1. Kenyon College Endowment History Kenyon College Endowment Answering Questions

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

3. Kenyon College Endowment History What is Kenyon’s endowment now? $192.9 mm as of 6/30/07 $125.5 mm as of 6/30/03 $117,000 per student

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

5. Kenyon College Endowment History A Strong Start… The very first gifts to Kenyon (of $30,000) received by Philander Chase from “the benefactors” were intended to serve as an endowment, to be used for the "permanent benefit of this and future generations." As such, Chase 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. Kenyon College Endowment History …that was short-lived The gifts sought from American citizens did not come through and the 8,000 acres dwindled to finance the building and operation of the College for years to come.

7. Kenyon College Endowment History William Foster Peirce, 1896-1937 Transformed the College during his 41-year tenure as president Relentless fundraiser who tried in earnest to build Kenyon’s endowment 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. Kenyon College Endowment History 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. Kenyon College Endowment History 1964–67: A time of reckoning In 1964, prominent theme of Kenyon’s reaccreditation: "The paramount problem at Kenyon is financial." The college separated financially from Bexley, eliminating $18,000 of its annual operating deficit and withdrew the KR subsidy, saving another $24,000. Kenyon developed a plan to expand enrollment from 750 to 1,250 by creating a coordinate college for women.

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

12. Kenyon College Endowment History 1966-81

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

14. Kenyon College Endowment History 1982-2000: The bull market Kenyon's endowment increased almost every year from 1975 to 2000, from $7.5 million to $144 million But the gap between the smaller and larger endowments widened exponentially…

15. Kenyon College Endowment History Illustration An endowment of $100 million at the start of 1982, growing at the same rate as the DJI over the next 18 years, would have been $1.2 billion in 2000. Kenyon's starting point was $10 million and while over that period our returns were parallel to the DJI, our endowment in 2000 was $144 million. A $90 million difference at the start of the market run ended up as a difference of more than $1 billion

16. Kenyon College Endowment History Endowment Growth the Stock Market

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

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

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

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

21. Kenyon College Endowment History Kenyon has many financial strengths Streak of 37 consecutive years with a balanced budget Most selective college in Ohio at 28% acceptance rate 100% increase in applications in past two years Top quintile in AAUP faculty salary rankings AA bond rating from S&P and Moody’s Over $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. Kenyon College Endowment History The Importance of the Annual Funds While Kenyon has less endowment income than our peers supporting the operating budget, we have a larger amount of operating gift support in the budget than some of our peers. A $100,000 increase in the Kenyon Fund and Kenyon Parents Fund totals is equivalent to the income from $2,000,000 in endowment.

23. Kenyon College Endowment History

24. Kenyon College Endowment History

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

26. Kenyon College Endowment History How to Build Endowment  Exceptional investment returns  Imminent opportunities/change  Fundraising focus

27. Kenyon College Endowment History Endowment Investment Returns 16.2% in FY 07 – NACUBO-ranked top decile performer At August 31, 2008

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

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

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

31. Kenyon College Endowment History Focus: Make Endowment a Priority In Kenyon’s three campaigns since 1969, only 35% of all gifts raised were designated for endowment CampaignEndowmentTotal Raised Program for Expansion 1967$335,000$18,500,000 Campaign for Kenyon 1984- 9 12,000,00036,000,000 Claiming Our Place 1996- 2001 44,000,000$116,000,000 Total$56,335,000$160,500,000

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

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

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

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

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

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

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

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

40. Kenyon College Endowment History Needed$ Committed % of $$ Achieved $20 million+$20,000,000$26,718,000 134% $10 million+40,000,00021,625,725 56% $5 million+25,000,00011,817,889 47% $2 million30,000,00013,216,750 44% $1 million35,000,00016,527,983 47% $500,00017,500,00010,400,256 59% $250,00010,000,0006,976,617 70% $100,00010,000,0006,591,336 66% $50,00012,500,0003,959,746 32% Other30,000,00012,631,176 42% Total$230,000,000$130,465,478 56% Number of gifts Number needed 11 24 25 412 1335 1735 2140 49100 62250 many 181474 Gifts by Level At January 31, 2008

41. Kenyon College Endowment History Campaign Results At January 31, 2008 l Endowment CommittedGoal% Achieved Financial Aid$41,829,013$70,000,000 60% Faculty Development and Student Research6,994,25151,000,000 14% Kenyon Review1,606,4155,000,000 32% Other Endowment2,270,705 Total Endowment $52,700,384$126,000,00042% Programs Arts Facilities$27,777,423$34,000,000 82% Dining Program18,788,10025,000,000 75% Student Residences955,00012,000,000 8% Health Center, VI, other Village563,0003,000,000 19% English Houses, Neff, O'Connor House1,814,0002,000,000 91% Total Programs 52,205,34376,000,00069% Philander Chase Corporation2,099,6114,000,000 50% Annual Operating Funds 15,730,84624,000,000 66% Other Academic and Institutional Support5,783,255 Unassigned Gifts1,946,039 Total$130,465,478230,000,00056%

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