FINANCIALS
THE
BEST
OF
TIMES
TO INVEST IN MESSIAH COLLEGE
Given the pluralistic influences on our current and future generations, the relevance and need for a Christian college in our society today—and into the future—is stronger than ever. Messiah College is preparing young people to face these challenges with spiritual, intellectual and relevant vocational and life skills. These qualities differentiate Messiah K ATE Y DAY ’ 15
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FINANCIALS
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in the marketplace, making the institution a great choice for undergraduate and graduate students, as well as a quality investment for existing and potential financial supporters. As the CFO of a global investment management firm, I am surrounded by savvy professionals who pride themselves in producing long-term returns for our clients. These colleagues pick the right time to invest in organizations with strong fundamentals: superior products and/or services, strong financial operations and management teams with vision, discipline and a commitment to the core values that differentiate them from the pack. Looking at Messiah College through this perspective leads one to the conclusion
that now is the best of times to invest in Messiah College. Messiah College has been a great steward of its financial resources. The strength of our financial operations and resources have been independently validated by a national public accounting firm, education industry accreditors and a debt-rating agency. A key component of our financial soundness is the fiscal discipline of the management team toward the objective of maintaining the affordability of higher education for our students and their families. This objective has been undergirded by the faithful gifts from many individuals, foundations and corporations to Messiah College. Finally, the Trustees and senior leadership of Messiah College, together with its excellent and committed faculty and staff, work diligently to fulfill the mission of this great institution: to educate men and women toward
maturity of intellect, character and Christian faith in preparation for lives of service, leadership and reconciliation in church and society. The vision to create relevant, impactful educational and service opportunities; the discipline to strive for integrity and excellence in every aspect of campus life; and the commitment to the core values of Christian faith distinguish Messiah College as an institution worthy of your trust and financial support. Proverbs 3: 9-10 says, “Honor the Lord with your wealth, with the first fruits of all your crops; then your barns will be filled to overflowing, and your vats will brim over with new wine.” So, now is the best time to invest in Messiah College and to reap the rewards from the life-changing impact of this institution on its students, our communities and the world. —K en Moreland, Trustee, Chair of Finance Committee
Scholarships THE FOLLOWING SCHOLARSHIPS, ESTABLISHED DURING THE 2015-16 ACADEMIC YEAR, ARE AN INVESTMENT IN THE LIVES OF STUDENTS THAT WILL YIELD FRUITFUL AND LASTING RETURNS.
691 63 30
first-year students (266 male, 425 female; 38% male, 62% female) percentage of students from Pa.
international students from 15 different countries
• Richard S. and Ann B. Barshinger Scholars Program • Boyer Legacy Award • Allen & Rhoda (Denlinger) Carr Business Scholarship Award • Terry L. Earhart Memorial Award • Promising Engineer Scholarship Endowment • Norma Gotwalt Scholarship Endowment • Robert A. Hess Humanities Scholarship Endowment • Rick and Marcy High Scholarship Endowment • Gerald and Marilyn Miller Music Scholarship • Chuck and Ginny Pearson Scholarship Fund • Dr. & Mrs. Larry Sollenberger Pre-Med Endowed Scholarship Fund • Anita Voelker Scholarship Fund for Research in Literacy Education • Eugene D. Von Rosenberg Endowed Scholarship Fund • Joyce M. Heim Wert Organ Endowed Scholarship Fund in Loving Memory of Kevin L. Wert • Yeatts Vision for Ministry Scholarship
G R OW T H O F F I N A N C I A L- A I D G R A N T S
$35 $30 $25 in thousands
MEET THE CL ASS OF 2019
$20 $15 $10 $5 $0 2001
2004
2007
2010
2015
SOURCE: INFO FROM GAAP P&L
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FINANCIALS
2015
2014
2013
88,024 (34,186) 53,838 862 3,094 2,622 6,803 997 3,692 20,693 92,601
84,673 (32,653) 52,020 1,416 2,205 1,995 6,712 798 3,907 21,865 90,918
32,994 9,013 16,181 2,396 17,023 13,530 91,137 1,464
31,634 8,793 15,704 2,047 16,845 13,023 88,046 2,872
REVENUES (IN 000S)
Student tuition and fees 90,254 (36,039) Less, financial aid 54,215 Net tuition and fees 982 Governmental grants 2,848 Operational gifts and grants 2,179 Capital gifts 7,075 Endowment returns designated for operations 643 Investment income 3,516 Other 21,656 Auxiliary services 93,114 Total operating revenues
58%
Net tuition and fees
1% Investment income
Revenues 2014-2015
1% Govt. grants 2% Capital gifts
fiscal year
EXPENSES (IN 000S)
3% Operational gifts and grants
4% Other
8% Endowment
returns designated for operations
Instructional Academic support Student services Public service Auxiliary services General institutional support Total operating expenses Net operating income/(loss)
