Foundation President's Report

The integrity of our Foundation membership (375 strong) and its board of directors' oversight of the sound management of your private finds have positioned the Foundation to deal with these difficult times.  Hopefully, we will be on the road to full recovery by our Centennial in 2011.


East Tennessee State University received $13.2 million in private annual giving during 2007-2008 from alumni and friends.  This includes $8.4 million contributed to the ETSU Foundation, which includes $2 million in planned gifts and $4.8 million from private gifts and contracts by the university faculty and staff.  Thanks to our alumni, friends, public-private partnerships, and our faculty and staff, who continue to enrich the “Margin of Excellence,” ETSU is able to benefit our students and the people of our region through quality teaching, research, and service.


The value of the university’s and Foundation’s 386 endowments, including the Chairs of Excellence, decreased from $77.3 million to $75 million for a total decrease of $2.3 million.  This is a decrease of over 2 percent in the value of endowments for the year.  These endowments have increased $37.7 million in the past five years.  This is a 64.9 percent increase in endowments within this five-year period.  The Foundation’s endowments, including the Chairs of Excellence, decreased from $77.2 million to $75 million for a total decrease of $2.2 million, resulting in a decrease of 3 percent for 2007-2008.  This is a 77 percent increase in the Foundation’s endowments within this five-year period.  These endowments support the Foundation’s and the University’s fundraising mission to support scholarships and educational enhancements for our students, faculty and staff.


Scholarships in the amount of $1,386,493 were awarded by the ETSU Foundation during 2007-2008 to over 516 students throughout the region, country, and world who chose to pursue their educations at ETSU.  The Foundation and its donors have provided more than $5.1 million in scholarships to deserving students within the past five years.

Three years after the announcement of the Reaching Higher capital campaign, private giving exceeds $63.9 million.  This is 39 percent of the private fundraising goal of $164 million.  The campaign encompasses “an evolving list of projects” reflecting the direction of the university as it creates new programs and opportunities to meet the needs of our students and the entire region.  This $224 million campaign (including $60 million of unrealized public funding) focuses on quality education, endowment growth, health sciences, athletics, and a major emphasis on new facilities.  With thirteen projects completed or in process, this unprecedented effort has been and will continue to be a major force for economic development of this region.


The Foundation investment rate of return for 2007-2008 was -0.6 percent.  This is the result of our investment committee’s conservative policy and management philosophy, which provides a stable financial environment in very difficult economic times.


The Foundation approved the investment income distribution and reserve policy for fiscal year 2007-2008 at its annual meeting.  This policy increased the spending rate from 4 percent to 5 percent of the average quarterly market value for the three previous calendar years for distribution.  The 5 percent payout exceeds the national average payout rate of 4.5 percent.  Each endowment accumulates a 20 percent reserve, and all remaining earnings become a permanent increase to the endowment’s corpus. 


ETSU continues to be a leader in private giving among colleges and universities in the Tennessee Board of Regents (TBR) system.  The TBR’s goal for private giving among four-year colleges and universities is 5 percent of an institution’s budgeted Educational and General Expenditures (E&G).  This year ETSU’s private giving compared to E&G is 10.58 percent, compared to the four-year colleges’ and universities’ average of 7.37 percent and system wide average of 7.35 percent.  Over the past five years ETSU private giving compared to E&G has exceeded 8.62 percent compared to the four-year colleges’ and universities’ average of 6.5 percent.  The TBR is the sixth largest higher education system in the nation.


During 2006-2007, ETSU Intercollegiate Athletics received $721,475 in charitable donations to support student-athlete scholarships, programs and facilities.


C.M. “Bill” Gatton was the recipient of the ETSU Foundation “Margin of Excellence” Award.  This award is the highest honor bestowed upon an individual by the Foundation.  The ETSU “Margin of Excellence” Award, established in 2002, recognizes individuals who have gone above and beyond the call of supporting the Foundation by exhibiting a strong commitment to helping ETSU become the best regional institution in the country for its faculty, staff, and students.  In addition to financial support, recipients exhibit loyalty for every aspect of supporting the mission of East Tennessee State University and the ETSU Foundation.


This year, the ETSU Foundation established the Tim P. Jones Honors Scholarship Endowment, honoring the outgoing Chairman.  During Mr. Jones’ four-year tenure as Chairman, over $53.1 million was raised by the ETSU Foundation.  This included over $23 million for endowments of which $18 million was for endowed scholarships, and over $5 million for other “Margin of Excellence” endowments.


