Financial

NOLS Balance Sheet Aug. 31, 2019 and 2018

Assets 2019 2018 Cash $9,337,000 $11,253,000 Investments 16,886,000 18,937,000 Endowment investments 48,390,000 44,725,000 Receivables 1,037,000 694,000 Pledges receivable 2,989,000 2,729,000 Prepaid expenses 1,171,000 418,000 Merchandise 1,228,000 1,045,000 Other 1,188,000 1,175,000 Property, plant, and equipment net 28,062,000 28,385,000 Total assets $110,288,000 $ 109,361,000 Liabilities and net assets 2019 2018 Accounts payable $4,626,000 $5,638,000 Student deposits 6,304,000 6,619,000 Total liabilities 10,930,000 12,257000 Net assets 99,358,000 97,104,000 Total liabilities and net assets $110,288,000 $109,361,000

As we come to the end of another fiscal year, it is with great pride that we are able to once again share that the financial position of NOLS has never been stronger. Through the hard work of staff and the guidance of our supporters, we have been able to operate in a very fiscally responsible manner at all levels, which is clearly reflected in our balance sheet. We know that the greatest strength of NOLS is our mission, but also that a strong financial foundation is needed to carry that mission into the future. Through a combination of a growing endowment, identified reserves, and lack of long-term debt, we believe we have built that foundation. Our endowment is an increasing piece of our financial foundation, providing support for our scholarships and mission. Over the last 10 fiscal years, the value of the endowment portfolio has more than quadrupled, growing to $48,390,000. We are certainly grateful for the support from our friends in building this piece of our financial foundation. The trust placed in us by the supporters of our endowment is humbling and the prudent management of this important resource continues to be an important goal for us as it is key to our mission.

The financial resources generated over the past years from operations and by support from our donors are an important responsibility and opportunity for NOLS. A core organizational goal identified in our current strategic plan is to maintain our disciplined financial stewardship. One of the ways in which we have achieved this is to create and fund cash reserves. These reserves have been created not only to sustain us in difficult circumstances but also to maintain our facilities and to allow us to pursue opportunities to expand our reach and mission. We will continue to invest and use our financial reserves to support our students and mission while protecting the integrity of our financial resources.

$18,770,000

$30,641,000 $31,159,000 $34,484,000 $39,564,000 $48,390,000

$44,725,000

$24,288,000

2012 2013 2014 2015 2016 2017 2018 2019

Our Statement of Activities is reflective of a challenging operating year. In Fiscal Year 2019, we saw a decrease in our total program revenue of $1,540,000 compared to the prior year. This was due to lower enrollment in both our Expedition and Custom Education programs. The continued enrollment decline in our Expedition programs remains a significant challenge for us as we look to the future. Our other major program area, Wilderness Medicine, saw continued growth in FY 2019 with revenue from these programs reaching a new high of more than $7,400,000.

A positive in the operating statement is the manner in which staff responded to this decrease in revenue. Thanks in large part to excellent expense management we met our budgeted change in net assets from operations. Staff throughout the school continue to be our most valuable resource in dealing with challenging times. Being able to achieve our overall budget target in a year of operating challenges is a significant accomplishment.

Another highlight of the fiscal year was the strong support we received from our many donors. In FY 2019, our total philanthropic revenue was $4,672,000. This support is a major part of our financial story and reached 12 percent of our total revenue in the year.

The up-and-down investment markets were another challenge for us in the fiscal year. We finished the year with a gain, but a much smaller one than we saw in the previous year. For the fiscal year, our total investment gain was $942,000 compared to a gain of $5,281,000 in the previous year. This is certainly a disappointing investment return for us but in line with the returns of the overall markets over this same period.

76% Program

21% Administration

3% Fundraising

81% Tuition and Fees 4% Other Program Revenue 3% Investment Earnings

12% Philanthropic

NOLS Statement of Activities For the fiscal years ending Aug. 31, 2019 and 2018

Revenues and Other Support Without Donor Restrictions With Donor Restrictions Total 2019 Total 2018 Program revenues Tuition and fees $30,661,000 - $30,661,000 $32,150,000 Other program revenues 1,682,000 - 1,682,000 1,733,000 Total program revenue $32,343,000 - $32,343,000 $33,883,000 Fundraising activities

Contributions and grants 1,799,000 2,873,000 4,672,000 5,741,000 Released from endowment 1,052,000 (1,052,000) - - Net assets released from restriction for Program 614,000 (614,000) - - Buildings and Equipment 11,000 (11,000) - - Total fundraising revenue $3,476,000 $1,196,000 $4,672,000 $5,741,000 Investment and other revenue Interest and investment income 814,000 917,000 1,731,000 994,000 Net realized and unrealized gains on investments (308,000) (481,000) (789,000) 4,287,000 Gain (loss) on sale of equipment 51,000 - 51,000 60,000 Total investment and other revenue $557,000 $436,000 $993,000 $5,341,000 Total revenue and other support $36,376,000 $3,160,000 $38,008,000 $44,965,000 Expenses Program 27,330,000 - 27,330,000 28,133,000 Administration 7,432,000 - 7,432,000 7,819,000 Fundraising 992,000 - 992,000 963,000 Total expenses $35,754,000 - $35,754,000 $36,915,000 Change in net assets $622,000 $1,632,000 $2,254,000 $8,050,000

The last seven years has been a time of continued growth in both the educational impact and financial position of NOLS. Each new fiscal year presents us with a new set of operational and financial opportunities and challenges. Though the numbers on paper can look similar from year to year, the story behind them continues to evolve. We are proud of how staff in all areas of NOLS respond to these challenges and opportunities and continues to move us forward.

