2016 Annual Report

The Culver Educational Foundation | 2015-2016

ANNUAL REPORT

The Culver Educational Foundation

BOARD OF TRUSTEES Trustees Miles D. White ’73 Chairman Chairman and CEO Abbott Abbott Park, Illinois James A. Henderson W ’47, ’52 Chairman Emeritus Retired Chairman and CEO Cummins Inc. Columbus, Indiana Jeffrey P. Adams ’69 Treasurer Retired President Balentine, LLC Atlanta, Georgia Harry L. Crisp II ’53 Vice President Chairman and CEO Pepsi Mid America Marion, Illinois

Dr. Margaret Riecker Thompson ’77 Vice President, Secretary Interim Associate Dean For Academic Affairs Michigan State University College of Human Medicine Grand Rapids, Michigan

George T. DeVries III ’77 Chairman and CEO American Specialty Health San Diego, California

John D. Zeglis W ’61, NB ’64 Vice President Retired President of AT&T and Chairman and CEO of AT&T Wireless Culver, Indiana

James Fellowes ’64 Chairman Fellowes, Inc. Itasca, Illinois

Whitney Kolb Alvis ’96 Norman, Oklahoma Jana Baldwin Co-chair, Culver Parents Association Culver, Indiana

Peter Fasseas ’57 Chicago, Illinois

Edward “Ted” Foster W ’89 CSSAA President Partner Group 90 Columbus, Ohio

Laura Schacht Bilicic ’82 Chicago, Illinois

P. Lamar Gable ’61 Chairman Barron Collier Company Naples, Florida

David M. Culver ’59 Vice President Revluc & Co. St. Louis, Missouri

John J. Bollman ’75 Vice President Sequa Corporation Palm Beach Gardens, Florida

James S. Gault ’70 President, Brokerage Services Arthur J Gallagher & Co Itasca, Illinois

Craig J. Duchossois ’62 Vice President CEO The Duchossois Group, Inc. Elmhurst, Illinois

Kathryn Ryan Booth L’67 Partner Trinity Private Equity Group South Lake, Texas

Richard A. Jennings ’70 CEO Atlantic Resources Co. LLC Midland, Texas

William H. Brewer ’74 CEO Cornell Forge Company Chicago, Illinois

Jeffrey C. Jones Co-Chair, Culver Parents Association Bloomington, Indiana

Jane Doehrman Eberly ’73 Vice President Naples, Florida Paul C. Gignilliat ’49 Vice President Senior Vice President UBS Financial Services, Inc. Chicago, Illinois

2 | The Culver Educational Foundation

James W. F. Brooks ’66 Chairman Brooks Capital Management, LLC Holland, Michigan

Jud Q. Little ’65 President & CEO The Quintin Little Company, Inc. Ardmore, Oklahoma

The Culver Educational Foundation

BOARD OF TRUSTEES Trustees Emeriti MG John W. Peabody ‘76 W ‘72 Senior Vice President Director of Federal Programs Mott McDonald Arlington, Virginia Bernardo Quintana ’59 Chairman Empresas ICA Mexico City, Mexico John Ruan III ’61 Chairman & CEO Ruan Transpo. Mgmt. Systems Chairman, President & CEO BTC Financial Corporation Des Moines, Iowa Franklin D. Schurz Jr. ’48 President Schurz Communications, Inc. Mishawaka, Indiana Thomas H. Story ‘67 Thomas Story and Son, LLC Culver, Indiana Robert C. Vaughn ’74 Chairman and CEO Vaughn Petroleum, LLC Dallas, Texas

Samuel C. Butler ’47 Cravath, Swaine and Moore LLP New York, New York James F. Dicke II ’64 Chairman and CEO Crown Equipment Corporation New Bremen, Ohio James L. Dunlap ’56 Houston, Texas Richard W. Freeman Jr. ’56 Former President The Louisiana Coca-Cola Bottling Co, Ltd. New Orleans, Louisiana Michael Huffington ’65 Joseph Levy Jr. ’43 Chairman Levy Venture Management Skokie, Illinois J. Gregory Poole Jr. ’53 Raleigh, North Carolina

The Honorable Penelope Redington Austin, Texas Henry B. Schacht Director and Senior Advisor E.M. Warburg, Pincus & Co., LLC New York, New York Thomas C. Sullivan Sr. ’55 Chairman Emeritus RPM, International Medina, Ohio Jennifer Steinbrenner Swindal ’77 Tampa, Florida Jonathan W. Warner ’36 Retired Chairman and CEO Gulf States Paper Corp.

