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KSU Foundation Magazine

Fall 2016

Everyday heroes K-Staters doing extraordinary things


Advancing K-State Dear K-State faculty, students, alumni and friends, There are many heroes in the K-State family. Some are obvious, but many go about their business unnoticed and unrecognized for their extraordinary work. In this issue, you’ll be introduced to a variety of K-State heroes who are making a difference to the K-State family and beyond. You — K-State’s loyal and generous supporters — have also stepped up when needed. A little over a year ago, we launched Innovation and Inspiration: The Campaign for Kansas State University with a goal to raise $1 billion. We’re more than 90 percent of the way toward meeting our goal, and these investments will help advance K-State toward its goal of being nationally recognized as a top 50 public research university. We hope you enjoy the updated design and new content areas included in this issue of Good for K-State magazine. We made these changes based on feedback from you, our readers. We hope this issue inspires you, and we thank you for supporting the K-State family. With Wildcat pride,

Greg Willems President and CEO KSU Foundation KSU DIVISION OF COMMUNICATIONS AND MARKETING


CONTENTS

Fall 2016

2 GOOD NEWS

Accomplishments that will make you proud to be a Wildcat

Welcome to Good for K-State, the KSU Foundation magazine devoted to the inspiration and impact of private philanthropy for Kansas State University. We invite your comments, questions and ideas. Just send an email to good@found.ksu.edu. We look forward to hearing from you.

4 GOOD WORK

KSU Foundation trustees are K-State’s premier advocates, ambassadors and investors

Editor Marisa Larson, Editorial Manager Art director Kim Zerfas, Graphic Design Manager

6 GOOD PLAN

A musician helps K-State students and fulfills a lifelong dream

Contributing writers Hayli Morrison, Marketing Manager Emily Dye, Communications Assistant (student) Kristin Loving, Development, College of Veterinary Medicine

8 GOOD FOR ALL

Designers Jack Wilson, Graphic Designer Alexcia Rodriguez, Graphic Designer (student) Photography David Mayes, David Mayes Photography KSU Division of Communications and Marketing Bryant Kniffin, K-State Marching Band Communications team Susan Wolf Berhow, Associate Vice President of Strategic Communications Mary Bourne, Video Producer Kim Downing, Communications Specialist Katie Howland, Video Assistant (student) Jameson Sedlacek, Director of Communications Services Sara Wallace, Communications Assistant (student)

Excellence funds enable academic leaders the flexibility to address emerging opportunities and needs

10 GOOD WORD

K-Staters share why they give

11 K-STATE HEROES

A spotlight on ordinary K-Staters doing extraordinary things

20 GOOD IDEAS

Our recommendations on how you can make a difference today

facebook.com/ksufoundation twitter.com/KSU_Foundation linkedin.com/company/kansas-stateuniversity-foundation Good for K-State is published by the Kansas State University Foundation, 1800 Kimball Avenue, Suite 200, Manhattan, KS 66502-3373.

22 2016 ANNUAL REPORT Cover: Dr. Brad Crauer (with Colleen) and fourth-year veterinary student Sarah Steen emerge from the Mobile Surgery Unit to complete their mission. Read more on page 14. DAVID MAYES PHOTOGRAPHY


GOOD NEWS

Accomplishments that make you proud to be a Wildcat

Bryan Pinkall, K-State assistant professor of music, can add ‘Grammy winner’ to his resume after winning the award for Best Choral Performance alongside the Kansas City Chorale, Phoenix Chorale and conductor Charles Bruffy. Pinkall was a soloist and chorister on the winning album, “Rachmaninoff: All Night Vespers.” He was also part of the Emmywinning team behind the opening ceremony for the 2014 Winter Olympic Games in Sochi, Russia, and part of the operations team for the 2016 Summer Olympics in Rio de Janeiro, Brazil.

K-STATE COLLEGIAN

K-STATE MUSIC PROFESSOR WINS GRAMMY AWARD

Bryan Pinkall

COURTESY PHOTO

K-State faculty participate in White House Summit on Global Development

INGRAM IMAGE LIMITED

From left: Jesse Poland, Vara Prasad and Jagger Harvey

K-State faculty members Jesse Poland, Vara Prasad and Jagger Harvey recently were invited by President Barack Obama to participate in the White House Summit on Global Development. Each of them lead programs at the university that provide solutions to world hunger and nutrition. The summit highlighted the government’s progress in global development initiatives that aim to reduce poverty, malnutrition and infant and maternal mortality, increasing the number of young women in school and building more stable and inclusive societies.

