Programs Update: (submitted by Brad Eland)

  • March proved to be a very busy month around the country thanks to the success of the men’s basketball team. We set several records for watch parties during March Madness culminating with over 70 official watch parties for the Duke and Villanova games. Nick Kallail, Danny Woods, and Ally Stanton all hit the road to host watch parties at various networks and while the season ended one game short of where we all wanted, we certainly took advantage to spread crimson and blue far and wide.
  • April is a very busy month that kicks off with Gold Medal Club Reunion Weekend. This weekend for Jayhawks who have surpassed 50 years since walking down the Hill is always fun for us with a mix of familiar faces and many new ones that have not made it back to campus in many decades. Campus tours always bring many comments about how things have changed mixed with many stories that bring back fond memories. This year, the class of 1968 will be welcomed to the Gold Medal Club at a special event featuring Chancellor Girod.
  • Our Student Programs team also has a new event planned for April with Big Jay’s Recess on April 5. This evening of throwback games, free food, and special prizes is put on in partnership with KU’s Office of Multicultural Affairs and we anticipate many students will come out for some fun before the end of the school year sneaks up on all of us.
  • We hope that many of you can join us on Friday, April 13 at Murfin Stables in Wichita for the 2018 Wichita Jayhawk Roundup. Danielle Hoover’s great team of volunteers has a fun evening in store with a “Game of Hawks” theme that will remind many fans of HBO’s Game of Thrones elaborate sets. We’ve enhanced our partnership with KU Athletics and the Williams Education Fund to enhance our auction offerings this year and hope to see an enthusiastic crowd welcome Chancellor Girod to his first Roundup.
  • Finally, we will cap our busy April with the 2018 Rock Chalk Ball at Bartle Hall in downtown Kansas City. This year’s theme is “Crimson and Blue, Forever KU” and is will serve as the official conclusion of a full week of inauguration activities for Chancellor Girod. Chancellor Girod and his wife Susan will serve has honorary event chairs and Curtis Marsh, j’92, Director of KU Info and the DeBruce Center, will serve as the emcee. The Patrick Lentz Band is one of KC’s premier cover bands to bring home the night after what we anticipate will be another successful auction, program, and dinner. Please contact Heather Hawkins if you have not secured your tickets yet to cap our weekend of board meetings.

Finance Update: (submitted by Dwight Parman

The accompanying financial statements present financial results as of and for the nine months ending March 31, 2018. The statements reflect a modified cash-basis loss from operations of $114,459 compared to a budgeted loss of $1,773 before capital expenditures – a negative budget variance of $112,686. Year-to-date capital expenditures of $4,173 compare favorably to year-to-date budgeted capital expenditures of $37,500. Total net assets increased by $1,853,107 from June 30, 2017despite the loss from operations due to unrealized gains on our long-term investments managed by the KU Endowment Association and some large restricted gifts.

The negative operating budget variance of $112,686 reflects the following factors:

REVENUES [negative variance of $99,491]:

  • Membership dues are short ofan admittedly ambitious FY18 goal by $223k and from last year by $148k. Additional caveat: Recall that we budget and report dues revenue on a cash basis for internal purposes, so a portion of this revenue will be deferred at year-end for external reporting purposes.
  • Sales and commissions are $17k ahead of budget, mostly due to Business Development efforts (combination of Advertising and Corporate Sponsorships).
  • Unrestricted contributions (principally Presidents Club) continue to exceed budget ($58k) and last year ($74k).
  • Fundraising Events shows an $11k loss for the year-to-date, but this will reverse in April. As a reminder, our two fund-raising events for the year, the Rock Chalk Ball and Jayhawk Roundup, were both scheduled for April 2018.