The ETSU College of Pharmacy is beginning the interview process for its third class of pharmacy students.  With 144 total students and 11 new faculty members, the College is growing at a rapid rate.  The Fred D. Brumit Pharmacy Scholars program has been established through the Fred D. Brumit Scholarship Endowment with more than $500,000 from the sale of the late Mr. Brumit’s farm in Limestone, Tennessee.  Mr. Brumit was an ETSU alumnus, Class of 1950, who included the ETSU Foundation in his estate plan.  Deserving pharmacy students will be awarded scholarships based on their commitment to their profession and their financial need.  The College of Pharmacy’s permanent home, Building 7 on the VA campus, is the result of the transformation of a 100-year old building into a modern College of Pharmacy with historic appeal.  The target date to open the new facility is the summer of 2008, just in time to welcome the Class of 2012.  Total fundraising for the College of Pharmacy has exceeded $8 million from more than 1,000 donors, and the second phase of the $16 million campaign has begun with a focus on the college’s research initiative.


The ETSU and General Shale Brick Natural History Museum and Visitor Center was named by the Tennessee Board of Regents at the March 2007 quarterly meeting in recognition of General Shale Brick’s outstanding philanthropy to make the development of the Gray Fossil Site possible.  Other donors who have been recognized with namings to date at the Site include the Wayne G. Basler Exhibit Hall, the Scott M. Niswonger Exhibit Hall, the Eastman Credit Union Multi-Media Classroom, and the AG North America Flat Glass Atrium Balcony.  Additionally, the Center for Excellence on site is named the “Don Sundquist Center for Excellence in Paleontology.” Former Tennessee Governor Sundquist’s pioneering and steadfast leadership was instrumental in the development of the Gray Fossil Site for the educational, scientific, and economic benefits after the Miocene-era fossils at the site were discovered in 2000 by road crews from the Tennessee Department of Transportation.


The ETSU PRIDE Walk dedication on October 20, 2007, is the ETSU Foundation’s second gift toward ETSU’s Centennial celebration in 2011.  The ETSU PRIDE Walk features over sixteen hundred bricks, inscribed and donated by alumni, friends, students, faculty and staff members.  Spanning the space between Gilbreath Hall and the ETSU Foundation Carillon, it includes a floating granite globe sculpture, restored vintage fountain, and the original globes atop brick columns.  One globe holds the 75th anniversary time capsule embedded inside the column.  The 75th  anniversary time capsule will be opened during the 100th anniversary and a centennial time capsule will be installed in the brick column.  The ETSU PRIDE Walk provides all visitors a glimpse of the 100 year history of what is now East Tennessee State University and its growth from a Normal School to the university of today.


The George L. Carter Museum, which portrays this region’s historic ties to railroads by featuring active displays of model trains, officially opened on November 17, 2007.


The museum is named after the late George L. Carter, a turn-of-the-20th century coal and railroad magnate. His gift of farm land provided the initial guarantee to form what is now called East Tennessee State University. Through the hard work and generous contributions of the Mountain Empire Modular Railroaders, under the direction of Fred Alsop, Marian Bankus of Houston and Tom McKee of Johnson City, this project will provide a constant reminder of the importance that the railroads and George L. Carter have had on this region.


WETS-FM, the university’s public radio station, in partnership with listeners around the region and world, raised over $344,000 in private support during 2006-2007 to support the diverse programming offered by the station.  Within the past five years, WETS-FM contributions have exceeded $1.7 million for this outstanding service to our region and beyond.


The James H. Quillen Margin of Excellence Scholarship Endowment balance is in excess of $16.9 million.  The Quillen gift is the largest contribution ever received from an individual by ETSU.  For 2008-2009, the endowment will provide 72 academic scholarships and 72 medical scholarships for a total of 144 scholarships per year at $4,000 each or the equivalent of $576,000 annually.  Quillen Scholarships have been awarded to 213 students for a total of $886,000 within the past three years.


