For NCAA Division III athletic programs, the key to effective fund-raising is successful friend-raising.
By Dr. Paul Plinske
Paul Plinske, Ph.D., is Associate Athletics Director and Graduate Program Director in Sport Administration at the University of Wisconsin-La Crosse.
Athletic Management, 12.6, Oct/Nov 2000, http://www.momentummedia.com/articles/am/am1206/funds.htm
No doubt about it, fund-raising has become part
of the lexicon of intercollegiate and interscholastic athletic programs. At the
top levels, NCAA Division I programs are becoming more and more savvy at
attracting large donations, while high schools are mastering the small,
traditional fund-raising event.
Where, then, does the small college fit in? With costs rising in all areas of
athletics, NCAA Division III athletic programs often need the money as much as
their Division I counterparts. Yet, D-III athletic directors frequently
encounter senior-level resistance to the idea—or simply do not have the time to
look into fund-raising initiatives. At the same time, a number of small
colleges have found success at the fund-raising game, bringing in significant
dollars every year.
So, what is the right direction for small college fund-raising efforts? To
begin to answer this question, I started by doing a large survey on the topic.
Research Findings
In 1998, vice presidents of development at 387 NCAA Division III member
institutions were sent my “Athletic Fund-Raising Survey.” The self-administered
questionnaire requested responses based on the school’s involvement in athletic
fund-raising or development. A response rating of 66 percent (254 institutions)
was achieved.
The survey’s aim was to answer two major questions. What are the trends in
small college athletic fund-raising, and what initiatives and directions appear
to be most successful for these institutions?
Forty percent of respondents indicated that their institution had engaged in
some type of formalized athletic development. Private institutions, which make
up nearly 82 percent of the small colleges in America, exhibited the most
extensive programs in athletic fund-raising. As a result, these schools also
raised more money than their public-school counterparts.
Survey results showed that Division III programs raised an average of $142,812
during the 1997-98 school year, with a median of $50,000. Private schools
brought in an average of $160,759, while public schools raised $75,508 per
program. Interestingly enough, several schools reported that they eclipsed the
$1 million mark. Although this amount is still rare in Division III athletics,
it illustrates the earning potential of small school programs.
For the largest percentage of schools, the most frequent donors were alumni,
followed by parents, boosters, and corporations. This fact is very telling, as
research conducted on larger institutions shows that much of Division I and II
fund-raising comes from booster and corporate dollars as opposed to alum and
parents of student-athletes.
When professionals in Division III were asked to give the goals of their
fund-raising programs, most stated that they hoped to provide budget relief,
build long-term relationships, and increase the donor base of their athletic
department. The goal of actually “raising” money was fourth overall. This is an
important distinction between D-III and larger schools.
Motivations & Benefits
According to experts in this field, the best way to understand how to raise
funds is to understand what motivates those who give, and then provide benefits
that match the motivations. In the “Athletic Fund-Raising Survey,” responses
indicated that small colleges thank donors for their contributions most
frequently with gifts such as newsletters, social invitations, and
complimentary tickets. Membership cards, game-program recognition, free
apparel, and advertising were also used, but less often.
While 72 percent of institutions indicated that newsletters are used as a
“benefit,” this token should be seen as much more than a simple thank-you item.
Recent research has shown that small college constituents seem to be most
interested in giving because they believe in and support the ideology and
philosophy of Division III intercollegiate athletics. Therefore, a newsletter
that keeps the donor up-to-date on the athletic department—and is careful to
include those items that promote the Division III philosophy—may prove more
valuable to a donor than season tickets at the 50-yard line.
The survey also found that special events were frequently used to reward donors
for their financial gifts. Several institutions had conducted golf tournaments,
banquets, and homecoming events, and used hospitality tents at athletic
functions in order to thank donors. More than simply a gesture of appreciation,
these events brought alumni and others together. Like newsletters, socializing
with fellow contributors interested in the athletic program is a great way to
strengthen donor ties to the program. It makes them feel confident about and
proud of the Division III ideology, and thus they feel good about giving funds
to the athletic department.
Barriers
With 60 percent of those surveyed stating they do no formal athletic
fund-raising, it’s also important to examine the barriers to this practice. The
most common factors identified were competition from within for donations and
apprehension or resistance to change on behalf of school administration.
Competition from within is a barrier that schools at all levels deal with.
