2012 Air Force Museum Foundation Annual Report

2012 Annual Report

Air Force Museum Foundation, Inc.

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he Air Force Museum Foundation, Inc., is the IRS Section 501(c)(3) nonprofit organization dedicated to the development and expansion of the National Museum of the United States Air ForceŽ. Since its founding in 1960, the Foundation has raised more than $52 million dollars to fund construction of the permanent home for the Museum’s artifacts at historic Wright Field in Dayton, Ohio, as well as new exhibits and special programs.

Air Force Museum Foundation, Inc. 2012 Annual Report

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ike the threads in the cloth of our nation’s flag, the Air Force Museum Foundation is made up of several unique business units forming an integral weave supporting the National Museum of the United States Air Force®.

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he various businesses operated by the Foundation—the Museum Store, the Museum Theatre, Simulators, and the Valkyrie Café—enhance the Museum experience for more than 1.2 million annual visitors, while generating revenue for additional exhibits and programs. The Foundation also manages the Friends Membership program, 11,500 members strong at the end of 2012, and publishes a quarterly Friends Journal magazine with first hand accounts of combat and service. Special events funded by the Foundation, including the 70th Doolittle

Tokyo Raiders Reunion in 2012, enable the public to experience aviation history at the world’s largest and oldest military aviation museum.

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ith the exciting acquisition in August 2012 of NASA’s first space shuttle crew compartment trainer, the Museum is again poised to expand the Air Force story with the Foundation’s help. Plans are underway for the addition of a fourth building which will include new exhibit space dedicated to three important elements in the history of the Air Force: Space Gallery, Presidential Aircraft Gallery, and Global Reach Gallery.

New technologies and classroom space within the galleries will facilitate and support expansion of Science, Technology, Engineering and Math (STEM) educational programs for the nation’s youth.

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espite the challenges posed to cultural institutions in the current economic climate, the Foundation has secured $38 million of the estimated $48 million for the fourth building project. We are grateful for the generous support of our members and for the donations of our friends and corporate sponsors around the country which have enabled us to continue our support for the Museum. The future generation of American youth is waiting to write the next chapter of aviation and aerospace history.

Our Vision

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ore than 100 years ago, a new dawn for mankind emerged through the imaginative and scientific work of two brothers from Dayton, Ohio, and the dream of flight became a reality. Though not formally educated beyond high school,

the Wright brothers “were lucky enough,” Orville once remarked, “to grow up in an environment where there was always much encouragement to children to pursue intellectual interests.”

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he unprecedented opportunity to expand STEM education in the Museum’s fourth building will be a tribute to the ever-inquiring minds of Orville and Wilbur, and to the importance of investing in STEM education for the nation’s youth, so that they will pursue their own careers in aviation and aerospace.

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rom special learning nodes in galleries, to an up-close look at a space shuttle interior, the fourth building will inspire and educate, while preserving our rich Air Force heritage for the next generations.

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urrent Chairman of the Board of Managers, Air Force Museum Foundation, Lt. Gen. (Ret.) Richard V. Reynolds, USAF

From the Executive Director of the Air Force Museum Foundation:

A Message from the Chairman

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reetings and salutations from your National Museum of the United States Air Force® and from your friends at the Air Force Museum Foundation. One word can summarize 2012:Transition. In January we embarked on a new direction for the Air Force Museum Foundation; Foundation 2.0—building on our legacy—and improving our capacity to succeed at fundraising. The impressive numbers below highlight some of the Foundation’s biggest accomplishments from the past year, but those numbers don’t tell the whole story.

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o learn the stories behind the data and discover more about how we connect donors, Friends, and aerospace enthusiasts around the world to support the Museum, dive into our Annual Report and explore our exciting Business Unit activities.

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xecutive Director of the Air Force Museum Foundation Col. (Ret.) Larry “Scoop” Cooper, USAF

$7,125,554 2012 Foundation Gross Revenue $2,926,510 2012 Foundation Net Income 350,000 Total number of transactions that the Museum Store, Theatre, and Café completed in 2012

$42,800,000 Net worth of the Foundation at the end of 2012 Stars awarded to the Foundation (highest possible)

by Charity Navigator, America’s premier independent charity evaluator

Over $52,000,000 Amount gifted to the Air Force since 1960 86 Percent Amount of the existing facility that was directly funded by Foundation business and revenue income investment and donations

Dear Friends of the National Museum of the United States Air Force,

Let me begin with hearty thanks for your stalwart and enduring support of the Air Force Museum Foundation and National Museum of the United States Air Force® over the past year. Your participation as a Friend is the bedrock on which we are building a better and stronger Foundation.

