2004 Annual Report Contents:

2 The Executive Message 4 The Science Museum 12 Center for Innovation in Science Learning 16 The Franklin Center 22 Financial Report 24 2004 Contributed Support Image: Fels Planetarium dome. 33 Board of Trustees c2c2 In the spirit of inquiry and discovery embodied by Benjamin Franklin, the mission of The Franklin Institute is to inspire an understanding of and passion for science and technology learning.

—Franklin Institute Mission Statement

An institution’s achievements are often measured in terms of revenue and attendance, but statistics tell only part of the story. The Franklin Institute’s ability to touch lives—influencing everyday decisions, directing careers and inspiring a life-long passion for science and technol- ogy learning—is the ultimate measure of its success. The Franklin Institute’s mission is the backbone of its exhibits, education programs, Web development, even The Franklin Institute Awards. More than ten years ago the Board of Trustees approved the Strategic Plan for 1996-2005 and launched a $50 million capital campaign to support the mission. The campaign raised a whopping $61.7 million; the Strategic Plan was revised and expanded to cover 2003-2008 and beyond. By the end of 2004, with six phases of its Strategic Plan completed, The Franklin Institute was already positioned for a different future. The Franklin Institute had undergone a renais- sance. Its future as a premier science education institution and destination attraction, a force in introducing millions to the excitement of science learning, had begun.

1 Executive Message Positioned for a very different future.

In 2004 The Franklin Institute realized The success of Titanic: The Artifact Exhibition created a the full benefit of its successful $61.7 new template for the Institute’s revenue and attendance million capital campaign. With 100,000 square feet of new exhibits and visitor structure that will help advance our mission into the service areas, a new planetarium and next decade. refurbished theaters already in place, the Institute opened both Titanic: The Artifact Exhibition and The Giant Heart, Institute’s increased attendance and exhibits with broader demographic and attracting 1,028,586 visitors—the highest resulting modest budget surplus is geographic appeal, we expect that trend attendance in its history. Admission especially impressive at a time when to continue. To that end the Institute revenue grew 43 percent over the previ- museums nationwide are struggling to has scheduled Gunther von Hagens’ ous year, heightening national public maintain audience and balance their BODY WORLDS: The Anatomical Exhibi- awareness of the Institute and attract- budgets. tion of Real Human Bodies, opening in ing a record 12.5 million individual The Giant Heart: A Healthy Interactive October 7, 2005 and Tutankhamun and visitors to its Web site. Experience opened on October 1, The Golden Age of the Pharaohs, opening The success of Titanic: The Artifact contributing to the growth in attendance. in February 3, 2007. Exhibition created a new template for A Philadelphia icon for the past 50 the Institute’s revenue and attendance years, the walk-through heart is, today, Youth Education structure that will help advance our the centerpiece of a multi-generational The Institute is the beneficiary of many mission into the next decade. Previ- heart health and wellness experience, donors, both public and private, as ously, limitations on physical space made possible by the generosity and highlighted on pages 24 to 32. We are restricted the Institute’s opportunities foresight of many donors. Merck & Co., especially grateful to the Common- to schedule traveling exhibits. The Inc. and The Merck Company Founda- wealth of Pennsylvania for its strategic planning and campaign fund- tion provided a lead gift of $2 million; unwavering support, which this year ing enabled the Institute to renovate a other major supporters included The included a $699,000 operating grant, large percentage of its public space, Heart Center at Lankenau Hospital, the and to The Pew Charitable Trusts for its including Pepper Hall, which was made National Center for Research Resources three-year, $810,000 operating grant available for major new exhibitions and at the National Institutes of Health, and through its Philadelphia Cultural Leader- programs. This, combined with the the F.M. Kirby Foundation. Still other ship Program. Proceeds from Franklin expansive Upper Mandell Center special individuals and institutions contributed Family Funfest and The Franklin exhibit gallery, gives the Institute one of funding, equipment and/or professional Institute Awards Dinner, as well as the largest special exhibition spaces expertise. donations to the Institute’s Access of any museum in the region and room Clearly the Institute demonstrated program, enabled 20,805 students from to bring blockbuster educational that, given strong exhibits and low-income area schools to visit free of exhibits to Philadelphia. The expense programs, as well as good promotion, it charge. A total of 328,410 paid school associated with the 15,000-square-foot is possible to increase attendance to and youth groups visited at already Titanic exhibition necessitated an become the highest of any museum in reduced group rates. admission surcharge for Titanic and its the Commonwealth, and one of the Outreach initiatives such as Parent enlightening audio tour. By the time the highest of any science center in the Partners in School Science with the exhibit closed on January 23, 2005, a nation. With the facilities and support School District of Philadelphia, and total of 354,487 people had seen it. The services in place to accommodate larger Partnerships for Achieving Careers in