23%
Auxiliary services
32,402 9,438 16,944 2,273 16,696 14,191 91,943 1,170
N O N O P E R AT I N G R E V E N U E S , E X P E N S E S A N D OT H E R C H A N G E S ( I N 0 0 0 S )
35% Instructional
Expenses 2014-2015
3% Public service
1,501 Endowment and life income gifts Endowment investment returns, net 18% Auxiliary (7,823) of amount designated for operations services (174) Change in value of beneficial interest in perpetual trusts — Other non-operating income 16 Investment return on trusts and gift annuities Change in value of split interest agreements (Trusts and CGA’s) (364) Total nonoperating revenues, expenses and other changes (6,844)
3,210
2,053
9,969 578 (38) 1,673 (1,567) 13,825
1,796 49 (207) 945 (193) 4,443
(5,674) 249,965 244,291
15,289 234,676 249,965
7,315 227,361 234,676
Total changes in net assets Net assets, beginning of year Net assets, end of year
fiscal year
10%
Academic support
16%
Supporting services, institutional support
18%
Student services
“ God has provided me with the financial resources to be in an environment where I can grow closer to him. The best part about seeking God is that he seeks you, too.” — Kelly Hopkins ’18, engineering major
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FINANCIALS
DONOR PROFILE
CHRIS ’79 & HEIDI BINGAMAN ’80 GIVING BACK, GIVING NOW Chris ’79 and Heidi Bingaman ’80 have been an integral part of Messiah College for more than 35 years. They are both alumni of Messiah and two of their four daughters, Emily ’05 and Lindsey ’08, attended here, as well. They have hosted informational events on behalf of the College and have served as institutional ambassadors in the upper Susquehanna Valley where they live. Currently, Heidi is on the Messiah Board of Trustees where she is an active member of the Committee on Advancement. Both served as former chairs of the Parent Council. In that role, they were instrumental in launching the Good Samaritan Fund, which is a resource for students who encounter unexpected financial distress during their time at Messiah. This vital fund often has been the bridge that permits students to remain at Messiah despite unanticipated financial hardship. Bingaman and Son Lumber, Inc. (BSL), – Chris’s family’s business – has long been a benefactor of Messiah College through donations of lumber for various campus projects, including the High Center for Worship and Performing Arts and the upcoming Fitness/ Wellness Center. Recently, the couple established the Bingaman and Son, Inc. Scholarship Endowment, which benefits children of BSL employees who wish to attend Messiah College. In addition, alumni of the Northumberland Christian School may also receive the scholarship if no current BSL-affiliated students are attending Messiah at the time. The Bingamans deeply value the Christian educational mission of Messiah and are grateful for the opportunity to support other families in their community who wish for their children to attend Messiah. We are so thankful to them for their continued support of our students through this scholarship fund and through their faithful generosity over many years. 1 8 | FA L L 2 0 1 5 • T H E B R I D G E • M E S S I A H C O L L E G E
2015
2014
2013
33,260 97,858 131,124 (4.12%)
33,242 103,523 136,765 10.72%
27,567 95,957 123,525 6.89%
13,210 1,687 4,736 163 591 1,360 137,692 8,992 2,787 595 3,995 134,981 310,789
14,809 1,603 5,080 156 804 767 144,544 9,890 2,855 3,901 4,169 131,272 319,850
13,012 1,929 4,024 157 796 678 131,954 9,140 2,667 3,592 134,206 302,155
6,260 1,613 146 1,109 7,341 1,499 43,372 2,410 2,748 66,498
5,517 1,682 123 1,130 7,788 1,819 46,839 2,383 2,604 69,885
6,032 1,282 119 923 7,143 1,677 45,459 2,376 2,468 67,479
196,812 14,896 32,583 244,291 310,789 (5,674)
203,213 15,219 31,533 249,965 319,850 15,289
195,503 11,568 27,605 234,676 302,155 7,315
S U M M A R Y S TAT E M E N T O F E N D OW M E N T F U N D S ( I N 0 0 0 S )
Donor endowment Board-designated endowment Total endowed funds Endowment investment return ASSETS (IN 000S)
Cash and cash equivalents Notes and accounts receivable, net Promises to give, net Interest receivable Inventories Prepaid expenses and other assets Investments Assets held in trust Loans receivable - students Deposits with trustee under debt agreements Beneficial interest in perpetual trusts Property and equipment, net Total Assets LIABILITIES AND NET ASSETS (IN 000S)
Liabilities: Accounts payable and accrued expenses Student deposits Funds held in custody for others Deferred revenue Annuities payable Funds held in trust for others Long-term debt U.S. government grants refundable Other Liabilities Total Liabilities Net assets: Unrestricted Temporarily restricted Permanently restricted Total Net Assets Total Liabilities and Net assets Total Change in Net Assets MESSIAH COLLEGE NET ASSETS
2007 2009 2011 2013 2015 0
$50
Unrestricted net assets
$100
Temporarily restricted
$150
$200
Permanently restricted
$250
Millions
MESSIAH’S DONOR RECOGNITION SOCIETIES ARE DESIGNED TO THANK OUR MANY GENEROUS DONORS WHO INVEST THE RESOURCES THAT GOD HAS ENTRUSTED TO THEM IN THE STUDENTS OF MESSIAH COLLEGE.
