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Kansas State University Foundation  |  2008 Annual Report


In 2005, Kansas State University publicly announced its most ambitious fundraising effort ever — the $500 million Changing

$529.5 million The grand total raised during the Changing Lives Campaign that concluded in fiscal year 2008. The university celebrated the campaign’s success at an event in April.

Lives Campaign. In December 2007, the campaign closed and surpassed its goal by more than $29 million, marking the newest milestone in K-State’s history. Our donors and volunteers did their part to ensure that students have the chance to receive a quality education; faculty members are rewarded for their efforts; classrooms, lecture halls, studios and labs are functional and current; and that goals set became milestones achieved. Here are just a few examples of these milestones that will continue to change the lives of K-Staters.

Kansas State University Foundation  |  2008 Annual Report


Alumni, friends, faculty and staff of

Volunteer milestones

K-State made extraordinary contributions of time and resources that truly made the Changing Lives Campaign a success.

110

The number of faculty and staff volunteers for the All-University Campaign. Throughout the Changing Lives Campaign, nearly half of all current K-State employees made gifts to the university due in large part to the success of the faculty- and staff-led All‑University Campaign.

176

The number of alumni and friends from throughout the nation who served as campaign volunteers.

300

The number of students who volunteered for the K-State Proud student campaign. In its first year, the campaign raised more than $60,000 for Student Opportunity Awards. This year, the goal for K-State Proud was $70,000. When the campaign concluded, an astonishing $93,000 was raised for our students, by our students.

21,500

2

The number of alumni and friends who attended campaign events.

Kansas State University Foundation  |  2008 Annual Report


Student success

F

lashing her bright smile, Maria Laude speaks about life with an enthusiasm that is reminiscent of children beginning their first day of school. It seems fitting that Maria, a junior at K-State, is studying elementary education.

Maria Laude Wicks Civic Leadership Scholarship recipient

936 new scholarship funds were established during the Changing Lives Campaign, including the Wicks Civic Leadership Scholarship.

“I’ve always wanted to be a teacher,” she said. “I played teacher at home — I loved writing on an overhead projector, and my favorite place was a school-supply store. Now, I like to mentor children and help them learn more than just lesson plans — things like right from wrong — and I like to be able to give them guidance.” Maria’s excitement for helping others doesn’t stop in the classroom. She is heavily involved with academic mentoring at K-State and community service work in and out of Manhattan, Kan. This summer, she served as a mentor to young children at Little Apple Day Camp at Manhattan’s City Park. Her commitment to helping society is exactly what earned her the Wicks Civic Leadership Scholarship at K-State.

“I’m very grateful for the Wicks’ generosity,” Maria said. “The fact that they have continued the civic leadership scholarship at K-State shows their dedication to students who serve the community.” Throughout the Changing Lives Campaign, 936 scholarships were established by faithful K-State alumni, friends and corporate partners. Of those scholarships, 196 are deferred commitments, which will not be available for awarding immediately, but are an important part of K-State’s future. Scholarships enhance K-State’s ability to help students develop their full potential. As an active participant and coordinator in K-State’s Relay for Life, Maria realizes the value of her scholarship. “The scholarship has really made an impact on my involvement on and off campus,” Maria said. “If I didn’t have a scholarship, I’d be much more concerned with working than being involved on campus and in the community. “When I found out I received this scholarship, I cried!” she said. “I am so thankful.”

“I think helping people is very rewarding,” Maria said. “The fact that I’ve received a scholarship because of my civic leadership is humbling.” The scholarship, established during the Changing Lives Campaign by Brian and Christine Wicks of Georgetown, Texas, is awarded to students who have received the K-State Civic Leadership Scholarship presented by Farm Bureau Financial Services the previous year.

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Kansas State University Foundation  |  2008 Annual Report


Faculty development

D

ean Zollman has dedicated his career, 38 years of which he has spent at K-State, to improving the teaching and learning of physics.

Dean Zollman Porter Chair in Physics recipient

49 new endowed faculty professorships were established during the Changing Lives Campaign, including the Porter Chair in Physics.

“I try to look at what makes physics hard for some people to learn, and then I develop new materials to help people learn physics,” he said. A University Distinguished Professor and head of the Department of Physics, Zollman was named the William and Joan Porter Chair in Physics in 2006. The professorship is part of the Faculty of Distinction program, established by the Kansas Legislature in 2000 to provide supplemental funding to qualifying gifts. The Porter Chair is one of 49 new endowed faculty professorships established during the Changing Lives Campaign to ensure K-State’s present and future ability to attract and retain faculty of the highest caliber. Zollman, who has received numerous honors including the Carnegie Foundation for the Advancement of Teaching Professor of the Year Award and the National Science Foundation Director’s Award for Distinguished Teaching Scholars, exemplifies top-notch research and teaching at K-State.

us with some flexibility that we would not have had otherwise. “We are doing multiple things to boost projects a little further,” he said. “We’re starting a new initiative on nanotechnology and biological applications of physics. We hired two new faculty members, and without having some extra funds, we probably would have only been able to hire one. By having those two work together, we can have a bigger impact on the department.” In addition, Zollman said the department is using additional funds from the Porters to host an international conference on short pulse lasers and their interaction with matter and to supplement funds from a National Science Foundation grant for a new teaching laboratory. “The changes are still happening,” he said. “The biggest changes are coming right now as we invest in new faculty, we invest in new courses and we provide the department with resources that will lead it into the future. This is an investment, thanks to Bill and Joan, that we’re making now that will pay off big time in the future.”

“The chair itself is to support the department head in overseeing the physics department and its overall mission,” Zollman said. “Those funds, and other funds that Bill and Joan Porter have established, have really provided

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Kansas State University Foundation  |  2008 Annual Report


Learning environment

K

needs of today’s learning environment.

The new center now handles 1,200 client visits a semester for diagnostic and therapeutic sessions and serves as a center for teaching, learning and research for students and faculty in the College of Human Ecology’s communication sciences and disorders program. The facility’s new classroom space is scheduled all day long for the program’s graduate and undergraduate courses.

