PEOPLE WITHOUT ANY CONNECTION TO A higher education institution don't generally hand over large amounts of money unprompted. Even people who are proud of their alma mater often need to be wooed before they open their checkbook. "In the fundraising world they have always understood that no one is going to give money if you don't beat the bush," says Jim McGlothlin, vice president of higher education at Oracle. The difference is, now the bushes are housed in an electronic database rather than a Rolodex.
"If you don't have something to help you keep your information straight you'll just pull your hair out these days," says Marlene Shaver, chief financial officer of the UC San Diego Foundation. "There is a never-ending need for data, information, and data mining."
As the primary fundraising arm of the University of California, San Diego, the foundation wrapped up a $1 billion campaign in June 2007.
In order to keep all their donor information-ranging from giving histories and funds supported to donors' relationships to UCSD-straight during the campaign, development officers used a homegrown system dubbed FundraisER. A homegrown system was deemed better than something off the shelf because of budget concerns and the desire to avoid a data migration at the start of the campaign. Originally built five years ago to support donor stewardship, the system provides a customer relationship interface and reporting capabilities, as well as stewardship capabilities. It also allows gift officers to review funds, something not possible with the old system, which required special authorization.
"It's a huge improvement over the donor database, which was nothing," Shaver says of their previous system. "You could just put data in."
Although constituent relationship management (CRM) technology is being embraced by the admissions office-where adoption is being driven by the need to track and communicate with thousands of prospective students-development office administrators and staff can be reluctant to abandon traditional methods. In the transition from index cards to digital storage, some staff members are still hesitant to put their contact list into a central database, says McGlothlin.
The face-to-face meetings with major donors, however, will never go away. As more data is gathered, development officers are realizing the importance of tracking donor information holistically, says Karli Grant, product manager of institutional advancement solutions at Datatel. "There is a need to constantly improve how we are tracking and communicating with donors," she says. A good CRM system will enhance a development office's ability to identify, cultivate, solicit, and steward a donor.
Donor Expectations
Indeed, CRM technology can help higher ed institutions deliver the "Amazon.com experience" alumni and donors have come to expect, asserts David Lotz, director of higher education markets for Convio, a provider of online CRM technology. "The constituency is eager to be meaningfully communicated with and personally communicated with according to their preferences," he says. As a former gift officer for IHEs in Texas and California, Lotz has experience in providing that communication.
Shaver agrees. "The system allows us to tell them a story," she says. Gift officers can run reports that give a comprehensive view of a donor's giving history and the funds he or she is supporting, making it easier to personalize information.
"Our FundraisER CRM system is an excellent management tool to keep track of who you are working with, what you need to be doing, and who else you need to work with," says Kim Signoret-Paar, development director for Student Affairs at UC San Diego. "Using FundraisER is critical to a development officer to manage your work and priorities. The system offers a great snapshot of [donors]. With this data, we can get a high level view very quickly, including how they are engaged with the university and their interests-which definitely builds a better relationship."
Because of the increased competition for philanthropic dollars, donors are expecting more detailed financial information, not just the names of scholarships, says Dave Carey, senior manager of higher education practice at Smart Business Advisory and Consulting, a firm that works with higher ed institutions and other organizations to help meet evolving administrative needs. "It's essential in the advancement world to acknowledge how the funds are used. It's good etiquette," says Jeanne Heston, a director of product marketing at Jenzabar. For instance, if someone donates to a fund to build a new gymnasium, future communication can feature updates on the project, with e-mails including links to a webcam to view the construction.
