ksu foundation annual report 2007
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KSU Foundation annual report 2007TRANSCRIPT
KSU Foundation Center2323 Anderson Avenue, Suite 500Manhattan, Kansas 66502-2911785-532-6266 • 800-432-1578
www.found.ksu.edu
Changing Lives
2 Kansas State University Foundation 2007 Campaign Progress & Annual Report 3
“As a fifth-generation K-Stater, I grew up understanding the value of
a K-State education. My professors, advisors, mentors and friends
have believed in my potential as a leader and have given me the
confidence to pursue my dreams.
At K-State, I have seen students who have been so inspired by the
gifts of alumni and friends that they too have decided to give back.
My experience with K-State Proud — the student philanthropic
campaign — has demonstrated that those who benefit from private
support want to pay it forward and continue the cycle of
philanthropy.
K-State teaches that it is not where you come from, but where you
are going; if you have a dream, all those around you will work to help
you achieve your goals.”
Student successEmily Besler
Major:Marketing and political science
Hometown:Evergreen, Colorado
Favorite K-State memory:Attending the K-State Proud pep rally,when the student body learned thatthey had raised more than $62,000 tohelp their fellow students.
Hobbies:Scrapbooking, watching K-Statesports, playing volleyball, spendingtime with friends
Future plans:To work in consulting with anemphasis in leadership development— eventually in a nonprofit leadershipposition.
“Helping our students succeed in their academic and professional
careers is the most rewarding experience a faculty member can have.
The Changing Lives Campaign has enhanced the opportunities for
our students and faculty to learn and advance in their professions.
Private funding has a major impact on our ability to recruit and
retain top-quality faculty to sustain our growth. Our alumni, friends
and corporate partners are helping to create future generations of
successful K-State students through their generous contributions.
It is a special privilege to be a part of the engineering and
construction education process, and I can assure our donors their
support has made a big difference in the lives of K-State students
and faculty.”
FacultydevelopmentDave Fritchen
Position:Professor and head of the Department ofArchitectural Engineering and ConstructionScience. Holds the John W. and Dorothy M.Burke Architectural Engineering Chair.
Educational background:B.S. construction science, Kansas StateUniversity, 1971; M.S. civil engineering,University of Washington, 1977
Years with K-State:14
Favorite K-State memory:Making lifelong friends, especially with my wife, Kay
Hobbies:Fishing, hunting, home improvement projects
2007 Campaign Progress & Annual Report 54 Kansas State University Foundation
6 Kansas State University Foundation 2007 Campaign Progress & Annual Report 7
The new Hal Ross Flour Mill, built and equipped entirely through
private funds, is one of a kind. The mill places K-State in a position
to deal with the changes in milling and address nutritional and health
issues. Faculty members provide current and future students the
opportunity to learn the art and science of flour milling in a highly
automated facility.
“The Hal Ross Flour Mill affords K-State students training
opportunities that weren’t possible in the mill located in
Shellenberger Hall,” said Kendall McFall, grain science instructor,
pictured with student Michael McSwain. “The new plant is equipped
with the latest in milling technology, packaged to provide a flexible
system for both teaching and research on all classes of wheat.”
New and refurbished space creates pride of place and a home for the
programs that advance scholarship and improve the capacity of
students and faculty to change lives.
Learning environmentHal Ross Flour Mill
Size:22,000 square feet, five stories,72 feet tall
Funding:$10 million, all private donations
Furnished milling equipment:Buhler Inc.
Number of major contributors:51
Capacity:1 metric ton of wheat per hour
We gratefully acknowledge the KSU Foundation Board of Trustees for
their outstanding leadership. We sincerely appreciate the time and
financial support they have provided in order to make the Changing
Lives Campaign a success. Private philanthropy makes the difference
between a dream that never gets a chance and a dream that comes true.
Over the 63-year history of the KSU Foundation, our group
of volunteer leaders has grown from a handful to thousands. The
cooperation of volunteers, university administration and faculty, and
foundation staff makes our university the one-of-a-kind institution we
call K-State.
Working together to change lives
2007 Campaign Progress & Annual Report 98 Kansas State University Foundation
From left: Dennis von Waaden, chairman, KSU FoundationBoard of Trustees; Paul Stephenson, chairman, KSU FoundationExecutive Committee; Gary Hellebust, president and CEO,KSU Foundation; Jon Wefald, president, Kansas State University.
2007 Campaign Progress & Annual Report 1110 Kansas State University Foundation
Fiscal year highlights
Dear friends:
Thanks to each of our many generous donors, we are pleased to report that the Kansas StateUniversity Foundation again had a successful fundraising year with contributions totaling$91.5 million in fiscal year 2007. Of the $91.5 million total, $51.7 million was received in cash, and$39.8 million was committed through pledges and deferred gifts. There is no question that theexcitement surrounding the Changing Lives Campaign is moving K-Staters to new levels ofgenerosity.
The $500 million Changing Lives Campaign is the most ambitious undertaken in K-State’s history,with an aggressive goal that we are well on our way to meeting. The successful completion of thiscampaign is imperative to ensure our capacity now, and in the future, to fulfill higher education’strue promise of changing lives.
Consider the fact that state support for K-State has declined to less than 25 percent of the university’sannual budget. Our university now relies on gifts from alumni and friends, and our faculty’s ability toearn grants and contracts, to fund the major portion of the university’s budget. By participating inthis campaign and by supporting areas we care about most, we are demonstrating to others that wevalue K-State not just as our school, but as an important contributor to our future.We recognize that K-State owes much of its success to the support and involvement of so many ofyou. On behalf of K-State’s students, faculty and staff, we extend our heartfelt thanks.
Paul Stephenson, chairmanExecutive Committee
Dennis von Waaden, chairmanBoard of Trustees
Gary Hellebust, president and CEOKSU Foundation 200720062005200420032002
$10
$20
$30
$40
$50
$60
$70
$80
$90
$35.2$26
$16.7
$38.5$28.1
$57.6
$41.8$54.2
$44.8
$37.3
$92.8
$39.8
$51.7
$91.5
$67.8$70.9
$83.3
$65.4
Changing Lives Campaign progressThe Changing Lives Campaign goal of$500 million will meet priorities inK-State’s nine colleges, as well as thealumni association, athletics anduniversitywide programs. With the helpof dedicated volunteer leadersthroughout the country, alumni andfriends have given as never before.