“The new Speech and Hearing Center enhances all aspects of student training,” said Robert Garcia, program director of the communication sciences and disorders program. “Our classrooms include state-of-theart technology. The clinic space is designed to serve children and adults with diverse communication needs. Our research laboratories provide additional opportunities for students to participate in faculty projects.”

-State’s new Speech and  Hearing Center is scheduled around-the-clock.

Speech and Hearing Center 13 buildings were constructed or upgraded during the Changing Lives Campaign, including the Speech and Hearing Center.

A privately funded, $1.2 million project made possible by leadership gifts from Ruth and Jack Rice of Garden City, Kan., and the Louis W. and Dolpha Baehr Foundation of Paola, Kan., K-State’s Speech and Hearing Center is one of 13 new buildings that were either created or enhanced during the Changing Lives Campaign. The renovations have made a big difference. Students gain valuable experience holding sessions that integrate state-of-the-art technology to enhance their learning as well as the clients’ experiences.

The result is not only a better research and learning environment, but also a better environment for serving the community. “The services have been great all along, but the new facility is a lot warmer and a lot friendlier,” said a parent of a client. “Especially with kids who have issues other than just language, it’s important for them to have a place that’s friendly and warm.”

A new audiology suite introduces students to the hearing aspects of communication, and specialized laboratories provide space for learning about anatomical structures and their function in communication. And like many of the new and renovated facilities made possible by the Changing Lives Campaign, the Speech and Hearing Center was built to accommodate the technological

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Kansas State University Foundation  |  2008 Annual Report


The historic Changing Lives Campaign

Campaign milestones

made great strides in energizing and engaging new and current donors to the university.

100 36,392

The number of individuals and corporations who made gifts of more than $1 million.

The number of people who contributed to K-State for the first time during the Changing Lives Campaign.

111,605 427,215

10

The number of alumni and friends who gave to the campaign. The number of contributions made to K-State during the campaign.

Kansas State University Foundation  |  2008 Annual Report


Fiscal year highlights

Volunteer leaders

Our mission

Dear friends: Thanks to each of our many generous donors and volunteers, we are pleased to report several milestones for fiscal year 2008. In addition to the closing of the successful Changing Lives Campaign, the Kansas State University Foundation had a prosperous fundraising year reaching an all-time high of $99.5 million in contributions. Of the total, $60.4 million was received in cash, and $39.1 million was committed through pledges and deferred gifts. Lee Harris

The $500 million Changing Lives Campaign was the most ambitious campaign in K-State’s history, and it was because of so many of you that we rose to the challenge and exceeded our goal by $29 million. The historic campaign created opportunities to engage alumni, friends, faculty and staff and highlighted the vitality and enthusiasm that has underscored K-State’s rise to prominence. With state support for K-State at only 25 percent, our university continues to rely on gifts from alumni and friends, and our faculty’s ability to earn grants and contracts, to fund the major portion of the university’s budget. Your support makes a difference across the university toward student success, faculty development and the learning environment.

Paul Stephenson

On behalf of K-State’s students, faculty and staff, we extend our heartfelt thanks for your contributions. Your gifts have been crucial in establishing K-State as a stellar land-grant university. Sincerely, Lee Harris Chairman Executive Committee

Paul Stephenson Chairman Board of Trustees

Cash Deferred

Dollars in millions

Gary Hellebust

$99.5

$100

$92.8

$90

$91.5

$70.9

$70 $60.7

$50 $40

$65.4

$67.8 $57.6

$44.8 $37.3

$54.2

$51.7

$60.4

$41.8

$44.5

$28.1

$38.5 $16.7

$16.2 2001

Executive committee as of June 30, 2008

2002

2003

2004

$26

$35.2

$39.8

$39.1

Paul Edgerley Secretary, board of trustees Brookline, Massachusetts

Curtis Frasier Treasurer, board of trustees Beloit, Kansas

Lee Harris Chairman Leawood, Kansas

Jackie Hartman Chairman, K-State Alumni Association Board of Directors Fort Collins, Colorado

Phil Howe Manhattan, Kansas

Kevin Lockett Leawood, Kansas

Earl McVicker Hutchinson, Kansas

Gen. Richard Myers Arlington, Virginia

Bill Sanford Naples, Florida

Paul Stephenson Chairman, board of trustees Wichita, Kansas

Betty Tointon Greeley, Colorado

Ex officio Sam Hands President Livestock and Meat Industry Council

Gary Hellebust President/CEO KSU Foundation

Scottsdale, Arizona

Duane Nellis

Duane Cantrell

Provost Kansas State University

Vice chairman Topeka, Kansas

$20

12

Respect, diligence and integrity guide our interactions, decisions and work.

The executive committee meets quarterly to consider policy and management issues and is authorized to act on behalf of the board of trustees between its annual meetings. Executive committee members also apply their expertise to committees including investment advisory, development and prioritization, technology, budget and operations, accounting and audit, trust management advisory and nominating.

Janet Ayres

$30

$10

The Kansas State University Foundation is helping to build the world’s finest land-grant university.

The executive committee is composed of the chairman, vice chairman, secretary and treasurer of the board of trustees, chairman of the K-State Alumni Association Board of Directors and additional members elected from the board of trustees.

$83.3

$80

$60

Our vision

Our values

Gary Hellebust President and CEO KSU Foundation

Gift activity 2001–2008

The mission of the Kansas State University Foundation is to secure and prudently manage private gifts in support of Kansas State University and foster a culture that unites philanthropic desires with university priorities.

KSU Foundation Executive Committee

Jon Wefald President Kansas State University

Randy Coonrod Wichita, Kansas

Tara Cupps 2005

2006

2007

2008

Vice chairman, board of trustees Wichita, Kansas

Kansas State University Foundation  |  2008 Annual Report


Volunteer leaders

KSU Foundation Board of Trustees The foundation’s governing board consists of elected volunteers who serve four-year terms. The board of trustees meets annually to consider foundation policies and strategic direction. Trustees also help identify, cultivate and solicit support for the university from individuals, corporations and foundations. Trustees not only volunteer their time and expertise, they also provide continuous financial support to the university.

