This document discusses fundraising trends in higher education based on an index of 111 public and private institutions. Some key findings from 2011 include: overall revenue declined 2.1% while donor numbers also dropped 2.1%; acquisition of new donors declined more sharply at 3.5%; and retention rates remained relatively stable but below pre-recession levels. Benchmarking is presented as a way for institutions to identify strengths/weaknesses and improve fundraising performance.

1. FY2011 donorCENTRICS™ INDEX OF
HIGHER EDUCATION
FUNDRAISING PERFORMANCE
AND OTHER NONPROFIT TRENDS
July 2012
John Mastrobattista
7/26/2012 Footer 1

2. NONPROFIT GIVING TRENDS
OUTSIDE OF HIGHER EDUCATION
7/26/2012 Footer 2

3. Go to:
G t
Giving USA 2012
The Annual Report on Philanthropy for the Year 2011
download the free Executive Summary at:
y
Giving-USA-The-Annual-Report-on-Philanthropy-for-the-Year-2011-Executive-Summary
7/26/2012 Blackbaud Confidential 3

4. donorCentrics™ INDEX OF
NATIONAL
FUNDRAISING PERFORMANCE
Results through Q4 2011
7/26/2012 Footer 4

5. Q
Q4 2011
Five-Year Overall Index Revenue and Donor Trends
Cumulative Rolling 12-Month Median Change from Q4 2006
8%
6%
Start of Haiti
4% Recession Earthquake Index
Revenue
2% 1.9%
0%
-2%
-4%
-5.3%
-6% Index
End of Donors
Recession
-8%
Q4 2006
Q1 2007
Q2 2007
Q3 2007
Q4 2007
Q1 2008
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
7/26/2012 donorCentrics™ Performance Benchmarking 5

6. Q
Q4 2011
Five-Year Overall Index New Donor Trends
Cumulative Rolling 12-Month Median Change from Q4 2006
2%
0%
-2% Haiti
Earthquake All
-4% Donors
Start of
Recession -5.3%
-6%
-8%
-10%
End of
Recession New Donors
-12%
-14.4%
-14%
16%
-16%
-18%
Q4 2006
Q1 2007
Q2 2007
Q3 2007
Q4 2007
Q1 2008
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
7/26/2012 donorCentrics™ Performance Benchmarking 6

7. Q
Q4 2011
Overall Index Medians
Year-over-Year Change
g
1.0%
Revenue
-2.1%
-2.0%
Donors
-2.1%
-2 1%
3.2%
Rev / Donor
1.6%
-3.1%
New Donors
-4.3%
0.0%
Overall Retention
-0.6%
-2.0%
1st-Year Retention
-2.5%
-0.3%
%
Multi-Year Retention
M lti Y R t ti
-1.3%
1.8%
Reactivation
-3.9%
2009 to 2010
2010 to 2011
7/26/2012 donorCentrics™ Performance Benchmarking 7

8. SOURCES OF GIVING
Fig. 12: Percent of Gifts by Channel Fig. 13: Average Gift by Channel
Overall 2011 Index Medians Overall 2011 Index Medians
Mail 81% Mail $38
Telemarketing 3% Telemarketing $39
Online 6% Online $63
All other channels combined made up 10% of gifts in 2011.
7/26/2012 donorCentrics™ Performance Benchmarking 8

9. SOURCES OF GIVING
Fig. 14: Online Gifts and Revenue
as a Percent of Total
Overall 2007-2011 Index Medians
Gifts 8.8%
Revenue
7.0%
6.4%
5.7%
5.4%
4.7%
4.1%
3.6%
3.2%
2.4%
2007 2008 2009 2010 2011
7/26/2012 donorCentrics™ Performance Benchmarking 9

10. RESULTS - Q4 2011 SUMMARY
Q
Increases in Revenue per Donor Still
Not Compensating for Donor Declines
• Overall index revenue declined again in 2011, a median drop of 2.1%
• 39% of the index organizations had year-over-year revenue increases in 2011
• Donor numbers dropped at the same rate as overall index revenue in 2011,
declining a median 2.1%
• 34% of the index organizations had year-over-year d
f th i d i ti h d donor increases 2011
i
• Arts & Culture and Religious organizations showed signs of recovery
• Human Services and Societal Benefit had the strongest performance in the Index
across key metrics including new donor acquisition.
• Environmental organizations performed at the index medians
• Animal Welfare, Health and International Relief all showed declines
7/26/2012 donorCentrics™ Performance Benchmarking 10

11. 2011 donorCentrics™ INDEX OF
HIGHER EDUCATION
FUNDRAISING PERFORMANCE
July June
July-June Fiscal Years 2009, 2010, 2011
7/26/2012 Footer 11