Tuscaloosa, Alabama J. Lawrence Wilson ’54 Bryn Mawr, Pennsylvania John W. Woodmansee Jr. ’52 CEO Tactical & Rescue Gear, Ltd. Frisco, Texas

COL Dartanian Warr ’76 Shaker Heights, Ohio Michael R. Wilcox Chairman and CEO Wilcox Financial Wilcox Sports Management Toledo, Ohio Dr. Anna Kantzer Wildermuth ‘83 Legion President Lafayette, Indiana

Published by The Culver Educational Foundation, 1300 Academy Road, Culver, Indiana 46511-1291

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The Culver Educational Foundation

ANNUAL REPORT 2015-2016

Table of Contents A Message from Jim Power, Head of Schools . . . . . . . . . . . . . . . . . . . . . . . . 5 A Message from Miles White ’73, Chairman of the Board. . . . . . . . . . . . . . 7 A Message from the Culver Parents Association Co-Chairs. . . . . . . . . . . . 8 A Message from the Culver Fund National Co-Chairs & Director. . . . . . . 9 Financial Facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-12 The Importance of The Culver Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Donor Recognition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Senior Leadership: Advancement Office Holly Johnson

Chief Advancement Officer

Mike Hogan

Director of Development

Alan Loehr

Director of Alumni Relations

William F. Hargraves III ’77

Director of Strategic Communications

Thomas Mayo ’75

Director of The Culver Fund

Pamela Christiansen

Director of Planned Giving

Laura Yeager

Director of Stewardship

Julie Crews Barger

Director of Parent Relations

Antonio Giraldi ’75

Chief International Officer

We make every effort to ensure the accuracy of donor lists, but, occasionally, mistakes do occur. Please send information regarding errors or omissions to Development Office, 1300 Academy Road #153, Culver, IN 46511.

You may also contact Mike Hogan at (574) 842-8233 or mike.hogan@culver.org

4 | The Culver Educational Foundation

A message from the

Head of Schools

Our bottom line: Culver is thriving and sustainable Dear Culver alumni, parents and friends, Mary and I are so excited to be at Culver. It is clear to us that Culver people are passionate about their school, and I want to express my appreciation to you for your support to the Culver Academies; it is essential to our school’s success.

While I am learning fast about Culver, it would still be difficult for me to report on the past fiscal year, since I did not officially begin working at Culver until after the year ended. I won’t attempt to report on a year I did not experience. I am sure I will have lots to share with you in next year’s Annual Report of Gifts.

But there are some people who can speak volumes more than I can about the impact you have had with your support of Culver: our students themselves. So I’ve decided to share with you some of the words they have used to express their appreciation.

Tyson “The military system at Culver was extremely new to me. I see it as an opportunity to strengthen leadership, exercise self-discipline, and socialize with a diverse community. Overall, Culver teaches us how to live independently and take care of ourselves.”

Marie “At Culver, everyone strives to make an impact on your life. At Culver, everyone is given the opportunity to thrive academically, athletically, and as a leader. I am so grateful for the adults and peers here, who have influenced my life in ineffable ways. Through those amazing people, I have become a friend, a roommate, a mentee and a mentor, a leader, and the woman who I am today. It is safe to say that the relationships I have gained here will never be duplicated or replaced. Not only have I made friendships that will last a lifetime, I have also found my path.”

Alexander “If I had not come to Culver I would have never found the sport of rowing where I am pursuing division one recruitment. I would have never found Model United Nations, which is sparking my rabid interest in international relations. I would have never been pushed this hard to become the best person I can be.”