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K-STATE RESEARCHERS INVENT AND PATENT NEW LASERS Kristan Corwin and Brian Washburn, associate professors of physics at K-State, have invented a new patented class of lasers along with Andrew Jones, a May 2012 doctoral graduate in physics, and Rajesh Kadel, a May 2014 doctoral graduate in physics. These portable, energy-efficient lasers are fiber-based and

can help scientists measure distances to faraway targets, identify the presence

of certain gases in the atmosphere and send images of the earth from space.

As K-State works toward becoming a top 50 public research university by 2025, research efforts of our faculty, staff and students continue to advance. The crucial findings of these researchers could have a lasting impact on global health issues facing the world today.

From left: Kristan Corwin and Brian Washburn

K-STATE RESEARCHER DEVELOPS INDUSTRY STANDARD FOR CONCRETE RAILROAD TIES Bob Peterman, professor of civil engineering, and his graduate student, Matthew Arnold, developed a test to determine how well concrete wires will bond with surrounding concrete. This test will be used by manufacturers across the globe, and the procedure could potentially save the industry millions of dollars per year.

Bob Peterman

K-State paving the way in global health initiatives

K-State is helping the fight against the Zika virus through mosquito research at the Biosecurity Research Institute. Researchers are studying mosquitoes to understand how they become infected with the Zika virus and are also providing samples of the virus to collaborative organizations for further study. Another health initiative is taking place at The Center of Excellence for Emerging Zoonotic and Animal Diseases, or CEEZAD, at K-State. CEEZAD will use a $2.3 million federal grant to study the safety of a newly developed vaccine to protect humans from the Ebola Zaire virus. Additionally, Weiping Zhang, professor of microbiology in K-State’s College of Veterinary Medicine, has received his third grant in three years for development of a vaccine for E. colirelated conditions in humans and animals.

A stack of railroad ties that have been stressed to the point of fracture in the patented test that Peterman developed along with other researchers at K-State

K-STATE WELL REPRESENTED AT THE SUMMER 2016 OLYMPICS The K-State track and field team sent seven current and former athletes to Rio de Janeiro, Brazil, to compete in the 2016 Olympic Games. K-State sent the second-most representatives of any Big 12 school to compete. Qualifying for the games were: Alyx Treasure (Canada), Akela

Zhang's research team, from left: Carolina Garcia, Jiachen Huan, Weiping Zhang, Qiangde Duan, Ti Lu Scan here to watch a video about how mosquitos spread the Zika virus. PHOTOS THIS PAGE: KSU DIVISION OF COMMUNICATIONS AND MARKETING

Jones (Barbados), Erik Kynard (USA), Shadae Lawrence (Jamaica), Beverly Ramos (Puerto Rico), Balazs Baji (Hungary) and Jeffrey Julmis (Haiti). Also representing the Wildcats in Rio was head track coach Cliff Rovelto, who served as a men’s assistant track coach for Team USA. WWW.FOUND.KSU.EDU

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DAVID MAYES PHOTOGRAPHY

GOOD WORK

The 2016–17 KSU Foundation Board of Trustees posed for a group photo at their fall meeting in K-State Student Union's Forum Hall.

The KSU Foundation Board of Trustees gives time, treasure and energy to advance K-State

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very nonprofit relies on a key group of volunteers and their gifts of time, energy and enthusiasm to be successful. For the KSU Foundation, that group is the Board of Trustees — K-State’s premier advocates, ambassadors and investors. Of the nearly 200,000 Kansas State University graduates, only 772 alumni and friends have ever been chosen to serve as members of the KSU Foundation Board of Trustees. These transformational K-Staters live in all regions of the United States and represent a wide array of professions and experience, offering invaluable leadership, professional skills, networking abilities and personal philanthropic support that contribute to the mission of the foundation.

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Trustees play an important role in promoting and advocating for K-State and have been integral in the success of the Innovation and Inspiration Campaign. They host foundation and university events, volunteer with colleges and programs on campus, mentor students, lend assistance in legislative matters that may impact the foundation and university, and connect the foundation to others who may have an interest in advancing K-State through philanthropy. Through the dedicated efforts and generosity of trustees, the KSU Foundation is able to provide a measure of excellence beyond public funding to secure continued academic excellence at K-State. To learn more, visit www.found.k-state.edu/trustees.

