The President's Report on Philanthropy and Endowments 2011–2012

<strong>The</strong> President’s <strong>Report</strong> on 

Philanthropy and Endowments 

2011–2012

Cody Goddard

Message from the President 2 

Message from the Campaign Chair 4 

Ensuring Student Opportunity 6 

Enhancing Honors Education 8 

Enriching the Student Experience 10 

Building Faculty Strength & Capacity 12 

Fostering Discovery & Creativity 14 

Sustaining a Tradition of Quality 16 

Concepts in Philanthropy 18 

Philanthropy Awards & Honors 22 

Endowment Overview 24 

University Budget Summaries 28 

Campaign Executive Committee 32 

Matthew Bellingeri 

Cover photo: Tina Hay/<strong>The</strong> Penn Stater magazine

MESSAgE fROM THE PRESIdENT 

As this edition of <strong>The</strong> President’s <strong>Report</strong> on Philanthropy and Endowments goes 

to press, it is almost a year since I took office in the midst of the worst crisis in 

the history of our University. Throughout the challenges and consequences of 

the past year, Penn State has remained a leader in higher education, and the 

loyalty of Penn State’s alumni and friends has endured. 

I’m deeply grateful to report that through their philanthropy, our supporters continue 

to express their faith in the future of the University and our students. More than 191,000 

alumni and friends made over 323,000 gifts to Penn State over the past year—both recordbreaking 

numbers. In part, these figures reflect the extraordinary success of THON, and 

our students’ commitment and generosity continue to inspire Penn Staters everywhere, 

raising nearly $11 million this year for pediatric cancer research and care. <strong>The</strong>se results 

also reflect our supporters’ belief that philanthropy is the best way to move our institution 

forward. 

<strong>The</strong> $208.7 million received this past year—the second-highest figure in our history—will 

help Penn State to represent educational opportunity in the future, just as it has in the 

past. Since For the Future: <strong>The</strong> Campaign for Penn State Students began, alumni and 

friends have given more than $335 million for scholarships, the campaign’s top priority, 

and this past year saw the creation of more than 120 new scholarship endowments. As 

academic rankings, corporate recruiters, and application figures confirm that a Penn 

State degree has lost none of its value, the generosity of our supporters is ensuring that 

students from every background can continue to choose our University. 

Through both the numbers and the stories you’ll find in this report, you can learn about 

private giving’s impact across Penn State: on the accomplishments of our faculty, the 

strength of our programs, the breadth of our outreach to the Commonwealth and the 

nation. In the months and years to come, the support of our alumni and friends will help 

to refocus public attention on these achievements and our core missions of education, 

research, and service. <strong>The</strong>re is still much hard work ahead, for the campaign and our 

institution, but with the continuing commitment of our donors, we can affirm the Penn 

State community’s belief—and the belief of the world—in our institution. Thank you for all 

you have done to support the University through these challenging times, and thank you 

for being a part of our bright future. 

Sincerely, 

Rodney A. Erickson, President 

<strong>The</strong> Pennsylvania State University 

Cody Goddard 

2 

<strong>The</strong> President’s <strong>Report</strong> on Philanthropy and Endowments 2011–12

MESSAgE fROM THE CAMPAIgN CHAIR 

During the past year, as the eyes of the nation were turned upon the University, 

so many Penn Staters took a hard look inward as well—and found that despite 

challenges and changes, our love for Penn State remains undiminished. As 

chair of For the Future: <strong>The</strong> Campaign for Penn State Students, I would like 

to offer my deepest thanks to all of you who have expressed that love through your gifts. 

Our institution has before it an opportunity to impact not only how the world sees us, but 

also how we see ourselves. And philanthropy will guide that vision. 

In this edition of <strong>The</strong> President’s <strong>Report</strong> on Philanthropy and Endowments, we are highlighting 

some of the many ways in which private giving can shape new perspectives. Scholarships 

(including one from an alumna who didn’t envision herself as a college graduate) 

and other kinds of support are allowing students to see their own potential for success. 

Endowed funds and positions are enabling faculty members to see themselves as leaders 

in their fields. And a gift challenging other donors to create an innovative campus center is 

helping alumni and friends to lead through their philanthropy. 

Throughout this report, you’ll also find new looks at familiar landmarks, first looks at facilities 

like the state-of-the-art Millennium Science Complex and the Huck Life Sciences 

Building. This summer, the latter was named in honor of alumni J. Lloyd and dorothy 

foehr Huck, whose generosity helped to establish the Huck Institutes of the Life Sciences 

at Penn State. <strong>The</strong> groundbreaking work of the Institutes’ students and faculty, which 

includes important advancements in fields ranging from diabetes treatment to infectious 

disease control, is a powerful example of how private giving can change what Penn State 

represents on the global level. 

Nothing has been a greater inspiration throughout this campaign, however, than to look 

at the University through the eyes of our students. <strong>The</strong>y see Penn State as the institution 

they’ve dreamed about attending, the place where their hopes for the future can be 

fulfilled. As supporters of the University, we see great promise, too: in the ability and 

ambition of our students, in the continuing dedication of our faculty and staff, and in the 

remarkable generosity of our alumni and friends. Thank you. 

Sincerely, 

Peter g. Tombros, Chair 

For the Future: <strong>The</strong> Campaign for Penn State Students 

Cody Goddard 

4 


<strong>The</strong> articles in this report not only 

tell the stories behind important 

gifts to the University—they also 

highlight ideas and approaches 

that have enabled many donors 

to fulfill their philanthropic goals. 

To learn more, please see the 

Concepts in Philanthropy section, 

which begins on page 18.

ENSURINg STUdENT OPPORTUNITy 

As a teenager, 

Martha Barnhart 

Jordan wasn’t 

sure that she 

even wanted to go to college. 

“I was perfectly happy 

working at the burger joint 

A former scholarship 

recipient helps to create a 

more diverse Penn State 

Martha’s support is enabling 

Kalyn flournoy, a 

junior Marketing major with 

a double minor in Russian 

and Media Studies, to serve 

as president of the Multiculin 

Erie,” admits the retired 

attorney, who now lives in 

Los Angeles. A guidance 

counselor pushed her to 

apply to Penn State, however, 

and she was enjoying 

all the fun of freshman year 

when she received a visit 

from her father. He wanted 

to tell her in person that he 

had lost his job. 

“<strong>The</strong> financial aid office 

kept me from dropping 

out,” Martha recalls. “I met 

with a staff member every 

semester after that, to make 

sure that I got all the scholarships 

and loans which 

were available to me, and I 

asked him once why he was 

doing this for me. He said, 

‘I’m doing it for the University, 

because I know that 

you are going to repay every 

penny and then some.’” 

And he was right. As a volunteer, 

Martha has chaired 

the Board of Visitors for the 

Smeal College of Business, 

from which she earned a 

bachelor’s degree in marketing 

in 1976, and she was 

a member of the committee 

that raised support for 

the college’s new building. 

She now serves as the chair 

of the For the Future annual 

giving efforts and as a 

member of the campaign’s 

executive committee. As 

a donor, she has focused 

her philanthropy on three 

scholarships for Smeal 

students. 

“At Penn State, I grew into 

a person I never expected,” 

she says. “<strong>The</strong> University 

motivated me and gave 

me ambition. Everybody, 

regardless of their financial 

circumstances, should 

have that experience if they 

have earned it academically.” 

Through the Martha 

Barnhart Jordan Diversity 

Outreach Scholarship, 

established in 2007, she is 

targeting her support to 

outstanding undergraduates 

whose ethnic, cultural, 

or national backgrounds 

contribute to the diversity 

of Penn State as a whole. 

“My mother is Colombian, 

and she worked full-time to 

put herself through school,” 

says Natalie Unger, a recipient 

of the scholarship and 

a junior Marketing major 

who aspires to a career in 

the fashion industry. “She 

taught us that education 

was very important. My 

sister just graduated from 

Penn State, and my parents 

have struggled to pay for 

two kids in college, especially 

since the recession 

started. This scholarship 

really makes a difference, 

for me and for them.” 

Andrew Dunheimer 

6 


tural Women’s forum and 

a member of several other 

diversity organizations. Kalyn 

says, “Scholarships have 

allowed me to cut down my 

hours at my two jobs and 

focus on being a leader. 

