ksu foundation annual report 2007

KSU Foundation Center2323 Anderson Avenue, Suite 500Manhattan, Kansas 66502-2911785-532-6266 • 800-432-1578

www.found.ksu.edu

Changing Lives

2 Kansas State University Foundation 2007 Campaign Progress & Annual Report 3

“As a fifth-generation K-Stater, I grew up understanding the value of

a K-State education. My professors, advisors, mentors and friends

have believed in my potential as a leader and have given me the

confidence to pursue my dreams.

At K-State, I have seen students who have been so inspired by the

gifts of alumni and friends that they too have decided to give back.

My experience with K-State Proud — the student philanthropic

campaign — has demonstrated that those who benefit from private

support want to pay it forward and continue the cycle of

philanthropy.

K-State teaches that it is not where you come from, but where you

are going; if you have a dream, all those around you will work to help

you achieve your goals.”

Student successEmily Besler

Major:Marketing and political science

Hometown:Evergreen, Colorado

Favorite K-State memory:Attending the K-State Proud pep rally,when the student body learned thatthey had raised more than $62,000 tohelp their fellow students.

Hobbies:Scrapbooking, watching K-Statesports, playing volleyball, spendingtime with friends

Future plans:To work in consulting with anemphasis in leadership development— eventually in a nonprofit leadershipposition.

“Helping our students succeed in their academic and professional

careers is the most rewarding experience a faculty member can have.

The Changing Lives Campaign has enhanced the opportunities for

our students and faculty to learn and advance in their professions.

Private funding has a major impact on our ability to recruit and

retain top-quality faculty to sustain our growth. Our alumni, friends

and corporate partners are helping to create future generations of

successful K-State students through their generous contributions.

It is a special privilege to be a part of the engineering and

construction education process, and I can assure our donors their

support has made a big difference in the lives of K-State students

and faculty.”

FacultydevelopmentDave Fritchen

Position:Professor and head of the Department ofArchitectural Engineering and ConstructionScience. Holds the John W. and Dorothy M.Burke Architectural Engineering Chair.

Educational background:B.S. construction science, Kansas StateUniversity, 1971; M.S. civil engineering,University of Washington, 1977

Years with K-State:14

Favorite K-State memory:Making lifelong friends, especially with my wife, Kay

Hobbies:Fishing, hunting, home improvement projects

2007 Campaign Progress & Annual Report 54 Kansas State University Foundation


The new Hal Ross Flour Mill, built and equipped entirely through

private funds, is one of a kind. The mill places K-State in a position

to deal with the changes in milling and address nutritional and health

issues. Faculty members provide current and future students the

opportunity to learn the art and science of flour milling in a highly

automated facility.

“The Hal Ross Flour Mill affords K-State students training

opportunities that weren’t possible in the mill located in

Shellenberger Hall,” said Kendall McFall, grain science instructor,

pictured with student Michael McSwain. “The new plant is equipped

with the latest in milling technology, packaged to provide a flexible

system for both teaching and research on all classes of wheat.”

New and refurbished space creates pride of place and a home for the

programs that advance scholarship and improve the capacity of

students and faculty to change lives.

Learning environmentHal Ross Flour Mill

Size:22,000 square feet, five stories,72 feet tall

Funding:$10 million, all private donations

Furnished milling equipment:Buhler Inc.

Number of major contributors:51

Capacity:1 metric ton of wheat per hour

We gratefully acknowledge the KSU Foundation Board of Trustees for

their outstanding leadership. We sincerely appreciate the time and

financial support they have provided in order to make the Changing

Lives Campaign a success. Private philanthropy makes the difference

between a dream that never gets a chance and a dream that comes true.

Over the 63-year history of the KSU Foundation, our group

of volunteer leaders has grown from a handful to thousands. The

cooperation of volunteers, university administration and faculty, and

foundation staff makes our university the one-of-a-kind institution we

call K-State.

Working together to change lives


From left: Dennis von Waaden, chairman, KSU FoundationBoard of Trustees; Paul Stephenson, chairman, KSU FoundationExecutive Committee; Gary Hellebust, president and CEO,KSU Foundation; Jon Wefald, president, Kansas State University.


Fiscal year highlights

Dear friends:

Thanks to each of our many generous donors, we are pleased to report that the Kansas StateUniversity Foundation again had a successful fundraising year with contributions totaling$91.5 million in fiscal year 2007. Of the $91.5 million total, $51.7 million was received in cash, and$39.8 million was committed through pledges and deferred gifts. There is no question that theexcitement surrounding the Changing Lives Campaign is moving K-Staters to new levels ofgenerosity.

The $500 million Changing Lives Campaign is the most ambitious undertaken in K-State’s history,with an aggressive goal that we are well on our way to meeting. The successful completion of thiscampaign is imperative to ensure our capacity now, and in the future, to fulfill higher education’strue promise of changing lives.

Consider the fact that state support for K-State has declined to less than 25 percent of the university’sannual budget. Our university now relies on gifts from alumni and friends, and our faculty’s ability toearn grants and contracts, to fund the major portion of the university’s budget. By participating inthis campaign and by supporting areas we care about most, we are demonstrating to others that wevalue K-State not just as our school, but as an important contributor to our future.We recognize that K-State owes much of its success to the support and involvement of so many ofyou. On behalf of K-State’s students, faculty and staff, we extend our heartfelt thanks.

Paul Stephenson, chairmanExecutive Committee

Dennis von Waaden, chairmanBoard of Trustees

Gary Hellebust, president and CEOKSU Foundation 200720062005200420032002

$10

$20

$30

$40

$50

$60

$70

$80

$90

$35.2$26

$16.7

$38.5$28.1

$57.6

$41.8$54.2

$44.8

$37.3

$92.8

$39.8

$51.7

$91.5

$67.8$70.9

$83.3

$65.4

Changing Lives Campaign progressThe Changing Lives Campaign goal of$500 million will meet priorities inK-State’s nine colleges, as well as thealumni association, athletics anduniversitywide programs. With the helpof dedicated volunteer leadersthroughout the country, alumni andfriends have given as never before.

