Concordia College Annual Report 2013-14

CONCORDIA COLLEGE 2013-14 Annual Report

Table of Contents Message from President Craft

2

Gifts to the College

4

Building Momentum

6

Endowment 8 Revenues and Expenses

9

College Highlights

10

Forming Relationships in the Holy Land

12

Following in the Footsteps of a Fulbright

14

Culture of Philanthropy

16

Enrollment 18 Board of Regents

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Dear Concordia Family and Friends, Greetings to you from our bright, green, and active campus as summer rounds into September days of great expectation for a new Concordia year. What a summer it has been! Learners from all over the world on campus, young and not so young, and highly focused studies led by faculty and staff who have made our college plan – Whole Self, Whole Life, Whole World – a living document.

These leaders are looking at (1) discovery centered learning that integrates classroom experience with real life/real time application, (2) career readiness through building pathways for each student’s post-commencement success, and (3) faith and spiritual development that addresses the lived realities of young people seeking understanding and purpose.

Now approaching its 125th year, Concordia College abides in the mission so powerfully articulated by Dean Carl Bailey more than 50 years ago. A global liberal arts college of the church, we seek to influence not only our corner of the country, but the world, sending out thoughtful and informed graduates dedicated to the selfless service of neighbor that Martin Luther defined as the essence of the Christian life. We do so knowing that higher education, though deeply valued in the United States and around the globe, faces sharp challenges: demographic change, a still uncertain economy, new forms of competition, a complex price and cost model, and diminished institutional loyalties.

Yet in the midst of those challenges, we know that your loyalty – your love of Concordia and its transformation of young lives – remains a firm foundation for present and future. If a Lutheran were allowed to be proud, I would say that as president I am because of the amazing generosity you have shown in the year ended and represented in the report that follows. Our students and those who work with them are blessed by your partnership in mission.

You will see in the annual report a narrative of gifts to the college for 2013-14, a year in which we set a total goal of $12 million and by midyear had already exceeded it, closing the year at just over $14 million. You will see a new record for the Concordia Annual Fund, vital to the affordability of the college and to our capacity to respond to needs year by year. You will find an account of building projects completed and a critical new project underway for Concordia’s splendid science students and faculty. And an all-time high for the college endowment, breaking the $100 million dollar mark for the first time in our history.

In the latter section of the report, before key enrollment information, you will see the very best part: stories of why your devotion matters so much to our students and to the world in which they will thrive and serve. Here look for a Holy Land Orchestra Tour, student/faculty achievements on and off campus, a Fulbright legacy, and personal accounts of what giving can mean for donor and recipient alike.

Soli Deo Gloria.

William J. Craft President, Concordia College 2

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Gifts to the College Total gifts to Concordia College and Concordia Language Villages exceeded their fundraising goal for fiscal year 2013-14 by more than $2 million. Many alumni, parents, villagers and friends supported the Offutt School of Business, Jake Christiansen Stadium project, Lesnoe Ozero, the Russian Language Village, and endowment. In addition to these projects, renovation plans for the college’s science facilities (Ivers and Jones) continue to move forward.

The Concordia and Village Annual Funds, with the help of more than 8,118 donors, raised over $2.9 million for student and villager scholarships and other critical operational needs.

The Concordia College Legacy Scholarship Program secured approximately 60 scholarships. These scholarships provided over $300,000 in general scholarship awards.

Gifts by Source 2013-14

Gifts by Type 2013-14

(includes Concordia and CLV)

(includes Concordia and CLV)

Deferred Gifts at Gift Value $1,455,378

Parents 5.7% Corporations and Government 21.7%

The Concordia and Village Annual Funds $2,943,151

Alumni 37.4% Capital $3,382,576

Foundations and Fundraising Consortia 13.2% Friends 21.9%

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Unrestricted Bequests $113,981

ELCA and Church Organizations .1%

Total Giving for Concordia and Language Villages $14,077,009

Restricted Current Giving $1,361,866

Endowment $4,820,057

Total Gift Incomes (for Concordia and CLV) Fiscal Year

2014

$14,077,009

2013

$11,750,693

2012

$11,967,340

2011

$19,814,401* $10,786,157

2010

$5 million

$10 million

$15 million

$20 million

*launch of Offutt School of Business

Grants Concordia is launching a set of projects that will foster a culture of sustainability at Concordia and equip students with the tools they need to benefit people and maintain the health of the earth. This three-year sustainability initiative is made possible in part by a grant from the Margaret A. Cargill Foundation.

