Messiah University's The Bridge magazine: President's Report issue - Fall 2020 - Financials

FINANCIALS

PRESIDENT’S REPORT CONTENTS 30 Revenues, Expenditures 31 Net Assets 32

Lifetime Societies

34 New Heritage Society, Board of Trustees, Scholarships 35

Charitable Gift Allocation

A PRESIDENT’S REPORT FOREWARD FROM TRUSTEE EUNICE STEINBRECHER

OFFICE OF MARKETING AND COMMUNICATIONS

Even though we may believe that a constant in life is change, who among us would have said a virus would dramatically disrupt almost everything worldwide and, specifically, impact

DONOR PROFILE

Bernardo Michael Bernardo Michael has held many titles at Messiah University during his distinguished tenure, including his current dual roles as professor of history and co-chair of the Department of History. In addition, he served as special assistant to the president and provost for diversity affairs from 2010-2017. In that role, he worked to foster diversity and inclusive excellence in all spheres of the institution.

the way we educate and care for our students, faculty and staff at Messiah University?

The president, her administration, faculty and staff have worked tirelessly to care for our students. Their safety has been entrusted to us and every endeavor to build on that trust is being mobilized. Just a few examples of building and maintaining trust came through the Messiah Cares initiative designed to serve and help with emergency grants for spring 2020 students and trustees’ grants for incoming fall 2020 students.

The swift issuance of refunds or credits on room and board when spring semester was interrupted by the virus is another example.

Let us recall words from Psalms 31, trusting in the Lord and saying, “Thou art my God – my times are in Thy hand.” Financial implications are impacting Christian higher education, causing continuous shifting so that each day provides an opportunity to see anew.

In 1968, by request from President D. Ray Hostetter, I became a member of the Board of Trustees. Serving as a trustee over the past 34 years has enabled me to be a part of a board who closely monitors and gives input as to how Messiah meets the challenges of change. It has been rewarding to see us grow during these years. We have been successful in completing

“My vision for diversity, equity and inclusion developed during my work at the Office of Diversity Affairs and draws inspiration from Matthew 20: 1-16. The verses call for humans to acknowledge their entanglements with the exclusions and inequities of their past if they are to create a new vineyard of belonging that embraces diversity, fosters inclusion and pursues equity,” said Michael.

In recognition for his meaningful enduring advocacy for diversity, inclusion and reconciliation at Messiah, the 2017-2018 SGA Leadership Cabinet established the Dr. Bernardo Michael Grant, which is now

this difficult year with positive cash reserves. In the midst of the storm, we are pleased to share that the Standard and Poors rating is A-. This is indicative of a well-managed financial plan over the decades. It is also a testament of your faithfulness as donors in continuing to support the university. President Phipps is suggesting that donors lend support to the Messiah Fund, which is used to support scholarship aid and other program priorities, and The Good Samaritan Fund to provide financial support to many students who have need due to unexpected circumstances in their personal lives. The University thrives to the extent that our alumni and friends continue to support our mission to educate students toward maturity of intellect, character and Christian faith. You are very highly valued as partners in this effort. The world needs Messiah grads!

— Eunice Steinbrecher ’58, Trustee

a fully vested scholarship endowment. The grant will be awarded to disadvantaged and racially underrepresented students with significant financial need. These types of scholarships are valued resources to help us in our ongoing vision for promoting diversity and inclusive excellence at Messiah University.

We are grateful for a legacy of faculty and educators who inspire their students to not only emulate their examples of Christian lives committed to service and justice, but also to foster furthering the mission of Messiah through financial support.

“ The verses call for humans to acknowledge their entanglements with the exclusions and inequities of their past if they are to create a new vineyard of belonging that embraces diversity, fosters inclusion and pursues equity.”

— Bernardo Michael referencing Matthew 20: 1-16

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FINANCIALS

2020 201 9 201 8

REVENUES (IN 000S)

Net tuition and fees Government grants and appropriations Gifts and grants Capital gifts Endowment return designated for operations Investment Income Other sources Auxiliary enterprises Total operating revenues

60,883 2,456 1,783 2,792 7,495 594 3,104 17,762 96,869

59,916 967 2,209 1,346 7,365 (9) 4,563 21,477 97,834

58,231 964 2,253 8,293 7,245 1,048 4,035 21,248 103,317

36,920 9,089 21,101 1,909 14,529 15,972 99,520 (2,651)

39,120 9,385 21,211 2,772 16,078 14,353 102,919 (5,085)

38,907 9,388 19,874 2,496 16,198 14,838 101,701 1,616

EXPENSES (IN 000S)

