Vice President for Resource Development
Resource Development develops philanthropic financial resources to support MIT's academic, research, and educational activities. Very broadly, we engage six constituencies in this process: corporations, foundations, major gift individual donors, principal gift individual donors, planned giving donors, and non-alumni donors. Our efforts to attract private support from these constituencies rely heavily on the support of research and systems, communications and donor relations, finance and administration, and strategic program development. Resource Development's long term strategic goal is to develop the collective philanthropic capacity of our constituencies to sustain a level of giving of at least $200 million annually in cash by 2004. The success of the $1.5 billion Campaign for MIT is critical to this goal because it not only focuses the Institute on the most important priorities for the future, but it engages and challenges our donor constituencies to understand their role in shaping MIT's future. Our ability to succeed in both of these arenas in the near and long term will not only depend on how we identify, engage, and solicit our current constituencies, it will depend on how we develop new markets, constituencies, and initiatives-all while maintaining and sustaining the best staffs possible.
As the Campaign for MIT reached the mid-point this year, as is typical of campaigns at midlife, we experienced a strategic sea change. While the early years focus on attracting lead gifts in the seven, eight, and nine figure range, it is during the middle years that the base for future philanthropy beyond the campaign is broadened and strengthened. Despite a few ripples in an otherwise rosy economy, the Campaign for MIT has not only remained well ahead of schedule, giving in the five and six figure ranges has continued to grow steadily. At fiscal year end, the Campaign for MIT stood at $1.25 billion. With three years remaining, we have raised over 80 percent of the $1.5 billion goal.
Equally important to our organizational success is our ability to maintain a client orientation, collaborate across institutional silos, emphasize sustainability in our work, and professionalism and accountability in our performance.
Resource Development continues to cultivate philanthropic relationships targeted to key institutional priorities by carefully listening and understanding the needs of our clients-be they corporations, foundations, alumni, volunteers, faculty, labs, departments, centers, MIT's senior officers, or administrative staff across the Institute. Not only is client feedback a standard part of all donor related educational programs, web-based and written communications, it is integral to the fabric of how we conduct our business.
Collaboration is critical to effectively generate private support for needs across the Institute. Resource Development works closely with the development efforts in each school to identify, cultivate, and solicit prospects, market initiatives, and support the professional development of the school based development officers. We partner with the Alumni/ae Association to sustain and maintain the alumni database of record, ADONIS, and conduct alumni/ae surveys. Administratively, Resource Development has contributed to the Institutional efforts to develop and implement best practices in financial administration and human resources.
Resource Development works to sustain ongoing and increasing philanthropy from our constituencies through targeted stewardship programs and relevant, personal communication and engagement. Since the staff serve as facilitators and liaisons in cultivating these important institutional relationships, staff retention is a critical component to sustainability. We encourage long term staff retention with careful attention to industry salary standards, and an emphasis on professional development and growth on the job.
The Resource Development staff is highly respected by our colleagues in the development field. In the last two years we have been repeatedly honored by CASE, the Council for Advancement and Support of Education. In addition to receiving the 2001 Circle of Excellence Award for Educational Fundraising, we also received The Circle of Excellence Award for Performance. Two publications, The X and Y Campaign Case and the brochure for Graduate Fellowships were also acknowledged with the Circle of Excellence Award. Our staff continue to serve as featured speakers and presenters at a variety of professional conferences including: CASE, NEDRA (the New England Development Research Association), the IVY/MIT Stanford Conference and constituent conferences, AAAS, (American Association for the Advancement of Science), The First Annual Naval-Industry R&D Partnership Conference, Product Advisory Groups for ADVANCE software.
The work of Resource Development directly affects the Institute's bottom line. Every month the Executive Committee of the Corporation reviews the monthly private support totals and overall progress of the campaign. Quarterly, the MIT Corporation and the Campaign Steering Committee do the same. Not only do we annually review and update job descriptions and measure employee accomplishments and progress toward goals in the annual departmental performance review process, as a department our efforts are regularly reviewed and adjusted to guarantee success.
Private support for FY2001 totaled $200.8 million and included: $192.7 million in gifts, grants, and bequests, and $8.1 million in support through membership in the Industrial Liaison Program. The total compares with $233.6 million in 2000, $209 million in 1999, $143.9 million in 1998, and $133.6 million in 1997. Gifts-in-kind for the past year (principally gifts of equipment) were valued at $6.2 million. By source, gifts from alumni totaled $62.7 million; non-alumni friends: $15.9 million; corporations, corporate foundations, and trade associations: $53.1 million; foundations, charitable trusts, and other charitable organizations: $47.3 million; and others: $13.7 million.