14

Board of trustees as of June 30, 2008

Ann Becker

Janet Boisseau

John Carlin

Roger Coulter

Linda Dressler

Doug Gaston

Susie Grier

Gretta Hoffman

Wichita, Kansas

Wichita, Kansas

Manhattan, Kansas

Broken Arrow, Oklahoma

Irvine, California

Leawood, Kansas

Wichita, Kansas

Hays, Kansas

Dean Becker

Gary Boomer

Lynn Carlin

Timothy Cranor

Paul Edgerley

Rozanne Gaston

Bill Harbin

Allan Holiday

Wichita, Kansas

Kansas City, Missouri

Manhattan, Kansas

Shawnee Mission, Kansas

Brookline, Massachusetts

Leawood, Kansas

Salina, Kansas

Manhattan, Kansas

Barb Adee

Charles Belew

Kathleen Borck

Tom Carlin

Tara Cupps

Gary Edwards

Jeff Gates

Barbara Harris

Jeannie Hollis

Newton, Kansas

Wichita, Kansas

Manhattan, Kansas

Manhattan, Kansas

Wichita, Kansas

Houston, Texas

New York, New York

Leawood, Kansas

Tucson, Arizona

Ray Adee

Jeanne Belew

Lee Borck

Michael Carlisle

Terry Cupps

Peggy Edwards

Malinda Gilchrist

Lee Harris

Phil Hollis

Newton, Kansas

Wichita, Kansas

Manhattan, Kansas

Lawrence, Kansas

Wichita, Kansas

Houston, Texas

Leawood, Kansas

Tucson, Arizona

John Allen

Kara Belew

Nadalie Bosse

Charlie Chandler

Chris Curtin

Howard Erickson

Manhattan Beach, California

Dianne Honomichl

Wichita, Kansas

Leawood, Kansas

Wichita, Kansas

Overland Park, Kansas

Manhattan, Kansas

Mary Kevin Giller

Clay Harvey

Newport, Kentucky

Topeka, Kansas

De Soto, Kansas

Jerod Heiman

Kevin Honomichl

Wichita, Kansas

De Soto, Kansas

Chris Hernandez

Julie Hostetler

Kansas City, Kansas

Manhattan, Kansas

Chris Hess

Phil Howe

Carlsbad, California

Manhattan, Kansas

Mary Hewson

Cleve Humbert

Larned, Kansas

Manhattan, Kansas

Doug Hill

Mark Hutton

St. Louis, Missouri

Wichita, Kansas

Jerry Hill

Mary Hutton Wichita, Kansas

Manhattan, Kansas

Marina Del Rey, California

Michael Goss

Joleen Hill

Colleyville, Texas

Westport, Connecticut

Manhattan, Kansas

Celinda Graham

Vicki Hill

Wichita, Kansas

St. Louis, Missouri

Jim Graham

Colleen Hodes

Wichita, Kansas

Rockaway, New Jersey

Albuquerque, New Mexico

John Graham

Steven Hodes

Ron Iman

Manhattan, Kansas

Rockaway, New Jersey

Mary Lee Graham

Elaine Hodgson

Albuquerque, New Mexico

Manhattan, Kansas

Overland Park, Kansas

Sue Greig

Michael Hodgson

Manhattan, Kansas

Overland Park, Kansas

Carolyn Grier

Hank Hoesli

Wichita, Kansas

Wichita, Kansas

Chuck Grier

Sally Hoesli

Wichita, Kansas

Wichita, Kansas

Jim Grier

Don Hoffman

Wichita, Kansas

Hays, Kansas

Robert Allen

Andrew Bell

Brent Bowman

Dave Chelesnik

Hugo Dahlstrom

Richard Evers

Voorhees, New Jersey

Houston, Texas

Leawood, Kansas

Del Mar, California

McPherson, Kansas

St. Joseph, Missouri

Doug Anstaett

Deloris Berland

Kent Bradley

Michael Christensen

Neisha Dahlstrom

Sharon Evers

Topeka, Kansas

Manhattan, Kansas

Valley Center, Kansas

Waterloo, Nebraska

McPherson, Kansas

St. Joseph, Missouri

Lucinda Anstaett

Steve Berland

Ron Bramlage

Susan Christensen

Robert Davis

Jerry Fairbanks

Topeka, Kansas

Manhattan, Kansas

Junction City, Kansas

Waterloo, Nebraska

Topeka, Kansas

Goodland, Kansas

Terry Arthur

Ann Bidwell

Barbie Breedlove

Ann Christian

Venette Davis

Joe Farrar

Manhattan, Kansas

Chicago, Illinois

Olathe, Kansas

Manhattan, Kansas

Topeka, Kansas

Manhattan, Kansas

Douglas Ayre

Larry Bingham

Loren Breedlove

Charlie Claar

Bob DeBruyn

Nancy Farrar

Larned, Kansas

Lake Quivira, Kansas

Olathe, Kansas

Garden City, Kansas

Manhattan, Kansas

Manhattan, Kansas

Jane Ayre

Beth Bird

Ben Brent

James Coffman

Amy Dobbins

Roger Fingland

Larned, Kansas

Anthony, Kansas

Manhattan, Kansas

Manhattan, Kansas

Olathe, Kansas

Manhattan, Kansas

Jack Ayres

Dan Bird

Eleanor Brent

Larry Coffman

Mark Dobbins

Barry Flinchbaugh

Scottsdale, Arizona

Anthony, Kansas

Manhattan, Kansas

St. Joseph, Missouri

Olathe, Kansas

Manhattan, Kansas

Janet Ayres

James Birkbeck

Dwayne Broddle

Sally Coffman

Dixon Doll

Cathy Flinchbaugh

Scottsdale, Arizona

Holton, Kansas

Wichita, Kansas

St. Joseph, Missouri

San Francisco, California

Manhattan, Kansas

Bruce Bachman

Mary Birkbeck

Karen Brokenicky

Sharon Coffman

Marilee Donaldson

Bernard Franklin

Centralia, Kansas

Holton, Kansas

Manhattan, Kansas

Manhattan, Kansas

Plano, Texas

Kansas City, Kansas

Sally Baker

Rolando Blackman

Phil Brokenicky

Brenda Compton

Rich Donaldson

Curt Frasier

Granbury, Texas

Dallas, Texas

Manhattan, Kansas

Wichita, Kansas

Plano, Texas

Beloit, Kansas

Thane Baker

Tamara Blackman

Bill Brooks

Gib Compton

Granbury, Texas

Frisco, Texas

Overland Park, Kansas

Wichita, Kansas

Dick Barclay

John Blackwell

Mary Brooks

Randy Coonrod

Rogers, Arkansas

Larned, Kansas

Overland Park, Kansas

Wichita, Kansas

Janice Barclay

Nancy Blackwell

Bernie Butler

Bonnie Cordill

Rogers, Arkansas

Larned, Kansas

Manhattan, Kansas

Topeka, Kansas

Michael Barrera

Doug Blackwood

Bob Campbell

Jerry Cordill

Denver, Colorado

Olathe, Kansas

Wichita, Kansas

Topeka, Kansas

Jon Baum

Jerry Boettcher

Duane Cantrell

Nancy Coulter

Shawnee Mission, Kansas

Beloit, Kansas

Topeka, Kansas

Broken Arrow, Oklahoma

Eldon Boisseau

Leslee Cantrell

Wichita, Kansas

Topeka, Kansas

Lorie Doolittle Bowman Leawood, Kansas

Joe Downey Manhattan, Kansas

David Dreiling Manhattan, Kansas

Kristen Dreiling Manhattan, Kansas

Don Dressler Irvine, California

Sherry Frasier Beloit, Kansas

Marilyn Galle Manhattan, Kansas

Nelson Galle Manhattan, Kansas

Mark Galyardt Atlanta, Georgia

Susie Galyardt Atlanta, Georgia

Henry Gardiner

Manhattan, Kansas

Tom Giller Manhattan, Kansas

Gary Glatz Gurnee, Illinois

Nick Golden Overland Park, Kansas

Susan Golden Overland Park, Kansas

Jack Goldstein Manhattan, Kansas

Joann Goldstein

Carl Ice Mary Ice Colleyville, Texas

Rae Iman

Linda Irsik Gainesville, Florida

Max Irsik Gainesville, Florida

Rebecca JacksonClaar Garden City, Kansas

Connie Jaynes Tulsa, Oklahoma

Ashland, Kansas

Kansas State University Foundation  |  2008 Annual Report


Volunteer leaders

Board of trustees (continued)