2 William J. Avery Dennis M. Wint Chairman President & CEO

Technology and Science (PACTS)—our Recognizing Excellence In Appreciation career and leadership program for The Institute recognizes excellence On December 13, 2004, William J. Avery minority youth, are funded through every year by awarding its Benjamin stepped down as Board Chairman. His government, corporate and foundation Franklin Medals and Bower Awards to behind-the-scenes work on behalf of the grants. Together with fee-based world-class scientists and business Institute over the past six years has programs like Traveling Science Shows, leaders during a week-long celebration facilitated countless “miracles,” and his they extend science learning to diverse with academic symposia and public wise counsel helped steer the Institute audiences beyond the museum walls. programming. It is also important to through a highly successful capital acknowledge the Institute’s fine staff, campaign and to its current position of strength. The Institute and the commu- An Ongoing Process trustees and volunteers whose dedica- nity are so much richer for his years Strategic planning and the concomitant tion and hard work make the magic that of service. capital campaign have been fundamen- is The Franklin Institute. tal to the Institute’s many successes. In September 2004 Chief Astronomer With the first six new exhibits and Director of the Fels Planetarium completed by fall 2004, the Institute’s Derrick Pitts was named one of the “50 current Strategic Plan for 2003-2008, Most Important Blacks in Research Vision for the Future, calls for the instal- Science” by Science Spectrum and lation of five more permanent exhibits, Career Communications Group, Inc., exhibit upgrades, strengthening endow- for his life long work. Derrick, who ment and enhancing the Benjamin worked in the Planetarium as a student, Franklin National Memorial. is also a frequent guest media commen- Some initiatives mandated in the tator. Like his colleagues Dr. Dale Strategic Plan were less apparent to the McCreedy, who pioneered informal public. In 2004 the Institute began science education for girls, and Dr. replacing the roof, removing asbestos Wayne Ransom, whose professional where it existed, and pulling out radia- development programs for teachers tors—vestiges of the Institute’s have influenced the way science is antiquated steam heat system—as we taught in classrooms throughout the prepare for the installation of a new Commonwealth and beyond, Derrick HVAC system in the next phase of the has extended his knowledge of astron- plan. The Operations team’s ability to omy to millions of homes. handle portions of the renovations in- The Institute regrets the departure house and effectively coordinate with of two valued members of the Executive outside contractors enabled them not Staff, Kenneth E. Kirby and Rosalyn J. only to complete work on time and on McPherson, whose leadership helped us budget, but also to extend the scope of realize the “New Franklin Institute.” building improvements beyond those originally envisioned. William J. Avery Dennis M. Wint Chairman President & CEO

3 SCIENCE MUSEUM

4 The Franklin Institute’s renaissance was very apparent in the Science Museum. By October 2004, it had six of the eight planned campaign-funded exhibits, a new Digital Sky projec- tion system in the renovated Fels Planetarium, and inviting new public spaces. The 2004 Zagat Family Travel Guide named the Institute one of the 50 most popular attractions in the country—one of just seven museums nationwide.

5 Popular it was.

6 r it was.

7 Bustling with the success of Titanic: The Artifact Exhibition and The Giant Heart: A Healthy Interactive Experience, the Museum attracted 1,028,586 persons, an increase of 20% over the previous year. At year-end, three weeks prior to Titanic’s closing, 308,133 people had toured the exhibit. Visitors took advantage of extended weekend hours throughout the run of Titanic; between Christmas and New Years, a record 46,167 visitors came through the Museum. By closing date, the exhibit had captured the hearts of 354,487 visitors. Equally impressive were the 720,453 persons who came to see The Giant Heart and other exhibits (excluding Titanic) in the course of the year, signifying an increasing interest in Institute offerings as a whole.