Research in Division I and II programs has shown that, in order for an athletic
department to have successful fund-raising outcomes, the institution must have
interdependent units striving for a common cause and purpose. In other words,
success in development comes most effectively from internal groups coordinating
with one another in order to attain their goals and objectives.
A second obstacle is the close-mindedness or unwillingness of top officials to
change the way things have traditionally been done. Because the athletic
department has not raised funds in the past, these administrators are not open
to the idea. To overcome this hurdle, it’s sometimes necessary to re-define
fund-raising for these people.
Many successful small colleges characterize fund-raising not only in terms of
dollars and cents, but as a means to enhance the entire college community. They
look at development as more than asking for money. Instead, it entails
marketing and promoting the entire school and offering interested constituents
a part of what their institution stands for. In essence, fund-raisers could
more aptly be termed “friend-raisers.” In many cases, this redefining of
development can convince top officials to open their minds to fund-raising, and
a difficult barrier can be broken.
Sample Programs
If the results of fund-raising in Division III athletics can run the gamut from
zero to one million dollars, how does an athletic department get closer to that
one million mark? A look at five survey participants offers insight into what
it takes to be successful.
Within these five schools, the range of annual donations was $75,000 to $1.5
million. Average enrollment was 2,800 undergraduates with the smallest having
1,650 and the largest having 5,535. Three of the schools were private, while
two were public. All of the institutions were co-educational, with the
exception of one, which was an all-male university.
Overall, these five programs were moderate in terms of the success their teams
experienced. According to past Sears Cup Standings, these programs ranked from
as low as 190th place to as high as fourth place. In relation to the amount of
money they raised, however, success on the field had no correlation with the
ability of the program to generate more revenue. In other words, for small
colleges, it appears that having nationally ranked teams doesn’t necessarily
translate into more dollars raised.
In their responses, each of these five fund-raising programs indicated trends
similar to the majority findings. The purpose of fund-raising was to provide
budget relief, increase the donor base, and build long-term relationships.
These goals were achieved through providing complimentary tickets, invitations,
newsletters, and apparel. All conducted homecoming events and banquets for
donors. Several had donor tailgating events at home football games and
extensive donor golf outings and tournaments. Each program also emphasized the
importance of alumni and parental support.
One new finding in these programs was the respondents’ thoughts that hiring a
full-time athletic fund-raising officer was central to each school’s ability to
meet with potential donors and develop strong relationships. This hiring, they
said, was the best thing they could have done and had had a significant impact
on their ability to accomplish goals and establish strong donor-program
relationships.
Each of these programs also possessed a strong institutional and athletic
program mission. Research has shown that much of what draws a donor to a
program are areas that athletic directors and coaches can control—such as
integrity, emphasis on academic achievement, recruiting community-minded
athletes, and so forth. The key, therefore, is having effective program leaders
who can embark on a vision quest and articulate it to those within and outside
of the institution.
The Web
Two of the sample five programs used Web sites to promote their fund-raising
efforts. One program established an extensive fund-raising page on its athletic
department’s Web site. This site describes, in detail, the goal of the program
and the benefits that come with joining a specific giving level. The Web site
even has an on-line donation form capable of processing credit card
contributions. It’s also important to note that on the Web page, it’s made
clear that this athletic fund-raising group works in cooperation with the
university’s foundation and top administration, which aids in preventing
competition from within.
Another program’s Web page uses e-commerce, allowing alumni, parents, and other
donors to purchase team apparel and accessories. Retail companies are now
creating opportunities for small colleges to sell such upscale equipment as
head covers and golf bags displaying the athletic department’s logo, enabling
patrons to express their school pride and support their favorite institution.
Obviously, the manufacturer provides a portion of the proceeds to the
institution, but there’s the opportunity for a donor to show additional support
and receive something tangible in return.
While the opportunities for fund-raising and development are growing nicely via
the Internet, research does show that the greatest rewards are still gained
through an institution’s ability to cultivate and nurture strong relationships
with key contributors. The institution that raised nearly $1.5 million dollars
indicated that face-to-face interaction and personal solicitation with donors
was the key to its campaign.
As small colleges struggle with the rigors of increased inflation at a rate
greater than budget increases, they need look no further than fund-raising to
help solve budgetary problems. By instituting a strong program in development,
schools will find not only that their funds will increase, but so will the
friends of their program.
Challenge #1: Soliciting Alumni & Parents
Solution: Understand Donor Motivation
NCAA Division III donors are typically alumni and parents of student-athletes,
as opposed to boosters and corporations. Their motivations for giving are more
about commitment and loyalty than getting box seats or free advertising space.
