NOLS State of the School 2019

2019

STATE OF THE SCHOOL REPORT

NOLS emboldens us to step forward.

Daniel Lay

TABLE OF CONTENTS ENGAGEMENT NOLS and C5 Youth Association Reach Milestone.......6 Endowed Chair Honors Gans’ Decades of Environmental Advocacy............. 8 Advisory Council Lends Talent and Experience to NOLS.................10 GIVING The NOLS Fund.................................12 The NOLS Endowment................... 15 Planned Giving..................................16 HIGHLIGHTS Risk Management.............................18 Financial............................................. 20

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MESSAGE FROM THE BOARD OF TRUSTEES

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“Let’s embrace the traditions that made us successful in the past while remaining open to new ways of doing things.”

— Marc Randolph

4 | State of the School Report 2019

never tire of it. In each of the four years I’ve chaired the NOLS Board of Trustees, I’ve had the good fortune to report that the school has had another successful year, surpassing records we exceeded the previous year in the number of students we’ve educated, the growth of our endowment, and the charitable donations we’ve received.

Fiscal Year 2019 was no different.

What’s remarkable, though, is that this recordbreaking year occurred while historical changes were happening at NOLS. In November 2018, President John Gans announced his retirement, effective December 2019. John has served as president since 1995, an extraordinary 24-year tenure in which he oversaw an exponential growth in our enrollment; added Wilderness Medicine, Custom Education, and Risk Services to our course offerings; and launched our endowment and planned giving program.

Following John’s announcement, the school launched an exhaustive presidential search, involving a national search firm as well as NOLS Trustees, staff, instructors, and friends of the school, and brought forward hundreds of candidates.

In the end, we found our new president amongst our own ranks: Terri Watson has served NOLS as director of NOLS Southwest, as a Wilderness Medicine and Expeditions instructor, and as a member of our Advisory Council. She was most recently the executive director of LightHawk, a national conservation nonprofit. Terri’s deep experience in nonprofit management, education, and conservation with international reach has uniquely prepared her to address the complex needs of the school today. She is the sixth person—and the first woman—to

lead NOLS since its founding in 1965. Terri officially stepped into the role of president on Jan. 1.

I look forward to Terri’s leadership, just as I salute John (who taught his first NOLS course in 1981) for his almost four decades of dedication to this unique organization.

A few years ago, I proposed a New Year’s resolution for NOLS. Because it is, perhaps, more relevant in 2020 than it was then, I’d like to repeat it: let’s be flexible.

Change is here. Let’s embrace the traditions that made us successful in the past while remaining open to new ways of doing things.

With an attitude of adaptability and tolerance for uncertainty while honoring the NOLS mission, and a talented and committed staff, I am confident that Trustees years from now will be sharing the same message of success that I am.

Marc Randolph Chair of the Board of Trustees

Karolina Bassa

MESSAGE FROM THE THE PRESIDENT

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“I look forward to continuing the journey of excellence that NOLS delivers to all who participate.”

— Terri Watson

hank you for taking the time to review our State of the School Report. The fact that you’re reading this tells me you are someone who cares about the exceptional and transformative work NOLS does across so many disciplines. Supporters like you are the reason we exist, and are the enablers of our mission around the world. Saying we could not serve our mission without you is an understatement. Thank you!

Our 2019 fiscal year reflects another year of challenges and successes. This report seeks to relay what we’ve accomplished in our educational mission, as well as capture the financial performance and sustainability of the school. In 2020, we will celebrate 55 years of wilderness skills and leadership education, and our goal is to run our school to ensure that we’re around for many years to come.

First and foremost, we celebrate another year of excellent student outcomes and a solid safety record.

We saw another year of solid growth in our Wilderness Medicine offerings, and we held relatively stable on the number of students enrolled on field courses in our Expedition and Custom Education pillars. A record 29,067 new students now call themselves NOLS graduates.

Ever innovating, we introduced a new Risk Management course with longtime partner REI to help individuals and organizations benefit from the lessons learned and best practices gleaned from almost 55 years of experience. In 2020, we will initiate a new Global Health Responder course pioneered by our Wilderness Medicine arm in concert with FEMA to prepare our graduates to be both prepared and qualified to assist in relief efforts in more comprehensive ways.

