Student Articles

Fundraising in Schools of Music

January 20, 2010 By D. Nichole Martini

Introduction

Schools and departments of music have a unique mission. They encompass two non-profit sector fields, education and the arts. This project addresses the question of how music schools or departments are funded, beyond tuition and other income. The goal of this study focuses on improving understanding about what is currently occuring in fundraising for higher education music programs in the New York City metropolitan area.

First, it is important to understand how higher education schools or departments of music fit into the larger non-profit sector. In 2007, the non-profit sector in the United States amassed approximately $306.39 billion dollars in total contributions.[1] It is difficult to assess how much of the total sector was given to schools of music or departments of music because they are included in the general category of education. That being said, in 2007 the education subsector received 14.1% or $43.32 billion in contributions. The education subsector encompasses “contributions to institutions of higher education including two-year colleges, private and public K-12 education, tutoring programs, libraries and library foundations, scholarship programs—such as United Negro College Fund and others—and alumni, sorority, and fraternity charitable activities (but not membership dues).” [2]

While there are few independent schools of music such as The Juilliard School, Manhattan School of Music, New England Conservatory, and the Curtis Institute of Music, most schools of music are housed within a university. There are some programs of music that are completely separate schools within a university like the Yale School of Music within Yale University or the Aaron Copland School of Music within CUNY-Queens College, but the vast majority of higher education music programs are departments of music within colleges or universities. There are 1,937 institutions of higher learning that grant degrees in music in the United States.[3]

The allocation of funds across institutions of higher education is far from equal. In the definition of the education subsector by Giving USA, there are thousands of institutions that receive a portion of the $43.32 billion dollars. When looking at four year universities, it is remarkable to discover the level of annual contributions for just a few of them. For example, Harvard University in 2006 received $1,039,426,413 in fundraised dollars.[4][5] Yale University received that same year in contributed funds $758,229,529. [6] [7]   The total revenue (contributed and earned) of Stanford University was $4,469,584,963 [8] and for Princeton University $2,453,681,000. [9] [10] These are the numbers for just four private universities in the country. In the conservatory world, there are a few older institutions that are also doing remarkably well financially. Probably the best known is The Juilliard School raised $73,603,220 in the 2005-2006 school year. [11]   This number gives insight into the success music schools can have in thier fundraising. It also gives perspective to the fundraising challenges of most music programs in higher education across the country.

One of the main challenges of a school of music or department of music is that while the programs within them are cherished by most of the organizations that host them, they are very expensive departments to run. The natural donor constituency of alumni does not, for the most part, become major donors. It is difficult to fundraise for this special alumni niche because development officers have to find willing donors that are interested in both education and music. Donors who are interested only in music give to orchestras, opera companies, and performing art centers. However, donors who are interested in both music and the creation of musicians comprise the precious donor targets sought by music education programs.

Research

I first attempted to gather research for this study through a brief, yet informative online survey sent to contacts within schools in the New York metropolitan area. I chose questions I thought would be informative and easily answerable in thirty minutes. Dr. Juran Yoon, a research psychologist, was consulted to edit the survey and help make it as user-friendly as possible. After creating the survey, I hosted it online through surveymonkey.com. Twenty schools with higher education music programs in the New York City area were selected as possible participants in the survey. I sent a personal e-mail to each contact with a link to the survey. Of the twenty schools, only five responded and only with incomplete data. Despite the lack of participation some of the responses did provide insightful information.

After the survey attempt, I decided to try and conduct interviews with key development staff in ten of the schools selected from the twenty chosen for the survey. This proved a much more successful way of gathering information despite the low participation. Four schools participated in the study: State University of New York- Stony Brook, The Juilliard School, Manhattan School of Music, and the Yale School of Music.

In the interview, I posed a set of questions that were similar to the ones included in the survey. However, the interviews were conducted more conversationally and often many questions were answered in one response. These interviews lasted between an hour to an hour and fifteen minutes. I greatly appreciated the generous gift of time from the people interviewed at these institutions, especially since all of them were high ranking executives within the development realm.

Expectations

I conceived this inquiry with notions about how schools and departments of music conduct their fundraising. These notions were formed through years of personal experience with my alma mater. In this university, the central development department conducted the fundraising for the department of music. The chair supplied the university with requests for the needs of the department and the development office decided which projects they could realistically fund. Because of my limited knowledge about this specific area, I assumed that all departments of music conducted fundraising in this manner. In my research I discovered that some of the above system did apply to other music departments. But in other schools, mostly conservatories, the process is conducted differently.

