The Baruch College Fund2008-2009 AnnUAl REPORT

The past fiscal year was a year of volatility and accomplishments. Beginning in the latter part of 2008, college endowments across the country declined as the nation experienced one of the worst economic downturns in decades. Colleges closely examined, re-evaluated, and repositioned their investment models and strategies. I am pleased to state that Baruch College, with the help of The Baruch College Fund, was able to navigate through this turbulent period of economic uncertainty, while remaining strong in both program and mission, and continuing to achieve national recognition.

Baruch College remained in the top 15 percent of colleges in the country selected by the Princeton Review and was also named among the best colleges in the nation by Forbes Magazine and US News & World Report. The Baruch College Master’s degree program in Financial Engineering was ranked among the top ten in the 2009 QuantNetwork Ranking of Financial Engineering/Mathematical Finance MS Programs in North America. Finally, out

of 2,300 schools surveyed by Entrepreneurship magazine and The Princeton Review, the Baruch College undergraduate program in entrepreneurship has been ranked ninth in the nation. These are just a few of the numerous accolades and recognitions received by Baruch College this past year.

As President of The Baruch College Fund, the supporting foundation for Baruch College, it is a privilege to present our Annual Report for 2008-2009. You will read that the College’s endowment managed to come away with a loss of 15.7% compared to the nation’s average of nearly 19%. It is reassuring to know that our allocation process and choices for selecting Baruch’s asset managers have so far proven to be an excellent balance through difficult times.

Our 20th Annual Bernard Baruch Dinner was capped off with the public launch of the most ambitious fundraising campaign in Baruch College history: Baruch Means Business. It is a $150 million campaign to support the College’s mission of providing an affordable pathway to success for bright and deserving students. I am delighted to report that the Campaign has raised more than $100 million to date, two-thirds of our goal—just halfway through the campaign.

To further its mission and reach new heights of excellence, the College has embarked on a strategic initiative to develop three critical priorities: Academic Excellence, Diversity and Leadership; Professional and Executive Education; and Campus Expansion. A small working group, co-chaired by a joint College and BCF leadership team, along with key campus leaders and faculty, has been established to work on further developing each of the three strategic priorities.

On behalf of the Baruch College Fund, I would like to take this opportunity to thank you for your dedication and unwavering support. During this time of economic uncertainty, with declining federal and state funding, private support has a tremendous impact on the College. I invite you to visit www.baruch.cuny.edu/campaign to see the outpouring of support for Baruch College and hope you join its growing list of supporters.

LAWRENCE J. SIMON ’65

Letter from the BCf PreSIDeNt

ANNuAL rePort 2008-2009 | 1

Prudent Investments KEEP BCF AhEAd OF ThE FIEld

there was bad news across the board for college endowments in the fiscal year ending in June 2009. the Baruch College Fund (BCF) posted a 15.7 percent drop in the value of its endowments for that time.

As disappointing as that may have been, it could have been worse. In fact, many of the nation’s wealthiest institutions posted heftier declines than Baruch. Harvard, Yale, and Brown all reported losses of more than 20 percent, according to results released by The Chronicle of Higher Education. A study of 842 institutions by the National Association of College and University Business Officers and Commonfund found that in the last fiscal year university endowments lost an average of 18.7 percent, the worst returns since the Great Depression.

BCF endowment funds performed well compared to another significant benchmark: for FY2009, there was a 27.4 percent drop in Standard & Poor’s 500 index. Despite its own losses, the BCF’s endowments still outperformed those of many other institutions because of the BCF’s well-planned response to the fiscal challenges that everyone faced, according to BCF Board Member and past Investment Committee Chairman Stuart Shikiar (’68). “We added some alternative investments and engaged the

‘who’s who’ in different categories of expertise to help us reach our goals,” he said. One of the prime goals was to provide financial assistance to deserving students. Even in the face of endowment decline, the BCF was able to allocate nearly $1.7 million for student scholarships, allowing the College to attract and retain top students.

how the CoLLege IS fuNDeD

2 | ANNuAL rePort 2008-2009

Building off the remarkable growth of the Baruch College Fund over the past decade, the College is primed to embark and successfully complete this campaign, which is critical to the future of Baruch College.

