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Opening New Doors Thank you for helping us Air Force Museum Foundation, Inc. open the doors! 2016 Annual Report AIR FORCE MUSEUM FOUNDATION, INC. Honoring every Airman’s story with a permanent home to inspire future generations 1100 Spaatz Street Wright-Patterson AFB, OH 45433 Phone: 937-258-1218 www.afmuseum.com FOLLOW US OPENING NEW DOORS The Air Force Museum Foundation, Inc., is a Section 501(c)(3) private, non-profit organization. It is not part of the Department of Defense or any of its components, and it has no government status. You Opened New Doors in 2016, Thank You! Air Force Museum Foundation Supporters Fourth Building Leadership Contributors Dear Friends, Through the generous support of members and contributors like you, the Air Force Museum Foundation funded 100 percent of the cost to design, construct, and outfit the new building, which was a proud accomplishment. Opening the doors to the National Museum of the United States Air Force’s new fourth building made 2016 a milestone year for both the Museum and the Air Force Museum Foundation. The June grand opening—eagerly awaited and enthusiastically attended—was a tremendous success and underscored our important partnership with the Museum. Mr. W. Craig Willan Even as the Museum staff opened new doors to aviation and aerospace exhibits, more importantly, they opened young minds to science, technology, engineering, and mathematics (STEM), through the fourth building’s three STEM Learning Nodes. The Museum’s focus on educating its young visitors through technology-enhanced active learning and hands-on 2016 Building and Education Fund demonstrations is particularly inspiring, and I’m proud to be part of the team that helped make Ohio CAT Mr. Walter Curtis Keal III it happen. The Ozmen Foundation, on behalf of Sierra Nevada Corporation Mr. Reginald Pudlow Mr. Guy L. Bugbee Mr. Daniel J. Crumlish Mr. Tim White Mr. Tim L. Shermer I am pleased to report another year of financial and operational successes for the entire PepsiCo Col Norman H. Happel, USAF (Ret) Foundation family. The Air Force Museum Store achieved record sales with their unique Ms. Susan A. Andrews Mr. & Mrs. Mohan R. Nuthakki In memory of the 79th Fighter Group Mr. & Mrs. Robert C. Lorenzetti products and commitment to customer service, both in the store and on their newly redesigned Mr. Richard A. Newbould e-commerce site. The Air Force Museum Theatre and Simulators made aviation come alive In memory of the 79th Fighter Group for the visiting public through special movie events and engaging new technologies. The Valkyrie Café offered an expanded menu, and the new and improved Refueling Café garnered rave reviews for its unique menu. The Development team continued to foster the “Culture of 2016 Major Contributors $2,500+ Philanthropy” throughout the Foundation and in its Friends program with a focus on donor- centered leadership. MSgt Gerald L. Buit, USAF (Ret) Covelli Enterprises - Panera Bread Col William J. Schwehm, USAF (Ret) Anonymous Contributor Ms. Doris A. Mleczko Mr. William H. Walton Jr. The Spurlino Foundation Mr. & Mrs. Leon A. Mensing AAA Miami Valley My sincere thanks to our Foundation Friends, volunteers, and community partners for your Mr. Clair W. Potter Mr. Lawrence S. Foster MSgt Randall C. Hatem, USAF (Ret) Mr. Philip L. Soucy Dr. Thomas J. Burns, PhD Col Dean Clemons steadfast support in opening new doors in 2016! Ms. Frances A. Duntz Col Mona R.M. Vollmer, USAFR (Ret) Mr. David C. Evans Gen Gary L. North, USAF (Ret) Combined Federal Campaign - Miami Valley Mr. Robert J. Suttman II, CFA Dr. Pamela A. Drew Mr. John H. Klette Jr. MSgt David C. Stricker, USAF (Ret) Ms. Anita O. Emoff Lt Gen Richard V. Reynolds, USAF (Ret) Mr. Jeffrey Levine Col Mark N. Brown, USAF (Ret) Ms. Karen Johnson Maj Gen Scott Gray, USAF (Ret) Tawani Foundation Maj Thomas L. Davis, USAFR (Ret) Maj Luke Hagen Philip L. Soucy Chairman, Board of Trustees Partners and In-Kind Contributors Air Force Museum Foundation, Inc. Dayton International Airport Orbit Movers & Erectors, Inc. Greene County Convention & Visitors Bureau Our Vision Dayton Development Coalition Pulseworks LLC Ms. Frances A. Duntz Honoring every Airman’s story with a permanent home Dayton Power & Light Texas Roadhouse Fairborn Novachrome Digital Design & Imaging, Inc. Stowers Machinery Corporation (CAT) The Boeing Company MacAir Aviation LLC to inspire future generations Dayton Power & Light Dayton Montgomery County Convention & Kohler Foods, Inc Dayton Toyota Dealers Visitors Bureau, Inc. Mr. Louis C. Lindeman Cassano’s The Pizza King General Atomics Aeronautical Systems Furst The Florist, Inc. Our Mission Cox Media Group Ohio Deloitte Ed Smith Flowers & Gifts, Inc. Raise funds and awareness to support Key-Ads, Inc. PNC Foundation The Oakwood Florist the National Museum of the U.S. Air Force mission For a complete list of all contributors, visit www.afmuseum.com/2016annualreport 5 In Appreciation “Thank you for helping us open new doors— we