A grant from The Andrew W. Mellon Foundation is helping Concordia design new forms of language learning. This collaborative project between the college and the Language Villages will enhance Concordia’s efforts to engage students in global fluency.

5

Building Momentum Keeping our facilities up to date for the needs of our students and faculty has always been a priority at the college.

During 2013-14, we celebrated the completion of three major projects and started the upcoming science renovation project.

These milestones represent just a sampling of the good things happening at Concordia and Concordia Language Villages. None of these would be possible without the support and dedication of our donors. Thank you.

Update the Jake Bricks. Turf. Asphalt. It took all three and $5.6 million to improve athletic facilities near Jake Christiansen Stadium. The college will dedicate these updates and new facilities during Homecoming 2014.

More than 400 people – many of them families with an athletic legacy at the college – contributed to the project.

The three-phase venture included FieldTurf, asphalt parking lots, stadium upgrades, and a multi-sports Locker Room. Completion of the final phase – The Wayne and Beverly Thorson Athletic Center – occurred in spring 2014.

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Offutt School of Business Bill Gates was the keynote speaker at dedication festivities for the newly renovated Grant Center, home of the Offutt School of Business, in April 2013. Gates, an entrepreneur and philanthropist, discussed social entrepreneurship, an important element in the Offutt School of Business curriculum – and his presence kicked off an exciting year for the newly launched business school.

Students are now taking full advantage of the new facilities. They’re getting hands-on business experience at the BREW Café, an in-house coffee shop where students do everything from scheduling shifts and ordering supplies to pricing and product development. They are putting their investment skills to the test by participating in the Scheels Investment Fund where they work on a real stock portfolio.

Lesnoe Ozero Concordia Language Villages held a dedication at its Russian village, Lesnoe Ozero, in July 2013. The dedication recognized the completion of the great hall of Sankt Peterburg, the newly constructed main building at the entrance to the Village site. The overall project, which included two phases, cost $3.4 million.

Yury Y. Melnik, second secretary for the Embassy of the Russian Federation to the U.S., was a guest of honor for the event.

The Language Villages has operated a Russian language camp since 1966, but until 2005 it was run at a variety of leased spaces. Its permanent home was established on the north shore of Turtle River Lake after Concordia purchased and converted a resort.

Science Building – Upcoming With great support and successes behind us, we move forward on plans for our next project – updating the campus science facilities.

Renovating science facilities is a complex undertaking. Specialized equipment is necessary to support highly functioning labs and innovative teaching – spaces needed to deliver a 21st century science education.

Our vision for this project will cost $45 million. We have set an aggressive timeline to break ground by 2016. Our sense of urgency is driven by our enthusiasm. This project will position us for the future of education in the sciences, as well as student and faculty recruitment.

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Endowment Concordia’s endowment reached $101,651,000, an all-time high. Student scholarships, which receive 46.3 percent of funds spent from the endowment, is the largest category supported by it. Specific programs, such as faculty professional development, the Dovre Center for Faith and Learning, cultural events and academic lectures received about 26 percent of funds. About 27.7 percent of endowment funds spent this year supported the current operations, including endowed chairs and campus ministry programs.

Endowment Market Value $101,000,000 $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000

2001

2002 2003

2004

The college’s fiscal year ends April 30.

