Club Leadership Workshop

Scholarships and Fundraising

June 2, 2007Presented by Denise D’Allura and Sondra Fonville

Major/Special Gifts

Annual Gifts

Event-driven

Small Number of

Donors;

Larger Gifts

Larger Number of Donors; Smaller Gifts

Largest Number of prospects Supporting Club Activities; Smallest Amounts of Support

Encourage awareness and philanthropy to scholarship efforts

Partner with “Development”

Renewal and upgrade of current donors

Club Scholarship Fundraising Model

ZZZZZZZZZZZ…..

Okay the Pyramid is a little Dull

Let’s talk Courtship!

Stage 1.

Meeting the right person

“Loves kids, dogs, and Grandma”

Translates to:

“Has a passion for scholarship and has capacity to give”

Practical Tips for Clubs

‘Work’ Your events Look for those with interest Gauge Capacity

Diverse events attract diverse pocket books

The best prospects are not always the obvious ones

Stage 2:

Showing your best side

Talk about the things that will gain their interest

Practical Tips for Clubs

Build Awareness

It is about the students

Use your tools

A Few Case Points

Nearly 50% of undergraduate students at the U-M receive need-based financial aid;

Poor students less likely to apply; 14% report family earnings under $50,000Are we competitive?

Out-of-state tuition is approximately $40,000 Close to the yearly cost of out-of-state Ivy League institutions & $10,000

more than the cost to attend Ohio State. U-M students borrow more than the national average

Unmet need for non-residents has increased from a low of $922 to over $11,000 a year.

Endowment dollars per student than many of competing institutions: Princeton $1.492 million/student Harvard $1.147 million/student Yale $1.2 million/student Northwestern $276,000/student Duke $205,000/student U-M $76,800/student

Asking for a date

TextingE-mailPhone CallFace to FaceSpecific time and PlaceCatered to your dates interest

Stage 3:

Dating

Some will be winners, some will be losers, and some will be friends for life

Translates to:

Some will give, some won’t, and among those you meet there will be a big giver

Practical Tips for Clubs

Acquisition ‘Dating’ can be expensivePersonal/genuine is betterWe can help by:

Involving the Office of Annual GivingGiving you advice on your solicitation pieces

Renewing is easier and cheaperUpgrading should be easy with the right

stewardship

Stage 4:

Really getting to know each other

Practical Tips for Clubs

Develop a Strategic but Genuine Approach in collaboration with AAUM Development

Cultivate by Involve

Involve with Students In fundraising Giving Advice and feedback

Thanking Understand their interests Coordinate with On-campus interests

Stage 5:

The Proposal

No one should be surprised when you pop the question!

Asking for a big gift shouldn’t be any different

Practical Tips for Clubs

If done right it should feel like an audit or a root canal but be a genuine progression of the relationship

Your job doesn’t end here, stewardship is Critical

A gift is the beginning of a life long relationships

Big gifts are not always about Cash, there are many creative ways a person who wants to give can give

It will work!

A case study: “Jose Approach”Club volunteers leveraging their networks ‘All about the Students’Continued Communication

Results Year 1

Results April 2006-2007

Gift Level # of Gifts Total

$250 96$8,430

$499 28$7,600

$999 15$7,750

$2,499 11$11,500

$4,999 3$7,500

$9,999 2$12,500

$10,000+ 3$80,360

158$135,640

96 Gifts 6% of Money

57 Gifts 26% of Money

8 Gifts

68% of Money

Smaller Gifts Led to Big Gifts

Year 2

Already raised $45,000Including a $10,000 and $25,000 gift Cultivation in process for at least 2 new

major prospects

How we work together

Major/Special Gifts

Annual Gifts

Event-driven

Small Number of

Donors;

Larger Gifts

Larger Number of Donors; Smaller Gifts

Largest Number of prospects Supporting Club Activities; Smallest Amounts of SupportEncourage

awareness and philanthropy to scholarship efforts

Partner with “Development”

Renewal and upgrade of current donors

Club Scholarship Fundraising Model

Gift Processing Logistics

All gifts should be processed individually through the AAUM* Made payable to University of Michigan Ensures Receipt and Tax Deduction for individual Credit towards University Recognition

Events Must deduct the fair market value of attendance to

get the tax deductible portion Must provide disclosure if payment is greater than

$75

Awarding Scholarships

Now you have the Money

how do you award it?

