Virginia Tech Foundation Virginia Tech Philanthropy Annual Reports 2016-17
Virginia Tech Foundation Virginia Tech Philanthropy Annual Reports 2016-17
2 Virginia Tech Foundation officers and administration and Board of Directors
3 A year like no other | A message from Sandra C. Davis, chair of the Virginia Tech Foundation Board of Directors
4 Foundation financial highlights
10 Endowment highlights
12 Advancement financial highlights
16 Accomplishments and initiatives
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givingto.vt.edu 2016-17 Annual Reports vtf.vt.edu 1 OFFICERS ADMINISTRATION BOARD OF DIRECTORS
Sandra C. Davis John E. Dooley Nancy H. Agee Ryan D. Lewellyn Chair of the Board CEO and Secretary-Treasurer Mary N. Blackwood Nancy R. Little 540-231-2265 | [email protected] David L. Calhoun Darrell D. Martin John E. Dooley James L. Chapman IV Priscilla McCall Chief Executive Officer Terri T. Mitchell George B. Clarke IV Robert D. Moser Jr. and Secretary-Treasurer Associate Vice President for Sandra C. Davis James A. “J.” Pearson Administration and Controller Dennis A. Duncan Brandon D. Perry Charles D. Phlegar 540-231-0420 | [email protected] John C. Fernando A. Carole Pratt Executive Vice President Theodore S. “Ted” Hanson John B. Rowsell Kevin G. Sullivan Leonard P. “Leo” Harris Winston A. Samuels M. Dwight Shelton Jr. Associate Vice President for Jeffrey C. Hartman Timothy D. Sands Executive Vice President Administration and General Counsel Amy B. Hayes James R. Smith 540-231-2875 | [email protected] Greg J. Herrema Fay H. Street Deborah A. Koller John A. “Alex” Urquhart Jr. John J. Cusimano John R. Lawson II William Hanson West Jr. Associate Vice President for Finance John C. Lee IV 540-231-7094 | [email protected]
ADVANCEMENT DIVISION SENIOR LEADERSHIP TEAM
Charles D. Phlegar Rhonda K. Arsenault Vice President for Advancement Associate Vice President for Advancement Services 540-231-7676 | [email protected] 540-231-2833 | [email protected]
Angela L. Hayes Michael M. Moyer Chief of Staff Associate Vice President of Development for Colleges 540-231-7676 | [email protected] 540-231-5479 | [email protected]
Tracy Vosburgh Monecia H. Taylor Senior Associate Vice President for University Relations Associate Vice President for Principal Gifts 540-231-5396 | [email protected] 540-231-2809 | [email protected]
Matthew M. Winston Jr. John W. Torget Senior Associate Vice President for Alumni Relations Assistant Vice President for Leadership Gifts and Annual Giving 540-231-6285 | [email protected] 540-231-2966 | [email protected]
2 vtf.vt.edu 2016-17 Annual Reports givingto.vt.edu A year like no other A message from Sandra C. Davis, chair of the Virginia Tech Foundation Board of Directors
Sandra C. Davis and John E. Dooley walking in the Street and Davis Performance Hall portion of the Moss Arts Center.
Thanks to the continuing generous support of the many Fundraising is another critical priority — not for its own sake, alumni and friends of Virginia Tech, the fiscal year ending but because of all that it makes possible. Donations empower June 30, 2017, was a tremendous one for the Virginia Tech our researchers. They allow us to build and renovate our Foundation. These are very exciting days at the university and facilities. They keep Virginia Tech accessible to high-achieving foundation, and we are grateful that you are a partner in our students from all communities. accomplishments. In the pages that follow, you will learn about an outstanding To help advance the university’s global leadership role in year that saw new gifts and commitments surge by 62 percent, self-driving vehicular research, the foundation in July 2016 to a record $162.3 million, and the value of our endowment bought 603 acres for the development of a rural testbed for grow by 18 percent, to $995.8 million. Along with summarizing autonomous vehicles. Just hours before the fiscal year ended, our foundation and fundraising performance, we highlight our university received its largest scholarship gift ever. Both many new initiatives that are fueled by philanthropy or events were extraordinary, yet entirely fitting bookends to what facilitated by the foundation. These include the Clark Scholars was an unprecedented 12 months at Virginia Tech. Program, made possible by a $15 million endowment commitment. The Virginia Tech Foundation and the university’s Division of Advancement work closely together to enhance the impact of All of the accomplishments detailed in this report are a our institution throughout the state, nation, and world. We do testament to the generosity of thousands of Virginia Tech’s this by raising private support. We do this through successful supporters. Without you, we would not be the university we investing and by seizing upon opportunities to help Virginia are today. I hope you enjoy learning more about the past fiscal Tech achieve essential, strategic aims. year, and that you will stay engaged with Virginia Tech in the years ahead. Building on our strong position in autonomous-vehicle research is one such aim. We are better equipped to accomplish Thank you for playing an important role in the life of our it having bought so much land adjacent to the Virginia Tech university. Transportation Institute. givingto.vt.edu 2016-17 Annual Reports vtf.vt.edu 3 Foundation financial highlights The Virginia Tech Foundation’s financial reporting follows U.S. Generally Accepted Accounting Principles (GAAP).
