Someone was nice enough to summarize the PK presentation for Blog Readers.
Oshry talks and notes that PK was invited to test feasability of $15 million capital and endowment campaign for high school and creation of endowment.
Conducted:
27 confidential interviews
16 parents or alumnni
9 current or former board members
11 suggested by someone else in study
1 recommended to make lead gift in campaign
70% had positive view of district
School board does not make decisions that are always popular
78% rate project as high or reasonably high
67% think capital and endowment plan is the right plan
74% think campaign is best way to raise money
5 people think it is not and should share cost via tax
81% advocated proceeding with campaign
Caution about proceeding because there was confusion of where funds would go- pay down debt or endowment
Some people only interested in capital
Some only interested in endowment
Possibility of $15 million
67% felt 15 million attainable
People did not have answer to "who" would come up with the money.
Higher degree of confidence by those who have done major gift giving before
Did not uncover first hand evidence of top ten gifts they were looking for
1/3 felt they could find $3 million gift
When asked for who six of the 30 named $50,000 was largest gift identified
Some did not indicate if they would give money...needed more info
24 of 30 were not interviewed
37 people suggested named people with 11 people suggested multiple time
interviewed 12 of the 37. 9 of 12 indicated they would take a leadership role in fundraising
85% said they would serve in some capacity.
89% said they would be willing to give something
These were good results
Board is untested in its ability to lead a campaign
Recommendations:
1st is to proceed with campaign with $6 million capital and endowment as goal.
Campaign would move community to be positively influence (cultural change)
Address structure to do campaign-small task force to define scope of responsiblity...mlfe/mt lebanon endowment
School district must define its scope of campaign
Enlist steering committee- focus on campaign chair, participating in expanded case for support, prospect cultivation, etc
Update expand existing policies with regards to endowment
Plan and implement a targeted awareness program.
Form a planned giving program (Estate planning with school district in mind)
Staffing and budget for the campaign...currently no staff and no budget for campaign
March 2015 finished with implementation and possibly finished with first fundraising efforts...long after second bond
Questions from Board:
Dale thanks Oshry and says he appreciates the blueprint given to the Board. Asks if the 27 interviews were statistically significant. Oshry says that it is. They are NOT looking for a sample of the community but instead for a sample that represents the right portion of the community. Asks about how arrived at $6 million while recognizing only one gift of any substance. Oshry says two ways, looking at what was heard or not heard when people had the $15 number in front of them. Good to hear about support in community. Need to establish a culture of philantropy in Mt. Lebanon and the culure would grow. Has Oshry seen that culutre grow in other of his jobs...Oshry says National Rehabilitation Hosptial in DC was case study given to say that it can be done. Started at $3 million, then moved to $5 million, then more.
Need to do major gift first to get the smaller gifts later...not the other way around.
Cappucci- Concern with spending money on staffing before money comes in. Do you have a record of how successful you have been...how close have you come to the amount that is expected to be raised. Oshry says campaigns reach or exceed the goal with 87% of the cases. The ones that fail, fail badly. Often the engagement is either redefined or scoped changed. Budget proposed is 14% budget. Within industry standards. With relatively modest goal with no experience the 14% is at the high/safe range of what should be expected. Cappucci says money would not come in for several years. Years 2 and 3 would expect major committments. But other gifts wouldnt be until 2019 and 2020. When we set up to do report it was to offset the bonds. Now that he says this can no longer be the goal, should we shift the focus/campaign. He says no.
Kubit-Thanks for the report. Were there indications on what donors were doing for the endowment...arts, sports, etc? A lot of people said arts and athletics, their favorite program saved by the endowment.
Remely- Likes the report. Doesn't see anything for the small donation for the small family that wants to buy a brick. Establish a endowment is important. It may be the endowment or lack of endowment but monies to capital campaign will be more important to the campaign because it saves interest. Asks Oshry if he will meet the goal and come in on budget. Oshry says yes. Can't pay down bond. Not a lot of options if money is not raised for second bond for high school.
Posti- Asks about the DC Hospital. Asks if naming rights came up at all. It was not a major focus of this study.
Dan asks question about money not coming in for 6 or 7 years....if in first year and a half they have to pay him the $800,000 how does that happen. Consultants are not paid on how much is raised, they are paid on time...in 30 months will you have paid for yourself. Will the district be upside down on this? Yes, we will be in the negative. Good, insightful question by Dan and the answer is worrisome. Dan's question at the end about whether the district will need to pay money and be out of pocket while all this fundraising goes on is a good one. Basically the district will need to find the almost $900,000 to pay PK to do the fundraising and that has to be budgeted for....and I don't believe that includes a school staff person to direct fundraising.