College has now become a 

debt sentence, but without 

education, it’s impossible 

in today’s world to achieve 

your dreams. <strong>The</strong> support 

I’ve received has meant so 

much to me that I want to 

give back, too.” 

Chloe Elmer 

<strong>The</strong> community that Kalyn 

is helping to build at Penn 

State is the real goal of the 

scholarship, according to 

its creator. Martha says, “It’s 

not just the recipients who 

benefit from a gift like this. 

<strong>The</strong> diversity of Penn State 

is incredibly important to 

all our students. It makes 

you a more effective leader, 

in business or in any other 

field, to understand people 

of different cultural backgrounds. 

<strong>The</strong> more diverse 

your educational environment, 

the better prepared 

you are for a diverse world.” 

Chloe Elmer 

Martha Barnhart Jordan (opposite), Natalie Unger (above), Kalyn Flournoy (below) 

<strong>The</strong> President’s <strong>Report</strong> on Philanthropy and Endowments 2011–12 

7

ENHANCINg HONORS EdUCATION 

Julie Sun Kim used 

to be embarrassed 

about her family’s 

small dry cleaning 

business in dresher, Pennsylvania, 

but not anymore. 

“I speak about it with pride 

A new generation of 

philanthropic leaders steps 

forward for Schreyer Scholars 

now,” says the sophomore 

Chemistry major and 

Schreyer Scholar. “When 

my father came to this 

country from South Korea, 

nobody wanted an engineer 

who couldn’t speak English, 

but my parents persevered 

and made nothing into 

something that feeds me 

and helps to pay for my 

education. I owe them so 

much, and when we found 

out that I had received the 

John and Carol Rooney 

Trustee Scholarship, their 

sigh of relief confirmed my 

decision to come to Penn 

State and the Schreyer 

Honors College.” 

Since 2004, when John and 

Carol Rooney established 

the need-based endowment 

for Schreyer Scholars, 

the Berwyn, Pennsylvania 

couple has been hearing—and 

loving—stories 

like Julie’s. “Whether it’s in 

person or through a letter, 

the gratitude of these 

students comes across with 

such sincerity,” says John, 

a member of the Schreyer 

Honors College advisory 

board and a principal at deloitte 

Consulting LLP. “So 

many are the first generation 

in their family to go to 

college, and they know that 

through Penn State and the 

Schreyer Honors College, 

they are getting a worldclass 

education at a better 

value than anywhere else. 

<strong>The</strong> Schreyer Scholars are 

really remarkable students.” 

<strong>The</strong> Rooneys’ own experiences 

as Penn State students 

converged in their 

decision to create a Trustee 

Scholarship for Schreyer 

Scholars with financial 

need. John and Carol met 

through friends in 1986, late 

in their senior years at Penn 

State. John eventually proposed 

to Carol at the top 

Redheaded Ninja Photography 

8 



of Mount Nittany when the 

couple was making a return 

visit for Homecoming some 

six years later. John had 

grown up in a single-parent 

household, and he and his 

mother paid for much of 

his undergraduate degree 

in mechanical engineering 

with savings, loans, and 

grants. He still remembers 

how important a scholarship 

was to his ability to 

receive an M.B.A. later from 

the University of Chicago. 

As an accounting major 

at Penn State, Carol was 

a member of the University 

Scholars program, the 

predecessor of the Schreyer 

Honors College. 

“I made a lot of sacrifices 

to spend the time in the 

library that I needed to 

because academic achievement 

was very important 

to me,” she recalls. “Many 

of today’s honors students 

are facing even tougher 

choices. Can they take 

advantage of all the opportunities 

that Penn State 

offers while having to work 

more and more to pay for 

the increasing costs of 

their degrees—if they can 

even afford it? We want to 

alleviate that burden to the 

extent we can and make it 

easier for them to experience 

all Penn State has to 

offer and eventually do 

great things beyond Penn 

State. Support for Schreyer 

Scholars is an investment 

in Penn State’s reputation 

and the future.” 

<strong>The</strong> Rooneys have also 

focused their giving in the 

Schreyer Honors College 

because, as John says, 

“it needs philanthropic 

alumni to step up now. <strong>The</strong> 

college has only been in 

existence since 1997 so it 

doesn’t have its own large 

alumni base yet. But when 

I thought about what an 

amazing thing Mr. and Mrs. 

Schreyer did for Penn State 

in establishing the program, 

and what these students do 

for Penn State through their 

achievements, I couldn’t 

help but think, well, what 

can we do to help?” 

for Julie Kim, the help she 

receives from the Rooneys 

isn’t just financial. “for 

kids like me, a scholarship 

tells us that we’re worth 

something, to the University 

and to society,” says 

Julie, who is working with 

a faculty member on a biochemistry 

research project 

and hopes to become a 

doctor someday. “It says 

that my family’s hard work 

is paying off.” 

Julie Kim (opposite), John 

and Carol Rooney (above) 

with children Tori, Cade, 

and CJ 

<strong>The</strong> President’s <strong>Report</strong> on Philanthropy and Endowments 2011–12 9

ENRICHING THE STUDENT EXPERIENCE 

Thirty years ago, 

nursing students 

and close friends 

Diane Moon 

and Jerrilyn Muth shared 

books, car rides, even a 

stethoscope to save money 

Friends and family 

celebrate a nurse’s 

commitment to caring 

as they completed their 

clinical rotations at Penn 

State Milton S. Hershey 

Medical Center. Today, thirteen 

years after Diane lost 

a hard-fought battle with 

breast cancer, that spirit of 

mutual support lives on in 

the Diane Moon Robinson 

Endowment in the School 

of Nursing. 

“When we were in college, 

we were watching every 

penny—I was a single mother, 

Diane was the youngest 

of five kids—and it was hard 

and scary, but everything 

was easier because we had 

each other,” says Jerrilyn 

Muth-Kern, now a member 

of the School of Nursing 

advisory board and a fundraising 

volunteer. “I hope 

that through the gifts that 

our family and Diane’s family 

have made in her honor, 

today’s nursing students 

can feel like they’re not 

alone, either.” 

Diane and Jerrilyn earned 

their degrees from the 

School of Nursing in 1983, 

and the friends stayed close 

even as careers and marriages 

kept them in different 

parts of the country. 

While living in North 

Carolina with her husband, 

1985 engineering graduate 

Mark Robinson, and 

their two young children, 

Diane was diagnosed with 

breast cancer. Jerrilyn was 

there when Diane woke up 

from her mastectomy, and 

she helped to care for her 

friend after a bone marrow 

transplant. 

“One day, when Diane was 

in the hospital, two student 

nurses came into the room 

to change her bed, and 

Diane and I both started 

giggling, remembering 

those days,” recalls Jerrilyn. 

“And then I went out into 

the hall and cried. I caught 

those two students by the 

arm, and I told them that 

they weren’t just getting 

an education. <strong>The</strong> relationships 

that you build as a 

nursing student will give 

you strength throughout 

your life.” 

When Diane died in 1999, 

Jerrilyn wanted to honor her 

in a way that would “help 

students to have the same 

kind of experiences, create 

the same kind of friendships, 

that we did,” she says. 

With her husband, Jeffrey R. 

Kern, Jerrilyn began making 

annual gifts to assist 

nursing undergraduates 

with expenses not typically 

covered by financial aid: 

professional licensing exam 

fees, gas money for travel to 

clinical training sites, expensive 

textbooks. “Sometimes 

a small bump in the road 

can cause a detour,” says 

Jerrilyn. “Our hope was to 

make it a little easier for students 

to enter the profession 

that Diane loved.” 

Cody Goddard 

Photo courtesy of Mark Robinson 

10 


Maki Photography LLC 

Mark Robinson was deeply 

moved by the generosity 

and appropriateness of the 

gifts that Jerrilyn and Jeffrey 

were making in diane’s 

honor. “Sometimes you’ll 

meet a person who embodies 

a certain calling in life,” 

says Mark. “I truly believe 

that diane was a nurse from 

the time she breathed her 

first breath until her last. 