EXPENSES [negative variance of $13,195]:

Expenses are under budget in many areas, with a few negative variances. Some budget fluctuations are likely temporary and will partly or wholly reverse. Notable differences include:

  • Professional fees reflect a negative variance of $18k. This differenceis partially attributed to the unbudgeted engagement of two consultants to (1) help with developing both marketing and Jayhawk Career Network plans and (2) alumni database analysis on levels of connectedness, influence, and engagement with a goal of increased engagement levels at different life stages.
  • Postage was over budget $26k in part due to the highly successful Charlie Hustle t-shirt Member APPreciation promotion – some 5,000 t-shirts were distributed during the promotion.
  • Public relationsand travel have a combined negative budget variance of about $132k. Part of the negative variance in Public Relations occurs in Student Programming, the result of increased activity. Much of the higher Student Programming expense here is offset by corporate sponsorships associated with our restaurant partner program. A larger share of the negative variance is due to the fun, but somewhat expensive March Final Four run. We traditionally budget for a good run during post-season basketball, but it’s never enough for a trip to the Final Four. An estimate has been accrued into the year-to-date financial statements for all post-season tournament expenses, including an anticipated cost-sharing reimbursement from Athletics.

FY19 BUDGET ASSUMPTIONS

One of the Strategic Plan linchpins is to enhance and build resources, creating future capacity to support programs and services. This continues to be particularly critical given uncertainty with credit card royalties (contract renewal in 2020); University support of records, and license plate royalties. Our objective for the FY19 budget was to focus on areas of strategic priority, while simultaneously increasing the cash contribution to our bottom line from $150k to $250k before one-time expenses for consulting including a third-party alumni survey. The proposed FY19 operating budget of $6.22 million reflects a 5.92% increase:

REVENUES:

  • 11.13% ($156.5k) decrease in Membership Dues. This is a 3-year moving average of where we THINK we will end up in FY18, FY17 and FY16. This is still a challenge because the FY18 projection is LESS than the FY19 budget value.
  • Royalties were increased, due to guaranteed contractual payments, an anticipated increase in the Alumni Insurance Program, and continued positive license plate revenues.
  • Overall Sales were increased, largely due projected growth in Advertising and Corporate Sponsorships.
  • Investment income increases are consistent with recent endowment gifts and an annual inflation adjustment per KU Endowment’s “Constant Growth” distribution policy (benchmark is CPI-U).
  • Contributions increased overall:
  • $0k change in Fundraising events (RCB $120k and Roundup $60 will be reevaluated in coming year – no changes for now)
  • $107k increase in temporarily restricted gifts. This is in support of Jayhawk Career network and includes a $35k allocation from Crowell Book Award to support the mentoring platform. It also includesthe “earning” of new JCN restricted gifts already in hand (e.g. through meeting the restricted gifts’ purpose)
  • $106k increase in PC/Unrestricted Giving to $789k. This reflects approximately $70k increase over where we think FY18 will finish.

EXPENSES:

  • Salaries and Benefits include modest performance and market increases. The projected overall increase is closer to 6% because the FY19 forecast includes (1) the Jayhawk Career Network position added in FY18 (subsidized by a temporarily restricted gift) and (2) other adjustments for market and promotions/new responsibilities occurring in FY18.
  • Professional Fees & Freelance and Professional Fees – Internet have both increased to incorporate consulting on the Jayhawk Career Network, development of a strategic growth/marketing plan, database analysis, and an alumni survey.

Records (Submitted by Stefanie Shackelford and Bill Green):

  • Entered 11,107biographical and membership updates related to 4,669 people during the monthof March; update sources include changes submitted by alumni through the alumni phone app and iModules online directory.
  • Loaded in the May candidates and will load in their gift membership within the next couple of weeks.
  • Compiling data for May membership promotions.
  • Generated summaries of results for spring membership promotions

Public Affairs and Kansas Alumni (Submitted by Jennifer Sanner):

  • Jayhawks for Higher Education

The Legislature’s first adjournment is this Friday, April 6, and debate over restoration of the $24 million to the Regents universities (including $7.4 million for KU) will not occur until lawmakers return to Topeka after a three-week break to consider and pass the overall state budget.

Looming over the budget debate is the recommendation of a consultant’s peer-reviewed study released March 16 that called for as much as $2 billion over the next several years to adequately fund K-12 education. Last October, the Kansas Supreme Court ruled the current funding formula unconstitutional and set a deadline of April 30 for the Legislature to submit a new plan.

