Community College Foundations in the Northeast & Mid-Atlantic States:

Transcription

1 Community College Foundations in the Northeast & Mid-Atlantic States: Trends and dbest Practices March 15, 2013 EACUBO 2013 Annual Workshop-Boston Walter J. Dillingham, Jr., CFA Joe Stiso Joseph E. April Managing Director-Endowments/Foundations AVP for Institutional Advancement Head of Institutional Advancement Wilmington Trust Mount Wachusett Community College Community College of Rhode Island New York, NY Gardner, MA Warwick, RI

2 About the Speakers: Joe Stiso is Associate Vice President for Institutional Advancement at Mount Wachusett Community Cll College in Gardner, Massachusetts. He has worked kdat tmwccf for 22 years and dhas worked kdat and consulted ltd for a host of two-year colleges across the US. Under his leadership the college has raised over $55 million in grants from public and private sources since He has worked in most aspects of advancement: in publications, fundraising, volunteer and board development, grant writing, grants management, Title III consultant and coordinator, and oversight of strategic planning and institutional research. He has also worked as a city administrator and in community development where he had responsibility for budgeting, human resources, intergovernmental affairs, and policy. He has degrees from Clark University and Worcester State College and has an advanced degree in nonprofit management. He has served on numerous nonprofits boards during his career. He is a member of the national board of directors for the Council for Resource Development in Silver Spring, MD, an organization which represents about 2,000 colleges. Walter Dillingham, Jr., CFA serves as Managing Director-Endowments & Foundations for Wilmington Trust-NYC and specializes in serving endowments, foundations and other institutional clients. Walter and his team (Leigh Weiss & John Lawson) work closely with their not-for-profit clients to help them achieve both their investment and philanthropic objectives. Mr. Dillingham has 27 years of financial services industry experience. Prior to Wilmington Trust, Walter spent ten years with Bank of America where he was director of Philanthropic Management and advised endowments, foundations, and health-care organizations in New York, New Jersey, and Pennsylvania. Walter is enrolled in the Masters in Philanthropy program at NYU. He has degrees from Bates Bt College Cll and dbb Babson College. Cll 2

3 About the Speakers: Joseph E. April is Associate Vice President for Advancement e & College Relations at Community College of Rhode Island and Senior Vice President of The Armistead Group. Joe has more than 25 years of experience in community college resource development programs. His professional expertise includes major gifts, planned giving and capital campaigns. In his current position at CCRI, Joe is leading the college into its first ever major gifts campaign. Prior to CCRI, Joe served as Executive Director of Development at Bay Path College where he successfully led their Charting New Paths Campaign raising i $16.1 Million. His prior work in Massachusetts includes work at both Holyoke Community College and MassBay Community College where he led development efforts for an Entrepreneurial Center and Automotive Technology Center respectively. As a consultant, Joe has participated in more than 25 feasibility studies, development audits, strategic plans, community summits, industry forums, and alumni strategic planning efforts across the country. Joe specializes in developing and implementing planned giving programs. He has served as lead consultant at numerous community colleges, which raised significant deferred and estate gifts in support of vision initiatives. Joe is a graduate of St. Petersburg Junior College and The University of South Florida. He currently lives in West Boylston, Mass with his wife and two daughters. 3

4 Agenda: Community Colleges: Trends & Best Practices I. Community Colleges in the U.S.: Overview &Trends II. Community College Foundations Wilmington Trust Research Study III. Community College of Rhode Island-Best Practices 4

5 Community Colleges in the U.S.: Overview &T Trends Section I

6 National ltrends in Community College Resource Development and Fundraising 2013 Joe Stiso, Associate Vice President for Development, Planning, and Institutional Research Mount Wachusett Community College Gardner, MA March 15, 2013 EACUBO Workshop, Boston, MA 6

7 Funding Picture Delta Cost Project: College Spending in a Turbulent Decade In aggregate, CC s ended the decade spending less per student than they had 10 years earlier; the only sector in higher education to spend less per student in nearly all standard expenditure categories Historic declines in state and local funder per FTE student could not be recouped by increases in tuition In FY 2010, the average single year decline in state and local appropriations to CC s was 15% Funding for CC s continued to fall further behind other public institutions 7