She was always caring for 

others, always willing to go 

the extra mile.” Even before 

diane’s death, the Moon 

and Robinson families 

had begun honoring her 

fight against breast cancer 

through support for Relay 

for Life—daughter Laura is 

now one of the organization’s 

leading fundraisers in 

her community—but they 

decided to create a legacy 

for her at Penn State as 

well. In 2007, Mark, who 

had remarried, created the 

diane Moon Robinson 

Endowment with his wife, 

Susanna. Like the gifts from 

Jerrilyn and Jeffrey, its 

income helps to cover the 

costs of nursing students’ 

clinical experience. 

Last year, support from 

the fund allowed Rachel 

Elizabeth Martin, who 

graduated as an RN this 

spring, to pay her dues in 

the Sigma <strong>The</strong>ta Tau International 

Honor Society 

of Nursing. “<strong>The</strong> nursing 

program is so rigorous 

that it leaves little time for 

a job,” says Rachel, now 

doing a one-year graduate 

residency on the Heart and 

Vascular Progressive Care 

Unit at Hershey Medical 

Center. “<strong>The</strong> support from 

the endowment allowed 

me to join an organization 

that not only enhances my 

résumé but also helps me to 

grow through unlimited access 

to innovative research 

and educational materials. 

Nursing is an ever-changing, 

ever-improving field, 

and I’m thankful to keep 

learning things that I can 

apply to direct patient care 

and daily life.” 

It’s that kind of dedication 

her friend both lived and 

inspired, says Jerrilyn, and 

it’s that kind of dedication 

the supporters of the diane 

Moon Robinson Endowment 

want to encourage. 

“I hope that diane would 

say, ‘I’m so proud that you 

thought of me like that,’” 

Jerrilyn says. “for all of us 

who knew her, it’s a great 

way of saying thanks—to 

diane, for all that she has 

meant and still means to 

us, and to the nurses who 

are working so hard to get 

an education and care for 

others, too.” 

Jerrilyn Muth-Kern and 

Mark Robinson (opposite), 

Diane Moon Robinson 

(opposite, below), Rachel 

Elizabeth Martin (above) 


BUILdINg fACULTy STRENgTH & CAPACITy 

When John 

Brennan 

began his 

career as 

a nuclear engineer in the 

late 1960s, he and his colleagues 

didn’t worry about 

support for their work. “Our 

Support for Penn State 

faculty fuels the future of 

energy research 

research was completely 

funded by the government,” 

recalls John, who earned a 

master’s in nuclear engineering 

at Penn State 

and went on to become 

an executive and entrepreneur 

in the business 

world. “It was understood 

that nuclear energy would 

require a lot of investment 

to get started. As we think 

about the future of energy 

alternatives, we have to understand 

that they’ll require 

a lot of investment, too, and 

this time, it’s going to come 

from the private sector.” 

College of Engineering and 

an award for outstanding 

undergraduates in nuclear 

engineering. And through 

the John J. and Jean M. 

Brennan Clean Energy 

Early Career Professorship, 

they’re encouraging innovative 

energy research with 

an innovative approach to 

faculty support. 

<strong>The</strong> position, created 

through Penn State’s faculty 

Endowment Challenge, 

provides support for a 

faculty member in the first 

decade of his or her career, 

when it can be hardest to 

secure research funding 

from outside sources. While 

most such awards are based 

in a particular department, 

the Brennans’ Early 

Career Professorship can 

rotate every three years to 

a different faculty member, 

anywhere in the College of 

Engineering, whose work 

is advancing alternatives 

to fossil fuels. “It’s too early 

now to pick the winners 

among the technologies 

emerging today and the 

technologies we’re revisiting,” 

says John. “What we 

can pick are the young professors 

who have the ability 

John and Jean Brennan 

(right), Dr. Michael Janik 

and Tom Senftle (opposite) 

Instead of just putting their 

money into companies or 

technologies, though, John 

and his wife, Jean, have 

decided to invest in people: 

the future energy industry 

leaders beginning their 

careers now at Penn State. 

<strong>The</strong> Brennans, who live in 

yardley, Pennsylvania, have 

created a Trustee Scholarship 

for students in the 

Dan Z. Johnson 

12 



to motivate students and 

move their fields forward.” 

dr. Michael Janik, an associate 

professor of chemical 

engineering, is the first 

faculty member to benefit 

from the Brennans’ endowment. 

Collaborating with 

colleagues in a wide range 

of fields, dr. Janik uses 

computational methods 

to assess, at the level of 

quantum mechanics, how 

to make everything from 

batteries to biomass conversion 

more efficient and 

how to remove pollutants 

such as sulphur from conventional 

fossil fuels. He 

has used the resources of 

the Brennan Clean Energy 

Early Career Professorship 

to equip his laboratory and 

support both the undergraduate 

and graduate 

students getting hands-on 

experience there. 

“As a junior faculty member, 

I wouldn’t normally 

have the recognition, both 

within and outside Penn 

State, that a named position 

offers, and I wouldn’t have 

the funding and flexibility 

that usually come later 

in your career,” says dr. 

Janik. “With the Brennans’ 

support, I have got both. I 

am able to cover opportunities 

for my students like 

professional travel or an 

extra summer of research, 

which can really drive their 

careers.” 

Tom Senftle, a Ph.d. candidate 

in chemical engineering 

and a member of 

dr. Janik’s team, has been 

able to share the lab’s work 

at several national conferences 

thanks to funds from 

the Brennan Clean Energy 

Early Career Professorship. 

“Those networking opportunities 

are beneficial not 

only for my own research 

and career, but also for 

Penn State,” he says. “By 

increasing the reputation 

of dr. Janik’s group, we’re 

increasing the reputation of 

the University in the field of 

clean energy technologies.” 

<strong>The</strong> enthusiasm of students 

like Tom is, for the Brennans, 

one of the nation’s 

most important renewable 

resources, and they hope 

that their gift and others 

like it will encourage a 

shift in thinking about the 

sciences and engineering. 

“Our country needs to do 

more to glamorize these 

fields,” says Jean. “Not 

everybody can be a professional 

athlete or a facebook 

founder. An endowment 

like ours and a wonderful 

model like dr. Janik can 

show students that achievement 

in research—the kind 

of research that makes a 

difference for all of us—will 

be recognized and respected, 

too.” 


fOSTERINg dISCOVERy & CREATIVITy 

One of the most 

important skills 

in managing 

any business is 

doing more with less, and 

the department of Management 

and Organization 

in the Smeal College 

An investment in a top 

department yields great returns 

for Penn State students 

of Business has lived by 

its own lessons. With just 

seventeen faculty members, 

it’s one of the smallest 

programs of its kind among 

leading business schools, 

but it has consistently 

ranked in the top five for research 

productivity over the 

last decade, and it’s guiding 

nearly 300 undergraduate 

majors, 200 MBA students, 

and 15 Ph.d. candidates to 

careers in industry, government, 

and academia. “It’s a 

golden age for us,” says dr. 

denny gioia, the department 

chair and the Robert 

and Judith Klein Professor 

of Management. “And we’re 

getting better and better 

thanks to the Arnolds.” 

<strong>The</strong> Department of Management 

and Organization 

Excellence Fund, established 

by John M. Arnold 

and Kara Hanlon Arnold, 

provides support for faculty, 

graduate, and undergraduate 

achievement—and 

it provides the Harrisburg, 

Pennsylvania couple with 

a way to celebrate their 

family’s legacy. Since 1924, 

when John’s great-grandfather 

founded their business, 

four generations of Arnolds 

have built it into one of the 

Commonwealth’s leading 

energy distributors. <strong>The</strong> 

company is known today 

as Petroleum Products 

Corp. John himself joined 

the Harrisburg-based 

company after earning his 

M.B.A. from Penn State in 

1987—Kara graduated the 

same year with a bachelor’s 

degree in communications—but 

he grew up learning 

about business from 

his father, the late John A. 

Arnold. 

“Marketing, sales, finance— 

these things are important, 

but my father understood 

that good management 

underlies all success,” says 

John, now the company’s 

chairman and chief operating 

officer. “Through 

my involvement with the 

Smeal Board of Visitors, 

I knew that the department 

was very good, and 

we wanted to solidify that 

position and accelerate its 

progress going forward. 

Whatever Penn State business 

students choose to 

do after graduation, they’ll 

need strong management 

skills, and Penn State needs 

a strong management and 

organization program.” 

