Appendix O

12/5/17

SENATE COMMITTEE ON UNIVERSITY PLANNING

Biennial Development and Alumni Relations Report

(Informational)

Richard Bundy, III, Vice President for Development and Alumni Relations, will provide a presentation on Penn State’s current capital campaign including the rationale for the campaign, historical campaign data and the status of the current campaign.

The current campaign is comprised of three overarching imperatives and themes within those imperatives. Open Doors, Create Transformative Experiences and Impact the World are the three imperatives. These imperatives guide the fundraising efforts.

Several Matching Gift Programs are in place to Incentivize donors to make gifts for scholarships and/or programs of strategic importance to the University.  These Matching Gift Programs include:   First-time Endowed Scholarship Matching Program, Early Career Professorship, Economic Development Incentive Program, LaunchBox Endowment Program, Open Doors Scholarship Program, Graduate Scholarship Match, and the Leadership Gift Matching Program.

SENATE COMMITTEE ON UNIVERSITY PLANNING 2017-2018

  • Richard Bundy III
  • Kevin Cockroft
  • Ann Douds
  • David Gray
  • Lisa Grigley
  • Nicholas Jones
  • David Lieb
  • Hector Lopez
  • Frantisek Marko
  • Margaret Michels
  • Mary Lou Ortiz
  • Nicholas Pearson
  • Laura Pauley, Chair
  • Tom Sarabok
  • Steinn Sigurdsson, Vice-Chair
  • William Sitzabee
  • Charles Specht
  • Mary Vollero
  • Ming Wang
  • Robert Zambanini

Slide 1: Richard Bundy, III, Vice President for Development and Alumni Relations, will provide a presentation on Penn State’s current capital campaign including the rationale for the campaign, historical campaign data and the status of the current campaign. (All Text Slide)


Slide 2: Rationale for Fundraising Campaigns: Description of the many factors that positively impact the University as a result of engaging in a capital campaign. (All Text Slide)

  • Links institutional strategy to philanthropic partnerships
  • Maximizes Penn State’s impact
  • Defines fundraising priorities
  • Creates urgency and focus—timeline and public goal
  • Establishes greater accountability and ownership
  • Invests more time and resources in fundraising enterprise
  • Deepens volunteer engagement and partnerships
  • Attracts and retains development staff

Slide 3: Philanthropic Growth Over Three Campaigns: Visual diagram illustrating the upward trend in philanthropy across the previous three campaigns.

December 5, 2017, Senate Agenda, Appendix O, Slide 3

  • Campaign for Penn State: 207%
  • A Grand Destiny: 105%
  • For the Future: 96%

Slide 4: Annual Average Campaign Commitments

 

December 5, 2017, Senate Agenda, Appendix O, Slide 4

  • Campaign for Penn State: Original Projection $50 Million; Actual Raised $107.6 Million
  • A Grand Destiny: Original Projection $114.3 Million; Actual Raised $255.5 Million
  • For the Future: Original Projection $220 Million; Revised Projection $267 Million; Actual Raised $295.7 Million
  • A Greater Penn State: Original Projection $320 Million

Slide 5: Campaign Planning Task Forces (All Text Slide)

Task forces convened in advance of the current capital campaign to plan for and facilitate a successful campaign.

  • Business Practices/Campaign Counting Guidelines
  • Campaign Resources
  • Case Statement and Featured Objectives
  • Development Technology/Infrastructure
  • Endowment Standards and Gift Strategies
  • Prospect Management Protocols
  • Volunteer Engagement

Slide 6: A Greater Penn State Imperatives and Themes (All Text Slide)

The current campaign is comprised of three overarching imperatives and themes within those imperatives. Open Doors, Create Transformative Experiences and Impact the World are the three imperatives. These imperatives guide the fundraising efforts.