Kenny Knight

Bill Livingston

Doris Miller

Chuck Munson

Bob Regnier

Shad Shadwick

Bill Stolzer

Mary Vanier

Brian Wicks

Lyons, Kansas

Wichita, Kansas

Manhattan, Kansas

Junction City, Kansas

Leawood, Kansas

Greeley, Colorado

Manhattan, Kansas

Manhattan, Kansas

Georgetown, Texas

Tamara Knight

Cheryl Lockett

Joe Miller

Deanna Munson

Sid Reitz

Jan Shaw

Eleanor Stolzer

Randy Vautravers

Christine Wicks

Lyons, Kansas

Leawood, Kansas

Spring Lake, New Jersey

Junction City, Kansas

Salina, Kansas

Ashland, Kansas

Manhattan, Kansas

Andover, Kansas

Georgetown, Texas

Joan Knoll

Kevin Lockett

Monte Miller

Andrew Murphy

Deborah Rempe

William Shaw

Joe Stout

Dennis von Waaden

Cathy Wieland

Topeka, Kansas

Leawood, Kansas

Manhattan, Kansas

Great Bend, Kansas

Windsor, Colorado

Ashland, Kansas

Cottonwood Falls, Kansas

Edwards, Colorado

Colby, Kansas

Loren Koch

Beth Lull

Ron Minarcini

Dick Myers

Michael Rempe

Connie Sink

Veryl Switzer

Sally von Waaden

Scott Wieland

Marietta, Georgia

Salina, Kansas

Marco Island, Florida

Arlington, Virginia

Windsor, Colorado

Manhattan, Kansas

Manhattan, Kansas

Edwards, Colorado

Colby, Kansas

Sandra Koch

Dennis Lull

Harish Minocha

Mary Jo Myers

Michael Riordan

Roger Sink

Bill Taylor

Ed Wambsganss

Don Wilbur

Marietta, Georgia

Salina, Kansas

Manhattan, Kansas

Arlington, Virginia

Prairie Village, Kansas

Manhattan, Kansas

Overland Park, Kansas

Larkspur, Colorado

Allenspark, Colorado

Patrick Koons

Joyce Lutz

Rich Mistler

David Nelson

Barry Robinson

Bob Sjogren

Marilyn Taylor

Eunice Wambsganss

Michael Wilds

Burdick, Kansas

Topeka, Kansas

Fairway, Kansas

St. George, Kansas

Rolling Hills, California

Newton, Kansas

Overland Park, Kansas

Larkspur, Colorado

Manhattan, Kansas

Sharon Koons

Ronald Lutz

John Mollett

Mary Jo Nelson

Marcia Robinson

Red Skelton

John Teeter

Byron Warta

Larry Williams

Burdick, Kansas

Topeka, Kansas

Olathe, Kansas

St. George, Kansas

Rolling Hills, California

Wichita, Kansas

Lenexa, Kansas

Newton, Kansas

Halstead, Kansas

Duane Koster

Dan Lykins

Kathryn Mollett

Larry Nettles

Roy Robinson

Cindy Smith

Patricia Teeter

Marjorie Warta

Chuck Wilson

Garden City, Kansas

Topeka, Kansas

Olathe, Kansas

Leawood, Kansas

Kansas City, Kansas

Niwot, Colorado

Lenexa, Kansas

Newton, Kansas

Del Mar, California

Kathleen Koster

Judy Lykins

John Montgomery

Gary Olson

Sylvia Robinson

Doug Smith

Rich Teichgraeber

Dan Wassenberg

Diane Wolfington

Garden City, Kansas

Topeka, Kansas

Junction City, Kansas

Lawrence, Kansas

Kansas City, Kansas

Niwot, Colorado

Benbrook, Texas

Marysville, Kansas

Wichita, Kansas

Rick Krause

Jo Lyle

deAnn Moore

Julie Oltjen

David Rock

Jane Snell

Steve Theede

Jon Wefald

Scot Wolfington

Great Bend, Kansas

Manhattan, Kansas

Mission Hills, Kansas

Overland Park, Kansas

Olathe, Kansas

Overland Park, Kansas

Houston, Texas

Manhattan, Kansas

Wichita, Kansas

Rita Krause

Lynn Markel

Sam Moore

Rob Oltjen

Lisa Rock

Virgil Snell

Richard Thiessen

Ruth Ann Wefald

Dave Woolfolk

Great Bend, Kansas

Rogers, Arkansas

Mission Hills, Kansas

Overland Park, Kansas

Olathe, Kansas

Overland Park, Kansas

Manhattan, Kansas

Manhattan, Kansas

Manhattan, Kansas

Barbara Kruger

Renay Martin

John Morgan

John Perrier

Brent Rockers

Bill Snyder

Bernita Thorn

Loma Wegerer

Julia Woolfolk

Henderson, Nevada

Overland Park, Kansas

Dodge City, Kansas

Clive, Iowa

Manhattan, Kansas

Topeka, Kansas

Moline, Illinois