We continue to address challenges in getting the word out to new audiences about all NOLS has to offer, and have seen declining enrollment in our semester

programs continue. I’d love to ask each of you to consider someone in your circle who would be an excellent NOLS student. Take a moment to share this report with them, steer them to our website, or have them contact us.

On the financial front, we closed out our 24th year in a row with net-asset gains—and share a thanks to outgoing president John Gans for his long-tenured stewardship of the school. We managed to spend less than we earned, and ended the year exceeding our bottomline budget. This was due in no small part to exceptional expense management and operational adjustment by our program staff, amazing flexibility among our faculty, and very tight attention by our support staff. I cannot express my admiration or appreciation strongly enough to the amazing humans that power the NOLS engine. They are fueled by passion, and propel our mission forward through obstacles and detours with unparalleled skill.

In closing, 2019 has been a year of big changes in the leadership of the school, with retirements and executive transitions bringing new boots to the front of the line to break trail. We look forward to 2020 with excitement, anticipation, and the knowledge that we, like our students, are forever learning and innovating to handle the challenges, adventures, and opportunities our school’s expedition delivers. As NOLS’ newest president, I look forward to continuing the journey of excellence that NOLS delivers to all who participate.

And, I look forward to sharing that journey with you, the people that let NOLS be the leader in our field.

Terri Watson President

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ENGAGEMENT

NOLS AND C5 YOUTH ASSOCIATION REACH MILESTONE

by Kaylan Scott Development Stewardship Coordinator

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n summer 2019, NOLS and the C5 Youth Association celebrated the fifth year of partnership and the one thousandth NOLS/C5 Leadership Expedition graduate.

NOLS C5 Bridges Leadership Expeditions are unique experiences where C5 leaders experience the wilderness as intact groups, and curriculum is tailored to serve the mission of the C5 Youth Programs.

The C5 Youth Association offers a five-year leadership program that supports students through high school, into college, and beyond. The five Cs encourage students to be character-driven, community-focused, challenge-ready, college-bound, and committed to a better future. For NOLS, this relationship diversifies the student body and the alumni network, attracts new personnel to NOLS, and prompts a reimagining of the NOLS

Kirk Rasmussen

pedagogical model while staying true to the mission. It also presents new opportunities for staff, instructors, and students to learn from each other.

Lisa Bower

The five Cs encourage students to be characterdriven, communityfocused, challengeready, college-bound, and committed to a better future.

Each year of the program focuses on a key area: Year 1, Leading Myself; Year 2, Leading Others; Year 3, Expanding My Horizons; Year 4, Exploring My Future; and Year 5, Engaging My Community. The NOLS C5 Bridges Leadership Expedition is a seven-day backpacking course strategically positioned at the beginning of Year 3, the summer between students’ sophomore and junior years of high school. NOLS C5 Leadership Expeditions operate out of NOLS’ Pacific Northwest, Rocky Mountain, Teton Valley, and Northeast locations.

During these trips, students and instructors summit peaks and ford rivers, hike on ancient trails and bushwhack up drainages, become backcountry chefs, build incredibly close relationships, and overcome challenges as individuals and as teams. But most importantly, these expeditions emphasize lessons that will support leaders on their post-secondary journey. Students move through

Left: A C5 Youth Association group poses at NOLS Northeast. Kirk Rasmusssen

a condensed leadership progression that enables every student to not only learn about the NOLS 4-7-1 model, but be a designated leader for a day. Whether designated leader or active follower, students learn how to give and receive feedback, resolve conflicts, make decisions, and empower their peers. Joseph Collins, Executive Director of C5 Los Angeles, had the opportunity to accompany a group of C5 students on a NOLS course last year. Afterward, he reflected, “I couldn’t be more proud or confident in this partnership and I look forward to continuing to deepen our work together. I get it. I believe in it. I can’t wait to get on the mountain again and shout all about it!”