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2005 2006

2007 2008

2009

2010

2011 2012

2013

2014

Revenues and Expenses Operating revenue exceeded operation expenditures this year, reflecting careful attention to the financial health of the college. Tuition and fees provide the largest percentage of revenue. The college is thankful for support from individuals and businesses that provided 3 percent of the operating revenue for the year. As the college looks forward, it will continue to make a substantial commitment to scholarships and grants for students.

Expenses

Revenues Other Sources 2% Independent Operations 8%

Debt, Capital and Reserve 4% Academic Related 21% Scholarships and Grants 31%

Auxiliary Enterprises 13%

Academic Support 4%

Endowment Income 3%

Student Services 6%

Private Gifts and Grants 3% Government Grants 2%

Tuition and Fees 69%

Institutional Support 10%

Independent Operations 9% Auxiliary Enterprises 10%

Operation and Maintenace of Plant 5%

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College Highlights 1

Strengthening Global Lutheran Ties

Ten students accompanied Lutheran World Foundation representatives as they toured some of the nonprofit’s projects in Nicaragua. The group, led by religion instructor Adam Copeland, visited cooperatives and farms, meeting people who have become self-sufficient thanks to the help of LWR.

2

Research on Display

The annual Celebration of Student Scholarship held on campus expanded to a full-day event, showcasing research completed through the academic year. Students presented on topics ranging from gender and identity to technology.

3

Interfaith Interactions

Anastasia Young ’14 capped her Concordia experience by introducing the Dalai Lama, a supporter of interfaith dialogue, at the Nobel Peace Prize Forum in Minneapolis.

In addition, the campus student group Better Together received national honors for its work and Dr. Jacqueline Bussie, director of the Forum on Faith and Life, was chosen to join an elite faculty seminar on the teaching of interfaith understanding. The interfaith work on campus builds on the visit by Eboo Patel in 2012.

4

How Happy Are Cobbers?

Researchers set out to find how happy the Concordia community is and why. Dr. Darcie Sell, assistant professor of psychology, led the team of students, Alexandra Benson ’14 and Maureen Wieland ’14. Results showed that spirituality and community are key “happiness” factors.

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Happiness also was the theme for the second annual President’s Seminar and the 2013 Faith, Reason and World Affairs Symposium.

5

Increasing Study Abroad

Concordia joined a national campaign to double the number of American students who study abroad by the end of the decade.

For its part in the International Education Coalition’s Generation Study Abroad initiative, the college has committed to increasing the percentage of its undergraduate students who study abroad from 43 percent to 75 percent.

6

Global Challenges, Business Solutions

Four students from the Offutt School of Business joined the inaugural Global Business in India program based in Bangalore. Students completed two internships – one with a women’s handicraft cooperative and another with a corporate giant, either IBM or Thomson Reuters.

7

100 and Counting

Dr. Douglas Anderson, professor of mathematics, had his 100th scholarly article accepted for publication in a professional journal.

Anderson’s area of research is differential equations, which describes the rate of change of a physical process over time.

8

Celebrating 20 Years of Hands for Change

This year marked the 20th anniversary of Hands for Change.

Since it started, more than 32,000 hands have pulled weeds, painted buildings, cleaned offices and more during Orientation.

In addition, this year’s senior class hosted a day of service before graduation, creating a book-end experience for their undergraduate career.

9

Honoring Bucky Burgau

The baseball field was named in honor of longtime coach Bucky Burgau. His career boasts over 400 wins in the MIAC, making him the winningest coach in the conference.

10 Concordia-Oxford Connection Research at Concordia landed Corey Horien ’12 an opportunity to work at the University of Oxford in England and to enroll in a dual M.D./Ph.D. program at Yale School of Medicine.

Horien’s studies are aimed at understanding bacteria associated with meningitis, the inflammation of the membranes that surround the brain, work he first conducted with biology professor Dr. Ellen Aho.

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Forming Relationships in the Holy Land Foster Beyers, conductor of The Concordia Orchestra, always stresses to his musicians that there is someone in the audience who needs to hear their music.