Instructional Academic support Student services Public service Auxiliary enterprises Supporting services, institutional support Total operating expenses Net operating income

TORI SIDELLA ’21

N O N O P E R AT I N G R E V E N U E S , E X P E N S E S A N D OT H E R C H A N G E S ( I N 0 0 0 S )

Endowment and life income gifts 1,278 2,040 2,116 Endowment investment returns, net of amount designated for operations (9,032) (1,708) 2,218 Change in value of beneficial interest in perpetual trusts (86) (21) 53 Other nonoperating income/(expense) - - Investment return on trusts and gift annuities 348 196 348 Change in value of split interest agreements (Trusts and CGA’s) (395) (198) (342) Gain (Loss) on disposal of fixed assets Total nonoperating revenues, expenses, and other changes 7,887 309 4,393 Total changes in net assets (10,538) (4,776) 6,009 Net assets, beginning of year 244,951 249,727 243,718 Net assets, end of year 234,413 244,951 249,727 Tuition and fees is net of financial aid of $41.9 million, $41.9 million and $41 million in 2020, 2019 and 2018 respectively.

REVENUES

2019-2020 fiscal year 63% Net tuition and fees 18% Auxiliary expenses 8% Endowment return designated for operations 3% Capital gifts 3% Government grants and appropriations 3% Other 2% Gifts and grants 1% Investment income 3 0 | FA L L 2 0 2 0 • T H E B R I D G E • M E S S I A H U N I V E R S I T Y

EXPENSES

2019-2020 fiscal year

37% Instructional 21% Student services 16% Supporting services, institutional support 15% Auxiliary enterprises 9% Academic support 2% Public service

2020 201 9 201 8

NET ASSETS

S U M M A R Y S TAT E M E N T O F E N D OW M E N T F U N D S ( I N 0 0 0 S )

Donor endowment Board-designated endowment Total endowed funds Endowment percent change

41,824 88,106 129,930 -5.91%

43,250 41,756 94,697 96,328 137,947 138,084 -0.10% 2.91%

$ millions

250

ASSETS (IN 000S)

Cash and cash equivalents Notes and accounts receivable, net Promises to give, net Interest receivable Inventories Prepaid expenses and other assets Investments, gift annuities, and assets held in trust Loans receivable - students Deposits with trustee under debt agreements Beneficial interest in perpetual trusts Property and equipment, net Total assets

9,511 5,617 7,286 3,127 3,037 2,235 6,171 6,885 7,389 132 164 194 595 579 574 495 1,503 1,282 144,142 155,073 152,413 2,091 2,449 2,910 - 232 5,320 3,871 3,957 3,978 152,206 151,264 156,356 322,341 330,760 339,937

200

150

LIABILITIES AND NET ASSETS (IN 000S)

Liabilities: Accounts payable and accrued expenses Student deposits Funds held in custody for others Deferred revenue Annuities payable Funds held in trust for others Long-term debt U.S. Government grants refundable Other liabilities Total liabilities

10,275 2,668 61 1,342 3,780 389 64,330 1,879 3,204 87,928

6,360 1,345 76 1,655 3,861 304 66,577 2,535 3,096 85,809

8,742 1,482 67 1,480 3,892 304 68,744 2,504 2,995 90,210

Net assets: Without donor restrictions 178,043 185,544 192,313 With donor restrictions Restricted, time and purpose 14,860 18,766 18,753 Restricted, in perpetuity 41,510 40,641 38,661 Total net assets with donor restrictions 56,370 59,407 57,414 Total net assets 234,413 244,951 249,727 Total liabilities and net assets 322,341 330,760 339,937 Total change in net assets (10,538) (4,776) 6,009

100 Without donor restrictions Donor restricted, time and purpose Donor restricted, in perpetuity

50

0

2012

2014

2016

2019

2020

But I trust in you, Lord; I say, “You are my God.” My times are in your hands...

— Psalm 31:14-15 (NIV)

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DONOR PROFILE

Mynette (Hock) Satoris ’60 When Mynette (Hock) Satoris ’60 was thinking about ways to honor her parents, she began a conversation with our Senior Director of Charitable Services Bob Brown ’82, a fellow alum. Her father, Harry D. Hock, was a young man in the depths of despair when the Lord touched him at a camp gathering of the Brethren in Christ in Roxbury, Pennsylvania. Despite the limitations of his eighth-grade education, he accepted the challenge of Christ’s call to minister to the downtrodden. The first ministry of the Rev. Hock and his wife,