The charts here represent campaignprogress at the close of fiscal year 2007.Exciting progress has been made sincethen, but there is still work to be done.

Constituency Goal (millions) Total raised % of goalAgriculture $100 $79,737,666 80%

Architecture, Planning & Design $6 $5,850,059 98%

Arts & Sciences $35 $35,116,909 100%

Business $20 $29,016,960 145%

Education $10 $11,307,939 113%

Engineering $75 $81,920,608 109%

Human Ecology $17 $17,967,198 106%

K-State at Salina $5 $5,441,479 109%

Veterinary Medicine $35 $38,780,127 111%

Alumni Association $10 $10,707,267 107%

KSU Athletics $90 $92,601,853 103%

University Priorities $97 $74,722,515 77%

Total $500 $483,170,580 97%

Region Goal (millions) Total raised % of goalWest $40 $36,045,601 90%

Mountain $25 $28,531,041 114%

North Central $40 $46,744,282 117%

Kansas $250 $245,220,130 98%

South Central $55 $59,465,092 108%

East Central $15 $16,497,146 110%

East $55 $48,502,352 88%

International $20 $2,164,936 11%

Total $500 $483,170,580 97%


Changing Lives Campaign participationWe salute our volunteer leaders! The Changing Lives Campaignhas engaged alumni across the country. Volunteers in each of theseven regions have been instrumental in helping identify andengage alumni and friends in K-State activities. The success ofthose efforts is illustrated by each region’s statistics. Participationfrom alumni throughout the country is crucial to the success ofthe campaign.

HONORARY CHAIRPERSONS

WESTMOUNTAIN

SOUTH CENTRAL

KANSAS

NORTH CENTRAL

EASTEAST CENTRAL

Chairpersons: Rhea andPat Serpan, Danville,California

Current students fromregion: 253*

Region donors who havemade a campaign gift:6,177

Chairpersons: Robertand Betty Tointon,Greeley, Colorado



Chairpersons: Gary Glatzand Lela Beck-Glatz,Gurnee, Illinois

Current students fromregion: 1,328*


Chairpersons: Arnoldand Terrie Allemang,Midland, Michigan



Chairpersons: Paul andSandra Edgerley,Brookline, Massachusetts



Chairpersons: Dennisand Sally vonWaaden, Austin, Texas



Chairpersons: Duaneand Leslee Cantrell,Topeka

Current students fromregion: 16,865*


INTERNATIONALCurrent students from region: 1,056*

Region donors who have made acampaign gift: 366

*Student numbers for each region are asof the spring 2007 semester

Ross and MariannaKistler BeachLawrence, Kansas

Jim and Marcia ColbertLas Vegas, Nevada

Jack and Joann GoldsteinManhattan, Kansas

Robert and MarciaHagansOverland Park, Kansas

Dean and Lavon MortonLos Altos, California

Elizabeth RhodesMesa, Arizona

Mitch and Juli RichmondLos Angeles, California

Bill and Sharon SnyderManhattan, Kansas

Warren R. and Mary LynnStaleyEdina, Minnesota

Joe M. and Inge T. TiaoManhattan, Kansas

Jack and Donna VanierBrookville, Kansas

M. Fred Tex and NancyChase WinterNewport, Oregon

Every gift makes adifference, and every giftchanges lives.

Here are just a few ways ourannual giving departmentcommunicates with K-State’salumni and friends:


Annual givingAnnual giving at K-State strives to educate and encouragealumni, friends, faculty and staff, students and parents to supportK-State on an annual basis through various giving and leadershipopportunities. The purpose is to build a broad base ofcontributors who will support the immediate needs of theuniversity by responding to customized mail appeals andtelephone campaigns.

Each donor may choose to designate his or her support forstudents, faculty or research in any of the university’s colleges,programs or departments. You decide who benefits from yoursupport. Annual donors are an integral part of K-State — yourgifts advance the university with every coming year. Every annualgift, whatever its size, makes a valuable and immediatedifference at K-State.

Annual gifts support:� Student scholarships� Professional development for faculty� Facility enhancements

K-State Proud: Studentschanging lives

K-State Proud was the first all-universitystudent campaign of its kind at K-State— designed for students to have a partin the Changing Lives Campaign. Guidedby the leadership of Student Foundation,the campaign allowed students to showtheir pride through philanthropy. Studentcampaign donations established StudentOpportunity Awards for fellow K-Statestudents in need.

Telefund

K-State’s annual Telefund hosted22 calling sessions in 2007, loggingpledges worth $1,408,737. Cooperationand dedication separate K-State’sTelefund from the year-round,automated, paid-caller systems that havebecome the standard among collegiatetelephone campaigns. More than16,000 K-State alumni and friendsparticipated in the Changing LivesCampaign by pledging to Telefund 2007.

All-University Campaign

In September 2006, K-State launched theinaugural All-University Campaign. Ledby faculty and staff volunteers, thecampaign reached out to all faculty andstaff across campus, encouraging them toshow their pride through philanthropy.The All-University Campaign will becomean annual campaign coordinated throughthe annual giving department.


Cargill honors K-State alumnus withgift to leadership studiesKansas State University has had a long-standing relationshipwith Cargill, a Minneapolis-based international provider of food,agricultural and risk management products and services. In 2007,Cargill announced a $1 million gift to name theCargill Center for Ethical Leadership withinthe Center for Leadership Studies.

When Warren Staley, a 1965 K-Stategraduate, recently retired as Cargill’s president and chiefexecutive officer, Cargill honored Staley with this gift to promoteethical business leadership at K-State.

“Cargill is pleased to make this unprecedented gift to supportthe ethics center as a way to recognize Warren Staley’scommitment to promoting leadership and sound ethical businesspractices,” said Greg Page, president and chief executive officerof Cargill.

For more than 20 years, Cargill has supported a variety ofK-State’s academic programs, diversity initiatives, scholarshipsand facilities improvements across campus. Cargill and K-Statehave worked together on targeted academic programs in theColleges of Agriculture, Engineering and Human Ecology. Cargillalso sponsors the Cargill Business Ethics Lecture Series in theCollege of Business Administration.

