Loyola University Chicago Loyola eCommons Dissertations Theses and Dissertations 2010 The Role of Institutional Relations with Alumni Major Donors in Evangelical Higher Education Brian Gardner Loyola University Chicago Follow this and additional works at: https://ecommons.luc.edu/luc_diss Part of the Educational Administration and Supervision Commons Recommended Citation Gardner, Brian, "The Role of Institutional Relations with Alumni Major Donors in Evangelical Higher Education" (2010). Dissertations. 128. https://ecommons.luc.edu/luc_diss/128 This Dissertation is brought to you for free and open access by the Theses and Dissertations at Loyola eCommons. It has been accepted for inclusion in Dissertations by an authorized administrator of Loyola eCommons. For more information, please contact [email protected]. This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License. Copyright © 2010 Brian Gardner LOYOLA UNIVERSITY CHICAGO THE ROLE OF INSTITUTIONAL RELATIONS WITH ALUMNI MAJOR DONORS IN EVANGELICAL HIGHER EDUCATION A DISSERTATION SUBMITTED TO THE FACULTY OF THE GRADUATE SCHOOL IN CANDIDACY FOR THE DEGREE OF DOCTOR OF PHILOSOPHY PROGRAM IN HIGHER EDUCATION BY BRIAN J. GARDNER CHICAGO, ILLINOIS MAY 2010 Copyright by Brian J. Gardner, 2010 All rights reserved. To Mom, who inspired me to begin this journey. To Daniel, who gave me the impetus to complete it. And to Christy, who has endured by my side the whole time. TABLE OF CONTENTS ABSTRACT viii CHAPTER ONE: INTRODUCTION 1 Voluntary Sector of the American Economy 1 Philanthropy in American Higher Education 5 Evangelical Higher Education and Philanthropy 8 Reasons People Give 12 Communities of Participation 13 Frameworks of Consciousness 13 Invitations to Participate 14 Discretionary Resources 14 Models and Experiences from One’s Youth 14 Urgency and Effectiveness 15 Demographic Characteristics 15 Intrinsic and Extrinsic Rewards 15 Cultivating Alumni and Major Donor Giving 18 Biblically-Inspired Fund Development 22 Fund-Raising Issues 24 Purpose of Study 25 Research Questions 25 Definition of Terms 25 Significance of Study 26 Overview of Study 27 CHAPTER TWO: REVIEW OF LITERATURE 28 Introduction 28 History of Giving to American Higher Education 30 New World Generosity 30 Early Philanthropy in Higher Education 32 Fund Raising Becomes Intentional 34 The Professionalization of Fund Development 36 Factors Influencing or Motivating Alumni and Major Donor Giving 39 Communities of Participation 41 Frameworks of Consciousness 43 Invitations to Participate 44 Discretionary Resources 45 Models and Experiences from One’s Youth 46 Urgency and Effectiveness 46 Demographic Characteristics 47 Intrinsic and Extrinsic Rewards 47 Models of Fund Raising 48 Kelly’s Four Models of Fund Raising 48 Grunig and Repper’s Situational Theory of Publics 51 Fund-Raising Practice 52 iv Strategic Planning 53 Management and Leadership 57 Fund-Raising Methods 59 Prospect Engagement 61 Accountability and Ethics 65 Evangelical Context 67 Biblical Views of Giving 68 Characteristics of Fund Raising as Ministry 70 Chapter Summary 74 CHAPTER THREE: STUDY DESIGN AND METHODS 76 Introduction 76 Rationale 77 Research Design 78 Case Study 80 Data Collection 82 Gaining Access to Institutions 85 Interviews 86 Document Review 87 Field Log 88 Data Analysis 88 Interview Analysis 89 Document Review Analysis 90 Trustworthiness and Ethical Considerations 90 Trustworthiness 90 Ethical Considerations 91 Limitations of the Study 92 CHAPTER FOUR: RESULTS AND DISCUSSION: INSTITUTIONAL STRATEGIES AND PROCESSES 94 Introduction 94 Data Collection 95 Data Analysis 95 Descriptions of Institutions and Administrative Respondents 96 Institutional Strategies and Processes 99 The Strategy of Attracting Givers 99 The Process of Engaging Alumni According to Institutional Affinity 99 The Process of Providing Meaningful Giving Opportunities 103 The Process of Expressing a Compelling, Mission-Oriented Message 106 The Strategy of Relating Vision 111 The Process of Prospect Segmentation 111 The Process of Conducting Special Events 114 The Process of Making Personal Connections 117 The Strategy of Inviting Investment 119 The Process of Utilizing Volunteers 119 The Process of Sensing Prospects 120 v The Process of Negotiating Gifts 122 The Process of Stewarding Gifts 126 Chapter Summary 129 CHAPTER FIVE: RESULTS AND DISCUSSION: ALUMNI MOTIVATIONAL FACTORS AND PERCEPTIONS OF INFLUENCE 132 Introduction 132 Description of Alumni Major Donor Respondents 133 Motivational Factors for Alumni Major-Gift Donors 134 Belonging – “I am part of something” 134 Stewarding – “I manage what I am entrusted” 136 Believing – “I see something that is good” 140 Valuing – “I make a difference” 142 Belonging and Stewarding – “I am responsible