LIFETIME SOCIETIES M E S S I A H L E G AC Y

Lifetime cumulative giving totaling $10,000,000 or more Leonard Fry† Calvin G. & Janet C. High* Abe† & Gladys† Mellinger The Parmer Family Foundation George A. & Barbara Parmer* MESSIAH TRUST

Lifetime cumulative giving of $1,000,000 to $9,999,999 Vernon E. & Faye R. Anderson Ernest L.† ‘48 & Kathryn G. (Tyson) ‘46 Boyer Brethren in Christ - Cooperative Ministries Covenant Fund Conestoga Wood Specialties Norman† & Elizabeth M. Hahn* Harold H.† ’37 & Mary Elizabeth† (Hoover) ’40 Engle Charles F.† & Ann E.† Frey* Emerson C.† ‘57 & May† Frey* Larry E. & Lois A. Gladfelter* Harry R. Hitchcock† William M.† & Lucille M.† Hollinger Lawrence L. & Julia Z. Hoverter Charitable Foundation David G.† & Beatriz A.† Howe Richard† & Louise K.† Jordan*

Catherine, was on Skid Row in Detroit, Michigan, where the family spent several years ministering to the needy of that city.

Later, they traveled extensively on a variety of evangelistic endeavors, towing a 16foot travel trailer as their home on wheels wherever they went. The couple eventually completed their ministry in Belleville, Pennsylvania, where they retired from a life well led in the grace of God. The Rev. Harry D. & Catherine Hock Scholarship Fund at Messiah University supports students who are biblical and religious studies or Christian ministry majors intending to enter the ministry.

Those students who may be specifically planning to enter the Brethren in Christ

ministry are given special consideration.

We are deeply grateful when Messiah alumni such as Satoris choose to honor their family members by helping current and future students afford Rev. Harry D. Hock a high quality university education. The impact of their generosity reverberates across the generations.

Richard E. ‘70 & Sharon N. Jordan Josiah W. & Bessie H. Kline Foundation The Kresge Foundation Ralph S.† & Dorothy Larsen* Lilly Endowment Inc. Martin’s Famous Pastry Shoppe James A. & Donna F. Martin* McCormick Family Foundation W. Edwin† & Miriam† Naugle Galen M. ‘48 & Boots L.† (Buckwalter) ‘49 Oakes* D.S.† & Helen† Poorman Sawyer Products Maurice† & Dorothea I.† Shaffer John E.† & Ida† Sollenberger The Stabler Foundation Donald B.† & Dorothy L.† Stabler LeRoy M.† ‘55 & Eunice (Frey) ‘58 Steinbrecher* The Whitaker Foundation John L.† & C. Jeanette† Witmer World Vision Inc. Anonymous Donors (2)

Bingaman & Son Lumber Co. Max E. & Martha Bingaman* Chris C. ‘79 & Heidi Jo (Grove) ‘80 Bingaman* Dean E. & Karen Heintzelman John A. Blessing Foundation Ernest S.† & Elsie L.† Burch Marion Barker Burr† David E.† ‘61 & Jean Byer Charlie B. ‘56 & Miriam N. (Nissly) ‘56 Byers* Clemens Family Corporation Asa W.† ‘16 & Anna E.† (Kipe) ‘16 Climenhaga Cumberland County Industrial Development Authority J. Harold ‘58 & Ruth† (Eckert) ‘58 Engle* Melvin E.† ‘48 & Vivian Eyster* Richard F. Fake ‘37† C.J.† & Harriet† Fredricksen* S. Johannah Gearhart† General Electric Foundation Norma Gotwalt † HARSCO Corporation Agnes R. Hayden Scott A. ‘89 & Gaye Y. Heintzelman* The High Foundation Evert C.† & Mildred S.† Hokanson Charles B. & Sally Hoober* George C.† & Patricia† Hoopy Clyde W. & Barbara A. Horst* D. Ray† ‘48 & Audrey (Fisher) ‘50 Hostetter* Clarence W. Hottel, Sr† Randall B. ‘66 & Judy G. Inskip Johnson & Johnson Family of Companies

PRESIDENT’S CIRCLE

Lifetime cumulative giving of $250,000 to $999,999 Association of Independent Colleges & Universities of Pennsylvania M. Louise† Aughinbaugh Richard S. & Ann B. Barshinger Family Foundation Quentin Berg Trust Quentin† & Frances H.† Berg