The success of Titanic: The Artifact Exhibition was Thousands came to the Institute for the first time or maximized by the variety of promotional and fulfill- the first time in years; a large percentage left ment venues available to serve different audiences vowing they would return to experience the rest of and an extensive coordinated marketing effort the Museum again. supported by presenting sponsor The Inquirer and While Titanic set a precedent for traveling media partner NBC 10, as well as a network of part- exhibits, The Giant Heart took a departure from other ners including the Greater Philadelphia Marketing permanent exhibits, involving a variety of partners, and Tourism Corporation, and the Philadelphia including Merck & Co., Inc. and The Heart Center Convention and Visitors Bureau. at Lankenau Hospital, to create a more sophisti- Titanic delivered a personal experience, distin- cated in-depth experience that would provide guishing itself from so many other artifact exhibits. valuable information for teens and adults, while still Each visitor received a boarding pass with the name offering a multitude of eye-opening discoveries to of a passenger or crew member, their class of grade school students. The 5,000-square-foot passage, and a brief biography. Guests saw accom- exhibit, which was expanded 40 percent by incor- modations, dining facilities, and video of underwater porating an adjacent space previously occupied by wreckage, but did not learn if “they” had survived the Mother Earth Store, features the most up-to- until the exhibit’s end. date information about heart health, diagnostics, The impact of the Titanic exhibition was dramat- and treatment, as well as correlations to timely ic and memorable, as was the visitor’s introduction concerns with obesity, cholesterol, plaque and or reintroduction to The Franklin Institute. genetics. So beloved is the giant heart itself, that

8 press coverage included The New York Times, shows and demonstrations offered daily, Thomas Newsweek, The Boston Globe, Cleveland Plain Jefferson University helped the Institute obtain Dealer, U.S. News & World Report and some 150 ultrasound equipment and trained Museum staff to other publications in 24 states and Canada. use it to show visitors muscles and blood vessels in In the fall, the Institute also reached more than their arms. By year-end Interpreters had presented 3,500 persons attending 36 community and more than 1,887 live science shows to 130,000 museum-based heart health programs funded visitors, and they logged an amazing 25,500 hours through a Science Education Partnership Award from of floor demonstrations. the National Center for Research Resources at the National Institutes of Health. Other related programs Building and Maintaining Audience included Traveling Science Shows, home school The Institute experienced first hand the benefits of workshops, school class workshops, and community- offering a critical mass of exciting product, essen- based workshops for children and adults, all part of tial as museums compete with sports, home an effort to reach underserved communities. Heart entertainment, and the time constraints of today’s Fact posters funded by NIH were distributed to busy two-career families. Focused, experience- schools from Connecticut to Virginia through the specific messages heightened the impact of all Traveling Science Program. advertising campaigns, which were supported by Within the Museum live demonstrations by coordinated public relations initiatives. The success Museum Interpreters are perennial favorites. In of this two-pronged effort could be measured in addition to the dozen different live auditorium attendance, earned revenues, increased member-

9 ship and the many new faces in the Museum. Titanic attracted a broader demographic, while The Giant Heart drew significantly more adults than previous heart-related exhibits. With school children constituting almost 35 percent of Museum visitors, teachers are an impor- tant audience. More than 2,200 educators from as far as New York and Maryland attended the fall Educators’ Night Out to preview exhibits and shows and learn about onsite and outreach programs. Enthusiastic teachers reserved field trips for 6,500 students that evening alone. For the 2004-2005 school year, the Institute provided additional teacher support in a variety of ways, from incorpo- rating educator focus group input into redesigning the field trip planner, to featuring new free demon- Forces of Nature, Lewis and Clark, Bugs, Mysteries strations and live science shows supporting exhibits, of Egypt and Kilimanjaro: To the Roof of Africa. The to providing curriculum correlations for state and Fels Planetarium underwent the second phase of its national standards through the 12th grade. As a multi-million dollar campaign renovation in 2004, result, by the middle of October, field trips were with the installation of a Digital Sky projection booked to capacity through year-end. system, which provides high-resolution, full-dome The record attendance was accompanied by imagery with rich, full-color digital star fields. improvements in visitor services, including a new Presenters now have the flexibility to enhance ticketing system, online sales, and heightened staff shows by launching 3D computer models of astro- training. At the same time, the Institute identified nomical objects in real time. several areas that would be targeted for further In November the Planetarium introduced Friday improvement in the coming months, in preparation and Saturday evening showings of SonicVision, a for BODY WORLDS. next generation, digitally-animated rock show devel- oped by the American Museum of Natural History in The Theaters concert with MTV2 and musical/multi-media artist The Franklin Institute offers live science shows in its Moby. SonicVision is part of an initiative to build a Musser Demonstration Theater and Stearns Audito- young adult audience in the region. rium, the latest educational IMAX films in its Tuttleman IMAX Theater, and armchair astronomy of the next generation in its famous Fels Planetar- ium. IMAX films this past year included Titanica,

