Chapter 05: How Donations are Made to MD Anderson –In the Past and Today
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Description
Mr. Mulvey provides an overview of mechanisms used to solicit funds to MD Anderson in the past and today. He notes that donations have increased from about $12,000 annually in the eighties to $130,000 - $140,000 per year. He discusses how the Development Office establishes trust and credibility with donors and explains mechanisms for making appeals: the direct mail program, the acquisition program, the planned giving program. He talks about different populations that Development approaches and explains the restrictions that donors often place on their gifts. He explains what makes MD Anderson unique among health institutions.
Identifier
MulveyP_02_20150519_C05
Publication Date
5-19-2015
City
Houston, Texas
Interview Session
Topics Covered
The University of Texas MD Anderson Cancer Center - Building the Institution; MD Anderson History On Philanthropy and Volunteerism; Donations, Gifts, Contributions; Professional Practice; MD Anderson History; Building/Transforming the Institution; Growth and/or Change; Discovery and Success; The Business of MD Anderson; The MD Anderson Brand, Reputation; This is MD Anderson
Transcript
Tacey A. Rosolowski, PhD:
All right, all right, our counter is moving. It is two o’clock on May 19th, 2015. I’m Tacey Ann Rosolowski, and today I’m in the Office of Development in the Fannin/Holcombe Building for my second session with Mr.
Patrick Mulvey:
. So, thanks very much for agreeing to speak with me again.
Patrick Mulvey:
You’re welcome.
Tacey A. Rosolowski, PhD:
And, you know, I was thinking a lot after our last session together about something you said about, kind of, the craft of development work, which is establishing a connection with someone on the basis of, kind of, what’s important to them. You know, how to involve them in the mission of MD Anderson, which is something that’s very profound, and which touches on a lot of really basic values about caring and the need for discovery. I mean, all of those good things. And, for me, who doesn’t know very much about development work, and a great many people who are going to be listening to this interview who aren’t real familiar with that, it makes sense to me, or I kind of understand how that connection might be made with really big donors. When you think of philanthropists you think of people who are very wealthy who are endowing buildings and providing large sources of funds for an institution to do things. But one of the things I was curious about is, What about all the other folks? How do we—how do you and your office reach out to a very wide range of individuals, to appeal to them to get involved with MD Anderson?
Patrick Mulvey:
Well, like you and I mentioned last time we met, Anderson is fortunate to receive one hundred and thirty or forty thousand gifts a year.
Tacey A. Rosolowski, PhD:
Wow.
Patrick Mulvey:
And that’s many, many individuals who are investing, at whatever level they can, in the mission of this institution to end cancer. And one of the mantras that we have here in our office is that we should never have a jaded view of a size of gift, because every gift is important to this institution. And I would say to anyone—and have, publicly, in speeches and things like that—that sometimes a twenty-five dollar gift from an individual may be a greater sacrifice than a $25 million gift from another individual. So numbers are always relative. But I think the significance of this is that the numbers of individuals who choose to give of their resources freely to support the mission of this institution, it’s just staggering. It’s just—it’s awe-inspiring when you begin to think about it. And so, each of those individuals has a story to tell of their own, as to why they’ve chosen to pull out the checkbook or their credit card or their wallet to contribute to this institution, at whatever level they’re capable and most comfortable in doing. And we should—we should be always thankful for each and every one of those gifts. And so, we should recognize those individuals in appropriate manners. Thank them, at whatever level we can. And to thank them as many times as we can. And then, also, we should feed back to them information on how those gifts were used. And we do that through the—through a number of means. But from the group—the audience that you’re talking about now, you know, many of these individuals give through our direct-mail program, and they’ll give five dollars or ten dollars or twenty-five dollars, or whatever the number might be. And we make sure that, in addition to the thank-you letters and welcome packages and things of that sort that they’re gonna receive, that every August we send to them a letter giving them examples of how those unrestricted dollars were used at this institution. So I think that that’s a donor right, to know that. And I think that it’s an obligation on the institution’s part to try to give back to those individuals as much information as we can, on how we utilize those gifts.
Tacey A. Rosolowski, PhD:
Now, you mentioned that there are a hundred and thirty to a hundred and forty thousand gifts per years. How—what were the numbers when you came to the Development Office in the ‘80s?
Patrick Mulvey:
You know, there was probably about 12,000 gifts—
Tacey A. Rosolowski, PhD:
Wow.
Patrick Mulvey:
—back in the ‘80s, something like that. I’m stretching on my memory, but—
Tacey A. Rosolowski, PhD:
[inaudible].