Foundation assets in millions Foundation contributions in millions
1800 150 $1,723.9 $145.1 140 1700 130 1600 $1,510.6 120 $1,507.8
1500 $1,488.8 110 $98.5 100 $93.2 1400 90 $1,302.6 $81.1 1300 80 $77.0
1200 70
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Foundation expenditures in millions Value of endowment in millions
190 1000 $995.8
$184.9 180 900 $843.0 170 $164.3 $817.8 $166.5 800 $796.4 160
$155.9 150 700 $143.3 $660.3 140 600 130
120 500
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
4 vtf.vt.edu 2016-17 Annual Reports givingto.vt.edu Revenue, gains, and other support
Contributions ...... $145,089,851...... 45 .6% Investment income...... $14,018,134...... 4 .4%
Net gains on investments. . . . $81,086,341...... 25 .5% Rental income...... $37,430,397...... 11 .8% Hotel Roanoke revenue . . . . . $22,048,958...... 6 .9% Other income ...... $15,561,588...... 4 .9%
Change in fair value of interest rate swaps...... $1,510,119...... 0 .5% Golf course revenue...... $1,545,662...... 0 .4%
TOTAL ...... $318,291,050. . . . . 100%
Endowment at market value
College or university program Total Scholarships Professorships Other
Agriculture and Life Sciences...... $42,890,574. . . . $18,852,478 . . . . . $10,724,743. . . . . $13,313,353 Architecture and Urban Studies . . . . . $22,650,365. . . . . $5,801,217 . . . . . $6,658,649. . . . . $10,190,499 Science...... $35,265,623. . . . $12,587,098 . . . . . $18,825,510...... $3,853,015 Business (Pamplin) ...... $105,325,346. . . . $35,712,271 . . . . . $32,781,530. . . . . $36,831,545 Engineering...... $161,344,361. . . . $70,431,977 . . . . . $49,926,710. . . . . $40,985,674 Natural Resources and Environment . . . $17,358,964. . . . . $4,842,161 . . . . . $5,176,625...... $7,340,178 Liberal Arts and Human Sciences. . . . $20,638,521. . . . . $9,917,265 . . . . . $3,994,069...... $6,727,187 Veterinary Medicine...... $32,319,925. . . . $15,056,029 . . . . . $7,811,072...... $9,452,824 Athletics...... $64,884,547. . . . $64,184,192 ...... $700,355 Extension...... $10,707,330...... $590,581 ...... $10,116,749 General ...... $227,341,557. . . . $91,827,002 . . . . . $3,425,184. . . . . $132,089,371 Agency ...... $153,969,586...... $149,906 ...... $153,819,680 Pratt/Animal Nutrition...... $22,896,091. . . . $16,485,186 ...... $6,410,905 Pratt/Engineering...... $23,592,519. . . . $20,572,677 ...... $3,019,842 Quasi-endowment...... $11,179,450...... $11,179,450 VTCCA...... $43,442,689. . . . $36,740,517 ...... $6,702, 172
TOTAL...... $995,807,448. . . . $403,750,557 . . . . $139,324,092. . . . . $452,732,799
givingto.vt.edu 2016-17 Annual Reports vtf.vt.edu 5 Foundation financial highlights
Expenditures by college or university program
Unit Total Student financial aid Program support
College/university program
Agriculture and Life Sciences...... $4,671,742...... $960,590...... $3,711,152 Architecture and Urban Studies . . . . . $1,542,412...... $327,913...... $1,214,499 Science...... $2,598,306...... $637,354...... $1,960,952 Business (Pamplin) ...... $4,932,176. . . . . $1,868,722...... $3,063,454 Engineering...... $19,844,313. . . . . $4,242,095...... $15,602,218 Natural Resources and Environment. . . $5,836,148...... $442,528...... $5,393,620 Liberal Arts and Human Sciences. . . . $2,017,439...... $556,044...... $1,461,395 Veterinary Medicine...... $3,049,441...... $654,532...... $2,394,909 Athletics...... $21,304,212. . . . . $9,315,536...... $11,988,676 Extension...... $844,546...... $17,344...... $827,202 Military Affairs...... $3,514,103. . . . . $1,340,358...... $2,173,745 General scholarship...... $3,763,080. . . . . $3,763,080...... Development...... $10,474,289...... $10,474,289 Alumni...... $1,674,629...... $1,674,629 Outreach...... $515,965...... $515,965 Research...... $10,658,850...... $10,658,850 Student Affairs...... $950,313...... $950,313 4-H centers...... $858,146...... $59,675...... $798,471 Steger Center ...... $831,004...... $831,004 WVTF/RADIO IQ Public Radio...... $3,376,572...... $3,376,572
