Private educational institutions (either preK-12 or higher ed.) typically have a need for annual budgetary-relieving gifts. These gifts can be either unrestricted and used however the institution wishes or can be restricted, but supportive of the institution’s operating budget. However defined, these annual, “repeatable and replaceable,” gifts are typically part of the institution’s Annual Fund.
Despite its importance to the mission and practical operations of the institution, Annual Fund marketing and case-making can seem complicated. What, specifically, does the Annual Fund support? Why do we need to raise charitable gifts every single year? Doesn’t tuition pay for my (or my child’s) education?
There are a variety of helpful responses advancement professionals can offer to such questions. Below are some talking points you might choose to adopt for your Annual Fund.
Q: What is the Annual Fund and what does it support specifically?
A: Our Annual Fund is the foundation of support at our institution. If you care and want to make a difference in any way, we encourage you to first, support the Annual Fund. It allows our donors to provide the most comprehensive and student-focused support of any type of giving to our institution. Our Annual Fund provides support for our academic program, athletics, our library resources, student scholarships, and other critical aspects of our student experience. Every donor and every amount of gift are welcomed in the Annual Fund. This is where we, as a community, can all come to together to support everything that is great about our mission and our institution.
Q: Why do we need to raise Annual Fund dollars at all? Isn’t tuition enough to cover our costs?
A: Actually, we purposefully reduce our “sticker price” tuition amount from what it actually costs to educate each student. We do this because a significant part of our mission is to keep our tuition as low as we possible can so that as many students and families who want to be here can be here. So, there is, by design, a gap in what our expenses are and what tuition and fees cover. Our Annual Fund is there to fill that gap for the good of everyone.
Q: I don’t understand why this institution is not run more like a business. If a business can’t make money on its core products it goes out of business. Shouldn’t our tuition match the cost of our core product?
A: We certainly utilize business principles! We try to be business-minded and strategic in our planning and in all that we do. But, we view this institution as more than a business. Our students are more than customers and what happens here is much more than a business transaction. We view ourselves as a community. And healthy communities are made up of people who care for one another. That’s where annual giving comes in. People care differently about this place than they do, say, their local Target or Walmart. And, we want more of those positive feelings. When we give in support of our students and our mission – even modest amounts – we know that it helps people feel closer as a whole community. We value that feeling at our institution. So, in a very real sense, our Annual Fund is a core part of our overall business model.
Q: How can we raise money if we can’t tell people where it is going specifically?
A: We know that our students love this place, our families love this place, our alumni love this place because of the impact it is has had on their lives or the lives of loved ones and friends. The mission of this place is special. The Annual Fund is the one fund that specifically supports that entire mission and experience. It is the most comprehensive way for any donor to say, “I support this institution.” So, every Annual Fund gift is supporting something specific – the Annual Fund supports our institution.
Your Annual Fund is important, but its not really because of the dollars raised.
It’s real importance is found in how giving to your Annual Fund creates a healthier, more engaged, vibrant, and caring community.
And, when we, as advancement professionals, embrace that fact about the Annual Fund, it suddenly becomes far less complicated to message and market.