Patrick Mulvey:
—you know, eight to ten to twelve thousand gifts raising, you know, $8-10 million, perhaps. And we’ve been fortunate to be able to grow that number over the years.
Tacey A. Rosolowski, PhD:
And the strategies for making that grow? I mean, some of it, obviously, has been that working with high-dollar—people who are capable of high-dollar donations.
Patrick Mulvey:
Mm-hmm.
Tacey A. Rosolowski, PhD:
But what about expanding that message? The direct mail, for example—when did—was that instituted?
Patrick Mulvey:
We started that program in the late ‘80s on a limited basis, small basis. And we’ve grown—we grew that through just three years ago to about three million pieces a year, that would raise anywhere from—depending on the year—$8-10 million a year, versus the $300,000 or $400,000 a year back in the ‘80s. And then, in our current business plan, we have intent to actually increase that mailing from three million pieces a year to twenty-five million pieces a year, over about a five-year period.
Tacey A. Rosolowski, PhD:
Now how do you identify the individuals who receive that mail?
Patrick Mulvey:
Well, there’s two—there’s two segments to that direct-mail program. One is for people who are current donors to the institution. Now, we will mail them a closed-face envelope letter that’s different from an acquisition piece, and it will give a little bit more information. So it’s more of a high-end type of piece. And so, there’s probably 700,000 to 900,000 of those individuals that will get those kind of letters, maybe four to five times a year. And then there’s an acquisition part of a direct-mail program. Those names are individuals who have never given to the institution before, whose names we acquire through brokered lists. And we’ve done this long enough to know what kind of lists work for us. And those examples might be Texas Monthly magazine. It might be Better Homes and Gardens. Might be The Economist, and other sources of brokered lists, that then we—then we’re able to mail to on a one- or a multiple-time basis. And then, out of those mailings, if you look nationally, if you get a one-percent return on an acquisition program, you’re doing really well. And if you’re able to do an acquisition program that costs less than a dollar to raise a dollar, that’s even better. And then, of course, then the other program I spoke about, there’s a much greater return on those that have already given to MD Anderson. But the real value in a direct-mail program is not only the unrestricted monies that you raise today, but it’s the long-term value of those individuals who become your donors. And, over time, you might find, in a ten-year period, 1,500 or 2,000 or 3,000 of those individuals who were acquired ten years ago are still giving to the institution. Well, those are the individuals that you remember I was—talked about meeting, dating, become engaged, and marry. Those are the type of individuals, then, that we’re talking to differently, and we’re developing different relationships with. And they become—not all of them, but many of them become major-gift donors to the institution over time because of the relationship that you build with them. And then, eventually, many of those people will leave you in their estate plans. And so, it’s that art and that science. And so, again, as—referring back to last time we visited, you know, there’s a number of ways that you meet people to get them to become friends of the institution at the level of investing in the institution through their contributions. And the direct-mail program is one of those where you meet new friends. Special events is another way where you meet new friends. Referrals from our Board of Visitors is another way. And on and on. And then, of course, the patients that come to MD Anderson. Those individuals have been directly touched by this institution, and many, many, many of them want to give back. They want to give back because this money—this resource that they have—may be really the only tool that they have to fight that disease. Because of the rest of it is in the hands of the good doctors and the researchers at the institution. But they do have a tool to fight that disease, and it’s the money that they contribute to support those individuals who do the research. And that translates into the care that they receive.
Tacey A. Rosolowski, PhD:
Now you mentioned the late ‘80s for the direct-mail program. When did the Development Office begin to look at patients, for example, as a significant possible source of donations?
Patrick Mulvey:
Well, I think patients themselves have looked at themselves as major resources for—to be prospects and donors. And it’s just a natural outflow of individuals who are grateful for the treatment that they received here. And so, many times, they raise their own hand, which we’re thankful for in that regard.
Tacey A. Rosolowski, PhD:
You mentioned last time that—talking to the faculty, and working with the faculty—
Patrick Mulvey:
Right, right, right.
Tacey A. Rosolowski, PhD:
—they’ve been approached by patients.
Patrick Mulvey:
And so, faculty will identify those individuals. Individuals will identify themselves to the faculty. And so forth. So it’s a—it’s certainly a two-way street in all of that type of activity there. But we need to pay attention to that, because that’s a—that’s a significant resource as it relates to philanthropy and other things for this institution, you know?
Tacey A. Rosolowski, PhD:
Mm-hmm. And I imagine, as the flow of patients has dramatically increased, the opportunities for that have increased as well.
