Alumni resource development for community colleges: A fundraising management model

Community colleges are increasingly turning to fundraising to fill the financial gaps created by declining federal and state appropriations. Thus, community colleges are looking to expand their financial coffers through entrepreneurial partnerships and efforts such as targeting alumni. Typically, community colleges have very small alumni programs focusing their fundraising efforts in other areas. This study outlines effective elements for an alumni resource development program through a four-step managerial decision-making process and the Flexible Leadership Theory (FLT). Strategic elements include leadership commitment, strategic planning, institutional collaboration, staffing, foundation boards, and garnering alumni engagement and community relationships. One key component of leadership in developing the alumni resource development program is recognizing and balancing institutional needs with alumni needs. FLT offers leadership the opportunity to combine innovation with the process of adapting the alumni resource development program. Community colleges in 2011 raised close to $200 million from their alumni community, which is not a large amount compared with the $7.8 billion that four-year institutions raised from alumni. This study breaks ground for future research on alumni-giving in the community college arena, including strategies to promote alumni as advocates and volunteers for community colleges, and for community college leadership to view their alumni as a financial resource that can help close the fiscal gaps that community colleges face in continuing their mission of access.ALUMNI RESOURCE DEVELOPMENT FOR COMMUNITY COLLEGES A FUNDRAISING MANAGEMENT MODEL ALUMNI RESOURCE DEVELOPMENT FOR COMMUNITY COLLEGES: A FUNDRAISING MANAGEMENT MODEL Steven Meneses A Thesis Submitted to the Graduate Faculty of the University of Maryland University College in Partial Fulfillment of The Requirements for the Doctor of Management Degree Charlene Nunley, Ph.D. Mary Ellen Duncan, Ph.D. 2013 ALUMNI RESOURCE DEVELOPMENT FOR COMMUNITY COLLEGES A FUNDRAISING MANAGEMENT MODEL ABSTRACT Community colleges are increasingly turning to fundraising to fill the financial gaps created by declining federal and state appropriations. Thus, community colleges are looking to expand their financial coffers through entrepreneurial partnerships and efforts such as targeting alumni. Typically, community colleges have very small alumni programs focusing their fundraising efforts in other areas. This study outlines effective elements for an alumni resource development program through a four-step managerial decision-making process and the Flexible Leadership Theory (FLT). Strategic elements include leadership commitment, strategic planning, institutional collaboration, staffing, foundation boards, and garnering alumni engagement and community relationships. One key component of leadership in developing the alumni resource development program is recognizing and balancing institutional needs with alumni needs. FLT offers leadership the opportunity to combine innovation with the process of adapting the alumni resource development program. Community colleges in 2011 raised close to $200 million from their alumni community, which is not a large amount compared with the $7.8 billion that four-year institutions raised from alumni. This study breaks ground for future research on alumni-giving in the community college arena, including strategies to promote alumni as advocates and volunteers for community colleges, and for community college leadership to view their alumni as a financial resource that can help close the fiscal gaps that community colleges face in continuing their mission of access. ALUMNI RESOURCE DEVELOPMENT FOR COMMUNITY COLLEGES A FUNDRAISING MANAGEMENT MODEL ii © COPYRIGHT BY Steven MenesesSteven Meneses Steven Meneses Steven MenesesSteven Meneses Steven MenesesSteven MenesesSteven MenesesSteven Meneses Steven Meneses 2013 ALUMNI RESOURCE DEVELOPMENT FOR COMMUNITY COLLEGES A FUNDRAISING MANAGEMENT MODEL iii DEDICATION This study is dedicated to my beautiful wife Natalie and my two glorious children, Isabella and Massimo. Their support and patience over the term of completing this endeavor was never wavering. This testimony of their family faith, love, and benevolence gave me the strength to endure. Muchas Gracias, mis seres queridos. ALUMNI RESOURCE DEVELOPMENT FOR COMMUNITY COLLEGES A FUNDRAISING MANAGEMENT MODEL iv ACKNOWLEDGMENTS I am sincerely indebted to those who have inspired, encouraged, motivated, and supported me through this doctoral degree journey. I wish to sincerely thank the University of Maryland University College for developing the Doctor of Management in Community College Policy and Administration degree. The opportunity to enter the community college arena and continue the community college mission of access is a world that has been opened to me, thanks to these program leaders and my dissertation advisors, Dr. Mary Ellen Duncan and Dr. Charlene Nunley. Likewise, thanks to all my classmates of this first cohort in the program for all the scholarship and fun at the residences. To my leadership mentor, Dr. Roland Livingston, who infused pertinent leadership insights through many discussions over the term of completing this program, my thanks. I am eternally grateful to my wife, daughter, and son, my trinity. Their love has brought me unforeseen joy for a greater purpose in life. Finally, gratitude to my mother, who is a first generation Ukrainian American and an artist who gave me inspiration to go beyond what was presented in front of me. My father, who came to this country from Mexico with no formal education beyond high school, offered his family his example of hard work and a never-ending determination to encourage me to do my best, and he stressed education as a way to further success in my life. Muchas Gracias. дуже дякую (Duzhe diakuiu). S. M. ALUMNI RESOURCE DEVELOPMENT FOR COMMUNITY COLLEGES A FUNDRAISING MANAGEMENT MODEL v TABLE OF CONTENTSTABLE OF CONTENTS TABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS Chapter 1 STATEMENT OF PROBLEM .................................................................................. 1 Statement of Purpose ................................................................................................. 3 Context ....................................................................................................................... 5 Theoretical Base......................................................................................................... 7 Research Questions .................................................................................................... 9 Definition of Terms.................................................................................................... 9 Significance................................................................................................................ 10 2 REVIEW OF LITERATURE .................................................................................... 14 History of Community College Private Support ........................................................ 