1. DAEDALIAN FOUNDATION ANNUAL MEETING CHAIRMAN MAJOR GENERAL D. BRUCE SMITH

2. MISSION This Foundation, affiliated with and sponsored by the Order of Daedalians, Inc., promotes citizenship, education, and charity. The Foundation has been organized and incorporated for the promotion and encouragement of safety in flight through charitable and educational means. The Foundation’s goal is to perpetuate the spirit of patriotism, the love of country, and the high ideals of the self-sacrifice exemplified by the American pilots of World War I in whose honor the Order of Daedalians was founded. The Foundation shall be operated exclusively for said purpose and not for profit. No part of the capital or earnings of the Daedalian Foundation shall inure to the benefit of any member of the Order of Daedalians or any other individual except as may be necessary in carrying out the objectives and purposes of the Foundation as stated in its charter. No part of its activities shall be employed to carry on propaganda or otherwise attempt to influence legislation or to intervene in any political campaign.

3. WHAT WE DO! Scholarship Programs Cadet Flight Indoctrination Programs Award Programs JROTC

4. DAEDALIAN FOUNDATION SCHOLARSHIPS – CY 2012 AWARDS # BUDGET FUNDED % Egan Mentoring 5 $27,000 $27,000 100 Egan Mentoring 5 $27,000 $27,000 100 CAP Grants 5 8,000 4,200100* CAP Grants 5 8,000 4,200100* Matching 65 67,871 64,334 95 Matching 65 67,871 64,334 95 Jr. ROTC Medals - 7,700 7,073 92 Jr. ROTC Medals - 7,700 7,073 92 ROTC/Getchell 13 38,000 26,000 68 ROTC/Getchell 13 38,000 26,000 68 Descendants 5 6,000 10,000167 Descendants 5 6,000 10,000167 Spencer 9 - 6,750 - Spencer 9 - 6,750 - Symposium - 0 5,411 - Symposium - 0 5,411 - CFIP-Hill/Leavoy 15 19,000 16,960 89 CFIP-Hill/Leavoy 15 19,000 16,960 89 Other - 6,000 - Other - 6,000 - Totals 117 $179,571 $162,317 90 Totals 117 $179,571 $162,317 90 Compare: CY11 110 $167,650 $153,223 91

5. DAEDALIAN FOUNDATION Flight Matching Scholarships Foundation matches up to $2,000/Flt./CY. Recipient must have desire and potential to become a military pilot. Recipient may be either a college student or HS senior, accepted by a university.

6. CADET FLIGHT INDOCTRINATION PROGRAM   Four way partnership of Daedalian Foundation, Daedalian flight, selected candidates and an FAA-certified flight training facility to provide motivational flight training up to solo phase   Five Phases – –Preparation – –Cadet selection – –Ground school – –Flight camp – –Wrap up Eagle Wing donations support CFIP too! Les Leavoy CFIP $ 6,500 Tex Hill CFIP $15,000

7. Flt 1 Founders Flt 2 Stinsons Flt 8 Kitty Hawk Flt 9 Frank P. Lahm Flt 13 San Diego Flt 16 LeMay Flt 23 DFW Flt 30 Arnold Flt 38 Longhorn Flt 53 Granite State Flt 61 Seagull Flt 103 Ft Hood PARTICIPATING FLIGHTS 2000-2012 2000-2012

8. PARTICIPATING FLIGHTS 2013 Flt 1 Founders Flt 2 Stinsons Flt 8 Kitty Hawk Flt 13 San Diego Flt 16 LeMay Flt 23 DFW Flt 30 Hap Arnold Flt 38 Longhorn Flt 61 Bud Day Flt 103 Ft Hood

9. TRAINING COSTS PER CADET 2007200820092010201120122013 - $1736 - $2250 - $2235 - $2159 - $1713 - $2244 - $2300 (Estimate)

10. 166 SOLOED CADETS 200120022003200420052006 - 5 - 7 - 14 - 16 2007200820092010201120122013 - 19 - 23 - 21 - 17 - 15 23 In Training

11. JROTC AWARDS FOR 2012   $7500 spent on this program   72 Daedalian flights participated   1173 medals sent to participating flights for their local high schools   Includes 15 DoD overseas high schools

12. EDUCATIONAL AWARDS EDUCATIONAL AWARDS LIEUTENANT GENERALS MILLARD F. & HUBERT R. HARMON: Presented annually to the USAF Academy Outstanding Cadet GENERAL MUIR S. FAIRCHILD EDUCATIONAL ACHIEVEMENT: Selected annually by the Air University Commander for the most significant contribution ORVILLE WRIGHT ACHIEVEMENT: Presented to the outstanding pilot graduates of the pilot training schools of the USAF, USN and USA. DAEDALIAN JROTC ACHIEVEMENT: Presented annually to outstanding high school cadets at participating schools.