Patrick Mulvey:
That’s right, that’s right.
Tacey A. Rosolowski, PhD:
Now, so, are there special materials that you would use for patients that are a little bit different? I mean, do you wait for them to raise their hand, or do you approach patients?
Patrick Mulvey:
You know, we develop cases for support for all the institutional priorities as they relate to philanthropy. And when individuals are interested in a specific disease site, you know, hopefully we have some material that we can share with them in that regard. If not, and they have an interest in Dr. Jones, we can always work with Dr. Jones to prepare whatever the prospect might need to consider, as a proposal to them. Of course, all of this is done within all HIPAA [Health Insurance Portability and Accountability Act] regulations. And any type of legality issues that there are, we stay well within the parameters of that. But we certainly want to give them avenues to give back if they want to—if they—if they so choose to do so.
Tacey A. Rosolowski, PhD:
What about working with organizations, corporations—how has that evolved over the years?
Patrick Mulvey:
Well, if you look—if you look at giving on a national level in the United States, you’re first gonna find that, of the sources of philanthropic gifts, eighty-plus percent of giving in the United States comes from individuals. So that’s where you’re gonna spend a significant amount of your time. And the way—and that’s the way that we’ve designed our programs here. Corporations and foundations may give perhaps as much as seven percent each, respectively speaking, to the total amount of money given in the United States, which is, you know, over $300 billion a year. So, certainly, that’s an important part of a program, but it’s not the major part of a program. So we certainly want to pay attention to our corporate friends, which we do. And as I mentioned to you before, all of our prospect portfolios carry all donor types. And so, we have individuals, foundations, and corporations in our donor type—in our pro—in our portfolios. And then, of course, the foundations—big and small—are certainly important to the institution, too. But where the real rubber meets the road is gonna be the individuals, and that type. So we don’t—we don’t discount corporations or foundations. They’re an important part. We place those appropriate foundations and corporations and individuals portfolios. But individuals is where the real rubber meets the road.
Tacey A. Rosolowski, PhD:
I can—last time you said America is a very giving society. And, you know, now when you tell me those numbers—about eighty percent—I mean, I can understand why. I mean, this is just kind of a side question, but do you have any insight into why it is that Americans are so willing to give freely of their funds in this way?
Patrick Mulvey:
Gosh, it goes back to—it goes back to Thanksgiving Days. [laughter] You know, it goes back to the Pilgrims. I mean, I think it’s something that’s bred into Americans, and it came here from overseas, and we brought on to it. I think it—this—when the Pilgrims came here, they were grateful and decided to give back. And I think that it’s grown ever since, and has become a fabric of our being as Americans, that they give back in that regard. You’re beginning to see that in other countries, but nothing like you see in the United States. Nothing like you see in the United States.
Tacey A. Rosolowski, PhD:
That’s interesting. What about two other—[coughs] excuse me—two other kind of mechanisms that I was thinking about. One is, tapping employees to give to MD Anderson. How did that evolve?
Patrick Mulvey:
Well, in all of my time here, we’ve only done one family campaign, if you want to call it that. And that was back in the Fulfill the Promise days, when we did a campaign back in the early 1990s. And so, we, as an institution, at least up to this point in time, have chosen not to actively pursue, in a formal program, pay—employee giving.
Tacey A. Rosolowski, PhD:
Why is that?
Patrick Mulvey:
I just think it’s just—it’s just the way Anderson is looked upon, the way that people dedicate their service to the institution. And it’s just something that they haven’t chosen to do in a formal way. That’s not to say that employees do not give. They do. They give in many, many ways, from volunteering their time, to United Way type of activities, to giving directly to the institution. I don’t have the specific statistics for you, but I do know that we have—we have a good number of individuals who give on a regular basis, and we do have a number of faculty who not only give but include MD Anderson in their estate plans. Many of them do that confidentially and anonymously, because they don’t—it makes them uncomfortable if that was public knowledge. And so, we just don’t advertise it. But we do work with them quietly, and we work with them respectfully, in whatever manner that they wish to—wish to work to give back.
Tacey A. Rosolowski, PhD:
Now you said that there was a formal appeal during the Fulfill the Promise campaign.
Patrick Mulvey:
Mm-hmm.
Tacey A. Rosolowski, PhD:
And what were the results of that?