16 Private Fundraising in Community Colleges ............................................................. 18 Comparing Two-Year and Four-Year Alumni Programs .......................................... 21 Best Practices: Examples of Community College Alumni Development and Fundraising .......................................................................................................... 24 Application of Management Theory to Community College Alumni Programs ....... 26 Presidential Leadership ........................................................................................ 26 Community Relationship Building ...................................................................... 29 Foundations .......................................................................................................... 30 Strategic Planning/Institutional Planning ............................................................ 31 Alumni Database Information.............................................................................. 32 Summary .................................................................................................................... 33 3 CONCEPTUAL MODEL .......................................................................................... 36 Thesis ......................................................................................................................... 36 The Barriers ............................................................................................................... 38 Barrier One: Leadership Commitment................................................................. 39 Barrier Two: Institutional Support ....................................................................... 41 Barrier Three: Lack of Alumni Database Information ........................................ 42 Barrier Four: Inadequate and Poorly Trained Staff ............................................. 43 Effective Alumni Resource Development Elements ................................................. 44 Presidential Commitment..................................................................................... 44 Tactical Management Planning............................................................................ 45 Institutional Collaboration ................................................................................... 46 Alumni and Community Relationships ................................................................ 46 Institutional Market Branding .............................................................................. 48 Institutional Approach for Success ...................................................................... 48 Clearing the Barriers ............................................................................................ 50 Fundraising Staff and Foundation Board Members ................................................... 51 Summary .................................................................................................................... 54 ALUMNI RESOURCE DEVELOPMENT FOR COMMUNITY COLLEGES A FUNDRAISING MANAGEMENT MODEL vi Chapter 4 RESEARCH METHODOLOGY............................................................................... 56 Examination of the Research Literature .................................................................... 56 Literature Analysis Approach .............................................................................. 60 Systematic Analysis Approach .................................................................................. 64 Expert Panel Participants ........................................................................................... 65 Summary .................................................................................................................... 67 5 ANALYSIS AND DISCUSSION.............................................................................. 69 Expert Panel Participant Findings .............................................................................. 70 Summary of Comments by Expert Panel Participants ......................................... 71 Review of Research Questions .................................................................................. 73 Research Question 1 ............................................................................................ 74 Research Question 2 ............................................................................................ 75 Research Question 3 ............................................................................................ 76 Research Question 4 ............................................................................................ 77 Summary .................................................................................................................... 78 6 CONCLUSIONS AND IMPLICATIONS ................................................................. 79 Business Management Approach: Tactical (Strategic) Planning and Decision-making Management Planning ............................................................. 79 Leading and Motivating ....................................................................................... 82 Four-step Managerial Decision-making Process ....................................................... 84 Identifying the Opportunity ................................................................................. 84 Generating Alternatives ....................................................................................... 84 Selecting the Alumni Resource Development Program ...................................... 84 Implementing ....................................................................................................... 85 Collaborating with Institution .................................................................................... 86 Foundation Support .................................................................................................... 87 Staffing ....................................................................................................................... 90 Institutional Market Branding .................................................................................... 91 Alumni and Community Relations ............................................................................ 92 Conclusions ................................................................................................................ 95 Implications for Practice ............................................................................................ 96 Recommendations for Further Research .................................................................... 98 Summary .................................................................................................................... 98 REFERENCES ..........................................................................................................100 Appendix A: Sample Evaluation Form ........................................................................................108 ALUMNI RESOURCE DEVELOPMENT FOR COMMUNITY COLLEGES A FUNDRAISING MANAGEMENT MODEL vii LIST OF TABLESLIST OF TABLES LIST OF TABLESLIST OF TABLES LIST OF TABLESLIST OF TABLESLIST OF TABLES LIST OF TABLESLIST OF TABLES Table 1 List of Keywords........................................................................................................ 