Forty-nine new members were welcomed by ETSU President Stanton and ETSU Foundation Chairman of the Board, Tim P. Jones, to the ETSU’s Distinguished President’s Trust (DPT) during a formal dinner held at MeadowView Conference Resort and Convention Center on February 9, 2007.  The DPT is made up of individuals and businesses that have contributions to the university of $10,000 or more.  Additionally, the Foundation recognizes new members of the DPT Wall of Honor representing cumulative giving of $50,000 or more.  Among these were two new Platinum Society ($1 million in cumulative giving) members: Mr. C. M. “Bill” Gatton and Drs. Jack and Diane Nelson.  The Platinum Society, Level II (cumulative giving at $2 million) recognized Mr. Wayne G. Basler for his giving at this level.  The Gold Society ($500,000 in cumulative giving) recognized General Shale Brick as a new member, represented by Richard L. Green.  Silver Society (cumulative giving exceeding $100,000) new members were also recognized:  Atmos Energy Corporation, Dr. Ronald and Mrs. Edith Carrier, Clyce Distributing Company, Health Alliance PHO, Henry and Flora Joy, In Memory of Dorothy K. Parker, Newt and Carmen Raff, Virginia Association of Surveyors, and Dr. Michael and Mrs. Judith Woodruff.   New members at the Bronze Society with cumulative giving of more than $50,000 were recognized:  Earl B. Bolling Scholarship Trust, Citi Cards, Food City, Dr. Larry and Mrs. Carol Graham, Steve and Ashley Grindstaff, Dr. Bob Patton, Bob and Carol Plummer, Ben and Helen Siler, and Margaret Vorous.


In 2006-07, Tennessee Board of Regents presented the Regents Award for Excellence in Philanthropy to a longtime contributing corporate partner and bestowed the Chancellor’s Award for Excellence in Philanthropy honoring two distinguished ETSU faculty benefactors. At the TBR quarterly board meeting in September, TRB representatives presented the Regents Award for Excellence in Philanthropy to Mountain States Health Alliance in recognition of MSHA’s devotion to and generous support of East Tennessee State University.  Mr. Dennis Vonderfecht, MSHA President and CEO, accepted the award for the corporation. Chancellor Manning was on hand at the DPT dinner in February to present the Chancellor’s Award for Excellence in Philanthropy to honor  Dr. May Louise Votaw and her late husband, Dr. Charles L. Votaw, who passed away on January 5, 2007. The Votaws have been associated with the ETSU James H. Quillen College of Medicine since its earliest days and were honored as a special couple in the medical community for their selfless generosity to East Tennessee State University and the Foundation.


The East Tennessee State University Alumni Association announced the 2007 recipients of the annual Alumni Awards, which were presented as part of the university’s spring commencement weekend festivities during the association’s Awards Banquet and Annual Meeting on May 5. The 2007 Outstanding Alumna is Anne Mooneyhan Utter (B.S. ’65). The 2007 Outstanding Alumnus is Olan O. Jones Jr. (B.S. ’75, M.B.A. ’77); Award of Honor Recipients are Kenneth W. Bates (B.S. ’79), Connie D. Hauser (B.S. ’71), Derrick J. Hollie (B.S. ’89),and Charles O. Steagall (B.S. ’66); Honorary Alumni are Thomas J. Burleson, C.M. “Bill” Gatton, Dr. Janice C. Shelton, Nancy B. Stanton, and Guy B. Wilson, Jr.; and the Distinguished Alumni in Education was awarded to Dr. William W. Locke (B.S.’66, M.A. ’68, Ed.D. ’76) and Dr. Wade B. McCamey (B.S. ’68, M.A. ’72, Ed.D. ’76).


The ETSU Foundation provides $38,000 each year for Faculty and Staff awards throughout the university.  The award recipients within this program are nominated and selected by their faculty and staff peers.  Teaching, research, and service pinnacle award recipients receive a medallion, a plaque, and a $5,000 check from the ETSU Foundation at the annual Faculty Convocation.  Dr. Robert Schoborg, associate professor of microbiology at the James H. Quillen College of Medicine, received the Distinguished Faculty Award in Teaching.  Schoborg is director of the medical microbiology course for medical students and teaches in the Biomedical Sciences Graduate Program (BSGP).  Dr. Jeff Ardell, associate chair/professor of Pharmacology at the Quillen College of Medicine, claimed the Distinguished Faculty Award in Research.  A neurocardiology researcher, Ardell joined the ETSU faculty in 1998 and is currently the investigator or co-investigator for six extramural grants funded amounting to $1.73 million by the NIH, the American Heart Association and the Canada Institutes of Health Research.  Dr. Peggy Cantrell, a professor in the Department of Psychology within ETSU’s College of Arts and Sciences and a practicing clinical psychologist, received the Distinguished Faculty Award in Service.  Since joining ETSU in 1982, she has consistently provided high levels of service to the university, the surrounding community, and her profession.


