Chair's Column: Why Philanthropy Must Be Part of Our Culture

We think of our University as ‘publically funded’; better put, we are ‘publically supported.’ In fact, only about 30% of our funding comes from the public coffers and this proportion is decreasing over time. For this reason, one of my roles as Chair is to bring new monies into our Department to support our mission. As a clinician scientist, I had always felt I was doing my bit by bringing in research grants and contracts to advance our academic mission. I did not, until now, understand the critical role of the third bucket of fundraising: philanthropy. This is why “Raising Funds to Achieve Our Goals” is a DoM strategic priority. But, Chris Adamson, our senior development officer, and I cannot do this successfully on our own – we need your help! In this edition of our newsletter we will tell you how you can contribute.

Fundraising is not….
Perhaps I was a little naïve, but I have learned, to my relief, that fundraising is not a process of seeking out individuals who possess a high net worth and have significant financial means. As Henry Rosso, one of the most influential figures in the development of philanthropy in the United States said, “Fundraising isn’t a simple process of begging - (but rather) it’s a process of transferring the importance of the project to the donor.” Rather like good clinical care, fundraising is very much about relationships and relationship building. Rosso notes, “Fundraising is the gentle art of teaching the joy of giving.”

Fundraising versus Advancement
I always thought the term ‘advancement’ was just a nice way of saying ‘fundraising’ – wrong again! I’ve learned that advancement is the strategic and integrated management of relationships, with the purpose of increasing engagement and support among key constituents, to advance the mission of the institution.

Advancement professionals like Chris work with key stakeholders in the institution and on behalf of the institution to:

• Engage alumni in the life of the institution as volunteers, advocates and supporters.
• Communicate about the institution with those who have a stake in its success.
• Secure private financial support from potential donors.

How do we build the donor pipeline?
As academics and clinicians, we come in contact with a lot of people. We build long-lasting relationships with these people, many of whom come to admire your work and care passionately. These are prospective donors. As a University department, we do not want to compete with the hospital for the ‘grateful patient’ who has received exemplary care and wishes to give back. Rather, our goal is to partner with the Faculty and affiliated hospitals to advance our academic mission by enabling you to do your work.

When looking for new or prospective donors, we need to focus on identifying individuals who have a strong interest and passion for what we do. Their financial capacity is not as important as a strong belief in our mission and work. This is called ‘prospecting for passion.’

It takes a lot of passionate people to advance our mission! Below is a ‘gift pyramid’ for a hypothetical fundraising campaign of $50M. Industry standards tell us that for every one major gift secured, we need four qualified prospects.

Collectively, we have done quite well. Here are some of the highlights for fiscal year '15-16 (May 1, 2015-April 30, 2016):

• Increase in the number of major gifts ($25,000+ level; 11 received) compared to FY 13-14 (three major gifts) and FY 14-15 (two major gifts).
• Over $1.8M in gifts pledged since May 1, 2015.
• Seven major gifts secured are from first-time major gift donors.

How can YOU help?

SHOW GRATITUDE:
Say thank you often and early!

Stewardship refers to the administration of philanthropic gifts and the management and care of the relationship between the donor and the institution. The goal of stewardship is to strengthen and preserve that relationship over time.

A vital element of stewardship is thanking and recognizing donors. For those of you who are recipients of gifts (fellowship awards, chairs, divisional support, etc.) it is your personal responsibility to properly utilize resources provided to you by donors, and to regularly thank them for their contributions.  Stewardship is necessary to convey the impact that the donor’s gift has enabled. Good stewardship is also essential because we are far more likely to receive a new gift from an existing donor than someone who has never given before.

Saying thank you is an easy and necessary element of stewardship and it need not be onerous! The statistics suggest that nine contacts with a donor per year are sufficient – types of contacts might include: 

• Personal invites to “exclusive” events/lectures/talks.
• Advanced notices about upcoming news or discoveries that will be unveiled in the newspaper/media.
• Thank you phone calls or handwritten letters.
• Sending a manuscript or newspaper write-up or award announcement.
• Informal meetings with the donor over breakfast or lunch.

While statistics show that only 22.9% of new donors to non-profits give again after their first gift (a number that is shockingly low), after a new donor gives a second time, 60.8% of those individuals give again. This demonstrates the importance of good stewardship. Your next donor is more often than not, your last happy donor!

Tips for Successful Stewardship:

• Be creative in saying thank you – make it as personal as possible.
• Be sincere when saying thank you.
• Be grateful; make reporting back to the donor a priority.
• Follow the idea that “the giver has the right to enjoy their giving” – invite them to meet the researcher(s) they are supporting; invite them to meet the trainees who benefited from their gift; invite them to go on lab tours, etc.
• Make stewardship systematic. Provide consistent updates and make our donors feel like they are part of our team.
• Create the “Joyful Giver/Donor.”

CREATE A COMPELLING CASE
A compelling vision creates excitement in the eyes of the donor.

Often faculty members come to me stating a need for additional resources for this and that – donors aren’t really interested in making up deficits – they want to make a difference! So we need your help in raising funds to enable you to do the work you do so well! How to build a compelling case is no small feat and critical to the success of any academic leader. For this reason, we have included in this month’s newsletter a how-to guide on building a compelling case by our SDO, Chris Adamson. Please note, the points he lays out are NOT only relevant to philanthropy, but similarly useful when aiming to bring in money from government and other non-profit organizations, not to mention being key to success in research!

CONSIDERING DONATING TO ACTIVITIES ABOUT WHICH YOU ARE PASSIONATE
Put your money where your mouth is!

There is nothing more compelling to prospective donors than knowing that the individuals engaged in the work believe in it enough to contribute through personal donations. Now, before you get up in arms about this suggestion, let me state up front that I am WELL aware of the fact that ALL of our faculty – at least those that are full-time members in practice plans – contribute substantially to the academic mission by contributing their personal income towards support of education and research. In this respect, I think it would be fair to say that 100% of our full-time faculty members are donors! I am also well aware of the fact that not everyone has the same financial resources, and that philanthropy among physicians often takes a back seat to mortgage, school fees, loan payments, and other necessary financial commitments.

Still, many of our faculty have donated to the Faculty of Medicine over the years. While the numbers may be rough, approximately 195 faculty members (20 retired, six community-based, four former, and 165 (/800) current full-time faculty members) have made donations to the FoM/DoM in their lifetime. Of the senior faculty members (PICs, DDDs, Vice Chairs) on our Departmental Executive Committee, 17/29 (59%) have made at least one donation to the University. Here are some statistics on our faculty member donors:

SUMMARY:
We can no longer rely on public monies to support our Academic Mission – it is not sustainable. Beyond the traditional sources of revenue to our department, we must add a commitment to advancement: philanthropy. Indeed, this is an expectation of our academic leaders.

All faculty members and trainees should be prepared to articulate a compelling vision for what you do and why, and to assist, as appropriate, in identifying prospective donors, and working with our advancement staff to develop a case for support.

Recipients of donor support must be diligent and attentive stewards of these gifts – help our donors to enjoy the giving by recognizing them and thanking them regularly!