10 New Revenue Streams celebrated its 19th year with a Spy Camp theme The Institute is actively seeking to diversify its that afforded 9,878 campers, largely scouts, the revenue base. In 2004 the exhibits department opportunity to hone their observational skills and to completed two small traveling exhibits, A Forest “camp” overnight in a favorite exhibit. For those Journey and Nature’s Numbers, which began who preferred that The Franklin Institute come to touring to smaller science centers. Before year-end them, Traveling Science Shows reached 275,000 Powers of Nature, the Institute’s largest traveler, youngsters from Maryland to Connecticut. was fully booked for 2005. Discussions about establishing a consortium to develop planetarium Looking Forward shows moved forward. The Science Museum enters 2005 focused on a summer opening for Sir Isaac’s Loft, the seventh Providing Unique Experiences campaign-funded permanent exhibit, and an Generations of visitors have fond memories of The October 7, 2005 premiere of the 22,000-square Franklin Institute, but special Museum programs foot exhibit—Gunther von Hagens’ BODY such as Discovery Camp and Camp-In offer unusual WORLDS: The Anatomical Exhibition of Real opportunities for learning. Summer Discovery Human Bodies. Camp drew 467 campers over a 10-week period, while its spring break counterpart offered 237 youngsters an educational diversion during their vacation period. The overnight Camp-In program

11 CENTER FOR INNOVATION IN SCIENCE LEARNING

12 In 2004 the Center for Innovation continued to seize new opportunities to build on its nationally recognized strengths in science on the Web, profes- sional development for teachers, women in science, youth leadership, parent involvement and the history of science.

A Hidden National Treasure the sustained Unisys support for the Institute Web The Center for Innovation, in collaboration with the site since its launch in 1994. The result is a resource Franklin Center, has been a pioneer in the digital that can be used by anyone, from school children to presentation of the Institute’s unique artifact and Ph.D. historical researchers. document collections in the history of science. One such collection contains the Committee on Building Bridges between Teachers and Parents Science and the Arts’ 3,800 Case Files, containing Parent Partners in School Science (PPSS) finished its correspondence, drawings, patents and peer recom- third year of working with K-4 students, parents, mendations starting in 1834, as well as documents and teachers in three geographically and ethnically from 1824-1833 from the Institute’s Committee diverse elementary schools in the School District of on Inventions. These virtually unknown primary Philadelphia. Project evaluation shows that PPSS sources of the history of science in America are, in has demonstrated nationally significant strategies fact, national treasures. Through support from for building successful collaboration among teach- Unisys Corporation, the Center for Innovation ers, parents, and students through science-learning published a prototype online presentation of the activities, both at home and at school. “I am inter- Case Files, called “Scientists and The Franklin acting with parents more now,” says one teacher, Institute: Making Their Cases” (www.fi.edu/case_files). “because PPSS is being generalized to other The first two scientists whose files are featured are aspects of school life.” A parent reports, “You get William S. Burroughs (1897) and Elmer A. Sperry welcomed into the school. I got to talk to [my (1914), the progenitors of Unisys, in recognition of child’s] science teacher for the first time and see her

13 science classroom. It opened up different aspects of school for me.” Now in its third year, PPSS is supporting school teams which will sustain the key features of the project: Exploration Cards, sent home by teachers for parents and children to use in exploring science together, and Legacy Projects— including an in-school garden—which bring parents, teachers and students together for ongoing science activity. Primary funding for PPSS comes from the National Science Foundation, with additional support provided by The Patricia Kind Family Foun- dation, Dolfinger-McMahon Foundation and the Seligsohn Foundation.

Highly Qualified Teachers No Child Left Behind and many national studies identify highly qualified teachers as essential for student achievement in science. The Center for Innovation is a longstanding partner with the

School District of Philadelphia in programs nurtur- literature, social studies, mathematics and other ing teacher development in science. In 2004 the curricular areas. Center continued summer institutes and school year mini-courses designed for K-8 teachers. Courses Citywide Leadership for PACTS Students were aligned directly with the district’s curricular PACTS achieved citywide recognition in its 11th goals in science and were structured to provide year as the Institute’s signature leadership and teachers with deeper understanding of standards- science program for minority youngsters. Twenty- based science concepts, familiarity with hands-on one outstanding junior and senior students were science materials, and insight into the effective use selected as “Explainers” and served as Institute of online resources. In support of the Philadelphia junior staff. “Explainers” work in several depart- Math Science Partnership in particular, the Center ments and host PACTS-sponsored events for Innovation created online Curricular Compan- throughout the year. In January PACTS hosted the ions specifically geared to bolster designated Regional Robot Contest for 28 teams of students, science topics for grades 7 and 8, including an ages 9-14, their parents and friends. The following extensive section on tsunamis, following the month PACTS staff, students, and alumni launched disaster in Asia, in the companion on “Inside the the first “Careers in Science Day” for 500 high Restless Earth.” Teachers access the Curricular school students visiting the Institute. In May PACTS Companions directly from the School District Web hosted a town meeting, “Students Making a site for background resources, classroom material Difference,” which presented the results from the (including a gallery of visual images), and links to PEERS (PACTS Environmental Education, Research,