FINANCIALS
LIFETIME SOCIETIES M E S S I A H L E G AC Y
Lifetime cumulative giving totaling $10,000,000 or more Leonard Fry† Calvin G. & Janet C. High* Abram† & Gladys† Mellinger MESSIAH TRUST
Lifetime cumulative giving of $1,000,000 to $9,999,999 Vernon E. & Faye R. Anderson Ernest L.† ‘48 & Kathryn G. (Tyson) ‘46 Boyer Brethren in Christ - Cooperative Ministries Covenant Fund Conestoga Wood Specialties Norman & Elizabeth M. Hahn* Doorstep Ministry Foundation The Criste Family Harold H.† ’37 & Mary Elizabeth (Hoover)† ’40 Engle Estate Charles F. & Ann E.† Frey* Emerson C.† ‘57 & May† Frey* Larry E. & Lois A. Gladfelter* Harry R. Hitchcock† William M.† & Lucille M.† Hollinger David G.† & Beatriz A.† Howe Richard† & Louise K.† Jordan* & Estate
Messiah’s percentage of giving comes from…
23.95% 22.61% Foundations
Trustees
Josiah W. & Bessie H. Kline Foundation The Kresge Foundation Ralph S. & Dorothy Larsen* Lilly Endowment Inc. Martin’s Famous Pastry Shoppe James A. & Donna F. Martin* McCormick Family Foundation W. Edwin† & Miriam† Naugle & Estate George A. & Barbara J. Parmer* D. S.† & Helen† Poorman & Estate Maurice E.† & Dorothea I.† Shaffer & Estate John E.† & Ida† Sollenberger & Estate The Stabler Foundation Donald B.† & Dorothy† Stabler Leroy M. ‘55 & Eunice (Frey) ‘58 Steinbrecher* The Whitaker Foundation John L.† & C. Jeanette† Witmer & Estate World Vision Inc. THE PRESIDENT’S CIRCLE
Lifetime cumulative giving of $250,000 to $999,999 Association of Independent Colleges & Universities of Pennsylvania M. Louise Aughinbaugh Estate Quentin Berg Trust Francis H. Berg† John A. Blessing Foundation Marion Barker Burr† & Estate David E.† ‘61 & Jean Byer Asa W.† ‘16 & Anna E. (Kipe)† ‘16 Climenhaga & Estate J. Harold Engle ‘58* Melvin E.† ‘48 & Vivian Eyster* Richard F. Fake† ’37 & Estate C.J.† & Harriet† Fredricksen S. Johannah Gearhart† Estate General Electric Foundation
17.45% 15.9% Alumni A
Current & Former Parents
11.63%
Community Friends
3.97%
HARSCO Corporation Scott A. ’89 & Gaye Y. Heintzelman* The High Foundation Evert C.† & Mildred S.† Hokanson & Estate George C.† & Patricia† Hoopy Lowell D. Hoover† ’40 & Estate Clyde W. & Barbara A. Horst* D. Ray ‘48 & Audrey (Fisher) ‘50 Hostetter* Clarence W. Hottel Sr.† & Estate Lawrence L. & Julia Z. Hoverter Charitable Foundation Randall B. ‘66 & Judy G. Inskip Johnson & Johnson Family of Companies Richard E. ‘70 & Sharon N. Jordan W. M. Keck Foundation W. Wayde† & Glenda Kelly Allen F. Knouse ‘68 Leon E.† & Margaret M.† Kocher Jeffrey F. ‘74 & Leslie (Lustig) ‘75 Lehman Wayne A. & Martha G. Marcho* Aaron J. ‘48 & Jean Martin Stephen W. ‘78 & Jana M. (Shultz) ’77 McBeth Jacob & Ada Miller Trust Kenneth V. & Renee A. Moreland* William L.† & Geraldine† Murray Paul W. Nisly* Galen M. ‘48 & Beulah L.† (Buckwalter) ‘49 Oakes* P.B.S. Coal, Inc. Pew Memorial Charitable Trusts Marlin & Nancy† Riegsecker Maynard & Carolyn Sauder Sawyer Products Oscar F.† & Pauline M.† Shafer Estate Jerry Tyson† & Hilary M. Simpson L.B. Smith Estate Foundation Inc. Robert H.† ‘42 & Marilyn L. (Byer) ‘51 Smith John B.† & Mary V.† Sollenberger & Estate Ellis R.† & Louise P.† Speakman The John Frederick Steinman Foundation Stover Family Foundation Marlin H. & Doris Ann Thomas* Kermit Thomas† & Estate Turkey Hill Dairy Daniel Vollmer† Estate Franklin H. & Ruth L. Wells Foundation Amelia C. Winter† & Estate Leslie K. & Marian H. Witmer* Kenneth E.† & Minta Wolfe Anonymous Donors (4)
3.77%
Organizations Corporations 0.12% 0.61% Churches Sponsorships
& Govt grants
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*M essiah College thanks the parents of our current and former students who continue to generously support the College’s ongoing education mission. † Messiah College gratefully acknowledges the generosity of donors who are deceased.
