Community College Fundraising: Investing in Best Practices

Community colleges in Minnesota are facing increased pressure to raise more money with less resources.   Here are six recommendations to help community colleges invest in best fundraising practices …

Recommendations

Staff and Board of Directors can use market trends to increase the productivity of fundraising activities and ensure the vitality and long-term financial sustainability of the Community College. Recommendations include:

1. Maintain or increase investment in fundraising activities.

Nationwide, state funding decreased from 44% of all revenue for community colleges in 2000 (67% in Minnesota) to 37% in 2009 (52% in MN). This trend is expected to continue. Community colleges are increasingly being asked to seek private funds to preserve access, affordability and high-quality programs. As a result, competition for private and external funding is expected to increase among community colleges in Minnesota and nationwide.

2. Continue to increase investments in individual fundraising activities.

Nationally, individuals are the largest source of philanthropic revenue to post-secondary education (43% of total private gifts in 2010), followed by private foundations (30%) and corporate foundations (17%). In 2009, 70% of community college foundations nationwide reported that more than half of all private donations were from individual donors.

3. Invest in personal cultivation activities over special fundraising events.

Community college foundation reported recent declines in giving from special events.  Rather, foundations with successful individual giving programs use events not expressly for fundraising, but to bring the right individuals to campus for donor cultivation.

4. Revisit expectations for alumni giving.

Community college alumni lag far behind alumni at other types of education institutions in the percentage that give (1.1% versus 8.5%) and in average gift size ($241 versus $846).

5. Continue to invest in and develop training programs linked with high-growth and high-demand industries.

Competitive Federal funding opportunities as well as corporations and foundations are expected to increase investments in job training activities linked with high-growth (high-growth) and high-demand (replacement jobs) industries, including allied health and nursing, health information technology, green and renewable energy technologies and information technology.

6. Maintain or increase investments in securing Federal grant funding.

Federal funding is expected to play an increased role in the growth and sustainability of community colleges. However, increased competition for Federal funding opportunities among community colleges is expected. Many programs of interest to community colleges were cut during the current legislative session. It is not known, but highly unlikely, if these programs will be funded at previous levels.

Fox Consulting, LLC, a fundraising consulting firm serving nonprofit organizations and education institutions in Minnesota, developed this set of recommendations to increase the productivity of community college fundraising programs. Recommendations are based on current and projected market trends affecting community college fundraising efforts.

Contact us to get started on your path to community college sustainability.