Corporate matchingprograms enhance giftsto K-StateA young professional at ExxonMobil inHouston, Andrew Bell decided early thathe wanted to give back to his alma mater.With the help of a corporate matchinggift program, Bell was able to establish ascholarship for K-State student leaders.

“Utilizing matching gift programs is theultimate opportunity to make dreamscome true and to also keep educationaffordable for all students,” said Bell, a2003 management information systemsgraduate. “Not only does the partnershipencourage alumni to give back to theiruniversity, but it allows donors theopportunity to channel their money intospecific programs that can make adifference in other people’s lives.”

Bell used ExxonMobil’s 3-to-1 matchinggift program to establish an endowedfund, the Andrew K. Bell Residence LifeLeadership Scholarship.

“I am fortunate to work for a companythat realizes the importance of investingin the present and for the future,” he said.“I was able to use matching fundsprovided by the ExxonMobil Foundationto multiply my contribution intosomething that could help others expandtheir leadership abilities. Corporationsneed to think of the matching giftprogram not just as an expense on thecorporate balance sheet. Investing ineducation will continue to expand thecreativity required in order for businessesto succeed.”

2007 matching giftsMore than $975,000 was received inmatching gift donations in fiscal year2007 — a 12 percent increase from fiscalyear 2006.

Of that total, more than:

� 2,000 matching gifts were received.

� 1,500 alumni and friends utilizedtheir company’s matching giftprogram.

� 250 companies matched theiremployee’s gifts to K-State.

Corporate andfoundationrelations

The corporate and foundation relations department acts as acatalyst to promote and strengthen relationships betweencorporations and foundations and the K-State academiccommunity. Comprehensive strategic partnerships producea variety of mutually beneficial programs between theuniversity and corporations.

The following corporate andfoundation partners havesupported Kansas StateUniversity with gifts of$100,000 or more during the2007 fiscal year.

CORPORATIONS

Buhler Inc.

Burke Lawton Brewer & Burke

Cadence Design Systems Inc.

Cargill Inc.

Cereal Food Processors Inc.

ConocoPhillips

Hill’s Pet Nutrition Inc.

Jacob Tubing LP

Kice Industries Inc.

Lectra USA Inc.

Mercy Regional Health Center

Merial Limited

Pepsi Cola Bottling Co. ofMarysville Inc.

Porter Farms

Via Christi Health System Inc.

Wildcat Construction Co. Inc.

FOUNDATIONS

Cessna Foundation Inc.

Carl M. and Ruth L. Coonrod FamilyFoundation

Crosby Family Foundation

Dane G. Hansen Foundation

Dixon and Carol Doll FamilyFoundation

Don C. and Florence M. McCuneFoundation

E. Eugene Carter Foundation

Lattner Family Foundation Inc.

Tointon Family Foundation

ConocoPhillips selects K-State forSPIRIT Scholars ProgramConocoPhillips, the third-largest integrated energy company inthe United States, selected K-State as the newest member of itsSPIRIT Scholars Program and presented a check for $400,000 tothe university in April. K-State is one of only eight universities inthe country to receive thisdistinction.

The SPIRIT ScholarsProgram provides academicscholarships to sophomores, juniors, seniors and graduatestudents. Mentoring opportunities and the opportunity to beinterviewed for internships and full-time employment atConocoPhillips are additional benefits of the program.

“ConocoPhillips is extremely proud of the Kansas StateUniversity graduates who work in our company,” said RandBerney, vice president and controller of ConocoPhillips and theexecutive contact for the partnership with K-State. “They bring awealth of knowledge and breadth of experience that continues tocreate a lasting impact on our businesses.”

ConocoPhillips officials said that by cultivating workingrelationships with universities like K-State, they are able toidentify, develop and recruit top talent with the goal of givingstudents a competitive edge in business and creating the leaderswho will drive the success of ConocoPhillips well into the future.

Rand Berney, vice president and controller of ConocoPhillips,visits with newly selected K-State SPIRIT Scholars.

Andrew Bell


Volunteer leaders

KSU Foundation ExecutiveCommitteeThe executive committee is com posed of the chair man, vicechairman, secretary and trea surer of the board of trust ees, thepresident of the uni ver si ty, the chair man of the K-State AlumniAssociation Board of Di rec tors and ad di tion al members electedfrom the board of trust ees.

The executive com mit tee meets quarterly to consider policy andman age ment is sues and is authorized to act on behalf of theboard of trust ees between its annu al meetings. Ex ec u tivecommit tee members also apply their expertise to com mit teesinclud ing in vest ment advi sory, development and pri or i ti za tion,tech nol o gy, bud get and operations, account ing and audit, trustmanagement advisory and nominating.

Board of trustees asof June 30, 2007

Barb AdeeNewton, Kansas

Ray AdeeNewton, Kansas

Robert AllenVoorhees, New Jersey

Doug AnstaettTopeka, Kansas

Lucinda AnstaettTopeka, Kansas

Terry Arthur IIIManhattan, Kansas

Douglas AyreLarned, Kansas

Jane AyreLarned, Kansas

Jack AyresScottsdale, Arizona

Janet AyresScottsdale, Arizona

Bruce BachmanCentralia, Kansas

Sally BakerGranbury, Texas

Thane BakerGranbury, Texas

Janice BarclayRogers, Arkansas

Dick BarclayRogers, Arkansas

Michael BarreraWashington, D.C.

