Fundraising

The tenth of Richardson and Basinger’s laws of fundraising was:

Law #10: The Law of Uncertainty. People will do whatever they please. To paraphrase an old expression, “You can lead a horse to water, but you can’t make it drink or give.” Likewise, “don’t count your chickens before they hatch.”

This post will consider how this fits into the process of student recruitment, retention, and alumni development.

Recruitment: For many years the student recruitment industry used the concept of an admissions funnel to describe the process of recruiting, admitting, and enrolling students. At this time, some admissions experts are saying that the new electronic communication age has made the concept of a funnel obsolete. I will agree that some aspects of how institutions worked the funnel previously are no longer applicable. However, I believe that in talking about the numbers of people interested and in contact with your institution at any one time, the funnel is statistically still a viable concept.

In the old model, the institution would pour a very large number of prospects into the wide mouth of the funnel by advertising or buying names from direct mail sources. That number dropped off dramatically as the prospects either lost interest in your institution or found institutions that were more appealing. You worked your prospects until you had your list of inquiries. At this point, you worked your inquiries to attempt to get them to take the next step of commitment and apply. They were now applicants.

At this point the institution stepped in to whittle this number down further by taking the step of accepting students for admissions. The institution was saying to the student, we want you. Different institutions had different strategies in accepting students. Some institutions are more selective in their choice of students, while others took a more “open door” approach.

With an offer of admission, the process was now back in the lap of the prospective student to decide whether or not he or she would accept the offer of admission and pay a deposit to confirm that decision. However, even with the payment of a deposit, the job of recruitment wasn’t necessarily complete. Not every deposited student would enroll.

With the advent of internet and television, some admissions experts suggest that institutions no longer have to necessarily go out as aggressively and identify the names and addresses of prospects.  Institutions can let the prospects shop anonymously until the prospects make the first move. At this point the institution can aggressively pursue them.

Although the landscape of higher education is changing, I believe that this new process is most effective for institutions with good reputations already established. If your institution is not well-known, you may still have to do some things the old-fashion way. You have to earn the trust of prospective students. You may also have to find ways to make your institutional mark with the general public. Surveys of enrolled students indicate that an overwhelming majority of students had their first introduction to the name of their college before they began junior high. I’ll leave that topic for another post.

Earlier I alluded to the statistical basis behind the admissions funnel. In institutions with which I have worked, it was not unusual for the number of inquiries to be less than 2% of the number of prospects. At these institutions, an average of 10% of the inquiry pool actually completed applications. Of the completed applicantions, on average the institutions accepted 70%. Of the accepted students, these institutions had 65% confirmed acceptance with a deposit. From the deposited students, on average of 85% enrolled. Thus to enroll a new class of 500 students, these institutions had to start with a prospect pool of more than 250,000. From this prospect pool, the institutions had to generate almost 13,000 inquiries. From the inquiry pool, they had to generate almost 1,300 applications, from which they admitted approximately 900. Of this admitted pool, approximately 600 paid a deposited. From this confirmed pool, finally a new class of 500 enrolled students emerged.

Retention: Once a student enrolls, in other posts we have emphasized that the job is not done. An institution must work to keep the students involved and interested. The national average of matriculates graduating is less than 50%. At the institutions at which I worked, I liked to track year-to-year retention.

As an example at one institution, when I arrived the graduation rate was less than 20% and the first-to-second year retention rate was less than 50%. Think of the strain this puts on an institution, if it must replace half of its students every year. With a first-year program in place, the first-to-second year retention rate went up to 85%. With the addition of a second-year program, and then a senior-year program, the year to year retention rates also increase dramatically. The second-to third year retention rate went from 65% to 80%. The third-to-fourth year retention went up to 90% and the percent of seniors that graduated kicked up to over 95%. This produced a matriculate graduation rate of almost 60%, much better than the national average. However, it still meant that 40% of entering students did not graduate. No matter what you do, people will do what they please or what they have to do.