Manhattan, Kansas

Lon Kruger

Rick Martin

Pacific Palisades, California

Lynne Rockers

John Snyder

Bob Thorn

Vern Wegerer

George Yapp

Overland Park, Kansas

Linda Morgan

Jan Pishny

Henderson, Nevada

Stilwell, Kansas

Clive, Iowa

West Des Moines, Iowa

Topeka, Kansas

Moline, Illinois

Barrington Hills, Illinois

Cathryn Lacy

Terry Matlack

Lyle Pishny

Hal Ross

Sharon Snyder

Ann Tiao

Warren Weibert

Gary Younger

Des Moines, Iowa

Shawnee, Kansas

Pacific Palisades, California

Stilwell, Kansas

Wichita, Kansas

Manhattan, Kansas

Voorhees, New Jersey

Manhattan, Kansas

Wichita, Kansas

Stephen Lacy

Bob McCaustland

Gary Proffitt

Mary Lou Ross

Dean Spencer

Joe Tiao

David Weigel

Sharon Younger

Des Moines, Iowa

Manhattan, Kansas

Sterling, Kansas

Wichita, Kansas

Council Grove, Kansas

Manhattan, Kansas

Kansas City, Missouri

Wichita, Kansas

Charles Lamphear

John McCloskey

Casey Rachofsky

Bill Sanford

Sharon Spencer

Betty Tointon

Elizabeth Weigel

Cheryl Yunk

Lincoln, Nebraska

Evergreen, Colorado

San Diego, California

Naples, Florida

Council Grove, Kansas

Greeley, Colorado

Kansas City, Missouri

Manhattan, Kansas

Karen Larson

Earl McVicker

Marc Rachofsky

Duane Saunders

P. J. Stamps-Kitchen

Greg Tucker

Darrell Westervelt

Dan Yunk

Olathe, Kansas

Hutchinson, Kansas

San Diego, California

Eden Prairie, Minnesota

Nashville, Tennessee

San Francisco, California

Manhattan, Kansas

Manhattan, Kansas0

Thayne Larson

Candy Merrill

Don Rathbone

Denise Schneider

Bill Stannard

Donna Vanier

Jane Westfall

Belleville, Kansas

Overland Park, Kansas

Manhattan, Kansas

Hinsdale, Illinois

Mission Woods, Kansas

Brookville, Kansas

Manhattan, Kansas

Westlake Village, California

Alan Lauck

Fred Merrill

Randy Rathbun

Rob Schneider

Susan Stannard

Jack Vanier

Douglas Weyer

Santa Fe, New Mexico

Overland Park, Kansas

Wichita, Kansas

Hinsdale, Illinois

Mission Woods, Kansas

Brookville, Kansas

Lake Dallas, Texas

Larry King

Jon Levin

Lauren Meyer

Les Regier

Rhea Serpan

Amy Lou Stephenson

John Vanier

Herb Whitney

Denver, Colorado

Manhattan, Kansas

Lenexa, Kansas

Overland Park, Kansas

Danville, California

Wichita, Kansas

Salina, Kansas

Houston, Texas

Douglas Kitchen

Lila Levin

Mark Meyer

Ann Regnier

Jeannine Shadwick

Paul Stephenson

Marty Vanier

Mary Sue Whitney

Nashville, Tennessee

Manhattan, Kansas

Lenexa, Kansas

Leawood, Kansas

Greeley, Colorado

Wichita, Kansas

Manhattan, Kansas

Houston, Texas

Ann Johnson Lawrence, Kansas

Jim Johnson Colorado Springs, Colorado

Steve Johnson Lawrence, Kansas

Steven Johnson Overland Park, Kansas

Larry Justice Olathe, Kansas

Jim Kadel Beloit, Kansas

Karol Kadel Beloit, Kansas

Gial Kaegi Derby, Kansas

Marge Kaegi Derby, Kansas

Bill Keller Pratt, Kansas

Carolyn Keller Littleton, Colorado

Cindy Keller Pratt, Kansas

Frank Keller Littleton, Colorado

Rich Kerschen Wichita, Kansas

Beth Kesinger Manhattan, Kansas

Don Kesinger Manhattan, Kansas

Mary Lee Kind

16

Aaron Morrison Salina, Kansas

Cy Moyer Phillipsburg, Kansas

Bill Muir Manhattan, Kansas

Elaine Mull Pawnee Rock, Kansas

Glenn Mull Pawnee Rock, Kansas

Keith Mull Larned, Kansas

Dennis Mullin Manhattan, Kansas

Kansas State University Foundation  |  2008 Annual Report


Corporate and foundation leaders

The following corporate and foundation partners have supported Kansas State University with gifts of $100,000 or more during fiscal year 2008. Willard J. and Mary G. Breidenthal Foundation Buhler Inc.