The charts here represent campaignprogress at the close of fiscal year 2007.Exciting progress has been made sincethen, but there is still work to be done.
Constituency Goal (millions) Total raised % of goalAgriculture $100 $79,737,666 80%
Architecture, Planning & Design $6 $5,850,059 98%
Arts & Sciences $35 $35,116,909 100%
Business $20 $29,016,960 145%
Education $10 $11,307,939 113%
Engineering $75 $81,920,608 109%
Human Ecology $17 $17,967,198 106%
K-State at Salina $5 $5,441,479 109%
Veterinary Medicine $35 $38,780,127 111%
Alumni Association $10 $10,707,267 107%
KSU Athletics $90 $92,601,853 103%
University Priorities $97 $74,722,515 77%
Total $500 $483,170,580 97%
Region Goal (millions) Total raised % of goalWest $40 $36,045,601 90%
Mountain $25 $28,531,041 114%
North Central $40 $46,744,282 117%
Kansas $250 $245,220,130 98%
South Central $55 $59,465,092 108%
East Central $15 $16,497,146 110%
East $55 $48,502,352 88%
International $20 $2,164,936 11%
Total $500 $483,170,580 97%
2007 Campaign Progress & Annual Report 1312 Kansas State University Foundation
Changing Lives Campaign participationWe salute our volunteer leaders! The Changing Lives Campaignhas engaged alumni across the country. Volunteers in each of theseven regions have been instrumental in helping identify andengage alumni and friends in K-State activities. The success ofthose efforts is illustrated by each region’s statistics. Participationfrom alumni throughout the country is crucial to the success ofthe campaign.
HONORARY CHAIRPERSONS
WESTMOUNTAIN
SOUTH CENTRAL
KANSAS
NORTH CENTRAL
EASTEAST CENTRAL
Chairpersons: Rhea andPat Serpan, Danville,California
Current students fromregion: 253*
Region donors who havemade a campaign gift:6,177
Chairpersons: Robertand Betty Tointon,Greeley, Colorado
Current students fromregion: 242*
Region donors who havemade a campaign gift:4,389
Chairpersons: Gary Glatzand Lela Beck-Glatz,Gurnee, Illinois
Current students fromregion: 1,328*
Region donors who havemade a campaign gift:9,854
Chairpersons: Arnoldand Terrie Allemang,Midland, Michigan
Current students fromregion: 183*
Region donors who havemade a campaign gift:3,124
Chairpersons: Paul andSandra Edgerley,Brookline, Massachusetts
Current students fromregion: 405*
Region donors who havemade a campaign gift:7,785
Chairpersons: Dennisand Sally vonWaaden, Austin, Texas
Current students fromregion: 386*
Region donors who havemade a campaign gift:7,122
Chairpersons: Duaneand Leslee Cantrell,Topeka
Current students fromregion: 16,865*
Region donors who havemade a campaign gift:72,767
INTERNATIONALCurrent students from region: 1,056*
Region donors who have made acampaign gift: 366
*Student numbers for each region are asof the spring 2007 semester
Ross and MariannaKistler BeachLawrence, Kansas
Jim and Marcia ColbertLas Vegas, Nevada
Jack and Joann GoldsteinManhattan, Kansas
Robert and MarciaHagansOverland Park, Kansas
Dean and Lavon MortonLos Altos, California
Elizabeth RhodesMesa, Arizona
Mitch and Juli RichmondLos Angeles, California
Bill and Sharon SnyderManhattan, Kansas
Warren R. and Mary LynnStaleyEdina, Minnesota
Joe M. and Inge T. TiaoManhattan, Kansas
Jack and Donna VanierBrookville, Kansas
M. Fred Tex and NancyChase WinterNewport, Oregon
Every gift makes adifference, and every giftchanges lives.
Here are just a few ways ourannual giving departmentcommunicates with K-State’salumni and friends:
2007 Campaign Progress & Annual Report 1514 Kansas State University Foundation
Annual givingAnnual giving at K-State strives to educate and encouragealumni, friends, faculty and staff, students and parents to supportK-State on an annual basis through various giving and leadershipopportunities. The purpose is to build a broad base ofcontributors who will support the immediate needs of theuniversity by responding to customized mail appeals andtelephone campaigns.
Each donor may choose to designate his or her support forstudents, faculty or research in any of the university’s colleges,programs or departments. You decide who benefits from yoursupport. Annual donors are an integral part of K-State — yourgifts advance the university with every coming year. Every annualgift, whatever its size, makes a valuable and immediatedifference at K-State.
Annual gifts support:� Student scholarships� Professional development for faculty� Facility enhancements
K-State Proud: Studentschanging lives
K-State Proud was the first all-universitystudent campaign of its kind at K-State— designed for students to have a partin the Changing Lives Campaign. Guidedby the leadership of Student Foundation,the campaign allowed students to showtheir pride through philanthropy. Studentcampaign donations established StudentOpportunity Awards for fellow K-Statestudents in need.
Telefund
K-State’s annual Telefund hosted22 calling sessions in 2007, loggingpledges worth $1,408,737. Cooperationand dedication separate K-State’sTelefund from the year-round,automated, paid-caller systems that havebecome the standard among collegiatetelephone campaigns. More than16,000 K-State alumni and friendsparticipated in the Changing LivesCampaign by pledging to Telefund 2007.
All-University Campaign
In September 2006, K-State launched theinaugural All-University Campaign. Ledby faculty and staff volunteers, thecampaign reached out to all faculty andstaff across campus, encouraging them toshow their pride through philanthropy.The All-University Campaign will becomean annual campaign coordinated throughthe annual giving department.
16 Kansas State University Foundation 2007 Campaign Progress & Annual Report 17
Cargill honors K-State alumnus withgift to leadership studiesKansas State University has had a long-standing relationshipwith Cargill, a Minneapolis-based international provider of food,agricultural and risk management products and services. In 2007,Cargill announced a $1 million gift to name theCargill Center for Ethical Leadership withinthe Center for Leadership Studies.