Alumni: If you have done a good job in tying individuals into your institution while they are students, the job of keeping them interested and involved as alumni is much easier. In a major assessment project, I worked with more than 50 institutions in surveying their alumni two years after they graduated. Although there was a great variation in individual statistics, from all 50 institutions we had valid contact information for less than 50% of all graduates. You can’t hope to keep people involved in your institution, if you don’t have contact information.

This says to me that there are several major difficulties. The first is that the institutions didn’t sufficiently meet the needs of these graduates when they were students. Otherwise, I would have thought the graduates would have made an effort to remain in contact with the institution. If the graduates did try to make contact, then the institution either didn’t respond or keep track of contact information. This means the institution has many more problems to fix.

Without a spark of interest on the part of the alumni or proper contact information, there is no hope of developing further alumni invovlement. Even with alumni interest and proper contact information, it is possible that the alumni will refuse the institution’s advances. People will do what they please.

The eighth of Richardson and Basinger’s laws of fundraising was:

Law# 8: Loyal donors are developed, not born.  Just because someone gives a single gift does not cement a bond between that individual and your organization. The development of a donor is a long, and arduous process. It involves the evolution of commitment, which comes from a change in the heart and mind of the giver.

This post will consider how this fits into the processes of student recruitment, retention, and alumni development. In terms of alumni development, the law should be restated, Loyal alumni are developed, not born.  The law reminds me of the involvement process metaphor of acquaintance, dating, going steady, engagement and marriage. So I will frame my comments around this metaphor.

Recruitment:  Just because a prospective student makes an inquiry to your institution does not necessarily signify an ongoing commitment, or even anything more than a passing fancy or interest. The term prospect alludes to the fact that this individual is looking for something of personal value, and hoping  to find it at your institution. With the ease of completing reply cards in magazines or displays at college fairs, or hitting the “Request for More Information” button on websites, prospects have likely inquired at tens, if not a hundred different institutions. Once you receive that initial inquiry, it is the institution’s job to help the prospect discover what he or she is seeking.

This can be a very complicated task, since each prospect is an individual, and most likely will have to be treated as an individual. The institution must provide the individualized responses that the prospect desires. This takes concentrated effort, along with accurate and comprehensive record keeping of contacts with the prospect. The typical prospective student doesn’t apply on his or her first contact with an institution, even though there is a rise in the number of stealth shoppers. These are students whose first official contact is an application. The stealth shopper has been researching the school via the internet, contact with current students and alumni, and even with unscheduled campus visits. It normally takes at least four significant contacts to move a student to apply.

This process for both the prospective student and the institution is like the “getting acquainted” phase of a relationship. The two parties are aware of each other and attempt to find out things about each other before one of the parties is ready to take the step of asking the other party out on a date, which is akin to a prospect applying to an institution. The first date occurs when the institution accepts the applicant. This temporary commitment permits the two parties to more fully explore their mutual compatibility.

Retention: When a prospective student accepts an offer of admission, this is similar to the “dating” stage of a relationship. Paying a deposit may come closest to the engagement  stage of relationships. It is more of a commitment than dating, or even going steady. However, it doesn’t guarantee permanency. Marriage and enrollment do not really guarantee a permanent commitment. With the number of divorces approaching 50% of the number of marriages, and with less than 50% of all matriculated students graduating from college, a permanent relationship may be hard to find. Research shows that the student that transfers once is more likely to transfer again. It takes work on the part of both parties in a relationship to maintain it.

An institution must not only provide services to students, it must make those services attractive to the students. A student must study to maintain academic eligibility. A student must also commit a great deal of effort, finances, and time to the relationship. Neither party can afford to take the other party for granted.

Alumni: As noted before, successful and committed alumni are developed, not born. The development of alumni begins while individuals are still prospective students. The institution should strive to help prospective students see themselves as successful alumni. Every year, organizations like Noel/Levitz and Academic Impressions run programs on the Development of Alumni Relations that emphasize beginning the development process before the student enrolls in the institution.

