Reflections on the $128.5M gift to George School

Patricia Van Allen Voigt, Senior Consultant

The recent announcement of the largest gift ever given to an independent school in this country has been inspiring to our school communities and generated excited buzz with trustees, parents and alumni. Imagine that this can happen to your school too, if you lay the groundwork for philanthropy in thoughtful and deliberate ways by connecting your donors to your mission and the work of your students and faculty. George School did everything right- communicating often with the donor, Barbara Dodd Anderson, over many years, and engaging her with students and faculty in meaningful ways.

What are the lessons to be learned for your school? Just to mention a few:

• The importance of stewardship

Mrs. Anderson had made three previous significant gifts for a teaching chair, for a new library, and for endowment for financial aid that now supports 16 students a year. All of those students correspond with Mrs. Anderson, so she knows them and they know her. How many of you encourage your students to write thank you notes to donors?

There is no better way of thanking someone than hearing directly from those who benefit most from their largesse. Teachers too can be advised to communicate their thanks to donors who have given funds to support their salaries, their professional studies, and their departments. Gratitude for Mrs. Anderson’s early gifts paved the way for her ultimate multi-million planned gift.

• The importance of a planned giving program

This planned gift, a most creative irrevocable, charitable annuity lead trust, will provide George School $5M a year for the first 15 years and $10.7M in each of the last five years. Given her age, it is likely that Mrs. Anderson’s gift will continue to provide an amazing influx of funds to the school long after her death. If you do not have a planned giving program in place, begin with a simple legacy society and encourage bequests from your alumni to make a large difference in your endowment and secure your school’s financial future.

• The importance of messages that generate pride in your school

“I want to help George School because of the excellence of the faculty and because it is a school without pretensions, where caring for and learning from each other are as important as academic success” said Mrs. Anderson. What better message to send the world? Messages about your school are going out every day, if not in a Philadelphia Inquirerheadline, in your newsletters, on your website, and in conversations around campus. Do your messages reflect your mission, values, and offer opportunities to honor your students and faculty? Do they generate pride among all your constituents?

Independent schools everywhere take pride in the announcement of this gift that endorses the kind of education we provide. Congratulations to the George School for setting a new level of philanthropy for our schools. Please contact us if we can help you in your development and planned giving efforts.

Click here to read more about the $128.5 million donation to George School.

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Ten Ways to Enhance Endowment at Your Institution

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Kathy Watson and Patricia Voigt, S&W Senior Consultants

The following is from a presentation Kathy and Pat gave to the Boards of trustees of Chestnut Hill College, Morris Arboretum, and Woodmere Art Museum at a function sponsored by Haverford Trust.

Link Endowment to institutional excellence

Create a solid vision backed by a plan that can be clearly explained. Consider stronger staff, more impact, and adventuresome programs. Benchmark!

Make the Financial Case for Endowment

Articulate what is needed in the context of overall institutional health. Emphasize fiscal stability; a healthy endowment will ride out volatile markets. Link endowment to your strategic plan. Create a stable platform for growth. Add endowment when building new facilities.

Market your endowments

Balance your current needs/facilities with long-term endowment goals. Focus development staff and CEO time on endowment. Every campaign should have endowment component.

Integrate planned giving into your solicitations

Encourage blended gifts, for example, a major gift to establish a fund, annual gifts to activate the fund, a planned gift to complete the endowment. Create opportunities for smaller funds to grow with the endowment.

Role of the Board

Board members are ambassadors and represent the organization to the broader community; it is essential you understand the needs of your institution. The Board has a distinctive role in fund-raising. Understand the philanthropic role of the board: highest priority, 100% participation. Use your contacts for your organization. Board giving sets the pace for others. Consider a Board matching or challenge grant to spur giving

Focus on building long-term relationships with prospects

Endowment gifts link the values of the donor to the values of your organization. Seek to continue connections with former board members, staff and faculty. Routine letters and reports offer the opportunity for another gift.

Forge strong partnerships between Finance and Development

Each party must understand the obligations that come with stewarding gifts. Today there is a new emphasis on transparency and accountability. Your ability to market strong and consistent returns over time inspires confidence. Ensure that your internal systems support your reports.

Focus on Stewardship

Always focus on the impact of a donor’s gift, report back frequently, be “donor centered.” Link donors to their recipients—scholarship students, curators, program staff. Be clear with donors about use of their gift, the growth of funds, your management philosophy.

Accountability

Be clear about minimum gifts required to establish endowed funds to avoid frustration on both sides . A minimum gift can be $10,000 or $100,000—whatever will have a true impact on your organization. Review fundraising strategies with your CFO and ensure that management and stewardship are accurate and deliverable. Work out details of gifts with admin/faculty/curators for terms of endowment funds. Articulate your investment strategies.

Create special endowment funds that will underwrite specific programs and projects

Have meaningful naming opportunities to link donors to your institution. Build funds with families over time; continue a legacy of giving. Make endowment central to the life of the institution and communicate that to your donors via mail, website, and email messages.

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