Open Doors

  • Undergraduate scholarship support
  • Graduate fellowship support

Create Transformative Experiences

  • Global Engagement
  • Digital Innovation
  • The Arts and Humanities

Impact the World

  • Water, Food, and Energy Security
  • Human Health
  • Economic Prosperity

Slide 7: A Greater Penn State – Open Doors (All Text Slide)

Open Doors

Private support can not only bring talented students from every background to Penn State – it can help them to graduate on time and on track to successful careers and lives. We propose to take on the obligation of making sure that each student, regardless of heritage, individual characteristics, or financial well-being, has access to a timely degree and a true Penn State experience.


Slide 8: A Greater Penn State – Create Transformative Experiences (All Text Slide)

Create Transformative Experiences

Philanthropy will provide the opportunities – in our classrooms, on our campuses, and in the larger world – that let students and faculty discover their full potential and make a difference. We must distinguish Penn State through transformative experiences that go beyond the classroom, through a global perspective, readiness for the growing digital revolution, and an even deeper commitment to the arts and humanities.


Slide 9: A Greater Penn State – Impact the World (All Text Slide)

Philanthropy provides opportunities for our students to tackle the world’s most pressing problems and solve them. Creating solutions for food, water and energy security; challenges associate with human health and well-being as well as facilitating our potential as a driver for economic development are possible through philanthropy.

Impact the World

With the visionary gifts of alumni and friends, we can tackle the world’s most pressing problems – and solve them. We propose to become the leader in food, water and energy security, ensuring that these resources are abundant, affordable, and safe; to tackle fundamental challenges associated with human health and well being; and to realize our potential as a driver for economic development, job creation, and student career success.


Slide 10: A Greater Penn State – Snapshot of Status

Diagram shows the philanthropic progress of each imperative as of September 30, 2017.December 5, 2017, Senate Agenda, Appendix O, Slide 10

 Open Doors

Goal: $500Million
Current Progress: $144.4 Million (28.9%)

Create Transformative Experiences

Goal: $225 Million
Current Progress: $67.9 Million (30.2%)

Impact the World

Goal: $475 Million
Current Progress: $155 Million (32.6%)

TOTAL FUNDRAISING PROGRESS

Goal: $1.6 Billion
Current Progress: $430 Million (26.9%)


Slide 11: Receipts – Progress to Date

Diagram shows receipts for FY’12 through September 30, 2017.

December 5, 2017, Senate Agenda, Appendix O, Slide 11

Fiscal Year to Date – July 1 through October 31

Fiscal Year 2012: $42,548,545

Fiscal Year 2013: $58,077,661

Fiscal Year 2014: $58,077,661

Fiscal Year 2015: $40,193,863

Fiscal Year 2016: $59,031,062

Fiscal Year 2017: $43,138,951

Fiscal Year 2018: $67,175,714


Slide 12: Commitments – Progress to Date

December 5, 2017, Senate Agenda, Appendix O, Slide 12

Diagram shows commitments for FY ’12 through September 30, 2017.

Fiscal Year 2012: $54,643,723

Fiscal Year 2013: $67,784,257

Fiscal Year 2014: $65,065,054

Fiscal Year 2015: $38,154,527

Fiscal Year 2016: $62,148,620

Fiscal Year 2017: $83,776,489

Fiscal Year 2018: $79,718,156


Slide 13: Matching Programs (All Text Slide)

A quote from Ken Blanchard, author; My own experience is that the more I give away, the more that comes back. This is the way life works.


Slide 14: Rationale for Matching Programs (All Text Slide)

Explanation for why Penn State will provide matching funds to donor gifts to promote student and economic development success.

1.Speed the time to degree completion for targeted Penn State student populations through creative, need-based support

2.Advance economic development initiatives throughout the Commonwealth

3.Incentivize donors to make gifts for scholarships and/or programs of strategic importance to the University


Slide 15: Matching Gift Programs (All Text Slide)

Description of the criteria for the First-time Endowed Scholarship Matching Program which is a 1:1 match. Description of the Early Career Professorship which provides a $100,000 match for a gift of $400,000. There is a limit of 30 across the University.

