaign Planning Process Convene needs assessment committee chaired by Provost; include all deans, unit heads, and Vice Presidents Conduct feasibility study and assess results Identify, research, and establish strategies for top Nucleus Fund prospects Establish tentative goal for nucleus fund phase 37 The Campaign for Virginia Tech: Invent the Future What would we do if we had a BILLION dollars?

8 ????????? 38 Invent the Future Campaign July 2003-June 2011 The Campaign for Virginia Tech: Invent the Future Goal - $1 Billion Raised - $ through June 30, 2011 Continued counting through June 30, 2011 Met $1B goal early (November 2010) Compensate for suspended fundraising and poor economy Included late regions who wanted to participate (NY/DC/MD) Focused on meeting established, unfulfilled goals Campaign Closing Celebration in Fall 2011 39 Invent the Future Campaign Priorities Academic Excellence ($309M; 170%) Faculty Chairs, Professorships and Fellowships Graduate Programs Libraries The Undergraduate Experience ($184M; 128%) Scholarships Study Abroad and Multicultural Initiatives 40 Invent the Future Campaign Priorities Research Facilities ($ ; 52%) Cross-disciplinary Research Buildings Virginia Tech and the Community ($70M; 86%) Arts Initiative Campus Infrastructure and Historic Sites Transfer of Knowledge President s Discovery Fund ($ ; 101%) 41 20,648,96931,233,12542,938,25012,837,269 23,805,96727,152,8572,020,6315,883,0726, 738,464010,000,00020,000,00030,000,00040 ,000,00050,000,00060,000,00070,000,00080 ,000,00090,000,000'90-'98'99-'03'04-'09 IndividualOrganizationRealized BequestVirginia Tech Avg Year Gift Support by Source+ 2008 Dollars+ + + + + Success: Growth in Gifts from All Sources Very strong growth after the previous Campaign across all sources.

9 Continued growth across sources in the Invent the Future Campaign, especially in gifts from Individuals. Campaign Campaign Strength: Growth across donor sources. 43 Statistics in order of largest alumni population to smallest, beginning with Virginia. 44 98 497 2,627 5,849 11,758 32,157 46,113 52,417 57,790 4,606 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s Virginia Tech Alumni Counts by Decade, 1920 to 2010 45 Prospect/Gift Campaign Table $1 Billion Goal Plans FOR THE Future (FLANAGAN) 46 Summary of Penetration Statistics 47 Doubled overall prospect pool from 17,000 to 34,000 during campaign Have seen 36% of identified prospects On average, it takes 13 visits per every major gift received We focused more on the high end and less on the low end, so money is still out there Alumni from the 80s and early 90s will be key in the next campaign PRIORITY SETTING AND TIMELINE (FLANAGAN) 48 Total Development Proposals by Type WISH LIST Endowments $ Capital $ Current Operations $ Dollars in millions 49 Note.

10 Proposals include only those from academic units. Cash Flow vs. Intermediate Priorities Current priority wish list totals $ Annual Cash flow is projected at $100M Approximately $600 million in projected cash flow for the $ billion in intermediate requests over next six years Question to Deans: Considering your unit priorities, do you have the existing prospect base to fund them? 50 Proposed Timeline for Next Campaign 51 July 2018 Quiet Phase begins December 2021 Quiet Phase ends January 2022 Public Phase begins Coincides with 150th Anniversary of VT June 2026 Public Phase ends This recommendation is for a 7-year intermediate period. The previous two campaigns had intermediate periods of 6 years and 5 years, respectively. Conclusion Development encompasses a great deal All about relationships, information gathering, financial climate, and realistic expectations Must gain buy-in from internal and external constituents All parties work together with a commitment to success for the Future of Virginia Tech 52 QUESTIONS?