Foundation operations/general
VTREF/Hotel Roanoke ...... $30,011,975...... $30,011,975 Corporate Research Center ...... $4,741,607...... $4,741,607 River Course ...... $2,635,407...... $2,635,407 Real estate...... $5,442,761...... $5,442,761 Administrative...... $5,755,116...... $5,755,116 Other...... $12,465,375...... $12,465,375
TOTAL...... $164,309,927. . . . . $24,185,771...... $140,124,156
6 vtf.vt.edu 2016-17 Annual Reports givingto.vt.edu Designation of contributions
College/university program/other Contributions Allocation
Agriculture and Life Sciences. . . . . $4,675,958 3 2%. Architecture and Urban Studies . . . . $3,382,129 2 3%. Science...... $7,883,288 5 4%. Business (Pamplin) ...... $10,185,949 7 .0% Engineering...... $18,267,502 12 .6% Natural Resources and Environment $4,709,533 3 .2% Liberal Arts and Human Sciences. . . $1,847,565 1 3%. Veterinary Medicine...... $1,736,128 1 2%. Athletics...... $29,739,692 20 .4% Extension...... $670,289 0 .5% Academic Affairs...... $6,457,280 4 5%. Information systems...... $358,869 0 .2% International programs ...... $227,371 0 .2% Research and graduate studies . . . . $1,596,982 1 1%. Student Affairs...... $2,129,479 1 5%. Corps of Cadets ...... $4,071,925 2 8%. WVTF/RADIO IQ Public Radio. . . . $3,124,654 2 2%. 4-H centers...... $452,340 0 .3% Future designations...... $1,714,744 1 2%. Pledges receivable ...... $26,929,610 18 .6% Other...... $14,928,567 10 .3%
TOTAL...... $145,089,851 100%
givingto.vt.edu 2016-17 Annual Reports vtf.vt.edu 7 Foundation financial highlights
Expenditure by function
Millions %
Support to university programs . . . $67 7. . . . 41 .1% Student financial assistance. . . . $24 .2. . . 14 7%. University capital outlay ...... $12 6. . . . . 7 7%. Fundraising ...... $10 .5. . . . 6 4%. Corporate Research Center . . . . . $15 .1. . . . 9 .2% Hotel Roanoke...... $20 .8. . . 12 7%. Management and general...... $10 .8. . . . 6 6%. River Course ...... $2 6. . . . . 1 6%.
TOTAL ...... $164 .3. . . . 100%
Endowment purpose
$ % # of funds
Scholarships . . . . $403,750,557. . . . 40 .5%. . . . 2,574 Professorships. .. $139,324,092. . . . 14 0%. . . . . 224 Other ...... $452,732,799. . . . 45 .5%. . . . 752
TOTAL ...... $995,807,448. . . .. 100%. . . . 3,550
8 vtf.vt.edu 2016-17 Annual Report givingto.vt.edu Endowment value per student
Fiscal year Endowment market value # of students $ per student
1990 ...... $120,170,954...... 23,320. . . . . $5,153 1991 ...... $131,195,712...... 23,937. . . . . $5,481 1992 ...... $147,933,178...... 24,548. . . . . $6,026 1993 ...... $168,058,641...... 24,337. . . . . $6,905 1994 ...... $169,304,165...... 24,504. . . . . $6,909 1995 ...... $205,138,585...... 24,405. . . . . $8,406 1996 ...... $244,537,663...... 24,123. . . . . $10,137 1997 ...... $285,704,195...... 24,952. . . . . $11,450 1998 ...... $331,013,180...... 25,977. . . . . $12,743 1999 ...... $340,243,732...... 26,343. . . . . $12,916 2000 ...... $368,196,579...... 26,558. . . . . $13,864 2001 ...... $359,527,534...... 26,199. . . . . $13,723 2002 ...... $328,679,928...... 26,561. . . . . $12,375 2003 ...... $331,311,105...... 26,456. . . . . $12,523 2004 ...... $370,811,010...... 26,558. . . . . $13,962 2005 ...... $408,810,308...... 26,686. . . . . $15,319 2006 ...... $447,404,748...... 27,202. . . . . $16,447 2007 ...... $524,731,181...... 