Jon BaumShawnee Mission,Kansas

Ann BeckerWichita, Kansas

Dean BeckerWichita, Kansas

Charles BelewWichita, Kansas

Jeanne BelewWichita, Kansas

Karen BellManhattan, Kansas

Deloris BerlandManhattan, Kansas

Steve BerlandManhattan, Kansas

Ann BidwellChicago, Illinois

Ann BinghamLake Quivira, Kansas

Larry BinghamLake Quivira, Kansas

Beth BirdAnthony, Kansas

Dan BirdAnthony, Kansas

James BirkbeckHolton, Kansas

Mary BirkbeckHolton, Kansas

Rolando BlackmanDallas, Texas

Tamara BlackmanFrisco, Texas

Doug BlackwoodOlathe, Kansas

Jerry BoettcherBeloit, Kansas

Eldon BoisseauWichita, Kansas

Janet BoisseauWichita, Kansas

Gary BoomerKansas City, Missouri

Kathleen BorckManhattan, Kansas

Lee BorckManhattan, Kansas

Nadalie BosseLeawood, Kansas

Brent BowmanLeawood, Kansas

Lorie DoolittleBowmanLeawood, Kansas

Kent Bradley MDValley Center, Kansas

Ron BramlageJunction City, Kansas

Barbie BreedloveOlathe, Kansas

Loren BreedloveOlathe, Kansas

Ben BrentManhattan, Kansas

Dwayne BroddleWichita, Kansas

Karen BrokenickyManhattan, Kansas

Phil BrokenickyManhattan, Kansas

Mary BrooksOverland Park, Kansas

Bill BrooksOverland Park, Kansas

Elizabeth BurkeDoylestown,Pennsylvania

Franklin BurkeDoylestown,Pennsylvania

Bernie ButlerManhattan, Kansas

Duane CantrellTopeka, Kansas

Leslee CantrellTopeka, Kansas

Tom CarlinManhattan, Kansas

Michael CarlisleLawrence, Kansas

Charles Chandler IVWichita, Kansas

Dave ChelesnikDel Mar, California

Michael ChristensenWaterloo, Nebraska

Susan ChristensenDDSWaterloo, Nebraska

Charlie Claar Jr.Garden City, Kansas

James CoffmanManhattan, Kansas

Larry CoffmanSt. Joseph, Missouri

Sally CoffmanSt. Joseph, Missouri

Executive committee as ofJune 30, 2007

Paul StephensonChairman, executive committeeWichita, Kansas

Lee HarrisVice chairman, executivecommitteeLeawood, Kansas

Duane CantrellTreasurer, board of trusteesTopeka, Kansas

Randy CoonrodWichita, Kansas

Tara CuppsWichita, Kansas

Paul EdgerleyBrookline, Massachusetts

Curt FrasierBeloit, Kansas

Phil HoweSecretary, board of trusteesManhattan, Kansas

Earl McVickerVice chairman, board of trusteesHutchinson, Kansas

Bill SanfordWilloughby, Ohio

Rhea SerpanChairman, K-State AlumniAssociation Board of DirectorsDanville, California

Eleanor StolzerManhattan, Kansas

Betty TointonGreeley, Colorado

Dennis von WaadenChairman, board of trusteesAustin, Texas

Ex Officio

Duane NellisProvostKansas State University

Phil PharPresidentLivestock and Meat IndustryCouncil

Lyle PishnyPast chairman

Jon WefaldPresidentKansas State University

Gary HellebustPresident/CEOKSU Foundation

KSU Foundation Board ofTrusteesThe foundation’s governing board consists of electedvolunteers who serve four-year terms. The board oftrustees meets annually to consider foun da tion policiesand stra te gic direc tion. Trust ees also help iden ti fy,cultivate and solic it sup port for the university fromindividuals, cor po ra tions and foundations.

Trustees not only volunteer their time and ex per tise,they also provide continu ous financial support to the univer si ty .


