mm 0 0 0 0 4ALLP SLUE FOR GREET / It takes finesse, strategy and some luck to bring in the University's biggest donors. And Jerry May knows just how to do it. By Peter Shahin , May has continued to work e same donors that he began i a quarter-century ago. All een selling the same product: >f Michigan. entails a buildingscholarship And those were the good days. Today, state appropriations make up only 17 percent of the general budget - the money used to pay most instructors, cut the grass and keep the lights on. Over the course of the last decade, the state's appropriation for the Ann Arbor campus has fallen from about $363 mil- lion in fiscal year 2002-2003 to $279,108,000 in fiscal 2013-2014 in nominal dollars. In real terms, if the 2002-2003 appropriation had grown only at the rate of the Consumer Price in the The manwho makes the money The man who leads the University's devel- opment activities is no stranger to a chal- lenge. May began his career in fundraising in 1979 - when the University's fundraising staffwas on half of the top floor of the Student Activities Building. Today, there are 550 people working in development at all three University cam- puses and across the nation. Nearly 175 of those people are full "development officers" - those that go out and engage with donors directly. May oversees all of them. May graduated with an English degree from Michigan's HopeCollegebefore earningamas- ter's degree from the University ofVermont.In his mid 20s, he served asa dean of students for New England College before applying to the University for a doctorate in Higher Educa- tion Administration. While he was wrapping up his studies, a job in the University's nascent development operation opened up. Since his wife was already workingin student affairs,he decided to try something different. It worked. "It was absolutely the perfect fit," May said. "I tend to remember names, I tend to remem- ber people, I love meeting strangers, I love relationshipbuilding, and I'mnot afraid to sell. I'm not embarrassed sbout asking people. The vast majority - most people are. Not every- body likes to ask people to give away money." May said when he began in the fall of 1979, the University's endowment was less than $150 million and development raised between $15 to 30 million per year - a far cry from the hundreds of millions raised annu- ally in the last decade. According to Judith Malcolm, senior director of the University's executive communications, last year the Uni- versity brought in $357 million in cash dona- tions, and many millions more in pledges to be paid over coming years. Historically, private schools have a stron- ger tradition in development than public institutions, which usually benefitted from strong and growing state support. Faced with economic hardship and budget reprioritiza- tions, many states have gradually reduced the amount they spend funding flagship state institutions, often reallocating funds to tech- nical schools and community colleges. The University saw a major revamp in development practices in the early '80s under the stewardship of Jon Cosovich, a vice president for development recruited from Stanford University. At his first meeting with the staff, Coso- vich laid out his plans for the University's development: focus on transformational gifts, not incremental ones. At the time, that was $100,000 or above. "The room was silent, everybody went '$100,000?'" May said. "You know, at that point, it was scary to think that was all you sty di- on- arch, innovauve teacn- udent aid will enable it r-education fundraising ad. parties, receptions and th donors, it's up to May University thrives. e need, the need rersity President James I a report titled, "The ite Support of the Uni- At the time, the state's rsity had dropped from he state general fund in were going to work on instead of like $5,000." Building a tradition of giving back is one of May's long-termgoals.Eventhough the Univer- sity has the seventh largest endowment in the nation, which thisyear totaled $8.4billion, the University's Office of Public Affairs estimated that it ranked 101st on a per-studentbasis. As an example, in 2011-2012, Harvard's $30 billion endowment amounted to about $1.43 million per student. In the same period, the University's endowment was valued at about $7.6 billion - or $174,000 per student. "Endowment gifts have a benefit in per- petuity versus an expendable gift," said Tim Slottow, the University's chief financial officer. "Which is wonderful - and we desperately need expendable gifts for professorships and financial aid -but an endowment actually pro- vides support in perpetuity, and he gets that." The goals for the University's next fund- raising campaign, Victors for Michigan, are expansive. Finding support for research and progressive learning techniques are at the top of the list. A billion dollars for student aid, a billion dollars for the hospital system and $400 million for the Ross School of Busi- ness are among the more targeted goals. Looming behind it all is the endowment - a gift that keeps on giving. The Michigan Dif- ference campaign raised between $925-940 million for the endowment. Victors for Michigan will be May's fourth fundraising campaign, and with a $4 billion umiversiy's secon-mrges caaer ,wa me cre- ation of a budget model capable of weathering the enormous decline in state appropriations and a national recession - some considerable tuition increases notwithstanding. However, with the budget increasingly squeezed to maintain only what already existed, the flex- ibility to invest in new projects and endeavors became increasingly difficult. Out of the crucible of year-over-year declines in state support, the need for external and voluntary support rapidly became more than a luxury - it was a necessity. Though a refocusing on development was under- way well before the drastic cuts began in the 2000s, it gained anewsense of urgency. goal, perhaps his greatest challenge. Blue's aura Working with potential donors i strategy, part finesse. It's no Machiavellian machinatio development officers will routinely me strategize about how to best preseni case to would-be benefactors and what of authorities can help their case. Picki right tactic, though, is just part of the jc One of the most high-level duties of opment officers is to generate a positiv ing about the University. The most of target is alumni - but unaffiliated "fr of the University also make up a sign portion of annual donations. Spon events across the country to spread th sage about research, work and progra the University is part of the trick. As an example, May said, a hypotl event sponsored by the University's diovascular Center that attracts a var alumni probably won't motivate gradu the law school to give to the CVC, but it a glow or aura around the Universit whole. That can come in handy when ti School is looking for donations down th M(/ In Dude Bleak versil supp, [I +c .s