14 and Service) project, funded by the National Web site brought 12.5 million visitors (23 percent Science Foundation. Representatives from Unisys, over 2003) who accessed 74 million Web pages (70 which awarded five scholarships to PACTS graduat- percent over 2003) throughout the year at ing seniors, as well as the School District, Fairmount www.fi.edu. Files served increased 70 percent to Park, and the Philadelphia Water Department, 259,000,000. attended this event. And in August, PACTS students Ten years after the Institute first ventured into won the first place award for the City’s YouthWorks the Web, through the Center for Innovation, it Work Ready summer program. Some 7,000 students became one of the first science centers to join the participated in the City’s program. Funding for international Internet2 network, at the invitation PACTS is provided by The Aramark Charitable of MAGPI, the Mid-Atlantic Manager for Internet2 Fund, GlaxoSmithKline, The Janus Foundation, housed at the University of Pennsylvania. Internet2 Rohm & Haas Company, Unisys Corporation and is a regulated private network, led by major universi- the Verizon Foundation. ties and laboratories around the world; it operates at extremely high bandwidth to enable high-definition The Next Online Revolution broadcasting, multicasting and videoconferencing. The Institute was among the first science centers to The Center for Innovation will be investigating develop and launch a presence on the World Wide Internet2 as an exciting new vehicle for teacher Web in 1994. In its relatively short lifetime, the Web professional development, as well as for live has become an integral means of communication science programming for visitors to the Institute. and learning. In 2004 online traffic to the Institute

15 THE FRANKLIN CENTER

16 The Franklin Center oversees the Institute’s rich history and collections, and is a moving force behind the Benjamin Franklin and Bower awards that honor outstanding accom- plishments in science and technology that give birth to new disciplines, provide breakthroughs in knowledge that enable other scientists make significant advances, and improve the quality of life.

17 Awards The Institute’s Awards Week reached new levels of success in 2004 on several fronts. Registration for the April 29 Awards Ceremony and Dinner topped 800. As with other Institute endeavors, the Awards Program drew broad national coverage, with print media including The New York Times, The Inquirer, and The Cleveland Plain-Dealer. This major fund- raiser for the Institute was emceed by NBC’s Lester Holt and netted a record $460,000, thanks to the leadership of Friends Committee Chair Patricia M. Morley and Corporate Committee Chair Manuel N. Stamatakis. Awards Week is more than a ceremony. It is nearly a week of educational programs serving a variety of audiences—including young people. The Celebration of Science program, held in conjunc- tion with the Institute’s Interpretive Services and

Exhibit Development staff, provides opportunities Seymour Benzer’s presentation on fruit fly behav- for the visiting public to learn about the work of the ioral genetics. Indications are that this was a Awards Laureates, many of whom were enthusiastic successful model for using Internet2 to provide participants in demonstrations in the Museum. unique educational experiences and to expand the The Meet the Scientists program was again held in educational impact of the Awards Program. Also collaboration with PACTS, the Institute’s very success- new in 2004 was the birth of the Society of ful program for minority students. Meet the Scientists Laureates, formed to facilitate fellowship among provides an exciting forum for high school students Laureates, past and present. to converse with world-class scientists about their Although the Awards Program culminates work. The Celebration of Science and Meet the during Awards Week each spring, it is a year-round Scientists programs have contributed to the inter- endeavor. By October the Trustees had approved nationally unique nature of the Awards Program. nominees for 2005 as presented by the Institute’s At the university level, each Laureate was Committee on Science and the Arts and the Bower honored at symposia on the campuses of the Awards selection committees. University of Pennsylvania, and Drexel and Villanova universities. The Institute and the University of Pennsylvania introduced an experimental Web cast over Internet2, with a special introduction to prepare high school students with background for

18 Front (l-r): Laureates Robert E. Newnham, Ph.D., Harry B. Gray, Ph.D., Raymond 2004 Franklin Institute Awards V. Damadian, M.D., Seymour Benzer, Ph.D., Richard M. Karp, Ph.D., Robert B. Meyer, Ph.D. and Roger Bacon, Ph.D. Behind (l-r): Lester Holt, Institute President Dennis M. Wint, Ph.D., Committee on Science and the Arts Laureate Sponsors Peter A. Lewin, Ph.D., Klaus H. Theopold, Ph.D., Bradford A. Jameson, Ph.D., Donald H. Silberberg, M.D., Bruce Char, Ph.D., Peter J. Collings, Ph.D., Brian J. Sullivan, Ph.D., Trustee Gary J. Anderson, M.D. and Institute Vice President Philip W. Hammer, Ph.D.