Sharon CoffmanManhattan, Kansas

Marcia ColbertManhattan, Kansas

Brenda ComptonWichita, Kansas

Gib ComptonWichita, Kansas

Randy CoonrodWichita, Kansas

Bonnie CordillTopeka, Kansas

Jerry CordillTopeka, Kansas

Nancy CoulterBroken Arrow, Oklahoma

Roger CoulterBroken Arrow, Oklahoma

Ann CranorShawnee Mission,Kansas

Timothy CranorShawnee Mission,Kansas

Tara CuppsWichita, Kansas

Terry CuppsWichita, Kansas

Chris CurtinOverland Park, Kansas

Hugo Dahlstrom IIIMcPherson, Kansas

Neisha DahlstromMcPherson, Kansas

Robert DavisTopeka, Kansas

Venette DavisTopeka, Kansas

Bob DeBruynManhattan, Kansas

Amy DobbinsOlathe, Kansas

Mark DobbinsOlathe, Kansas

Ann DodderidgeVenice, Florida

Dick DodderidgeVenice, Florida

Dixon DollSan Francisco, California

Marilee DonaldsonPlano, Texas

Rich DonaldsonPlano, Texas

Joe DowneyManhattan, Kansas

Sherry DowneyManhattan, Kansas

David DreilingManhattan, Kansas

Kristen DreilingManhattan, Kansas

Don DresslerIrvine, California

Linda DresslerIrvine, California

Paul EdgerleyBrookline, Massachusetts

Gary EdwardsHouston, Texas

Peggy EdwardsHouston, Texas

Ann EricksonManhattan, Kansas

Howard EricksonManhattan, Kansas

Richard EversSt. Joseph, Missouri

Sharon EversSt. Joseph, Missouri

Jerry FairbanksGoodland, Kansas

Joe FarrarManhattan, Kansas

Nancy FarrarManhattan, Kansas

Ann FinglandManhattan, Kansas

Roger FinglandManhattan, Kansas

Barry FlinchbaughManhattan, Kansas

Cathy FlinchbaughManhattan, Kansas

Bernard FranklinKansas City, Kansas

Curt FrasierBeloit, Kansas

Sherry FrasierBeloit, Kansas

Marilyn GalleManhattan, Kansas

Nelson GalleManhattan, Kansas

Mark GalyardtAtlanta, Georgia

Susie GalyardtAtlanta, Georgia

Henry GardinerAshland, Kansas

Doug GastonLeawood, Kansas

Rozanne GastonLeawood, Kansas

Jeff GatesNew York, New York

Malinda GilchristManhattan Beach,California

Mary Kevin GillerManhattan, Kansas

Tom GillerManhattan, Kansas

Gary GlatzGurnee, Illinois

Nick GoldenOverland Park, Kansas

Susan GoldenOverland Park, Kansas

Jack GoldsteinManhattan, Kansas

Joann GoldsteinManhattan, Kansas

Michael GossWestport, Connecticut

Celinda GrahamWichita, Kansas

Jim GrahamWichita, Kansas

John GrahamManhattan, Kansas

Mary Lee GrahamManhattan, Kansas

Sue GreigManhattan, Kansas

Carolyn GrierWichita, Kansas

Chuck GrierWichita, Kansas

Jim Grier IIIWichita, Kansas

Susan GrierWichita, Kansas

Jo HarbinSalina, Kansas

Bill HarbinSalina, Kansas

Barbara HarrisLeawood, Kansas

Lee HarrisLeawood, Kansas

Clay HarveyTopeka, Kansas

Marsha HedlundWichita, Kansas

Jerod HeimanWichita, Kansas

ChristopherHernandezKansas City, Kansas

Chris HessCarlsbad, California

Ken HewsonLarned, Kansas

Mary HewsonLarned, Kansas

Doug HillSt. Louis, Missouri

Jerry HillMarina del Rey,California

Joleen HillManhattan, Kansas

Vicki HillSt. Louis, Missouri

Colleen HodesRockaway, New Jersey

Steven HodesRockaway, New Jersey

Elaine HodgsonOverland Park, Kansas

Michael HodgsonOverland Park, Kansas

Hank HoesliWichita, Kansas

Sally HoesliWichita, Kansas

Don HoffmanHays, Kansas

Gretta HoffmanHays, Kansas

Jeannie HollisTucson, Arizona

Phil HollisTucson, Arizona

Allen HomanPortage, Michigan

Dianne HonomichlDe Soto, Kansas

Kevin HonomichlDe Soto, Kansas

Julie HostetlerManhattan, Kansas

Phil HoweManhattan, Kansas

Cleve HumbertManhattan, Kansas

Mark HuttonWichita, Kansas

Mary HuttonWichita, Kansas

Carl IceColleyville, Texas

Mary IceColleyville, Texas

Rae ImanAlbuquerque, NewMexico

Ron ImanAlbuquerque, NewMexico

Linda IrsikGainesville, Florida

Max IrsikGainesville, Florida

Rebecca Jackson-ClaarGarden City, Kansas

Connie JaynesTulsa, Oklahoma

Ann JohnsonLawrence, Kansas

Jim JohnsonColorado Springs,Colorado

Steven JohnsonOverland Park, Kansas

Steve JohnsonLawrence, Kansas

Larry JusticeOlathe, Kansas

Jim KadelBeloit, Kansas

Karol KadelBeloit, Kansas

Gial KaegiDerby, Kansas

Marge KaegiDerby, Kansas

Carolyn KellerLittleton, Colorado

Cindy KellerPratt, Kansas

Frank KellerLittleton, Colorado

Bill KellerPratt, Kansas

Hannah KerschenWichita, Kansas

Rich KerschenWichita, Kansas

Beth KesingerManhattan, Kansas

Don KesingerManhattan, Kansas

Mary Lee KindThousand Oaks,California

Larry KingDenver, Colorado

Douglas KitchenNashville, Tennessee

Kenny KnightLyons, Kansas

Tamara KnightLyons, Kansas

Joan KnollTopeka, Kansas

Loren KochMarietta, Georgia

Sandra KochMarietta, Georgia

Patrick KoonsBurdick, Kansas

Sharon KoonsBurdick, Kansas

Duane KosterGarden City, Kansas

Kathleen KosterGarden City, Kansas

Rick KrauseGreat Bend, Kansas

Rita KrauseGreat Bend, Kansas

Barbara KrugerHenderson, Nevada

Lon KrugerHenderson, Nevada

Cathryn LacyDes Moines, Iowa

Stephen LacyDes Moines, Iowa

Charles LamphearLincoln, Nebraska

Karen LarsonOlathe, Kansas

Alan LauckSanta Fe, New Mexico

Jon LevinManhattan, Kansas

Lila LevinManhattan, Kansas

Bill LivingstonWichita, Kansas

Cheryl LockettLeawood, Kansas

Kevin LockettLeawood, Kansas

Beth LullSalina, Kansas

Dennis LullSalina, Kansas

Joyce LutzTopeka, Kansas

Ronald LutzTopeka, Kansas

Dan LykinsTopeka, Kansas

Board of trustees asof June 30, 2007(continued)


