Southern Illinois University - Annual Report

Envision 2005 Annual Report

Southern Illinois University Foundation

Envision

Finding a cure Supporting an educator Sustaining a student Building a future Creating beauty

In November 2005, the Southern Illinois University Foundation launched its first-ever comprehensive campaign with a goal of raising at least $100 million to further the people, places and programs that are the essence of Southern Illinois University Carbondale.

Our faculty, students, staff, alumni, friends and family see our University’s future clearly. They know that gifts made to Southern today will provide new opportunities to each generation that will follow.

The Opportunity Through Excellence Campaign supports the vision we created in Southern at 150: Building Excellence Through Commitment. It will let us continue to provide excellence through teaching, research and service.

The following pages of this annual report provide examples of how private gifts continue to make a difference at Southern. We hope you will share our excitement, and invite you to envision our University as it continues to reach out to new generations of Salukis.

Michael C. Carr

Walter V. Wendler

Rickey N. McCurry

Southern Illinois University Foundation

Southern Illinois University Carbondale

Southern Illinois University Foundation

President

Chancellor

Chief Executive Officer

Without a vision, we cannot achieve.

Envision finding a cure.

John Simmons has fought for the rights of cancer victims as an attorney. Last year, Simmons, his wife, Jayne, and his law firm helped Southern take a major step toward the day when such legal services might not be needed.

The $10.2 million pledged by the Simmons family and law firm SimmonsCooper LLC will fund the SIU School of Medicine’s SimmonsCooper Cancer Institute. It is the largest single gift to the University in its nearly 150-year history.

Envisioned as one of the leading cancer research programs in the world, the SimmonsCooper Cancer Institute will employ 100 research and support staff at the School of Medicine in Springfield. They will use the latest technology as they search for a cure.

Simmons’ law firm is a leader in representing cancer victims, particularly people afflicted with those forms of the disease connected to asbestos exposure. The gift is aimed at finding a medical solution for the 3,000 people diagnosed annually with such diseases, as well as other cancer-related illnesses.

A portion of the pledged donation will endow a chair at the institute specifically focused on all respiratory forms of cancer. Southern Illinois University Carbondale, through the SIU School of Medicine and the SIU School of Law, is one of just 20 universities in the country offering a joint J.D. and M.D. degree. This arrangement puts the SimmonsCooper Cancer Institute at the center of valuable conversations between physicians and lawyers as they share information on treatments.

Simmons, through both his generosity and continued work on the University’s Board of Trustees, is helping researchers envision a cure for the disease.

Envision supporting an educator.

Caterpillar Inc. The company’s name is synonymous with power and strength harnessed for construction and mining operations around the world. Watching one of its earth-shaking, two-story mining trucks rumble along, one might not think about the vision, planning and financing on the front end of bringing such a monster to life.

Lynn McPheeters, who retired from Caterpillar in 2005 as vice president and chief financial officer, knows a thing or two about laying the foundation for future success.

After a 40-year career with Caterpillar, the Southern Illinois University Carbondale alumnus and his wife, Susan, recently helped ensure his alma mater’s business program will have a solid footing.

Through the SIU Foundation, the couple donated $585,500 in appreciated Caterpillar stock to the College of Business and Administration, where Lynn McPheeters earned his degree in accounting in 1964. After 10 years, the funds will be available to support the college’s first endowed chair.

The family has a long record of service and generosity with the college.

This latest gift, however, is specifically targeted for the dean’s position, which will enable the University to bring top talent to this critical post.

The business leaders of tomorrow will reap the benefits of the McPheeters’ vision and generosity for decades to come by learning from the best, most successful professionals in the field. That means they’ll be ready to do some earth shaking of their own.

Envision sustaining a student.

For 37 years, the woman faithfully reported to work at Southern Illinois University Carbondale. To her, the automotive technology program was a place where the people were more like family than co-workers.

When she decided to retire at the age of 86, she had only one question for her family at Southern: “How can I continue to help the program and its students?”

“It is a very close department,” said Jack Greer, the program’s chairperson. “She knew a lot of the students, and she mothered a lot of them, too.

“Her work was her life.”

In the end, she decided to donate $25,000 to establish an endowed scholarship. The interest from the endowment will be used annually to help defer an automotive technology student’s costs.

Her one wish was to remain anonymous in making this contribution. The scholarship’s background information states simply that the woman, through her donation, wished to “demonstrate her continued and enthusiastic support of the program,” which is part of the College of Applied Sciences and Arts.