58 2 Classifications and Coding of Literature ................................................................... 61 3 Literature Evaluation Table ....................................................................................... 61 ALUMNI RESOURCE DEVELOPMENT FOR COMMUNITY COLLEGES A FUNDRAISING MANAGEMENT MODEL viii LIST OF FIGURESLIST OF FIGURES LIST OF FIGURESLIST OF FIGURES LIST OF FIGURES LIST OF FIGURESLIST OF FIGURESLIST OF FIGURESLIST OF FIGURES Figure 1 Voluntary support of higher education by Council for Aid to Education (2011) ...... 19 2 A conceptual model for alumni resource development programs ............................. 37 3 Flow of strategic management ................................................................................... 49 4 Conceptual model for effective outcomes ................................................................. 53 5 Four-step managerial decision-making process ......................................................... 83 ALUMNI RESOURCE DEVELOPMENT FOR COMMUNITY COLLEGES A FUNDRAISING MANAGEMENT MODEL 1 Chapter 1 STATEMENT OF PROBLEM As budgets shrink due to state government and local municipalities pulling back on financial support to community colleges, many institutions have begun to search for alternative sources of revenue to increase their coffers. A simple solution would be to raise tuition, but most community colleges adhere to a mission of serving the community through open access and affordable tuition; therefore, significantly raising tuition would compromise mission goals. As a result, many community colleges are looking for alternative strategies to increase institutional resources. Among these is the concept of private fundraising. Alumni fundraising, though in its infancy in most community colleges, offers a viable option for enhancing the institutional resources needed to support important institutional objectives. Thus, a literature is beginning to develop in the area of community college fundraising. According to Ryan (2003), scholars have recently conducted a number of studies that survey those responsible for fundraising on their campuses. A number of these studies discuss challenges development offices face, practices that are most successful, and issues emerging within the field (p. 95). Research conducted by Jackson and Glass (2000) targeted the resource development practitioners at a North Carolina community college, revealing five challenges faced by community college development offices. The first challenge is image; the perception is that the district in which the community college operates is fully funded by state and federal funds. The second is leadership; the community college president needs to be an engaged partner in the resource development process. In the third challenge, management brings ALUMNI RESOURCE DEVELOPMENT FOR COMMUNITY COLLEGES A FUNDRAISING MANAGEMENT MODEL 2 accountability and provides good stewardship in the process. The fourth is the development officer position, which needs to be senior-level and part of the strategic planning of the institution. The fifth and last challenge is technology; as software and social media platforms evolve, so must technology. Combinations of these challenges are part of the emerging trends that alumni resource development at community colleges is facing. According to Ryan, Jackson and Glass, and others, the importance of this aspect of institutional fundraising is becoming a pertinent ingredient for success at two-year institutions. This chapter describes the need to fill the fiscal gaps that community colleges have experienced because of declining financial support from state and federal sources. In most cases, community college districts that serve taxpayers struggle with increased taxes and tuition; therefore, the alumni model for fundraising is of critical importance to meet the institutions’ needs in serving their communities. In addition, Strout (2006) mentions that community colleges are realizing how fundraising from private individuals is mandatory. Thus, many community college development officers are targeting or want to target alumni for support as the catalyst in locating private donors. Many community colleges recognize this need and some have positioned themselves to garner alumni support. Monroe Community College (MCC) in Rochester, New York has developed one of the more successful combined alumni program and fundraising initiatives in the country. One element that MCC has effectively developed is its foundation board, which is comprised of 25% alumni. The foundation board has an alumni council targeting alumni representation to be included in many of the institution’s activities. This type of engagement and collaboration from the institution provides a sense of purpose for the alumni. According to Pastorella (2003), “fundraising studies relating to alumni giving have shown a significant ALUMNI RESOURCE DEVELOPMENT FOR COMMUNITY COLLEGES A FUNDRAISING MANAGEMENT MODEL 3 increase in the giving rate among alumni who have been recently engaged…” (p. 76). New ways to develop and solicit alumni resources through eventful alumni engagement such as bringing alumni onto the foundation board as active members or developing distinguished alumni recognition programs and using social media platforms to keep alumni abreast of their institution’s continuing successes are all avenues of alumni engagement. In another example of alumni engagement, Michael Wall, Director of Alumni Relations at Anoka-Ramsey Community College, states, “Alumni relations are about connection” (Currents, 2007, p. 36). Anoka-Ramsey Community College displayed its commitment to alumni by showing them that the college was in the business of fostering relationships. The institution offered a variety of specific events that not only were aimed at alumni but also included the institution. Collectively over time, alumni were interacting with students at events such as business networking lunches and career mentoring events. This example illustrates that through connecting with campus resources, alumni can become engaged with the college. Given the financial uncertainty many institutions see on the horizon, there is a critical call for development offices to plan ways to cultivate and engage alumni in the fabric of their community college. Statement of Purpose The purpose of this dissertation was to design an alumni development model that can be adopted by community colleges across the country. Drawing on research conducted in four-year college alumni fundraising and on the more limited literature of two-year college fundraising, the model can be incorporated into alumni resource development for community colleges. The elements of best practices, the decision-making management process, and leadership theory were identified during the development of this model. However, the limited body of literature and ALUMNI RESOURCE DEVELOPMENT FOR COMMUNITY COLLEGES A FUNDRAISING MANAGEMENT MODEL 4 research regarding community college alumni resource development did not pinpoint any one set of success factors