<strong>The</strong> Arnolds structured the 

endowment to give the department 

as much freedom 

as possible in meeting its 

most urgent needs. dr. gioia 

has used the excellence fund 

to create a faculty fellowship 

and undergraduate scholarships, 

but one of his first decisions 

was to increase support 

for graduate students. 

“you can’t attract top faculty 

members without top Ph.d. 

candidates,” he says. “Those 

mentor-protégé relationships 

are critical to research, 

and they influence the quality 

of education we offer at 

every level. We were losing 

our best applicants to 

schools with more competitive 

funding packages, but 

now we’re on an equal footing 

because of the Arnolds’ 

endowment.” 

Shubha Patvardhan has 

been able to immerse herself 

in her graduate studies 

thanks to support from the 

excellence fund. “you can’t 

feel ambitious or confident 

as a new researcher 

if you’re worried about the 

day-to-day,” say Shubha, 

who is starting work on a 

dissertation about how firms 

organize for a future that 

is unknown and, to a large 

extent, unknowable. “I came 

to this program from a corporate 

career in India, where 

14 


Redheaded Ninja Photography Redheaded Ninja Photography 

education has played such a 

significant role in the country’s 

economic progress in 

the last few decades that 

we have come to recognize 

it as the key to empowerment 

as well as advantage. 

It’s extraordinary that the 

Arnolds have given me the 

resources to explore freely 

and purposively, and, I 

hope, contribute something 

meaningful and impactful 

to the theory and practice of 

management.” 

<strong>The</strong> Arnolds, who have also 

supported scholarships 

and other needs across 

the University, believe that 

Shubha’s commitment to 

making a difference is one 

of the most important measures 

of the department’s 

success and their philanthropy’s 

impact. Kara says, 

“John and I are so grateful 

for our experiences at Penn 

State. We want to share that 

opportunity to grow and 

learn with today’s students, 

and we hope that they will 

end up sharing our passion 

for giving back.” 

John and Kara Arnold 

(above), Shubha Patvardhan 

(below) 


SUSTAININg A TRAdITION Of qUALITy 

In another time and 

another economy, a 

student like Megan 

Millo might not have 

worried about life after 

college. With a stellar gPA 

and a resume of leadership 

roles like the presidency of 

Students and employers 

in northeastern Pennsylvania 

connect through philanthropy 

has been overwhelming 

and frustrating,” says the 

dallas, Pennsylvania native. 

“I know that I’m not the 

only student who’s anxious 

about what will happen 

when we take our degrees 

out into the world.” 

Thanks to a recent gift 

from longtime Penn State 

supporters Ric and Sharon 

Struthers, though, Megan 

and other students in 

job-changing graduates in 

the region a comprehensive 

range of resources. going 

beyond traditional services 

such as résumé workshops 

and career fairs, the center 

will also provide state-ofthe-art 

technology for video 

interviews and online job 

searches. Most importantly, 

it will be home to three new 

staff members dedicated 

to connecting Penn Staters 

with employers who need 

their skills. 

“Northeastern Pennsylvania 

is facing many 

challenges, including the 

difficulty of keeping young 

people in the region and in 

good jobs,” says Ric, who 

grew up in Shavertown and 

spent two years of his Penn 

State education at the Wilkes-Barre 

campus before 

earning his management 

degree at University Park 

in 1977. “Sharon and I hope 

that the center will not only 

help individual students to 

build their careers, but also 

create a stronger economic 

environment for them to 

enter when they graduate.” 

Earl & Sedor Photographic 

Penn State Wilkes-Barre’s 

Business Club, she could 

have counted on a good 

career after she completes 

her bachelor’s degree in 

business at the campus 

next spring. But in today’s 

tough job market? “Just 

searching for internships 

northeastern Pennsylvania 

will be able to launch 

their professional lives 

with greater confidence 

and more support. <strong>The</strong> 

Struthers Family Career 

Services Center at Penn 

State Wilkes-Barre will offer 

both current students and 

Through their volunteer 

commitments—Ric is currently 

a member of the 

For the Future executive 

committee, and Sharon 

serves on the campaign’s 

stewardship committee in 

addition to her involvement 

in many other educational 

16 


Dan Z. Johnson 

organizations—and through 

their philanthropy at Penn 

State and elsewhere, the 

Struthers are committed to 

helping students succeed. 

<strong>The</strong> vision for the Struthers 

family Career Services 

Center at Penn State 

Wilkes-Barre grew, in part, 

from Ric’s experience in 

helping to create the Bank 

of America Career Services 

Center at University Park in 

2002. As a top executive at 

the company and a driving 

force and leading donor 

behind that project, he saw 

the importance of both a facility 

and a staff that would 

make employers feel valued 

at Penn State. 

When Ric met with students 

at the Wilkes-Barre campus 

in 2010 and heard their 

concerns about entering the 

workforce, he and Sharon 

started a conversation with 

Chancellor Charles davis 

about creating a career 

services center at the campus. 

“A survey of our recent 

graduates found that only a 

third were working in their 

chosen field,” says dr. davis. 

“Ric and Sharon understand 

that students need to start 

learning from the moment 

they arrive on campus about 

possible career paths and 

the educational choices they 

have to make to get there. 

We have to approach the issue 

from the other side, too. 

We need to communicate 

to our local business communities 

and to employers 

throughout the nation just 

how much Penn State students 

have to offer.” 

Three new staff members—a 

career services coordinator, 

an assistant, and a regional 

job and internship development 

specialist charged 

with assisting all five 

campuses in northeastern 

Pennsylvania—began work 

this fall, and the Struthers 

family Career Services 

Center facility is planned 

for an expanded section of 

the Penn State Wilkes-Barre 

Athletics and Recreation 

Building. <strong>The</strong> Struthers have 

created an operating endowment 

for the center, and 

they have pledged to match 

up to $500,000 in gifts from 

other donors to renovate 

and equip the space. <strong>The</strong>ir 

commitment to the campus 

also includes the Struthers 

family Trustee Scholarship, 

one of several scholarships 

the couple has created at 

Penn State. 

“Ric and I were both able 

to attend college because 

of scholarship support, and 

we wanted to give others 

that same opportunity,” says 

Sharon, a Clemson University 

graduate. “Access to 

education isn’t enough anymore, 

though. young adults 

are coming out of college 

and ending up unemployed 

or underemployed because 

they’re not ready for that 

next step in life. We see our 

scholarships and the center 

as complementary, as ways 

to create momentum toward 

success for Penn State 

students.” 

Megan Millo is grateful that 

Penn State Wilkes-Barre’s 

new and expanded career 

services will be there for her 

through her senior year and 

beyond. “I know that earning 

a Penn State degree will 

open up so many possibilities 

for me, but I need help 

in discovering what those 

possibilities are,” she says. 

“Thanks to the Struthers, I 

know that I won’t be alone 

as I try to find a rewarding 

job and a fulfilling life that 

will let me give back someday, 

too.” 

Megan Millo (opposite), 

Sharon and Ric Struthers 

(above) 


CONCEPTS IN PHILANTHROPy 

<strong>The</strong> need for scholarships 

“I want to level the playing field,” says Martha Barnhart 

Jordan, a former scholarship recipient who has 

created three endowments for Smeal College of Business 

students. “Everyone should have access to higher 

education, not only because it’s right, but also because 

good students from every economic background make 

our institution better.” Scholarships have been the top 

priority of For the Future since the campaign began five 

years ago, and the need has only grown during an era of 

economic turbulence, dwindling family savings, and job 

layoffs. In 2007-2008, students who needed loans to pay 

for their degrees were graduating with an average educational 

debt of about $27,000; last year, that figure was almost 

$34,000 and rising. Penn State’s alumni and friends 

can direct their support to students with the most urgent 

financial need through awards such as Trustee Scholarships 

(see below) and Renaissance Scholarships. donors 

may choose to designate their scholarships for students 

in a specified college or at a particular campus, and 

they can express preferences for recipients with certain 

majors, co-curricular activities, or geographic and ethnic 

backgrounds (to the extent permitted by law). To learn 

more about the many options for creating scholarships at 

Penn State, please visit giveto.psu.edu/scholarships. 