Judy LykinsTopeka, Kansas

Jo LyleManhattan, Kansas

Kenneth LyleManhattan, Kansas

Jan MarkelRogers, Arkansas

Lynn MarkelRogers, Arkansas

Renay MartinOverland Park, Kansas

Rick MartinOverland Park, Kansas

Terry MatlackShawnee Mission,Kansas

Diana McCaustlandManhattan, Kansas

Bob McCaustlandManhattan, Kansas

John McCloskeyEvergreen, Colorado

Earl McVickerHutchinson, Kansas

Candy MerrillOverland Park, Kansas

Fred Merrill Jr.Overland Park, Kansas

Lauren MeyerLenexa, Kansas

Mark Meyer MDLenexa, Kansas

Doris MillerManhattan, Kansas

Joe MillerSpring Lake, New Jersey

Monte Miller Jr.Manhattan, Kansas

Ron MinarciniMarco Island, Florida

Harish MinochaManhattan, Kansas

Rich MistlerFairway, Kansas

John MollettOlathe, Kansas

Kathryn MollettOlathe, Kansas

John MontgomeryJunction City, Kansas

deAnn MooreMission Hills, Kansas

Sam MooreMission Hills, Kansas

John MorganPacific Palisades,California

Linda MorganPacific Palisades,California

Aaron MorrisonSalina, Kansas

Cy MoyerPhillipsburg, Kansas

Bill MuirManhattan, Kansas

Elaine MullPawnee Rock, Kansas

Glenn MullPawnee Rock, Kansas

Keith MullLarned, Kansas

Dennis MullinManhattan, Kansas

Andrew MurphyGreat Bend, Kansas

Mary Jo MyersArlington, Virginia

Richard MyersArlington, Virginia

David NelsonSt. George, Kansas

Mary Jo NelsonSt. George, Kansas

Larry NettlesLeawood, Kansas

Gary OlsonLawrence, Kansas

Julie OltjenOverland Park, Kansas

Rob OltjenOverland Park, Kansas

Ken PeirceHutchinson, Kansas

John PerrierDodge City, Kansas

Jan PishnyStilwell, Kansas

Lyle PishnyStilwell, Kansas

Mary PollackManhattan, Kansas

Gary ProffittSterling, Kansas

Casey RachofskySan Diego, California

Marc RachofskySan Diego, California

Randy RathbunWichita, Kansas

Les RegierOverland Park, Kansas

Ann RegnierLeawood, Kansas

Bob RegnierLeawood, Kansas

Sid ReitzSalina, Kansas

Deborah RempeWindsor, Colorado

Michael RempeWindsor, Colorado

Kathleen RiordanPrairie Village, Kansas

Michael RiordanPrairie Village, Kansas

Barry RobinsonRolling Hills Estates,California

Marcia RobinsonRolling Hills Estates,California

Roy RobinsonKansas City, Kansas

Sylvia RobinsonKansas City, Kansas

David RockFrisco, Texas

Lisa RockFrisco, Texas

Brent RockersClive, Iowa

Lynne RockersClive, Iowa

Hal RossWichita, Kansas

Mary Lou RossWichita, Kansas

Bill SanfordWilloughby, Ohio

Duane SaundersEden Prairie, Minnesota

Denise SchneiderHinsdale, Illinois

Rob SchneiderHinsdale, Illinois

Rhea SerpanDanville, California

Pat SerpanDanville, California

Shad ShadwickGreeley, Colorado

Jeannine ShadwickGreeley, Colorado

Jan ShawAshland, Kansas

William ShawAshland, Kansas

Connie SinkManhattan, Kansas

Roger SinkManhattan, Kansas

Bob SjogrenNewton, Kansas

Red SkeltonWichita, Kansas

Suzy SmithTopeka, Kansas

Bill SnyderManhattan, Kansas

John SnyderWest Des Moines, Iowa

Sharon SnyderManhattan, Kansas

Dean SpencerCouncil Grove, Kansas

Sharon SpencerCouncil Grove, Kansas

John StackGravois Mills, Missouri

P. J. Stamps-KitchenNashville, Tennessee

Susan StannardMission Woods, Kansas

Bill StannardMission Woods, Kansas

Amy Lou StephensonWichita, Kansas

Paul StephensonWichita, Kansas

Eleanor StolzerManhattan, Kansas

Bill StolzerManhattan, Kansas

Joe StoutCottonwood Falls, Kansas

Mary Lea StoutCottonwood Falls, Kansas

Veryl SwitzerManhattan, Kansas

Marilyn TaylorOverland Park, Kansas

Bill TaylorOverland Park, Kansas

John TeeterLenexa, Kansas

Patricia TeeterLenexa, Kansas

Jane ThiessenManhattan, Kansas

Richard ThiessenManhattan, Kansas

Bernita ThornTopeka, Kansas

Bob ThornTopeka, Kansas

Ann TiaoVoorhees, New Jersey

Joe TiaoManhattan, Kansas

Frank TillmanManhattan, Kansas

Betty TointonGreeley, Colorado

Mark TruittLeawood, Kansas

Greg TuckerSan Francisco, California

Donna VanierBrookville, Kansas

Jack VanierBrookville, Kansas

John Vanier IISalina, Kansas

Mary VanierManhattan, Kansas

Randy VautraversAndover, Kansas

Dennis von WaadenAustin, Texas

Sally von WaadenAustin, Texas

Edwin WambsganssLarkspur, Colorado

Eunice WambsganssLarkspur, Colorado

Byron WartaNewton, Kansas

Marjorie WartaNewton, Kansas

Dan WassenbergMarysville, Kansas

Jon WefaldManhattan, Kansas

Ruth Ann WefaldManhattan, Kansas

Loma WegererMoline, Illinois

Vernon WegererMoline, Illinois

Carol WeibertManhattan, Kansas

Warren WeibertManhattan, Kansas

Elizabeth WeigelKansas City, Missouri

David WeigelKansas City, Missouri

Darrell WesterveltManhattan, Kansas

Jane WestfallManhattan, Kansas

Douglas WeyerLake Dallas, Texas

Herb WhitneyHouston, Texas

Mary Sue WhitneyHouston, Texas

Brian WicksGeorgetown, Texas

Christine WicksGeorgetown, Texas

Cathy WielandColby, Kansas

Scott WielandColby, Kansas

Don Wilbur Jr.Paola, Kansas

Michael WildsManhattan, Kansas

Larry WilliamsHalstead, Kansas

Chuck Wilson Jr.Del Mar, California

Diane WolfingtonWichita, Kansas

Scot WolfingtonWichita, Kansas

Dave Woolfolk Jr.Manhattan, Kansas

Julia WoolfolkManhattan, Kansas

George YappBarrington Hills, Illinois

Gary YoungerWichita, Kansas

Sharon YoungerWichita, Kansas

Cheryl YunkManhattan, Kansas

Dan YunkManhattan, Kansas

Board of trustees asof June 30, 2007(continued)


$56.7 million transferred to theuniversityCharitable contributions help K-State develop new programs, provideopportunities for students and faculty, and enhance university life.In fiscal year 2007, the foundation transferred $56.7 million to theuniversity, a new record. The bulk of the $56.7 million transferred camefrom current year expendable contributions. The remainder came fromthe annual investment return on endowed funds established in prioryears.

$91.5 million committed by donors

In the same fiscal year, a total of $91.5 million was committed to thefoundation.