When Warren Staley, a 1965 K-Stategraduate, recently retired as Cargill’s president and chiefexecutive officer, Cargill honored Staley with this gift to promoteethical business leadership at K-State.
“Cargill is pleased to make this unprecedented gift to supportthe ethics center as a way to recognize Warren Staley’scommitment to promoting leadership and sound ethical businesspractices,” said Greg Page, president and chief executive officerof Cargill.
For more than 20 years, Cargill has supported a variety ofK-State’s academic programs, diversity initiatives, scholarshipsand facilities improvements across campus. Cargill and K-Statehave worked together on targeted academic programs in theColleges of Agriculture, Engineering and Human Ecology. Cargillalso sponsors the Cargill Business Ethics Lecture Series in theCollege of Business Administration.
Corporate matchingprograms enhance giftsto K-StateA young professional at ExxonMobil inHouston, Andrew Bell decided early thathe wanted to give back to his alma mater.With the help of a corporate matchinggift program, Bell was able to establish ascholarship for K-State student leaders.
“Utilizing matching gift programs is theultimate opportunity to make dreamscome true and to also keep educationaffordable for all students,” said Bell, a2003 management information systemsgraduate. “Not only does the partnershipencourage alumni to give back to theiruniversity, but it allows donors theopportunity to channel their money intospecific programs that can make adifference in other people’s lives.”
Bell used ExxonMobil’s 3-to-1 matchinggift program to establish an endowedfund, the Andrew K. Bell Residence LifeLeadership Scholarship.
“I am fortunate to work for a companythat realizes the importance of investingin the present and for the future,” he said.“I was able to use matching fundsprovided by the ExxonMobil Foundationto multiply my contribution intosomething that could help others expandtheir leadership abilities. Corporationsneed to think of the matching giftprogram not just as an expense on thecorporate balance sheet. Investing ineducation will continue to expand thecreativity required in order for businessesto succeed.”
2007 matching giftsMore than $975,000 was received inmatching gift donations in fiscal year2007 — a 12 percent increase from fiscalyear 2006.
Of that total, more than:
� 2,000 matching gifts were received.
� 1,500 alumni and friends utilizedtheir company’s matching giftprogram.
� 250 companies matched theiremployee’s gifts to K-State.
Corporate andfoundationrelations
The corporate and foundation relations department acts as acatalyst to promote and strengthen relationships betweencorporations and foundations and the K-State academiccommunity. Comprehensive strategic partnerships producea variety of mutually beneficial programs between theuniversity and corporations.
The following corporate andfoundation partners havesupported Kansas StateUniversity with gifts of$100,000 or more during the2007 fiscal year.
CORPORATIONS
Buhler Inc.
Burke Lawton Brewer & Burke
Cadence Design Systems Inc.
Cargill Inc.
Cereal Food Processors Inc.
ConocoPhillips
Hill’s Pet Nutrition Inc.
Jacob Tubing LP
Kice Industries Inc.
Lectra USA Inc.
Mercy Regional Health Center
Merial Limited
Pepsi Cola Bottling Co. ofMarysville Inc.
Porter Farms
Via Christi Health System Inc.
Wildcat Construction Co. Inc.
FOUNDATIONS
Cessna Foundation Inc.
Carl M. and Ruth L. Coonrod FamilyFoundation
Crosby Family Foundation
Dane G. Hansen Foundation
Dixon and Carol Doll FamilyFoundation
Don C. and Florence M. McCuneFoundation
E. Eugene Carter Foundation
Lattner Family Foundation Inc.
Tointon Family Foundation
ConocoPhillips selects K-State forSPIRIT Scholars ProgramConocoPhillips, the third-largest integrated energy company inthe United States, selected K-State as the newest member of itsSPIRIT Scholars Program and presented a check for $400,000 tothe university in April. K-State is one of only eight universities inthe country to receive thisdistinction.
The SPIRIT ScholarsProgram provides academicscholarships to sophomores, juniors, seniors and graduatestudents. Mentoring opportunities and the opportunity to beinterviewed for internships and full-time employment atConocoPhillips are additional benefits of the program.
“ConocoPhillips is extremely proud of the Kansas StateUniversity graduates who work in our company,” said RandBerney, vice president and controller of ConocoPhillips and theexecutive contact for the partnership with K-State. “They bring awealth of knowledge and breadth of experience that continues tocreate a lasting impact on our businesses.”
ConocoPhillips officials said that by cultivating workingrelationships with universities like K-State, they are able toidentify, develop and recruit top talent with the goal of givingstudents a competitive edge in business and creating the leaderswho will drive the success of ConocoPhillips well into the future.
Rand Berney, vice president and controller of ConocoPhillips,visits with newly selected K-State SPIRIT Scholars.
Andrew Bell
2007 Campaign Progress & Annual Report 1918 Kansas State University Foundation
Volunteer leaders
KSU Foundation ExecutiveCommitteeThe executive committee is com posed of the chair man, vicechairman, secretary and trea surer of the board of trust ees, thepresident of the uni ver si ty, the chair man of the K-State AlumniAssociation Board of Di rec tors and ad di tion al members electedfrom the board of trust ees.
The executive com mit tee meets quarterly to consider policy andman age ment is sues and is authorized to act on behalf of theboard of trust ees between its annu al meetings. Ex ec u tivecommit tee members also apply their expertise to com mit teesinclud ing in vest ment advi sory, development and pri or i ti za tion,tech nol o gy, bud get and operations, account ing and audit, trustmanagement advisory and nominating.
Board of trustees asof June 30, 2007
Barb AdeeNewton, Kansas
Ray AdeeNewton, Kansas
Robert AllenVoorhees, New Jersey
Doug AnstaettTopeka, Kansas
Lucinda AnstaettTopeka, Kansas
Terry Arthur IIIManhattan, Kansas
Douglas AyreLarned, Kansas
Jane AyreLarned, Kansas
Jack AyresScottsdale, Arizona
Janet AyresScottsdale, Arizona
Bruce BachmanCentralia, Kansas
Sally BakerGranbury, Texas
Thane BakerGranbury, Texas
Janice BarclayRogers, Arkansas
Dick BarclayRogers, Arkansas
Michael BarreraWashington, D.C.
