Duke University Snapshot By: Patrice Lombard HI ED 545 Penn State University Good morning/afternoon and welcome! My name is Patrice Lombard and today I will be providing you with a snapshot of one of my favorite universities in the country, Duke University. I will begin with a brief history of the university, share with you the Carnegie Classifications™ and how they relate to similar universities, discuss the leadership structure of the university, and lastly, provide insight into the revenue sources and expenses of Duke.

Evolution to Elite 1838 – Brown’s Schoolhouse Subscription School 1841 – Union Institute Academy 1851 – Normal School 1853 – First degrees conferred The evolution of Duke University from Brown's Schoolhouse, a private subscription school (King, n.d.), to the 254-building, 8,547-acre (“Quick Facts,” n.d.) elite private research university began nearly 180 years ago in Randolph County, North Carolina. As you can see from Figure 1 the schoolhouse was modest, to say the least, but over time this small, one room schoolhouse would give way to one of the most elite research universities in the United States. In 1838 Brown’s Schoolhouse was opened to educate the local Methodists and Quakers children in Randolph County (King, n.d.). Shortly thereafter the school, under Brantley York, was chartered by North Carolina as the Union Institute Academy in 1841 (King, n.d.). Upon York’s departure in 1842, Braxton Craven became principal of Union Institute (King, n.d.). In his 40 years with the school Craven championed many changes. He was pivotal in chartering the Normal School in 1851 and Trinity College in 1859 (King, n.d.). The Normal School’s main goal was to educate the teachers of North Carolina’s common schools (King, n.d.) and in 1853 it conferred its first Bachelor’s of Arts Degrees (McCormick Harlow, M., 175th Anniversary Intern, & the Duke University Archives, n.d.). Figure 1. Brown’s Schoolhouse. (Duke University Libraries, 2013)

Evolution to Elite 1859 – Trinity College 1887 – German university model adopted 1892 – Moved to Durham, NC 1896 – Washington Duke endowments 1924 – Plans for a university Without a solid state school system in place in North Carolina, Craven knew that in order for the school to grow he would need to look to the Methodist Church for assistance (King, n.d.). In 1859 he did just that. The results of that partnership was yet another name change, to Trinity College (King, n.d.), but it also solidified the school’s path towards privatization and away from becoming part of the North Carolina state school system. Over the next 65 years, the school’s evolution was marked with many milestones and history-changing moments. Upon Craven’s death in 1882, Marquis Lafayette Wood became president and although his tenure at Trinity was short his contributions to the school were immeasurable (“Trinity College Presidents, n.d.). He procured the first endowment and was the mind behind the idea of moving the school out of Randolph County (“Trinity College Presidents, n.d.). The next step to elite was taken in 1887 by new president John F. Crowell when he forever changed the school by adopting the “German university model, which emphasized research over recitation” (King, n.d., para. 4). In addition to the changes in curriculum, he opened a research library, and began to lobby to have the college moved to a more urban location (King, n.d.). Five years later in 1892 Trinity College was relocated to Durham, North Carolina in hopes to increase enrollment, create a more diverse faculty-body, and tap into the financial resources that a larger city has to offer (King, n.d.). This move was essential in forming the bond between Trinity and the Duke family as its patriarch, Washington Duke, donated “$85,000 for buildings and endowment” (McCormick Harlow et al, n.d., “Trinity College moves to Durham”). The Trinity/Duke connection was strengthened in 1894 with the appointment of John Carlisle Kilgo as president. Kilgo’s background as a financial wizard was one of the reasons Trinity looked to him, as the country was just coming out of the 1893 depression, it also didn’t hurt that he was a close friend to the Duke family (“Trinity College Presidents, n.d.). In 1896 that friendship proved to beneficial to Trinity when Washington Duke donated $100,000 and agreed to two more similar endowment donations in 1899 and 1900 with the caveat “that women be admitted and treated equally at Trinity” (McCormick Harlow et al, n.d., “Washington Duke donates”). With the Duke family eager and willing to provide more financial support to Trinity, then president William P. Few, took his plans to transform the school from a college into a university to Benjamin Duke the elder son of Washington Duke (King, n.d.). It was at that time that the school enlisted the financial backing of the younger and most wealthy Duke child, James B., who created the “The Duke Endowment, a $40 million trust fund” (King, n.d., para. 7), which pushed Trinity one step closer to elite. Figure 2. Trinity College Seal. (Duke University Libraries, 2013)

