Club Scholarship Fundraising

Club Scholarship Fundraising

Club Leader Workshop

June 20, 2009Presented by

Denise D’Allura

Jeannie Moody-Novak

Goal

Inspire you to raise club scholarship money: using sound fundraising strategies capitalizing on your club resources

Provide logistical information to help you

manage your scholarship

Basics—Big Picture

Larger Gifts

Fewer Donors; where we want to be!

Larger Number of Donors giving small gifts; frequently direct solicitation

Largest Number of participants smaller amounts raised; frequently event driven

Club Scholarship Fundraising Model

Promote

Connect

Advance Relationship

Fundraising and…

On-line dating

On-line dating is like fundraising because…

It starts with getting their attention There will be plenty of ‘chatting’ with lots of

people You never know when you are going to meet

someone who is interested What you say is important Every interaction is an opportunity

What you say is important…

It needs to catch their attentionBe something that interests themMake you stand out

Practical Tip

Promotion should focus onStudent Story The case Impact

Communicating

When on-line dating there are many ways to ‘talk’: Instant message Facebook Texting E-mail Phone Call

Practical Tips

Promote your scholarship—6-8 touch points Web Presence List serve stories --3 a year Materials at events Use every event to talk about your scholarship Feature students Show impact Understand and share the case that works

best in your community

Connecting with the right person…

Advice from my nanny:Look for guys who are employedUnmarriedDon’t live at homeCan drive

Practical Tips

Identifying the best candidatesPrior donorsVolunteers involved with scholarshipsYour Michigan network

Broaden your horizons Involve new or more volunteersUse club functions to identify other

potential donors

Asking them out

Different levels…“Hey, if you ever want to hang out…”“Hey, would you like to hang out?”“Hey, I would really like it if you would

hang out with me…”“Would you like to hang out again?”

Practical Tips

Always available Web links Reply cards

Call to actionAt eventsLetter/emailPersonal Ask

The most successful strategy will include:

Compelling message that has been well communicated

Good list of potential donors Volunteers who are willing to make a

personal appeal

The ultimate goal

Happily ever after = Donors who provide significant support to scholarships

Examples

Chicago Model

Pooled Resources (Orange County, Lansing, and Greater San Francisco)

Practical Tips

Acquisition— ‘Dating’ can be expensiveThe Students make it easyPersonal/genuine is better

Don’t think mass Mail ; think personal noteRenewing is easier and cheaperUpgrading should be easy with the right

stewardshipEstablishing a scholarship takes a few

leaders willing to make it happen

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”

Club Scholarship Fundraising Model

Promote

Connect

Advance Relationship

Renewal and upgrade of current donors

A word about the economy…

In my experience… People are still giving, just less To keep our program top of mind we can’t be

afraid to ask The case for scholarship has never been more

compelling Different segments are affected differently

Gifts of $25,000 or less are down 16% Stock gifts are looked at differently

Account Logistics

Minimum to establish an Endowed Account $50,000 Will be invested as part of the University Pooled endowment

fund Club will be able to use earned interest for scholarship;

principal is never touched

Minimum to establish an expendable account is $10,000 This would allow you to accept contributions on-line

Other Options

For clubs who solicit gifts from individual donors: Send donor checks to AAUM

c/o Jane Spiess; make sure you put the club name in the memo of checks

The funds will be added to our pooled account

Can use this fund to accumulate enough to open an expendable or endowed fund

or can use this fund to award current year scholarships (must have an approved scholarship selection process in place)

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

What I hope you remember

Communicate—Connect—Advance Relationships

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.


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.


Resident Student

Total Cost of Attendance $22,729

Expected Family Contribution - 8,324

Gross Need $14,405


Resident Student Aid Package Using 2008-2009 Figures

EFC $8,324Grants 6,076Federal Work-Study 2,500Federal Loans + 5,829* Total Aid = $14,405

= 22,729

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


Non-Resident Student

Cost of Attendance $ 44,761

EFC - * $ 8,000

Demonstrated Need $ 36,761


Non-Resident Student Aid Package Using 2008-2009 Figures

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

EFC $8,000

Grants 11,900

Federal Work-Study 3000

Federal Loans 8600 Total Aid= 23500

$31,500

Tuition 44,761

Gap $13,261


Suggestions for Scholarship Amounts?

Resident Students $2,500

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

Consider renewable

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.


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


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”


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


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.


Contact Information names, addresses, Phone email

Unable to disclose need but we can rank students according to need


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.

OFA Staff Resources

Jeannie Moody-Novak Donor Stewardship Reporting Donor Student

Relations Trouble shooting

Elaine Crook Processes club

scholarship Provides rosters Provides current

expendable balances

Contact Information

Office of Financial AidUniversity of Michigan2011 Student Activities Building515 E. Jefferson StreetAnn Arbor, MI 48109-1316

Jeannie Moody-Novak 734.936.3595Elaine Crook 734.647.2816

Questions?

Update

Alumni Association LEAD ScholarsLeadership. Excellence. Achievement. Diversity

Club Scholarship Fundraising

Documents

Transcript of Club Scholarship Fundraising