So, how do you approach and reward such donors? Try these seven ideas:
1. First, raise friends. Meeting one-on-one with individual contributors and
developing friends of the program is first and foremost. All too often gifts
are solicited without taking the time to get to know that individual and, more
importantly, without allowing the individual to get to know the program. Once a
solid relationship is established, asking for gifts becomes easier and more
comfortable for both parties.
2. Give chances to create new opportunities, facilities, and equipment. The
opportunity to contribute to creating something new or making changes at an
institution is a huge motivator. Encourage a donor to give in order to have a
new scoreboard or sound system at athletic events.
3. Connect with the donor. Those programs that have fund-raisers capable of
establishing strong interpersonal relationships have a great deal of success.
Search for common ground where relations can occur. Division III donors want to
connect with the institution, so give them ways to do so.
4. Provide opportunities to collaborate with the program. Invite individuals to
be part of a fund-raising planning committee or board. This could serve as a
strong motivation to a parent, alum, or supporter.
5. Allow individuals to show their loyalty. Give them the chance to be involved
with the programs of their choice. Expose donors to coaches and players.
6. Show the individual donor how his or her gift will be used. Allow donors to
earmark or designate where their money goes and then follow up with notes,
newsletters, and phone calls describing how the money has been beneficial.
7. Recognize publicly. While some individuals may not be motivated by public
recognition, others are. Public recognition is formal acknowledgment or
appreciation that a donor receives in the presence of others. A school can
provide recognition in media guides or through public address announcements at
athletic events.
Challenge #2: Staying within the D-III Philosophy
Solution: Focus on Developing the Program
Since Division III athletics places the highest priority on the overall quality
of the educational experience, athletic fund-raisers at this level must view
their job responsibilities differently than those in Division I. Promoting
nationally recognized teams and giving donors access to major sporting events
is not possible, or a part of the philosophy. This, of course, can make raising
funds more difficult.
What’s an athletic fund-raiser to do? He or she must start by defining the
primary objective differently. The goal is not to raise funds, but to develop
the program, provide vision and leadership, and create friends of the program.
Most importantly, fund-raisers must establish interpersonal relationships with
key constituents. Wining and dining isn’t necessary here. However, showing an
interest and articulating the institution’s vision are.
And how can the athletic director help?
1. Hire the right person for the job of fund-raising officer. Research shows
that the difference between successful and failed athletic fund-raisers may be
closely tied to how well the individual personality matches the athletic
program’s culture and philosophy. It has been reported that successful
fund-raisers exhibit a great deal of passion for the institution or have a
spirit of philanthropy and a firm belief in the advancement of athletics.
2. Develop a sound mission for the athletic program. Clearly and effectively
articulated visions will lead a program and its internal and external
constituents to a new level. Alumni and parents will flock to a program that
has purpose and meaning.
3. Emphasize the relationships that are established. Oftentimes, a fund-raiser
is measured more by the amount of money raised than by the relationships
established. Put the pressure on the fund-raiser to establish strong
relationships first. The money will come later.
Challenge #3: Competing with University Development
Solution: Communication & Interaction
Competition from within for donations is and will continue to be a major
concern for all in higher education. The key is for athletic fund-raising to be
viewed as a part of the larger university system and fall in the realm of
institutional fund-raising. Development officers must allow programs to
function in a manner that is both collective and cohesive while maintaining the
balance of power, control, and autonomy of those involved.
For most institutions, the keys are good communication and teamwork. Here are
other strategies:
1. In an attempt to decrease the likelihood of miscommunication and dissension
occurring, some schools are now placing their athletic fund-raising program in
the development office. It is believed that proximity can increase
coordination.
2. Another strategy has been the defining of roles and interrelationships among
programs, environments, and other sub-systems. This also entails putting
policies and procedures in place that specifically explain where boundary lines
are and when communication must occur. For example, some institutions have
weekly administrative meetings to go over accounts. Others have lists of
“hands-off” donors that only one group can access.
3. The final strategy commonly instituted is the management and negotiation of
resources. Those programs capable of exchanging benefits (or donor gifts) that
enhance the livelihood of the entire development process are more effective and
successful. These schools have structures in place to allow donors to earmark
their gifts for a group of their choice within the university.