The past year brought important changes in Foundation staffing, organization and operations. As 2012 began, Colonel (retired) Larry H. “Scoop” Cooper took charge as our first Executive Director, and after an intensive effort to reset the Foundation strategy, he undertook the modernization of our financial management systems. This action quickly improved our ability to manage business income and investments, as well as donor pledges and contributions. He drove authority and accountability down to lower levels in the organization, which yielded a number of innovations suggested by the Foundation team, several of which were quickly implemented and are producing excellent results at both the bottom line and in Museum visitor satisfaction. New dynamic flight simulators, member appreciation nights, upgrades to the Friends Journal and Museum Store, “dog tag” sales and a major renovation of the Museum’s giant-screen theatre are among those positive changes.

Fundraising for construction of the planned Museum 4th building continued to be a major focus in 2012, alongside ongoing support of special events like the April 2012, 70th Doolittle Raider Reunion. Led by the Chief Development Officer, our “Expanding the Legacy” campaign engaged businesses, other foundations and individual donors all across the nation, and abroad. Early May saw the transition from a behind-the-scenes, private campaign, to a public one, and the spectrum of fundraising efforts grew commensurately. And like the innovations in our business operations described above, the Development Office implemented exciting new ideas to win donor support—ideas like Legacy Data Plates, cellular phone text message donations, regional fundraising receptions, donor recognition events, increased membership levels and benefits, more visible planned giving options and absolutely first-class, USAF-approved donor recognition in the Museum galleries.

In spite of strong economic headwinds, we have achieved great results and have declared the “final approach” phase of the campaign. The year ahead will be pivotal for the 4th building project, so I ask for your continued support—and you can count on your Board and Foundation staff to do our level best to see this campaign through to successful completion.

I genuinely hope you share the pride in what the Air Force Museum Foundation achieved in 2012, for the National Museum of the United States Air Force®, and ultimately for the visitors from around the globe, who come to Wright-Patterson AFB to walk the galleries and learn the stories of Airman across the ages. The year 2013 will certainly present new challenges, and most likely tough tests of our flexibility and creativity. But I am certain that it will bring new exciting opportunities as well, and I look forward to reporting in these pages even more impressive and exciting results for 2013.

With utmost respect and gratitude,

Lt. Gen. (Ret.) Richard V. Reynolds, USAF Chairman, Board of Managers Air Force Museum Foundation, Inc.

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ormer Air Force Museum Foundation, Inc. Chairman Board of Managers (May 2010 May 2012), Charles Faruki, left; and above, speaking with Board member Patrick McGohan (Treasurer, AFMF, May 2008-May 2011, Vice-President, May 2011-May 2012)

Foundation Means Business/Museum Store

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he Museum Store is an integral part of what the Foundation is and does. The store is one of the first sights that our visitors experience, and it proudly offers a wide and unique selection of Air Force, aviation, and military products as well as a book section that is famous worldwide for its vast inventory of aviation-themed books.

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was an exciting and busy time for the store, starting on a high note with the National Reconnaissance Office Hexagon satellite opening and continuing with the 70th Anniversary of the Doolittle Tokyo Raid. This banner event generated

$134,000 in revenue during that week alone!

16 The Museum Store is

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pace Fest and guest lectures provided us with the opportunity to generate revenue and make new Friends!

run by a friendly, hardworking, and dedicated staff.

$2,507,089 Gross Revenue

The Store completed over 108,750 transactions for satisfied customers, young and old.

$515,920 The Museum Store is home to a world-famous aviation book section with over 2,500 different titles available in 2012.

$41,222 The Museum Aircraft book is the best-selling item in the Store.

54,505

Postcards sold in a year.

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hief of Museum Store operations, Melinda Lawrence

Foundation Means Business/Theatre Operations

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was a year of change for the Air Force Museum Theatre.

The Foundation opened the theatre in 1991 with a leased projection system—a business model which, over time, lost its viability. In 2012 a committee was tasked with researching and planning an upgrade from the film-based IMAX Theatre.

3,450,000

feet of film projected since 1991

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fter reviewing many options, proposals, and companies, the committee decided to partner with D3D Cinema to install a stateof-the-art digital projection system along with a custom sound system.

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lans were also completed for the renovation of the Theatre’s interior which included removing two rows of seats to build a stage, replacing the remaining seats and flooring, and adding a new giant screen. Our last IMAX film performance was on December 31st, and the renovation began on January 2, 2013.

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n May 2012, personalized dog tags were added as a new revenue source. For the investment of an embosser and supplies—and working with existing staff—this has been a boost to our revenue stream. Personalized dog tags make a great gift for visiting military to their children. For some it brings back memories of their service; for others it is just a fun reminder of their Museum visit.