Bower Award & Prize for Achievement Benjamin Franklin Medal in Computer and Benjamin Franklin Medal in Mechanical in Science Cognitive Science Engineering Seymour Benzer, Ph.D. Richard M. Karp, Ph.D. Roger Bacon, Ph.D. California Institute of Technology University of California, Berkeley Union Carbide (retired) and Amoco Pioneering discoveries that both founded and Contributions to understanding the complexity Corporation (retired) greatly advanced the field of neurogenetics, of computations, which allows the develop- Fundamental research on the production of thereby transforming our understanding of ment of practical solutions to many of today's graphite whiskers and the determination the brain. important programming problems. of their microstructure and properties.

Bower Award for Business Leadership Benjamin Franklin Medal in Electrical Benjamin Franklin Medal in Physics Raymond V. Damadian, M.D. Engineering Robert B. Meyer, Ph.D. Fonar Corporation Robert E. Newnham, Ph.D. Brandeis University Development and commercialization of The Pennsylvania State University Creative synthesis of theory and experiment magnetic resonance imaging used in clinical Invention of multiphase piezoelectric trans- demonstrating that tilted, layered liquid crystal applications, which has transformed the ducers and their spatial architecture, which phases of chiral molecules are ferroelectric. diagnosis and treatment of disease. revolutionized the field of acoustic imaging.

Benjamin Franklin Medal in Chemistry Harry B. Gray, Ph.D. California Institute of Technology Pioneering contributions in the field of electron transfer in metalloproteins.

19 Collections Bring History To Life able online. As a modern day publication, The The Institute holds a number of historically signifi- Journal of The Franklin Institute is an active and cant collections, most notably the Benjamin growing resource, published in conjunction with Franklin Collection, Wright Brothers Aeronautical Elsevier. In the past two years, Journal submissions Engineering Collection, and Fairmount Waterworks have increased by more than 50 percent. In Collection. Portions of these collections are on addition to publishing an annual issue based on display in the Museum. The extensive archives of the Institute’s Awards Program, The Journal is the Committee on Science and the Arts, starting in exploring areas for special issues that will broaden the early 1800s include correspondence, drawings the scope of its articles. and other materials that provide a rich history of science and technology in America. Collaborations Curatorial Work with the Science Museum and Innovation Center In January 2004 the curatorial staff completed a make such resources more accessible to visitors, Museum Assessment Program Collections Steward- educators and scholars. ship Self-Study for the American Association of The Journal of The Franklin Institute, one of the Museums. This self-assessment of the Institute’s oldest technical journals in continuous publication, collections management policies and practices was is another valuable resource in tracking the history followed by initial peer review site visits in June of science and technology. The entire contents of and September in preparation for the Institute’s The Journal, which started in 1826, are now avail- accreditation by AAM in 2008. The accreditation

20 process ensures the quality and integrity of which opened in 2004, included segments filmed in member museums by requiring both self review and the Benjamin Franklin National Memorial using subsequent peer review of their operations. artifacts from the Institute’s collection. The curatorial department also completed conservation of the Wright Brothers Collection, The Library under a grant from the Save America’s Treasures Library staff began implementing the Board approved program, and prepared articles from the Institute’s Collection Development Policy and Deaccession Franklin collection for the Tercentenary exhibit. Plan, intended to create a library collection consis- With the opening of Titanic: The Artifact Exhibition, tent with the Institute’s mission. Several Franklin- curatorial assumed responsibility for the daily related books from the Institute’s rare book collec- monitoring of exhibit artifacts. tion were sent to the Conservation Center for Art The Franklin Institute collections have gained and Historical Artifacts in preparation for the popularity with filmmakers interested in authentic- Tercentenary exhibition on Franklin, in which they will ity, signaling a national and international media be featured. awareness of the Institute. The Institute was featur- ed prominently in the public television series Great Museums as well as in History Channel and Japanese documentaries on Benjamin Franklin. In addition, Walt Disney Studios’ blockbuster National Treasure,