I also had specific notions about who the donors and fundraisers for these schools of music were. I first assumed that schools of music and departments of music did their own donor cultivation because their needs were so specific and the donor’s interests must be as well. I also assumed that the vast majority of donations to schools and departments of music would have some connection to music, like being a musician, being married to a musician, or having a close friend or family member who were musicians. I also assumed that in order to raise money for a school or department of music, the most successful fundraisers would be musicians themselves. While there were elements of truth in each assumption, my research proved that most of my assumptions were incorrect. <

Lessons Learned

Patrons and Alumni

My pre-conceived notions about donors at school of music were incorrect. From the interviews, it seems that patrons for schools of music come from all backgrounds. The general consensus of all those interviewed is that donors must have an interest in music. To my surprise many people who have a passion for classical music are not in any way trained classically. As with many other institutions, donors to schools of music come from widely diverse industries, such as finance, health, education, law, business, and insurance. The difficulty is finding people from those industries that have an interest in keeping the art of classical music alive. In my interview with Juilliard, the interviewee said that “donors for schools of music are unique because they have to be interested in both music and education; donors have to be interested in the future of music as well as in music-making.” This is a testament to the uniqueness of fundraising for a higher education music program.

The institution’s boards most often make the connection to the people mentioned above. Board members are important to the life of any non-profit institution. In the context of a music education institution, they are even more vital because donors to these programs are generally outside the realm of alumni. It takes the friendships and relationships of the board to help plug the school of music into industries that lie outside of the field. This is also where the divide between a university department, school of music, and conservatory becomes apparent. Departments or schools of music housed under the umbrella of a university have the advantage of a much larger and more diverse alumni base that could be possible donors. In conservatory environments, where the alumni often have to measure their achievement outside the realm of financial success, the board is the lifeline and often the sole connection to the donors who will protect the life of the institution.

In a world that is full of tradition, it is often challenging to break out of conventional funding strategies, which generally means asking the same group of people over and over again for money. With the world changing as rapidly as it is, it is important for the life of these institutions to creatively pursue non-traditional donors. This means finding people who are in their fifties and interested in aspects of what the school does, even if it does not directly tie to the making of music. One of the interviewed schools did this with young hedge fund professionals. The school discovered that these types of entrepreneurs liked funding efforts that helped develop people from less fortunate backgrounds. One of the programs this school runs finds talented individuals from less fortunate backgrounds and gives them the gift of a music education. This was the selling point that helped get younger hedge fund professionals to a traditional fundraising event, and it proved highly successful.

When assessing donors it also important to consider whether the institution is private or public. According to my research, most public institutions have to raise funds for all projects that extend beyond regular operational costs, from alumni, friends of the institution, or people that have an interest in developing the area in which the school resides. It is challenging for many public institutions to find the level of support that several private institutions have, mostly because the types of professions and economic levels of alumni and parents of alumni differ greatly from their private counterparts. In one of my interviews, I learned that many students of public universities in the New York metropolitan area are the first in their family to attend college. Often they are also first generation immigrants who are taking on their education in a new language. Because of this unique situation, these students have different experiences and opportunities in the post-university world than other students who graduate from many private universities or conservatories. Public institutions of higher learning have a unique and wonderful opportunity to enable students to pursue their passion and obtain a degree in music. They may not have had the same opportunity in other private universities because of expense. Three great examples the New York metropolitan area are the State University of New York-Stony Brook, the State University of New York-Purchase, and the Aaron Copland School of Music in City University of New York-Queens College. While the opportunity to provide an affordable education to qualified students makes a compelling case in the fundraising process, it is still challenging to find significant support. 

Music alumni are often unable to contribute to their alma mater as major gift donors. Their success is demonstrated differently than vast monetary wealth. However, the contribution of their time can often be a more valuable resource than a monetary gift. For example, a very successful alumnus of any of the institutions interviewed could perform for other donors at a major fundraising event. This opportunity often entices more prospects to come to an event and the performance demonstrates most poignantly the mission and success of the organization. This is especially the case when certain alumni have become international stars, such a Renee Fleming or Emanuel Ax. The contribution of their time can be quantified as a substantial monetary donation. However, their performance inspires gifts that exponentially outshine anything they could have given themselves and continues the legacy that built their success. >

Another interesting place to find patrons for schools of music is in the already contributing circles of local performing arts institutions. Two of the schools interviewed said that their donors often also contribute to symphonies, ballet companies, and opera companies in the city. One interviewee said, “We are not in competition with the New York Philharmonic, New York City Opera or the American Ballet Theater. We are the farm team supplier to these institutions in New York, the United States, and the world… And many people, especially those sitting on our board serve on the boards of those institutions. It’s not a conflict at all. We are at a different level. We are training these dancers, musicians, and actors.” This is yet another example of how having a mission that combines education and music is helpful.