Challenge #4: Setting up a Program
Solution: Use Volunteers & Have Yearly Events
While the majority of Division III fund-raising efforts should be focused on
solicitations of individual donors, a program may also want to consider
implementing some annual fund-raising events. At the University of Wisconsin-La
Crosse, we have used two major initiatives to get this part of our fund-raising
program in top shape.
The first initiative is the establishment of “UW-L Sports Spirit.” The primary
function of this group is to provide financial assistance to the athletic
program in order to maintain its outstanding broad-based reputation. Other
goals are to provide greater awareness of the athletic program to the community
and involve local and regional businesses through direct and indirect support.
The group is governed by an Executive Committee and Board that meet monthly to
discuss means of generating outside dollars through specific activities and
events. The athletic director, several community business leaders, university
staff, and student-athletes sit on the board. Dollars generated by this group
are used for coaches’ professional development and recruiting, national
championship awards, team-training trips, honors and special student/staff
receptions, equipment requests, and the Athletic Endowment.
The second initiative is the creation of a number of fund-raising events
conducted throughout the year. Annual events allow donors to anticipate and
enjoy the tradition of each fund-raiser. Here’s our list:
Fall Campaign: For a two-week period in September, a local grocery store chain
(owned by the UW-L Sports Spirit Program Executive Director) conducts a
campaign geared to raise dollars for our program. During this period, profit
that is generated through this store and other local vendors is given directly
to the athletic program. Extensive advertisement and promotion is conducted by
these vendors to get consumers in the door on behalf of our athletic program.
Health & Fitness Expo: During January, we host an Expo geared to promote
healthy lifestyles. At the conclusion of a 5K fun run, doors to our athletic
facilities are open to the public so they can hear from local health vendors
and professionals. During the lunch hour, local restaurants serve sample-size
portions of healthy food products to those in attendance. Vendors and
restaurants are required to pay a fee in order to have booths at the expo, and
we also charge a nominal admission fee. The event is financially productive and
is a great means for providing community service.
Final Four Basketball Party: During the NCAA Final Four Basketball championship
game in April, we host a party where silent auctions and games are conducted.
By charging $100 per ticket, individuals are entered into a raffle for a $3,000
grand prize. While no gambling or betting takes place on the game, this event
serves as a revenue generator and provides great social interaction for
community members.
Golf Outing: This function is held in May in an effort to thank those who have
contributed to our program. Although those who play are required to pay a fee,
we provide advertisement for corporations and extensive thank-yous throughout.
Student-Athlete Fund-Raising Activity: Once a year, our student-athletes will
sell items (sweatshirts, fleece jackets, hats, stadium blankets, etc.) selected
by the captains of each of our athletic teams. Each student-athlete is given a
specific number of items in exchange for the cost of those items. Individuals
are then given two weeks to sell their goods at the predetermined cost. With
over 650 student-athletes being required to sell a specified amount, the profit
is substantial. This money is then used to supplement the cost of
student-athlete meals while traveling on the road.
Phon-a-thons: Having student-athletes and staff contact alumni and parents is a
great way for a program to associate itself with donors. During a one to
two-week period, student-athletes and staff call potential donors and solicit
gifts that can be used to enhance the experience of the athletes. While this is
a common practice in many small colleges and universities, work must be done to
train callers in professionalism and how to deal with specific issues that may
arise.
Parents’ Night Out: On Friday nights during the school year, we open one of our
athletic facilities and student-athletes act as “baby-sitters” for parents in
need of a “night out.” This is an excellent way for student-athletes to
interact with community children and raise money. By charging $10 per child and
opening the concession stands, there’s no telling how much revenue can be
generated.
Table One: Survey Results
The following are results from a 1998 survey sent to NCAA Division III
institutions about their athletic fund-raising programs
Status of the Schools
Private Schools 82%
Public Schools 18%
Amount of Dollars Raised
Mean Amount $142,812
Median $50,000
Minimum Amount $1,500
Maximum Amount $3,600,000
Donor Demographics
Alumni 97%
Parents 60%
Boosters 40%
Corporations 29%
Benefits Offered to Donors
Newsletters 72%
Invitation to Social Events 62%
Complimentary Tickets to Athletic Events 60%
Membership Cards 44%
Recognition in Game Programs 40%
Apparel 33%
Advertising 26%
Types of Special Events Conducted
Golf Tournaments 84%
Alumni and Sports Banquets 69%
Homecoming Events 60%
Phon-a-thons 40%
Dinners or Receptions 40%
Raffles 31%