IMPACT OF TRUSTEES

26

trustees when the KSU Foundation was created in 1944

315

trustees for Fiscal Year 2017

34%

Trustees have contributed of the Innovation and Inspiration Campaign gifts to date

78 46%

trustees serve on the campaign steering committee and/or a college/unit committee of trustees have made a planned/ estate gift for K-State


COURTESY PHOTO

JANET SPRANG AYRES KSU Foundation Trustee since 1994

Why did you choose to serve on the Board of Directors?

Why did you choose to serve on the Board of Directors?

What is one memorable experience from your time on the board?

KSU Foundation Trustee since 2003 Served on the Board of Directors 2008–2016

Served on the Board of Directors 2008–2016

Serving on the Board of Directors provided a unique opportunity to support the university and to encourage others to become involved in giving to the foundation. Private gifts are critical to the welfare of the university, and every gift makes a difference, regardless of the amount. What an impact could be made if every K-Stater annually made a gift to the university!

KEVIN LOCKETT

From left: Greg Willems, Janet Sprang Ayres, Kevin Lockett and Rand Berney

Extraordinary service After nine years of service, Janet Sprang Ayres and Kevin Lockett have finished their terms on the KSU Foundation Board of Directors. The Board of Directors, made up of trustees and the chair of the K-State Alumni Association or his/her designee, is responsible for the management, control and supervision of the business and affairs of the KSU Foundation. Ayres and Lockett have helped lead the foundation through some important milestones — hiring a new president and CEO, moving to a new facility and launching the largest fundraising campaign in K-State history. Their time on the board comes to an end, but their unwavering support and advocacy for K-State is unending. We thank them for their time, their energy, their passion and their commitment to advancing K-State.

I witnessed a lot of exciting change and growth at the KSU Foundation while serving on the Board of Directors, but the most heartwarming for me has been the development of student philanthropy at K-State. The charge is led by the Student Foundation Board and is reflected in the success of their programming, which cultivates a culture of philanthropy among K-State students. These outstanding student leaders are managing projects like K-State Proud and are recognized nationally as a model for student philanthropy.

Why is it important to give your time and energy, as well as your treasure, to K-State? K-State has always been a great institution worthy of our support, commitment and loyalty. Many life lessons, relationships and leadership skills were developed while I was a student at K-State. Those experiences were possible because someone who came before me cared enough to provide the private means for K-State to thrive. I’ve always believed in paying back and investing forward. Now I have a responsibility to help pave the way for the talented young men and women who, in the future, will proudly call K-State their family.

It was an opportunity for me to give back to an institution that helped me to mature and get prepared for life. When I was a student at K-State, I spent most of that time taking from the university; learning principles that would begin to outline the life that I would lead. So it felt right, almost as an obligation, that I take any talent, treasure or resource I had accumulated and share that with the place that instilled in me many of the qualities that lead my life today.

What is one memorable experience from your time on the board? When I first joined the board, I remember the reaction around the room when we announced we were launching a half-a-billion-dollar campaign. Fast forward several years and now we’re in a $1 billion campaign. I think if I went back and replayed that meeting, you’d have never thought we’d be talking about launching a $1 billion campaign. But, at the same time, with the progress to date, it’s clear to see that I don’t stand alone in terms of K-State alumni who truly care for this university.

Do you have any key takeaways from your experience? It’s amazing for me to look at the people who have served on the Board of Directors that are incredibly successful in their own right. I’m sure they’re pulled in many different ways, but they all consider it important to find time to serve on this board and help lead the entity responsible for providing the financial resources for the growth of our university. It amazes me that CEOs of some of our best-run, publicly-traded and private companies, who are K-Staters, still find time to come back to Manhattan quarterly because the future of our university means so much to them. ■

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dream

FULFILLING A

Shirley Jacobson honors her family’s musical legacy by supporting K-State students By Hayli Morrison

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with the Pride of Wildcat Land. She will join fellow trumpeters like Sarah Grose, a third-year music education student and one of the first recipients of the Painter Family Marching Scholarship.

But this fall, Jacobson plans to fulfill her dream and play with a different band. At the invitation of band director Dr. Frank Tracz, Jacobson will play the Wabash Cannonball

Jacobson created the scholarship with a gift in her charitable trust, which provides her with lifelong payments and eventually endows her scholarship fund. By working with the KSU Foundation to sell the family farm and create her charitable trust, Jacobson avoided capital gains tax,

trumpet player raised in a musical family, Shirley Painter Jacobson planned to study at K-State until a flood wiped out her family’s farm income in 1951. After moving to Topeka, Kansas, she launched a career with BNSF Railway and joined the local Santa Fe Band, where she still plays trumpet after 64 concert seasons.

