Ask most higher education professionals, and they’ll discuss the dual nature of revenue generation. Tuition may be a core driver. But higher education fundraising matters just as much as building the budget, funding scholarships, and investing in new capital projects designed to enhance the student and educational experience.
At the same time, fundraising in higher education has seen some headwinds in the recent past. The COVID-19 pandemic has led to a significant drop in charitable giving. Coupled with changing attitudes toward higher education as a whole, institutions across the spectrum are having difficulties meeting their fundraising goals.
In this environment, a more strategic approach is needed to reliably succeed with higher education fundraising campaigns. This guide can be the start of that effort. We’ll provide an overview of key strategies, digital innovation opportunities, and resources designed to enhance your gift appeals.
Understanding the Higher Education Fundraising Environment
While it has long been a part of regular institutional operations, recent higher education fundraising trends point to an evolving landscape that bears mentioning. More specifically, the evolving landscape manifests itself in a few overarching trends:
- A stronger need for fundraising across industries has led to broad appeals like Giving Tuesday, pulling focus away from educational institutions.
- With tighter budgets due to economic downturns, potential donors demand strong appeals to be convinced that they should give up their money for charitable causes.
- Institutional donor bases are getting older, requiring renewed focus on younger alumni to become a part of the donor base.
- Digital transformation has hit the fundraising arena, leading to new opportunities like crowdfunding and social media appeals.
Keep these trends in mind as you consider your education fundraising strategies. Each of them will play a core role in how your audience responds to your appeals—and which audiences you should target in the first place.
3 Key Strategies for Effective Higher Education Fundraising
At its core, higher education fundraising relies on a few central strategies that sound deceptively simple. Still, it’s worth understanding the nuances behind these strategies to create a strategic effort designed to create relevant revenue streams.
1. Building Strong Alumni Relationships
Naturally, alumni who feel strongly about your institution will be more inclined to contribute to its success. But counterintuitively, building those relationships should never occur with fundraising at the center.
Colleges and universities that are successful in this strategy know to separate their alumni engagement and fundraising efforts. They build alumni networks to encourage networking and staying connected, engaging audiences across ages through events and regular communications.
The key is to make alumni feel valuable enough that ultimately, when asked, they’ll be happy to contribute. A relationship without an immediate ask can get you there.
2. Enhancing Corporate Partnerships and Sponsorships
Beyond individual gifts, institutions increasingly rely on corporate partnerships and sponsorships to support their revenue. That starts with identifying potential corporate partners. Again, focus on the benefits they could gain from such a sponsorship.
For example, a local accounting firm may not be willing to simply sponsor a scholarship or classroom at your business school. But what if it results in regular internships and even curricular partnerships that lead to grads who are more likely to have the skills needed to succeed at this accounting firm? The relationship becomes mutually beneficial for all parties involved.
3. Leveraging Grant and Research Funding
Finally, grant writing is taking on increasingly strategic importance in the fundraising realm. Success can come in many forms, from research grants designed for individual faculty all the way to grants designed to improve campus sustainability or a new building.
The opportunities in this field are expanding, including both government and private research grants. But regardless of the individual target, some general grant-writing tips will increase the chances of success.
A clear outline of the need and potential benefits beyond your institution is key. In addition, write concisely, without flowery language or explanations. Budgets should be both specific and accurate, including the ways in which your institution will contribute to the project to make it mutually beneficial for the grantgiver.
Embracing Digital Innovation in Fundraising
Especially when engaging individual alumni, the rising importance of digital tools cannot be overstated. In fact, it wouldn’t be an exaggeration to say that it may just be the most important development in this arena in decades.
Nearly 20% of fundraising now comes through online sources, and that number rises every year. Online donors are given smaller, more frequent gifts, thanks in large part to the channels they can leverage.
Social media platforms like Facebook have begun to implement internal fundraising tools. Digital crowdfunding tools show real-time giving levels to prompt donors for help in getting to a goal. And of course, supplemental tools like AI texting can inform and engage donors on an ongoing basis. These tools engage them and provide crucial resources in the midst of larger fundraising campaigns.
Implementing effective online fundraising campaigns is not easy. It requires a different approach, focused more on peer-to-peer and real-time communication around smaller, more targeted initiatives. But when used correctly, it can be an immense addition to your larger giving efforts.