This was never more true than when the orchestra performed in Ramallah, a Palestinian city in the West Bank, while touring the Holy Land at the end of the 2013-14 academic year.

A few days before the concert, two teen boys were fatally shot during protests near the city. Students from the local conservatory that performed with The Concordia Orchestra knew those who had been killed.

As the community mourned, the orchestra dedicated its concert to the teens and began with a moment of silence in remembrance.

“It certainly gave us a sense of the importance and healing power of music,” Beyers says. “I have to admit that I have never experienced more focus and energy from the musicians than on this night.”

When Beyers planned the orchestra’s recent tour to the Holy Land, he wanted students to make cross-cultural connections through music. Building upon previous connections made by Concordia faculty and administrators, the orchestra hoped to deepen the college’s relationships in this part of the world.

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The group performed in the cities of Bethlehem, I’billin, Ramallah and Jerusalem and visited many popular Holy sites including the Church of the Nativity in Bethlehem, the Church of the Holy Sepulchre, the Wailing Wall and the Dome of the Rock in Jerusalem, and the Qumran National Park.

But it was the people and music that left the deepest impression.

In addition to collaborating with musicians from the Edward Said National Conservatory of Music in Ramallah, the group performed for students in four schools. Small ensembles also played at the Augusta Victoria Hospital in Jerusalem.

Through these experiences, music initiated and maintained relationships while allowing students to explore culture. It was a platform for coping with sickness and mourning loss, says violin player Emily Donovan ’14, Stillwater, Minn.

“It allowed us to communicate in a language that we all were able to use,” she says.

It will take time for the students to process everything they experienced and heard, they say. But one thing is for certain.

“In a place where the situation can be so complicated to understand, music has been especially comforting,” says bass player Erica Bjelland ’16, Decorah, Iowa.

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Following in the Footsteps of a Fulbright

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Exactly 30 years after her mother traveled to Germany on a Fulbright scholarship, Elsa Lund ’14 is enjoying the same opportunity.

Before arriving in Germany for her Fulbright studies, she participated in a six-week Young Artists Opera Program in France.

Lund, who was a vocal performance major at Concordia, applied for Fulbright’s English Teaching Assistant Program with encouragement from her parents, who were both Fulbright scholars.

Lund will teach English at a school in the region of Saxony in eastern Germany. She can also take classes and voice lessons at a university nearby and will have opportunities to travel.

She heard the good news in April and immediately called her mom.

“It will be cool to have that teaching experience,” she says.

“My mom was the most excited of anyone I told,” Lund says.

Lund wants to be a voice teacher and performer after graduate school, which she has now deferred for a year. She has been accepted to DePaul University in Chicago.

Lund is the 31st student from Concordia to receive a Fulbright Award since the college began participating in the program in the mid-1980s. Concordia is among the leading Lutheran colleges in securing Fulbrights.

Her parents have many friends in Germany, and Lund looks forward to meeting them and visiting other parts of the country while she’s there.

After graduating in May from Concordia, Lund spent a month at Concordia Language Villages in Bemidji, Minn., a place she has called home for 14 summers. When she was just 8 years old, Lund began studying Norwegian at the Language Villages nestled in the piney woods and shores of a scenic Minnesota lake.

She was a long way from her Seattle-area home but comfortable in the summer camp setting where villagers spoke to each other in a new language.

“That’s how I came to know about Concordia, by meeting the counselors who were students,” says Lund. “Then, once I heard The Concordia Choir sing, I knew the college was the right place for me. The music and language programs here are first rate. It was the right choice.”

Besides the teaching experience, Lund also hopes to become fluent in German.

Her whole family speaks German and Lund has studied the language for a few years at Concordia. She is already fluent in Norwegian and has a great love of languages.

“This will help me a lot since German is one of the languages I’ll need to teach my (music) students,” Lund says.

Highlights from Concordia Language Villages

More than 120 employees from

Lowe’s Home Improvement participated in weeklong Spanish language and culture programs. The goal was to expand their capacity for working with team members from diverse backgrounds. Lowe’s reported improved productivity and stronger collaborative skills after employees attended the program.