Since the announcement was made at the 20th Bernard Baruch Dinner last April, the Campaign has raised more than $100 million. At just the halfway point of this effort, the campaign had reached two-thirds of the goal. The success of this effort will ensure that students of tomorrow continue to have the same quality education and opportunity as the Baruch students of the past.

Integral to the effort of aiding our students is the direction of the Baruch College leadership. Dr. Stan Altman was named interim president

of Baruch College in August, 2009. His areas of expertise and interest include strategic planning, improving productivity of public services, nonprofit management, health policy, and social entrepreneurship. Under President Altman’s leadership, the College has embarked on an initiative to unlock critical strategic priorities: Academic Excellence, Diversity and Leadership; Professional and Executive Education; and Campus Expansion. Three working groups, comprised of key campus leaders, BCF Trustees, College faculty and staff, have met over a three-month period to create plans that allow the College to move forward in these areas.

We look forward to keeping you updated on these efforts and invite you to visit:

www.baruch.cuny.edu/campaign/.

in 2009 Baruch College publicly announced the largest campaign in its history: Baruch Means Business–Reaching New Heights of Excellence. the goal of this campaign is to raise $150 million to fund several key priorities of the College.

CAMPAIgn On TRACK TO REACh gOAl

ANNuAL rePort 2008-2009 | 3

CAmPAIgN an organized course of action

to achieve a particular goal.

$100 Million

$85 Million

$50 Million

$150 Million

The generosity of Annual Fund and 17 lex Society donors provided many benefits to students, faculty, and the College as a whole.

Follow the fuNDS

the william and Anita Newman vertical Campus

ANNuAL rePort 2008-2009 | 5

Scholarship $1.4 million in scholarships help more than 625 students cover the cost of tuition and fees

faculty 32 new faculty members from such prestigious institutions as

UC Berkeley, University of Chicago, Harvard, Yale, Columbia, and the University of Pennsylvania

Student Life Baruch is home to more than 170 student-run organizations

thanks to the support of Annual Fund donors

Starr CDC The Star Career Development Center accomplishments: 110 Career Preparation Workshops

1,807 Resumes Critiqued; 3,329 One-on-One Career Consultations

151 employers met with 1,570 students during Career Days and Internship Fairs

1,300 student-reported internships

Arts

More than 6,500 students interacted with theatre professionals, string quartets, and

orchestras through the Student Outreach Program, helping students think critically and creatively

Athletics More than 200 students participated on our 16 sports teams

6 | ANNuAL rePort 2008-2009

dOnORS STEP UP In hARd TIMES

it is no secret that 2009 was not a good year for the global economy. College endowments were hit particularly hard, and the Baruch College Fund was no exception. By the end of June 2009, one third of the BCF’s endowment accounts (over 70 funds) were “underwater,” meaning they had a market value of less

than their book value. New York State law prohibits spending from “underwater” funds.

Funds that the College and its stu-dents and faculty were expecting and counting on were no longer available. Faced with the potential loss of millions of dollars for schol-arships, faculty chairs, career devel-opment services and department and program support funds, the BCF turned to a great resource: our loyal donors. Our donors im-mediately recognized the critical need and sprung into action in an effort to mitigate this potentially devastating loss of funds. Within months, all but a handful of en-dowment fund donors made spe-cial gifts, above and beyond what they had planned or pledged, to alleviate the shortfall—or granted permission to temporarily invade endowment principal.

uNDerwAter ACCouNtSendowed funds supporting scholarships, faculty and programs which lost value in the stock market crash and were unavailable for spending.

“My wife and I have provided for two full scholarships to be paid annually from our endowment,” says Sol Freedman ’49. “This year when we learned the reduced in-come due to market fall meant the current full scholarships would not be available to students, we didn’t think twice and made a gift to cov-er the shortfall.” A similar gesture was made by the men of Saxe ’55 House Plan who provided addi-tional funds to ensure a deserving

student did not lose her scholarship in her senior year.