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ENGAGEMENT

ENDOWED CHAIR HONORS GANS’ DECADES OF ENVIRONMENTAL ADVOCACY

by Anne McGowan Development Communications Coordinator

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n recognition of his dedication and commitment to our mission, the NOLS Board of Trustees in 2019 created an endowed chair to honor our longest tenured president, John Gans. John took his first NOLS course—a Semester in Africa—in 1979, became an instructor a year later, and has worked for the school in a variety of positions since.

Named president in 1995, John guided NOLS for 24 years.

“Today, protecting our outdoor classrooms is the top priority of the Environmental Stewardship and Sustainability department at NOLS.” The endowed chair in John’s name will permanently fund the staff position leading efforts to protect NOLS’ expedition classrooms. John identified the need for this role when he was operations director in the early ’90s and hired our first public policy director. Since then, he had been among our strongest advocates for outdoor classrooms and the environment.

Our wild classrooms are foundational to every NOLS experience, providing powerful learning opportunities for our students. Developing relationships with these special places instills an environmental ethic in our graduates and builds a lifelong tradition of awareness and stewardship. Protecting these places is core to our

Left: Board Vice Chair, Greg Avis and John Gans. Brad Christensen

mission and values as an educational institution.

Today, protecting our outdoor classrooms is the top priority of the Environmental Stewardship and Sustainability department at NOLS. The department combines advocacy work, education, research, and curriculum development to protect core business operations at NOLS. We use these tools to inspire our students to apply their values and act as they move into their own positions of leadership and influence. This serves not only the remote NOLS classrooms, but the many faces of wilderness that NOLS prepares all students to experience.

“When I was hired as executive director in October of 1995, I wrote up a list of goals I wanted to accomplish for NOLS during my tenure,” John said about the honor, awarded to him on Oct. 12, 2019 at the State of the School

dinner. “Recently I looked back at that list, and noted that I had achieved all of them but one. The exception was ‘to endow our first staff or faculty chair.’ I made many efforts to achieve this goal, but never got it done. How fitting that friends of NOLS should step in to get this last goal accomplished before I left.”

A quiet campaign launched late in 2019 raised $1.3 million of a $2 million goal to endow and permanently fund this position. Contributions to support the John Gans Endowed Chair continue to be accepted. To make a gift or learn more, please contact Judd Rogers at 307-3352289 or call NOLS Development at 800-332-4208.

Oscar Manguy

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ENGAGEMENT

ADVISORY COUNCIL LENDS TALENT AND EXPERIENCE TO NOLS

by Christina Greenn Development Researcher

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stablished in 1997, the NOLS Advisory Council is an important but little-known group of up to 30 alumni volunteers who serve as a sounding board for the president, providing outside perspective and insight on business models and practices. Passionate about the mission and purpose of NOLS, they provide diverse experience and are able to commit time, energy, and creative thinking to benefit the school.

Originally, the Advisory Council, also called the AC, was created to help the Development office with fundraising efforts. It offered an opportunity for alumni with a strong affinity for the school to volunteer in a more meaningful way.

“When I took the reins as executive director 25 years ago, it was clear that one of our underutilized strengths was our alumni group,” former president John Gans said.

“There was so much passion, talent, and strength in that group, and NOLS needed that if we were to rise to our potential. The Advisory Council provided an opportunity to benefit from the strengths of those dedicated alumni.”

“These are a group of people who will ask hard, bigger-picture questions and then try to find good answers.”

Today, AC members work to engage and support the school by helping to build relationships, stewarding donors, contributing professional experience, and advocating for and promoting NOLS. They regularly

Gretchen Herbert

and directly engage with NOLS leadership and faculty. Trustees Marc Randolph, for instance, served as an The director of Alumni and Development serves as Advisory Council member before his tenure on the Board. the liaison from the AC to the president, faculty, and President Terri Watson was also a Council member prior schoolwide directors. to accepting her new role at NOLS. The Advisory Council is led by two co-chairs. One is “The Advisory Council opens a window to people nominated and elected by fellow Council members for a who know us, have a passion for our mission, but live in single two-year term; the other chair is appointed by the a world not immersed in NOLS,” Terri said. “These are a Board of Trustees chairperson. Council members typi- group of people who will ask hard, bigger-picture quescally serve a three-year term, and can be invited to serve tions and then try to find good answers. I left the Advisory a second term by a selection committee comprised of the Council with a profound appreciation for the generosity co-chairs of the AC, the president, and the Development and dedication of this group of people who are willing to director of NOLS. The AC meets twice a year, once in read lengthy board reports, respond to specific requests October at NOLS headquarters in Lander, and again in for project input, and travel on their own dime to meet in the spring, at a location near a NOLS campus. person two times a year out of love for NOLS.” Some members continue their involvement with See the list of 2019 NOLS Advisory Council members NOLS after their term. Current Chair of the Board of on page 66.

