School of Public Policy and Governance Alumni Network

Alumni Network Fundraising: Operating & Philanthropic

Prepared by: Kaleb Ruch March 2012

Executive Summary
Objective
Operate the Alumni Network as a self-funding, non-prot organization. Encourage and coordinate Alumni donations to the SPPG.

Recommendations
Operations Keep Alumni Network operating funds in a bank account at a branch near the SPPG. Establish in writing the roles and responsibilities of those in charge of funds related to the operations of the Alumni Network as part of a new governance structure. Require two signatories for all transactions. Produce an annual budget and year-end accounts Work closely with Events co-ordinator.

Operate the Alumni Network on a cost-recovery basis over the course of a scal year. Focus the Alumni Networks operations fundraising efforts on two efforts Establish an operating reserve in the bank account sufcient to cover the costs of approximately one event. Obtain initial reserve through low/no-cost fundraising. Measured promotional activities directly related to the core mission of the Alumni Network

Any additional funds held in the account should be earmarked for a particular purpose within the scal year. Events held by the Alumni Network should be able to cover their own costs. Exception: when an event is not made to cover its own cost, this should be made clear by organizers and have a specic, endorsed purpose (example: proposed spring-time launch event to engage the next cohort of graduating students).

Philanthropic Short-term
Alumni Network Fundraising: Operating & Philanthropic 1

Establish an Alumni Network-afliated donation option through U of Ts advancement ofce (like The Directors Fund). Aim to deliver at September 2012 launch event. Consult alumni on target recipient(s) and value of awards, and on what they would be willing to donate annually. Establish a recommended tiered donation level that varies based on the number of years since graduation. Levels should be easily reached for recent graduates, set higher thereafter to account for lower student debt loads and higher salaries (e.g. $25 p.a. in rst year after graduation, $50 for second year, $100 for third year, $200 fourth). Use the feedback gained through the consultation to inform these levels. In some way reward or acknowledge those who meet those levels (e.g. dedicated section in a newsletters, donor-only event, etc.) Acknowledge the graduating class who has the highest proportion of donors.

Establish the scope and purpose of the fund:

Allot 50% of annual funds collected through the advancement account to the purposes established through the consultation (e.g. scholarship(s), etc.). Retain 50% of all annual donations to be rolled into an endowment (see below).

Long-term Form a working group tasked with developing a plan to establish an Alumni Network endowment fund within three to ve years. Use the saved donations as a down payment Find and develop strategic partners to match the Alumni Networks down payment. Establish a goal for the size of the endowment that is realistic based on the Alumni Networks down payment and the number of matching donors. ($25k minimum). Establish transition plan from donating through advancement account to directly into the endowment (determine role for U of T Advancement in this process). This process should be one of the main priorities of the Finance point person Use the annual returns of the endowment to fund the Alumnis philanthropic initiatives as established through continued consultation with members (e.g. scholarships, etc.).

Alumni Network Fundraising: Operating & Philanthropic