Our net assets have increased in each of the last seven years and for a total increase of nearly 70 percent over this time. Growing our net assets is not a part of our mission but it is a key part of our financial foundation. These continued positive results are indicative of the commitment of NOLS staff and supporters to ensure the NOLS mission thrives today and into the future.

While each of the last seven years is a collection of unique stories, NOLS has consistently seen strong operating results and support from our friends. Contributions to our mission have continued to grow through gifts to the Step Forward campaign, the NOLS Fund, our endowment, Campaign NOLS, and the Wyss Wilderness Medicine Campus. Gifts to these campaigns over the past seven years have reached nearly $30 million. Thanks to the support and efforts of many, we continue to build on the successes of our past and look to our future with a strong financial position.

We recognize the importance of being excellent stewards of our financial resources. Our positive financial results and strong balance sheet are due to the support and efforts of many, and will help us to carry our mission into the future.

2019 2018 2017 2016 2015 2014 2013 Total Assets $110,288,000 $109,361,000 $100,573,000 $93,870,000 $88,587,000 $87,532,000 $79,100,000 Total Liabilities 10,930,000 12,257,000 11,519,000 12,742,000 12,443,000 11,916,000 11,674,000 Net Assets $99,358,000 $97,104,000 $89,054,000 $81,128,000 $76,144,000 $75,616,000 $67,426,000 Revenue

Program $32,343,000 $33,883,000 $33,239,000 $34,182,000 $32,998,000 $32,182,000 $30,724,000 Contributions 4,672,000 5,741,000 4,444,000 2,708,000 3,103,000 3,234,000 5,998,000 Investment 942,000 5,281,000 5,815,000 3,402,000 (1,497,000) 5,199,000 2,794,000 Other 51,000 60,000 39,000 16,000 53,000 67,000 1,000 Total revenues $38,008,000 $44,965,000 $43,537,000 $40,308,000 $34,657,000 $40,682,000 $39,517,000 Expenses

Program 27,330,000 28,133,000 28,056,000 27,764,000 26,516,000 25,231,000 25,464,000 Fundraising 7,432,000 963,000 964,000 890,000 858,000 864,000 909,000 Administration and Interest 992,000 7,819,000 6,591,000 6,670,000 6,755,000 6,397,000 5,011,000 Total expenses $35,754,000 $36,915,000 $35,611,000 $35,324,000 $34,129,000 $32,492,000 $31,384,000 Change in net assets $2,254,000 $8,050,000 $7,926,000 $4,984,000 $528,000 $8,190,000 $8,133,000 Number of Students NOLS field courses 4,928 4,990 4,833 5,141 4,698 4,320 4,210 NOLS classroom courses 24,139 22,487 21,711 20,771 19,010 16,763 15,853 Total students 29,067 27,477 26,544 25,912 23,708 21,083 20,063 Number of student days 224,158 227,235 227,853 231,912 224,256 217,559 208,787 Scholarship recipients 926 979 900 1,030 883 603 624 Scholarships awarded $1,816,000 $1,921,000 $1,722,000 $1,930,000 $1,761,000 $1,527,000 $1,543,000

Robert Clark learned about NOLS sometime in the 1960s, not long after the school’s founding. He was immediately interested, but didn’t have the opportunity to take a course until 1999, when he was 50 years old. “It was in the middle of my career, when I was working as a government attorney and had more free time,” Bob recalled. “I took a Wind River Wilderness course for persons 25 and over and enjoyed it so much I returned the following year for the alumni Gannett Peak expedition, and two years after that for alumni rock climbing in Arizona.”

NOLS taught him to assess the skill level of everyone he’s traveling with, Bob said, and to ensure they’re staying within the comfort zone of the group. “My courses taught me to stay alert to risky situations we may be heading into, especially weather risks. And I learned the importance of practicing effective followership when someone else is leading, contributing support rather than disagreement.”

Bob’s NOLS expeditions also helped him adapt to physical discomfort, knowing he had to get to camp, set up, prepare dinner, rest, and move to the next camp—whatever the circumstances. “You can’t choose the conditions,” Bob said, “but you can learn to accept the conditions, even embrace them, while doing what needs to get done.” Bob believes that by stripping away the unimportant and reducing life to the essentials of food, shelter, and rest, you can appreciate them all the more, while taking satisfaction in your ability to provide for yourself and the group.