Penn State and employer matching programs 

When John and Carol Rooney created their scholarship 

for Schreyer Scholars, they took advantage of every opportunity 

to increase the impact of their support. “I’m a big 

believer in multiplying the benefits of giving as much as 

you can,” says John. “<strong>The</strong> Trustee Matching Scholarship 

Program and funds from the deloitte foundation meant 

that we could do even more to help students.” Many employers 

encourage philanthropy with matching programs; 

to learn if your company offers this benefit, you can search 

a database at www.matching.psu.edu or contact your human 

resources office. Penn State also provides matching 

funds through a number of programs that make alumni 

and friends its partners in supporting top academic priorities. 

<strong>The</strong> Trustee Matching Scholarship Program matches 

5 percent of the total pledge or gift at the time a Trustee 

Cody Goddard 

18 


Scholarship is created, making funds available immediately 

for student awards. This University match, which is 

approximately equal to the endowment’s annual spendable 

income, continues in perpetuity, doubling the support 

available for students with financial need. Opportunities 

also exist to leverage University support for Early Career 

Professorships (see faculty Endowment Challenge below) 

and graduate fellowships. To learn more, please visit 

giveto.psu.edu/support. 

Annual gifts, endowments, and group giving 

Mark Robinson is deeply grateful to Jerrilyn Muth-Kern 

for showing him how to honor his late wife, diane, at 

Penn State. “Jerrilyn remembered how much they had 

struggled to cover everyday needs when they were in 

nursing school together, and her family’s annual gifts 

inspired our family and diane’s family to give as well,” 

says Mark. “My wife, Susanna, and I feel very fortunate 

to have been able to create an endowment so that diane’s 

memory and our philanthropy will go on making 

a difference for students.” Annual gifts can allow donors 

at every level to have an immediate impact, as funds are 

typically expended in the same year in which they are 

received. Endowments, which require a minimum gift 

of $20,000 or more (depending upon the type of fund), 

generate income that supports the donors’ goals in perpetuity. 

Many donors continue to make new gifts to their 

endowments over time; the Moon family, for example, 

pools their support each year to increase the diane Moon 

Robinson Endowment, and Jerrilyn and her husband, 

Jeffrey, have added to it as well. “I was thrilled when 

Mark told me that they were establishing an endowment,” 

says Jerrilyn. “I can’t think of a better way for all 

of us to express our love for diane.” 

<strong>The</strong> Faculty Endowment Challenge 

during his career in the technology sector, John Brennan 

has watched start-ups come and start-ups go, but 

he’s rarely seen a better bet than the ambitious young 

researchers and educators who will receive the Early 

Career Professorship he created with his wife, Jean. “It’s 

very important to attract and keep new faculty members 

who can really motivate students at the same time that 

they’re doing great work of their own,” says John. “And 

because we created our position through the faculty 

Endowment Challenge, we were able to spread our philanthropy 

around a little more and support other things 

we care about, too, like undergraduate scholarships.” <strong>The</strong> 

faculty Endowment Challenge offers donors an opportunity 

to leverage a 1:2 match from the University for gifts 

creating new Early Career Professorships. <strong>The</strong>se awards 

rotate every three years to a new recipient in the first 

decade of his or her academic career, providing seed 

money for innovative research projects and flexible funding 

for new approaches to teaching, and they can play a 

critical role in helping the University to recruit and retain 

rising academic stars. To learn more about the faculty 

Endowment Challenge and other ways to support Penn 

State’s faculty, please visit giveto.psu.edu/faculty. 

DeferreD GivinG 2003–2012 (Fiscal year ending June 30) 

2003 

2004 

2005 

2006 

2007 

2008 

2009 

2010 

2011 

2012 

0 10 20 30 40 50 

48.1 

30.0 

14.4 

21.1 

25.2 

21.5 

24.6 

27.6 

34.2 

14.0 

in millions of dollars 


Honoring others with philanthropy 

“We get more out of seeing what our gifts do for Penn 

State students than seeing our name on something,” admits 

John Arnold. “We did name a graduate scholarship 

and a suite in the Business Building for my father, John 

A. Arnold, because we’re so thankful for the opportunities 

he gave us, and we think of the department of Management 

and Organization Excellence fund as another 

way to honor his values.” Philanthropy can be a powerful 

way to celebrate the lives, achievements, and passions 

of family members and friends, and it can help to ensure 

that their priorities remain Penn State priorities for 

generations to come. Whether donors choose to create 

a scholarship for students from a loved one’s hometown 

or support an academic program that’s preparing young 

people to follow in a friend’s footsteps, gifts to honor 

others can be among the most rewarding commitments 

to the University. Penn State works with donors to ensure 

that the story behind their gift is shared and celebrated 

through statements that are passed on to each new beneficiary 

of an endowment, press releases and public announcements 

of major gifts, or commemorative plaques 

and other appropriate signage at University facilities. 

Leadership philanthropy 

“Penn State Wilkes-Barre has a history of alumni and 

friends stepping forward to make dreams a reality,” says 

dr. Charles davis, the campus chancellor. “When leaders 

like Ric and Sharon Struthers do it, it makes other 

people want to join in.” By sharing both their vision and 

their support for the Struthers family Career Services 

Center, the couple has launched a project that wouldn’t 

otherwise be possible in the present economy—and that 

economy, according to Ric Struthers, is precisely why the 

center is needed now. “Through our gift and through the 

match we’re offering to other donors, we hope to engage 

the community in creating and finding jobs for students 

in northeastern Pennsylvania,” he says. Leadership philanthropy 

like the Struthers’ can shape the University’s 

mission and challenge alumni and friends to make their 

own investments in the future of the institution. Across 

the University, private support is needed to initiate new 

programs, take existing ones to higher levels, and transform 

the experience of Penn State students. development 

staff members can work with you to find an opportunity 

for leadership philanthropy that matches your own passions 

and goals. 

enDowment CateGory 

minimUm Gift 

Academic Endowments 

Dean’s Chair $ 5,000,000 

Department Naming $ 5,000,000 

Department Head’s Chair $ 3,000,000 

Faculty Chair $ 2,000,000 

Professorship $ 1,000,000 

Early Career Professorship $ 500,000 

Student Endowments 

Graduate Fellowship $ 250,000 

Distinguished Graduate Fellowship $ 250,000 

Honors Scholarship $ 50,000 

Undergraduate Scholarship $ 50,000 

Destiny Scholarship $ 50,000 

Enrichment Scholarship $ 50,000 

Trustee Scholarship $ 50,000 

Renaissance Scholarship $ 30,000 

Program Endowments 

Lectureship $ 100,000 

Research $ 50,000 

Program Support $ 25,000 

Libraries $ 25,000 

Awards $ 20,000 

20 


<strong>The</strong> Pennsylvania State University Charitable Gift Fund 

Creating connections for Penn State supporters 

Alumni and friends who want a simple, cost-effective 

way to maximize the impact and tax benefits of their 

philanthropy now have a new option: the Pennsylvania 

State University Charitable gift fund, a donor-advised 

fund (dAf) that allows Penn State supporters to invest 

their charitable dollars and direct contributions to both 

the University and other nonprofit organizations. 

“Penn Staters are recognized around the country for their 

commitment to giving back—not just to the University, 

but also to countless charities in their communities and 

around the globe,” says Rodney P. Kirsch, senior vice 

president for development and alumni relations. “<strong>The</strong> 

Pennsylvania State University Charitable gift fund was 

created to help these generous individuals and their 

families to manage and simplify their philanthropic 

activities. This fund comes after years of research and 

preparation, and we are proud to be offering our supporters 

one of the most innovative approaches to giving 

available today.” 

Through the Pennsylvania State University Charitable 

gift fund (PSUCgf), donors can make gifts of cash, 

appreciated assets such as securities or real estate, and 

other resources to a fund that is invested and administered 

on their behalf by the University’s partners, investment 

firm Kaspick & Company and dAf technology and 

services provider Crown Philanthropic Solutions LLC. 

An account can be established with a gift of $25,000, and 

it can be increased with additional contributions that 

each meet a $1,000 minimum. donors may choose to 

have their gifts invested in one of eight options, much 

like mutual funds, that reflect different growth and 

income strategies. gifts can be counted as tax-deductible 

as soon as they are committed to the fund, allowing 

donors to manage the impact of significant tax events. 

donors may wait to direct their support until they have 

defined their philanthropic priorities, but at least 50 percent 

of the distributions from each donor’s account must 

ultimately come to the University. 