  • First-time Endowed Scholarship Matching Program

–1 to 1 match: donor must commit full amount of endowment minimum

–Available only to donors (individual households, corporations or foundations) creating their first undergraduate scholarship endowment

–Must require need, and follow all other existing rules and minimums for the endowment category being created (Renaissance, merit, Honors, Athletics, etc.)

  • Early Career Professorship

–$100,000 match for gift of $400,000

–Creates early career endowment for pre-tenure faculty

–Only 30 positions available university-wide


Slide 16: Matching Gift Programs Continued (All Text Slide)

  • Economic Development Incentive Program

−1 to 1 matches for economic development programs related to Invent Penn State

−Not limited to endowment gifts

−Specific, approved programs for each unit

  • LaunchBox Endowment Program

−$1 million per campus LaunchBox in matching funds

−1 to 1 match

−LaunchBox can be named with single individual or corporate gift of $1 million

−Gifts from multiple donors to an endowment supporting the general operating fund for each individual LaunchBox will be matched when fund reaches $1 million; LaunchBox naming not available in this instance.


Slide 17: Matching Gift Programs Continued (All Text Slide)

  • Open Doors Scholarship Program

–2 to 1 match: minimum $30,000 donor commitment triggers $60,000 Penn State match

–Endowments to support featured undergraduate pilot programs (PaSSS, STEP, raise.me, Complete Penn State, and Smart Track)

–One year only:  July 1, 2017, through June 30, 2018, or until pilots are fully funded

  • Graduate Scholarship Match

–Supports graduate and professional students at graduate scholarship level ($250,000) and above

–1 to 1 match: minimum $125,000 donor commitment and $125,000
Penn State match

–One year only: July 1, 2017, through June 30, 2018 or until matching funds are spent (limited pool of funds)


Slide 18: Matching Gift Programs Continued (All Text Slide)

  • Leadership Gift Matching Program

–1 to 1 match on minimum donor commitment of $1 million

–Must require need, and follow all other existing rules and minimums for the endowment category being created (Renaissance, merit, Honors, Athletics, etc.)

–Match will be on the pledged endowment principal and is made following the signing of guidelines to effectively early activate the endowment


Slide 19: Matching Programs Progress/Impact

Matching ProgramNumber
of Funds
Established
Closed GiftsProposals
Outstanding
Value
Outstanding
Open Doors Scholarship28$7,140,69992$7,100,000
First-time Scholarship37$5,797,94028$2,900,000
Graduate Matching Scholarship3$1,450,00013$3,000,000

Diagram illustrating the philanthropic progress through September 30, 2017 for the Open Doors Scholarship program, the First-Time Scholarship program and the Graduate Matching Scholarship program.


Slide 20: Campaign Executive Committee (All Text Slide)

Chair:  Rick Sokolov

Vice Chairs:  Rob Fenza and Jim Ingram

Members:

  • Richard Bard
  • Lee Beard
  • James Broadhurst
  • Rick Dandrea
  • Bryon Deysher
  • Liz Fetter
  • Naran Gursahaney
  • Edward Hintz
  • Helen Hintz
  • William Jaffe
  • Martha Jordan
  • Gregory Lucier
  • J. Roger Moyer
  • Arthur Nagle
  • Robert Poole
  • Thomas Sharbaugh
  • Richard Struthers
  • Peter Tombros

Slide 21: Rick Sokolov Profile

Rick Sokolov, Greater Penn State Campaign Chair

Brief biography for Rick Sokolov, the campaign chair.

  • Rick is a 1971 Liberal Arts alum, and President, COO, and member of the Board of Directors of Simon Property Group.
  • Rick chaired the Intercollegiate Athletic campaign committee of For the Future: The Campaign for Penn State Students and serves on the Smeal Real Estate Advisory Board.
  • Rick was a recipient of Penn State’s Alumni Fellow Award in 2000.
  • Rick and his wife Susan are members of the President’s Club, the Atherton Society, and the Laurel Circle of the Mount Nittany Society.
  • He resides in Naples, Florida and Youngstown, Ohio with his wife Susan.

Slide 22: Thank You – Opportunity to ask questions

December 5, 2017, Senate Agenda, Appendix O, Slide 22