$51.7 million was received in outright gifts of cash, real estate orappreciated securities

+ $39.8 million was committed through pledges or deferred gifts(not yet available to distribute to the university)

$91.5 million in total gift activity

The $51.7 million received in outright gifts was designated in this way:

$18.8 million in endowed gifts (only investment return andearnings are available for distribution)

$2.5 million in trusts (not available for distribution until a later date)+ $30.4 million in expendable contributions

$51.7 million in outright gifts

Endowed gifts: Endowment additions were made to bothpermanently endowed and quasi-endowed funds. Gifts that aredesignated as permanent endowments are held in perpetuity. The giftis invested and a portion of the annual investment return is used tosupport the purpose specified by the donor. The portion of theinvestment return that is available to support the fund’s purpose isbased on the foundation’s distribution policy, which is set and reviewedannually by the executive committee. Quasi-endowed funds areinvested like a permanent endowment, but allow the university toutilize principal when needed.

Expendable gifts: Expendable funds are available immediately tothe designated college or department.

Trusts: In the case of trusts, donors make a contribution to thefoundation to establish a trust benefiting the donor. The donor receivesincome from the trust for a set period of years or for life. No moneyfrom the trust goes to the designated university purpose until the trustis terminated.

Supporting K-State today and in the future

A proper balance of endowments, expendable funds and trusts are vitalto the welfare of Kansas State University. A university is typicallyjudged by its endowment level as it represents the university’s long-term ability to offer scholarships, compensate staff and provideacademic support. Expendable funding provides dollars that areavailable today to make an immediate impact on furthering theuniversity’s goals. Trusts represent a future revenue stream for K-State.

Assets and endowments

Permanent endowments and other foundation assetsThis chart shows the foundation’s total assets, which topped$453 million in fiscal year 2007. The purple bars indicate the portion oftotal assets that are permanent endowments, the majority of which areheld in the endowment pool. This pool earned an investment return of19.32 percent in fiscal year 2007.

The blue bars represent temporarily restricted assets including donor-restricted expendable funds, quasi-endowed funds and unrestrictednet assets. The foundation building, university real estate fund andunderwriting funds for the foundation and the university are includedin unrestricted net assets.

Other foundation assets Permament endowments

$100

$200

$300

$400

$500

200720062005200420032002

$245.6$211.2$182.0$155.2$143.2

$151.2

$289.8

$163.4

$131.2$137.2

$124.1$126.6

$396.8

$453.2

$342.4$319.2

$279.3$269.8

Dollars in millions

InvestmentsThe diversified portfolio approach tomanaging the endowment pool assetscontinued to provide returns that outpaced acustom benchmark index of broad marketindices in the fiscal year 2007, by more than300 basis points. The investment committee,consisting of nine trustees with financialmarkets expertise, works with staff and aninvestment consultant in formulatinginvestment policy and, from that, anappropriate asset allocation. With thisguidance, staff manages the portfolio ofexternal managers and funds-of-funds.

In addition to ongoing portfolio and managerdue diligence issues, the following weremajor issues addressed by the investmentcommittee and staff during the fiscal year:

�Modification of the expendable pool assetallocation to better fit the portfoliostructure to the pool cash flow history.

� Initiation of an investment consultantreview through issuance of a request forproposals to investment consultingcandidates.

� Investigation of the pros and cons ofcreating an investment subsidiary of theKSU Foundation to manage theinvestment functions of the organizationand potentially other similar entities.

Endowment pool asset allocation

The endowment pool at June 30, 2007, had11 percent allocated to a deflation hedgestrategy comprised of high-quality fixedincome; 38 percent allocated to traditionalequity strategies, both domestic andinternational; 16 percent allocated to aninflation hedge strategy comprised of thoseassets which would cushion the portfoliofrom an unexpected rise in inflation, such asreal estate, commodities and energy;19 percent in hedge funds, both absolutereturn and long/short equity; and, 16 percentin private capital, consisting of private equity,distressed debt and venture capital.

Endowment pool returns

Endowment returns at fiscal year-end were:19.3 percent, 15.5 percent, 12.9 percent and9.3 percent for one-, three-, five- and 10-yearperiods respectively. The absolute returnobjective of equaling distributions plusexpenses plus inflation was exceeded by0.2 percent over a 10-year period. Meeting orexceeding the absolute return objective is ameasure of how well the endowment isattaining intergenerational equity, thebalancing of current and future distributionsfrom the endowment.

Performance data is updated on theinvestments portion of the KSU FoundationWeb site approximately six weeks after theend of each quarter; policies are updated aschanges occur. See www.found.ksu.edu/investments.

Endowment poolRelative objectiveAbsolute objective

The relative objective of the endowment is to seekcompetitive investment performance compared toappropriate capital market measures, such as securitiesindices.

The absolute objective of the endowment is to seek anaverage total annual real return equal to or exceedingthe distribution policy rate; specifically the CPI plus thedistribution policy rate. This objective shall be measuredover annualized, rolling 10-year time periods. The intentof this objective is to preserve, over time, the principalvalue of assets as measured in real, inflation adjustedterms.

Endowment pool performance analysis (as of June 30, 2007)

Endowment pool asset allocationTraditional equity 38% _______________________

(domestic and international)

Hedge funds 19% ______________________________________

Private capital 16% ______________________

Inflation hedge 16% _________________________________(real estate, commodities, energy)

Deflation hedge 11% _________________________(fixed income)

5%

10%

15%

20%

10-year5-year3-year1-year

19.3%16% 15.5%

13% 12.9%11.2%

9.3% 8.5% 9.1%


Kansas State University FoundationManhattan, Kansas

Consolidated Statements of Financial PositionFor the year ended June 30,

ASSETS 2007 2006Cash and cash equivalents $24,982,670 $32,494,121Short-term investments and certificates of deposit 2,690,000 3,586,032Equity investments 168,099,963 133,481,062

Book value — $118,099,386 at June 30, 2007Book value — $107,438,473 at June 30, 2006

Corporate and other fixed income 47,331,325 51,920,421Book value — $46,195,920 at June 30, 2007Book value — $51,999,183 at June 30, 2006

U.S. Government and government agency obligations 1,348,291 1,352,295Book value — $1,334,193 at June 30, 2007Book value — $1,334,193 at June 30, 2006

Real estate investments 33,448,863 27,930,245Book value — $28,934,694 at June 30, 2007Book value — $26,218,166 at June 30, 2006