Expendable and endowed funds were designated as follows: unrestricted, $26.4 million; research and education programs, $87.4 million; faculty salaries, $21.3 million; graduate student aid, $17 million; undergraduate student aid, $8.8 million; undergraduate education and student life, $9.7 million; building construction funds, $20.5 million; and undesignated, $1.6 million.
During the year, Resource Development promoted three women and two men. Twenty-one open staff positions were filled, including sixteen women, three of whom were African American and one Asian man. Resource Development continued its effort to recruit qualified women and minority candidates by working closely with Human Resources and others to identify new resources from which to draw its applicant pool. Key appointments include: Christine Rinaldi to Director of Donor Partnerships and Special Projects, Pamela Lomax to Director of School Development Services, and Rachel Hayes to Director of Communications and Marketing in Corporate Relations.
In year four of this seven-year effort to raise $1.5 billion, the Campaign for MIT crossed the mid-point and continued to reach out to the broader alumni/ae body while working to develop support from new constituencies. Following on the heels of last year's extraordinary seven, eight, and nine figure gifts-ringing up record setting fundraising totals-this year was characterized by more modest growth overall, but significant growth in five and six figure gifts and good progress in raising support for key campaign initiatives.
At fiscal year end, the campaign total stood at $1.25 billion, well ahead of schedule. When measured across key campaign priorities, MIT raised:
- $163.7 million for faculty chairs
- $84.7 million for scholarships and other undergraduate aid
- $46.8 million for undergraduate education and student life
- $114.1 million for graduate fellowships
- $433.4 million for research and education programs
- $258.5 million for construction and renovation
- $120.1 million for unrestricted purposes
- $33 million remains undesignated
As detailed later in this report, three areas of emphasis were key to our efforts to broaden the base and explore new constituencies. Our partnership with campaign volunteers in the Campaign Steering Committee, the Corporation Development Committee, and the Campaign Network helped bring the campaign to alumni/ae in regions across the country. Our partnership with the development efforts in each of the schools helped define and market key academic and research initiatives in need of private support. And finally, our targeted approach to cultivating and educating alumni about the philanthropic potential of life income giving and our efforts to identify and cultivate non-alumni in our Donor Partnerships program are important investments to develop these two constituencies for future philanthropy.
The Office of Principal Gifts (OPG) engages the Institute's most generous individual donors, thanks them for their generosity, and encourages them to make additional multi-million dollar gifts. Under the leadership of Lucy Miller, OPG coordinates the efforts of the senior officers of the Institute and the Campaign Chairman to advance the relationships between current and future benefactors whose gifts undergird and transform MIT.
Key accomplishments this year included: negotiation of key gifts designated for core priorities including: the MITE2S program, graduate fellowships, and faculty support; organization of eleven stewardship events to celebrate key campaign gifts; and support of five international trips by senior officers to continue the cultivation of international alumni and friends. In collaboration with the Offices of Campaign Giving, Donor Partnerships and Special Projects, Foundation Relations, Leadership Gifts, and the School development offices, we increased the pool of individual donors with lifetime giving of $1 million or more from 170 to 193 donors.
The Office of Principal Gifts, in collaboration with the Offices of Strategic Program Development, Campaign Giving, Leadership Gifts, Special Projects and Donor Partnerships, and Development Research and Systems continued to support the work of the Campaign Steering Committee (CSC) chaired by Campaign Chairman Ray Stata '57 EE. The CSC, a group of 16 alumni volunteer members, accepted cultivation and solicitation responsibility for 49 additional prospects bringing their active assignment total to 147.
The Office of Campaign Giving (OCG) cultivates, solicits, and stewards alumni and friends capable of making gifts of $50,000 or more to the Campaign for MIT. Members of the OCG field staff work closely with the senior officers, the deans and development officers of the schools, the Office of Principal Gifts and other offices in Resource Development, the Alumni/ae Association and volunteers to solicit 4000 identified prospects and donors over the course of the campaign. With each OCG gift officer responsible for approximately 150 active prospects, overall the Office manages approximately 2000 prospective donors from across the country at any given time.