The full result of donor generosity? Nearly two million dollars is avail-able in the College’s FY10 budget that wouldn’t have been without the generous intervention of so many friends of Baruch College.

ANNuAL rePort 2008-2009 | 7

LegACy gIvINgproviding future support for

the Baruch College Fund via

bequest, a trust, endowment or

life income arrangement.

lEgACy gIVIng REAChES nEw hEIghTS In 2009

the impact of legacy gifts to the Baruch College Fund continues to grow, culminating in the largest influx of such contributions in the Fund’s history in Fiscal Year 2009. the BCF benefited from more than $2.2 million

in realized planned gifts last year. These funds resulted from maturing trusts and bequests which provided for scholarships, unrestricted support, and programs for students interested in pursuing careers in the arts. Donors who provide for Baruch College in their wills—or establish trusts

or annuities that provide income for life to the donor and benefit Baruch College upon the donor’s death—become a critical source of support for our students, faculty, and facilities. The chart shows a more than 100-fold increase in legacy giving from 2005 to 2009.

$270

,274

$70,

044

$1,0

00

$431

,611

$2,2

05,1

20

2005 2006 2007 2008 2009

8 | ANNuAL rePort 2008-2009

2009 TOTAl Temporarily Permanently ASSETS Unrestricted 2009 2008

Cash & cash equivalents $ 2,721,155 — — $ 2,721,155 $ 691,085

Contributions receivable 3,547,675 11,270,659 8,545,382 23,363,716 26,903,530

Investments (360,025) 14,436,727 71,140,660 85,217,362 104,009,157

annuity interest — 2,034,108 — 2,034,108 5,168,495

Beneficial interest in remainder trust — 4,583,152 — 4,583,152 4,583,152

prepaid expenses 583,288 — — 583,288 72,647

artwork 1,324,848 — — 1,324,848 1,324,848

TOTAl ASSETS $7,816,941 $32,324,646 $79,686,042 $119,827,629 $142,752,914

lIABIlITIES And nET ASSETS

lIaBIlITIes:

accrued expenses $1,010,762 — — $1,010,762 $398,455

deferred revenue — — — — 50,000

annuity payable — 1,302,725 — 1,302,725 2,141,677

Total liabilities 1,010,762 1,302,725 — 2,313,487 2,590,132

neT asseTs:

unrestricted 6,806,179 — — 6,806,179 8,983,982

Temporarily restricted — 31,021,921 — 31,021,921 59,285,667

permanently restricted — — 79,686,042 79,686,042 71,893,133

Total net assets 6,806,179 31,021,921 79,686,042 117,514,142 140,162,782

TOTAl lIABIlITIES and FUnd BAlAnCE $7,816,941 $32,324,646 $79,686,042 $119,827,629 $142,752,914

The Baruch College FundStatement of Financial Position — June 30, 2009 with comparative totals for 2008 (restated)

$78,559

$102,369

$134,774 $142,752

$119,827

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

FY 2004 FY 2006 FY 2007 FY 2008 FY 2009

Baruch college Fund growth in assets ($000’s)

tota

l a

sse

ts

ANNuAL rePort 2008-2009 | 9

2009 TOTAl Temporarily Permanently Unrestricted Restricted Restricted 2009 2008

Revenue and suppoRT:

Contributions income 1,877,114 3,943,705 2,790,599 8,611,418 $22,573,125

net Investment income (340,757) (15,503,979) — (15,844,736) 5,013

special events, net of direct benefit to donors of $116,793 and $123,130 in 2009 and 2008, respectively 872,764 — — 872,764 889,983

Change in value of split interest agreements — (487,770) — (487,770) (471,198)

donated space — — — — 29,427

2,409,121 (12,048,044) 2,790,599 (6,848,324) 23,026,350

net assets released from restrictions 9,541,486 (9,541,486) — — —

TOTAl REVEnUE 11,950,607 (21,589,530) 2,790,599 (6,848,324) 23,026,350

expenses:

program services:

scholarships and awards 1,689,879 — — 1,689,879 1,689,879

Grant expenses to and for Baruch College of the City university of new York 11,036,886 — — 11,036,886 11,036,886