8 Policy Picture #1 American Association of State Colleges and Universities: Top 10 Higher Education State Policy Issues for Boosting Institutional Performance 2. State Operating Support for Public Higher Education 3. Tuition Prices and Tuition Policy 4. State Student Grant Aid Programs 5. College Readiness 6. Immigration 7. Competency Based and Online Education 8. Guns on Campus 9. Economic and Workforce Development 10. Consumer Protection Involving For Profit Colleges 8

9 Policy Picture #2 Reclaiming the American Dream: A Report from the 21 st Century Commission on the Future of Community Colleges 1. Increase completion rates by 50% by 2020; preserve access, enhance quality, anderadicate attainment gaps associated with income, race, ethnicity, and gender. 2. Improve college readiness: By 2020, reduce by half the number of students entering college unprepared for rigorous college level level work; double the number of students who complete developmental education programs and progress to successful completion of related freshman level courses. 3. Close the American skills gaps by sharply focusing career and technical education on preparing students with the knowledge and skills required for existing and future jobs in regional and global economies. 9

10 Policy Picture #2 (continued) Reclaiming the American Dream: A Report from the 21 st Century Commission on the Future of Community Colleges 4. Refocus the community college mission and redefine institutional roles to meet 21 st Century education and employment needs. 5. Invest in support structures to serve multiple community colleges through collaboration among institutions and with partners in philanthropy, government, and the private sector. 6. Target public and private investments strategically to create new incentives for institutions of education and their students and to support community college efforts to reclaim the American Dream. 7. Implement policies and practices that promote rigor, transparency, and accountability bl for results in community colleges. 10

11 Trends: Enrollment & Demographics Enrollment Race/Ethnicity Male/Female Full time/part time Career vs. Transfer Urban vs. Rural Other Characteristics Unique to CC Students 11

12 Trends in Fundraising Donor engagement behavior Impact Investment 12

13 Trends in Fundraising Changing Demographics More nonwhite babies born than white babies (Census Bureau) Hispanics, Blacks and Asian Americans flexing political muscle # of Asian American students, and their philanthropy, grows Real Estate Foundations Used to manage college/university real estate holdings, build public/private partnerships, accept gifts of real estate Tidewater Community College, VA Northern Virginia Community College, VA Google university real estate foundation and you ll find many references 13

14 Trends in Fundraising Mobile apps in fundraising CC fundraising looking more like 4 year fundraising: All staff (president, VPs, deans, directors, faculty) participate in private and public fundraising Alumni, alumni, alumni Analytics, analytics, analytics Analytics Social Media and Crowdfunding Catapult, Gofundme, Indiegogo, g Kickstarter 14

15 Social Media 15

16 Trends in Public Grants Three more cliffs: debt ceiling, sequestration, continuing resolution for 2013 Fiscal Cliff deal SEEMED helpfulto non defense discretionary funding (6% cut instead of 8.2% cut), but powers that be in Department of Education say they are doing their planning based on 8.2% 82% cut. More Accountability and Metrics Staffing: colleges are having trouble hiring evaluators and IR staff 16

17 Trends in Public Grants Tempting to eliminate grant positions as funding dries up but see slides on Analytics and Leadership YOU NEED THE EXPERTISE YOUR GRANT STAFF CAN BRING TO PRIVATE FUNDRAISING and FOUNDATION FUNDRAISING 17

18 Analytics Your own database Voluntary Support of Education Survey Prospect research databases WealthEngine Comprehensive Prospect Research Others Relationship Mapping Muckety MarketVisual Create your own Web analytics ay Donors can t find your foundation page to give 18

19 Leadership Picture Thewell is going dry: lack of qualified, available resource development leadership Burn out: according to CompassPoint Nonprofit Services survey, half of top fundraisers in country want to quit their jobs Adding critical skills: Database and analytic skills Crowdfunding Social media 19