Alternative strategies 134,580,977 103,567,410Book value — $115,595,893 at June 30, 2007Book value — $97,773,642 at June 30, 2006

Other securities and investments 380,242 340,995Book value — $277,338 at June 30, 2007Book value — $283,721 at June 30, 2006

Pledges receivable, net 13,405,563 13,422,606Receivables from estates 5,630,970 6,750,111Loans receivable 1,839,336 710,861Real estate and other depreciable property 18,031,197 19,903,983

Accumulated depreciation (4,216,461) (3,853,002)Net real estate and other depreciable property — Golf course 1,767,223 1,745,980Cash surrender value of life insurance policies 3,119,776 2,756,425Other assets and accrued income 763,683 722,515TOTAL ASSETS $453,203,618 $396,832,060

LIABILITIES AND NET ASSETSCurrent liabilities

Accounts payable, deposits and other liabilities $1,890,309 $720,895Accrued liabilities 1,376,924 1,211,876Assets held for others 8,327,441 6,172,878Current obligations, unitrust and annuity liabilities 2,682,248 2,492,663Current portion of note, mortgage and bond payable 1,081,710 459,144

Total current liabilities $15,358,632 $11,057,456Other liabilities

Unitrust and annuity liabilities, less current obligation $22,013,970 $19,927,549Note payable — Nanoscale, less current portion 1,669,890 1,753,081Note payable — Printing Services, less current portion – 638,882Mortgage payable — Golf course, less current portion 1,052,568 1,367,205Line of credit — Golf course 1,101,747 1,191,008Bonds payable — Educational and Agricultural Research Facility Rev Bonds,

less current portion 500,000 545,000Total other liabilities $26,338,175 $25,422,725

TOTAL LIABILITIES $41,696,807 $36,480,181Net assets

Unrestricted net assets (designated) $35,489,312 $31,590,034Temporarily restricted net assets 86,178,444 83,156,464Permanently restricted net assets 289,839,055 245,605,381

Total net assets $411,506,811 $360,351,879TOTAL LIABILITIES AND NET ASSETS $453,203,618 $396,832,060

Kansas State University FoundationManhattan, Kansas

Consolidated Statement of ActivitiesFor the year ended June 30,

REVENUES, GAINS Temporarily PermanentlyAND OTHER SUPPORT Unrestricted Restricted Restricted 2007 Total 2006 Total

Contributions $1,875,928 $34,819,920 $12,301,368 $48,997,216 $64,460,609Investment income 976,431 12,605,669 178,528 13,760,628 12,313,561Net realized and unrealized gains onasset transactions 15,625,314 4,267,076 32,928,387 52,820,777 27,869,173Other support

Operational service charges, management fees and other 3,424,257 – – 3,424,257 3,387,251Receipts for grants, research, supplies, travel and other university departmental activities and funding allotments, etc. (4,900) 6,449,448 6,720 6,451,268 4,744,822Actuarial gain/(loss) on unitrustsand annuities obligations (555,465) (4,142,864) (809,729) (5,508,058) (1,637,678)

Net assets released from restrictions (2,672,219) 3,043,819 (371,600) – –Satisfaction of program restrictions 54,021,088 (54,021,088) – – –

Total revenues, gains and other support $72,690,434 $3,021,980 $44,233,674 $119,946,088 $111,137,738

EXPENSES AND SUPPORTDirect university support

Scholarships and other student awards $10,962,142 – – $10,962,142 $8,731,925Academic 6,058,132 – – 6,058,132 7,390,198Administrative — faculty and student support 27,064,155 – – 27,064,155 22,092,443

Capital improvements 12,657,664 – – 12,657,664 8,946,080

Subtotal $56,742,093 – – $56,742,093 $47,160,646

Investment — portfolio management 2,557,011 – – 2,557,011 2,345,811Investment — loan interest expense and write-off 269,948 – – 269,948 389,919KSUF administration 3,540,688 – – 3,540,688 3,065,805KSUF fundraising 5,681,416 – – 5,681,416 5,561,781

Total expenses and support $68,791,156 – – $68,791,156 $58,523,962

CHANGE IN NET ASSETS $3,899,278 $3,021,980 $44,233,674 $51,154,932 $52,613,776

NET ASSETS AT BEGINNING OF YEAR 31,590,034 83,156,464 245,605,381 360,351,879 307,609,126

ADJUSTMENT TO NET ASSETS (KSUGCMRF Quasi Reorganization) – – – – 128,977NET ASSETS AT END OF YEAR $35,489,312 $86,178,444 $289,839,055 $411,506,811 $360,351,879

The Consolidated Statements of Financial Position and the Consolidated Statements of Activities are excerpted from the KansasState University Foundation’s 2007 financial statements, which were audited by Varney and Associates, CPAs, LLC. For a completecopy, please view online at www.found.ksu.edu or send a request to Controller, KSU Foundation, 2323 Anderson Ave. Ste. 500,Manhattan, KS 66502-2911.

2007 Campaign Progress & Annual Report 28

K-State Proud

For the first time in K-State history, students initiated their veryown philanthropic campaign. Guided by the leadership ofStudent Foundation, the campaign brought student leaders fromacross campus together to promote philanthropy at K-State.Raising more than $62,000 for their fellow students, the studentbody celebrated the campaign’s success at the Big Mondaybasketball game on Feb. 19, 2007.

2007 Campaign Progress and Annual Report produced by the KSU Foundation’sDepartment of Communications. Photographs: J&C Imaging/John La Barge,KSU Photographic Services/Dan Donnert, KSU Foundation/Joe Montgomery,The Mojo Dojo/Brandon Greene, Terry C. Johnson Center for Basic CancerResearch.

KSU Foundation Center2323 Anderson Avenue, Suite 500Manhattan, Kansas 66502-2911785-532-6266 • 800-432-1578

www.found.ksu.edu

Changing Lives

ksu foundation annual report 2007

Documents

state memory

state education

state studentsand faculty

state proud pep rally

fellow students

future students theopportunity

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