As the campaign reached the mid-point, OCG focused on expanding outreach to prospects in established regions, partnering with volunteers in key markets, all while completing the transition to full staffing and continuing to train and educate a relatively new staff about fundraising initiatives and Institute culture. Key cultivation events included: technology breakfasts in New England and Silicon Valley, company-based alumni gatherings, and dinners hosted by volunteers. In collaboration with volunteers, the School of Engineering, and the Office of Communications and Donor Relations, OCG organized IdeaStream, the School of Engineering's conference for venture capitalists. OCG staff continued to identify, recruit, and deploy volunteers for the Corporation Development Committee and the Campaign Network; manage the Emma Rogers Society; and support fundraising efforts for the Arts at MIT.
Directed by Judith V. Sager, the Office of Gift Planning (OGP) facilitates life income giving to MIT through Unitrusts, Gift Annuities, Pooled Income Funds, and bequests. The OGP engages donors directly to encourage life income giving, in addition to supporting the efforts of the gift officers across the Institute working with prospective life income donors.
The Office of Gift Planning works closely with the Offices of Campaign Giving, Principal Gifts, and the Alumni Association to identify, cultivate, solicit, and steward planned gifts and to expand the base of donors to The Campaign for MIT. OGP hosted informative tax-wise seminars for prospective donors in Palo Alto, CA, Stanford, CT and Cambridge, MA; conducted two educational sessions for campaign volunteers, and regularly educated donors with mailings highlighting the tax benefits of specific types of gift property and gift vehicles. In the first of two marketing brochures to engage and educate prospective donors, OGP published Ways of Giving to Support MIT describing key life income giving vehicles and their tax benefits.
Gifts in fiscal year 2001 totaled $8.3 million. Three donors made gifts in the $500,000 to $1 million range, which accounted for 28 percent of all gifts received. Fifty-two donors made gifts ranging in size from $25,000 to $500,000.
Established in December 2000, the Office of Donor Partnerships and Special Projects creates and sustains opportunities for long-term cultivation of non-alumni capable of significant philanthropy in support of MIT. The effort is geared toward individual philanthropists and/or their private foundations. Christine Rinaldi serves as Director.
In close collaboration with MIT's senior administrators and faculty, the offices of Resource Development, the MIT Corporation as well as other high level volunteers, identification and cultivation of non-alumni prospects were the key priority for the first six months of this program. Through these efforts, a number of gift conversations are underway.
The Office of Communications and Donor Relations (COMDOR) supports and enhances MIT major gift fundraising by providing editorial content, marketing initiatives, stewarding donors and planning events. Led by Laure A. Morris, the staff focused on two primary areas this year: the coordination and enhancement of stewardship and recognition efforts for campaign donors and other institutional supporters, and the development and communication of key institutional messages related to the Campaign for MIT.
Designed to keep major individual donors engaged with the Institute and informed of the impact of their philanthropy, COMDOR initiated a new program to customize stewardship for MIT's most generous donors. After reviewing existing stewardship efforts across MIT and developing a computerized tracking system in ADONIS, COMDOR collaborated with prospect managers to develop and document 450 customized stewardship plans.
The new donor recognition circle, The Catalyst Society, was launched to recognize and thank donors of $100,000 or more to the campaign with an initial 345 members inducted. COMDOR also produced annual reports on 182 individual scholarship funds and wrote approximately 1,000 personalized gift acknowledgement letters and other letters of appreciation to key donors from the Institute's senior officers.
Over two dozen events for donors, prospects, and volunteers were organized in Cambridge and throughout the country including two campus visits, and Tech Breakfasts both on campus and in northern California. COMDOR provided significant logistical and marketing support for IdeaStream, the School of Engineering's conference for venture capitalists.
Campaign communication and marketing this year included the development of an award-winning publication, Graduate Fellowships at MIT: Attracting the Best, Inventing the Future and a second articulating the institutional vision for campus development, Magnetic Destinations. The campaign newsletter, (CR)2, shorthand for the campaign slogan "Calculated Risks, Creative Revolutions," issued its first two editions highlighting campaign news, priorities, and donors. Spectrum, the 16-page human interest newsletter was honored for its excellence on both the regional and national levels by the Council for the Advancement and Support of Education. COMDOR also published several campaign working papers to build the case for support in particular priority areas, MIT Facts 2000 and Fast Facts, a monthly electronic newsletter for key volunteers, alumni/ae and friends.