Consider, for example, the ability to use data analytics for more targeted fundraising campaigns. Deeper analyses of alumni and donor profiles can lead to more dynamic, customized outreach through automated channels like AI texting. A deeper analysis of giving trends can also make other variables like timing more strategic, driving more and better revenue results.
Case Studies: Successful Higher Education Fundraising Campaigns
So far in this guide, we’ve been steeped in the theory of fundraising in higher education. Time to get practical, with real-world examples of colleges and universities that have leveraged alumni engagement, crowdfunding, and corporate partnerships to build their revenue streams.
3 Innovative Alumni Engagement Campaigns
- Fairfield University’s “First Year Letters From Home” campaign, a partnership between alumni and student affairs to drive first-year student engagement and belonging
- University of Queensland Alumni Book Fair, an annual four-day event that results in more than 11,000 books changing hands every year
- Virginia Commonwealth University’s African American Alumni Council Mentoring Circle, which has grown to include and engage alumni of all ages
3 Effective Uses of Crowdfunding in Higher Education
- Ohio State University allows alumni to create their own crowdfunding campaigns on an internally hosted platform
- Culver-Stockton College uses crowdfunding primarily to support individual schools and programs to build more personal alumni-donor connections
- George Washington University uses crowdfunding during its annual Giving Day to support targeted areas and build donor matches for additional giving motivation
3 Higher Ed Corporate Partnership Examples
- The University of Memphis partnered with FedEx to not only provide free degrees but also provide more direct career paths for graduates
- Harper College’s Virtual Corporate Mentorship Program pairs scholarship recipients funded by corporations with mentors from those corporations to drive tighter career pipelines
- Northwestern University and Cigna have built a collaborative tuition reimbursement program in which the health insurance giant funds college for promising employees
Future Trends in Higher Education Fundraising
The only constant in the world of higher education fundraising is change. It’s no surprise, then, that future trends are already beginning to shape changes and shifts in the environment that will only become more important in the near future.
First, and perhaps most importantly, technology continues to evolve—bringing both new possibilities and new challenges. As older generations of donors begin to fade, universities have to build fundraising models designed to engage alumni and other stakeholders virtually.
In addition, the world of higher education is becoming more diverse almost by necessity. More inclusive fundraising efforts are becoming crucial for any institution looking to engage not just the current, but future generations of donors as well. More broadly, as donor priorities continue to change, institutions that can anticipate these changing needs will be more successful in driving future fundraising success.
3 Best Practices for More Sustainable Fundraising
With changing trends and priorities in mind, building a more sustainable fundraising strategy becomes crucial. Rather than relying on individual tactics, that means taking a more holistic approach to your initiatives to ensure success not just in the present, but in the future as well. These three best practices can help:
- Foster a culture of philanthropy. Successful institutions realize that fundraising is everyone’s game. Faculty, deans, even a student philanthropy council can all help in your engagement and crowdfunding efforts.
- Embrace continuous learning. Shifting trends require constant vigilance in changing best practices and audience preferences. Fundraising leaders need to be aware of opportunities as they happen to become more proactive in adjusting their tactics and strategies.
- Build a dedicated and skilled fundraising team. In this arena, passion can make a major impact. But don’t underestimate skills, either. With the right team, and given the right tools, your fundraising efforts become much more likely to succeed.
Conclusion on Higher Education Fundraising
Fundraising in higher education is complex. This is a field that never stands still, requiring consistent adaptation and strategizing to find the best ways to engage your alumni and potential donors.
And yet, it remains an ever-crucial piece of the higher education revenue equation. Institutions that can leverage it to its fullest build a crucial competitive advantage, even and especially in an environment of enrollment and federal funding challenges.
To get there means embracing change and innovation. It means understanding that the landscape is never static, but continues to grow and evolve. Institutions and leaders who can embrace these changes and opportunities will be well-prepared for both the present and future of higher education fundraising.
Additional Resources
- Fundraising Campaigns in Higher Education: A Practical Guide for Governing and Foundation Boards
- CASE Higher Education Resources and Articles
- Fundraising Academy Webinars and Training Resources
- RNL Fundraising Resource Library
- EAB Web Conference: The Sustainability Crisis in Higher Ed Fundraising
- Academic Impressions: Fundraising Resources and Workshops
- Association of Fundraising Professionals: Fundraising Conferences and Events