“for many alumni and friends, this fund offers an 

important alternative to other approaches to charitable 

giving,” says Michael J. degenhart, executive director 

of gift planning. “gifts to the fund can be made when 

they will be most financially advantageous for the donor 

while allowing for tremendous flexibility in the timing 

and targeting of charitable support. By partnering with 

one of the leading dAf technology solutions in the 

industry, we are also able to offer supporters a unique 

range of online tools that make giving easier, simpler, 

and more gratifying than ever.” 

Individuals who create an account through the PSUCgf 

will have access to Crown’s donorfirst dashboard environment, 

a secure, web-based system that makes it possible 

for donors to track contributions and distributions, 

research and receive content about both Penn State and 

external grantees, and direct their support, twenty-four 

hours a day, from any location. donors can also invite 

other family members or friends to use the dashboard 

to communicate and share ideas about individual and 

family philanthropy. 

“By minimizing the challenges and maximizing the 

benefits of giving, both financial and personal, we hope 

that the Pennsylvania State University Charitable gift 

fund will make the experience of philanthropy even 

more rewarding for our supporters,” says Kirsch. “We 

see this fund as a way to encourage the Penn State spirit 

of philanthropy and to help our supporters connect with 

the people and the causes that matter most to them.” 

for more information about the Pennsylvania State 

University Charitable gift fund, please contact Michael 

J. degenhart, executive director of gift planning, at 

1-888-800-9170 or giftplanning@psu.edu. 


PHiLANTHROPy AwARDS & HONORS 

Each year, the Division of Development and Alumni Relations 

honors those individuals and companies that have 

been instrumental in our fundraising success. In 2012, we 

celebrated the following award winners. 

Philanthropist of the Year: Edna Peterson Bennett Pierce 

This award recognizes an individual, couple, or family 

who has demonstrated exceptional generosity in the promotion 

and support of <strong>The</strong> Pennsylvania State University. 

Through their philanthropy, the recipients have helped to 

shape Penn State’s future and enabled us to better serve 

students and citizens. 

In the nearly six decades since her graduation from Penn 

State, Edna Peterson Bennett Pierce’s life and philanthropy 

have been guided by her belief that “you can change 

the world one little child at a time.” Edna was a member of 

the fabulous 500, the first class of women admitted to the 

University after World War II, and she earned her degree 

in home economics in 1953. She went on to become the 

mother of six and the guiding spirit of the College of 

Health and Human development’s efforts to improve 

children’s lives. from the Bennett Playground, created 

in her honor by her late husband, gene Bennett, Edna’s 

philanthropic presence on the University Park campus has 

grown to include the Bennett family Center, which offers 

on-campus child care from infancy through kindergarten, 

and the Prevention Research Center for the Promotion of 

Human development, endowed by Edna and committed 

to the health and welfare of children and adolescents. She 

has supported not only the facilities but also the individuals 

responsible for making Penn State a home to excellence 

in research on preventing problems in childhood and 

adolescence; her gifts to establish faculty chairs, an early 

career professorship, and a graduate fellowship are helping 

to ensure that the University will continue to attract 

and retain innovative leaders in the field of prevention 

science. Over the years, Edna has served on many Penn 

State boards and committees, and with her husband and 

fellow alum, A. duer “Bud” Pierce ’50, she remains engaged 

in the life of the University and the College of Health and 

Human development. Thanks in part to Edna’s support, a 

new Biobehavioral Health building is nearing completion. 

Home to the Prevention Research Center, the building is a 

symbol of the continuing commitment to children’s wellbeing 

that she and Penn State share. 

Fundraising Volunteer of the Year: Robert E. Fenza 

This award recognizes an individual or group who has 

served as fundraising volunteers, teachers, or mentors 

while demonstrating exceptional commitment and leadership 

in building philanthropic support for <strong>The</strong> Pennsylvania 

State University. 

Whether he’s sharing his professional experience with 

Penn State students or sharing his personal enthusiasm 

with prospective donors, Rob fenza is a powerful advocate 

for educational opportunity and for the College of Arts 

and Architecture. Soon after graduating from the University 

in 1980 with an intercollegiate degree in landscape 

architecture and philosophy, he became a managing 

partner with a real estate investment firm, now known as 

Liberty Property Trust, where he currently holds the posts 

of executive vice president and chief operating officer. His 

22 


success has enabled him, 

with his wife, Marcy, to 

create several scholarships 

for landscape architecture 

and music students and 

contribute to other funds 

across the University, including 

the fenza gaynor 

family Endowment for 

Cancer Research at Penn 

State Hershey Cancer 

Institute (PSHCI). <strong>The</strong> 

fenzas’ greatest gift to Penn State has been their service 

as fundraising leaders: Marcy, as a member of the PSHCI 

development committee, and Rob first as a member of 

the National Council on Penn State Philanthropy and 

now as the chair of the College of Arts and Architecture 

committee in For the Future: <strong>The</strong> Campaign for Penn 

State Students. 

Through his leadership, the college has already exceeded 

its original goal for the campaign, and he continues to 

build relationships that will benefit Arts and Architecture 

students in the years to come, hosting events with Marcy 

in the Philadelphia area and reaching out, formally and 

informally, to inspire other alumni and friends to support 

the University. Rob has been honored with a College of 

Arts and Architecture Alumni Award and holds the lifelong 

designation of Penn State Alumni fellow. He served 

as the College of Arts and Architecture’s commencement 

speaker in 2011, inspiring the college’s newest alumni with 

his own dedication to Penn State. 

<strong>The</strong> future of energy will depend upon both talent and 

technology, and through its deepening relationship with 

Penn State, Chevron is making an extraordinary investment 

in both. One of the world’s leading integrated energy 

corporations, the company is a vanguard of collaboration 

between industry and higher education with its University 

Partnership Program (UPP), which identifies strategic 

institutions and forges connections through research and 

development, corporate responsibility initiatives, and 

human resources. <strong>The</strong> program’s goals include developing 

the technical knowledge, leadership skills and work 

experience of students entering the energy industry as 

well as increasing the pool of women and minority groups 

in science and technical fields. As a key Chevron partner, 

Penn State will receive more than $500,000 in 2012 

alone for needs and opportunities ranging from diversity 

programming and laboratory upgrades in the College 

of Earth and Mineral Sciences to recruiting events in 

the Smeal College of Business to support for the Palmer 

Museum of Art annual gala and THON. <strong>The</strong> UPP will 

allow Penn State and Chevron to build upon many past 

and present connections, including more than 250 alumni 

now employed by the company. <strong>The</strong> recent establishment 

of a Chevron office in the Pittsburgh area will yield even 

more opportunities for recruitment and research and even 

greater visibility for the joint efforts of the company and 

the University to meet energy demands around the world. 

Corporate Partner of the Year: Chevron 

This award recognizes a corporation that has demonstrated 

extraordinary generosity in promotion and support of 

<strong>The</strong> Pennsylvania State University. Recipients are chosen 

on the basis of consistency of giving, support to areas of 

greatest needs, and impact across Penn State. 


ENdOWMENT OVERVIEW 

Endowed gifts are held by Penn State in perpetuity. <strong>The</strong> 

initial gift is invested, and a portion of the average annual 

investment return is spent for the purpose designated by 

the donor. <strong>The</strong> remaining income is added to the principal 

as protection against inflation. Thus an endowed gift today 

will have relatively the same value for future generations. 

Penn State’s endowment portfolio, into which endowed 

funds established at the University are invested, is referred 

to as the Endowment Pool. This commingled pool operates 

much like a mutual fund. Each endowment owns a number 

of units in the pool, just as an individual would purchase 

shares in a mutual fund. As with mutual funds, the value of 

each unit at the time funds are invested in the pool determines 

how many units an individual fund acquires. 

Penn State strives to be a good steward of its endowed gifts 

and follows a prudent management philosophy in investing 

these gifts so that they maintain their value in real, inflationadjusted 

terms over time. Penn State’s Board of Trustees 

has established four basic endowment management principles 

to guide the University’s Investment Council. 