The Distinguished Staff Award recipients were Dr. Sally Lee, associate vice president for Student Affairs, in the Administrative and Managerial category; Charlie Forrester, director of Campus ID Services in the Professional Non-Faculty category; Jamie Simmons, shipping and receiving clerk, in the Clerical and Secretarial category; Steve Greenwell, electronics technician, in the Technical and Paraprofessional category; Sammy McCray, electrician, in the Skilled Crafts category; and Alma “Shirl” Davis, Custodial Services, in the Service/Maintenance category.  The Career Award was given to Mary Alice Whiteside of Custodial Services.


The prestigious Roan Scholars Leadership Program continues to grow impressively with donors’ support, as well as the outstanding quality of our graduates from the Roan experience.  The fourth class of Roan Scholars graduated this year.  Currently there are fourteen scholars enrolled in the program.  Roan Scholars are selected each year from a highly competitive selection process for high school seniors who are nominated by their high school administrators based on the nominees’ leadership, character, intellectual curiosity, and physical vigor.  Selection panels of distinguished regional leaders interview the nominees.  The Roan Scholarship Endowment in the ETSU Foundation has now surpassed $6 million in committed funds (including planned gifts), with an initial goal of $10 million for the endowment.  This program was established through the vision, generosity, and leadership of Mr. Louis H. Gump.  The first class of Roan Scholars was admitted in the year 2000.


ETSU Faculty and Staff gave over $535,650 to the Foundation in 2006-2007.  In the past five years, ETSU’s faculty and staff have made gifts to the Foundation in excess of $1.6 million.  This commitment demonstrates to our private donors the appreciation our faculty and staff have for their university.


The Legacy Circle, the recognition society of the ETSU Foundation for donors who include the Foundation in their Wills, Charitable Remainder Trusts, Charitable Gift Annuities, Life Insurance Policies, Retirement Benefits, or with other planned gifts, now has over 240 loyal members who are “planning for the future” of the university with their respective stewardship.  This fiscal year witnessed an additional $2.4 million dollars in future estate or planned gifts from donors who are leaving a legacy for their university’s students and faculty in the generations ahead.  Planned giving pledges within the past five years exceeded $25 million from many donors.


During the past fiscal year, the ETSU Foundation in partnership with First Tennessee Bank and the International Storytelling Center  continued to host the Sharing Your Story, Building a Legacy series in Jonesborough, Tennessee.  The series featured the power of storytelling to encourage donors to reflect on their lives and legacies as stories to be shared with future generations via planned or estate gifts.  Attendance at each event continues to be impressive, with the International Storytelling Center Theatre filled to capacity.  The series is a significant catalyst for ETSU’s alumni and friends to become members of the ETSU Legacy Circle.


The Challenge 2000 Endowment, a scholarship for the 21st century, continues to grow and serve our students with scholarships across the university.  This endowment currently exceeds $1.3 million toward its $2 million goal.  The Challenge 2000 Endowment has awarded over 66 scholarships in excess of $124,000 over the past five years.


In February, 2005, ETSU announced the establishment of the new Honors College.  The prestigious Foundation Honors Scholarship Program was originally established in 1993 with monies seeded from the Woodrow W. and Margaret T. Catherman Scholarship Endowment held by the Foundation.  Since the initial $250,000 commitment, additional endowments of $715,516 were established in the Foundation, creating the Honors initiative.  In addition, on January 9, 1991, the ETSU Alumni Association approved the Committee of 1000 Scholarship Endowment, in excess of $1.5 million, to be provided for the Committee of 1000 Alumni Honors Scholarships.  The Committee of 1000 endowments have been awarded to over 290 students in the amount of $310,500 within the past five years.  This resulted in a total of $2.5 million in endowments for our honors student programs.  The Jim and Sandy Powell Honors Endowment for honors scholarships was established in excess of $230,000 at the time the new Honors College was announced.  Total Honors Endowments in the Foundation to date exceed $3.2 million.


ETSU has been honored by The Princeton Review.  According to its 2007 edition of its book, America’s Best Value Colleges, East Tennessee State University is one of the nation’s best value undergraduate institutions.  This is the third time ETSU has been on this prestigious list.  The publication profiles 150 colleges and universities with excellent academics, generous financial aid packages, and relatively low costs.  ETSU is featured as one of 103 public colleges and 47 private colleges in 40 states that were chosen for inclusion based on student opinion data and information obtained from 646 institutions.