Kansas State Bank Kao Family Foundation Kemira OY

Cadence Design Systems Inc.

Knighthawk Inc.

Cargill Inc.

Fred C. and Mary R. Koch Foundation

E. Eugene Carter Foundation

Koch Industries Inc.

Cereal Food Processors Inc.

Lectra USA Inc.

Cessna Foundation Inc.

Merial Limited

Mark A. Chapman Foundation

Occidental Petroleum Charitable Foundation

ConocoPhillips

Pepsi Cola Bottling Co. of Marysville Inc.

Carl M. and Ruth L. Coonrod Family Foundation

Rand Graphics Inc.

Coonrod & Associates Construction Co. Inc. The Dow Chemical Foundation Edgerley Family Foundation

Rottinghaus Co. Inc. Schaefer Johnson Cox Frey & Associations A.J. & Lynda Scribante Charitable Foundation

Fieldhouse Development Inc.

Shell Oil Company

Fort Dodge Animal Health

Tointon Family Foundation

Gardiner Angus Ranch LLC

Toro Foundation

Garmin International Inc. Hale Family Foundation

Via Christi Health Systems Inc.

Dane G. Hansen Foundation

Westar Energy

Hill’s Pet Nutrition Inc.

Wildcat Construction Co. Inc.

R.D. & Joan Dale Hubbard Foundation

World Golf Foundation Inc.

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currently exploring partnership opportunities with K-State at Salina and its unmanned-aircraft systems program.

Star E-1 LLC

State and city area economic development leaders joined K-State in the effort to bring GE Aviation to Manhattan, Kan.

GE Aviation selects K-State for new University Development Center GE Aviation recently selected Kansas State University from a highly competitive pool of candidates as the site for its second University Develop­ ment Center (UDC) in the United States. A leading worldwide provider of commercial and military jet engines and components as well as integrated digital, electric power and mechanical systems for aircraft, GE selected K-State from a group of more than 300 universities with engineering programs. GE cited K-State’s large talent pool as the top reason for the site’s selection. “GE has a long-standing tradition of incorporating college interns into our work force so we have a great appreciation for what engineering students can contribute,” said Stuart Mullan, president of the digital systems business of GE

Aviation. “We’re pleased to be able to invest in our youth through collaboration with Kansas State. This center will create a strong pool of emerging engineers to provide design and development work for our aerospace programs.” Through this partnership, GE will create co-ops and internships that K-State College of Engineering students are eligible to fill as well as more than 40 full-time engineering positions. These well-compensated jobs will offer hands-on, practical experience in a real-world setting that will prepare K-State students for their future careers. Staff members at the UDC will perform high-level engineering services including software development, verification and validation, mechanical design and hardware design. GE is also

“GE Aviation will be a great asset to the community and our campuses,” said K-State Provost Duane Nellis. “The company’s investment in Manhattan is a credit to the quality of our students and faculty and speaks volumes about the strength of our programs. We are looking forward to this innovative partnership.” This collaborative effort between K-State, GE, the state of Kansas and the City of Manhattan advances K-State’s mission, aligns university goals with corporate priorities and enriches the regional economy. The collaboration with GE is seen in large part as a success of the Knowledge Based Economic Development (KBED) program, a joint venture between K-State, the City of Manhattan, the Manhattan Area Chamber of Commerce and the National Institute for Strategic Technology Acquisition and Commercialization that aims to attract new and emerging businesses to Manhattan. The partnership will bring new opportunities for K-Staters while promoting business growth in Manhattan. The GE partnership illustrates the role of K-State’s corporate and foundation relations office in facilitating access to student and faculty talent for current and potential corporate partners. Collaboration with these partners is creating mutually beneficial relationships for the university, corporations and the greater economy.

Corporations create diversity partnerships at K-State Enhancing diversity and fostering a multicultural environment at K-State are strategic priorities of the university, and the Office of Diversity and Dual Career Development at K-State has made great strides in creating a welcoming and inclusive campus climate. Cargill Inc., Koch Industries Inc. and the Fred C. and Mary R. Koch Foundation recently joined Archer Daniels Midland and Dow Chemical Company as K-State’s latest partners in the university’s diversity initiatives. The diversity partnerships were established as a result of outstanding leadership and collaboration at K-State.

“Our corporate partners contributed time, talent and resources to K-State in support of academic programs, diversity initiatives, scholarships and facilities improvements across campus,” said Myra Gordon, associate provost for Diversity and Dual Career Development. “These gifts are a huge boost to our comprehensive diversity recruitment and retention programs at K-State. This is a strategic imperative for K-State, and we are deeply grateful for the funding and leadership committed to Project IMPACT.” The two leading corporations invested in student scholarship and faculty fellowship support as well as the following components of Project IMPACT: College for a Day programs at K-State for high school and community college students; Relationship Recruiting, which focuses on mentoring and retention; and the Summer Bridge Program.

Cargill, Koch and the Koch Foundation made commitments to K-State this year totaling $1.4 million to support Project IMPACT, a program to guide diversity efforts and create an ideal pipeline for the cultivation, recruitment, retention and graduation of multicultural students.

Kansas State University Foundation  |  2008 Annual Report


Assets and endowments

Investments

Endowment growth sustains K-State’s future This chart shows the foundation’s total assets, which topped $471 million in fiscal year 2008. The purple bars indicate the portion of total assets that are permanent endowments, the majority of which are held in the endowment pool. This pool earned an investment return of 1.46 percent in fiscal year 2008. The green bars represent temporarily restricted assets including donor-restricted expendable funds, quasi-endowed funds and unrestricted net assets. The foundation building, university real estate fund and underwriting funds for the foundation and the university are included in unrestricted net assets.