These remarks are indeed inspiring. I hope that you will have an opportunity to visit our school soon and meet some of these remarkable young men and women who are here because of you.

Sincerely,

Jim Power Head of Schools

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6 | The Culver Educational Foundation

A message from the Chairman Of The Board

Your support, in whatever form, is important and appreciated Dear Alumni, Parents and Friends: This year has been a year of significant change for Culver. First, we thanked and said farewell to John and Pam Buxton after seventeen years of exemplary service to Culver Academies and the Summer Schools & Camps. It is almost impossible to adequately thank the Buxtons for all they have done to lead this great institution for almost two decades. During this time, Pam and John always remained focused on taking care of Culver’s students and campers. I hope that you enjoyed reading the special tribute to both of them in the latest edition of the Alumni Magazine.

We then turned quickly to welcoming our new Head of Schools, Dr. Jim Power and his wife, Mary, to Culver on July 1. As you already know, Culver continues to amaze everyone who discovers it for the first time as well as those who rediscover it. Jim and Mary quickly realized the Culver Mission in action during Summer Schools & Camps with students and campers learning to follow and then to lead others, preparing them to be responsible citizens in their own communities and beyond. Before too long, summer graduation came and passed, and Jim and Mary turned their attention to the academic year that began with a formal investiture ceremony for our new Head of Schools. Both Ralph Manuel and John Buxton were back at Culver, joining Jim Power and me in this important ceremony. I ask that you extend a warm Culver welcome to Jim and Mary whenever you have an opportunity to meet them on campus or as they travel on Culver’s behalf.

This year’s Annual Report catalogues the continuing story of our great school. There is so much good news to share. I want to express my sincere gratitude to everyone who gave back to Culver during the past fiscal year.

Your “gifts” come in so many different ways, but they are always extremely important to our students, faculty, and staff and always greatly appreciated. Whether you volunteered to help lead your Culver class, identified a prospective student or camper, served on an advisory committee, volunteered to support the Parents’ Auction, or made a financial gift, your contribution is essential to Culver’s success. Thank you!

Thanks to the generosity of many, we received more than $35.6 million in new gifts this past year. Equally important is the fact that more than $16.8 million of these gifts were directed to the school’s endowment, providing long-term financial stability for Culver. Additionally, our Culver Fund achieved an alumni participation of 28% and received gifts of more than $4.9 million.

Your Culver Educational Foundation’s Board of Trustees is committed to providing strategic leadership and support for our great school. We are honored to serve in this capacity, and I am honored to serve as the board’s chairman. I want to again express my gratitude and that of the trustees for everything you do to support Culver.

Sincerely,

Miles D. White ’73

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Culver Parents Association

77% participation carries parents to $1 million total As we reflect upon the 2015-2016 fiscal year at Culver, we are enormously proud to have represented the Culver Parents Association as its co-chairs.

Our parents continue to support the school in myriad ways, from welcoming both prospective and new families to campus in increasingly helpful ways to expanding engagement with all Culver families – whether new or old, near or far.

Cindy Krupp

This year was marked by enhanced communication with our international families – particularly those in China – and by the advent of an initiative to bring our alumni parents – those Culver parents whose children have already graduated – back to Culver. While these are large-scale efforts that continue, the progress made this past year was monumental. We extend a special thank you to current parent Sophie Shen for her efforts with our Chinese families and to John Bollman ’75 and Sallie Jo Mitzell who spearheaded our April CPA Board Reunion – a springboard for future alumni parent programming.

We are proud, too, of the financial support parents provided for the school. Giving from parents, alumni parents, and grandparents, resulted in a total of $1,052,954 contributed to the Culver Fund, our highest total to date in a non-auction year.

Moreover, 77% of our families participated in this effort – an increase over last year’s participation figure and our second highest participation result ever!

Jeff Jones

As parents, while we pay tuition that is sizable, we also witness firsthand the transformative impact of a Culver education. This is reflected in the remarkable level of participation we continue to witness among our parents. As we look forward, we are confident that Culver parents will continue to support the school in meaningful ways, utilizing their talent, time, and treasure for the good of the Academies and its students. For now, we extend our heartfelt thanks to those families who joined us over the past year to make a difference.