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GOOD PLAN

BRYANT KNIFFIN

KSU DIVISION OF COMMUNICATIONS AND MARKETING

Shirley Jacobson meets the first five recipients of the Painter Family Marching Scholarship, including Sarah Grose (far right).

received guaranteed income and honored her family’s musical legacy by helping K-State students. “I realized it was more lucrative and more dependable income than waiting for the crops to come in each year,” Jacobson said. “In the process, I saw the benefit of aiding other young people to follow their dream. I just wanted to help students.” Ready to start making a difference now, Jacobson gave cash so the scholarship could immediately begin helping

students like Grose. Jacobson enjoys the opportunity to meet her scholarship recipients, who in turn are honored by her generous support. “It’s very rewarding to see that people are willing to donate to the marching band because we do put in a lot of time. It makes me want to continue to do my best in everything I do,” Grose said. “To know that someone cared enough to make it easier for me to pay for school is incredible.” ■

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GOOD FOR ALL

K-State academic leaders share how they use your gifts

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ollege deans, department heads and program leaders are often faced with situations that require funding in order to provide a solution. However, most funds available to them are designated for a specific purpose. Excellence funds, on the other hand, are private dollars to be used at the leader’s discretion, providing the flexibility to address emerging needs and opportunities. They allow university leaders to take calculated risks for big returns, support innovative ideas and new exploratory projects, attract and retain excellent faculty, staff and students, and provide unique experiences for K-Staters. Donors who contribute to excellence funds make a giant impact and help build a better university. A few K-State leaders share with us how excellence funds have made a difference for their programs.

PHOTOS: KSU DIVISION OF COMMUNICATIONS AND MARKETING

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“Excellence funds recently helped us win a $50 million Feed the Future Sustainable Intensification Innovation Lab grant from the U.S. Agency for International Development. I used excellence funds to send three faculty and staff members to Bangladesh and Tanzania to conduct need-assessment research, collect data, meet with possible local collaborators and prepare for a better proposal. As a result, a few dollars spent on international travel contributed significantly to us getting a $50 million grant.”

John Floros Dean, College of Agriculture


“Since 2014, we have used excellence funds to partially fund 24 new faculty positions — this includes money for equipment, funding of graduate students, travel and supplies. Being able to offer competitive startup packages is imperative to attract the highest-caliber faculty.

“Excellence funds have allowed us to offer scholarships to top-quality students in the state in order to be competitive with other hospitality programs across the country. In the spring of 2015, we became aware of three award-winning Kansas high school students who were interested in attending K-State to major in hospitality management. However, we knew that other programs would offer them scholarships, and our program does not have a scholarship fund designated for winners of this national competition. We were able to use excellence funds to extend a scholarship offer to each of these high-achieving students. All of them accepted and are in our program today.”

Kevin Roberts Director, Hospitality Management Program

"When we recruit high-caliber students, we absolutely must recruit the same high-caliber faculty to instruct these undergraduates. In the last two years, we’ve hired faculty who are well known and highly regarded in their fields. This is a direct result of our alumni and friends stepping forward to support our excellence funds, where we in turn can offer startup packages to bring these outstanding faculty to K-State.”

Darren Dawson Dean and the LeRoy C. and Aileen H. Paslay Chair, College of Engineering

“The computer furniture on the second floor commons area of Hale Library was coming apart at the seams after two decades of heavy use. This is where most of Hale’s 30,000-plus weekly visitors spend much of their time. Fortunately, we had excellence funds available to replace the furniture with more modern computer workstation furniture, and we were able to expand the number of computers available in the process. We also used excellence funds to upgrade our heavily used Wi-Fi in Hale Library, which was the number one request from students. Together, the two projects allowed us to create a more comfortable, functional and tech-friendly environment.”

