Finance Update

The German Club Alumni Foundation Fiscal Year 2022

REVENUES*

Gifts Directly to GCAF Gifts Processed Through VTF VTF Endowment Income Other Income**

TOTAL INCOME

EXPENSES*

Foundation Operations Manor & Guest House Operations Capital Projects German Club, Alumni & Virginia Tech Relations

TOTAL EXPENSE

*All amounts rounded to nearest thousand **Includes Manor & Guest House rentals, Relief Funds, Etc.

$192,000

$321,000 $173,000

$696,000

$1,381,000

$115,000 $136,000 $589,000 $432,000

$1,272,000

The German Club Alumni Foundation’s (“the Foundation”) Board of Directors, through its Finance Committee, is committed to delivering regular updates on the finances of the Foundation to all alumni, with the goal of keeping our alumni informed on the financial health of the Foundation

The Foundation’s fiscal year runs from July to June. The information presented throughout this article will be for the Fiscal Year 2022 (July 2021June 2022). The information presented below is subject to change, as at the time of writing, the fiscal year had not finished, and the annual audit of the Foundation had not yet been finalized. and family, on behalf of GCAF, thank you. Your incredible generosity through your donations have not only helped to sustain GCAF and its mission but have allowed us to reach the ambitious goal we set more than five years ago. For those who were not able to attend the 130th celebration in person, I am pleased to inform you that at the culmination of the Foundation for the Future, we have more than exceeded our goal of adding $2M to our endowment. These endowment funds provide critical funds which enables GCAF to execute our mission of strengthening the German Club for years to come.

Beyond the achievement of our goal, Fiscal Year 2022 was a very unique year for GCAF, one in which we welcomed home almost 700 alumni and

guests during the 130th Anniversary Celebration, received record annual donations and made substantial investments in the Manor.

Like most all businesses, the COVID-19 pandemic had a significant impact on the Foundation and its operations. As communicated in prior letters, our budget preparation process has required a number of very conservative estimates due to the uncertainties related to football parking and in-person gatherings (weddings, events, etc.) upon which the Foundation relies heavily for revenues. We were pleased to welcome back our guests for the 2021 football season, as well as many other guests from the University and the NRV community. We are hopeful that the impacts of the pandemic are largely behind us and expect a more normalized year of Manor rentals in Fiscal Year 2023.

In response to the pandemic, GCAF undertook actions to preserve capital, including deferring routine maintenance and necessary capital projects at the Manor. Throughout the pandemic, GCAF prioritized capital projects that were absolutely necessary. This strategy helped us maintain financial flexibility but resulted in significant costs being deferred into Fiscal Year 22. Thanks to the Facilities Committee and the Executive Director, the entirety of the Manor’s HVAC system was updated, in anticipation of welcoming home our alumni and guests for the 130th. Throughout the pandemic, along with the Facilities Committee, we have re-evaluated the annual needs for maintenance at the Manor. In order to keep the Manor in pristine condition, for our alumni, friends and guests, the Board has approved an increase in our annual operating budget for additional maintenance related funds. This should help offset significant one-time expenditures in the future.

The Fiscal Year 2023 budget contemplates a normalized operating year at the Manor, certain strategic capital expenditures for major projects and also includes the increased maintenance related budget mentioned above. The Board of Directors held an in-person meeting the weekend of the 130th Anniversary Celebration and unanimously approved the Finance Committee’s proposal.

Thanks to the efforts of many, the Foundation has weathered the COVID-19 crisis and maintained its fiscal health. It should be noted that the success of the Foundation for the Future Campaign directly contributed to the Foundation’s ability to adapt and maintain through these uncertain times. Thank you again for the time and treasure donated to ensure that the Campaign was a tremendous success.

In summary, the Foundation is well-positioned to remain a strong supporter of the German Club, university, and community. The Board of Directors looks forward to the continued success of the Foundation and the German Club.

Jordan DeDona Class of 2006 Vice President of Finance and Audit