The prospective students should be encouraged to visualize what they want out of their education. Currently enrolled students should be educated as to what alumni can do for an institution and future students. If students can see the benefit directly from the giving or work of alumni, they will be more willing to give or work when they transition into alumni status. When students do become alumni, the connection phase of transforming them into donors should have already begun.. Engaging alumni with prospective and current students also helps cement the commitment of those alumni to the institution.

The idea of leaving a legacy for future generations has a strong appeal to many people. It is an idea that institutions should be encouraging through all phases of the development of successful and committed alumni.

The fifth of Richardson and Basinger’s laws of fundraising was:

Law #5 Someone must close the deal. It is not enough to let our good work speak for itself. Someone must make the sale and ask for a commitment and the money.

This post will consider how this fits into the processes of student recruitment, retention, and alumni development.

Recruitment: Prospective students are asked to make at least five commitments to your institution. These commitment points generate what is known as the admissions funnel.

The admissions funnel begins with a large pool of students that are typically labeled prospects. These include any student that could benefit from the education offered by your institution. Generally the institution knows very little about these students beyond their name and address. The institution might also know admission test scores if the names have been bought from ETS, ACT, or a prospective marketing firm. The first commitment that these individuals are asked to make is give the institution an indication of interest and request additional information. At this point, these individuals are usually labeled inquiries.

The next step of the commitment process is having the inquiries complete an application. For all institutions, this will also involve a time commitment on the part of the prospective student because college applications may be lengthy and involved. For those institutions that charge an application fee this will also involve a monetary commitment.

At this point of the process, the institution makes a commitment to some of the applicants by accepting them and offering them admission. Accepted students are then asked to make another commitment by accepting the offer of admission and submitting a deposit to secure a place in the entering class. Finally, deposited students are asked to make the commitment of enrolling.

Each institution will establish a track record in terms of converting individuals from one stage in the commitment process to the next. In the absence of damaging news, very positive events on  campus, or significant changes in how an institution works with or communicates with these individuals,  the conversion rates are fairly consistent from year to year. Judicious use of these conversion rates will permit institutions to manage their enrollments from year to year.

Retention: Each successive semester involves a re-commitment on the part of continuing students to the institution and their specific programs. These reaffirmations do not just happen. The institution must take an active interest in students to insure their continual commitment to the institution. Academic advisers, resident counselors, faculty, and retention officers must be reaching out to students, encouraging students to maintain their commitment to their education and to the institution.

We know there are numerous reasons why students will attrit and not continue. The number one stated reason is finances. If an institution will scratch the surface and dig deeper into the thinking processes of those students who leave, it will find a myriad of reasons for attrition. These include dissatisfaction with a student’s academic performance or the academic life on campus, dissatisfaction with the social life on campus, time, family and health pressures, and a general “grass is greener on the other side of the fence” syndrome.

Alumni: Alumni have already made many commitments to the institution. If their experiences have been positive, they will completely understand the need for continual commitment. However, that commitment will not just happen. The institution must reach out to the alumni. In doing so, it must use its full arsenal of weapons to encourage continual commitment on the part of alumni. This arsenal will include faculty, career officers, student life professionals, alumni officers, and the advancement office.

The fourth of Richardson and Basinger’s laws of fundraising was:

Law #4: People only give to people. People do not typically give to causes. They may think about giving to grand ideas, impressive buildings or heroic organizations. However, in the end, people give to people who are changing lives, making a difference, and changing the world.

This post will consider how this fits into the processes of student recruitment, retention, and alumni development.

Recruitment: Parents of prospective students want the best education possible for their children.  Prospective students and their parents will devour electronic and printed materials about colleges and universities, looking for the perfect institution. Thus, colleges must make sure their materials are high quality and easily available. The college must make sure that the materials accurately and completely portray the institution. Students want to be able to picture themselves as part of the campus life. Therefore, the pictures and descriptions must be real. Prospective students can easily see past “smoke and mirrors.”