Left: Photographed, a dozen of NOLS 2019 Advisory Council members. Courtesy of AC members

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GIVING | THE NOLS FUND

NOLS FUND EXCEEDS GOAL—AGAIN!

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hanks to more than 3,000 supporters like you, the NOLS Fund once again exceeded its fundraising goal, hit a record high, and provided students with lifechanging experiences.

In Fiscal Year 2019, a total of 3,014 donors stepped forward with an unprecedented $2,444,516 in gifts— surpassing our $2,215,000 goal by almost 10 percent.

That’s an average gift of about $550 in support of the NOLS mission.

Because of your generosity, the NOLS Fund has seen consistent growth, raising more than $1 million annually in all of the last 12 years, and $2 million or more in every one of the last five years. And this year’s donated amount beat last year’s all-time high.

About 92 percent of this year’s gifts were given as

12 | State of the School Report 2019

unrestricted dollars, allowing NOLS the flexibility to use them where they’re needed most. That includes supporting essential day-to-day operations, scholarships, outreach, curriculum development, and sustainability initiatives.

The NOLS Fund also saw a retention rate of more than 53 percent, and recorded 659 new donors, on par with last year’s 664. Part of the year’s success can be attributed to a significant increase in PayPal gifts, rising from 278 in FY18 to 375 in FY19. Online gifts also increased, from 1,221 to 1,595, a leap of 30 percent.

Because of you, 2019 was a very successful year.

Without your gift, NOLS would not be able to empower students to see beauty in wild places, become effective leaders, and translate lessons learned in the backcountry to their lives in the frontcountry. We appreciate it.

Molly Hagbrand

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DONOR STORY | GRACIE HAYS AND TRAVIS DRISCOLL

Couple Asks for Gifts to NOLS for Their Wedding Forget the blender or matching placemats. In lieu of their wedding registry last summer, Gracie Hays and Travis Driscoll asked friends and family to help endow a NOLS scholarship in their honor.

The newlyweds met on their 2011 Semester in Alaska. “If you had told us that we’d each meet our future spouse miles away from the nearest town,” they said, “where grizzlies grossly outnumbered humans, and where it rained so frequently that, for three months, our clothes fluctuated between mildly damp and sopping wet, you would’ve been met with a healthy dose of skepticism.”

And rightfully so—students are often preoccupied learning new skills through new hardships. Their group was no exception, from an “ad hoc lesson on how to properly anchor tents in a blizzard” to a two-week ration period without a spice kit. “I think those two weeks definitely gave us all a newfound appreciation for salt and pepper,” said Gracie.

Through such adversity, the couple learned not only about themselves, but about each other as well. One particular incident highlighted Gracie’s trust in Travis, when a spatula went missing and she confided that it had materialized in the depths of her backpack. With the loss of their sole cooking utensil, her tent mates began fashioning alarmingly sharp makeshift cookware carved out of used gas cans. Travis, in an act that can only be seen as an early proposal, took the fall for the misplacement.

“Our NOLS semester not only brought us together, it helped us each find confidence in knowing we could always learn new skills, while also fostering our love of exploration and teaching us how to thrive in adversity,” reads their wedding website. “As we set out together on our biggest adventure yet, we’re certain that our past experience with NOLS will continue to guide us through the highs and lows of marriage.”

Through their wedding scholarship, the couple hopes to pass on such a gift to future students.

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Eric Page

GIVING | THE NOLS ENDOWMENT

ENDOWMENT SECURES THE FUTURE

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OLS’ healthy endowment is the reflection of a well-run organization committed to a strong future. It’s also an indication of the effort and vision required to achieve it.