S o c c e r i n t ro d u c e d 1 2 - t o

16-year-olds to German language and culture during a soccer challenge hosted by Waldsee, the German Language Village. Soccer coaches from Germany ran drills selected by players

The Fulbright program provides 8,000 grants annually for graduate study, advanced research and classroom teaching.

from the German professional soccer

The program was established to increase mutual understanding between the people of the United States and other countries through the exchange of persons, knowledge and skills.

lunch.

Lund is very humble about receiving this scholarship.

“I know so many people here who could get one because they are smart and interested in research and love to travel,” she says.

club Bayern München. Participants also enjoyed a complimentary German

The Korean Language Village,

Sup sogu˘i Hosu, celebrated 15 years.

The Village receives significant support for scholarships and infrastructure from Korean organizations including the Simone Corporation and the Korea Foundation.

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Culture of Philanthropy As soon as she stepped on campus, Mallory Carlson ‘15, O’Fallon, Mo., hoped she would be able to attend Concordia College.

Both of her parents are graduates. An older sister is, too. When she toured the campus as a high school senior, she joined the family fan club.

“I found it impressive that students really help out the community by getting involved and volunteering at different places,” says Carlson. “I loved the campus atmosphere and small class sizes.”

Finding a way to pay for college was the next challenge.

“The only way I could afford Concordia was with the help of grants and scholarships,” she says.

Concordia’s alumni are generous supporters of student scholarships. As part of her financial aid package, Carlson received a legacy scholarship funded by James Senske ’75.

Senske studied economics and mathematics at Concordia. Thanks to mentors who encouraged him, Senske found success as a businessman and entrepreneur. Today he is president and CEO of Commerce Bank and president of Commerce Label, Inc. In gratitude for what Concordia gave him, Senske wants to support a new generation of students. He established a Legacy Scholarship, which allows the donor to name the scholarship and to designate the type of student who receives it.

“I support the Legacy Scholarship Society because of its immediate impact on students,” says Senske. “As an alumnus and regent, I feel privileged to give back to Concordia to ensure access for this next generation of Cobbers.”

Carlson is thankful for Senske’s financial support. She also appreciates the connections made.

“Since Concordia is far from home, I needed to have this ‘home’ feeling,” she says. “Knowing that there are other people helping me succeed is powerful.”

Carlson is studying psychology and accounting at Concordia. She has been involved with the campus accounting club and Family Weekend committee. Last May, she studied photography in Santorini with other Concordia students.

After graduation, she plans to take the CPA exam.

Someday, she hopes to fund a scholarship for another generation of Cobbers.

“I’ve had such good experiences at Concordia and I wouldn’t have those without the awesome alumni and donors out there,” she says. “I want someone else to have this experience, too.”

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Match Makes Big Impact George Halvorson ’69 allowed The Concordia Annual Fund to leverage his $50,000 gift to raise additional funds and engage new donors.

In total, more than $111,000 was raised and 87 new donors contributed to a monthlong campaign.

“Concordia gives students a wonderful liberal arts education grounded in service that gives people a context for thinking and tools for intellectual growth,” he says. “That deserves support.”

Halvorson is chairman of the Institute for InterGroup Understanding, chairman of the First 5 Commission for the state of California, and retired chair and CEO of Kaiser Permanente.

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Enrollment

We welcomed 793 first-year and transfer students in fall 2013, which brought total undergraduate enrollment to 2,558 students. The current student body calls 34 states and 31 countries home.

2013-14 Tuition and Fees

Our new students are well prepared for Concordia’s academic rigor. Nearly one-third of first-year students were in the top 10 percent of their high school class.

