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Kenyon College Endowment

Kenyon College Endowment. Answering Questions. 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?. What is Kenyon’s endowment now?. $192.9 mm as of 6/30/07 $125.5 mm as of 6/30/03

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Kenyon College Endowment

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  1. Kenyon College Endowment Answering Questions

  2. 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?

  3. 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

  4. 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?

  5. 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 used most of it to purchase 8,000 acres of land and called on his fellow Americans to respond with similar generosity to fund the buildings. "Was it unreasonable, when the undersigned stipulated with the Benefactors, in England, that, if they would contribute towards the permanent fund, his own country, America, would furnish the means 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

  6. …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.

  7. 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 • Gifts, however, were used to build and expand the College • Endowment did not grow substantially during this time. Raised the money for Hanna, Leonard, Samuel Mather, Ransom, Cromwell, and Peirce Halls.

  8. Gordon Keith Chalmers, 1937-1956 • Elevated the academic reputation of the College; Kenyon Review • Rebuilding Old Kenyon after the tragic fire in 1949 resulted in suspending all other fundraising. • Described as having a “disdain for all things financial.” During the last decade of his tenure, the accumulated operating deficit increased from $64,000 to $518,000. Of the $800,000 needed to rebuild Old Kenyon, only $200,000 was covered by insurance.

  9. 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.

  10. The Program for Expansion, 1967-74 • 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 decreased from $9.7 to $7.2 million.

  11. 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 increased39% 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

  12. 1966-81

  13. 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.

  14. 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…

  15. 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 million. A $90 million difference at the start of the market run ended up as a difference of more than $1 billion

  16. Endowment Growth the Stock Market

  17. 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.

  18. 1982 - 2007 Average of 17 Peers: $725M difference between Kenyon and the average: $21,000 Kenyon $192M

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

  20. $144 million in cash today would move Kenyon from 16th to 10th 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

  21. 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 $160M 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

  22. 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 $2,000,000 in endowment.

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

  24. How to Build Endowment • Exceptional investment returns • Imminent opportunities/change • Fundraising focus

  25. Endowment Investment Returns16.2% in FY 07 – NACUBO-ranked top decile performer At August 31, 2008

  26. Imminent Opportunities • Demographic shift: Kenyon’s alumni base comes of wealth age and size

  27. 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.

  28. 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.

  29. Focus:Make Endowment a Priority In Kenyon’s three campaigns since 1969, only 35% of all gifts raised were designated for endowment

  30. $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

  31. 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.”

  32. First: Teaching and Learning • Endowed Programs - $41 million • Professorships • Faculty Development • Summer Student Research Programs • Investment in International Programs and Languages

  33. 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

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

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

  36. Third: Access • Unprecedented commitment to scholarship endowment - $70 million in new endowment

  37. Putting It Together Endowment Programs $126,000,000 Capital Programs: $ 80,000,000 Annual Funds $ 24,000,000 Total Goal $230,000,000

  38. Gifts by Level At January 31, 2008

  39. Campaign Results At January 31, 2008

  40. The End Thank you for your support of Kenyon College.

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