27,658. . . . . $18,972 2008 ...... $527,629,109...... 28,966. . . . . $18,216 2009 ...... $451,744,223...... 29,858. . . . . $15,130 2010 ...... $502,379,593...... 30,181. . . . . $16,646 2011 ...... $600,647,830...... 30,616. . . . . $19,619 2012 ...... $594,776,245...... 30,445. . . . . $19,536 2013 ...... $660,340,421...... 30,807. . . . . $21,435 2014 ...... $796,436,874...... 30,850. . . . . $25,816 2015 ...... $817,759,471...... 30,975. . . . . $26,401 2016 ...... $842,991,159...... 32,296. . . . . $26,102 2017 ...... $995,807,448...... 32,837. . . . . $30,326
givingto.vt.edu 2016-17 Annual Report vtf.vt.edu 9 Endowment highlights
As of June 30, 2017, the market value of all endowments held by the Virginia Tech Foundation Inc. totaled $995.8 million. Of that total, $946.5 million is invested in the foundation’s pooled consolidated endowment fund, while $49.3 million is held separately in notes, deeds of trust, gift annuities, contributions receivable, real estate partnerships, and other miscellaneous endowed assets.
The June 30 allocation exposures of the foundation’s pooled endowment fund consisted of 53.0 percent global equities, 8.4 percent real assets, 14.8 percent credit, 0.1 percent government bonds, and 23.7 percent cash and cash equivalents. The fund achieved a total return of 13.3 percent for the year ending June 30 and an annualized return of 10.2 percent over the trailing five-year period.
The overriding principle of the foundation’s endowment program is that funds should be managed so that a gift today will fund a donor’s objective in perpetuity. For example, if a benefactor endows a scholarship, the money is managed with the goal of maintaining the real value of the endowment over time to keep pace with inflation. Each gift entering the consolidated endowment fund purchases units analogous to shares in a mutual fund, and a program support payout-per-unit, or dividend, is paid quarterly.
In an effort to maintain the endowment’s purchasing power, the payout rate for program support is adjusted annually to reflect the change in the Consumer Price Index over the preceding calendar year. A 12-quarter average of endowment values was used to smooth out the unit values when determining if program spending fell within the fiscal year 2016-2017 approved range of 3.0- 4.5 percent. Without this moving average, funding might dramatically rise in one year, then fall drastically the next, leaving the beneficiaries of the endowments vulnerable to the volatility of the capital markets.
Policy on endowment management is made by the foundation’s investment committee, whose main focus is the asset allocation of the fund and the endowment’s spending policy. Virginia Tech Foundation staff lead asset allocation decisions, the selection and retention of investment managers, and performance monitoring. Consultants are retained for operational diligence. To completely diversify its portfolio, management of the fund is allocated across more than 60 management firms, offering a wide variety of asset classes and investment styles.
Consolidated endowment performance
15 13 .3% Foundation endowment Benchmark* 12 11 .1% 10 .2% 9 8 .2%
6 .0% 6 5 .8% 4 .5% 4 .2%
3
0 1 year 3 year 5 year 10 year * The policy benchmark reflects the geometrically linked monthly blended reurn of 60% MSCI ACWI, 10% FTSE EPRA/NAREIT Global Real Estate, and 30% BC Global Agg .
10 vtf.vt.edu 2016-17 Annual Reports givingto.vt.edu givingto.vt.edu 2016-17 Annual Reports vtf.vt.edu 11 Advancement financial highlights The Virginia Tech Advancement Division uses two separate methods of reporting philanthropy: the yearly new gifts and commitments total and the yearly fundraising cash total.