We are grateful for your partnership.

Sincerely,

Cindy Krupp Jeff Jones Culver Parents Association Board Co-Chairs 2015-2016

8 | The Culver Educational Foundation

The Culver Fund

Your Culver Fund Gifts Lead to Student Excellence!

Thank you for your gifts of time and money to the Culver Fund. Because of your generosity, we raised $4,871,357 in support of Culver. We also increased our overall alumni participation rate by 2 percentage points. This year, 28% of you gave, up from 26% the previous year.

You answered the call. Your gifts truly change lives. Fully 55% of Culver Fund donations are budgeted to support student financial aid. Additionally, 34% goes toward faculty salaries and development, and 11% for student programming such as athletics, the arts, and spiritual life.

Culver students receive training in leadership and character development to fully equip them with the ability to impact Culver and their world. And your Culver Fund donations make it possible for 49% of our student body to receive financial aid.

Hear from CGA student Ashley what your gifts accomplish: “Culver will have a rippling effect on my life, allowing me to reach for and continuously grasp onto success.” And CMA cadet Jonathan: “Culver has changed me in ways that I couldn’t even have imagined. It has taught me how to follow, then lead. It has taught me how to work, then play. The amount of maturity and responsibility that I have gained through my time here at Culver is immeasurable.”

This last year brought the rollout of Culver’s crowdfunding initiative, Impact Culver. As the first secondary school in the nation to have its own crowdfunding platform, we hoped to increase participation in the Culver Fund by tying more directly donors’ passions with specific funding opportunities.

Our results were encouraging. Our first nine projects raised $143,445 for Culver -- 108% of our goal. Some 229 first-time donors gave to projects (34% of all donors) and 195 donors (29%) were donors from the classes of 2001 to 2015.

In the next year we are planning a weeklong celebration of Culver pride called Lead Culver -- tentatively scheduled for the spring of 2017. We hope Lead Culver will generate the same kind of interest and enthusiasm as Day of Giving programs at other schools. Our take on the event is that it should be an opportunity for all of Culver’s friends and supporters to show their support of and pride in Culver in more ways than just financially. So we will highlight Culver’s past, its current students and faculty, and today’s volunteers during the week in an effort to generate significant social media traffic.

We continue to push recurring giving opportunities as well as online gifts. The number of online gifts rose 29% in the last fiscal year. All of these efforts have the goal of eventually raising our participation rate into the mid-30s, which is where we should be given our alumni body’s deep affinity to our school and the performance of our peer group of Eastern boarding schools.

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The Culver Fund continued Thanks to you and the dedication of our volunteers, we experieneced excellent Culver Fund performance. More importantly, because of the money raised from your efforts, we have the ability to change young peoples’ lives by accomplishing Culver’s mission of leadership, character development, and whole-person education.

Thank you again for supporting the important work that Culver does.

Julie Hanna CGA ’78

John Bollman CMA ’75

Culver Fund National Co-Chairs

10 | The Culver Educational Foundation

Thomas Mayo CMA ’75

Director of the Culver Fund

Summary of

Financial Results

Fiscal year ending June 30, 2016.

Preliminary and Unaudited as of September 30, 2016 (IN MILLIONS)

YEARS ENDED JUNE 30

2016 2015 2014 Assets 522 515 504

Liabilities 98

Increase in net assets (2)

Unrestricted net assets 86

Temporarily restricted net assets 37

Permanently restricted net assets 301

Operating revenues and other additions 54

Operating expenses 55

Endowment Contributions and Additions 19

Market value of endowment and funds functioning as endowment 387

Total investment return (loss) (3)