33,000 dog tags sold

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n June 2012, we entered into a partnership with Pulseworks to add two 360⁰ Interactive Simulators to complement our Morphis MovieRide Simulator. These new simulators are rider controlled and simulate airto-air combat. Our Morphis MovieRide remains a favorite for families and our younger visitors.

382 air-to-air targets killed in

the first annual Air Legacy competition

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heatre staff member makes personalized dog tags for two enthusiastic Museum visitors.

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he new simulators are setting the pace for visitor participation. These young pilots prepare for take-off and aerial combat.

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lying the new screen onto the newly renovated theatre structure prior to re-opening in April 2013.

Photo courtesy of Mike Ullery, © 2012

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old out theatre crowd enjoys Reel Stuff Film Festival screening of “Top Gun” remastered in 3D.

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ir Force Museum Theatre staff (from left), Luke Jesperson, Mary Bruggeman (Chief of Theatre Operations), Mike Andrews, Lamar Warfield, Eric Henry, Danielle Walker, Jayne Evans

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tate-of-the-art digital projection makes the Air Force Museum Theatre the most up-to-date theatre in the midwestern USA.

Foundation Means Business/Valkyrie Café

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he Valkyrie Café is the place to dine at the National Museum of the United States Air Force®. In the past year, the Café served over 110,000 guests and over 40,000 box lunches to school and other special groups.

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anaged by the 88th Force Support Squadron as part of the Air Force Morale, Welfare and Recreation program, the Café contributed $20,000 net revenue to the Foundation coffers. Special initiatives are underway by a Café Improvement Product team to enhance overall performance and customer satisfaction.

110,000 Guests served in 2012.

40,000

School and special groups served in 2012.

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alkyrie CafĂŠ managers, Juan Vega, Donald Halferty, and Gary Beisner

Foundation Means Business/Legacy Data Plates & Membership

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very military aircraft traditionally has a data plate, which identifies the builder and includes the aircraft model designation, serial number, and other important information. This concept was adapted for what is today the Legacy Data Plate Wall of Honor near the public entrance of the Museum.

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he National Museum of the United States Air Force® has the responsibility to tell the stories of heroism, sacrifice, and duty.

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he Legacy Data Plates program gives everyone the opportunity to contribute towards the fulfillment of the Museum’s mission: We are the keepers of their stories.®

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n May, the Air Force Museum Foundation held the first annual public dedication and ribbon cutting ceremony for the Legacy Data Plate Wall of Honor.

492

The number of Legacy Data Plates sold since the inception of the project in early 2012

$110,000

Data Plate revenue contributed to Air Force Museum Foundation

562

Average number of Friends Membership Renewals that the Foundation handles per month

11,500 Friends

Membership

by Revenue by Level 2012 Membership Revenue by Level

Number of active members that support the expansion of facilities and programs at the National Museum of the United States Air Force®

OTHER 0.22%

LIFE 18% AVIATOR ACE 1%

WINGMAN

EAGLE 2%

FLIGHT LEAD FALCON 3%

FALCON AVIATOR 51%

EAGLE ACE

FLIGHT LEAD 11%

LIFE OTHER

WINGMAN 14%

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long the front wall of the Early Years Gallery, the latest panel of Legacy Data Plates is installed in April 2013.

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useum and Foundation volunteer Joe King and his father John King are now permanently honored on the Legacy Data Plate Wall of Honor.

Foundation Means Development

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t. Gen.(Ret.) Reynolds accepting Boeing Company’s donation of $5 million dollars.

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r. Charles Faruki, accepting United Technologies Corporation’s donation of $1.2 million dollars.

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he host committee for the Colorado Springs fundraising event on November 10, 2012.

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ttendees at the Colorado Springs fundraising event.

t. Gen. (Ret.) Reynolds accepting a $10 million donation from Lockheed Martin Corporation, with Mr. Ron Rand, Senior VP, Communications, for Lockheed Martin, and U.S. Congressman Steve Austria.

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orporate donors to the Expanding The Legacy Campaign, will join an elite group of national and international companies committed to preserving the heritage of American airpower and inspiring future generations to technological greatness.

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hese great corporations have taken a leading role in supporting the expansion of the legacy of the United States Air Force and its Museum.