Fundraisers

Executive fundraisers for schools of music also come from diverse backgrounds. I originally anticipated that development officers in this field would be people who were either former musicians or at least had some association with music-making; but I discovered this is not the case. None of the four executives interviewed were musicians, not even former musicians. However, they all had an interest in the arts and a passion for keeping them alive. Some of them were connected to music through family, others came from visual arts backgrounds, and still some just had an interest in what the music department was doing. The other commonality of these fundraisers is that they all worked exceedingly well with people. They were intelligent and savvy managers and genuinely interested in creating and maintaining relationships. One of the schools interviewed said, “keeping relationships with donors alive past the gift is very important to the life of the institution and the long-term goals of the organization.”  Having an interest and passion for connecting people to the mission of a higher education music program is essential to the success of fundraising for them.

What is a major gift?

Major gifts are generally a core part of any institution’s fundraising. The definition of a major gift varies by size, mission, and demands of the organization. Hospitals often classify a major gift as several million dollars. A small institution may classify a major gift as a few thousand dollars. Also, different institutions classify major gifts differently. Some consider major gifts higher level donations that contribute to the annual fund and others consider them occasional gifts of large amounts that contribute to specific projects or programs. This is also true for schools of music. Between the four schools, the definition of a major gift, in amount donated, varied; but overall it is generally around $25,000 and above. This amount is pretty consistent for arts organizations in New York City.

How are they cultivated?

Events sponsored by the university’s central development department begin the process of cultivation for major gifts by identifying potential prospects. The cultivation process starts with finding people who are interested in giving to the university and then to projects involving music. All four of the schools interviewed concur that the challenge really lies in that first identification. Matching people to the interests of the music program takes careful listening and very specific research. After development officers get through this process, they then pursue specific cultivation events and conversations.

Major Gift cultivation events for schools of music often circle around a performance presented by the department’s musicians. Through the research process, development staff can gather information about what particular interests the donor has. If the donor likes contemporary music, it would be appropriate to make special arrangements for them to be present at a concert featuring compositions by the school’s students. If a prospect adores opera, it is important to provide a way to get him or her wonderful seats to the student opera production.

One of the schools interviewed took this process a step further by involving prospect donors in classroom or rehearsal experiences. They set up a dinner in a studio or rehearsal space for a group of prospects and donors and allow them to witness a rehearsal or coaching session by the school’s teachers and students. This really helps demonstrate to future donors what the institution does and allows them to associate specific faces with that process. It humanizes what they are funding, and in development, human relationships are essential to successful fundraising.

General cultivation events, like receptions, dinners, and galas, are important in bringing all of the prospect donors together. They give an institution an opportunity to present donors with same message about what dreams they have for the future. It also gives the people who are invited to these events the opportunity to network with others who share their same passion.>

Corporate and Foundation Giving:

In the category of foundation funding, schools of music most certainly have a unique niche. Foundations generally find the work of schools of music worthy of consideration because they are funding an entity that accomplishes two goals, education and arts enhancement. Also schools of music often host programs that help educate children or individuals who would not normally have the opportunity of experiencing an arts education.  Foundations are attracted to this kind of programming and often contribute to it. For most of the schools interviewed, foundation contributions were the second highest level of giving, following individual donations. This is also true for the non-profit sector as a whole.<

Corporate funding for schools of music is the most challenging genre of funding because it is often difficult to present a strong case to a business to give to an arts education entity. It is generally less challenging to get corporate funding or sponsorship for performing arts centers or seasons because it presents opportunities for advertising. With the education component of a school of music it is necessary to find a corporation that has a mission for education or an interest in sustaining the performing arts.

Annual Funds:

As with any institution of higher learning, it is generally quite easy to get alumni to contribute to their alma mater if they had a positive and enriching experience during their time at school.  Of the schools that I interviewed all of them said that this was a great part of their success with their alumni. Certain members that I interviewed, that had experience with other institutions of higher learning, said that their failure in alumni fundraising came from the spirit of independence and sometimes disdain that was cultivated by the culture of the school. In long term planning and vision setting, it is important to discover ways of cultivating a spirit of appreciation and respect for the institution. There are many examples of success in this realm, including my alma mater, Furman University.  Alumni are the strongest pool for an annual fund. Other major sources of annual giving come from parents of the alumni. Both groups of individuals must have a strong amicable relationship with the institution.