13. EAGLE WING DONATION CHANGES A four (4) member committee was tasked to recommend A four (4) member committee was tasked to recommend ways that Eagle Wing donations could be enhanced to encourage more and possibly higher donation levels. ways that Eagle Wing donations could be enhanced to encourage more and possibly higher donation levels.  Purpose being to counter the rising cost of college tuitions and CFIP  Foundation passed and Order concurred with revisions at July meeting  The new Eagle Wing donation Titles and Donation levels are below  The only change made was to raise “Wing CO Exemplar” level to $2000  Those now at that level are “Grandfathered” (~ 90)  At the “Pilot” level the Eagle Wing Lapel Pin is awarded  Requires one time entry donation of $100+  Once at the Pilot level any amount of donation will count toward the next higher level. count toward the next higher level. Eagle Wing LevelDonation $ Pilot$100 Element Leader$250 Flight Leader$500 Squadron Commander$750 Wing Commander$1,000 Wing Commander Exemplar $2,000

14. ADDED EAGLE WING DONATION LEVELS EAGLE WING "ACES" Eagle Wing Aces Level Eagle Wing "Ace"$5,000 Eagle Wing "Double Ace"$10,000 Eagle Wing "Triple Ace"$15,000 Eagle Wing "Ace of Aces"$20,000  All Eagle Wing levels will be based on historical donation data once past the initial $100 Pilot Level.  Any donor who reaches or exceeds the $10,000 level will receive a trophy  This trophy is of a Soaring Eagle as shown at the right  The dollar donation levels for the new “ACE” levels are as shown.  At the first Aces level, the Eagle Wing lapel Aces pin will be awarded.  It will be small set of wings (1¼”) as shown here.

15. “EAGLE WING ACES ” “EAGLE WING ACES ” COL ROBERT H CAMPBELL, USAF (RET) BRIG GEN KENNETH F KELLER, USAF (RET) COL JAMES W. KELLOGG, USAF (RET) COL ANTHONY G "Bud" KENDRICK, USAF (RET) COL CLAIR W POTTER, USAF (RET) LT GEN RAY B SITTON, USAF (RET) COL DONALD W SPEAREL, USAF (RET)

16. DONATIONS 2009 2010 2011 2012 2013* $126,693 $149,097 $168,037 $126,987 $24,939 * 2013* - ARE FUNDS COLLECTED PRIOR TO THE ANNUAL DONATION CAMPAIGN

17. TREASURER REPORT Net Assets $ 1,714,556 Foundation$ 1,714,556 Egan Scholarship$ 1,642,529 Tex Hill Scholarship$ 115,500 Leavoy$ 57,677 Spencer$ 28,404 Nissen$ 58,151 $ 3,616,817 IncomeIncome Donations$ 210,085 Investments$ 123,236 Order-Services Rnd$ 42,542 $ 375,863 ExpensesExpenses Flyer$ 58,965 Flyer$ 58,965 Scholarships$ 162,317 Operating Expenses$ 68,568 $ 289,850 2012

18. FINANCIAL COMPARISON $ 3,370,381 $ 3,401,824 $ 3,616,817 Net Assets $ 3,135,241 $ 3,370,381 $ 3,401,824 $ 3,616,817 Income $ 414,828 $ 523,102* $ 327,730 $ 375,863 Expenses $ 289,064 $ 317,694 $ 288,086 $ 289,850 2009 2010 2011 2012 * Denotes that the Order made a donation to the Foundation for the National Flight Academy

19. An independent audit was completed 29 March 2013 using the General Accounting Principals giving an Unqualified Opinion. An Auditor gives a Clean Opinion or Unqualified Opinion when he or she does not have any significant reservation in respect of matters contained in the Financial Statements An independent audit was completed 29 March 2013 using the General Accounting Principals giving an Unqualified Opinion. An Auditor gives a Clean Opinion or Unqualified Opinion when he or she does not have any significant reservation in respect of matters contained in the Financial Statements. 2012 AUDIT