20 Community College Foundations Wilmington i Trust Research Study Section II

21 Community College Foundations: Research Study: Insights on Fundraising and Endowment Strategies Walter Dillingham, Wilmington Trust 21

22 News: First Presidential Debate: October 3 rd, 2012 President Obama: "When it comes to community colleges, we are seeing great work done out there all over the country because we have the opportunity to train people for jobs that exist right now. And one of the things I suspect Governor Romney and I probably agree on is getting businesses to work with community colleges so that they're setting up their training programs. Mr. Lehrer: Do you agree Governor? President tobama: Let let let l me just finish i the point. Mr. Romney: Oh yeah. Oh, yeah. President Obama: I suspect it ll be a small agreement. Mr. Romney: It s going over well in my state, by the way, yeah. First Presidential Debate: Oct. 3, 2012, Denver, CO. 22

23 Research Study Community Colleges Foundations in the Northeast & Mid-Atlantic States 23

24 Community College Foundations By State-NE/Mid-A State Number of Community Colleges # of Separate Foundations # of Community Colleges without a foundation New York % Virginia % Massachusetts % New Jersey % Pennsylvania % Maryland % Connecticut % Maine % New Hampshire % Vermont Delaware % Rhode Island % Ttl Total % % with Separate Foundations Sources: AACC Data; Form 990s; websites 24

25 Why Utilize a Separate Community College Foundation? 1. Increasing Directors Opportunities: leadership opportunities 2. Maintaining Focus/Control: focus on fundraising, not operations 3. Marketing: focused marketing strategy 4. Separating Finances: separate funding from government 5. Donor choice: give to a separate entity 6. Investing Endowment Funds: endowed scholarships & endowments 7. Limiting Liability: funds and trustees 8. Borrowing: provides a separate set of collateral 9. Real Estate Management: acquire, develop, managed RE projects 10. Fundraising Vehicle for Foreign Colleges: target U.S. donors (Variety of reasons with enhanced fundraising being key) 25

26 Community College Foundations By State-Analysis 79% of community colleges use separate foundations Reasons foundations not used: Private school For profit school Other interesting observations: VA: 1 for 23: Virginia Foundation for Community Colleges NH: 1 for 7 Community College of NH Foundation-no fdns MD: 3 for 1: Allegany College of Maryland 26

27 Top 20 Community College Endowments-NE/Mid-A Rank College Name State Type Foundation Name $ Assets 1 Culinary Institute NY Private None $77.8MM 2 New England Institute of Technology RI Private None $34.5MM 3 Northampton Area PA Public Northampton Community $29.9MM9MM Community College College Foundation 4 Harrisburg Area Community College PA Public Harrisburg Area Community College Foundation $27.4MM 5 Dean College MA Private None $26.7MM 6 Westchester Community College NY Public Westchester Community College Foundation $26.7MM 7 Montgomery College MD Public Montgomery College $26.3MM Foundation 8 Norwalk Community College CT Public Norwalk Community College Foundation $23.2MM 9 Landmark College VT Private None $15.5MM 10 Broome Community College SUNY NY Public Broome Community College Foundation $14.8MM 27

28 Top 20 Community College Endowments-NE & Mid-A Ran k College Name State Type Foundation Name $ Assets 11 Maria College NY Private None $14.3MM 12 Trocaire College NY Private None $13.7MM 13 Northern Virginia Community College 14 Southwest Virginia Community College VA Public Northern Virginia Community College Educational Foundation VA Public Southwest Virginia Community College Educational Foundation 15 SUNY Canton College NY Public SUNY Canton College Foundation 16 Union County College NJ Public Union County College Foundation 17 Jamestown Community College NY Public Jamestown Community College Foundation 18 Lackawanna College NY Public Lackawanna Junior College Foundation 19 Cayuga Community College 20 Patrick Henry Community College NY Public Cayuga County Community College Foundation VA Public Patrick Henry Community College Foundation $13.7MM $12.6MM $11.6MM $11.4MM $11.3MM $11.2MM $11.1MM $11.1MM 28