What I suggest:

Fundraising for schools of music is a unique experience compared to other types of fundraising, but the fundamental approach does not differ from most successful fundraising.  Best fundraising practices work wherever they are applied.  The four schools that I interviewed are representations of the best fundraising in schools of music. They are a testament to what savvy managers can accomplish when successful principles are applied. The unfortunate truth about the world of higher education music programs is that fundraising is not always as successful, and therefore programs, facilities, and reputations suffer. Here are some suggestions based on the principles of fundraising learned through this project and my program that might help a department needing more support from fundraised dollars.

If you are a development officer for a conservatory or a university, it is important, no matter what the structure of your music program, to develop individual relationships with as many board members as possible. They are responsible for the success of your program. They must be informed and educated through personal exposure, of the needs of your program and of opportunities for future projects that will set you apart from competitors. Board members will also help you pull future donors, and board members, into the fold of your organization; they help find more people who are passionate about your mission.  Board members are also important when it comes to the cultivation process. If you have an event and you are able to introduce a prospect to a board member, the prospect feels important and the board member will be able to share their passion for the organization. This relationship building creates a stronger case for the prospect to give to your organization.

Keeping relationships alive with past donors and friends of the institution into the present is very important, even if they are no longer prospects. Two of the four schools interviewed said that this was directly connected to their success. Past donors know people and organizations and they are often the link to future people and organizations that will help your school. Past board members are also very valuable friends because they once were the fiduciary of your organization and generally want to continue helping you in being successful. It is important to constantly maintain the network of board members, former board members, donors, past donors, prospects, friends, and volunteers not only for monetary support, but for all the valuable support that can come from donated time, goods, and general morale. 

In a world that is based on creative talent, it is vital that your organization also reflects that same level of talent in being innovative and creative with all aspects of fundraising. New events that do not look familiar to your prospects or your donors are important, especial in New York where most donors get hundreds of invitations every year. Fun events do not turn away donors; they are more likely to attend them if they look interesting. An idea that came from my advisor, Dr. Claire Gaudiani, was to hold an event that honored Mozart’s birthday (or whichever composer suits your needs). Instead of presenting something familiar, like a concert and a reception, actually host a party that reflects the personality of the honoree. Mozart came to mind first because of his period and personality; both present opportunities for innovative activities. For example, it would be interesting to have costumes from your opera or drama department for invitees to see and wear. Having props available for the guests to use for a costume party would be a creative and fun way to make people feel connected to the students.

While considering possible events or ideas, always make sure the events reflect the heart of the true mission of the school. No matter what type of cultivation event a university produces, it is important to always show the core part of what the school is committed to, even if the event is to promote a different program. For example, when the interviewed school presented the hedge fund prospects with their program that reached out to underprivileged children, they also arranged for the conservatory students to give a performance. The core mission of the organization is the most important thing to protect, promote, and preserve. It should be the guiding principle for all the decisions made about the school you represent.

As declared by all the schools interviewed, the most important base for the success of fundraising at any higher education institution is to create loyal and committed alumni. If students who attended the music program feel in no way obligated to give back to the institution that helped them to their success, the future of the institution will suffer. In order to accomplish this goal, one of the schools interviewed actually produced a program that teaches conservatory students about fundraising. They bring in successful fundraisers in the arts field and involve students in their own fundraising strategies. The students walk away after graduation with a loyalty to the school, a knowledge about giving, and a practical skill. This also helps future generations keep the art of music alive by helping fund it. The experience of a student and the attitude of the institution are very important to the success of any program of higher learning.

It is important that the image the institution presents to the public be consistent in fundraising, communications, advertising, public relations, and marketing. If at any point a prospect or donor gets a different message from two places they begin to doubt the integrity of the organization. One interviewee actually combined all the departments above into one department to make sure that communication was very clear and consistent across the board.  The organization cannot be represented from many individual perspectives; the message must be the same throughout.