ETSU has been honored by inclusion in the 2008 “Best Southeastern Colleges” by The Princeton Review, making this the fourth consecutive year that ETSU has been selected to receive this distinction. According to The Princeton Review, the schools earning the Best Regional distinction offer “excellent academics,” and the listing provides students with “a wide range of fine schools to consider” as they decide upon an institution of higher education that will best match their needs.


The ETSU College of Business and Technology is listed among the nation’s most outstanding business schools in the Princeton Review 2008 edition of “Best 290 Business Schools.” Although the institutions are not ranked academically, ETSU was singled out for special recognition in the “Best Classroom Experience” category and the “Most Family Friendly” category.  The top ten Business Schools with the best classroom experience were Indiana University, Harvard University, Millsaps College, University of Chicago, University of Virginia, Acton M.B.A. in Entrepreneurship, East Tennessee State University, Miami University, University of Alabama at Tuscaloosa, and Claremont Graduate University.


The second holder of the Eastman Chemical Company Distinguished Chair of Business Leadership is Ben Zander, the conductor of the Boston Philharmonic Orchestra.  The author of the best-selling book, The Art of Possibility, spoke to regional business leaders, students, faculty, and the ETSU community.  Zander used the analogy of business organizations as an orchestra to demonstrate how a business may come together to unleash its full power and potential.  Mr. Norris Sneed, Senior Vice President of Eastman Chemical, and Dr. Linda Garceau, Dean of the ETSU College of Business and Technology, welcomed Mr. Zander to the lecture.  The Eastman Chair was created in the ETSU Foundation to “support business leadership lectures, research in areas of business leadership, and other related business leadership activities.”


The ETSU 101 – President’s Classroom graduated its third class on October 2, 2007.  Dr. Stanton and numerous faculty and staff spent five sessions interacting with 22 regional leaders.  The program allows participants to experience being a doctor, a movie producer, a song writer, a nurse, a golfer, an engineer and a basketball coach.  This year’s class and previous classes were composed of three current or former mayors, three city commissioners, 36 presidents, CEOs and business owners, and 24 other leaders from the community.  From this experience, this influential group of people has generated support for ETSU in numerous ways.


The ETSU Annual Fund and Phonathon Campaigns continue to serve the university in its efforts to communicate with and provide alumni (by way of direct contact with our students) an opportunity to support their alma mater each year.  The ETSU Phonathon students began 2006-2007 with a challenge to contact all of the university’s 70,000 graduates in a two-semester time frame.  On average, the students’ calls resulted in one of four donors being a first-time donor.


The ETSU PRIDE program has now enjoyed 10 years as an Alumni Association program to welcome new and returning ETSU students.  A reminder to friends and alumni of the role the university plays in so many lives, ETSU PRIDE reflects the spirit of support for the university. The partnered activities and the special events on campus, as well as the trademark signs displayed throughout the region, have become a part of every fall.


The Alumni Association released the 2005 Alumni Directory in partnership with Harris Publishing.  This book helps connect alumni and update information of over 70,000 graduates and former students.


The ETSU Alumni Association Fall Golf Classic celebrated its 40th anniversary in September of 2006.  It is one of the region’s longest running and best-attended tournaments.


The ETSU Foundation adopted a Code of Ethics as required by the Tennessee Code Annotated Section 49-7-107.  This Code of Ethics has been used as a model for other TBR institutions.  The policy is distributed each year at our Foundation Annual Meeting, and all new members are provided a copy at the time they agree to serve as members of the Foundation.


For the 21st consecutive year, the ETSU Foundation achieved an unqualified audit report without any findings or recommendations.  This audit report is a demonstration of the integrity and dedication of the board of directors and ETSU personnel in the management of the private funds entrusted to the Foundation.

Again, thank you for your steadfast support and especially so in these challenging times.  Our progress to date would not have been possible without you.  We appreciate your generosity and commitment to the "Margin of Excellence" at our university and all that it brings to our students and the region.

         
Our success in fund raising can be attributed to three principles:

1.                 Longevity of key volunteer leadership and university personnel working together as a team;

2.                 strong, expert volunteer involvement in investment policies of the ETSU Foundation; and

3.                 active involvement of academic leaders throughout the institution.

Our success is a direct reflection
of your loyal and continued support.

Richard A. Manahan

Vice President for University Advancement

President/CEO, ETSU Foundation

Thank you!