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Market Analysis Of Alumni Giving Trends

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Market Analysis Of Alumni Giving Trends

  1. 1. Research conducted by AlmaMatters.org AlmaMatters.org
  2. 2. Alumni Contributions <ul><li>Total voluntary contributions = $29.75 billion dollar industry </li></ul><ul><li>$8 billion was alumni donations </li></ul><ul><li>Donations have been fairly stagnant (increase of 3 billion over the past 10 years) </li></ul>AlmaMatters.org
  3. 3. Enrollment Stats <ul><li>Percentages of 16 to 24 year olds enrolled in college: </li></ul><ul><li>1972: 49% </li></ul><ul><li>1997: 67% </li></ul><ul><li>2001: 62% </li></ul><ul><li>2005: 69% </li></ul><ul><li>Note: From 2004 to 2014, NCES projects a rise of 11 percent in enrollments of persons under 25, and an increase of 15 percent in the number 25 and over </li></ul>AlmaMatters.org
  4. 4. Voluntary Support Breakdown Voluntary Support of Higher Education, 2007 29.75 billion AlmaMatters.org
  5. 5. Marketing Mix <ul><li>Telephony </li></ul><ul><ul><li>Mostly handled in house, student labor, profitable </li></ul></ul><ul><li>Direct Mail </li></ul><ul><ul><li>High response rate </li></ul></ul><ul><li>E-Mail </li></ul><ul><ul><li>Fairly new means of communication </li></ul></ul><ul><li>Website </li></ul><ul><ul><li>Great for keeping alumni up to date, size and scope varied </li></ul></ul>AlmaMatters.org
  6. 6. Typical Donation Facts <ul><li>Based upon surveys conducted, universities generally get a 1 to 2% response from mailers, phone calls, or invitation cards to events. </li></ul><ul><li>Donation amounts vary: </li></ul><ul><ul><li><$2,500.00 Phone calls/Direct mail </li></ul></ul><ul><ul><li>>$2,500.00 Campus events </li></ul></ul><ul><ul><li>Larger donations are typically from wills, foundations, estates </li></ul></ul><ul><li>Schools investment for fund-raising is about 10 cents per dollar received. Note: This number applies to retention of existing donors. </li></ul>AlmaMatters.org
  7. 7. Institution Touch Points <ul><li>Anniversary of graduation </li></ul><ul><li>Homecoming </li></ul><ul><li>Athletic events </li></ul><ul><li>Ground breakings/celebrations </li></ul><ul><li>Fundraising campaigns </li></ul>AlmaMatters.org
  8. 8. Donor Lifecycle <ul><li>Graduation to 10 year mark </li></ul><ul><ul><li>Maintaining relationship </li></ul></ul><ul><li>10 plus years </li></ul><ul><ul><li>Marriage, promotion, kids, higher disposable income </li></ul></ul><ul><li>20 plus years </li></ul><ul><ul><li>Leaving a legacy </li></ul></ul>AlmaMatters.org
  9. 9. Strengths of the Market <ul><li>Size of the market </li></ul><ul><li>Continuously growing alumni base </li></ul><ul><li>Loyalty is established with alumni early on </li></ul>AlmaMatters.org
  10. 10. Weaknesses <ul><li>Demographics – several segments </li></ul><ul><li>Schools struggle to engage alumni </li></ul><ul><li>List neglect </li></ul><ul><li>Short term fund raising vs. long term relationship building </li></ul>AlmaMatters.org
  11. 11. Opportunities <ul><li>Growing base of alumni </li></ul><ul><ul><li>Longer life spans, increasing capacities, new degree offerings </li></ul></ul><ul><li>Room for growth - 88% of alumni do not contribute </li></ul><ul><li>Schools recognize the need for new marketing solutions </li></ul><ul><li>Engage current students now </li></ul>AlmaMatters.org
  12. 12. Threats <ul><li>Economy </li></ul><ul><ul><li>Tight economy, unemployment rising, political changes approaching </li></ul></ul><ul><li>Performance Standards </li></ul><ul><ul><li>Athletics, academics, rankings </li></ul></ul><ul><li>Competition for donor dollars </li></ul>AlmaMatters.org
  13. 13. Conclusion <ul><li>Schools need to start engaging students now to increase chances of a donation in the future </li></ul><ul><li>There is a need for innovative marketing concepts to engage alumni </li></ul><ul><li>Fund raising is essential for schools to cover costs and to keep national ranking </li></ul><ul><ul><li>Tuition typically covers 73% of a schools operating cost. </li></ul></ul>AlmaMatters.org
  14. 14. References <ul><li>1). Kaplan A., (2007). Council for Aid to Education. w ww.cae.org . Retrieved April 2, 2008, from http://www.cae.org/content/display_press.asp?id=73 </li></ul><ul><li>2). Student Effort and Educational Progress. (2007).  Transition to College,  (1), . Retrieved April 3, 2008 from http://nces.ed.gov/programs/coe/2007/section3/indicator25.asp#info database. </li></ul><ul><li>  </li></ul><ul><li>3). Golden D., (2007). MATHLESSONS. http://online.wsj.com . Retrieved April 1, 2008, from http://online.wsj.com/public/article/SB117279405348024132-9gtgPqmUvqfygoTj_VTDcS48J1o_20070309.html?mod=yahoo_free </li></ul><ul><li>Interviews Conducted are private information. </li></ul>AlmaMatters.org

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