12. PARTICIPATING PUBLIC INSTITUTIONS
• Arizona State University • Oregon State University • University of Michigan
• Bowling Green State University • The Pennsylvania State University • University of New Orleans
• Carleton University • Queen's University • University of North Carolina
• Clemson University • Richard Ivey School of Business, - Chapel Hill
• College of Charleston Western University Canada
University, • University of North Carolina
• The College of William and Mary • Rutgers University Foundation - Greensboro
• Colorado School of Mines • Ryerson University • University of North Carolina
• Colorado State University • SAIT Polytechnic - Wilmington
• Dalhousie Universityy • St. Cloud State Universityy • University of Oklahoma
• Darden School of Business at UVA • University of Arizona • University of Oregon
• Indiana University Foundation • University of California, Berkeley • University of Saskatchewan
• Iowa State University Foundation - Haas School of Business • University of South Dakota
• James Madison University • UCLA Anderson School of • University of South Florida
• Kent State University Management • University of Texas at Austin
• McMaster University • University of California, Santa Barbara • University of Toronto
• Michigan State University • University of California, Santa Cruz • University of Virginia
• Morehead State University • University of Delaware • University of Waterloo
• North Carolina State University
N th C li St t U i it • University of Georgia • University of Wisconsin
• Northern Illinois University • University of Guelph • Virginia Commonwealth University
• Ohio University • University of Houston • Western University
• The Ohio State University • University of Kentucky • The Wharton School of the
• Oklahoma State University • University of Maryland
y y University of Pennsylvania
y y
• York University
7/26/2012 Blackbaud Confidential 12

13. PARTICIPATING PRIVATE INSTITUTIONS
• Allegheny College • Gustavus Adolphus College • Salve Regina University
• Boston University • Hartwick College • Sarah Lawrence College
• Brandeis University • Harvard Medical School • St. Louis University
• Polytechnic Institute of NYU
y • Ithaca College
g • Smith College
g
• Carroll College • Johns Hopkins University • Southern Methodist University
• Carnegie Mellon University – • Loyola University Chicago • St. Norbert College
Tepper School of Business • Loyola University New Orleans • Syracuse University
• College of Saint Benedict • Luther Seminary • Texas Christian University
• Columbia University • Marquette University • Union College
• Cornell University • Massachusetts Institute of • University of Chicago
• Creighton University Technology • University of Miami
• Dartmouth College • Mount Saint Mary's College • University of Richmond
• Dartmouth Medical School • University of Notre Dame • University of San Diego
• Emmanuel College • Northwestern University • Wake Forest University
• Emerson College • New York University • Wofford College
• Emory University • Rice University • Yale Law School
• Gardner Webb University • Rockhurst University
oc u st U e s ty • Yale School of Management
• Gettysburg College • Rensselaer Polytechnic Institute
7/26/2012 Blackbaud Confidential 13

14. INDEX METHODOLOGY
• 60 public and 51 private institutions
• Actual donor transactions, not survey responses
• Cash payment basis, not pledges
• Gift cap used to exclude major gifts
• Does not include:
- Soft credits
- Matching gift payments
7/26/2012 donorCentrics™ Performance Benchmarking 14 Confidential

15. DONORCENTRICS COHORT GROUPS
• Athletic Giving new • Law Schools
• Big 10/Big 12 • Medical S h l
M di l Schools
• Business Schools • Parents Group new
• Canadian Schools • Private College Consortium
• Faith-Based Schools • Science and Tech Schools
• Ivy League • SEC Schools new
• Large Public Universities • Small Colleges
• Mid Sized Public Universities • Women’s Colleges new
Sign up,
+ Send us your data by July 31, 2012
= An ice cream party for your team!
7/26/2012 donorCentrics™ Performance Benchmarking 15 Confidential

16. BENCHMARKING BENEFITS:
C G S
Benchmarking helps institutions:
• Identify strengths and weaknesses
y g
• Consider new methods, ideas and tools to improve effectiveness
• Crack through resistance to change
• Set higher sta da ds
g e standards
• Accelerate learning
• Make better decisions
• Improve allocation of scarce resources
• Justify fundraising investments
• Demonstrate efficiency to stakeholders/donors
• Preserve institutional memory through staff transitions
7/26/2012 donorCentrics™ Performance Benchmarking 16 Confidential

17. OVERALL GIVING
7/26/2012 donorCentrics™ Performance Benchmarking 17 Confidential

18. MEDIAN DONOR PARTICIPATION RATES
2009 2010 2011
26% 25%
19%
9% 11%
11% 10%
8%
7%
Private Public Overall
7/26/2012 donorCentrics™ Performance Benchmarking 18 Confidential