Lori Goetsch Dean, K-State Libraries

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GOOD WORD

Voices

of philanthropy K-Staters share why they give “THE BEST PREPARATION FOR TOMORROW IS KNOWLEDGE. BY GIVING TO THE COLLEGE OF EDUCATION, WE HELP PREPARE NEW GENERATIONS FOR A BRIGHTER FUTURE.” — Betty Higbie ’55, who with husband Lee, created a scholarship for the College of Education

“It’s not going to bring my mother or stepmother back, but I know with all my heart that they are looking down and are proud that we are doing our part to help current and future cancer patients have hope through the research done at K-State.” — Lee Vendig II, who with his father, Tom Vendig ’52, created a research fund for the Johnson Cancer Research Center

“MY EDUCATION AT K-STATE WAS VERY IMPORTANT TO ME, AND I WANTED TO GIVE BACK TO THE SEATON COMPLEX TO SHOW MY SUPPORT FOR THE COLLEGE OF ARCHITECTURE, PLANNING AND DESIGN.” KSU DIVISION OF COMMUNICATIONS AND MARKETING

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— Dan Fankhauser ’67, who made a gift to support the Seaton Complex revitalization and expansion


GOOD IDEAS

Make a

difference

today

There are always many programs and projects on campus that need and deserve philanthropic support. Here are four we recommend.

Free student matinees at McCain Auditorium Every year, some 5,000 school-aged children ride buses to the K-State campus, from as far away as 60 miles, to take in a performance at McCain Auditorium. The free student matinees at McCain provide elementary and middle school students live arts education experiences. These performances are designed to nurture a lifelong appreciation of the performing arts and generally contain themes, messages and other curricular connections in a variety of subjects, enhancing students’ studies in the classroom. The program relies entirely on private funds and could be expanded with additional funding. To support the free student matinees at McCain Auditorium, you can give online at www.found.ksu.edu/give/mccainoutreach or contact Tracy Robinson at 785-532-7568 or tracyr@found.ksu.edu.

K-State Rodeo Club For 70 years, K-State Rodeo Club and Team members have been representing K-State while gaining valuable leadership and organizational skills. They compete in rodeos around the region and also host numerous events and clinics. The K-State Rodeo Club hosts one of the highestattended National Intercollegiate Rodeo Association rodeos each February in Weber Arena on campus. Rodeo team members use their own horses and equipment and plan their travel and lodging to and from competitions themselves. Donor support helps with scholarships, as well as practice facilities and equipment. To support the K-State Rodeo Club and Team, you can give online at www.found.ksu.edu/give/rodeo or contact Emilie Fink at 785-532-7571 or emilief@found.ksu.edu.

K-State Forensics Team One of K-State’s winningest teams wears suits for uniforms, and the only equipment they require is their wits. Founded in 1976, the K-State Forensics Team has won 30 individual national championships, won the state tournament 18 out of 20 years, and has been ranked in the top 20 in 22 of the last 24 years. Team members travel to competitions at least five weekends a semester. This makes holding a job to help pay for school expenses very difficult. Scholarships empower students to participate on the team, learning valuable educational and life skills such as critical thinking, dealing with criticism, knowledge of a variety of topics and finding and using their own voice. To support the K-State Forensics Team, you can give online at www.found.ksu.edu/give/forensics or contact Sheila Walker at 785-532-7511 or sheilaw@found.ksu.edu.

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GOOD LIST To support the programs mentioned in this issue, you can make an online gift or contact a development officer. Page 6

K-State Marching Band www.found.ksu.edu/give/band or contact Gordon Dowell at 785-532-7565 or gordond@found.ksu.edu

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College of Agriculture Dean’s Excellence Fund www.found.ksu.edu/give/agdean or contact Kim Schirer at 785-532-7517 or kims@found.ksu.edu

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K-State Libraries Excellence Fund www.found.ksu.edu/give/library or contact Nicole Askew at 785-532-7530 or nicolea@found.ksu.edu

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College of Engineering Dean’s Excellence Fund www.found.ksu.edu/give/engg or contact Brett Larson at 785-532-7519 or brettl@found.ksu.edu

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www.found.ksu.edu/give/hospitality or contact Suzanne DellSt. Clair at 785-532-7542 or suzanned@found.ksu.edu

Military Affairs Excellence Fund K-State is home to the state’s largest military population in higher education, and we are recognized nationally for our military inclusiveness. Heading up the efforts to welcome soldiers, veterans and their families into the K-State family is the Office of Military and Veterans Affairs. This office oversees programs that serve post 9/11-era military veteran students and their families to enable transition, employment and personal development. Contributions to this fund support leadership and professional development and peer networking opportunities for veteran students and enhancements to the university’s Army and Air Force ROTC programs. To support the Military Affairs Excellence Fund, you can give online at www.found.ksu.edu/give/military or contact Tracy Robinson at 785-532-7568 or tracyr@found.ksu.edu. ■

