Kenyon College Endowment Answering Questions Kenyon College Endowment

Kenyon College Endowment Answering Questions Kenyon College Endowment History

Three questions… • Why is Kenyon’s endowment so small? • What would it take to move Kenyon to where it should be vis-à-vis its peers? • How do we get there? Kenyon College Endowment History

What is Kenyon’s endowment now? • $192. 9 mm as of 6/30/07 • $125. 5 mm as of 6/30/03 • $117, 000 per student Kenyon College Endowment History

Why is Kenyon’s endowment so small? • A tenuous financial history to 1981 created the gap • A strong stock market from 1982 - 2001 widened the gap What are the opportunities and challenges Kenyon faces in closing the gap? Kenyon College Endowment History

A Strong Start… • The very first gifts to Kenyon (of $30, 000) received by Philander Chase from “the benefactors” were intended to serve as an endowment, to be used for the "permanent benefit of this and future generations. " As such, Chase "Was it unreasonable, when the used most of it to purchase 8, 000 acres undersigned stipulated with the of land called on his fellow Benefactors, in England, that, if they would contribute towards the Americans to respond with similar permanent fund, his own country, America, would furnish the means generosity to fund the buildings. for the buildings? To refuse such a condition would have been to bring a stain on his native land. " --Bishop Philander Chase, A Plea for the West Kenyon College Endowment History

…that was short-lived • The gifts sought from American citizens did not come through and the 8, 000 acres dwindled to finance the building and operation of the College for years to come. Kenyon College Endowment History

William Foster Peirce, 1896 -1937 • Transformed the College during his 41 -year tenure as president • Relentless fundraiser who tried in earnest to build Kenyon’s endowment Raised the money for • Gifts, however, were used to build Hanna, and expand the College Leonard, Samuel Mather, • Endowment did not grow Ransom, Cromwell, and substantially during this time. Peirce Halls. Kenyon College Endowment History

Gordon Keith Chalmers, 19371956 • Elevated the academic reputation of the College; Kenyon Review • Rebuilding Old Kenyon after the tragic fire in 1949 resulted in suspending all other fundraising. Of the $800, 000 • Described as having a “disdain for needed to rebuild all things financial. ” During the last Old Kenyon, only $200, 000 decade of his tenure, the was covered by accumulated operating deficit insurance. increased from $64, 000 to $518, 000. Kenyon College Endowment History

1964– 67: A time of reckoning • In 1964, prominent theme of Kenyon’s reaccreditation: "The paramount problem at Kenyon is financial. " • The college separated financially from Bexley, eliminating $18, 000 of its annual operating deficit and withdrew the KR subsidy, saving another $24, 000. • Kenyon developed a plan to expand enrollment from 750 to 1, 250 by creating a coordinate college for women. Kenyon College Endowment History

The Program for Expansion, 196774 • In 1967, Kenyon launched the "Program for Expansion" campaign. Of the $18. 5 million goal, $5 million was to be for endowment. • Although a report to the Board of Trustees in April 1974 shows that $335, 663. 87 had been raised toward the endowment goal, the overall endowment during this same period Kenyon College decreased from $9. 7 to $7. 2 million. Endowment History

1966 -1981: The gap is created • Kenyon’s endowment was $10 million in 1968 • Endowment did not hit $10 million again until 1981 • As enrollment grew, endowment per student decreased from $13, 000 to $7, 500. • The average endowment per student in our current peer group increased 39% during this time, from $20, 000 to $28, 000. From 1966 to 1981, Kenyon used its endowment to deal with the expenses of expansion and the accumulated deficits from Chalmers's presidency Kenyon College Endowment History

1966 -81 Kenyon College Endowment History

1966 – 1981: Fundraising • The Kenyon Fund was re-started in 1962. • All “campaigns” were for buildings: – The ARC Campaign for the Ernst Center – A fundraising campaign for the Bolton Theater • In 1981, there were 4 full-time professional development staff. Kenyon College Endowment History

1982 -2000: The bull market • Kenyon's endowment increased almost every year from 1975 to 2000, from $7. 5 million to $144 million But • the gap between the smaller and larger endowments widened exponentially… Kenyon College Endowment History

Illustration • An endowment of $100 million at the start of 1982, growing at the same rate as the DJI over the next 18 years, would have been $1. 2 billion in 2000. • Kenyon's starting point was $10 million and while over that period our returns were parallel to the DJI, our endowment in 2000 was $144 A $90 million difference at the start of the million. market run ended up as a difference of more than $1 billion Kenyon College Endowment History

Endowment Growth the Stock Market Kenyon College Endowment History

1982– 2001: Fundraising • The first comprehensive campaign in Kenyon’s history was the Campaign for Kenyon, 1984 -89. $12 million of the $36 million raised was for endowment. • Claiming Our Place followed from 1996 -2001. Of the $116 million raised, $44 million was for endowment. • Kenyon hired a full-time planned giving officer in 1982. Kenyon College Endowment History

1982 - 2007 Average of 17 Peers: $725 M difference between Kenyon and the average: $21, 000 Kenyon $192 M Kenyon College Endowment History

Question #2… Where should Kenyon’s endowment be and what would it take to get there? Kenyon College Endowment History

$144 million in cash today would move Kenyon from 16 th to 10 th on this list… • $578, 677, 125 is needed to move to average of the top quartile • $225, 676, 125 is needed to move to the average of the second quartile • $144, 972, 000 is needed to move to the average of the third quartile Kenyon College Endowment History