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FINANCIALS
N E W H E R I TAG E S O C I E T Y M E M B E R S
DONOR PROFILE
Thank you to those who became members of the Heritage Society, now with 551 members, during the 2014-2015 fiscal year. The Heritage Society was established to appropriately thank those who have included Messiah College in their wills, created a deferred gift arrangement, or established an endowed fund. Their dedication is greatly appreciated. John D. ’84 & Lisa M. (Brooks) ’85 Sands Mark A. ’91 & Dawn (Snyder) ’92 Templeton Dale J. ’81 & Gail M. (Purcell) ’82 Tshudy Cynthia A. Wells Jerry & Denise Wenger Merle & Joyce Wert Anonymous (2)
JOANNA BENNER ’17
Cheryl A. Dorman ‘77 Michael & Lori S. (Gladfelter) ’87 Dudney Brad E. & Carol Engle Richard L. & Martha J. High Mary A. (Lehman) Kauffman ‘47 Todd F. ’78 & Marian K. (Engle) ’80 Lehman Rodney L. ’83 & Cathy S. (Light) ’80 Musser
B OA R D O F T R U S T E E S | 2 0 1 5 –2 0 1 6
George A. Parmer, chair, Harrisburg, PA Craig E. Sider, vice chair, Secaucus, NJ Todd F. Lehman ’78, secretary, Mountville, PA Rim A. Hinckley ’83, treasurer, New York, NY Barbara Avery, Safety Harbor, FL Larry Bashore, Mechanicsburg, PA Heidi G. Bingaman ’80, Kreamer, PA Odvard Egil Dyrli, Tolland, CT Linda D. Eremita, Pittsburgh, PA Carole Forker Gibbons ’60, Mechanicsburg, PA Richard L. Godshall, Souderton, PA
Anthony H. Hahn, East Earl, PA Scott A. Heintzelman ’89, Mechanicsburg, PA Sally Hoober, Paradise, PA Joachim J. Huerter, Annville, PA Linden K. Hustedt, Placida, FL Richard E. Jordan II ’70, Mechanicsburg, PA Ronald M. Katzman, Camp Hill, PA J. Gary Langmuir, Manheim, PA Emerson L. Lesher ’74, Mechanicsburg, PA James A. Martin, Chambersburg, PA Stephen W. McBeth ’78, Camarillo, CA
Kenneth V. Moreland, West Friendship, MD Barbara G. Moses, Sicklerville, NJ Rodney L. Musser ’83, Pomona, CA Linda R. Pheasant, Wormleysburg, PA Marlin Riegsecker, Upland, CA Alan Robinson, Dillsburg, PA Anthony J. Schiano, Duck, NC Eunice F. Steinbrecher ’58, Greenville, OH John C. Wagner, Jr., Phoenix, MD Dr. Jerry L. Wenger, Bird in Hand, PA
RICHARD & SHARON JORDAN HEARTS FOR SERVICE Richard (“Rick”) and Sharon Jordan have been involved in the life of Messiah College for a long time. Rick attended Messiah in the late 1960s as a student. He later became a member of the Messiah Board of Associates, a volunteer leadership group organized to help promote the mission of Messiah in the local community. He was the co-chair of the 1996-1999 Campaign for the Sciences, which led to the renovation of Kline Hall and the construction of the Jordan Science Center. The Jordan building was named in honor of his father, the late Richard E. Jordan Sr., a longtime Trustee of Messiah College. In 1999, he became a Trustee himself. The couple genuinely care for others. While their family owns L.B. Smith Ford/Lincoln dealership in Lemoyne, Rick is also CEO of Smith Land and Improvement Organization. In addition to his service at Messiah College, he has served on boards at Holy Spirit Health System, Harrisburg Area YMCA and Goodwill Industries. Sharon is deeply active in their church. They are valued members of the local and Messiah College communities. In 2014, Rick graciously agreed again to provide key leadership for a new fundraising effort for Messiah College. He is co-chair of the Campaign for Wellness, which includes a new fitness center, expanded gymnasium areas and enhancements to other indoor athletics facilities. He and Sharon have provided a significant leadership gift for this exciting new project, which will break ground in the spring. The Jordans are enthusiastic supporters of Messiah students and great ambassadors for the College. We are grateful for the faithful generosity of their financial resources and investment of time.