Students and their parents know earning a degree often comes down to whether a student has money for that month’s expenses. Her donation currently provides about $750 a year for a student.

This career civil servant had the vision to see the need, and the heart to do something about it.

Envision building a future.

Saluki Way, left, includes plans for new athletics facilities, in red, academic buildings, in orange, and parking garages, in blue.

Saluki Way.

A university is many things, much of which is intangible. Its physical manifestation – its footprint and form, its bricks and mortar – give those more ethereal elements a place to reside and thrive. A university’s facilities are the sturdy vine from which the fruit of higher education can gain shelter and flourish.

With Saluki Way, Southern Illinois University Carbondale soon will embark on its most ambitious building project in decades, securing the University’s sense of place and permanency both regionally and nationally while vastly improving the student life and learning experience.

Saluki Way is a master plan that will create a new campus core stretching from Altgeld Hall on the north to a refurbished SIU Arena at its southern tip. It will include new academic, student support and athletics facilities. Envisioned as a private-public venture, Saluki Way will help attract top students, educators and staff by creating top facilities that demonstrate the University’s commitment to high-quality education.

The building program will forever change the face of the University, brightening its “front door.” The plan includes a new football stadium and contemporary classroom buildings.

Tradition, talent, experience and commitment to excellence all are part of what makes a university work. Saluki Way will give those concepts a place to abide at Southern.

11

Envision creating beauty.

13

Artists and designers know good work pays off exponentially, both in the satisfaction and material reward it brings to its creator and the enjoyment it bestows on those who appreciate its beauty and genius. It grants its author the freedom to further explore the craft and investigate new avenues in delighting the human senses.

Now, through a new matching endowment, patrons of the School of Art & Design in the College of Liberal Arts at Southern Illinois University Carbondale have the opportunity to share in that compounding principle of creativity.

The Windgate Foundation recently committed up to $500,000 to the School of Art & Design’s research and scholarship programs. Windgate will donate a dollar for every dollar others donate, making the potential value of the endowment $1 million.

Half of the money would support students as they master ageless crafts such as metalsmithing, glass blowing, and drawing, as well as modern industrial design and art education. The rest would seek to bring talented undergraduates to Southern through scholarships.

For decades, the University has turned out scores of students who go on to lead the way in art and design. Some have returned to Southern or joined other learning institutions as teachers, augmenting their contribution to such fields.

The endowments bring the opportunity.  Like most, this one comes with a window. The University has up to two years to match the two $250,000 endowments.

Donors can amplify their support for Saluki designers and artists of the future.

Donors contributed almost $4 million to endowment accounts during FY05.

15

Endowments The SIU Foundation holds endowment contributions and invests them for perpetuity.

A portion of the revenue generated from the endowment accounts is transferred to corresponding current accounts and used according to the donor’s restrictions. The SIU Foundation reinvests the remaining portion of the investment revenue into the endowment to help hedge against inflation. Donors contributed almost $4 million to endowment accounts during FY05. Many of the contributions were designated for scholarships, research and for the general support of colleges and departments.

Total Endowments as of Fiscal Year 2005 Cash $780,000

Bonds $18,930,000 U.S. Stocks $35,051,000

International Stocks $9,596,000

Total: $64.4 Million

16

Contributions The SIU Foundation accepts contributions in the form of cash, securities and real or personal property. Many corporations will match the contribution of employees, officers, directors and in some instances, spouses and retirees. The SIU Foundation also offers and accepts various types of planned gifts, whereby the donor makes a gift during his or her lifetime that will Benefit the University in the future. Planned gifts are in the form of bequests, gift annuities, charitable remainder trusts, charitable lead trusts and life estate agreements.

Donors contributed a total of $14.9 million during FY05.

Summary of Contributions - Fiscal Year 2005 Gifts given directly to Southern $470,621

Net Pledges $2,980,930

Deferred $1,454,345

Cash and Securities $8,435,435

Gifts in Kind $1,531,383

Total: $14.9 Million

Statement of Net Assets As of June 30, 2005

ASSETS Current Assets

Cash and cash equivalents

Short-term investments

Accounts receivable

Pledge receivable, net

Accrued investment income

Net investment in financing leases

Other assets

Total current assets

Non-current Assets

Restricted cash and cash equivalents

Endowment investments

Other long-term investments

Pledge receivable, net

Irrevocable trust held by other

Cash value of life insurance

Investment in real estate

Net investment in financing leases

Capital assets, net of accumulated depreciation

Other assets

Total non-current assets

TOTAL ASSETS LIABILITIES Current Liabilities

Accounts payable and accrued liabilities

Annuities payable-current portion

Agency funds payable-current portion

Long-term liabilities-current portion

Total current liabilities

Non-current Liabilities

Annuities payable

Agency funds payable

Deposits held for others

Other accrued liabilities

Long-term liabilities

Total non-current liabilities

TOTAL LIABILITIES NET ASSETS Invested in capital assets, net of related debt Restricted for:

Non-expendable

Scholarships, research, instruction, and other

Loans

Capital projects

Expendable

Scholarships, research, instruction, and other

Loans

Capital projects

Unrestricted

TOTAL NET ASSETS

$  236,922 23,697,759 10,643 526,150 79,686 156,789 24,538 24,732,487 8,505 64,028,616 9,408,771 1,132,946 99,928 231,506 158,000 416,125 2,171,781 4,676,657 82,332,835 107,065,322

608,260 452,895 13,710 156,789 1,231,654 3,269,560 1,742,855 344,614 8,498 416,125 5,781,652 7,013,306

2,171,781 51,377,890 2,436,024 112,499 36,985,749 398,581 654,044 5,915,448 $100,052,016

17

18

Expenditures in Support of the University Donors can designate their contributions for items such as scholarships, faculty support, research, support for their college or department, or equipment. Donors also can contribute toward the general support of the University with an unrestricted gift. The SIU Foundation provides for expenditures in support of the University through restricted contributions and Investment revenues generated from the endowment accounts.

Expenditures - Fiscal Year 2005 Professional Development and Travel $325,777

Teaching and Research $1,712,547

Equipment $1,509,704

Expendable Goods $1,007,810

Grants to the University $3,458,197

Scholarships $1,090,261

Total: $9.1 Million

Statement of Revenues, Expenses, and Changes in Net Assets For the year ended June 30, 2005 REVENUES

Budget allocation from SIU

Other operating revenues

Total operating revenues

Operating revenues $  3,194,900 463,746 3,658,646

EXPENSES Operating expenses

General and operating expenses 1,318,383

Budget expended at SIU 3,194,900

Scholarships and cash grants to SIU 4,591,997

Expenditures for the benefit of SIU 3,695,176

Grants to other non-profits 2,539,080

Non-cash grants to SIU 860,662

Amortization and depreciation expense 381,720

Other operating expenses 10,082

Total operating expenses 16,592,000

Operating loss (12,933,354)

NON-OPERATING REVENUES (EXPENSES)

Contributions 7,907,611

Grants from University Related Organizations 295,693

Grants from other government agencies 57,961

Investment income 7,314,494

Payments received on capital financing leases 234,131

Reduction in capital financing leases (152,161)

Interest on capital indebtedness (19,672)

Adjustment of actuarial liability for annuities payable 323,970

Bad debt expense (83,664)

Net non-operating revenues 15,878,363

Income before other revenues, expenses, gains and losses 2,945,009

Contributions for capital assets 922,260

Additions to permanent endowments 3,945,260

Increase in net assets 7,812,529

NET ASSETS

Net assets - beginning of year 92,239,487

Net assets - end of year $100,052,016

19

SIU Foundation Board of Directors as of June 30, 2005

President Emeritus John E. Moody ‘66

Retired Manager of Distribution Planning Dow AgroSciences Carmel, Indiana

President Michael C. Carr ’74, J.D. ‘79 Assistant U. S. Attorney United States Attorney’s Office Carbondale, Illinois

Members Robert A. Chamberlin ‘68

Owner Chamberlin Consulting Group, Inc. Lemont, Illinois

Juh Wah Chen

Dean Emeritus College of Engineering Southern Illinois University Carbondale Murphysboro, Illinois

Paul L. Conti ’72, M.B.A. ‘74 Chief Assets Officer VeriClaim, Inc. Glen Ellyn, Illinois

Harry L. Crisp III ‘92

Carl A. Jennings ’67, Ph.D. ‘71

Retired President North American Chemicals Division BASF Corporation M arco Island, Florida & Raleigh, North Carolina

Bruce W. Joseph ‘84 Captain U. S. Airways Carbondale, Illinois

Donald Kloth ’65, M.S. ‘66

Retired Vice President and Group Executive Anheuser-Busch Companies, Inc. St. Louis, Missouri

George G. Loukas ‘73

Owner George Loukas Real Estate Riverwoods, Illinois

Gray M. Magee, Jr. ‘63 President Specialty Alloys Corp.