Kenyon has many financial strengths • Streak of 37 consecutive years with a balanced budget • Most selective college in Ohio at 28% acceptance rate • 100% increase in applications in past two years • Top quintile in AAUP faculty salary rankings • AA bond rating from S&P and Moody’s • Over $160 M in new construction/renovation 2002 -10. • In the Top 10 of US News 40 top-tier schools in giving per alumnus; top 15 in participation • In the Top 5 of US News 40 top-tier schools in Parents Fund gifts per student Kenyon College Endowment History

The Importance of the Annual Funds • While Kenyon has less endowment income than our peers supporting the operating budget, we have a larger amount of operating gift support in the budget than some of our peers. • A $100, 000 increase in the Kenyon Fund and Kenyon Parents Fund totals is equivalent to the income from $2, 000 in endowment. Kenyon College Endowment History

Kenyon College Endowment History

Kenyon College Endowment History

Keeping the annual funds strong is critical as we seek to increase our endowment … Question #3: How do we get there? Kenyon College Endowment History

How to Build Endowment ØExceptional investment returns ØImminent opportunities/change ØFundraising focus Kenyon College Endowment History

Endowment Investment Returns 16. 2% in FY 07 – NACUBO-ranked top decile performer At August 31, 2008 Kenyon College Endowment History

Imminent Opportunities • Demographic shift: Kenyon’s alumni base comes of wealth age and size Kenyon College Endowment History

Larger Co-ed Classes Come of Age • • • Ten years will separate “Claiming Our Place” and the earliest start date of the next campaign. During those 10 years, the number of living alumni in peak giving classes (out 21 -50 years) increases from 3, 600 in 1996 to 6, 150 in 2006. The number of rated prospects in those years increases from 1, 132 in 1996 to 1457 in 2006, a 32% increase. Kenyon College Endowment History

Leadership Donors Increase • 137 donors gave $97 million to “Claiming Our Place. ” • 77% of top alumni donors were out between 21 and 50 years – a total of 65 donors. • Eight years later, 116 leadership prospects exist in these top giving years – a 78% increase. Kenyon College Endowment History

Focus: Make Endowment a Priority In Kenyon’s three campaigns since 1969, only 35% of all gifts raised were designated for endowment Campaign Endowment Total Raised Program for Expansion 1967 $335, 000 $18, 500, 000 Campaign for Kenyon 19849 12, 000 36, 000 Claiming Our Place 19962001 44, 000 $116, 000 $56, 335, 000 $160, 500, 000 Total Kenyon College Endowment History

• $230 million goal • Double Kenyon’s endowment - $150 million for endowment and annual support • Increase endowed scholarship funds by 150% (from $50 to $120 million) • Invest in faculty and academic program Kenyon College Endowment History

Three Overarching Goals First: Teaching and Learning “Teaching at Kenyon – rooted in the connections between faculty and students -- is our single most defining value and must be supported. ” Kenyon College Endowment History

First: Teaching and Learning Endowed Programs - $41 million • • Professorships Faculty Development Summer Student Research Programs Investment in International Programs and Languages Kenyon College Endowment History

First: Teaching and Learning Teaching Facilities – $36 million • Studio Art and Art History Building • Small Houses for English, Kenyon Review Associated Endowment – $15 million • Art building endowment • Kenyon Review endowment Kenyon College Endowment History

Overarching Goals Second: Community “Kenyon fosters values of citizenship, relationship, and community that are cornerstones of adult life. ” Kenyon College Endowment History

Second: Community Capital Support for Student Life - $44 million • Peirce Hall Renovation • Student Residences • Town Center Fund and new Health Center • Philander Chase Corporation Kenyon College Endowment History

Third: Access Unprecedented commitment to scholarship endowment - $70 million in new endowment Kenyon College Endowment History

Putting It Together Endowment Programs $126, 000 Capital Programs: $ 80, 000 Annual Funds $ 24, 000 Total Goal $230, 000 Kenyon College Endowment History

Gifts by Level At January 31, 2008 Needed $ Committed % of $$ Achieved $20 million+ $20, 000 $26, 718, 000 134% 1 1 $10 million+ 40, 000 21, 625, 725 56% 2 4 $5 million+ 25, 000 11, 817, 889 47% 2 5 $2 million 30, 000 13, 216, 750 44% 4 12 $1 million 35, 000 16, 527, 983 47% 13 35 $500, 000 17, 500, 000 10, 400, 256 59% 17 35 $250, 000 10, 000 6, 976, 617 70% 21 40 $100, 000 10, 000 6, 591, 336 66% 49 100 $50, 000 12, 500, 000 3, 959, 746 32% 62 250 Other 30, 000 12, 631, 176 42% many Total $230, 000 $130, 465, 478 56% 181 474 Number of gifts Number needed Kenyon College Endowment History

l Campaign Results At January 31, 2008 Endowment Committed Goal % Achieved Financial Aid $41, 829, 013 $70, 000 60% Faculty Development and Student Research 6, 994, 251 51, 000 14% Kenyon Review 1, 606, 415 5, 000 32% Other Endowment 2, 270, 705 $52, 700, 384 $126, 000 42% $27, 777, 423 $34, 000 82% 18, 788, 100 25, 000 75% Student Residences 955, 000 12, 000 8% Health Center, VI, other Village 563, 000 19% 1, 814, 000 2, 000 91% 52, 205, 343 76, 000 69% Philander Chase Corporation 2, 099, 611 4, 000 50% Annual Operating Funds 15, 730, 846 24, 000 66% Kenyon College Endowment History $130, 465, 478 230, 000 56% Total Endowment Programs Arts Facilities Dining Program English Houses, Neff, O'Connor House Total Programs Other Academic and Institutional Support 5, 783, 255 Unassigned Gifts 1, 946, 039 Total

The End Thank you for your support of Kenyon College Endowment History