Our endowment funds are invested and generate income, allowing NOLS’ leadership education and outdoor experiences to be made available to all who seek them. Equally important, the endowment provides security for our current and future needs.

Fiscal Year 2019 was—in spite of a volatile year in investment markets—another strong one for our endowment. It grew by $3,802,428, or almost 8.5 percent. This growth is attributed to a combination of

new gifts to the endowment (including those made to the Step Forward campaign), Board designations to the endowment, and positive investment returns.

Those investments saw a return of 1.3 percent for the fiscal year, down from last year’s 10 percent.

Steady growth is a continuing trend for the endowment, growing by 55 percent since the beginning of FY 2016. The release from the endowment, consequently, continues to grow each year. In FY 2019, the release provided nearly $1,512,845 to support scholarships and programs, representing 4 percent of the endowment’s value.

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GIVING | PLANNED GIVING

BENEFITS FOR BOTH DONORS AND NOLS

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OLS’ planned giving program was established in 1999, and in the 20 years since then, more than 160 people have chosen to leave behind a personal legacy gift that aligns with their values. That’s at the core of NOLS’ Planned Giving program: to provide a way for dedicated friends of NOLS to invest in the future of the school while leaving behind a meaningful legacy. Planned gifts also can yield financial benefits to donors, often providing tax relief for themselves or their heirs.

A planned gift to NOLS is, for many donors, the largest gift they’ll ever make. We appreciate the generosity and foresight of those who make a deferred gift to the school or include NOLS in their estate plan, ensuring our continued growth and solidifying our mission.

The pairing of a sound financial decision and a legacy that reflects their values likely contributes to the steady growth of the Summit Team, the recognition society for those who have chosen to include NOLS in their estate plan. In the last five years, the NOLS Summit Team has increased by 6.5 percent, including 10 members who joined the team in Fiscal Year 2019.

Thanks to all NOLS Summit Team members, whose thoughtful planning and commitment helps assure a strong and secure future for NOLS.

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Daniel Lay

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HIGHLIGHTS | RISK MANAGEMENT

RISK MANAGEMENT 2019

isk and consequence make our education relevant and practical. Risk is inherent in the remote locations through which we travel and our approach to risk is one of respect gained through knowledge, skill, experience, and expertise. We value critical thinking, reflection on experiences, resilience in difficult times, and commitment to our students; and we continually enhance our systems of risk management as societal expectations change, wilderness travel techniques evolve, and technology improves and develops. Risk management is a core element of our curriculum.

Our risk management performance in 2019 was successful on most levels, but also challenging in other areas. Following are the year’s highlights: • There were 526 medical incidents (injuries and illnesses) reported—29 incidents more than average.

The number of injuries (228) was two less than average, but the number of illnesses (298) was 32 more than average.

• There were 181 medical evacuations—14 percent above average. The evacuation rate of 1.23 evacuations per 1,000 program days was the highest rate since 1995.

• The majority of injuries and illnesses were not serious and the rise in our evacuation rate was largely due to illnesses.

18 | State of the School Report 2019

• Our most serious injury on a field course was when a student slipped and fell, then slid for 200 meters down a snow slope (see “Risk Management in Action” pg 19).

• Our greatest challenge was in the realm of student behavior, in which incidents were up by 37 percent over average. In addition, mental health incidents were 15 more than average.

• Our emergency and evacuation systems worked smoothly and effectively at all our locations worldwide due to having good plans and trained staff who responded well to situations as they arose.

• Out of all field course students, 8 percent had a reportable injury or illness and 6 percent had a non-medical incident. Ninety-six percent of our students graduated.