Jon BaumShawnee Mission,Kansas
Ann BeckerWichita, Kansas
Dean BeckerWichita, Kansas
Charles BelewWichita, Kansas
Jeanne BelewWichita, Kansas
Karen BellManhattan, Kansas
Deloris BerlandManhattan, Kansas
Steve BerlandManhattan, Kansas
Ann BidwellChicago, Illinois
Ann BinghamLake Quivira, Kansas
Larry BinghamLake Quivira, Kansas
Beth BirdAnthony, Kansas
Dan BirdAnthony, Kansas
James BirkbeckHolton, Kansas
Mary BirkbeckHolton, Kansas
Rolando BlackmanDallas, Texas
Tamara BlackmanFrisco, Texas
Doug BlackwoodOlathe, Kansas
Jerry BoettcherBeloit, Kansas
Eldon BoisseauWichita, Kansas
Janet BoisseauWichita, Kansas
Gary BoomerKansas City, Missouri
Kathleen BorckManhattan, Kansas
Lee BorckManhattan, Kansas
Nadalie BosseLeawood, Kansas
Brent BowmanLeawood, Kansas
Lorie DoolittleBowmanLeawood, Kansas
Kent Bradley MDValley Center, Kansas
Ron BramlageJunction City, Kansas
Barbie BreedloveOlathe, Kansas
Loren BreedloveOlathe, Kansas
Ben BrentManhattan, Kansas
Dwayne BroddleWichita, Kansas
Karen BrokenickyManhattan, Kansas
Phil BrokenickyManhattan, Kansas
Mary BrooksOverland Park, Kansas
Bill BrooksOverland Park, Kansas
Elizabeth BurkeDoylestown,Pennsylvania
Franklin BurkeDoylestown,Pennsylvania
Bernie ButlerManhattan, Kansas
Duane CantrellTopeka, Kansas
Leslee CantrellTopeka, Kansas
Tom CarlinManhattan, Kansas
Michael CarlisleLawrence, Kansas
Charles Chandler IVWichita, Kansas
Dave ChelesnikDel Mar, California
Michael ChristensenWaterloo, Nebraska
Susan ChristensenDDSWaterloo, Nebraska
Charlie Claar Jr.Garden City, Kansas
James CoffmanManhattan, Kansas
Larry CoffmanSt. Joseph, Missouri
Sally CoffmanSt. Joseph, Missouri
Executive committee as ofJune 30, 2007
Paul StephensonChairman, executive committeeWichita, Kansas
Lee HarrisVice chairman, executivecommitteeLeawood, Kansas
Duane CantrellTreasurer, board of trusteesTopeka, Kansas
Randy CoonrodWichita, Kansas
Tara CuppsWichita, Kansas
Paul EdgerleyBrookline, Massachusetts
Curt FrasierBeloit, Kansas
Phil HoweSecretary, board of trusteesManhattan, Kansas
Earl McVickerVice chairman, board of trusteesHutchinson, Kansas
Bill SanfordWilloughby, Ohio
Rhea SerpanChairman, K-State AlumniAssociation Board of DirectorsDanville, California
Eleanor StolzerManhattan, Kansas
Betty TointonGreeley, Colorado
Dennis von WaadenChairman, board of trusteesAustin, Texas
Ex Officio
Duane NellisProvostKansas State University
Phil PharPresidentLivestock and Meat IndustryCouncil
Lyle PishnyPast chairman
Jon WefaldPresidentKansas State University
Gary HellebustPresident/CEOKSU Foundation
KSU Foundation Board ofTrusteesThe foundation’s governing board consists of electedvolunteers who serve four-year terms. The board oftrustees meets annually to consider foun da tion policiesand stra te gic direc tion. Trust ees also help iden ti fy,cultivate and solic it sup port for the university fromindividuals, cor po ra tions and foundations.
Trustees not only volunteer their time and ex per tise,they also provide continu ous financial support to the univer si ty .
2007 Campaign Progress & Annual Report 2120 Kansas State University Foundation
Sharon CoffmanManhattan, Kansas
Marcia ColbertManhattan, Kansas
Brenda ComptonWichita, Kansas
Gib ComptonWichita, Kansas
Randy CoonrodWichita, Kansas
Bonnie CordillTopeka, Kansas
Jerry CordillTopeka, Kansas
Nancy CoulterBroken Arrow, Oklahoma
Roger CoulterBroken Arrow, Oklahoma
Ann CranorShawnee Mission,Kansas
Timothy CranorShawnee Mission,Kansas
Tara CuppsWichita, Kansas
Terry CuppsWichita, Kansas
Chris CurtinOverland Park, Kansas
Hugo Dahlstrom IIIMcPherson, Kansas
Neisha DahlstromMcPherson, Kansas
Robert DavisTopeka, Kansas
Venette DavisTopeka, Kansas
Bob DeBruynManhattan, Kansas
Amy DobbinsOlathe, Kansas
Mark DobbinsOlathe, Kansas
Ann DodderidgeVenice, Florida
Dick DodderidgeVenice, Florida
Dixon DollSan Francisco, California
Marilee DonaldsonPlano, Texas
Rich DonaldsonPlano, Texas
Joe DowneyManhattan, Kansas
Sherry DowneyManhattan, Kansas
David DreilingManhattan, Kansas
Kristen DreilingManhattan, Kansas
Don DresslerIrvine, California
Linda DresslerIrvine, California
Paul EdgerleyBrookline, Massachusetts
Gary EdwardsHouston, Texas
Peggy EdwardsHouston, Texas
Ann EricksonManhattan, Kansas
Howard EricksonManhattan, Kansas
Richard EversSt. Joseph, Missouri
Sharon EversSt. Joseph, Missouri
Jerry FairbanksGoodland, Kansas
Joe FarrarManhattan, Kansas
Nancy FarrarManhattan, Kansas
Ann FinglandManhattan, Kansas
Roger FinglandManhattan, Kansas
Barry FlinchbaughManhattan, Kansas
Cathy FlinchbaughManhattan, Kansas
Bernard FranklinKansas City, Kansas
Curt FrasierBeloit, Kansas
Sherry FrasierBeloit, Kansas
