Fundraising 101

 

 

 

Jodie Glore ’69, Development Committee Chairman, made the following points:

 

  • Until I became chairman, I had no idea how complex and sophisticated fundraising at West Point was.  As a result, we have compiled this booklet on fundraising, including a PowerPoint CD.  We expect all Class and Society leaders to understand how the AOG Development function works, be an advocate for the process and why we do it, and be a donor of record.

 

  • In 1985 we raised $2 million; in 1995 we raised $12.5 million; and by 2000 we raised $25 million plus.  Between the AOG and USMA endowments, we have about $96 million.  Dartmouth, however, has $2.2 billion, while Harvard boasts $25 billion.  We need to raise $50 million per year for a decade or more. 

 

  • And why do we fundraise?  To supply our country with the best young men and women to lead our Army.  We also want to pay for all fundraising costs and do better in supporting our graduates.  We are all passionate about West Point.  Well, fundraising turns passion into results.  And we need $500 million in ten years.  The more you know of the process, the better advocate you will be for West Point.

 

Mike Mahan ’70, Vice President for Development, followed Glore and covered the following topics.  (See slides.)

 

  • Why AOG raises money .  USMA is restricted from soliciting funds and limited in how they may invest gift funds.  On the AOG side, we are not dues-based, and we receive no funding from USMA.

 

  • How Development Works .  We appeal to the most donors in the most efficient way to realize the greatest amount over the long term.

 

  • Where Money Goes .  Money specified for a given purpose may only be spent for that purpose.

 

  • Who Gave? . About 75% of money raised over the past eight years came from graduates.

 

  • History of Development .  We began fundraising in 1973 and first achieved $5 million annually in the late eighties.

 

  • Development Office .  We currently have 27 staff; during the peak of the Bicentennial campaign we had 37.5 equivalents.

 

  • Annual Giving .  Ideally, 2-3% of disposable income donated annually to meet key needs.  We realize about $5 million annually, but about half of our donors restrict their annual gift to class gift accounts.  About 34% of our graduates donate annually.

 

  • Class Giving  is considered reunion giving by civilian universities and is unrestricted.  Traditionally, we allow classes to select a gift, although two classes have elected to make a large, unrestricted gift.

 

  • Major Giving  solicits donors capable of extraordinary gifts.  About 90% of the gifts come from 10% of our donors.  These gifts are usually restricted and must be at least $25, 000.  Major Giving has the largest staff but brings in twice the donations of all other gift categories.

 

  • Overall, 34% of our graduates donate in one of the gift categories annually.

 

  • Phonathons: We receive twice the donations from a joint mail and telephone campaign as we do from a mail campaign alone.  Unlike at civilian universities, cadets, being federal employees, are prohibited for participating in phonathons or any other type of solicitation of funds.

 

  • Planned Giving  is the most cost effective but most legally constrained gift category.

 

  • Corporate and Foundation Giving .  Nationally, only 9% of gifts come from corporate sources and are the most costly to solicit.

 

  • Development Process Responsibilities .  USMA and the AOG each determine their own needs, but only the AOG can solicit donations.  All gifts must be proffered to the Academy, and gifts over $500,000 must be submitted to DA for approval, a process that can take three months or more.

 

  • Funding the Association .  The AOG budget (less Development) is $5 million, and the Development budget alone is $3.7 million.  The AOG realizes only $1.1 million annually from the Long Gray Line Endowment while the fledgling Fundraising Endowment only provides a meager $30,000 at this time.