couldn’t have done it without you” Reflecting on the tremendous success of the fourth building’s grand opening in June 2016, I appreciate the strong partnership between the Museum and the Air Force Museum Foundation which made this magnificent new building possible. Thanks to their dedicated efforts to fund 100 percent of the new building, including two new STEM Learning Nodes—with the generous support of stakeholders like you—we are better able to execute our mission of telling the Air Force story to the American public and inspiring our youth. Our partnership grows stronger each year, along with our ability to bring the great stories of the men and women associated with the artifacts on display to life in our four new galleries and STEM Learning Nodes. Thank you for helping us open new doors. We couldn’t have done it without you! Lt Gen John L. “Jack” Hudson, USAF (Ret) Director, National Museum of the U.S. Air ForceTM Board of Trustees 2016 Pictured (Left to Right) Gen Charles T. Robertson Jr., USAF (Ret); Ms. Frances A. Duntz; Mr. Benjamin T. Guthrie; Mr. Robert J. Suttman II, CFA – Treasurer; Col James B. Schepley, USAF (Ret) – Vice President; Col Mark N. Brown, USAF (Ret); Col Susan E. Richardson, USAF (Ret) – President; Mr. Harry W. (Wes) Stowers Jr.; Mr. Philip L. Soucy – Chairman; Brig Gen Paul R. Cooper, USAF (Ret); Mr. David C. Evans; Gen Gary L. North, USAF (Ret); Maj Gen Frederick F. Roggero, USAF (Ret); Lt Gen C.D. Moore II, USAF (Ret) – Secretary Not Pictured: Mr. John G. Brauneis; Dr. Thomas J. Burns, PhD; Dr. Pamela A. Drew; Mr. Roger D. Duke; Ms. Anita Emoff; Col Frederick D. Gregory Sr., USAF (Ret); Maj Gen E. Ann Harrell, USAF (Ret); Brig Gen Allison Hickey, USAF (Ret); Mr. James L. Jennings; Mr. Gregory G. Lockhart; Maj Gen Darryl A. Scott, USAF (Ret); Mr. Scott J. Seymour; Mr. Erik D. Smith 1 Core Business Units Development and Membership Thank you for an amazing year! We enthusiastically welcomed 2,070 new members and were delighted when more than 9,000 members chose to renew their support of the Museum’s mission. Your generous contributions combined with our partners’ support raised $2.68M in 2016. The highlight of the year was when you helped us celebrate the fourth building grand opening. We will always cherish the entertainment, food, and new experiences we shared with you. Thank you! Air Force Museum Store A newly launched online store and the continual focus on customer service contributed to the Museum Store’s record year. Sales reached $2.98M, an increase of 16 percent over 2015. Technology upgrades, including the introduction of an iPad mini point of sales system, allowed the dedicated Store staff to flexibly support sales for Museum and Foundation events. Air Force Museum Attractions Museum visitors experienced the thrill of flight in unique and exciting ways in 2016. The Theatre premiered the new film Carriers, brought Hollywood to the Museum each month with the Hollywood Film Series, and made history come alive through film and guest speakers as part of the Living History Film Series. New simulators in the fourth building included the Pulseworks Virtual Reality Transporter, which is the first of its kind in North America. The enthusiastic response from engaged visitors helped drive sales to $1.19M. Valkyrie and Refueling Cafés The Valkyrie and Refueling Cafés continued to raise the bar on the visitor dining experience in 2016. Total Café sales reached $1.23M, 18 percent over 2015. From an ever-expanding menu to appeal to evolving consumer tastes, to the newly remodeled Refueling Café beating sales expectations, the partnership with the 88th Air Base Wing Force Support Squadron continues its positive contribution to the Museum Visitor experience, as well as the Foundation’s financial success. 2 Financials Operating Revenue Operating Expenses Other Membership General & 6% 12% Admin 10% Café Museum Advertising/ Cost of 6% Store Marketing Goods Sold 59% 3% 32% Café 1% Attractions $5,079,330 Operations $3,934,377 10% Attractions 23% Compensation & Benefits 38% Operating Units In 2016 revenue from the Foundation’s operational units exceeded operating expenses by $1.14M, a 101 percent increase over budget. Building on the successes of 2015, the Foundation’s continued commitment to excellence once again delivered operational efficiency improvements and overall administrative expense reductions. In addition our business units continued to adopt engaging and innovative ideas to enhance the visitors’ experience, especially in the Museum Store, Attractions, and Cafés. Non-Operating Revenue* Non-Operating Expenses Donated to the Investment Air Force for Income Museum infrastructure 7% 4% Compensation Other & Benefits 31% 21% $2,235,456 $942,476 Development 93% Advertising/ Marketing Museum 7% Program Support** General & 29% Admin 8% Non-Operating Units The Foundation’s non-operating revenue included estate contributions, fourth building fundraising, other donations, and investment income.
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