Department of Hospitality Management Excellence Fund

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K-State Insect Zoo www.found.ksu.edu/give/insect or contact Emilie Fink at 785-532-7571 or emilief@found.ksu.edu

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The Gardens at K-State www.found.ksu.edu/give/ksugardens or contact Emilie Fink at 785-532-7571 or emilief@found.ksu.edu

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Mobile Surgery Unit/Shelter Medicine program www.found.ksu.edu/give/sheltermed or contact Eric Holderness at 785-532-7593 or erich@found.ksu.edu

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Open/Alternative Textbook Initiative www.found.ksu.edu/give/alttext or contact Matt White at 785-532-3646 or mattheww@found.ksu.edu

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K-State Office for the Advancement of Women in Science and Engineering (KAWSE) www.found.ksu.edu/give/kawse or contact Sheila Walker at 785-532-7511 or sheilaw@found.ksu.edu PHOTOS: KSU DIVISION OF COMMUNICATIONS AND MARKETING

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2016 ANNUAL REPORT

Dear K-Staters, Welcome to KSU Foundation’s fiscal year 2016 Annual Report. We are pleased to present you with a summary of a memorable year in the history of KSU Foundation and Kansas State University, and the outstanding results that we have achieved together as K-Staters. This year had many highlights. Perhaps chief among them was the launch of the $1 billion Innovation and Inspiration Campaign for K-State. Driven by the momentum and excitement of this multi-year fundraising effort, gifts and commitments by alumni, friends, parents, faculty, staff, students and corporate partners of K-State totaled $150.6 million in the fiscal year that ended June 30, 2016. Rand Berney

This level of philanthropic support marks the third most successful year in charitable giving in the more than seven-decade history of the KSU Foundation, and the fifth consecutive year fundraising has topped $100 million. A closer look at this year’s giving reveals several exciting highlights: • 55,332 individuals made nearly 80,000 gifts. • Fifty-one percent of dollars raised came from Kansas State University alumni. • Twenty-five gifts and commitments were $1 million or more. • Gift commitments through estate planning, including wills, trusts and annuities, reached an all-time high of $53.9 million.

Sharon Evers

And that’s just the beginning. In the following pages, you will learn how loyal donors like you made a difference at K-State in FY16 with their philanthropic contributions. From outright gifts to endowed, from supporting students and faculty to facilities and programs, we were proud to partner with you to help leverage your generosity so it could have the greatest impact on campus. This is our impact report back to you, our philanthropic partners. As always we are grateful and humbled by the generous spirit of every donor who contributes. Your support and investment provides a measure of excellence for K-State to overcome challenges, now and in the future. We look forward to our continued partnership as we work to advance K-State together. With K-State Pride,

Greg Willems

Rand Berney, Chairman KSU Foundation Board of Directors

Sharon Evers, Acting Chair KSU Foundation Board of Trustees

Greg Willems, President and CEO KSU Foundation

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YOUR IMPACT AT A GLANCE

$150.6 million in gifts and commitments in FY16

$475.6 million

market value of the endowment pool, of which $342 million is in permanent endowment as of FY16

6,393

donor funds managed as of FY16

$53 million in new planned gifts in FY16 to be realized in the future

$72.2 million made available to campus, including $22.8 million from endowment distributions in FY16

$14.5 million

in scholarship dollars and other student awards made available to campus in FY16

$8.5 million

in annual gifts (gifts < $10,000) in FY16

$150+ million

average fundraising results over the past 5 fiscal years as of FY16 WWW.FOUND.KSU.EDU

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IMPACT REPORT

$211M $152M

Five-year fundraising results

$110.7M

FY12

FY13

$141.5M

$150.6M

FY15

FY16

FY14

How donors designated their gifts 29.5%

Student success

.5%

Designation pending

7.6%

3.3%

Faculty development

15.3%

Facilities enhancement

Programmatic support

43.8%

Excellence funds Learn more about excellence funds on page 8.

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Management of total assets 2%

5% 4%

13%

7%

7% 73%

9%

2%

62%

8% 8%

2011: $532 million Investments Pledges/deferred gifts receivable Cash

The KSU Foundation’s increasingly diversified portfolio of total assets has led to a $302 million increase in assets over the last five years.