NOLS is unmatched in what it does, Bob said. That’s why he’s chosen to make annual contributions to NOLS as well as leave a planned gift to the school. “I want to support NOLS’ ability to carry out its mission long into the future,” explained Bob, the newest member of the Summit Team, a group of donors who have named NOLS in their will. “I want to help it to have the means to do so.”

Nate and Kacy Hintze are former NOLS instructors—with 34 courses between them—and former in-town staff. They are also parents to two young children and full-time employees of Bowdoin College in Maine. For this busy duo, the NOLS lesson of tolerance for adversity and uncertainty is one they use daily.

“Raising a family has been anything but predictable,” Kacy said. “We rely on the ability to tolerate adversity and uncertainty every day.” She learned lessons from challenges on her first course, a Fall Semester in the Rockies, weathering big storms at high altitude and making unexpected route changes based on the health and wellness of the group.

Nate credits NOLS with teaching him self-awareness. “I learned how I react in stressful situations,” he said. “One aspect of NOLS courses that doesn’t get talked about enough is that you learn to get along with people you’ve never met before. Spending 24/7 working together, eating, sleeping in close proximity and getting along transfers so well into the work environment. I learned I can find a way to get along with anyone.”

Kacy agreed, saying of all the work NOLS does, teaching self-awareness and communication skills are the most important.

Nate and Kacy, who married in 2007, have been monthly donors to NOLS— separately and together—since 2003.

When asked why they’ve donated to the NOLS Fund every month for the last 16 years, Nate explained that NOLS changed his life.

“After my semester, I decided to work for NOLS to make sure I could help others have the opportunity I did,” he said. “I give back to make sure NOLS can continue to provide these opportunities.”

Kacy donates to NOLS to give back too. “I benefited greatly from my student course and from all of the courses I was lucky enough to lead,” she said. “And— bonus—I met my husband and some of my best friends through NOLS!”

To this day, Kyle Barnett drinks his morning coffee out of a 400 mL Nalgene. However, if you were to ask him what the most significant takeaway was from his Denali mountaineering alumni course, he would say it was learning the value of expedition behavior. “Expedition Behavior put words to the idea of how I want to show up in the world,” said Kyle. “Expedition Behavior is all about taking initiative, balancing group and personal goals, showing respect, and including others. On Denali, I experienced how little control I have over what goes on around me. People, wild animals, extreme weather, and avalanches are totally out of my control. I learned that all I can control is my own work ethic and my attitude. These are important lessons that I credit to my time with NOLS and have served me well as a teammate, a business professional, a husband, and a father.” Kyle, along with his brother, wife, and mother, Kathleen Flynn-Barnett, established the Ora Kathleen Flynn-Barnett Family Foundation (OKFBFF) to support women and girls. The OKFBFF believes that women and girls can achieve personal growth and development through experiences that encourage increasing selfunderstanding, facing challenges, and being open to new ideas. With mission statements that are so closely aligned, the foundation has partnered with NOLS to create an endowed scholarship that serves girls and women.

As a father of three daughters, the mission of the OKFBFF has become increasingly important to Kyle in very personal ways. “Life is a complicated mix of good and bad, which girls will have to face every day. It’s not easy and it’s not simple,” said Kyle. “Getting outdoors with NOLS is the best place to learn and grow. I wish more girls could have these amazing experiences.”

Kyle’s 14-year-old daughter, Ruby, completed her first NOLS course last summer before her freshman year of high school. When she returned, and Kyle asked her what she liked most about the course, she paused to consider her response. Then her smile lit up the room, and she exclaimed, “Everything!”

DONOR STORY | SKANDER SPIES NOLS Helped Grad Grow

Skander Spies came to his 2007 NOLS Semester in Alaska with a number of learning objectives, but not a lot of self-confidence. Despite having more outdoor experience than some of his fellow students, Skander saw them as stronger, more confident, or more relaxed than he was. “I desperately wanted to be seen as mastering the technical skills and leadership opportunities, and was insecure about my performance. I started out putting myself first, asking a ton of specific questions, and trying to get ahead in every activity or situation,” he remembered.

When that didn’t work, Skander instead embraced the experience and put his coursemates first. “It made me into the leader and expert I hoped to be, and was one of the most powerful shifts in thought and identity I have ever experienced.”

His NOLS course also cemented his belief that the Earth is a complex, beautiful place that demands respect and stewardship. “Climate change is real,” he said, “and an existential threat to humanity.” A mechanical engineer who designs heating, ventilation, and air conditioning systems, Skander pursued the field because it presents an opportunity to reduce energy in buildings, one of the biggest drivers of global climate change. He believes NOLS courses “are a genesis of motivation and inspiration for making changes that will ultimately steer us through this most pressing challenge.”

Skander supports NOLS with a monthly gift and has done so for more than a decade. “Giving monthly is easy to budget around and ensures that I actually do donate something. I like giving a little bit every month and seeing it add up,” Skander said. “Knowing how fundamental NOLS was to developing skills for both adventure sports and helping me grow as a person, it’s simply natural and obvious to continue to support the school.”

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Front Cover Photo: BJ Klophaus Back Cover Photo: Prasad Gadgil