Investment report Dollars in millions

$500

$453.2

$471.2

$396.8

$400 $319.2 $300 $137.2

$163.4

$342.4

$181

$151.2 $131.2

$200 $100

Other foundation assets Permanent endowments

$182.0

$211.2

2004

2005

$245.6

2006

$289.8

2007

$290.2

2008

$48.3 million transferred to the university Charitable contributions help K-State develop new programs, provide opportunities for students and faculty, and enhance university life. In fiscal year 2008, the foundation transferred $48.3 million to the university, the bulk of which came from current year expendable contributions. The remainder came from the annual investment return on endowed funds established in prior years. In the same fiscal year a total of $99.5 million was committed to the foundation, a new record. $60.4 million was received in outright gifts of cash, real estate or appreciated securities + 39.1 million was committed through pledges or deferred gifts (not yet available to distribute to the university) $99.5 million in total gift activity The $60.4 million received in outright gifts was designated in this way: $11.7 million in endowed gifts (only investment return and earnings are available for distribution)

1.5 million in trusts (not available for distribution until a later date)

+ 47.2 million in expendable contributions $60.4 million in outright gifts

20

Endowed gifts: Endowment additions were made to both permanently endowed and quasi-endowed funds. Gifts that are designated as permanent endowments are held in perpetuity. The gift is invested and a portion of the annual investment return is used to support the purpose specified by the donor. The portion of the investment return that is available to support the fund’s purpose is based on the foundation’s distribution policy, which is set and reviewed annually by the executive committee. Quasiendowed funds are managed like a permanent endowment but allow the university to utilize principal when needed. Expendable gifts: Expendable funds are available immediately to the designated university purpose. Trusts: In the case of trusts, donors make a contribution to the foundation to establish a trust fund benefiting the donor. The donor receives income from the trust for a set period of years or for life. No money from the trust goes to the designated university purpose until the trust is terminated.

June 30 closed out a very difficult 12 months with the endowment pool performing in the top ranks of its peers but under performing its custom benchmark. The under performance relative to the benchmark during the fiscal year was primarily a result of the hedge fund managers under performing an absolute benchmark component of treasury bills plus 4 percent. The managers produced positive returns when the market indexes were negative, but their particular absolute benchmark component required a significant positive return that was not obtained. Over the longer term, the managers are expected to, and have, exceeded their benchmark.

●●Added an opportunistic allocation to private

capital type distressed debt in the tactical allocation policy, a policy that operates within a shorter time frame than the strategic allocation policy that governs the long-term investment allocation of the endowment pool. ●●Continued to develop the structure for a

subsidiary of the KSU Foundation to manage the investment functions of the organization and potentially other similar entities. ●●Formalized an agreement with the

Department of Finance in the College of Business Administration to provide funds from the expendable pool core allocation to be used in an investment class as a practical application of investment principles.

The investment committee, consisting of nine trustees with financial markets expertise, works with staff and an investment consultant to formulate investment policy and, from that, an appropriate asset allocation. With this guidance, staff manages the portfolio of external managers and funds-of-funds.

adding a contingency allocation, to supplement the liquidity allocation, to provide reserve liquidity to be utilized before liquidating core investments for liquidity needs. The committee also approved replacing a fund-of-funds absolute return investment with a multi-manager portfolio created by staff and previously utilized in the endowment pool to increase the return without increasing volatility, reduce fees and increase control over manager selection and allocations.

●●Completed a consultant selection process that

resulted in continuing to utilize Cambridge Associates, primarily due to their larger alternatives manager database and greater proportion of endowment clients.

The committee and staff continue to work with the consultant in shifting the portfolio strategic asset allocation and implementation policies to reflect the more global nature of the markets being experienced currently and expected to continue in the future.

●●Received a report from KSU Foundation

auditors regarding findings of a review of investment procedures, FASB 157 and the auditor’s recommendations. Particular emphasis was placed on difficult to value holdings and the procedures in place to

Endowment pool performance analysis (as of June 30, 2008) Endowment pool Relative objective Absolute objective

15% 13.1% 11.2% 10.3%

10%

12% 9.2%

8.1% 6.5% 5% 1.5%

2.1%

1-year

3-year

5-year

Endowment pool asset allocation The endowment pool at June 30, 2008, had 11 percent allocated to a deflation hedge strategy comprised of high-quality fixed income and cash; 38 percent allocated to traditional equity strategies, both domestic and international; 18 percent allocated to an inflation hedge strategy comprised of those assets that would cushion the portfolio from an unexpected rise in inflation such as real estate, commodities and energy; 18 percent in hedge funds, both absolute return and long/short equity; and 15 percent in private capital, consisting of private equity, distressed debt and venture capital. Deflation hedge Fixed income

●●Refined the expendable pool asset allocation,

In addition to ongoing portfolio and manager due diligence issues, the following were major issues addressed by the investment committee and staff during the fiscal year:

Supporting K-State today and in the future A balance of endowments, expendable funds and trusts is vital to the welfare of K-State. A university is typically judged by its endowment level as it represents the university’s long-term ability to offer scholarships, compensate staff and provide academic support. Expendable funds provide dollars that make an immediate impact on furthering the university’s goals. Trusts represent a future revenue stream for K-State.

monitor manager valuation policies and track portfolio exposure to those assets affected.

10-year

The relative objective of the endowment is to seek competitive investment performance compared to appropriate capital market measures, such as securities indices. The absolute objective of the endowment is to seek an average total annual real return equal to or exceeding the distribution policy rate; specifically the CPI plus the distribution policy rate. This objective shall be measured over annualized, rolling 10-year time periods. The intent of this objective is to preserve, over time, the principal value of assets as measured in real, inflation-adjusted terms.

11% Private capital 15%

Traditional equity Domestic and international

38% Inflation hedge Real estate, commodities, energy

18%

Hedge funds 18%

Endowment pool returns Endowment returns at fiscal year-end were: 1.46 percent, 11.16 percent, 13.11 percent and 8.12 percent for one-, three-, five- and 10-year periods respectively. The absolute return objective of equaling distributions plus expenses plus inflation fell short by 1.07 percent over a 10-year period. Meeting or exceeding the absolute return objective is a measure of how well the endowment is attaining inter­ generational equity, the balancing of current and future distributions from the endowment. The endowment pool return exceeded the custom benchmark return, which compares performance to appropriate market indexes, in the three-, five- and 10-year periods but underperformed in the one-year time period, as explained in the first paragraph. Performance data is updated on the investments portion of the KSU Foundation Web site about six weeks after the end of each quarter; policies are updated as changes occur. See www.found.ksu.edu/investments.