2016: $834 million Other assets Real estate and other depreciable property Closely held stock

This increase has been driven by a number of factors. • An investments increase of $130 million from new endowed gifts and market performance of the pool • A private stock gift donated by a corporation that has grown by $85 million

• Real estate investments growth of $34 million • Gift pledges growth by $22 million • Cash gifts growth by $24 million

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KSU FOUNDATION BOARD OF DIRECTORS As of June 30, 2016 The KSU Foundation is fortunate to have a large body of trustees who support the university generously and serve as ambassadors in their communities. Trustees elect members of the board of directors, who serve as the foundation’s governing body. Directors meet quarterly to consider strategic and policy issues and also serve on standing committees to provide guidance and oversight to foundation staff. Janet Ayres Scottsdale, Arizona

Kevin Lockett Leawood, Kansas

Rand Berney Round Rock, Texas Chairman, Board of Directors

Steve Theede Houston, Texas

Jan Burton Boulder, Colorado Secretary, Board of Directors Charlie Chandler Wichita, Kansas David Everitt Marco Island, Florida Sharon Evers St. Joseph, Missouri Acting Chair, Board of Trustees Mike Goss Westport, Connecticut Treasurer, Board of Directors Carl Ice Westlake, Texas Steve Lacy Des Moines, Iowa Vice Chairman, Board of Directors Charlene Lake Dallas, Texas Kelly Lechtenberg Oakland, Nebraska

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$475.6 million

market value of the endowment pool, of which $342 million is in permanent endowment as of June 30, 2016.

3,300

Number of endowed funds as of June 30, 2016.

Impact for FY16

Mary Vanier Manhattan, Kansas Dan Yunk Manhattan, Kansas Chairman, Board of Directors K-State Alumni Association

Ex Officio members John Currie Director of Athletics Kansas State University April Mason Provost and Senior Vice President Kansas State University Gen. Richard Myers (Ret.) Interim President Kansas State University Amy Button Renz President and CEO K-State Alumni Association Greg Willems President and CEO KSU Foundation

GOOD FOR K-STATE • FALL 2016

$11.3M Scholarships and student support

$7.9M Research, excellence funds, department support and other

$3.6M Faculty support

$22.8M TOTAL DISTRIBUTIONS FROM ENDOWMENT

Guiding investment principles Manage actively: Excess returns can be generated via actively managed portfolios across global public and private asset classes. Seek value: Allocate capital to assets that are attractively priced and use a long-term investment time horizon as a sustainable advantage.

Stay diversified: Appropriate diversification drives longterm risk-adjusted returns and consistent absolute return generation. Focus on long-term investment horizon: Achieve excess riskadjusted returns over fullmarket cycles, not just over quarters and years.


IMPACTING THE FUTURE K-Stateâ&#x20AC;&#x2122;s endowment pool in FY16

ENDOWMENT POOL ASSET ALLOCATION Actual asset allocations as of June 30, 2016 Inflation sensitive

$65.2M 13.7%

Growth engine

By Lois Cox, Vice President of Investments/CIO, KSU Foundation

$303M

A diversified, global approach to managing this long term pool of endowed assets is essential to earning the distribution rate, plus inflation, over multiple market cycles. This strategy requires patience in maintaining the strategic asset allocation, management of the downside risk, and manager selection skill in implementation.

63.72%

Diversifiers

U.S. equities 13%

$66.6M

International equities 12%

14.01%

Emerging markets 13% Private capital 17%

Deflation hedge

Long-short equity 7%

$40.7M

Distressed debt 1%

8.56%

Associates. The fiscal year results were driven by strong returns in private investments, offset by weakness in the global equity markets. We anticipate low interest rates and slow global growth to keep investment returns moderately low over the near to medium term.

While investment returns have been muted over the past couple of years, KSU Foundation continues to outperform a benchmark of passive indices and performed in the top quartile of the endowment universe in fiscal year 2016 as measured by investment consultant, Cambridge

We continue to carefully consider the impact of spending relative to the ability to sustain and grow the endowment. For additional information on endowment returns, please visit www.found.ksu.edu/ investments.