Patrick Mulvey:
We had about thirty-five percent of the workforce at that time give. And I believe the total amount given back in those days—that was about 800,000, maybe $850,000 that was given, which I think is extraordinary given the fact that just about during that time there was about—there was layoffs of about 1,000 people during that time. And so, it was not an easy time to do a family campaign. But they came up and they donated a significant amount of money. And over a third of the employee force gave, so I think that’s significant.
Tacey A. Rosolowski, PhD:
What do you think—I mean, it might be obvious, but what do you think that says, particularly at that time, when it was a time of stress in the institution?
Patrick Mulvey:
That these people wake up every day with one thing on their mind, and that’s to come here and make life better for the patients and the families in this institution. Single-minded, single focus, making sure that we make—do it right for those people that we serve.
Tacey A. Rosolowski, PhD:
Yeah. A lot of people talk about how deeply committed they are to the institution. I hear that all the time in my interviews.
Patrick Mulvey:
There’s no question about it. No question about it. No question about it. It’s a unique institution. It’s a unique institution, and people are proud to work here, and people take their business very, very seriously.
Tacey A. Rosolowski, PhD:
What—how would you characterize what’s unique about MD Anderson?
Patrick Mulvey:
You know, think—just think about an institution that is solely dedicated to one disease. And, you know, you don’t birth babies, and you don’t fix broken ankles. I mean, every day, 20,000 people wake up and come to this institution with one common enemy, and that’s cancer. And one purpose, and that is—is to defeat this disease and to make life better for the patients and their families that come here. I mean, that—it’s—it is a—you can—you can tell somebody your purpose in life very quickly in an elevator when you have—wake up and go to that kind of place to work every day. That’s what it means to me.
Tacey A. Rosolowski, PhD:
Mm-hmm. So you take that very personally, too?
Patrick Mulvey:
Absolutely.
Tacey A. Rosolowski, PhD:
Yeah.
Patrick Mulvey:
No question about it. No question about it.
Tacey A. Rosolowski, PhD:
Tell me about the planned-giving program. When did that start?
Patrick Mulvey:
We started that program formally probably in the early ’90s. And brought a—one or two individuals in to focus on that, and to develop that. Anderson had not really focused that—focused on that type of giving at that time. But as many things—as you become better at what you do, and you become more sophisticated at what you do, you continue to strive to do things better and to expand your horizons. And that is certainly a giving vehicle for individuals that is important to people. I mean, people—you hear it every day, you know? You want to get your things in order, no matter if you’re ill with cancer or, or you’re a forty-year-old at the same time. So it’s important that you put those things in order. And many times people don’t have an opportunity to make outright contributions, because they may not be financially able. Or they are financially able to, but in your estate plan, I mean, the power of being able to give a gift through your estate to endow something that would equal your annual gift every year is magnificent. So, you know, the opportunity there presents itself to individuals, that not only want to have a lasting contribution, but then there’s other opportunities. The IRS [Internal Revenue Service] helps us, you know, in, in the tax laws on that. And people give through their estate for so many different personal reasons. But the fact of the matter is, is that this generous citizenry is going to leave institutions like MD Anderson in their estate plans. And so, we owe it to ourselves to make sure that we have—provide that service to them at whatever level we can.
Tacey A. Rosolowski, PhD:
And what are the kinds of activities, or how is their money used in the institution?
Patrick Mulvey:
Well, most people—I mean, just like right now, probably eighty to ninety percent of all gifts that MD Anderson receives are restricted by the donor to a specific purpose—maybe breast cancer research, or an endowment, or the Moon Shots Program, or what have you. So when someone leaves you in their estate, they can do the same there. And they can say, I’m leaving you x number of dollars upon my death, and it is my desire that these dollars be used for whatever it is, like that. So they can restrict a purpose through their estate plan, and many times do.
Tacey A. Rosolowski, PhD:
Hm. So I’m sure it’s all over the board, depending on—
Patrick Mulvey:
Right.
Tacey A. Rosolowski, PhD:
—on their priorities and experience.
Patrick Mulvey:
Right.
Tacey A. Rosolowski, PhD:
Like you said, every gift has a story.
Patrick Mulvey:
Absolutely.
Tacey A. Rosolowski, PhD:
Yeah.
Patrick Mulvey:
Every—every one of them does.
Tacey A. Rosolowski, PhD:
Yeah.
Patrick Mulvey:
Every one of them does.
Recommended Citation
Mulvey, Patrick and Rosolowski, Tacey A. PhD, "Chapter 05: How Donations are Made to MD Anderson –In the Past and Today" (2015). Interview Chapters. 1191.
https://openworks.mdanderson.org/mchv_interviewchapters/1191
Conditions Governing Access
Open