Kansas State University Foundation  |  2008 Annual Report


Financials

Kansas State University Foundation

Kansas State University Foundation

Manhattan, Kansas

Manhattan, Kansas

Consolidated Statements of Financial Position

Consolidated Statement 0f Activities

For the year ended June 30,

For the year ended June 30, 2008

ASSETS

2008

Cash and cash equivalents Short-term investments and certificates of deposit Investments Pledges receivable, net Receivables from estates Loans receivable Real estate and other depreciable property Accumulated depreciation Net real estate and other depreciable property — Golf course Cash surrender value of life insurance policies Other assets and accrued income TOTAL ASSETS

$30,543,723 2,765,000 386,713,660 18,491,584 2,300,442 1,993,700 26,740,520 (4,802,888) 2,050,469 3,426,415 1,008,942 $471,231,567

2007 $24,982,670 2,690,000 385,189,661 13,405,563 5,630,970 1,839,336 18,031,197 (4,216,461) 1,767,223 3,119,776 763,683 $453,203,618

LIABILITIES AND NET ASSETS Current liabilities Accounts payable, deposits and other liabilities Accrued liabilities Assets held for others Current obligations, unitrust and annuity liabilities Current portion of note, mortgage and bond payable Total current liabilities Other liabilities Unitrust and annuity liabilities, less current obligation Note payable — Nanoscale, less current portion Note payable — Printing services, less current portion Mortgage payable — Golf course, less current portion Line of credit — Golf course Bonds payable — Educational and Agricultural Research Facility Rev Bonds, less current portion Total other liabilities TOTAL LIABILITIES Net assets Unrestricted net assets (designated) Temporarily restricted net assets Permanently restricted net assets Total net assets TOTAL LIABILITIES AND NET ASSETS

22

REVENUES, GAINS Temporarily Permanently AND OTHER SUPPORT Unrestricted restricted restricted Contributions Investment income Net realized and unrealized gains (losses) on asset transactions 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 gain/(loss) on unitrusts and annuities obligations Net assets released from restrictions Satisfaction of program restrictions Total revenue, gains and other support

$1,640,889 1,421,253 9,055,307 2,921,970 510,207

$1,890,309 1,376,924 8,327,441 2,682,248 1,081,710

$15,549,626

$15,358,632

$4,877,933 (3,852,680) 11,373,995

$44,443,523 14,457,047 (1,530,986)

$11,709,320 309,848 (13,839,862)

2008 Total

2007 Total

$61,030,776 10,914,215

$48,997,216 13,760,628

(3,996,853)

52,820,777

3,540,968

3,540,968

3,424,257

81,340

5,732,585

1,799

5,815,724

6,451,268

(375) (2,242,262) 43,783,649

(750,687) 2,166,401 (43,783,649)

$57,562,568

$20,734,234

$8,696,517 7,106,506 29,056,559 3,445,200

– – – –

$48,304,782

22,820 75,861 – $(1,720,214)

(728,242) – –

(5,508,058) – –

$76,576,588

$119,946,088

– – – –

$8,696,517 7,106,506 29,056,559 3,445,200

$10,962,142 6,058,132 27,064,155 12,657,664

$48,304,782

$56,742,093

1,925,792 345,689 3,690,984 6,832,249

– – – –

– – – –

1,925,792 345,689 3,690,984 6,832,249

2,557,011 269,948 3,540,688 5,681,416

$61,099,496

$61,099,496

$68,791,156

$15,477,092

$51,154,932

EXPENSES AND SUPPORT Direct university support Scholarships and other student awards Academic Administrative — faculty and student support Capital improvements Subtotal

$20,149,748 1,596,158 546,708 633,880 708,062

$22,013,970 1,669,890 – 1,052,568 1,101,747

450,000

500,000

$24,084,556

$26,338,175

NET ASSETS AT BEGINNING OF YEAR

$39,634,182

$41,696,807

$34,317,786 107,083,926 290,195,673

$35,489,312 86,178,444 289,839,055

ADJUSTMENT TO NET ASSETS Cumulative effect of change in accounting principal

$431,597,385

$411,506,811

$471,231,567

$453,203,618

Investment — portfolio management Investment — loan interest expense and write-off KSUF administration KSUF fundraising Total expenses and support CHANGE IN NET ASSETS

Prior period adjustment NET ASSETS AT END OF YEAR

$(3,536,928)

$20,734,234

$(1,720,214)

35,489,312

86,178,444

289,839,055

411,506,811

360,351,879

2,705,025

171,248

2,076,832

4,953,105

$107,083,926

$290,195,673

(339,623) $34,317,786

(339,623) $431,597,385

– $411,506,811

The Consolidated Statements of Financial Position and the Consolidated Statements of Activities are excerpted from the Kansas State University Foundation’s 2008 financial statements, which were audited by Varney and Associates, CPAs, LLC. For a complete copy, please view online at ​ www.found.ksu.edu or send a request to Director of Accounting Services, KSU Foundation, 2323 Anderson Ave. Ste. 500, Manhattan, KS 66502-2911.

Kansas State University Foundation  |  2008 Annual Report


2008 Annual Report produced by the KSU Foundation’s Department of Communications. Photographs by: KSU Photographic Services/Dan Donnert, J&C Imaging/John La Barge and Steve Rasmussen, F.J. Gaylor Photography, Eleri Griffin, KSU Department of Physics/Jane Peterson, KSU Foundation/Flavia Hulsey. Cover: Holton Hall. Right: Dickens Hall.

2323 Anderson Avenue, Suite 500 Manhattan, Kansas 66502-2911 785-532-6266  |  800-432-1578

www.found.ksu.edu


2323 Anderson Avenue, Suite 500 Manhattan, Kansas 66502-2911

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KSU Foundation Annual report 2008