market analysis of alumni giving trends
TRANSCRIPT
Research conducted by AlmaMatters.org
AlmaMatters.org
Alumni Contributions
Total voluntary contributions = $29.75 billion dollar industry
$8 billion was alumni donations
Donations have been fairly stagnant (increase of 3 billion over the past 10 years)
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Enrollment Stats Percentages of 16 to 24 year olds enrolled in college:
1972: 49%
1997: 67%
2001: 62%
2005: 69%
Note: From 2004 to 2014, NCES projects a rise of 11 percent in enrollments of persons under 25, and an increase of 15 percent in the number 25 and over
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Voluntary Support Breakdown
Voluntary Support of Higher Education, 200729.75 billionAlmaMatters.org
Marketing Mix Telephony
Mostly handled in house, student labor, profitable
Direct Mail High response rate
E-Mail Fairly new means of communication
Website Great for keeping alumni up to date, size and scope
varied
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Typical Donation Facts Based upon surveys conducted, universities generally get a
1 to 2% response from mailers, phone calls, or invitation cards to events.
Donation amounts vary: <$2,500.00 Phone calls/Direct mail >$2,500.00 Campus events Larger donations are typically from wills, foundations,
estates
Schools investment for fund-raising is about 10 cents per dollar received. Note: This number applies to retention of existing donors.
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Institution Touch Points
Anniversary of graduation
Homecoming
Athletic events
Ground breakings/celebrations
Fundraising campaigns
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Donor Lifecycle Graduation to 10 year mark
Maintaining relationship
10 plus yearsMarriage, promotion, kids, higher disposable
income
20 plus yearsLeaving a legacy
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Strengths of the Market
Size of the market
Continuously growing alumni base
Loyalty is established with alumni early on
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Weaknesses Demographics – several segments
Schools struggle to engage alumni
List neglect
Short term fund raising vs. long term relationship building
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Opportunities Growing base of alumni
Longer life spans, increasing capacities, new degree offerings
Room for growth - 88% of alumni do not contribute
Schools recognize the need for new marketing solutions
Engage current students now
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Threats
EconomyTight economy, unemployment rising,
political changes approaching
Performance StandardsAthletics, academics, rankings
Competition for donor dollars
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Conclusion Schools need to start engaging students now to
increase chances of a donation in the future
There is a need for innovative marketing concepts to engage alumni
Fund raising is essential for schools to cover costs and to keep national ranking Tuition typically covers 73% of a schools operating cost.
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References 1). Kaplan A., (2007). Council for Aid to Education.
www.cae.org. Retrieved April 2, 2008, from http://www.cae.org/content/display_press.asp?id=73
2). Student Effort and Educational Progress. (2007). Transition to College, (1), . Retrieved April 3, 2008 from http://nces.ed.gov/programs/coe/2007/section3/indicator25.asp#info database.
3). Golden D., (2007). MATHLESSONS.
http://online.wsj.com. Retrieved April 1, 2008, from http://online.wsj.com/public/article/SB117279405348024132-9gtgPqmUvqfygoTj_VTDcS48J1o_20070309.html?mod=yahoo_free
Interviews Conducted are private information.
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