Before the report was released, both House and Senate leaders had expressed support for all or partial restoration of higher education funding, but clearly the K-12 issue must be resolved first. We will not mobilize our JHE volunteers until the wrap-up session begins.

• Kansas Alumni magazine

The next magazine will celebrate three milestones for the University: KU Debate’s sixth national championship and the Jayhawks’ spectacular run to KU’s 15th Final Four. We also will highlight Chancellor Doug Girod’s inauguration festivities, which will conclude with the Rock Chalk Ball April 28.

• Other projects

Now that Jayhawk Roundup and the Ball are fast approaching, we are in the thick of final work on décor; signage, programs and other printed pieces; and the program scripts and slides/video for each event. In the meantime, we will welcome the Class of 1968 and Gold Medal Club members for reunions this weekend.

We’re also creating new publication—a commemorative booklet for nearly 3,500 Kansas Honor Scholars, including a complete roster of all recognized high school seniors and photos from last fall’s 12 regional events.

Adams Alumni Center (Submitted by Bryan Greve):

April 2018

Greetings!

We experienced a relatively quiet Spring Break, nevertheless we maintained office hours and welcomed members and guests to visit, relax, and enjoy their HOME ON THE Hill!

With that pause behind us, we are entering one of our busiest seasons of the year!

We are currently $4K ahead in sales over expenses compared to last year; however, sales compared to budget are lagging. We are confident that we will get to budget goals through this homestretch!

This week we are looking forward to hosting events that run the generational gamut. Our Student Alumni Network, and our 50 year reunion will bring together Jayhawks of all ages. It is the intersection of Jayhawks connecting here, in a central home, which makes our Center so very special. Please enjoy reading about some of our upcoming events.

Mocktails and Mingle brings countless students into the building to network with various professionals in their field. Students who otherwise may never have visited the Center, become acquainted with their Home on the Hill! This occasion also gives our student workers “Blue Shirts” the opportunity to practice “bartending,” without the alcohol. Oftentimes we can keep a Blue Shirt working here during their entire college tenure. Along the way, they have an opportunity to advance and learn new life skills to complement their formal class training.

We’ll also be gearing up Thursday for Big Jay’s Recess.

SAN, Office of Multicultural Affairs and the Student Involvement and Leadership center are hosting a night of throwback video games, putt-putt golf, inflatables and more, all here at the Adams.

The Gold Medal Club welcomes alumni on their 50th anniversary of graduation. Each year in April, the Club hosts a Gold Medal luncheon during whichthey elect the slate of new officers and recognize class members who have not yet received their gold pin. Several other university departments will also be hosting reunions, graduations, retirements and Advisory Boards during the next two months.

Please check out and “like” our Facebook page.

The Adams Center, and Banquet Services will continue to find new ways to support and accommodate our mission.

Membership and Business Development (Submitted by Teri Harris):

Membership:

As a follow-up to our preliminary report of the results from our 14 straight Big 12 Conference Championship promotion, we wanted to provide the final numbers and comparison for your reference. The detailed comparison report is included as an attachment in the April Board Update email from Heath. We were pleased with the results of this promotion with 226 or 44% of the 517 members coming from our lapsed, never or comp member groups.

Promotion / Total # of Members / Revenue / Revenue w/Life Installments
14-Hour (3/18) / 517 / $40,892 / $75,402
13-Hour (3/17) / 356 / $28,745 / $49,750
KU150 (9/16) / 593 / $65,430 / $114,124
12-Hour (3/16) / 445 / $46,321 / $90,289

Although we generated nearly $41,000 from the 14-hour sale, we are still lagging behind our budgeted YTD goal. We appreciate the board’s support to conduct the Commencement Anniversary promotion for the month of May as an opportunity to test value proposition messages, as well as generate revenue before the end of the fiscal year.

Membership Comparison Report: Our FY18 Dues Revenue Goal is $1,406,500.