<strong>The</strong>se four principles ensure that the spending power of 

each endowment gift will be maintained in the face of economic 

fluctuations. 

GiftS to enDowment (Fiscal year ending June 30) 

150 

136.3 

120 

Basic Endowment Management Principles 

1. Provide sufficient current and future income to meet 

90 

60 

72.8 

56.5 

42.4 

51.4 

55.2 

70.2 

61.2 

62.5 

76.2 

the University’s s spending objectives and enhance e its 

mission. 

2. Focus on long-term performance. 

3. Accept a reasonable and prudent level el of risk while 

30 

maximizing “total”return. 

4. Diversify investments ts to reduce e risk. 

’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 


market valUe of Penn State’S enDowmentS anD Similar fUnDS 

(Fiscal year ending June 30) 

EP Similar Funds Total Value 

2003 $ 882 83 

2004 1,007 100 

2005 1,128 103 

2006 1,280 110 

2007 1,537 132 

2008 1,488 128 

2009 1,184 97 

2010 1,342 98 

2011 1,708 123 

2012 1,765 90 

$ 965 

1,107 (1.11 billion) 









in millions of dollars n Endowment Pool (EP) n Similar Funds 

24 


Investment Management Update 

Penn State’s endowment investments consist of a diversified 

portfolio of public equities, bonds, private capital, and 

hedge funds in addition to real assets. In managing our 

investments, we adhere to a prudent, rational, long-term 

strategy that seeks to maintain steady growth while minimizing 

the effects of volatile market fluctuations. 

<strong>The</strong> University provides 4.5 percent of the pooled endowment’s 

five-year average market value for spending on 

scholarships and educational programs. <strong>The</strong> University’s 

spending policy of using a rolling five-year average is 

intended to balance out the “peaks” and “troughs” in the 

investment markets, saving a portion of the earnings in the 

good years to offset the less profitable years. This provides 

generous current spending while preserving future 

purchasing power, which is known as “intergenerational 

equity.” 

As of the end of fiscal 2012, endowment and similar funds 

were valued at $1.86 billion, of which $1.77 billion was 

invested in the Endowment Pool portfolio. Similar funds, 

which include charitable remainder trusts, charitable gift 

annuities, and other life income funds in addition to some 

donor-restricted funds, represented $90.0 million in assets 

that are not directly invested in the Endowment Pool. 


enDowment aSSet mix | Where Penn State invested its endowed funds 

(Fiscal year ending June 30, 2012) 

25% 

55% 

20% 

n Public Equities 

n Fixed Income 

n Private Capital 

for the year ending June 30, 2012, the Endowment Pool 

and similar funds saw an increase of $24 million, and these 

funds have grown a cumulative $239 million over the last 

five years. Over this same period, the endowment has 

provided $326 million of program support, including $71 

million in fiscal 2012. <strong>The</strong>se amounts reflect the impact of 

investment returns and generous giving, including consistent 

support for scholarships and University programs. 

<strong>The</strong> Penn State endowment portfolio is broadly diversified, 

with 20 percent fixed income as of June 30, 2012; 55 percent 

in public equities (both U.S. and non-U.S.); and 25 percent 

in a variety of other (alternative) investments including 

real estate, private capital, venture capital, and energy. <strong>The</strong> 

majority of the endowment’s assets are equity-type invest- 

ments that, over the long term, generate returns in excess of 

inflation in order to preserve the endowment’s purchasing 

power for future generations. 

In the year ending June 30, 2012, global equity markets 

pulled back from their previous year gains, with non-U.S. 

equities falling into negative territory while U.S. equities 

experienced modest gains. Non-U.S. public equities, as 

measured by the MSCI All Country World ex U.S. Index, 

returned –14.1 percent. Meanwhile, fixed income returns 

were positive for the fourth consecutive year, as the 

Barclays Capital Aggregate Bond Index earned a total 

return of 7.5 percent in fiscal 2012. Penn State’s private 

equity and venture partnerships outpaced public equities, 

returning 10.8 percent and 12.8 percent, respectively. 

Arianna Gianakopoulos 

26 


averaGe annUalizeD total retUrnS for 

PerioDS enDinG JUne 30, 2012 (Net of fees) 

Total returns include interest, dividends, and market 

appreciation 

7.5% 

8.4% 

Penn State inveStment CoUnCil 

Penn State’s Board of Trustees created the Investment 

Council in response to the University’s increasing asset 

base and complex investment strategies. <strong>The</strong> council 

provides direct oversight of the endowment and long-term 

investment program, and it regularly reviews asset allocation, 

new asset classes, investment strategies, and manager 

performance. 

COUNCiL MEMBERS 

3.5% 

2.6% 

20-year 

10-year 

5-year 

1-year 

lonG-term inveStment PerformanCe 

of enDowment 

Penn State’s endowment earned an investment return of 

3.5 percent, excluding the impact of new gifts and spending. 

While stock market returns often fluctuate from 

year to year, the endowment’s well-diversified portfolio 

can weather short-term fluctuations and generate positive 

returns over long periods of time. Net of all fees and 

expenses, the Penn State endowment has averaged 7.5 

percent per year over the last ten years, and 8.4 percent 

over the last twenty years, allowing the endowment to 

maintain steady inflation-adjusted spending and to 

achieve long-term intergenerational equity. 

David J. Gray, chair 

Senior Vice President for Finance & Business/Treasurer 


David Branigan 

Executive Director, Office of Investment Management 


timothy J. Crowe 

Managing Director (retired) 

Anchor Point Capital LLC 

Blake Gall, Cfa 

Founder and President 

Micro Plus Plus investment Management 

Carmen Gigliotti 

Managing Director 

Private Market Group, DuPont Capital Management 

Gary a. Glynn 

President and Chief Investment Officer (retired) 

US Steel & Carnegie Pension Fund 

edward r. Hintz 

President 

Hintz Capital Management 

Colleen ostrowski 

Vice President, Investor Relations and Treasurer 

iTT Corp 

J. David rogers 

Chief Executive Officer 

J.D. Capital Management 

linda B. Strumpf 

Chief Investment Officer (retired) 

<strong>The</strong> Helmsley Charitable Trust 


UNIVERSITy BUdgET SUMMARIES 

inCome (Fiscal year ending June 30) 

16.0% 

8.6% 

6.6% 

4.7% 

0.5% 

34.9% 

dollars in thousands 

n Tuition and fees $1,439,373 

n Medical Center/Clinic* 1,181,958 

n Restricted funds 659,788 

n Auxiliary enterprises 354,522 

n State appropriation 272,431 

n Philanthropy and other 193,001 

n Agriculture (federal) 20,554 

Total $4,121,627 

28.7% 

*Includes $6,568,000 in state and federal medical assistance 

funds, provided by the Pennsylvania Dept. of Public Welfare 

exPenDitUre (Fiscal year ending June 30) 

8.6% 

8.0% 

2.4% 

1.2% 

3.1% 2.7% 

4.9% 

8.6% 

13.9% 

28.7% 

17.9% 

dollars in thousands 

n Medical Center/Clinic $1,181,958 

n instruction 736,180 

n Research 573,548 

n Auxiliary enterprise 354,522 

n Academic support 353,131 

n institutional support 330,268 

n Physical plant 204,014 

n Public service 129,500 

n Student services 109,225 

n Pennsylvania College of Technology 98,670 

n Student aid 50,611 

Total $4,121,627 

28 


tHe State’S SHare of Penn State’S BUDGet 

year total BUDGet State aPProPriation PerCent of total 

2012–13 $4,264,764,000 $272,431,000* 6.3% 

2011–12 4,121,627,000 272,431,000* 6.6% 

2010–11 4,016,443,000 333,863,000* 8.3% 

2009–10 3,761,608,000 333,863,000* 9.0% 

2008–09 3,607,440,000 338,375,000 *9.4% 

2007–08 3,411,528,000 334,230,000 *9.8% 

2006–07 3,209,165,000 327,715,000* 10.2% 

2005–06 3,044,868,000 312,026,000* 10.2% 

2004–05 2,786,403,000 317,179,000 11.4% 

*Excludes state and federal medical assistance funding provided to Penn State Milton S. Hershey Medical Center through the 