to more than me” 145 Belonging and Believing – “I want to be good” 147 Belonging and Valuing – “The value I bring reinforces the part I am” 150 Stewarding and Believing – “I invest what I have in what is good” 152 Stewarding and Valuing – “The difference I make validates my investment” 155 Believing and Valuing – “What is nobler than impacting something that is already good?” 157 The Effect of Institutional Relationship on Alumni Donor Motivation 159 Chapter Summary 163 CHAPTER SIX: SUMMARY, CONCLUSIONS, DISCUSSION, AND RECOMMENDATIONS 167 Introduction 167 Summary of Study 167 Context 167 Purpose of Study 169 Methods Used 170 Key Findings 171 Conclusions and Discussion 172 Motivation is Complex 173 Believing is Important 177 Personalized Appeal Influences 180 Some Strategies and Processes Relate to Major Gifts 182 Shaping Mission and Hearts is an Art 184 Recommendations for Practice 188 Confirm Mission 188 Leverage Mission 192 Reinforce Alumni Investment 194 Research Recommendations 195 Remaining Faithful 197 APPENDIX A: LETTER OF INSTITUTIONAL INVITATION 200 vi APPENDIX B: LETTER OF INSTITUTIONAL COOPERATION 202 APPENDIX C: SYNOPSIS OF RESEARCH 204 APPENDIX D: INSTITUTIONAL STAFF MEMBER’S CONSENT TO PARTICIPATE 207 APPENDIX E: INSTITUTIONAL STAFF MEMBER’S INTERVIEW PROTOCOL 211 APPENDIX F: LETTER OF DONOR INVITATION 213 APPENDIX G: ALUNMI DONOR’S CONSENT TO PARTICIPATE IN RESEARCH 215 APPENDIX H: LETTER OF ALUMNI DONOR REFUSAL 219 APPENDIX I: ALUMNI DONOR INTERVIEW PROTOCOL 221 APPENDIX J: TRANSCRIBER CONFIDENTIALITY AGREEMENT 223 APPENDIX K: PARTICIPANTS AND INSTITUTIONS 225 REFERENCES 227 CURRICULUM VITAE 235 vii ABSTRACT American higher education has never been more expensive. Its continued excellence and accessibility depends even more today on charitable subsidy. As previous beneficiaries of that charitable subsidy, alumni are the most logical benefactor of its sustenance. The relatively few alumni who can give most generously make the difference in the success of any fund raising effort. Understanding the motivation of alumni major gift prospects to give such gifts is therefore critical to securing them. This study seeks to understand 1) the strategies and processes institutions employ in engaging alumni major donors, 2) the motivations of these donors to give or not give, and 3) the perception of these donors regarding whether relational activities by the institution can motivate their major-gift support. It does so in the context of evangelical higher education, which has an alumni base that is arguably motivated to give back to God through one’s church if not through one’s alma mater. The case-study design of three Council of Christian College and University (CCCU) institutions generates descriptive data through interviews with both administrators and alumni and institutional communication materials and websites. Data analysis involves looking at these data by themselves and juxtaposed with Kelly’s (1998) two-way symmetrical model of fund raising and Jeavons and Basinger’s (2000) study entitled, Growing Givers’ Hearts. Kelly’s (1998) model suggests the most ethical form of fund raising is found where a donor’s opportunity to shape institutional mission is symmetrical, or equal to, an viii institution’s opportunity to persuade the donor to give. Jeavons and Basinger (2000) contend that organizations which purport an evangelical mission give evidence to their faith in the God who has enabled that mission by the ways they seek its funding. Not only must organizations do no harm in securing funds, Jeavons and Basinger (2000) argue that fund raising ought to grow givers’ hearts closer to God in donors’ process of giving. The institutions in this study pursue strategies and processes noted in the existing literature on fund raising. They also exhibit some evidence of utilizing Kelly’s (1998) two-way symmetrical model of fund raising and pursuing gifts with the tone Jeavons and Basinger (2000) believe to reflect a mature faith. The motivations of alumni major donors to give reflect those in the existing literature. These donors also perceive their alma mater has the capacity to influence their motivation to give larger gifts by the relationships they keep with them. iv CHAPTER ONE INTRODUCTION Voluntary Sector of the American Economy Organizations representing the voluntary, or third, sector of the economy are distinguished from those in the public and private sectors because of their unique purpose. Unlike those in the public sector, voluntary organizations are not agencies of the state. As a result, organizational missions are generally defined and controlled by the marketplace of group interests and resources rather than government bureaucracy. But unlike those in the private sector,