Stewardship is absolutely essential to successful fundraising. Not acknowledging a gift, however small, is the one thing that could hurt the institution the most. No matter who gave the gift and at what level, it is important to acknowledge it and say “thank you.” It is often stated in the NYU masters of fundraising management program that “your best prospect for a major gift is already in your database, you just have to find them.” These neglected donors will be giving far below their capacity and it is the development officer’s job to entice them to give more. This is impossible if he/she was offended by not receiving proper acknowledgement at a different level. It is always important to keep everyone as close to the organization as possible. Events are often nice ways of acknowledging gifts or volunteers and they allow for relationships to be maintained and created.

Egoism detracts powerfully from effective fundraising. The mission of the organization is what is important, not your own personal achievements. This is why fundraisers are not compensated by commission. It is important to turn-over your prospects to people who are in higher positions if your donors match their level. People feel comfortable with equals if their rank is higher than yours. For instance CEOs expect to be in contact with presidents. People who are giving large amounts to your school like to be in direct contact with board members or chairmen/women of the board. If the prospect can give at or above the major gifts level, they probably should be introduced to the vice president or highest executive of development.

In the case of music departments, there are many opportunities to show donors and board members what is transpiring in the school. It is important to give these opportunities to the people who are interested in what the school does. As mentioned before, many individual donors have never had any formal training in music. Exposing donors to the process of learning music and its challenges can bring them closer to your organization. For example, several major donors for All-Steinway School campaigns in the last three years have been cultivated through piano lessons taught by university professors to adult beginners. Other suggestions would be masterclasses by guest artists, chamber coaching sessions, group rehearsals like choirs, orchestras, and operas, and theory or history classes. This goes back to keeping your donors close to the mission of your organization.

The disadvantage of this study is that the schools chosen were all in the New York metropolitan area. If the institution you represent is in a different region of the country or the world, many of the things presented here will work, but some things will have to be taken within the culture and bounds of your region. Ask your donors what has worked in the past to keep them attracted to your organization. Also, ask them to what type of event they would bring a friend or colleague. They are your best resource in helping you learn what is working and what is not. This is especially applicable to mail appeals and events.

In more traditional environments, like a school of music, it is often attractive to get settled into a certain way of doing things. It is important that leaders and fundraisers stay current on what fundraising practices are working elsewhere and remain aware of what appeals to a younger generation. For example, many people will now want to be contacted electronically or they would like to donate electronically. It is important to have these options as ways of cultivating a new generation of donors.

Diversity is very important in our society today and it is becoming essential in fundraising. People are now very interested in who makes up a board, a student body, and donor circles. Foundations really look at how an organization addresses diversity of all sorts before they consider funding them. Gender equality is essential, racial diversity is desired, and socioeconomic backgrounds are becoming increasingly more and more important. On boards, age is considered a way of measuring diversity as well. Diversity is also vital when looking at prospective donors. It is important to always be seeking ways to catch the attention of various age groups, industries, gender, religion, and race. This is the only way an institution can withstand the changes of time.

Institutions cannot survive without strong leadership. People that have to make decisions for the future of the organization need to be passionate about music and they need to understand how the world is changing. Classical music should last forever, but how it is presented and how it is taught will change. Leaders need to poise themselves for these changes and be active in discovering ways to prepare for it. Also, more musicians should be development officers for these programs. A musician who was trained in a higher education music program understands intimately the needs and mechanism of a music program. There are several musicians worth pursuing that possess the personality and talent needed in a development positions. If the development officers that are raising funds for the program are within a central development office, it is vital that they listen to the music program directors. They know the daily life of the program and they know its needs best. Many professors of music have to do without the proper tools needed for a music education because of funds. They can help you decide what is essential to success of your program.

Conclusion:

Fundraising for schools or departments of music is a unique and exciting niche to study.For the people I interviewed, the challenges of having to promote the mission of classical music and education presented themselves as privileges that yielded great rewards. Matching people who are passionate about both goals to a mission is an art that can be applied with a proven science. To keep this art alive, it takes creativity and many talented people. Best fundraising practices work wherever they are applied, but it takes artistry, sensitivity, and talent to apply them to a higher education music program. I discovered many systems of success and innovative ideas through the journey of this project. In 2007, $43.32 billion dollars were contributed for the subsector of education. Through applying some of the lessons learned from great institutions like the State University of New York- Stony Brook, The Juilliard School, Manhattan School of Music, and the Yale School of Music, that same amount in total contributions could be cultivated for higher education music programs in the future.

Nichole Martini is finishing her M.S. in Philanthropy at NYU. She is a graduate of Furman University and works for Steinway and Sons.

[1] Giving USA 2008