Capital expenditures 10

INVESTMENT POOL MARKET VALUE Fiscal years ending June 30, 2016

90 9

87 59

85 42 299

85 34 298

54 54

53 53

12 390 11

65 384 29

5

6

INVESTMENT POOL SPENDING PURPOSES Fiscal year ending June 30, 2016

INVESTMENT POOL MARKET VALUE

INVESTMENT POOL SPENDING PURPOSES

Fiscal years ending June 30

Fiscal year ending June 30, 2015

$450

Scholarships/Merit

$400

$350

Academic Chairs $250 Other Assets Endowment

$200

Academic Programs

$150

Maintenance Funds $100

Professional Growth

$50

$6

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

$10.0

DOLLARS IN MILLIONS

20 1

5

4

20 1

3

20 1

20 1

2 20 1

0

20 11

20 1

9

8

20 0

7

20 0

20 0

6

$20 0

DOLLARS IN MILLIONS

Operations $300

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CEF Summary Net Income (000’s) 2016-17 Budget $59,278 CEF Summary Net Income (000's) 2016-17 Budget $59,278

Endowment Draw $20,302 34%

Tuition & Fees, net $31,054 53% (net of $13,152 scholarship/ financial aid)

Other Income $2,422 4%

Culver Fund $5,500 9%

CEF Summary Net Expense (000’s) 2016-17Net Budget $59,278 CEF Summary Expense (000's) 2016-17 Budget $59,278

Administrative Compensation and Benefits $10,873 18%

Academic and Student Life Compensation and Benefits $27,597 47%

12 | The Culver Educational Foundation

Facilities and Utilities $6,895 12% Other Expense $5,996 10%

Student Programs and Services $7,917 13%

This listing reflects gifts made between July 1, 2015, and June 30, 2016.

& Q A What is the importance of the Culver Fund?

What gifts count toward a Class Reunion Culver Fund goal?

The Culver Fund supports the operating budget of the school, especially Culver’s strategic priorities of financial aid, faculty and staff salaries, and programs.

Only Culver Fund gifts received during the current fiscal year ending on June 30.

What is considered a Culver Fund gift?

• Ideal Culver Fund gifts are unrestricted, immediate-use cash gifts.

What gifts do not count toward a Class Reunion Culver Fund goal?

• All pledges • Gifts made in prior years • All non-Culver Fund gifts

• Minimally restricted gifts to standard areas of budgeted expense (student scholarship, faculty salaries, etc.) also count as Culver Fund.

• Multiple year pledges are welcomed, but

only cash received within a current fiscal year (July 1- June 30) will be credited for a Culver Fund gift that year.

What is a gift-in-kind?

• A gift-in-kind is a physical item or evidence

of a personal or corporate expenditure that cannot be liquidated for cash.

• A gift-in-kind will not be credited to The

Culver Fund unless it reduces specifically budgeted expenses in that fiscal year.

What is an unbudgeted restricted gift (formerly known as an expense-paid-by gift)?

An unbudgeted restricted gift is an unanticipated donation for a program/item/service that was not part of the approved budget. An unbudgeted restricted gift will now be credited to the Culver Fund.

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The Culver Legion Board of Directors Anna L. Kantzer Wildermuth ’83 President Richard J. Sherlock Jr. T ’76 Vice President Lara Smith Nicholson ’86 First Vice President Scott Arquilla ’69 Secretary John Akalaonu ’98 Katie Anderson ’02 Caitlin Blythe ’02 William Bundy ’93 James Buresh ’60 Meg Dinwiddie Burk ’91 Katherine Schneider Captain ’92 Raj Chopra ’89 Robert Christoph Jr. ’96 Shane Giuliani ’05 Evan Heckman ’06 Dorothy Held ’79 Howard Mosley Jr. ’77 Jerome Ney Jr. ’57 Charles Osborne ’88 Nicholas Ramtin ’05 Michael Schrage ’66 Andrea Weaks Tabler ’81 Kimberly Hinshaw Tharin ’91 E.B. Vandiver III ’56 (Ad Hoc Director)

Culver Parents Association Board of Directors Jeff & Margaret Jones Co-Chairs Ty & Jana Baldwin Co-Chairs Cliff & Kelly Baumgartner Curtis & Cecelia Bolden David ’85 & Robyn Brewer David W ’75 & Kari Brumback Steve & Joann Callahan Chris & Paige Cefalu Brian & Jane Chupp Jimmy ’87 & Heather Clark Steve & Holly Cortes Jay & Aisha Craig Scott & Jody Cripe Craig & Courtney Dauer George ’77 & Jan DeVries Chuck & Minhae Doherty