Cordova, Tennessee

F. Lynn McPheeters ‘64

Retired Vice President/CFO Caterpillar, Inc. Peoria, Illinois

President/COO Pepsi MidAmerica Marion, Illinois

Dianne Meeks

Larry R. DeJarnett ’62, M.S. ‘63

Christoph E. Micha ‘83

Managing Director The LAMAR Group Rancho Palos Verdes, California

John C. Dosier

President, CEO First Southern Bank Carbondale, Illinois

James T. Gildersleeve ‘72 President Gildersleeve Fertilizer Co. Hudson, Illinois

Roger G. Gray ‘64

Retired Central Bank of Marion Cobden, Illinois

Community Leader Carbondale, Illinois Manager, Quality Engineering Services DaimlerChrysler Corp.

Farmington Hills, Michigan

Pamela K. Pfeffer ‘67 Community Leader Nashville, Tennessee

Robert G. Richter ‘67 Labor Arbitrator S cottsdale, Arizona & Chicago, Illinois

Doris Rottschalk ‘69 Retired Teacher DuQuoin High School DuQuoin, Illinois

Dr. Marsha G. Ryan, J.D. ‘87 Ph ysician, Surgeon, Professor of Law Murphysboro, Illinois

Roger B. Tedrick ‘70

Chair, SIU Board of Trustees Owner Tedrick Insurance Agency Mount Vernon, Illinois

The Late James E. Walker President Southern Illinois University Carbondale, Illinois

Walter V. Wendler

Ch ancellor, Southern Illinois University Carbondale Carbondale, Illinois

H. Wesley Wilkins ‘77 Attorney-at-Law Cobden, Illinois

Honorary Director Dorothy M. Morris, Hon. L.H.D. ‘98

Mary Kay Moore ’78, M.S. ‘81

Former First Lady Southern Illinois University Chapel Hill, North Carolina

Clifford G. Neill

Alternates Edward M. Buerger ‘70

Community Leader Carbondale, Illinois

Dentist Associate Professor Fe llow in International College of Dentistry Carbondale, Illinois

Thomas E. Nielsen, M.D. ‘81

Physician BroMenn Regional Medical Center Bloomington, Illinois

Associate Vice Chancellor for Institutional Advancement Executive Director SIU Alumni Association Creal Springs, Illinois

SIU Board of Trustees Glenn W. Poshard Through June 17, 2005

21

Campaign Leadership Honorary Chair Dorothy M. Morris, Hon. L.H.D. ‘98 Former First Lady Southern Illinois University Chapel Hill, North Carolina

22

Campaign Chair Dr. Marsha G. Ryan, J.D. ‘87

Physician, Surgeon, Professor of Law Murphysboro, Illinois

Campaign Vice Chair Philip M. Pfeffer ‘65, M.A. ’66, Hon. L.H.D. ‘97 President, CEO Treemont Capital, Inc. Nashville, Tennessee

President, SIU Foundation Larry R. DeJarnett ‘62, M.S. ‘63 Managing Director The LAMAR Group Rancho Palos Verdes, California

Past President, SIU Foundation Michael C. Carr ‘74, J.D. ‘79 Assistant U.S. Attorney United States Attorney’s Office Carbondale, Illinois

President, SIU Alumni Association Sheri Hunter ‘76, M.S.Ed. ‘88 Retired Teacher Marion, Illinois

Past President, SIU Alumni Association Mimi Wallace ‘62 Community Volunteer Beverly Hills, California

Southern Illinois University Carbondale Walter V. Wendler Chancellor

Campaign Executive Director Rickey N. McCurry

Vi ce Chancellor for Institutional Advancement and Chief Executive Officer, SIU Foundation

Campaign Director Jeff Lorber

As sociate Vice Chancellor and Executive Director of Development

Steering Committee Mark J. Ashley, M.S. ‘79, Hon. Sc.D. ‘02 President/CEO Centre for Neuro Skills Bakersfield, California

John S. Brewster, J.D. ‘76

Partner Winters Brewster Crosby & Schafer Marion, Illinois

Carolyn F. Donow ‘74, M.S.Ed. ‘76, Ph.D. ‘82

Associate Director Office of Research Development and Administration Southern Illinois University Carbondale Makanda, Illinois