29 Community College Foundations Northeast t&midatl Mid-Atlantic ti Fundraising i Observations 29

30 Community Colleges-Fundraising Observations: State Number of Community Colleges Average Enrollment per college Average Annual Contributionsrecent data Prior 5 year Average Giving Trend (last year vs. 5 year average) #Trustees New York 52 7,884 $992,506 $1,071, % 21 Virginia 26 8,116 $796,839 $790, % 21 Massachusetts 26 6,294 $648,837 $697, % 22 New Jersey 21 9,025 $470,668 $495, % 29 Pennsylvania 21 7,488 $1,278,356 $1,198, % 24 Maryland 16 19,086 $731,934 $961, % 23 Connecticut 15 4,893 $583,836 $756, % 22 Maine 10 2,567 $488,173 $278, % 18 New Hampshire 10 1,609 $76,322 $149, % 12 Vermont 4 2,233 $548,757 $641, % 19 Delaware 4 3,891 $355,533 $1,866,687-81% 12 Rhode Island 2 10,413 $456,039 $538, % 33 Overall Averages 207 7,317 $771,823 $887, % 22 30

31 Community Colleges Fundraising Strategies-Observations State Number of Community Colleges Average Enrollment % Planned Giving % Legacy Society # of Special Events % On-line Giving New York 52 7,884 78% 35% % Virginia 26 8,116 92% 35% % Massachusetts 26 6,294 73% 36% % New Jersey 21 9,025 71% 33% % Pennsylvania 21 7,488 76% 38% % Maryland 16 19,086 94% 38% % Connecticut 15 4,893 50% 7% % Maine 10 2,567 86% 14% % New 10 1,609 29% % Hampshire Vermont 4 2,233 50% 25% 0 100% Delaware 4 3,891 50% 50% % Rhode Island 2 10, % Weighted Ave. (# of schools) 74% 31% 72% 31

32 Fundraising Comparison- MASS. Community Colleges Fundraising Overall Northeast MASS. Market Strategy Average Average Annual Average $771,823 $648, Fundraising Trend -8.1% -7.0% Average # Directors Planned Giving 74% 73% Legacy Society 31% 36% On Line Giving 72% 91% 32

33 Fundraising Observations- Virginia Community Colleges Trustees Range: 10 to 31 Real Estate Foundations-$1MM Commercial RE Major Gifts Campaign; recent $11MM Capcam License plates Life Insurance, Art work $5MM Foundation Grant Pledge for scholarships Ten person staff 33

34 Community College Foundations- Northeast & Mid-Atlantic States Investment Observations 34

35 Endowment/Investment Portfolio Observations State Number of Community Colleges Average Enrollment Average Investment Portfolio Average Growth Rate of Endowment Long Term vs. Short term Strategies # Short Term Investment Strategies New York 52 7,884 $6,828, % 90% 5 Virginia 26 8,116 $5,616, % 100% 0 Massachusetts 26 6,294 $5,700, % 91% 2 New Jersey 21 9,025 $4,110, % 81% 4 Pennsylvania 21 7,488 $7,388, % 100% 0 Maryland 16 19,086 $7,227, % 100% 0 Connecticut 15 4,893 $3,688, % 93% 1 Maine 10 2,567 $2,232, % 100% 1 New Hampshire 10 1,609 $7,027, % 100% 0 Vermont 4 2,333 $8,200, % 100% 0 Delaware 4 3,891 $6,466, % 50% 1 Rhode Island 2 10,413 $18,516, % 100% 0 Averages (*Weighted # Schools) $5,829,953 23%* 93%* 14 35

36 Endowment/Portfolio Comparison-MASS. Strategy Overall NE/Mid-A MASS. Market Average Average Average Investment $5,829,953, $5,700,152, Portfolio Average Portfolio Growth Rate Endowment Payout Ranges 23% 13.0% 1% to 26.5% 1% to 8.4% Long-Term 93% 91% Investment Strategies # Colleges invested Short Term