Brian & Amanda Dunlap Tyler & Liz Ellison Alan ’81 & Hollie Free Gary & Kim Genenbacher Joe & Carrie Hart Marcelo & Vianca Hernandez Marc ’87 and Marie Hone Dean & Lisa Karahalios Robert ’67 & Emma Kerr Rich & Cindy Krupp Bill & Janene Kuhl Bill & Lisa Lerman Chuck & Linda Maroney Desmond & Yvonne Martello Robert & Kathleen Martinez Ignacio & Ana Pumarejo Brian & Kathy Roberts Scott & Lisa Saddler Jim & Carol Sever John & Sophie Shen Eric ’77 & Mary Smith Jim & Maryann Snyder Tom & Demi Stiebel Mike ’90 & Linda ’92 Tinsley Greg & Tifiany Walker ’92 Paul & Kim Westman

Culver Summer Schools Alumni Association Board of Directors Ted Foster W ’89 President Susan J. Severns Ellert L ’85 Immediate Past President N. Merritt Becker N ’83 Robert B. Boos N ’85 Samson Chiu W ’87 NB ’90 Emily Barnes Cole L ’84 Bridget O’Connell Collins ’93 W ’88 Anne Cooper ’89 W ’84 L ’87 Joseph Dellaria Jr. W ’05 NB ’08 Ralph Dise Jr. NB ’69 Emily David Gifford L ’91 Jackson Hazlewood W ’87 Greta Jacobson W ’90 L ’93 Dan Kopp W ’94 N ’98 Peter L. Lacy N ’87 Robert Ledbetter Jr. N ’81 Julie Zeglis Potter W ’90 L ‘93 Ted Stimson W ’87 Robert Sullivan III N ’88 Richard Waterfield W ’85

Culver Advancement Offices: Holly Johnson Chief Advancement Officer Lisa Barenie Administrative Assistant

ALUMNI Alan Loehr Director of Alumni Relations Amy Johnson Office Manager/Volunteer Boards Sandy Lewandowski Alumni Communications Coordinator Ann Maurer Administrative Assistant Ben Nowalk W ’02 ’07 Special Events Coordinator

COMMUNICATIONS William F. Hargraves III ’77 Director of Strategic Communications Jan Garrison Assistant Director of Publications Jeff Kenney Publications Manager Lew Kopp Media and Video Manager Mary Kunkle Administrative Assistant Trent Miles Web Content Manager Toni Trump Graphic Designer

DEVELOPMENT Mike Hogan Director of Development Jeff Anderson Culver Fund Officer Judy Campbell Culver Fund Officer Pam Christiansen Director of Planned Giving Ibrahim Fetuga ’01 Development Officer Deb Fox Research Manager

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Kim Janney Stewardship Coordinator Kim Kephart Stewardship Coordinator Cindy Krou Operations Manager Kevin Kucera Development Officer Thomas Mayo ’75 Director of The Culver Fund Tamara McVicker Gifts/Administrative Assistant Ashleigh Mills Culver Fund Process Improvement Manager Mike Petrucelli Advancement Communications Coordinator Candi Pierson Research/Administrative Assistant Kayla Ray SS ’08, W ’05 Gifts Manager Jackie Smith Gifts Manager Katie Taylor ’11 Culver Fund Officer Leann Weatherby ’88 Culver Fund Officer Laura Yeager Director of Stewardship Cathy Zurbrugg Senior Development Officer

INTERNATIONAL ADVANCEMENT Antonio Giraldi ’75 Director Karla Hernandez W ’81 Associate Director

PARENTS Julie Crews Barger Director of Parent Relations Glenda Mechling-Smith Administrative Assistant

92 | The Culver Educational Foundation

THE CULVER MISSION Culver educates its students for leadership and responsible citizenship in society by developing and nurturing the whole individual

– mind, spirit, and body –

through an integrated curriculum that emphasizes the cultivation of character.

Culver Academies

1300 Academy Road, Culver Indiana, 46511

culver.org

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