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.
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 $22,729
Expected Family Contribution - 8,324
Gross Need $14,405
Treatment of U-M Club Scholarships in the Financial Aid “Package”
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.
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
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 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
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
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
Contact Information names, addresses, Phone email
Unable to disclose need but 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.
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