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PHOTO COURTESY OF UNIVERSITY AND BIC ARCHIVES

FINANCIALS

W. M. Keck Foundation W. Wayde† & Glenda Kelly Allen F. Knouse ‘68 Leon E.† & Margaret M.† Kocher Jeffrey F. ‘74 & Leslie (Lustig) ‘75 Lehman* P. Galen† ‘53 & Sara (Brubaker) ‘53 Lenhert Wayne A. & Martha G. Marcho* Aaron J. ‘48 & Jean† Martin Stephen W. ‘78 & Jana M. (Shultz) ‘77 McBeth Jacob & Ada Miller Trust Kenneth V. & Renee A. Moreland* William L.† & Geraldine M.† Murray David A. & Joni J. Nicol Paul W. & Laura† Nisly* Rocco and Nancy Ortenzio Foundation Jeannie Pascale PBS Coal Inc. Pew Memorial Charitable Trusts Preis Investment Company Harry W.† & Nancy R. Preis

Marlin & Nancy† Riegsecker Andrew S. ‘84 & Jane D. (Davis) ‘83 Samuel* Maynard & Carolyn Sauder Oscar F.† & Pauline M.† Shaffer The Joseph T. and Helen M. Simpson Foundation Jerry T.† & Hilary M. Simpson L.B. Smith Educational Foundation Inc. Robert H.† ‘42 & Marilyn L. (Byer) ‘51 Smith John B.† & Mary V.† Sollenberger Ellis R.† & Louise P.† Speakman The John Frederick Steinman Foundation Stover Family Foundation J. Matthew & Debra Stover* John Templeton Foundation Kermit Thomas† Turkey Hill Dairy Daniel Vollmer† The Franklin H. & Ruth L. Wells Foundation Paul A. ‘63 & Elaine K. (Crider) ‘57 Wengert

Willow Valley Associates Marlin H. & Doris Ann Thomas* Amelia C. Winter† Witmer Foundation Leslie K. & Marion H. Witmer* Todd M. ‘91 & Deborah J. Witmer* Kenneth E.† & Minta Wolfe Donald R.† ‘55 & Anna Ruth (Kline) ‘78 Zook* Anonymous Donors (3) † Messiah University gratefully acknowledges the generosity of donors who are deceased. * Messiah University thanks the parents of our current and former students who continue to generously support the University’s ongoing education mission.

SUPPORTERS OF MESSIAH UNIVERSITY

24.3% Friends 24.0% Trustees 19.2% Alumni 16.9% Parents 7.3% Business 6.9% Foundations 0.9% Organizations 0.4% Government 0.1% Church M E S S I A H U N I V E R S I T Y• T H E B R I D G E • FA L L 2 0 2 0 | 3 3

FINANCIALS

N E W H E R I TAG E S O C I E T Y M E M B E R S

Thank you to those who became members of the Heritage Society during the 20192020 fiscal year. The Heritage Society was established to appropriately thank those who have included Messiah University in their wills, created a deferred gift arrangement, or established an endowed fund.

Their dedication is greatly appreciated.

Stephen J. ’88 & Jody L. (Brothers) Brandt ’89 William R. & Judith B. Higgins Thomas & Jean M. Hunsberger Heather S. Shelford ’95 Richard E. Truett Joy L. (Drost) Weaver ’93 Anonymous (1) A LU M N I C O U N C I L | 2 0 1 9 -2 0 2 0

Barbara Bingham ’03 Charles Blachford ’06 George Book ’97 Paul Broomell ’14 Doris Crider ’60 Rudy Crider ’71 John Frey ’83 Elizabeth Gallo ’16 Gina Gilliam ’83 Judith Hamilton ’63 Robert Hamilton ’62

Kerry Hamlen ’85 Moses Kavishe ’16 Jenna McClain ’17 Derek Mosley ’13 Jean Mosley ’13 Phil Naegely ’15 Jason Polansky ’19 Jacob Specht ’11 Kathleen Stuebing ’63 Gerald Wolgemuth ’58 Ruth Wolgemuth ’60

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Mr. George A. Parmer, chair Harrisburg, Pa. Dr. Jerry L. Wenger, vice chair Bird in Hand, Pa. Dr. Craig E. Sider, chair-elect Philadelphia, Pa. Mrs. Heidi G. Bingaman, secretary Kreamer, Pa. Mr. Anthony Schiano, treasurer Duck, N.C. Mrs. Barbara Avery Safety Harbor, Fla. Hon. Sherrie Bailey Towson, Md. Mr. Larry Bashore Mechanicsburg, Pa.

Mrs. Wendy L. Cole Winfield, Pa.

Mr. James A. Martin Chambersburg, Pa.

Ms. Linda D. Eremita Pittsburgh, Pa.

Mr. David Millary Dillsburg, Pa.