Marilyn GalleManhattan, Kansas
Nelson GalleManhattan, Kansas
Mark GalyardtAtlanta, Georgia
Susie GalyardtAtlanta, Georgia
Henry GardinerAshland, Kansas
Doug GastonLeawood, Kansas
Rozanne GastonLeawood, Kansas
Jeff GatesNew York, New York
Malinda GilchristManhattan Beach,California
Mary Kevin GillerManhattan, Kansas
Tom GillerManhattan, Kansas
Gary GlatzGurnee, Illinois
Nick GoldenOverland Park, Kansas
Susan GoldenOverland Park, Kansas
Jack GoldsteinManhattan, Kansas
Joann GoldsteinManhattan, Kansas
Michael GossWestport, Connecticut
Celinda GrahamWichita, Kansas
Jim GrahamWichita, Kansas
John GrahamManhattan, Kansas
Mary Lee GrahamManhattan, Kansas
Sue GreigManhattan, Kansas
Carolyn GrierWichita, Kansas
Chuck GrierWichita, Kansas
Jim Grier IIIWichita, Kansas
Susan GrierWichita, Kansas
Jo HarbinSalina, Kansas
Bill HarbinSalina, Kansas
Barbara HarrisLeawood, Kansas
Lee HarrisLeawood, Kansas
Clay HarveyTopeka, Kansas
Marsha HedlundWichita, Kansas
Jerod HeimanWichita, Kansas
ChristopherHernandezKansas City, Kansas
Chris HessCarlsbad, California
Ken HewsonLarned, Kansas
Mary HewsonLarned, Kansas
Doug HillSt. Louis, Missouri
Jerry HillMarina del Rey,California
Joleen HillManhattan, Kansas
Vicki HillSt. Louis, Missouri
Colleen HodesRockaway, New Jersey
Steven HodesRockaway, New Jersey
Elaine HodgsonOverland Park, Kansas
Michael HodgsonOverland Park, Kansas
Hank HoesliWichita, Kansas
Sally HoesliWichita, Kansas
Don HoffmanHays, Kansas
Gretta HoffmanHays, Kansas
Jeannie HollisTucson, Arizona
Phil HollisTucson, Arizona
Allen HomanPortage, Michigan
Dianne HonomichlDe Soto, Kansas
Kevin HonomichlDe Soto, Kansas
Julie HostetlerManhattan, Kansas
Phil HoweManhattan, Kansas
Cleve HumbertManhattan, Kansas
Mark HuttonWichita, Kansas
Mary HuttonWichita, Kansas
Carl IceColleyville, Texas
Mary IceColleyville, Texas
Rae ImanAlbuquerque, NewMexico
Ron ImanAlbuquerque, NewMexico
Linda IrsikGainesville, Florida
Max IrsikGainesville, Florida
Rebecca Jackson-ClaarGarden City, Kansas
Connie JaynesTulsa, Oklahoma
Ann JohnsonLawrence, Kansas
Jim JohnsonColorado Springs,Colorado
Steven JohnsonOverland Park, Kansas
Steve JohnsonLawrence, Kansas
Larry JusticeOlathe, Kansas
Jim KadelBeloit, Kansas
Karol KadelBeloit, Kansas
Gial KaegiDerby, Kansas
Marge KaegiDerby, Kansas
Carolyn KellerLittleton, Colorado
Cindy KellerPratt, Kansas
Frank KellerLittleton, Colorado
Bill KellerPratt, Kansas
Hannah KerschenWichita, Kansas
Rich KerschenWichita, Kansas
Beth KesingerManhattan, Kansas
Don KesingerManhattan, Kansas
Mary Lee KindThousand Oaks,California
Larry KingDenver, Colorado
Douglas KitchenNashville, Tennessee
Kenny KnightLyons, Kansas
Tamara KnightLyons, Kansas
Joan KnollTopeka, Kansas
Loren KochMarietta, Georgia
Sandra KochMarietta, Georgia
Patrick KoonsBurdick, Kansas
Sharon KoonsBurdick, Kansas
Duane KosterGarden City, Kansas
Kathleen KosterGarden City, Kansas
Rick KrauseGreat Bend, Kansas
Rita KrauseGreat Bend, Kansas
Barbara KrugerHenderson, Nevada
Lon KrugerHenderson, Nevada
Cathryn LacyDes Moines, Iowa
Stephen LacyDes Moines, Iowa
Charles LamphearLincoln, Nebraska
Karen LarsonOlathe, Kansas
Alan LauckSanta Fe, New Mexico
Jon LevinManhattan, Kansas
Lila LevinManhattan, Kansas
Bill LivingstonWichita, Kansas
Cheryl LockettLeawood, Kansas
Kevin LockettLeawood, Kansas
Beth LullSalina, Kansas
Dennis LullSalina, Kansas
Joyce LutzTopeka, Kansas
Ronald LutzTopeka, Kansas
Dan LykinsTopeka, Kansas
Board of trustees asof June 30, 2007(continued)
2007 Campaign Progress & Annual Report 2322 Kansas State University Foundation
Judy LykinsTopeka, Kansas
Jo LyleManhattan, Kansas
Kenneth LyleManhattan, Kansas
Jan MarkelRogers, Arkansas
Lynn MarkelRogers, Arkansas
Renay MartinOverland Park, Kansas
Rick MartinOverland Park, Kansas
Terry MatlackShawnee Mission,Kansas
Diana McCaustlandManhattan, Kansas
Bob McCaustlandManhattan, Kansas
John McCloskeyEvergreen, Colorado
Earl McVickerHutchinson, Kansas
Candy MerrillOverland Park, Kansas
Fred Merrill Jr.Overland Park, Kansas
Lauren MeyerLenexa, Kansas
Mark Meyer MDLenexa, Kansas
Doris MillerManhattan, Kansas
Joe MillerSpring Lake, New Jersey
Monte Miller Jr.Manhattan, Kansas
Ron MinarciniMarco Island, Florida
Harish MinochaManhattan, Kansas
Rich MistlerFairway, Kansas
John MollettOlathe, Kansas
Kathryn MollettOlathe, Kansas
John MontgomeryJunction City, Kansas
deAnn MooreMission Hills, Kansas
Sam MooreMission Hills, Kansas
John MorganPacific Palisades,California
Linda MorganPacific Palisades,California
Aaron MorrisonSalina, Kansas
Cy MoyerPhillipsburg, Kansas
Bill MuirManhattan, Kansas
Elaine MullPawnee Rock, Kansas
Glenn MullPawnee Rock, Kansas