Bob G. Gower ’58, M.A. ‘60

CEO/Co-Founder Carbon Nanotechnologies, Inc. Houston, Texas

Christoph E. Micha ‘83

Manager, Quality Engineering Services DaimlerChrysler Corporation Farmington Hills, Michigan

Ronald E. Osman, J.D. ‘79

Ronald E. Osman & Associates Marion, Illinois

Willie Pearson, Jr., Ph.D. ‘81

Professor of Sociology & Chair, School of History, Technology, & Society Georgia Institute of Technology Atlanta, Georgia

Pamela K. Pfeffer ‘67 Community Leader Nashville, Tennessee

Mary M. Roe ’65, M.S. ‘66

Retired Vice President of Student Services Rend Lake College Pinckneyville, Illinois

Stephen J. Scates ‘59 Farmer Pat Scates & Sons Shawneetown, Illinois

Herbert S. Shear ‘69

Chairman & CEO Genco Distribution System Pittsburgh, Pennsylvania

Donald A. Stork ‘61

Consultant Media Management Inc. Belleville, Illinois

Harvey Welch, Jr. ‘55, M.S.Ed. ‘58

Retired Vice Chancellor for Student Affairs Southern Illinois University Carbondale Carbondale, Illinois

David P. Will ‘75

Vice President of Testing Facilities Caterpillar Inc. Peoria, Illinois

SIU Foundation and Related Staff as of May, 2006

Rickey N. McCurry, Vice Chancellor for Institutional Advancement and Chief Executive Officer Elizabeth Banycky, Controller and Treasurer Jeff Lorber, Associate Vice Chancellor for Institutional Advancement and Executive Director of Development Bryan C. Vagner, Assistant Vice Chancellor for Institutional Advancement and Managing Director Nancy A. Vallino, Business/Administrative Associate and Corporate Secretary

Advancement Services Beth L. Mohlenbrock, Executive Director Twyla D. Adkisson-Peak, Director of Research and Data Integrity David B. Schwartz, Director of Information Systems Linda Wright, Director of Gift and Biographical Processing

Annual Giving Nanditha Balasubramanian, Interim Director of Annual Giving, SIU Foundation Jill Beidler, WSIU/College of Mass Communication and Media Arts George Robinson, Intercollegiate Athletics

Constituent Development Directors Matthew C. Baughman, Paul Simon Public Policy Institute James T. Bell, Intercollegiate Athletics Tammy C. Cavarretta, College of Business and Administration Michael Ellis, College of Applied Sciences and Arts Jill T. Gobert, College of Liberal Arts Ronald D. Graves, College of Mass Communication and Media Arts Scott M. Kruger, School of Law June Lang, School of Medicine Kevin Lister, Central Development James M. Manis, Special Projects Kristine McGuire, Library Affairs Tanna Morgan, Central Development Michael C. Murray, College of Engineering Re becca Stenhaug, College of Agricultural Sciences and Central Development

Corporate and Foundation Giving Michael C. Murray, Director of Corporate Relations Carolyn A. Snyder, Director of Foundation Relations

Planned Giving Yvonne M. Spencer, Director

Financial Services Cindy Ciganovich, Assistant Controller Marla Fuller, Director of Gift Accounting Cindy Moreno, Assistant Controller, Springfield Office

23

24

The Southern Illinois University Foundation was established in 1942 to solicit, receive, hold and administer gifts from private sources for educational purposes. The SIU Foundation provides alumni and other friends a means to invest in the future of their University. The Foundation is an independent, non-profit corporation, which exists solely to further the mission of Southern Illinois University Carbondale.   The SIU Foundation is a designated 501(c)3 organization with appropriate approval from the Internal Revenue Service to issue tax deductible receipts for private gifts received to support Southern Illinois University Carbondale.

Southern Illinois University Foundation Colyer Hall – Mail Code 6805 Southern Illinois University Carbondale 1235 Douglas Drive Carbondale, Illinois 62901 618/453-4900 siuf@siu.edu www.siuf.org

Produced by Media & Communication Resources Mail Code 6519 Southern Illinois University Carbondale 1010 South Elizabeth Street Carbondale, Illinois 62901 618 | 453.2276 http://news.siu.edu Editor: Tim Crosby Art Direction and Design: Jay Bruce Designer: Shawna Moyers Ph otographers: Russell Bailey, Jeff Garner, Steve Buhman and stock images Contributors: Libby Banycky, Nancy Vallino Printer: Print Group Inc., Ozark MO, 5/05, 3M.

www.siuc.edu