Evolution to Elite 1924 – Duke University 1926 – 1930 – Graduate School of Arts & Sciences School of Religion 1930 – Women’s College Trinity College The School of Medicine School of Law reorganized 1931 – School of Nursing 1938 – School of Forestry 1939 – College of Engineering established 1969 – School of Business Administration 1972 – Trinity College of Arts & Sciences reorganized 2016 – Nationally Ranked # 8 In light of Duke family endowment, Trinity College was renamed Duke University in 1924 at the behest of President Few (King, n.d.). Once Duke had the capital in place, the growth that ensued starting in 1926 with the opening of the Graduate School of Arts & Sciences and the School of Religion, through 1939 with the establishment of an official School of Engineering “was a greater transformation in a shorter period of time than had ever occurred in the history of higher education in the South” (King, n.d., para. 8). Each educational advancement shown here was one step in the evolution to elite for Duke University and a dream come true for the Duke family as their investments were being realized through educational opportunities. By 1969 with the unveiling of the School of Business Administration all of the Duke family wishes, especially those of James B., had been fulfilled (King, n.d.). Duke University has come a long way from that one room schoolhouse you saw on slide one, and has done so through adaptability, fore thinking, and a pioneering spirit in the civil and women’s rights movements. And these are big reasons why Duke is currently ranked number eight in the nation by the U.S. News & World Report website (2014). Figure 3. Duke Chapel. (U.S. News & World Report, Education, n.d.)

Carnegie Classification™ As I mentioned, Duke is the number eight university in the country and it goes without saying its evolution to elite has truly been remarkable, but how does Duke compare with other universities in the nation? From the table you can see the category for each Carnegie Classification™ for Duke. I won’t bore you by reading them, but I will tell you that based on The Carnegie Classification of Institutions of Higher Education™ website, Duke is categorically in line with other large, selective, not-for-profit, research universities such as, Harvard and Yale in nearly all classifications. The only difference that can be seen between Duke and Harvard and Yale is in the undergraduate instructional program classification. Duke’s focus is on arts and sciences plus professions (“Duke University, Durham” 2013-14) but Harvard and Yale focus on arts and sciences only (“Harvard University,” 2013-14; “Yale University,” 2013-14). This indicates that Duke has less students in “bachelor’s degree majors in the arts and sciences” (“About Carnegie Classifications,” 2013-14) than do Harvard and Yale. The information learned from Duke’s ranking and Carnegie Classifications™ can be used by administrators to create and implement strategic planning initiatives in terms of bolstered recruitment efforts (both domestic and international); unique retention initiatives to include, financial aid, student services and engagement, and athletics; and increased development and annual giving campaigns. Table 1. Carnegie Classifications™ for Duke University. (The Carnegie Classification of Institutions of Higher Education™, 2013-14)

Leadership Structure Board of Trustees President Provost 37 members President Provost Organizational Chart 1 Executive Vice President/Treasurer Organizational Chart 2 Chancellor of Health Affairs President, Richard H. Brodhead Duke’s leadership structure is similar to that of most large universities across the nation. The Board of Trustees is comprised of 37 members, from all over the continental United States with one member from China (“Board of Trustees,” 2015-2016), and works in conjunction with the Office of the President. In my search for university organizational charts, I could not find one for the Office of the President, Richard H. Brodhead. However I can infer based on the organizational charts for the Office of the Provost and the Office of the Executive Vice President/Treasurer that the general reporting structure of Duke is typical of a private institution with a medical school, with the direct reports to the President’s Office consisting of the Provost, the Executive Vice President/Treasurer, and the Chancellor of Health Affairs (“Leadership Profiles,” n.d.). According to the organizational chart found on the Office of the Provost’s website [click Organizational Chart 1 link in PowerPoint to view], the Provost Sally Kornbluth, has many reports on the academic-side of the university, with direct reporting by the college Deans, the Vice Provosts, and other administrators in the remaining academic areas. The Executive Vice President/Treasurer, Tallman Trask III, operates on the business-side of the university [click Organizational Chart 2 link in PowerPoint to view]. The reporting structure of his office consists of Information Technology, Administration (Human Resources, Police, Parking), Finance, and Facilities as well as several other business offices (“Office of the Executive Vice President,” n.d.). The Chancellor of Health Affairs, A. Eugene Washington, directly reports to the Office of the President (“Leadership Profiles,” n.d.). His direct reports include the Deans of both the School of Medicine and the School of Nursing (“Office of the Provost,” n.d.). Executive Vice President/Treasurer, Tallman Trask III Provost, Sally Kornbluth Chancellor of Health Affairs, A. Eugene Washington Figures 4, 5, 6, 7. Duke Leaders. (“Leadership Profiles,” n.d.)