Pennsylvania Department of Public Welfare 

SoUrCeS of GiftS reCeiveD 2011–12 | Where the $208.7 million came from 

10.3% 

10.5% 

29.0% 

50.2% 

Sources Amounts Number of donors 

n individuals $104,821,251 182,165 

Alumni 70,938,849 75,593 

Friends 33,882,402 106,572 

n Corporations 60,515,159 5,873 

n foundations 21,869,335 472 

n organizations 21,471,297 3,202 

Total $208,677,042 191,712 


DeSiGnateD PUrPoSeS of GiftS reCeiveD 2011–12 | Where the $208.7 million went 

14.6% 

21.6% 

.2% 

.8% 

1.9% 

2.3% 2.3% .01% 

33.9% 

Purposes 

Amounts 

n Property, buildings, equipment $70,754,463 

n Student aid 46,565,716 

n Other purposes* 45,080,277 

n Research 30,366,271 

n Academic divisions 4,892,462 

n Public services and extension 4,744,902 

n Faculty resources 4,141,951 

n Unrestricted University-wide 1,699,142 

n Library resources 410,709 

n Physical plant maintenance 21,149 

Total $208,677,042 

22.3% 

*This category includes gifts to the Children’s Miracle Network, 

multipurpose funds, and gifts awaiting designation by donors. 

GiftS DeSiGnateD to SPeCifiC UnitS 2011–12 

UNIT 

AMOUNT 

Abington $892,825 

Agricultural Sciences 7,606,048 

Altoona 1,551,288 

Arts & Architecture 2,959,619 

Beaver 242,361 

Behrend 3,793,825 

Berks 428,613 

Brandywine 506,173 

Communications 1,380,689 

dickinson School of Law 1,413,993 

duBois 351,528 

Earth & Mineral Sciences 14,891,522 

Eberly College of Science 5,615,566 

Education 1,942,129 

Educational Equity 254,330 

Engineering 23,615,476 

fayette, <strong>The</strong> Eberly Campus 237,652 

great Valley 132,767 

greater Allegheny 182,376 

Harrisburg 941,382 

Hazleton 724,431 

Health & Human development 8,405,635 

UNIT 

AMOUNT 

Hershey $31,345,841 

Information Sciences & Technology 7,343,032 

Intercollegiate Athletics 51,418,209 

Lehigh Valley 410,631 

Liberal Arts 6,378,629 

Mont Alto 579,744 

New Kensington 439,385 

Outreach 6,609,382 

Research & graduate School 1,849,239 

Schreyer Honors College 2,014,983 

Schuylkill 382,825 

Shenango 298,018 

Smeal College of Business 5,500,556 

Student Affairs 1,325,736 

Undergraduate Education 2,879,930 

University Libraries 2,433,131 

University-wide 8,292,919 

Wilkes-Barre 258,158 

Worthington Scranton 325,368 

york 521,098 

TOTAL $208,677,042 

30 


GrowtH in Private SUPPort anD Donor BaSe 

300 

274.8 

250 

200 

150 

181.3 

151.3 

130.9 

165.2 

190.3 

181.5 

182.1 

203.4 

208.7 

Gift receipts 

100 

50 

’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 


400 

350 

300 

250 

200 

150 

170.3 

200.9 

353.3 

284.7 277.5 265.2 273.8 

163.4 173.0 

223.7 

New commitments 

100 

50 

’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 


200,000 

191,712 

185,183 

181,918 183,712 

132,791 

143,517163,111 

120,680 

132,931 

122,539 

150,000 

100,000 

Number of donors 

50,000 

’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 


CAMPAIgN ExECUTIVE COMMITTEE 

Peter G. Tombros 

Campaign Chair 

E. Lee Beard 

Campaign Vice Chair 

Chair, Campus 

Committees 

Edward J. Beckwith 

Chair, Planned Giving 

Advisory Council 

John M. Arnold 

At-large Member 

Richard J. Barry 


Dennis P. Brenckle 

Chair, Penn State Milton 

S. Hershey Medical 

Center 

Campaign Committee 

James S. Broadhurst 

Past Chair, Board of 

Trustees, 

<strong>The</strong> Pennsylvania State 

University 

Linda J. Gall 

Chair, Stewardship 

Committee 

Edward R. Hintz 

Honorary Campaign 

Chair 

Martha B. Jordan 

Chair, Annual Giving 

Committee 

32 


William A. Jaffe 


Edward P. Junker III 


Jeffery L. King 


Bruce R. Miller 

Campaign Vice Chair 

Chair, College Committees 

Arthur J. Nagle 

Honorary Campaign 

Chair 

Karen B. Peetz 

Chair, Board of Trustees, 


University 

Robert E. Poole 

Chair, Leadership Gifts 

Committee 

Catherine Shultz Rein 

Chair, Corporate 

Relations Committee 

Douglas L. Rock 


Richard K. Struthers 


John P. Surma Jr. 


John K. Tsui 



Ex Officio Members 

Rodney A. Erickson 

President, 


University 

Robert N. Pangborn 

Interim Executive Vice 

President and Provost, 


University 

David J. Gray 

Senior Vice President 

for Finance and 

Business/Treasurer, 


University 

Rodney P. Kirsch 

Senior Vice President 

for Development and 

Alumni Relations, <strong>The</strong> 

Pennsylvania State 

University 

Cody Goddard 

34 


This publication can also be found on the web at: 

president.psu.edu/philanthropy 

for more information about philanthropy at Penn State, contact: 

Rodney P. Kirsch 

Senior Vice President for development and Alumni Relations 


116 Old Main 

University Park, PA 16802-1501 

814-863-4826 rpk6@psu.edu 

<strong>The</strong> following current and recent Penn State students contributed photography to this publication: 

Andrew Dunheimer is a senior majoring in Visual Arts and Information Sciences and Technology. 

he serves as a senior photographer for the Daily Collegian and is a member of the National Society 

of collegiate Scholars and the Phi Kappa Phi honor society. After graduation, Andrew will serve as a 

technology adviser in the financial services office at Ernst & Young in New York city while continuing 

his freelance photography career. 

Arianna Gianakopoulos is a junior Integrative Arts major, combining graphic design, advertising, and 

photography. She hopes to merge this with her Sustainability leadership minor to work with sustainable 

print and packaging design when she graduates. She interns at the New leaf Initiative as a 

graphic designer, and she is fundraising chair for Global Water Brigades, as well as ThoN chair for the 

club field hockey team. 

Chloe Elmer is a May 2012 journalism graduate. In her senior year, she was a photographer for the 

office of Development communications. chloe was also a senior staff photography member and 

editor for the Daily Collegian, and she reported from Brazil for the Mcclatchy News Service with an 

international reporting class. chloe continues to pursue a daily news job while taking on freelance 

photography work. 

Matthew Bellingeri is a junior majoring in Security Risk Analysis and minoring in Information Sciences 

and Technology. he serves as a senior photographer for the Daily Collegian and is the vice president 

and co-founder of Boulevard Penn State, a student-run community service and philanthropy organization 

on campus. he plans to pursue a career in information security within the financial sector while 

continuing his freelance photography career. 

<strong>The</strong> Pennsylvania State University is committed to the policy that all persons shall have equal access to programs, facilities, admission and 

employment without regard to personal characteristics not related to ability, performance, or qualifications as determined by University 

policy or by state or federal authorities. It is the policy of the University to maintain an academic and work environment free of discrimination, 

including harassment. <strong>The</strong> Pennsylvania State University prohibits discrimination and harassment against any person because of age, 

ancestry, color, disability or handicap, genetic information, national origin, race, religious creed, sex, sexual orientation, gender identity, 

or veteran status and retaliation due to the reporting of discrimination or harassment. Discrimination, harassment, or retaliation against 

faculty, staff, or students will not be tolerated at <strong>The</strong> Pennsylvania State University. Direct all inquiries regarding this Nondiscrimination 

Policy to the Affirmative Action Director, <strong>The</strong> Pennsylvania State University, 328 Boucke Building, University Park, PA 16802-2801: tel. 814- 

863-0471/TTY. 

U. Ed. DEV 13-04 ajs 

coloPhoN 

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The President's Report on Philanthropy and Endowments 2011–2012

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