Total program services 12,726,765 — — 12,726,765 12,726,765

supporting services:

Management and General 657,135 — — 657,135 595,147

Fundraising 2,416,416 — — 2,416,416 2,760,569

ToTal suppoRTInG seRvICes 3,073,551 — — 3,073,551 3,355,716

ToTal expendITuRe 15,800,316 — — 15,800,316 16,082,481

Change in net assets (3,849,709) (21,589,530) 2,790,599 (22,648,640) 7,647,072

net assets — beginning of the year 10,655,888 52,611,451 76,895,443 140,162,782 132,515,710

EndIng FUnd BAlAnCE $6,806,179 $31,021,921 $79,686,042 $117,514,142 $140,162,782

The Baruch College FundStatement of Activities — Year ended June 30, 2009 with comparative totals for 2008 (restated)

Interim President, Baruch College

Stan Altman

Vice President for

College Advancement

Mark Gibbel

The Baruch College Fund

OFFICERS

Lawrence J. Simon ’65 PresidentArthur S. Ainsberg ’68, MBA ’72Max W. Berger ’68Charles R. Dreifus ’66, MBA ’73Irwin Engelman ’55, LLD (Hon.) ’00Martin E. Kaplan ’59Dov C. Schlein ’70, MBA ’75Lawrence Zicklin ’57, LHD (Hon.) ’99Vice PresidentsLuz D. Liebeskind ’85 TreasurerBarbara N. Kent ’59 Secretary

TRUSTEES

William H. AbramsNathan Adler ’60William F. Aldinger, III ’69, LHD (Hon.) ’05Martin V. Alonzo ’52, MBA ’71Marvin Antonowsky ’49, MBA ’52Walter H. Barandiaran ’79Jeffrey E. Bauml ’75Kevin J. Boyle MBA ’90Daniel Clivner ’85Eileen R. Cohen MBA ’82Irwin R. Ettinger ’58Nadja Fidelia ’02Lawrence N. Field ’52, DCS (Hon.) ’04John G. Grifonetti ’90William F. Harnisch ’68Joanne M. Hvala MBA ’88Peter S. Jonas ’60Paul M. Koren ’55, MBA ’66David Krell MBA ’71

Marilyn E. LaMarche-Mandell ’55Bernard L. Laterman ’52Joseph M. Leone ’75Herbert I. Levitt ’67Ryan E. Meltzer ’07Richard S. Merians ’55William Newman ’47, LLD (Hon.) ’97Ana Pazo ’05Joseph S. Pignatelli, Jr. MS ’99M. Freddie Reiss ’67, MBA ’00Stan Ross ’56, LLD (Hon.) ’99Michael I. Roth ’67JoAnn F. Ryan ’79, MS ’83Robert H. Schnell ’61Bernard L. Schwartz ’48Martin D. Shafiroff ’63Stuart A. Shikiar ’68Leon V. Shivamber ’84Darren Smith ’08Stuart Subotnick ’62, LLD (Hon.) ’97Sandra K. Wasserman ’55Alicia B. Zanelli ’82, Ex-Officio

TRUSTEE EMERITI

Victor B. Besso ’47 *Abraham J. Briloff ’37, MSE ’41Robert A. Friedman MBA ’67Morton E. Kaner ’50Burton Kossoff ’46 *Eli Mason ’40, LHD (Hon.) ’78*Bert N. Mitchell ’63, MBA ’68, LLD (Hon.) ’88Bernard K. Richards ’49Aaron Shapiro ’49, LHD (Hon.) ’89Carl Spielvogel ’52, LLD (Hon.) ’84Bert Wasserman ’54 *George Weissman ’39, LLD (Hon.) ’82*

*deceased

The Baruch College Fund Members (2008-2009)Members of The Baruch College Fund generously give their time to expand the fund’s size and reach.