Financial Profile –Revenue Sources The last item to explore is Duke’s financial profile, which is typical of other large, private, not-for-profit, research universities. According to the data provided by the Integrated Postsecondary Education Data System (IPEDS) website, the majority of Duke University’s revenue, 47%, is realized from investment return, followed by 21% coming from private gifts, grants, and contracts, that puts Duke on the same revenue plane as Harvard with 61% in investment return and 14% from private gifts, grants, and contracts and Yale with 65% in investment return and 8% from private gifts, grants, and contracts. Because Duke is a private institute there are no appropriations from the state or local governments, however it does receive about 15% of its revenue from federal government grants and contracts, which is typically earmarked for research. Tuition and fees at Duke makeup 11% of its revenue with the final 6% coming from other core revenues. It is easy to see that Duke’s investments are the cornerstone of its revenue stream. Figure 8. Duke Financial Profile – Revenue Sources. (National Center for Education Statistics, IPEDS, 2014)

Financial Profile - Expenses On the expense end of the balance sheet Duke’s two biggest expenditures are instruction at 40% and research at 39%. The remaining 21% of expenses is comprised of 9% in institutional support, 7 % in academic support, 3% for student services, and 2 % in other core expenses. How the university spends its money differs somewhat from that of Harvard’s 30% for instruction, 22% in academic support, and 21% for research and Yale’s 50% for instruction, 16% for research, and 12% in academic support. There are two main take-aways from Duke’s financial profile.  First, Duke is committed to ensuring that students are taught by highly touted faculty and have the resources needed to be successful in the classroom, as well as having access to top-notch research minds and facilities.  Secondly, it shows that with only a small portion of its revenue coming from tuition and fees that the university is ardent in relying on other sources of revenue while keeping the tuition and fees at a competitive level for a private institution.  In looking at how universities receive and spend their revenue they can be likened to snowflakes.  Just as no two snowflakes are exactly alike, no two university’s financial profiles are exactly alike.  There are certain nuances within revenue sources and expenditures that make each unique in spite of the similarities within the institutional types.  Figure 9. Duke Financial Profile – Expenses. (National Center for Education Statistics, IPEDS, 2014)

Thank You Any Questions?

References The Carnegie Classification of Institutions of Higher Education™ (2013-14). About Carnegie Classification. Retrieved from http://carnegieclassifications.iu.edu/ The Carnegie Classification of Institutions of Higher Education™ (2013-14). Duke University, Durham, North Carolina. Retrieved from http://carnegieclassifications.iu.edu/lookup/view_institution...urban%22%3A%22%22%7D The Carnegie Classification of Institutions of Higher Education™ (2013-14). Harvard University, Cambridge, Massachusetts. Retrieved from http://carnegieclassifications.iu.edu/lookup/view_institution.php?unit_id=166027&start_page=lookup.php&clq...urban%22%3A%22%22%7D The Carnegie Classification of Institutions of Higher Education™ (2013-14). Yale University, New Haven, Connecticut. Retrieved from http://carnegieclassifications.iu.edu/lookup/view_institution.php?unit_id=130794&start_page=lookup.php&clq...urban%22%3A%22%22%7D Duke University (2015-2016). Board of Trustees. Retrieved from https://trustees.duke.edu/board-trustees-2015-2016 Duke University (n.d.). Leadership Profiles, Retrieved from https://duke.edu/about/leadership/ Duke University (n.d.). Office of the Executive Vice President. Retrieved from http://evp.duke.edu/documents/2014%20EVP%20Org%20Chart.pdf Duke University (n.d.). Office of News & Communications. Quick Facts About Duke. Retrieved from http://newsoffice.duke.edu/all-about-duke/quick-facts-about-duke.html#buildings Duke University (n.d.). Office of the Provost. Retrieved from http://provost.duke.edu/wp-content/uploads/Org-chart-January-2016-v2.pdf Duke University Libraries, (n.d.). Trinity College Presidents. Retrieved from http://exhibits.library.duke.edu/exhibits/show/presidents/presidents/trinity King, William E., (n.d.). Duke University: A Brief Narrative History. Retrieved from http://library.duke.edu/rubenstein/uarchives/history/articles/narrative-history McCormick Harlow, M., 175th Anniversary Intern, & the Duke University Archives, (2013). Duke University Libraries, Biographical History. Retrieved from http://library.duke.edu/rubenstein/collections/corporations/dukeuniversity/ National Center for Education Statistics (2014). [Graph illustration Duke University Finance]. IPEDS. Retrieved from http://nces.ed.gov/ipeds/datacenter/InstitutionProfile.aspx?unitId=acb4b3afacb4 U.S. News & World Report, Education (n.d.). Duke University Photos. Duke Chapel [Image file.] Retrieved from http://colleges.usnews.rankingsandreviews.com/best-colleges/duke-university-2920/photos U.S. News & World Report, Education (2014). National Universities Rankings. Retrieved from http://colleges.usnews.rankingsandreviews.com/best-colleges/rankings/national-universities/data