37 Cash Positions-A Closer Look at Two States State #1: % of Cash State #2: % of Cash Foundation A 4.6% Foundation A 2.6% Foundation B 7% Foundation B 5.3% Foundation C 11% Foundation C 7% Foundation D 13% Foundation D 13% Foundation E 16% Foundation E 15% Foundation F 17% Foundation F 19% Foundation G 17% Foundation G 39% Foundation I 22% Foundation I 53% Foundation J 24% Foundation J 56% 37

38 Endowment Spending Language-Income Approach Endowed Gift to the Foundation: You may choose to invest in future generations of our Community College by creating an endowed fund with the Foundation. When you designate an endowed fund for your gift, the principal pa is invested in perpetuity petu ty and the earned interest is used as the donor intends. 38

39 TtlRt Total Return Spending Approach With this single act of generosity, your gift will be an ongoing benefit to students. Your donation's principle contribution remains untouched with the earnings supporting the programs of your choosing. Endowment funds of the Community College Foundation are managed dby a professional investment advisor. The primary objective for the advisor is to conserve and enhance the capital value of the fund in real terms, through asset appreciation and income generation. The investment strategy of the fund is to emphasize total return, which is defined as the aggregate of all returns from capital appreciation and dividend and interest income 39

40 Community Colleges: The New Normal 1. Trends: Demand is positive; ;government support is declining +Think like a four year school 2. Maximize your foundation fundraising-be diversified +Planned giving and the use of technology are key 3. Maximize your foundation investments-be diversified +Asset allocation and spending have great impact on endowment 40

41 Community College of Rhode Island- Best tpractices Section III

42 Community College of Rhode Island 42

43 HCC Campaign Goal Raise $3 Million to Outfit A Building CCRI Campaign Goals Create a Diversified, Sustainable and Comprehensive Advancement Program 2. Achieve financial goals % Participation rates from key groups 4. Diversify funding base 5. Recruit new volunteer leadership 6. Educate key stakeholders 7. Expand the planned giving program 8. Create an Alumni Program 9. Develop eeopan ROI Model 10. Not a Gift but an Investment 43

44 Largest agestcc in New England. ga One State Four Campuses Transfer and Arts 60,000 Alumni within the state Workforce Training Solutions Second Highest Unemployment in the Country Outmigration and Brain Drain Not Workforce Friendly Political l Stagnationti 44

45 Developing the Plan College Funding Priorities Impactful External Projects: Likely to be Supported Prioritized Funding Projects Fundraising Initiatives 45

46 Passion & Inspiration CCRI s Half Century Campaign Community & Economic Impact Statements Value Added Peer to Peer Flexibility in Gifting Sustainability Endowments Results? Student Success Workforce Solutions Academic Excellence ROI Driven Messaging 46

47 CCRI s Donor s For Life Planned Gifts Major Gifts Annual Gifts Special Events Awareness Education Outreach 47

48 Pre Foundation Foundation for the Foundation Director Policies & Procedures Finance & Investment Gift accounting Bay Path College Annual Fund Endowment policies, plans and monitoring College Foundation MOU Investment policy & guidelines It is OK to Turn Down a Gift Value added relationships with financial partners especially in planned giving The business office is your friend 48

49 Questions & Answers 49

50 Thank You Speaker Contact Information Walter J. Dillingham, Jr., CFA Managing Director Wilmington Trust 520 Madison Ave. New Y ork, NY wdillingham@wilmingtontrust.com (212) Joe April Associate Vice President for Advancement & College Relations Community College of Rhode Island joseph@armisteadforward.com d (859) Joe Stiso AVP for Institutional Advancement Mount Wachchusett Community College 444 Green Street Gardner, MA jsisto@mwcc.mass.edu (978)

51 Disclosure This publication is not designed or intended to provide financial, tax, legal, accounting, or other professional advice since such advice always requires consideration of individual circumstances. If professional advice is needed, the services of a professional advisor should be sought. This publication is for information purposes p only and is not intended as an offer, recommendation, or solicitation for the sale of any financial product or service or as a determination that any investment strategy is suitable for a specific investor. Investors should seek financial advice regarding the suitability of any investment strategy based on their objectives, financial situations, and particular needs. 51