Club Scholarship Fundraising

1. Club Scholarship Fundraising Club Leader Workshop June 20, 2009 Presented by Denise D’Allura Jeannie Moody-Novak

2. 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

3. Basics—Big Picture

4. Club Scholarship Fundraising Model Advance Relationship Larger Gifts Fewer Donors; where we want to be! Connect Promote Larger Number of Donors giving small gifts; frequently direct solicitation Largest Number of participants smaller amounts raised; frequently event driven

5. Fundraising and… On-line dating

6. 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

7. What you say is important… • It needs to catch their attention • Be something that interests them • Make you stand out

8. Practical Tip Promotion should focus on • Student Story • The case • Impact

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

10. 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

11. Connecting with the right person… Advice from my nanny: • Look for guys who are employed • Unmarried • Don’t live at home • Can drive

12. Practical Tips Identifying the best candidates • Prior donors • Volunteers involved with scholarships • Your Michigan network Broaden your horizons • Involve new or more volunteers • Use club functions to identify other potential donors

13. 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?”

14. Practical Tips Always available • Web links • Reply cards  Call to action • At events • Letter/email • Personal Ask

15. 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

16. The ultimate goal Happily ever after = Donors who provide significant support to scholarships

17. Examples • Chicago Model • Pooled Resources (Orange County, Lansing, and Greater San Francisco)

18. Practical Tips • Acquisition— ‘Dating’ can be expensive • The Students make it easy • Personal/genuine is better • Don’t think mass Mail ; think personal note • Renewing is easier and cheaper • Upgrading should be easy with the right stewardship • Establishing a scholarship takes a few leaders willing to make it happen

19. Club Scholarship Fundraising Model Major/Special Gifts Partner with “Development” Advance Relationship Small Number of Donors; Larger Gifts Renewal and upgrade of current donors Connect Annual Gifts Larger Number of Donors; Smaller Gifts Promote Event-driven Largest Number of prospects Supporting Club Activities; Smallest Amounts of Support Encourage awareness and philanthropy to scholarship efforts

20. 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

21. 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

22. 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)

23. 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

24. What I hope you remember • Communicate—Connect—Advance Relationships

25. Awarding Scholarships Now you have the Money how do you award it? Working Financial Aid 101

26. Awarding Your U-M Club Scholarships The “Honeymoon” • How Need Based Aid is determined • Treatment of UM-Club Scholarships in the Financial Aid “Package” • Tips for Selecting and Awarding Scholarships to Students • Keeping Track of Your Scholarship Account

27. 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.

28. 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

29. Treatment of U-M Club Scholarships in the Financial Aid “Package” Scholarships recognize outstanding academic achievement and they improve the overall quality of the financial aid package. Although scholarships are included as a resource when determining eligibility for need-based aid, they can nonetheless reduce the need for a student to borrow or work.

30. 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.

31. Treatment of U-M Club Scholarships in the Financial Aid “Package” Resident Student Total Cost of Attendance $22,729 Expected Family Contribution - 8,324 Gross Need $14,405

32. Treatment of U-M Club Scholarships in the Financial Aid “Package” Resident Student Aid Package Using 2008-2009 Figures EFC $8,324 Grants 6,076 Federal Work-Study 2,500 Federal 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.

33. Treatment of U-M Club Scholarships in the Financial Aid “Package” Non-Resident Student Cost of Attendance $ 44,761 EFC - * $ 8,000 Demonstrated Need $ 36,761

34. Treatment of U-M Club Scholarships in the Financial Aid “Package” Non-Resident Student Aid Package Using 2008-2009 Figures If this student received a $2,500 scholarship, aid would not be reduced. The scholarship would go towards the gap of unmet need.

35. 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 Consider renewable

36. 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.

37. 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

38. 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”

39. 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. • Admitted • Matriculated

40. 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.

41. Tips for Selecting and Awarding Scholarships to Students Contact Information • names, • addresses, • Phone • email Unable to disclose need but we can rank students according to need

42. Tips for Selecting and Awarding Scholarships to Students Roster “Quirks” • Addresses and Zip Codes • Verifying Need • Changes in Admission Status

43. 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.

44. 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

45. Contact Information Office of Financial Aid University of Michigan 2011 Student Activities Building 515 E. Jefferson Street Ann Arbor, MI 48109-1316 Jeannie Moody-Novak 734.936.3595 Elaine Crook 734.647.2816

46. Questions?

47. Update Alumni Association LEAD Scholars Leadership. Excellence. Achievement. Diversity