NOLS Medical Incident and Evacuation Rates Rate/1,000 Program Days

R

4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0

3.59 2.77

2.94

2.68

Medical Incidents

1.12

0.97

0.92

34 Year Avg. 1985-2018

10 Year Avg. 2009-2018

5 Year Avg. 2014-2018

1.23

2019

Medical Evacuations

Reece Robinson

RISK MANAGEMENT IN ACTION On a calm, clear, sunny day in the North Cascade mountains of Washington, a student slipped while descending a snow slope and slid for 200 meters on snow. She was unable to stop herself from sliding and went over some rocks protruding from the snow. She came to a stop where the snow met dry ground, but she was unconscious. The instructors got to her within minutes, performed a patient assessment, stabilized her for suspected head/spine injuries, and called NOLS to initiate an evacuation. The National Park Service responded with a helicopter and two rescue rangers, one of whom is a NOLS Wilderness Medicine instructor. The course instructors assisted the rangers in preparing the student for evacuation and she was extracted from the incident scene, transferred to

another helicopter, and flown to a hospital in Seattle, where a NOLS staff person was waiting to provide whatever support they could. The student’s father arrived from out of state that night.

NOLS conducted an in-depth internal review of the incident in order to fully understand the contributing factors related to what happened. Reviews are standard procedure and reflect on our strong organizational risk management culture, where we can evaluate incidents in an open, objective, and analytical manner with all involved in order to learn from them.

The student recovered from her injuries and is making plans to return to NOLS in 2020 because she “wants to be a NOLS graduate.” nols.edu | 19 nols.edu | 19

Oscar Manguy

HIGHLIGHTS | FINANCIAL

STRONG FINANCIAL FOUNDATION 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 Total assets Liabilities and net assets

28,385,000 $ 109,361,000

2019

2018

Accounts payable

$4,626,000

$5,638,000

Student deposits

6,304,000

6,619,000

Total liabilities Net assets Total liabilities and net assets

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28,062,000 $110,288,000

10,930,000

12,257000

99,358,000

97,104,000

$110,288,000

$109,361,000

N

A

s 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.

NOLS Endowment

$50,000,000

$48,390,000

$45,000,000

$44,725,000

$40,000,000

$39,564,000

$35,000,000

$34,484,000

$30,000,000 $25,000,000 $20,000,000 $15,000,000

$30,641,000

$31,159,000

2014

2015

$24,288,000 $18,770,000

$10,000,000 2012

2013

2016

2017

2018

2019

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Jorge Moreno

HIGHLIGHTS | FINANCIAL STATEMENT OF ACTIVITIES

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ur 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.

Expenses

Revenue 76% Program

21% Administration 3% Fundraising

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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

$30,661,000

-

$30,661,000

$32,150,000

1,682,000

-

1,682,000

1,733,000

$32,343,000

-

$32,343,000

$33,883,000

Program revenues Tuition and fees Other program revenues Total program revenue 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)

-

-

Program

614,000

(614,000)

-

-

Buildings and Equipment

11,000

(11,000)

-

-

$3,476,000

$1,196,000

$4,672,000

$5,741,000

Net assets released from restriction for

Total fundraising revenue Investment and other revenue Interest and investment income Net realized and unrealized gains on investments

814,000

917,000

1,731,000

994,000

(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

$36,376,000

$3,160,000

$38,008,000

$44,965,000

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

$35,754,000

-

$35,754,000

$36,915,000

$622,000

$1,632,000

$2,254,000

$8,050,000

Total revenue and other support Expenses

Total expenses Change in net assets

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HIGHLIGHTS | SEVEN-YEAR FINANCIAL HIGHLIGHTS

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he 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.

Kirk Rasmussen

24 | State of the School Report 2019

NOLS Seven-Year Financial Highlights Total Assets

2019

2018

2017

2016

2015

2014

2013

$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

$38,008,000

$44,965,000

$43,537,000

$40,308,000

$34,657,000

$40,682,000

$39,517,000

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

Total revenues Expenses

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

nols.edu | 25

DONOR STORY | ROBERT CLARK

Multi-Course Grad Donates to Support NOLS’ Future

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.”

Nicholas Byrne

nols.edu | 29

Oscar Manguy

32 | State of the School Report 2019

Oscar Manguy

DONOR STORY | NATE AND KACY HINTZE

Former Instructors Give to Provide Opportunities

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!”

36 | State of the School Report 2019

DONOR STORY | KYLE BARNETT

Grad’s Family Fund Supports Women and Girls 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!”

42 | State of the School Report 2019

Audrey Kruse

Matt Hage

48 | State of the School Report 2019

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.”

Nicholas Valentine

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Matt Hage

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Molly Hagbrand

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