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ir Force Museum Foundation Chief Development Officer, Mona Vollmer

Lockheed Martin $10,000,000 Boeing $5,000,000 United Technologies $1,200,000 Northrop Grumman $250,000 Rolls-Royce $250,000

Foundation Means Support of Museum Special Events

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he major special event in 2012 was the commemoration of the 70th anniversary of the Doolittle Tokyo Raid. On April 18, 1942, 80 men led by Lt. Col. James H. “Jimmy” Doolittle, achieved the unimaginable when they took off from an aircraft carrier on a top secret mission. Four of the five surviving Raiders—Lt. Col. Richard E. Cole, Lt. Col. Edward J. Saylor, Maj. Thomas C. Griffin and Staff Sgt. David J. Thatcher— attended reunion activities at the Museum, giving the public an opportunity to celebrate these World War II aviation heroes through a memorial service, banquet, lectures and other activities.

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s a special tribute to the Raiders, 20 B-25 Mitchell Bombers traveled from across the nation for a static display and formation flight at the Museum.

$132,331

The amount the Foundation raised to support special events at the National Museum of the United States Air Force® in 2012.

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he Foundation supplied key financial and logistical support to the 70th Doolittle Reunion, helping to support everything from the food that the B-25 crews ate to the gas they used in the largest gathering of Mitchell Bombers in Museum history.

Foundation Means Support of Education and Special Events

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oundation support covered the full spectrum of Museum programs—from monthly Family Days to Space Fest that was mentored by Foundation Board Member, and former astronaut, Col. (Ret.) Mark Brown, USAF.

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ell-known organizations brought special events and exhibits to the Museum, including the Air Force Recruiting Service’s Project Supercar: X-1, a fully customized Ford Mustang that focuses on power and speed with a central drive system and a real F-16 ejection seat.

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s always, veterans organizations enjoyed spending time at the National Museum of the United States Air Force®. The Ohio Veterans Hall of Fame inducted 15 members into the Class of 2012 during a ceremony in November. Nearly 80 veterans organizations held reunions at the Museum in 2012.

$111,187

That is the amount of money the Foundation applied to support a multitude of educational events throughout 2012.

Col. (Ret.) Mark Brown, USAF, member Foundation Board of Managers and former shuttle astronaut.

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he world-famous Budweiser Clydesdales were on display at the Museum in November during a tour to thank the troops for their service.

Photo courtesy of Kim Keegan © 2012

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he National Museum of the United States Air Force® received delivery by “Air Mail” of NASA’s first space shuttle crew compartment Trainer (CCT-1) on August 22, 2012. It arrived on the last of a line of specially designed, oversized cargo aircraft NASA has used to transport various components of its space program. The CCT-1 was used to train shuttle astronauts from STS-1 through STS-132.

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n August 23 the CCT was unloaded and transported into the Museum.

CCT-1 was shrink-wrapped for transit by NASA complete with a very large shipping label affixed to the wrapping.

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he CCT was placed on display in the Cold War Gallery; however, it will eventually become a major exhibit of the Space Gallery in the Museum’s planned fourth building.

Work is underway to build a full-scale mock-up of the payload bay and develop other new exhibits with an emphasis on Science, Technology, Engineering, and Math (STEM) programs.

When completed, the CCT exhibit will allow the public to look into the cockpit and mid-deck areas of a shuttle and learn how astronauts trained for their missions.

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t. Gen. (Ret.) John Hudson, USAF, Director of the National Museum of the United States Air Force®, speaking at the VIP reception for the CCT arrival.

Air Force Museum Foundation Financial Highlights/2012

2012 Revenue

$7,125,554

Museum Store $2,507,089 Theatre $922,392 Café $70,604 Membership $519,918 Investment Income & Gains $506,427 Development $2,579,550 Other Operations $19,574

2012 Expenses

$4,199,035

Cost of Goods Sold $1,179,690 Compensation& Benefits $1,472,076 Theatre Operations $215,673 Museum Program Support $208,573 Café $47,982 Advertising/Marketing $201,592 General & Admin $664,014 Investment, Other & Depreciation $209,435

2009 2008

2012 Funds Raised

2012 Funds Expenses

$2,626,224

$208,573

In-Kind Donations $91,325 Building Fund $1,982,220 Special Event Sponsorships $107,860 Education & Memorial Park $33,118 Other Donations $411,701

Events $95,513 Memorial Park & Education $23,086 Public Affairs $55,920 Other Expenses $12,060 Volunteers $21,995

2012 2010

2011

Financial Data stated is provided from the Independent Auditor’s Report of the Financial Statements for the years ended December 31, 2012 and 2011 per DELOITTE & TOUCHE LLP.

A publication of the Air Force Museum Foundation, Inc. Post Office Box 33624 Wright-Patterson Air Force Base, OH 45433-0624 937-258-1218 www.airforcemuseum.com foundation @afmuseum.com This is a private organization. It is not a part of the Department of Defense or any of its components, and it has no governmental status.