Keith MullLarned, Kansas
Dennis MullinManhattan, Kansas
Andrew MurphyGreat Bend, Kansas
Mary Jo MyersArlington, Virginia
Richard MyersArlington, Virginia
David NelsonSt. George, Kansas
Mary Jo NelsonSt. George, Kansas
Larry NettlesLeawood, Kansas
Gary OlsonLawrence, Kansas
Julie OltjenOverland Park, Kansas
Rob OltjenOverland Park, Kansas
Ken PeirceHutchinson, Kansas
John PerrierDodge City, Kansas
Jan PishnyStilwell, Kansas
Lyle PishnyStilwell, Kansas
Mary PollackManhattan, Kansas
Gary ProffittSterling, Kansas
Casey RachofskySan Diego, California
Marc RachofskySan Diego, California
Randy RathbunWichita, Kansas
Les RegierOverland Park, Kansas
Ann RegnierLeawood, Kansas
Bob RegnierLeawood, Kansas
Sid ReitzSalina, Kansas
Deborah RempeWindsor, Colorado
Michael RempeWindsor, Colorado
Kathleen RiordanPrairie Village, Kansas
Michael RiordanPrairie Village, Kansas
Barry RobinsonRolling Hills Estates,California
Marcia RobinsonRolling Hills Estates,California
Roy RobinsonKansas City, Kansas
Sylvia RobinsonKansas City, Kansas
David RockFrisco, Texas
Lisa RockFrisco, Texas
Brent RockersClive, Iowa
Lynne RockersClive, Iowa
Hal RossWichita, Kansas
Mary Lou RossWichita, Kansas
Bill SanfordWilloughby, Ohio
Duane SaundersEden Prairie, Minnesota
Denise SchneiderHinsdale, Illinois
Rob SchneiderHinsdale, Illinois
Rhea SerpanDanville, California
Pat SerpanDanville, California
Shad ShadwickGreeley, Colorado
Jeannine ShadwickGreeley, Colorado
Jan ShawAshland, Kansas
William ShawAshland, Kansas
Connie SinkManhattan, Kansas
Roger SinkManhattan, Kansas
Bob SjogrenNewton, Kansas
Red SkeltonWichita, Kansas
Suzy SmithTopeka, Kansas
Bill SnyderManhattan, Kansas
John SnyderWest Des Moines, Iowa
Sharon SnyderManhattan, Kansas
Dean SpencerCouncil Grove, Kansas
Sharon SpencerCouncil Grove, Kansas
John StackGravois Mills, Missouri
P. J. Stamps-KitchenNashville, Tennessee
Susan StannardMission Woods, Kansas
Bill StannardMission Woods, Kansas
Amy Lou StephensonWichita, Kansas
Paul StephensonWichita, Kansas
Eleanor StolzerManhattan, Kansas
Bill StolzerManhattan, Kansas
Joe StoutCottonwood Falls, Kansas
Mary Lea StoutCottonwood Falls, Kansas
Veryl SwitzerManhattan, Kansas
Marilyn TaylorOverland Park, Kansas
Bill TaylorOverland Park, Kansas
John TeeterLenexa, Kansas
Patricia TeeterLenexa, Kansas
Jane ThiessenManhattan, Kansas
Richard ThiessenManhattan, Kansas
Bernita ThornTopeka, Kansas
Bob ThornTopeka, Kansas
Ann TiaoVoorhees, New Jersey
Joe TiaoManhattan, Kansas
Frank TillmanManhattan, Kansas
Betty TointonGreeley, Colorado
Mark TruittLeawood, Kansas
Greg TuckerSan Francisco, California
Donna VanierBrookville, Kansas
Jack VanierBrookville, Kansas
John Vanier IISalina, Kansas
Mary VanierManhattan, Kansas
Randy VautraversAndover, Kansas
Dennis von WaadenAustin, Texas
Sally von WaadenAustin, Texas
Edwin WambsganssLarkspur, Colorado
Eunice WambsganssLarkspur, Colorado
Byron WartaNewton, Kansas
Marjorie WartaNewton, Kansas
Dan WassenbergMarysville, Kansas
Jon WefaldManhattan, Kansas
Ruth Ann WefaldManhattan, Kansas
Loma WegererMoline, Illinois
Vernon WegererMoline, Illinois
Carol WeibertManhattan, Kansas
Warren WeibertManhattan, Kansas
Elizabeth WeigelKansas City, Missouri
David WeigelKansas City, Missouri
Darrell WesterveltManhattan, Kansas
Jane WestfallManhattan, Kansas
Douglas WeyerLake Dallas, Texas
Herb WhitneyHouston, Texas
Mary Sue WhitneyHouston, Texas
Brian WicksGeorgetown, Texas
Christine WicksGeorgetown, Texas
Cathy WielandColby, Kansas
Scott WielandColby, Kansas
Don Wilbur Jr.Paola, Kansas
Michael WildsManhattan, Kansas
Larry WilliamsHalstead, Kansas
Chuck Wilson Jr.Del Mar, California
Diane WolfingtonWichita, Kansas
Scot WolfingtonWichita, Kansas
Dave Woolfolk Jr.Manhattan, Kansas
Julia WoolfolkManhattan, Kansas
George YappBarrington Hills, Illinois
Gary YoungerWichita, Kansas
Sharon YoungerWichita, Kansas
Cheryl YunkManhattan, Kansas
Dan YunkManhattan, Kansas
Board of trustees asof June 30, 2007(continued)
2007 Campaign Progress & Annual Report 2524 Kansas State University Foundation
$56.7 million transferred to theuniversityCharitable contributions help K-State develop new programs, provideopportunities for students and faculty, and enhance university life.In fiscal year 2007, the foundation transferred $56.7 million to theuniversity, a new record. The bulk of the $56.7 million transferred camefrom current year expendable contributions. The remainder came fromthe annual investment return on endowed funds established in prioryears.
$91.5 million committed by donors
In the same fiscal year, a total of $91.5 million was committed to thefoundation.