Membership Dues / FY18 (thru 3/31) / FY17 (thru 3/31)
YTD Budget / $1,101,000 / $1,063,000
YTD Actual / $877,460 / $1,029,101
Variance / ($223,540) / ($33,899)

FY18 April goal $100,000

FY18 May goal $100,000

Mbr Type / 3/31/18 / 3/31/17 / (+/-)
Annual / 9,960 / 10,717 / (757)/(5%)***
JHS / 2,501 / 2,676 / (175)/(6%)***
Life / 19,665 / 19,477 / 188/.6%
Life/JHS / 1,547 / 1,481 / 66/6%
Gift/Comp / 8,860** / 6,740 / 2,120/4%
SAN / 3,668 / 1,811 / 1,811/102%
Future J / 77* / 1,098 / (1,021)/(92%)
Total / 46,278 / 44,000 / 2,278/5%

*Based on the strategic decision to discontinue the Future Jayhawks program, we are no longer selling/renewing memberships so this number will continue to decrease each month as memberships expire.

**Increase is based on the decision to load the summer and December graduates’ gift memberships at the time they graduate rather than waiting until the following May. This will allow us to engage with recent graduates much sooner and encourage them to take advantage of benefits, communications and network activities.

***We are conducting an analysis of our decline in Annual and JHS members and will review the details with the Revenue Development Committee as we continue to refine our value proposition.

Flying Jayhawks:

We finalized our 2019 trip selections with the individual tour operators. We will offer 34 trips in 2019 vs. 29 in 2018. Our passenger numbers for FY18 trips are essentially complete for this fiscal year since these are for travel up through June 30, 2018. We are off to a strong start with trip sales that will appear in FY19 based on trips that happen after July 1, 2018.

Flying Jayhawks Comparison / FY19 as of 4/2/18 / FY18 / FY17 / FY16 / FY15 / FY14
Number of Passengers / 154 / 321 / 247 / 293 / 214 / 271

Business Development:

As mentioned in our March update, we are concentrating our efforts on securing cash and in-kind sponsorships for the Rock Chalk Ball. To date we have the following companies on board:

  • Title Sponsor: Tickets For Less
  • Presenting Sponsors: Boulevard Brewery, Charlie Hustle and Gohagan
  • Oread Benefactors: Hy-Vee (6th Street, Lawrence, KS) and KU Athletics
  • Rock Chalk Benefactors: Aramark and Harvest Graphics

We also completed our Post-Season sponsorship with the Crown Toyota Jayhawk vehicle, as well as secured funding with a couple of smaller marketing investments associated with our events in Wichita and Omaha.

Marketing:

Our internal team is continuing work on the development of our comprehensive, association-wide strategic growth/marketing plan. We are working on our current value proposition matrix, life-stage segments, survey questions to understand what motivates alumni for membership and engagement, and develop an understanding of lifetime value. We will provide a progress report at the Spring Board Meeting.

Strategic Communications & Digital Media (submitted by David Johnston):

Market Research

Working with alumni consultant Mark Mears, we’ve created a scope document to aid us in conversations with vendors specializing in higher education and advancement research projects. Mark has already had introductory conversations with several vendors and peer associations that have taken on similar projects, so we will begin soliciting more formal proposals and estimates over the next 2 to 4 weeks to help guide our growth strategy.

Kansas Honor Scholars commemorative publication

Work has begun on a year-in-review publication commemorating the first year of the new Kansas Honor Scholars program. The commemorative publication will feature photos and highlights from all twelve programs, including a comprehensive list of all honorees, and it will be available for families and schools to purchase in May.

KU lost, no foolin’

April Fool’s Day has been a highlight for the Association, which has put together a special edition of our member enews with fun, fake stories to the delight of Association members. This year, however, the faux holiday fell on Easter Sunday, which happened to be one day following a tough loss to Villanova in the Final Four. Our best laid plans were set aside, knowing that faithful Jayhawks would not be in the mood for jokes. For those who’ve come to count on the annual prank, our planned stories were published along with a requisite disclaimer, which you can see here:

Broadcast email numbers

With all of our alumni activity during March Madness, our digital team managed 110 email jobs promoting national network watch parties from coast to coast, post-season pep-rally details and university news and events–all of which yielded an average open rate of 25%, higher than our industry’s average. Our broadcast emails remain highly-valued and well-read among all constituents–alumni and especially students. Emails are also increasingly valued by our partners who ride along with their message and logo in the form of digital advertising.