21 FINANCIAL REPORT

Statement of Financial Position as of December 31, 2004 and December 31, 2003

December 31, 2004 December 31, 2003 Unrestricted Assets

Revenue, support, and investment income Program revenue Admission fees $ 8,003,197 $ 5,902,393 Ancillary activities 3,635,864 3,353,739 Museum projects 3,970,447 3,170,735 Educational programs and services 1,763,202 2,045,558 Other 604,135 66,887 Total program revenue $ 17,976,843 $ 14,539,312 Support Annual giving $ 2,545,917 $ 2,513,461 In-Kind contributions 2,093,403 808,727 Appropriations (City of Philadelphia, Commonwealth of PA) 708,600 722,990 Other contributions 129,947 Total support 5,477,867 4,045,178 Investment return designated for current operations 583,069 643,007 Net assets released from restrictions/satisfaction of purpose restrictions 1,344,625 2,744,799 Total revenue, support, operating investment income and net assets released from restrictions $ 25,382,404 $ 21,972,296 Expenses Program expenses Museum operations $ 14,603,109 $ 12,602,542 Ancillary activities 1,651,909 1,597,162 Museum projects 3,753,171 2,660,694 Educational programs and services 976,173 1,131,736 Bower Award 740,863 842,462 Total program expenses 21,725,225 18,834,596 Interest 955,758 943,820 Development–Capital Campaign 133,431 1,127,464 General development 884,733 532,692 Total expenses 23,699,147 21,438,572 Operating income before depreciation $ 1,683,257 $ 533,724 Depreciation 4,431,933 3,680,707 Operating income (loss) $ (2,748,676) $ (3,146,983) Non-operating investment income, expenses and releases Net assets released/satisfaction of purpose restrictions $ 8,477,610 $ 6,887,887 Investment return net of amounts designated for current operations 646,390 1,322,844 Total non-operating income, expenses and releases 9,124,000 8,210,731 Increase in unrestricted net assets $ 6,375,324 $ 5,063,748

Temporarily Restricted Net Assets

Contributions $ — $ 2,832 Contributions–Capital Campaign 8,367,047 6,932,074 Investment return net of amounts designated for current operations 2,002,667 4,196,778 Investment return designated for current operations 440,448 385,515 Net assets released from purpose restrictions (9,822,235) (9,632,686) Increase in temporarily restricted net assets $ 987,927 $ 1,884,513

Permanently Restricted Net Assets

Net appreciation (depreciation) of investments held by third-parties 419,886 1,149,188 Increase (decrease) in permanently restricted net assets $ 419,886 $ 1,149,188

Change in net assets $ 7,783,137 $ 8,097,449 Net assets, beginning of year 101,390,468 93,293,019 Total net assets, end of year $ 109,173,605 $ 101,390,468

22 FINANCIAL REPORT

Statement of Financial Position as of December 31,2004 and December 31, 2003

December 31, 2004 December 31, 2003 Assets

Cash and cash equivalents $ 4,781,926 $ 7,618,637 Accounts receivable, net 899,620 744,984 Pledges receivable, net 10,360,996 7,251,214 Inventory 325,095 355,108 Prepaid and deferred expenses 942,361 607,009 Pooled investments 33,215,003 31,286,049 Investments held by a third party 11,583,416 11,163,530 Other investments 14,273 14,273 Property, buildings and equipment, net 71,114,107 66,910,808 Cash restricted 1,436,200 1,436,200 Deferred loan costs, net 308,531 322,920 Total assets $ 134,981,528 $ 127,710,732

Liabilities and Net Assets

Liabilities Accounts payable and accrued expenses $ 3,759,484 $ 3,014,050 Deferred revenue 3,235,562 4,203,243 Capitalized lease obligation 21,054 47,795 Long-term debt 18,791,823 19,055,175 Total liabilities $ 25,807,923 $ 26,320,263

Net assets Unrestricted $ 64,429,073 $ 58,053,749 Temporarily restricted 30,721,645 29,733,718 Permanently restricted 14,022,887 13,603,001 Total net assets $ 109,173,605 $ 101,390,468 Total liabilities and net assets $ 134,981,528 $ 127,710,731