Room/Board: $7,160

Tuition: $32,600

Student Fees: $214 Comprehensive Fees: $39,974 Average Financial Aid Package: $25,000 18

Comparative Comprehensive Fees 2013-14 St. Olaf College

$49,960

Gustavus Adolphus College

$48,583

Luther College

$43,940

Augsburg College

$41,995

Concordia College

$39,974

St. Scholastica

$39,960

Incoming Class Statistics 2010

2011

2012

2013

% Students with ACT score above 28*

20

20

19

19

Top 10% Graduating Class (%)

36

37

32

30

63/37

63/37

60/40

60/40

% Lutheran

59

54

60

54

% Multicultural

9

9

9

10

% Female / % Male

* Of those reporting

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2013-14 Board of Regents CHAIR: John R. Tunheim ’75, Stillwater, Minn. | U.S. District Court Judge, District of Minnesota Rev. Lowell G. Almen ’63, Elgin, Ill. | Retired Secretary, ELCA Mary Alice Bergan ’66, Fargo, N.D. | Treasurer, Fargo Assembly Co. Randall L. Boushek ’79, Elk River, Minn. | Sr. VP, CFO and Treasurer of Thrivent Financial for Lutherans Matthew T. Dimich* ’06, Rosemount, Minn.| Lead Software Engineer, Thomson Reuters Gerald D. Eid ’63, Fargo, N.D. | Chairman and CEO, Eid-Co Buildings, Inc. Karen L. Grandstrand ’77, Orono, Minn. | Shareholder and Chair of Bank & Finance Group, Fredrikson & Byron, P.A. Dr. David M. Gring, Moneta, Va. | President Emeritus, Roanoke College and Sr. VP, Myers McRae Executive Search and Consulting Rachel C. Hollstadt ’70, Burnsville, Minn. | Founder and Retired CEO, Hollstadt & Associates, Inc. Keith A. Johanneson, Bemidji, Minn. | President and CEO, Johanneson Companies Kelby K. Krabbenhoft ’80, Sioux Falls, S.D. | President and CEO, Sanford Health Dr. Earl Lewis ’78, New York, N.Y. | President, The Andrew W. Mellon Foundation Dr. Roland D. Martinson ’64, New Brighton, Minn. | Retired Academic Dean and Professor Emeritus, Luther Seminary Connie Nicholas, Fargo, N.D. | Part Owner-Operator, Nicholas Farms Ronald D. Offutt ’64, Fargo, N.D. | Founder and Chair of the Board, R.D. Offutt Co. and RDO Equipment Co. Solveig Storvick Pollei, Tacoma, Wash. | Professional Volunteer Rev. Robert L. Quam ’68, Billings, Mont. | Retired Pastor and Director, Christikon, ELCA outdoor ministry John M. Quello ’66, Sioux Falls, S.D.| Financial Advisor, Loft Advisors Rev. William E. Rindy, Fargo, N.D.| Former Bishop, Eastern North Dakota Synod of ELCA Rev. Lynn R. Ronsberg ’75, Grand Forks, N.D. | Senior Pastor, Sharon Lutheran Church James E. Senske ’75, Eden Prairie, Minn. | Chair and CEO, Commerce Bank and President, Commerce Label, Inc. Michael S. Solberg ’95, Fargo, N.D. | President and COO, Bell State Bank & Trust Stephen L. Stenehjem, Watford City, N.D. | President and CEO, Watford City BancShares, Inc. and Chair, CEO and President of First International Bank & Trust Joyce Monson Tsongas ’63, Portland, Ore. | Founder, Tsongas Litigation Consulting Thomas Vertin, Breckenridge, Minn. | Owner, Vertin Co. Jan R. Waye ’70, Taos, N.M. | Owner, Feeder cattle operations in Colorado and New Mexico Rev. Mark N. Wilhelm**, Chicago, Ill. | Program Director for Schools, Colleges and Universities, Congregational and Synodical Mission Unit, ELCA Rev. Lawrence R. Wohlrabe, Moorhead, Minn. | Bishop, Northwestern Minnesota Synod of ELCA *Advisory member, President of the National Alumni Board of Directors **Advisory member, churchwide representative

917420/1M/0814