$51.7 million was received in outright gifts of cash, real estate orappreciated securities
+ $39.8 million was committed through pledges or deferred gifts(not yet available to distribute to the university)
$91.5 million in total gift activity
The $51.7 million received in outright gifts was designated in this way:
$18.8 million in endowed gifts (only investment return andearnings are available for distribution)
$2.5 million in trusts (not available for distribution until a later date)+ $30.4 million in expendable contributions
$51.7 million in outright gifts
Endowed gifts: Endowment additions were made to bothpermanently endowed and quasi-endowed funds. Gifts that aredesignated as permanent endowments are held in perpetuity. The giftis invested and a portion of the annual investment return is used tosupport the purpose specified by the donor. The portion of theinvestment return that is available to support the fund’s purpose isbased on the foundation’s distribution policy, which is set and reviewedannually by the executive committee. Quasi-endowed funds areinvested like a permanent endowment, but allow the university toutilize principal when needed.
Expendable gifts: Expendable funds are available immediately tothe designated college or department.
Trusts: In the case of trusts, donors make a contribution to thefoundation to establish a trust benefiting the donor. The donor receivesincome from the trust for a set period of years or for life. No moneyfrom the trust goes to the designated university purpose until the trustis terminated.
Supporting K-State today and in the future
A proper balance of endowments, expendable funds and trusts are vitalto the welfare of Kansas State University. A university is typicallyjudged by its endowment level as it represents the university’s long-term ability to offer scholarships, compensate staff and provideacademic support. Expendable funding provides dollars that areavailable today to make an immediate impact on furthering theuniversity’s goals. Trusts represent a future revenue stream for K-State.
Assets and endowments
Permanent endowments and other foundation assetsThis chart shows the foundation’s total assets, which topped$453 million in fiscal year 2007. The purple bars indicate the portion oftotal assets that are permanent endowments, the majority of which areheld in the endowment pool. This pool earned an investment return of19.32 percent in fiscal year 2007.
The blue bars represent temporarily restricted assets including donor-restricted expendable funds, quasi-endowed funds and unrestrictednet assets. The foundation building, university real estate fund andunderwriting funds for the foundation and the university are includedin unrestricted net assets.
Other foundation assets Permament endowments
$100
$200
$300
$400
$500
200720062005200420032002
$245.6$211.2$182.0$155.2$143.2
$151.2
$289.8
$163.4
$131.2$137.2
$124.1$126.6
$396.8
$453.2
$342.4$319.2
$279.3$269.8
Dollars in millions
InvestmentsThe diversified portfolio approach tomanaging the endowment pool assetscontinued to provide returns that outpaced acustom benchmark index of broad marketindices in the fiscal year 2007, by more than300 basis points. The investment committee,consisting of nine trustees with financialmarkets expertise, works with staff and aninvestment consultant in formulatinginvestment policy and, from that, anappropriate asset allocation. With thisguidance, staff manages the portfolio ofexternal managers and funds-of-funds.
In addition to ongoing portfolio and managerdue diligence issues, the following weremajor issues addressed by the investmentcommittee and staff during the fiscal year:
�Modification of the expendable pool assetallocation to better fit the portfoliostructure to the pool cash flow history.
� Initiation of an investment consultantreview through issuance of a request forproposals to investment consultingcandidates.
� Investigation of the pros and cons ofcreating an investment subsidiary of theKSU Foundation to manage theinvestment functions of the organizationand potentially other similar entities.
Endowment pool asset allocation
The endowment pool at June 30, 2007, had11 percent allocated to a deflation hedgestrategy comprised of high-quality fixedincome; 38 percent allocated to traditionalequity strategies, both domestic andinternational; 16 percent allocated to aninflation hedge strategy comprised of thoseassets which would cushion the portfoliofrom an unexpected rise in inflation, such asreal estate, commodities and energy;19 percent in hedge funds, both absolutereturn and long/short equity; and, 16 percentin private capital, consisting of private equity,distressed debt and venture capital.
Endowment pool returns
Endowment returns at fiscal year-end were:19.3 percent, 15.5 percent, 12.9 percent and9.3 percent for one-, three-, five- and 10-yearperiods respectively. The absolute returnobjective of equaling distributions plusexpenses plus inflation was exceeded by0.2 percent over a 10-year period. Meeting orexceeding the absolute return objective is ameasure of how well the endowment isattaining intergenerational equity, thebalancing of current and future distributionsfrom the endowment.
Performance data is updated on theinvestments portion of the KSU FoundationWeb site approximately six weeks after theend of each quarter; policies are updated aschanges occur. See www.found.ksu.edu/investments.
Endowment poolRelative objectiveAbsolute objective
The relative objective of the endowment is to seekcompetitive investment performance compared toappropriate capital market measures, such as securitiesindices.
The absolute objective of the endowment is to seek anaverage total annual real return equal to or exceedingthe distribution policy rate; specifically the CPI plus thedistribution policy rate. This objective shall be measuredover annualized, rolling 10-year time periods. The intentof this objective is to preserve, over time, the principalvalue of assets as measured in real, inflation adjustedterms.