Of particular note this year is the increased collaboration between COMDOR and the Alumni Fund to communicate MIT's need for private philanthropic support. Two publications, Graduate Fellowships and Magnetic Destinations, were reformatted for the Alumni Fund audience and work began to combine the two existing web sites, http://web.mit.edu/campaign/ and http://web.mit.edu/giving/, into one comprehensive site to debut early in the next fiscal year.
Led by Shelley Brown, the Office of Development Research and Systems, (ODRS), provides research, information management, technology and training support to Resource Development and its volunteers. In this fourth year of the Campaign for MIT, ODRS continued to strengthen and expand its efforts in all these areas.
Research activities continued to focus on identifying new prospects and tracking new information about existing and potential donors. With an eye toward identifying wealthy young alumni and graduate alumni, ODRS contracted with two electronic screening services to surface potential prospects through publicly reported information on company wealth, stockholdings and career success. In partnership with the Alumni/ae Association, ODRS identified hundreds of new alumni prospects and improved qualitative information about alumni attitudes toward philanthropy through the Alumni Questionnaire. In addition to standard practices of ODRS to monitor corporate initial public offers, merger/acquisitions, and professional changes of MIT associated individuals, over 500 new prospects were identified for the campaign.
ODRS also provided the initial strategic assessment and research support for the newly established program in Donor Partnerships. The office surveyed peer institutions to understand best practices for identifying and cultivating non-alumni prospects, provided research support for newly identified non-alumni prospects, and created a database to track relationships and affiliations of potential donors.
The office continued to provide traditional research support for staff and volunteers, by providing background information on and monitoring the activities of existing prospects. Reflecting the increase in campaign activity for senior officers, staff, and volunteers, ODRS prepared close to 400 prospect profiles.
The information systems staff continued an aggressive agenda to improve the accessibility and effectiveness of ADONIS (the alumni/donor database) and Macintosh desktop and network support. With the help of the Information Systems Database Group, the staff migrated ADONIS to a new, faster server. The programming staff expanded the portfolio of gift and prospect reports and implemented electronic delivery mechanisms. The Desktop/Network support team completed ahead of schedule the departmental equipment renewal strategy and delivered several training programs on software and hardware, including PowerPoint, FileMaker, Eudora, Netscape, CorporateTime, and PalmVx.
Under the direction of John S. Wilson, the Office of Foundation Relations and School Development Services develops and strengthens relationships with the foundation community while providing development services to the Institute's five schools. Gifts from private foundations and charitable trusts for this fiscal year totaled $43.5 million and continued to provide significant support for the campaign as well as MIT's educational and research programs.
Major grants or pledges included support of OpenCourseWare; the MIT Center on Workplaces for Working Families; minority engineering fellowships; the Gender Equity Project; and Industry Studies for the Airline Industry.
The Office of School Development Services (OSDS) provided research support and project management for the fundraising efforts of the five schools, the Libraries, the Office of Academic Development, and various school-affiliated centers and labs. OSDS assisted in moving forward several of MIT's capital campaign priorities, including Health Sciences and Technology, The Arts, and the initiative for National and International Collaborations. OSDS again planned and hosted the FYI Series, which featured presentations by the Deans and various faculty members to educate the development staff on Institute and school-based programmatic initiatives.
Directed by Karl Koster, the Office of Corporate Relations (OCR), which includes the Industrial Liaison Program (ILP), creates and strengthens mutually beneficial relationships between MIT and corporations worldwide. This past year OCR upgraded numerous corporate relationships to leverage additional research and gift support, supported the efforts of the faculty for all major corporate and international partnerships, facilitated strategic linkages between individual faculty members, departments and schools and various industries. In FY2001 total corporate cash gifts to the Institute reached $53.1 million. Revenues from the Industrial Liaison Program totaled, $8.1 million reflecting an increase in the number of membership companies.
The OCR organization was realigned into three industry/technology groupings of field staff, each led by an Associate Director of OCR and an emphasis was placed on staff training and upgrading of communications and conference offerings.
OCR implemented a major corporate branding and visual system for the ILP with assistance from the outside firm of Hill, Holliday, Connors and Cosmopoulos, resulting in more than $8 million in ILP fee revenues and continued growth in the number of member companies, making this the program's most successful year since FY1991.
OCR's Faculty Liaison Plan was enhanced to provide better service to the faculty and senior administration.
More information about the Office of Corporate Relations and the Industrial Liaison Program can be found online at http://ilp.mit.edu/ilp/.