Working Financial Aid 101

Awarding Your U-M Club Scholarships

The “Honeymoon”How Need Based Aid is determinedTreatment of UM-Club Scholarships in

the Financial Aid “Package”Tips for Selecting and Awarding

Scholarships to StudentsKeeping Track of Your Scholarship

Account

Determining Need-Based Aid

Financial Aid Programs were created with

the idea that the primary responsibility for

paying for college costs rests with the

student and his or her family. Need-based

financial aid is available to families who

demonstrate a need for additional

resources to help pay college costs.

Determining Need-Based Aid

The formula used to determine whether a

student is eligible for need-based aid is:

Cost of Attendance

- Expected Family Contribution (EFC)

- Scholarships/Other Resources

= Need For Aid

Treatment of U-M Club Scholarships in the Financial Aid “Package”

Scholarships recognize outstanding academic achievement and they improvethe overall quality of the financial aidpackage. Although scholarships are included as a resource when determiningeligibility for need-based aid, they cannonetheless reduce the need for a studentto borrow or work.

Treatment of U-M Club Scholarships in the Financial Aid “Package”

Scholarships are first, used to meet any

gap between the cost of attendance, how

much the family is expected to pay and

the financial aid offered. Next, they will

reduce the amount of need-based loan or

work-study.

Treatment of U-M Club Scholarships in the Financial Aid “Package”

Resident Student

Total Cost of Attendance $20,973

Expected Family Contribution - 10,701

Gross Need $10,272

Treatment of U-M Club Scholarships in the Financial Aid “Package”

Resident Student Aid Package Using 2006-2007 Figures

EFC $10,701Grants 2,199Federal Work-Study 2,500Federal Loans + 5,573* Total Aid = $10,272

= 20,973

If this student received a $2,500* scholarship, Federal Loans would be reduced by $2,500.

Treatment of U-M Club Scholarships in the Financial Aid “Package”

Non-Resident Student

Total Cost of Attendance $40,381

Expected Family Contribution - 10,701

Gross Need $29,680

Treatment of U-M Club Scholarships in the Financial Aid “Package”

Non-Resident Student Aid Package Using 2006-2007 Figures

EFC $10,701Grants 7,999Federal Work-Study 3,000Federal Loans + 7,500 Total Aid = $18,499

= 29,200

If this student received a $2,500 scholarship, aid would notbe reduced. The scholarship would go towards the gap ofunmet need.

Treatment of U-M Club Scholarships in the Financial Aid “Package”

Suggestions for Scholarship Amounts?

Resident Students $2,500

Non-Resident Students $3,000 - $5,000

Tips for Selecting and Awarding Scholarships to Students

U-M Clubs approach the scholarship

process in a variety of ways; however,

many request student rosters to identify

the students from their area.

Tips for Selecting and Awarding Scholarships to Students

There are two ways to request a roster:

1. The Alumni Association Roster Request

Form at: http://alumni.umich.edu/recruitment/roster-request.php

2. Contact your Office of Financial Aid Liaison

Tips for Selecting and Awarding Scholarships to Students

There are Important Things to Understand When Requesting a Roster

1. Student’s admission status

2. Timing of your request

3. Available information

4. Roster “Quirks”

Tips for Selecting and Awarding Scholarships to Students

Admission Status

The Office of Financial Aid only includes

admitted students on the rosters we

produce. There are basically two “types” of

admitted students.

1. Admitted

2. Matriculated

Tips for Selecting and Awarding Scholarships to Students

Timing

Timing is important for two reasons:

1. Students may or may not appear on a roster based on their admission status at the time a roster is requested.2. Based on the type of scholarship you are awarding (Merit vs. Need criteria), timing can make a difference in when you may want to

request your roster.

Tips for Selecting and Awarding Scholarships to Students

Available Information

Typically, only contact information is provided on rosters. This information includes names, addresses, phone numbers and email addresses. We are often asked to disclose the need of Individual students, and while we are unable todo this, we can rank students according to need.

Tips for Selecting and Awarding Scholarships to Students

Roster “Quirks”

Addresses and Zip CodesVerifying NeedChanges in Admission Status

Keeping Track of Your Scholarship Account

Annual Reports are available. Please

contact your liaison if you are not currently

receiving one, and would like to. We hope

to have a better system for reporting in

place in the near future. Until then, please

ask, ask, ask if you need anything.

Contact Information

Office of Financial AidUniversity of Michigan2011 Student Activities Building515 E. Jefferson StreetAnn Arbor, MI 48109-1316(734) 763-4119Angie Grunow algrunow@umich.eduEileen Brussulo efc@umich.eduSondra Fonville sondaka@umich.eduAl Hermsen ahermsen@umich.edu