Mr. Richard L. Godshall Mr. Kenneth V. Moreland Souderton, Pa. West Friendship, Md. Mr. Anthony H. Hahn Dr. Barbara G. Moses East Earl, Pa. Charlotte, N.C. Mr. Scott Heintzelman Mr. Rodney L. Musser Mechanicsburg, Pa. Doylestown, Pa. Dr. Joachim J. Huerter Mr. Edward Nevin Annville, Pa. Finksburg, Md. Mr. Richard E. Jordan II Mrs. Linda R. Pheasant Mechanicsburg, Pa. Wormleysburg, Pa. Mr. J. Gary Langmuir Dr. Alan Robinson Manheim, Pa. Dillsburg, Pa. Mr. Garret Larsen Mr. Andrew Samuel Spring, Texas Dillsburg, Pa. Dr. Emerson L. Lesher Mechanicsburg, Pa.

SCHOLARSHIPS

• David & Melva Brandt Endowed Scholarship Fund • Clifford A. & Mildred A. Broberg STEM Scholarship Endowment • David Greiner Family Scholarship • Jarvis Hartfiel Memorial International Business Scholarship Endowment • Murk-Hayes Urban Teaching Scholarship Endowment Fund

• Myers-Steinbrecher Scholarship Endowment • H. Royce ‘48 & Phyllis (Engle) ’51 Saltzman Scholarship Endowment for Choral Music • School of Humanities Undergraduate Research Endowment • Serving the Servants Scholarship • Dr. Layton Shoemaker AROMA Fund • Stewardship Advisors Award • Joy Weaver Accounting Scholarship • Dr. Robert K. Worman Endowed Scholarship

Mr. John C. Wagner Jr. Raleigh, N.C. EM ERIT U S T RU ST EES

Mr. Calvin G. High Willow Street, Pa. Mr. Galen M. Oakes Sr. Massillon, Ohio Mr. Charlie Byers Jr. Fort Myers, Fla. Mrs. Rim Hinckley, head of school from New York City, finished her final term of service at the May 2020 board meeting.

45 40 35 30 25 20 15 10 5 2005

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Dr. Kimberly C. Thornbury Vancouver, Wash.

GROWTH OF FINANCIAL AID GRANTS AT MESSIAH

in thousands

THE FOLLOWING SCHOLARSHIPS, ESTABLISHED DURING THE 2019-20 ACADEMIC YEAR, ARE AN INVESTMENT IN THE LIVES OF STUDENTS THAT WILL YIELD FRUITFUL AND LASTING RETURNS.

Mrs. Eunice F. Steinbrecher Lancaster, Pa.

2008

2011

2014

2017

2020

ALLOCATION OF GIFTS

COURTESY OF GLEN AND KIM SISSON

46.4% Building projects 15.2% Endowments 14.3% Restricted gifts and grants 7.9% Messiah Fund 7.0% Designated budget 6.1% Government grants 2.0% Deferred gifts 0.9% Unrestricted bequests 0.1% Budgeted restricted

From left: The Sisson family includes Luke ’12, Megan ’11, Glen, Kim, Jillian ’15 and Caleb ’18.

DONOR PROFILE

Glen and Kim Sisson In 2007, Glen and Kim Sisson considered Christian colleges within eight hours of their Connecticut home for their oldest daughter,

Megan. Messiah was at the top of their list for academics, athletics, professor/student relationships and community. Campus visits and overnight stays cemented the Messiah choice.

According to Kim Sisson, it then “worked out beautifully” to send all four children to Messiah. Megan Sisson ’11 has moved fluidly between ministry and corporate life with her Christian business administration degree, and siblings Luke ’12, Jillian ’15 and Caleb ’18 have excellent jobs in engineering and nursing.

“They made lifelong friends and also established relationships with many of the faculty and coaches,” said their mom. “As a whole, their professors set challenging standards for success and were incredibly caring and available. All of them enjoyed and took full advantage of the beautiful campus; the varsity, club and intramural sports; and the varied student activities and clubs. The rich Messiah experience helped

them to further develop their Christian faith, leadership and passion for service in both the secular and Christian settings.”

Jillian Sisson is now a double Messiah grad, recently earning her MSN from the University.

“Our world needs thriving, financially strong, Christian-based, academically excellent colleges/universities,” said Kim Sisson. “We are blessed to continue to support President Kim Phipps and Messiah University in their mission to cultivate in men and women, like our own children, strong intellect, character and Christian faith.

Megan, Luke, Jillian and Caleb were blessed to have the Messiah experience, and we will be forever grateful.”

And we are deeply grateful for the Sisson family. In addition to sending their own four children, four families from their home church in Connecticut chose to attend Messiah based on the Sisson family endorsement!

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