23 2004 CONTRIBUTED SUPPORT continued BOARD OF TRUSTEES

William J. Avery Kevin F. Donohoe Bruce D. Rubin Elected Officers Chairman of the Board President Vice President and General William J. Avery The Kevin F. Donohoe Company, Inc. Manager Chairman of the Board Joseph L. Castle II Sunoco, Inc. Vice Chairman W. Joseph Duckworth Dennis M. Wint, Ph.D. President Frank P. Slattery, Jr. President and CEO Dennis M. Wint, Ph.D. Arcadia Land Company President President and CEO Larry Dubinski Quintus J. Michael Fitzpatrick, Ph.D. Vice President for Development Reneé Amoore Retired, President and COO Ann R. Sorgenti and General Counsel President Rohm & Haas Company Community Volunteer Secretary The Amoore Group, Inc. Pamela Lolley Frey William J. Stallkamp Donna D. Stein Bernard E. Anderson, Ph.D. Executive Vice President Managing Director Senior Vice President, Finance and Whitney M. Young, Jr. Professor Wachovia Penn Hudson Financial Group, Inc. Administration of Management Treasurer and Controller University of Pennsylvania William J. Friel Joan N. Stern, Esq. Executive Vice President, Partner Leadership Council Gary J. Anderson, M.D. Corporate Banking Blank Rome LLP Dennis M. Wint, Ph.D. Managing Director PNC Bank TL Ventures LLC James M. Wilson, M.D., Ph.D. Larry Dubinski Richard A. Greenawalt John Herr Musser Professor Vice President for Development Frank Baldino, Jr., Ph.D. Principal of Research and General Counsel Chairman and CEO RMK Associates University of Pennsylvania Cephalon, Inc. Rosalyn J. McPherson S. Matthews V. Hamilton, Jr. Paul H. Woodruff, PE, DEE Senior Vice President, Marketing Scott A. Battersby President President and Science Center Programs Vice President and Corporate Travel Services Company Mistwood Enterprises Treasurer Carol Parssinen, Ph.D. Unisys Corporation Roger A. Krone Tadataka Yamada, M.D. Senior Vice President, Center for Vice President Army Programs Chairman, Research and Innovation in Science Learning David J. Berkman The Boeing Company Development Executive Vice President Donna D. Stein GlaxoSmithKline Associated Group, LLC Elaine Levitt Senior Vice President, Finance and Community Volunteer Lore N. Yao Administration Renee B. Booth, Ph.D. Community Volunteer President Charisse R. Lillie, Esq. Philip W. Hammer, Ph.D. Leadership Solutions, Inc. Vice President, Human Resources Ex-officio Members Vice President, Franklin Center Comcast Corporation Anne F. Hamilton Charles R. Bridges, M.D., Sc.D. Richard D. Rabena Clinical Director of Cardiac Surgery Ira M. Lubert Bradford A. Jameson, Ph.D. Vice President, Operations Pennsylvania Hospital Principal Marsha R. Perelman Steven L. Snyder, Ph.D. Lubert-Adler Management, Inc. Donald E. Callaghan Vice President, Exhibits & Program The Honorable Edward G. Rendell Principal Miriam G. Mandell Development Hirtle, Callaghan & Company Vice President The Honorable John F. Street Reid O. Styles s MGM Consulting Corporation e

n Michael F. Camardo Paul G. Vallas Vice President, Human Resources o

J Executive Vice President Collin F. McNeil

d The Honorable Anna C. Verna List as of December 13, 2004

n Lockheed Martin President a

t The Penjerdel Council and s Emeritus Members i Robert M. Chappelear u Regional Foundation

q Charles L. Andes Senior Vice President, Market m l Chairman Emeritus

A Investment Ronald J. Naples

n

n Bank of America Private Bank Chairman and CEO Henry M. Chance II a

m Quaker Chemical Corporation

e The Honorable Augusta A. Clark l Bowen C. Dees, Ph.D. l A

Retired, Secretary of Agencies, Denis P. O’Brien

: President Emeritus y

h Authorities, Boards & Commissions President

p James J. Eberl, Ph.D. a PECO Energy Company r

g I Michael Coslov o t Chairman and CEO Samuel J. Patterson Richard T. Nalle, Jr. o h

p Tube City, Inc. Chairman and CEO

James A. Unruh r

o Veridyne Inc. j Chairman Emeritus

a David R. Curry m Community Volunteer Irene M. Qualters

d Honorary Member n

a Vice President, Research Richard H. Dilsheimer Joel N. Bloom n Information Services g i CEO s Merck & Co., Inc. e Dilsheimer Communities, Inc. D

33 Science Museum & Fels Planetarium Mandell Center & Rathmann Hall of Science Tuttleman IMAX Theater The Benjamin Franklin National Memorial

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