INVESTMENT PERFORMANCE for period ending June 30, 2016

10%

Endowment pool

Annualized returns (%)

8.16 7.5%

Custom benchmark Absolute objective

5.07

5%

4.26

5.03

4.62

4.78

5.44

2.5% 0% -2.5%

-1.93

-2.13

1-Year

3-Year

5-Year

10-Year WWW.FOUND.KSU.EDU

27


Kansas State University Foundation Consolidated Statement of Financial Position June 30, 2016 and 2015 2016

2015

Net Change

Cash and cash equivalents

$62,138,318

$80,316,007

$(18,177,689)

Investments

672,381,936

673,967,565

(1,585,629)

58,676,189

63,261,091

(4,584,902)

2,877,582

2,622,338

255,244

199,843

230,603

(30,760)

15,151,853

1,624,345

13,527,508

Golf Course property and equipment, net of accumulated depreciation; 2016 — $2,863,359, 2015 — $2,317,185

7,683,152

8,043,680

(360,528)

Cash surrender value of life insurance policies

5,786,009

5,556,658

229,351

Other assets and accrued investment income

9,376,893

8,511,213

865,680

$834,271,775

$844,133,500

$(9,861,725)

$4,190,511

$16,097,451

$(11,906,940)

1,920,231

1,819,800

100,431

Assets held for others

11,515,786

11,383,291

132,495

Unitrust and annuity liabilities

17,860,993

18,459,316

(598,323)

Long-term debt

19,361,540

19,885,199

(523,659)

54,849,061

67,645,057

(12,795,996)

68,756,803

85,168,758

(16,411,955)

Temporarily restricted net assets

345,784,062

343,751,455

2,032,607

Permanently restricted net assets

364,881,849

347,568,230

17,313,619

779,422,714

776,488,443

2,934,271

$834,271,775

$844,133,500

$(9,861,725)

Assets

Pledges receivable — net of allowance and discounts Receivables from estates Loans receivable Property and equipment, net of accumulated depreciation; 2016 — $578,850, 2015 — $2,641,915

TOTAL ASSETS

Liabilities and Net Assets Liabilities Accounts payable, deposits and other liabilities Accrued liabilities

TOTAL LIABILITIES Net Assets Unrestricted net assets

Total net assets TOTAL LIABILITIES AND NET ASSETS

28

GOOD FOR K-STATE • FALL 2016


2016 ANNUAL REPORT Kansas State University Foundation Consolidated Statement of Activities For the Year Ended June 30, 2016 and 2015 2016 Total

2015 Total

Net Change

$93,310,141

$99,986,355

$(6,676,214)

Investment Income (losses), net

(6,218,650)

(3,737,637)

(2,481,013)

Net realized and unrealized gains on investments

22,979,566

2,318,156

20,661,410

14,448,080

14,287,294

160,786

3,918,067

3,790,059

128,008

(140,107)

(138,926)

(1,181)

128,297,097

116,505,301

11,791,796

Scholarships and other student awards

15,592,757

13,590,903

2,001,854

Academic

25,756,192

12,353,648

13,402,544

Administrative — faculty and student support

38,034,648

39,782,471

(1,747,823)

Capital improvements

27,916,906

41,286,597

(13,369,691)

107,300,503

107,013,619

286,884

576,804

517,967

58,837

17,485,519

15,169,584

2,315,935

125,362,826

122,701,170

2,661,656

2,934,271

(6,195,869)

9,130,140

Net Assets, Beginning of Year

776,488,443

782,684,312

(6,195,869)

Net Assets, End of Year

$779,422,714

$776,488,443

$2,934,271

Revenues, Gains and Other Support Contributions

Other support Operational service charges, management fees and other Receipts for grants, research, supplies, travel and other university departmental activities and funding allotments, etc. Actuarial gains (losses) on unitrusts and annuity obligations Total revenues, gains and other support

Expenses and Support Direct university support

Subtotal Investment — loan interest expense and write-off Foundation administration and fundraising expenses Total expenses and support Change in Net Assets

The Consolidated Statement of Financial Position and the Consolidated Statement of Activities are excerpted from the Kansas State University Foundation’s 2016 financial statements, which were audited by BKD, LLC. For a complete copy, please view online at www.found.ksu.edu or send a request to the Controller, KSU Foundation, 1800 Kimball Ave. Ste. 200, Manhattan, KS 66502-3373.


Berney Family Welcome Center

Engineering Hall

College of Business Administration

Thank you to the generous donors who invest in facilities at Kansas State University. Ensuring K-State success through enhanced facilities, equipment and technology. inspire.k-state.edu â&#x20AC;¢ #KStateInspires

2016 ANNUAL REPORT INSIDE

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