However, no matter how good an institution’s material is, prospective students will really only use the recruiting material to eliminate some options. They will not make their final choice based solely on electronic or printed material. The second point of elimination is a campus visit. Institutions must make campus visits show the reality of campus life. Prospective students and their parents can tell a “snow job” when they see it, and will run in another direction.

After gaining a prospective student’s interest, it is up to real people to complete the sale. Prospective students only respond to real people. They need a name, a face and a voice that they can identify as their contact with the campus.

Retention:  Once a student enrolls, the job is still not done. Continuing students need to know that they are “at home.” They want to be part of a family. They want to be surrounded by people that know their name, know their story, and with whom they have developed a rapport. Continuing students want to be able to talk with someone who cares for them and will service their needs. Automated systems may provide convenience and be helpful in certain campus situations. However, convenience only goes so far. A personal touch is an absolute necessity and will be greatly appreciated.

Alumni:  We have repeatedly made the point that people relate to people. To keep alumni engaged and active, it is necessary that they can relate to specific individuals. It is ideal, if these contacts were also part of the support team for the alumni when the alumni were students. These contacts can be former classmates, faculty, advisers, coaches, resident counselors, professional office staff, or various non-professional staff, including dining service, housekeeping or maintenance personnel. This means that every one at an institution is not only responsible for an assigned job. They are also part of and working for the admissions, retention and alumni offices.

The third of Richardson and Basinger’s laws of fundraising was:

Law #3: Effective fundraising is a result from telling your story. Positive results only come from telling your story. However, telling your story once is not enough. You must retell it many times, in many different ways. In addition, the story you tell must be the real story, not a pie in the sky fairy tale, that has no basis in reality.

This post will consider how this fits into the processes of student recruitment, retention, and alumni development.

Recruitment: Effective recruitment is the result of effectively telling your story. You must convince prospective students that they will fit into the campus environment. The prospective students must see themselves as an integral part of the campus. Many prospective students want to see other individuals on campus that look like and act them. The institution must show students similar students, or be prepared to convince students that they can still fit into the campus setting. To do this, you must tell your campus story both in pictures and words.

In today’s world, static pictures may not be enough. You may need “moving pictures.”  To reach today’s active, visual students, you may need to resort to active, video modes of story telling. However, in any video, the base story line is still of great importance. You must have a good, realistic story to tell. You can’t be successful in recruiting enough students by using smoke and mirrors. However, just a great story is not enough. You must tell it well by using an excellent video.

If prospective students do not feel comfortable before they apply, it is highly unlikely that they will complete the application process. However, the application is not the end of the process. It is only a milepost along the path. The institution must continue to convince the student that this institution is the college for them. The institution must listen to the new questions, and answer them promptly, properly, and effectively.

Retention: Effective retention is the result of effectively retelling, and telling your story anew. The institution must remind the student what it has done for the student in the past. It must keep the good experiences front and center in the minds of students. But, it must also point to the future, and let the students know what’s coming next. Students are people. Most people are more comfortable with the familiar. The only surprises that are welcomed are good surprises.

One other point needs to be emphasized here. If you stretched the truth in your story telling to prospective students, it will come back to bite you here. If students believe that you “lied” to them once, it is much more difficult to regain their trust. In addition, if students leave your institution with a bad taste in their mouths, they will tell that story to others. Overriding that type of publicity is extremely difficult, and sometimes impossible.

Alumni Development: Just because alumni were part of the institutional at one time and knew part of the institutional story, the institution can’t assume that they know everything about the institution. No one person can know the whole story. In addition, if an institution is alive, it is always changing. The story is new each day and each year. the institution must keep telling its evolving story.

Alumni are people. People like to be proud of their accomplishments and the accomplishments of their group. Institutions need to keep alumni informed of the good things that have happened at their Alma Mater. Pump up the alumni and they will help the institution tell its story.