19. MEDIAN CHANGE IN REVENUE
2009 2010 2011
4.7% 6.3% 6.9% 5.3% 6.1%
4.4%
-12.8%
-13.0% -12.8%
Private Public Overall
7/26/2012 donorCentrics™ Performance Benchmarking 19 Confidential

20. MEDIAN CHANGE IN DONOR COUNTS
2009 2010 2011
0.5% 0.1%
-0.5% -1.0%
-1.9%
-2.6%
-4.7%
-6.0%
-6 0% -5.7%
Private Public Overall
7/26/2012 donorCentrics™ Performance Benchmarking 20 Confidential

21. MEDIAN REVENUE PER DONOR
2009 2010 2011
$550 $591 $583
$474
$416 $400 $450
$356 $385
Private Public Overall
7/26/2012 donorCentrics™ Performance Benchmarking 21 Confidential

22. MEDIAN CHANGE IN REVENUE PER DONOR
2009 2010 2011
9.2%
4.2% 7.4% 6.1% 6.8%
4.2%
-6.4% -7.5%
-8.1%
Private Public Overall
7/26/2012 donorCentrics™ Performance Benchmarking 22 Confidential

23. ACQUISITION
7/26/2012 donorCentrics™ Performance Benchmarking 23 Confidential

24. MEDIAN CHANGE IN NEW DONORS
2009 2010 2011
0.0%
-0.6% -0.4%
-1.9% -2.1%
-4 4%
4.4% -3.5%
-3.9%
3 9%
-9.2%
-9 2%
Private Public Overall
7/26/2012 donorCentrics™ Performance Benchmarking 24 Confidential

25. MEDIAN REVENUE PER NEW DONOR
2009 2010 2011
$136 $128
$126 $127 $123
$127
$117 $120
$100
Private Public Overall
7/26/2012 donorCentrics™ Performance Benchmarking 25 Confidential

26. RETENTION
7/26/2012 donorCentrics™ Performance Benchmarking 26 Confidential

27. MEDIAN DONOR RETENTION RATES
2009 2010 2011
65% 66% 67%
61% 62%
55% 58% 58% 59%
Private Public Overall
7/26/2012 donorCentrics™ Performance Benchmarking 27 Confidential

28. MEDIAN MULTI-YEAR DONOR RETENTION RATES
2009 2010 2011
70%
67% 71%
66% 66%
59% 62% 62% 64%
Private Public Overall
7/26/2012 donorCentrics™ Performance Benchmarking 28 Confidential

29. MEDIAN NEW DONOR RETENTION RATE
2009 2010 2011
30%
27% 30%
27% 27%
24% 25% 27%
26%
Private Public Overall
7/26/2012 donorCentrics™ Performance Benchmarking 29 Confidential

30. MEDIAN CHANGE IN RETAINED DONOR REVENUE
2009 2010 2011
8.8%
6.8%
4.5% 5.0% 4.9%
5.3%
-11.5%
11 5%
-11.4% -11.5%
Private Public Overall
7/26/2012 donorCentrics™ Performance Benchmarking 30 Confidential

31. REACTIVATION
7/26/2012 donorCentrics™ Performance Benchmarking 31 Confidential

32. MEDIAN DONOR REACTIVATION RATES
2009 2010 2011
18%
18%
17%
16% 15%
14% 14% 16%
13%
Private Public Overall
7/26/2012 donorCentrics™ Performance Benchmarking 32 Confidential

33. MEDIAN REVENUE PER REACTIVATED DONOR
2009 2010 2011
$387
$359
$314 $295
$271 $269 $292
$246 $274
Private Public Overall
7/26/2012 donorCentrics™ Performance Benchmarking 33 Confidential

34. MEDIAN CHANGE IN REACTIVATED DONOR REVENUE
2009 2010 2011
17.1%
14.6%
10.3%
10 3%
-6.3% -4.5%
-5.7%
-11.7% -15.6%
-17.5%
-17 5%
Private Public Overall
7/26/2012 donorCentrics™ Performance Benchmarking 34 Confidential

35. DISCUSSION
7/26/2012 donorCentrics™ Performance Benchmarking 35 Confidential

36. THANK YOU!
Jenny Cooke Smith
Account Manager, Higher Education
Jenny.Cooke@blackbaud.com
Jenny Cooke@blackbaud com
John Mastrobattista
Senior Fundraising Analyst
John.mastrobattista@blackbaud.com
John mastrobattista@blackbaud com
7/26/2012 donorCentrics™ Performance Benchmarking 36 Confidential