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FINANCIALS
A LU M N I C O U N C I L | 2 0 1 4 –2 0 1 5
Lindsay Acornley Keets 2010 Sandy Acornley 1978 Sara Bruton 2009 Jason Chiodi 1997 Doris Crider 1960 Rudy Crider 1971 Kris Deardorff 1988 Ethan Eshbach 2014 Craig Flemmens 1993 Chip Herrmann 1977 Todd Holtzman 2008 Mark Hopkins 1994 Elizabeth Lins Shoenfelt 2002 Josh Manifold 2002 Scott Martin 1991 Karl McDonald 1979 Louisa Mfum-Mensah 2012
Maris Miller 2008 Michael Miller 1968 Sarah Polonus 2013 Brendan Post 2004 Kurt Skook 1992 Michael Smith 1993 Charles Starr 1968 Martha Starr 1968 Ken Stern 1968 Lois Stern 1970 Ben Stolz 2010 Gabriela Paniagua Stoltz 2010 Kathleen Stuebing 1963 Gerald Wingert 1947 Gerald Wolgemuth 1958 Ruth Wolgemuth 1960
DONOR PROFILE
RACHEL WALSH ’91 & FRANK K. MEARS MEMORIAL SCHOLARSHIP HONORING PAST, FUTURE The Rachel Walsh & Frank K. Mears Memorial Scholarship at Messiah College was founded in 1994 to help memorialize the qualities embodied by Messiah College alumna Rachel Walsh Mears ’91 and to support women who pursue higher education as an adult or non-traditional student. Throughout a promising life cut tragically short, Mears was a strong, intelligent woman who forged her own way. After completing a year of college immediately after high school, she joined the U.S. Air Force, where her discipline, resolve and resourcefulness propelled her to the rank of sergeant. During a six-year tour of duty, she traveled the world through deployments in Germany, Australia and Alaska. When she returned home, Mears enrolled in Messiah College to study accounting. Her maturity, work ethic and resilience helped advance not only her student experience, but also her job prospects upon graduation. Earning a bachelor’s degree in accounting,
she took a position as an auditor at global business consultant KPMG, where she met her husband-to-be Frank Mears, an information technology professional and entrepreneur. Married only 10 short months, the couple was killed in a car accident on the way home from a family gathering in 1993. In their honor, family and friends established a scholarship fund to benefit female accounting majors, with a preference for those who, like Mears, are attending college as adult students. The scholarship also seeks to support and promote women exhibiting many of the characteristics that defined Mears, including moral and intellectual fortitude, compassion, humor, athleticism, selflessness and leadership. Messiah College is profoundly grateful to donors such as the Walsh and Mears families who choose to honor the memory of loved ones by supporting the lives of current students. We continue to be deeply blessed by the couple’s impact on Messiah College and on our students.
H OW A R E C H A R I TA B L E G I F T S A L LO C AT E D BY P U R P O S E F O R 2 0 1 5 ( F I S C A L Y E A R)?
23.4%
24% Endowment
Restricted gifts and grants
7.7%
Messiah Fund
7.5% Unrestricted bequests 3.9% Designated budget 2.8% Govt. grants 1.7% Other
29.9% Building projects
“ Our institutional vitality...enables us to plan for a hopeful future in an increasingly pluralistic, fragmented and rapidly changing world.” — President Kim Phipps
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