Endowment pool performance analysis (as of June 30, 2007)
Endowment pool asset allocationTraditional equity 38% _______________________
(domestic and international)
Hedge funds 19% ______________________________________
Private capital 16% ______________________
Inflation hedge 16% _________________________________(real estate, commodities, energy)
Deflation hedge 11% _________________________(fixed income)
5%
10%
15%
20%
10-year5-year3-year1-year
19.3%16% 15.5%
13% 12.9%11.2%
9.3% 8.5% 9.1%
2007 Campaign Progress & Annual Report 2726 Kansas State University Foundation
Kansas State University FoundationManhattan, Kansas
Consolidated Statements of Financial PositionFor the year ended June 30,
ASSETS 2007 2006Cash and cash equivalents $24,982,670 $32,494,121Short-term investments and certificates of deposit 2,690,000 3,586,032Equity investments 168,099,963 133,481,062
Book value — $118,099,386 at June 30, 2007Book value — $107,438,473 at June 30, 2006
Corporate and other fixed income 47,331,325 51,920,421Book value — $46,195,920 at June 30, 2007Book value — $51,999,183 at June 30, 2006
U.S. Government and government agency obligations 1,348,291 1,352,295Book value — $1,334,193 at June 30, 2007Book value — $1,334,193 at June 30, 2006
Real estate investments 33,448,863 27,930,245Book value — $28,934,694 at June 30, 2007Book value — $26,218,166 at June 30, 2006
Alternative strategies 134,580,977 103,567,410Book value — $115,595,893 at June 30, 2007Book value — $97,773,642 at June 30, 2006
Other securities and investments 380,242 340,995Book value — $277,338 at June 30, 2007Book value — $283,721 at June 30, 2006
Pledges receivable, net 13,405,563 13,422,606Receivables from estates 5,630,970 6,750,111Loans receivable 1,839,336 710,861Real estate and other depreciable property 18,031,197 19,903,983
Accumulated depreciation (4,216,461) (3,853,002)Net real estate and other depreciable property — Golf course 1,767,223 1,745,980Cash surrender value of life insurance policies 3,119,776 2,756,425Other assets and accrued income 763,683 722,515TOTAL ASSETS $453,203,618 $396,832,060
LIABILITIES AND NET ASSETSCurrent liabilities
Accounts payable, deposits and other liabilities $1,890,309 $720,895Accrued liabilities 1,376,924 1,211,876Assets held for others 8,327,441 6,172,878Current obligations, unitrust and annuity liabilities 2,682,248 2,492,663Current portion of note, mortgage and bond payable 1,081,710 459,144
Total current liabilities $15,358,632 $11,057,456Other liabilities
Unitrust and annuity liabilities, less current obligation $22,013,970 $19,927,549Note payable — Nanoscale, less current portion 1,669,890 1,753,081Note payable — Printing Services, less current portion – 638,882Mortgage payable — Golf course, less current portion 1,052,568 1,367,205Line of credit — Golf course 1,101,747 1,191,008Bonds payable — Educational and Agricultural Research Facility Rev Bonds,
less current portion 500,000 545,000Total other liabilities $26,338,175 $25,422,725
TOTAL LIABILITIES $41,696,807 $36,480,181Net assets
Unrestricted net assets (designated) $35,489,312 $31,590,034Temporarily restricted net assets 86,178,444 83,156,464Permanently restricted net assets 289,839,055 245,605,381
Total net assets $411,506,811 $360,351,879TOTAL LIABILITIES AND NET ASSETS $453,203,618 $396,832,060
Kansas State University FoundationManhattan, Kansas
Consolidated Statement of ActivitiesFor the year ended June 30,
REVENUES, GAINS Temporarily PermanentlyAND OTHER SUPPORT Unrestricted Restricted Restricted 2007 Total 2006 Total
Contributions $1,875,928 $34,819,920 $12,301,368 $48,997,216 $64,460,609Investment income 976,431 12,605,669 178,528 13,760,628 12,313,561Net realized and unrealized gains onasset transactions 15,625,314 4,267,076 32,928,387 52,820,777 27,869,173Other support
Operational service charges, management fees and other 3,424,257 – – 3,424,257 3,387,251Receipts for grants, research, supplies, travel and other university departmental activities and funding allotments, etc. (4,900) 6,449,448 6,720 6,451,268 4,744,822Actuarial gain/(loss) on unitrustsand annuities obligations (555,465) (4,142,864) (809,729) (5,508,058) (1,637,678)
Net assets released from restrictions (2,672,219) 3,043,819 (371,600) – –Satisfaction of program restrictions 54,021,088 (54,021,088) – – –
Total revenues, gains and other support $72,690,434 $3,021,980 $44,233,674 $119,946,088 $111,137,738
EXPENSES AND SUPPORTDirect university support
Scholarships and other student awards $10,962,142 – – $10,962,142 $8,731,925Academic 6,058,132 – – 6,058,132 7,390,198Administrative — faculty and student support 27,064,155 – – 27,064,155 22,092,443
Capital improvements 12,657,664 – – 12,657,664 8,946,080
Subtotal $56,742,093 – – $56,742,093 $47,160,646
Investment — portfolio management 2,557,011 – – 2,557,011 2,345,811Investment — loan interest expense and write-off 269,948 – – 269,948 389,919KSUF administration 3,540,688 – – 3,540,688 3,065,805KSUF fundraising 5,681,416 – – 5,681,416 5,561,781
Total expenses and support $68,791,156 – – $68,791,156 $58,523,962
CHANGE IN NET ASSETS $3,899,278 $3,021,980 $44,233,674 $51,154,932 $52,613,776
NET ASSETS AT BEGINNING OF YEAR 31,590,034 83,156,464 245,605,381 360,351,879 307,609,126
ADJUSTMENT TO NET ASSETS (KSUGCMRF Quasi Reorganization) – – – – 128,977NET ASSETS AT END OF YEAR $35,489,312 $86,178,444 $289,839,055 $411,506,811 $360,351,879
The Consolidated Statements of Financial Position and the Consolidated Statements of Activities are excerpted from the KansasState University Foundation’s 2007 financial statements, which were audited by Varney and Associates, CPAs, LLC. For a completecopy, please view online at www.found.ksu.edu or send a request to Controller, KSU Foundation, 2323 Anderson Ave. Ste. 500,Manhattan, KS 66502-2911.
2007 Campaign Progress & Annual Report 28
K-State Proud
For the first time in K-State history, students initiated their veryown philanthropic campaign. Guided by the leadership ofStudent Foundation, the campaign brought student leaders fromacross campus together to promote philanthropy at K-State.Raising more than $62,000 for their fellow students, the studentbody celebrated the campaign’s success at the Big Mondaybasketball game on Feb. 19, 2007.
2007 Campaign Progress and Annual Report produced by the KSU Foundation’sDepartment of Communications. Photographs: J&C Imaging/John La Barge,KSU Photographic Services/Dan Donnert, KSU Foundation/Joe Montgomery,The Mojo Dojo/Brandon Greene, Terry C. Johnson Center for Basic CancerResearch.
KSU Foundation Center2323 Anderson Avenue, Suite 500Manhattan, Kansas 66502-2911785-532-6266 • 800-432-1578
www.found.ksu.edu
Changing Lives