The Council for the Advancement and Support of Education released its first major study on principal gifts. The CASE Study of Principal Gifts to U.S. Colleges and Universities, conducted with support from the Bank of America, offers a detailed look and new insights into the transformative impact of principal gifts at institutions across the U.S.
A primary finding from the study indicates that, for many colleges and universities, gifts of varying sizes can be transformational. Twenty-five of the 70 principal gifts reported to CASE through the study were for less than $5 million. Not only do these gifts fund important institutional priorities, they also can act as a catalyst for additional giving.
The study builds on Bank of America’s previous research on giving in collaboration with the IUPUI Indiana University Lilly Family School of Philanthropy, along with CASE’s longstanding Voluntary Support for Education Survey.
The VSE and principal gifts surveys serve distinct purposes. The VSE collects annual information on fundraising from a large cohort of institutions, but it does not capture detailed information on multi-year gift commitments, specific gift purposes, donors’ relations with the institution, or the structure of gifts. The CASE Study of Principal Gifts to U.S. Colleges and Universities was administered to expand on the VSE by inviting a broad cross section of institutions to share detailed information on the most significant gift from an individual donor or donors received in the last five years.
“I love the fact that this new study brings together high-level trends from the VSE data with a deeper dive into the stories and details related to specific gifts,” said Cara Giacomini, CASE Vice President, Data, and Research and Technology. “Our hope is that this information will serve as a unique asset to our members in understanding the nuances of transformative gifts and the role they play in fundraising.”
The threshold value for what constitutes a “principal” or “transformative” gift varies depending on institution type, size, control (public or private), mission, and community served. To determine a threshold value for “principal gifts,” CASE examined five years of VSE data from 1,109 institutions, calculating the average threshold value of the top 10% of largest individual gifts reported by associate’s/community colleges, baccalaureate institutions, master’s institutions, and research/doctoral institutions. The survey invited respondents to report on gifts that were transformational for their institutions and met or exceeded these thresholds.
Among other insights, the study shows that the individuals and organizations providing these gifts are varied and do not fit into preconceived notions. Only half of the individuals giving the largest gifts are alumni and, while many donors have longstanding ties to the institutions they support, a sizable minority are new friends.
“The study shows that institutions of all types should be vigilant in identifying and cultivating supporters,” said Giacomini. “One can never be sure when–or from what source–a gift may come that can have a dramatic impact on the institution for years to come.”
CASE plans to include international participants in future studies of principal gifts. And in the coming year, will begin incorporating the CASE Global Reporting Standards into all CASE surveys, allowing for better tracking of trends in important areas, such as principal gifts, regardless of country or sector.