4
3 Uses of new gifts and commitments
1 Current operations. . . . . $99,517,708. . . . . 61 .33% 2 Endowment...... $32,235,180. . . . . 19 .86% 3 Capital facilities ...... $25,815,096. . . . . 15 .91% 4 Private grants...... $4,710,496. . . . . 2 .90%
TOTAL ...... $162,278,480. . . . . 100% 2 1
7 Sources of new gifts and commitments 6 1 Alumni...... $72,712,219. . . . . 44 .81% 1 Alumni...... $72,698,813. . . . . 44 80%. Students...... $13,406. . . . . 0 01%. 2 Parents ...... $3,918,188. . . . . 2 .41% 5 3 Friends...... $32,276,441. . . . . 19 .89% 4 Faculty/staff ...... $2,401,169. . . . . 1 .48% Active...... $1,973,168. . . . . 1 .22% 4 Retired ...... $428,001. . . . . 0 .26% 5 Corporations...... $19,417,681. . . . . 11 .97% 3 Direct gifts and grants. . . . $14,401,489. . . . . 8 88%. 2 Matching gifts...... $2,325,473. . . . . 1 43%. Private grants...... $2,690,719. . . . . 1 66%. 6 Foundations ...... $26,826,039. . . . . 16 .53% Direct gifts and grants. . . . $24,606,690. . . . . 15 .17% Personal/family foundations. . . . $199,572. . . . . 0 .12% Figures represent the total amount of new pledges Private grants...... $2,019,777. . . . . 1 .24% and outright gifts recorded within the fiscal year. 7 Other organizations. . . . . $4,726,743. . . . . 2 .91% Donor advised ...... $2,467,237. . . . . 1 52%. Organizations...... $2,259,506. . . . . 1 39%.
TOTAL ...... $162,278,480. . . . . 100%
12 vtf.vt.edu 2016-17 Annual Reports givingto.vt.edu 2
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Designations of new gifts 5 16 15 14 13 6 and commitments 11 10 9 8 7
1 College of Agriculture and Life Sciences...... $15,688,058. . . . 9 .67% 2 College of Architecture and Urban Studies...... $22,571,876 . . . 13 .91% 3 Pamplin College of Business...... $6,297,369 . . . . 3 .88% 4 College of Engineering...... $43,566,966. . . 26 .85% 5 College of Liberal Arts and Human Sciences...... $2,699,300. . . . 1 .66% 6 College of Natural Resources and Environment...... $5,644,838. . . . 3 .48% 7 College of Science...... $11,485,218. . . 7 .08% 8 College of Veterinary Medicine...... $4,954,151. . . . 3 .05% 9 Administrative/other*...... $3,638,597. . . . 2 .25% 10 Center for the Arts ...... $372,643. . . . 0 .23% 11 Corps of Cadets...... $3,069,591. . . . 1 .89% 12 Diversity and Inclusion** ...... $71,316 . . . . 0 .04% 13 Financial Aid...... $3,249,116. . . . 2 .00% 14 Graduate School...... $629,849. . . . 0 .39% 15 Hokie Family Fund...... $207,967 . . . 0 .13% * Administrative/other listing includes cumulative 16 Honors College...... $273,430. . . 0 17%. projects and designations such as alumni programs, 17 Intercollegiate Athletics...... $28,177,689 . . . 17 .36% independent centers, information technology, Reynolds Homestead, and gifts to be designated. 18 Student Affairs...... $2,152,922. . . . 1 .33% 19 University Libraries...... $1,433,793. . . . 0 .88% ** Amounts 0.10% and smaller are not shown in the chart. 20 University unrestricted...... $1,434,002. . . . 0 .88% 21 Virginia Tech Biocomplexity Institute**...... $133,903. . . . 0 .08% Figures represent the total amount of new pledges and outright gifts recorded within the fiscal year. 22 Virginia Tech Carilion Research Institute...... $567,652 . . . . 0 .35% 23 Virginia Tech Carilion School of Medicine ...... $553,976. . . . 0 .34% 24 W .E . Skelton 4-H Educational Conference...... $469,748 . . . . 0 .29% Center at Smith Mountain Lake 25 WVTF/RADIO IQ Public Radio...... $2,934,510. . . 1 .81%
TOTAL ...... $162,278,480. . . 100%
givingto.vt.edu 2016-17 Annual Reports vtf.vt.edu 13 Advancement financial highlights
4 Uses of fundraising cash 3
1 Current operations. . . $68,634,119 . . . . 54 .89% 2 Endowment...... $32,711,035 . . . . 26 17%. 3 Capital facilities . . . . $18,959,385. . . . 15 17%. 4 Private grants. . . . . $4,710,496. . . . . 3 .77%
TOTAL ...... $125,015,035. . . . 100% 1 2
Sources of fundraising cash
1 Alumni...... $56,148,058. . . . . 44 .91% 7 Alumni...... $56,134,902. . . . . 44 90%. 6 Students...... $13,156. . . . . 0 01%. 2 Parents ...... $5,396,071. . . . . 4 .32% 3 Friends...... $20,058,692. . . . . 16 .05% 4 Faculty/staff ...... $3,663,386. . . . . 2 .93% 5 1 Active...... $1,003,203. . . . . 0 80%. Retired ...... $2,660,183. . . . . 2 .13% 5 Corporations...... $21,017,852. . . . . 16 .81% 4 Direct gifts and grants. . . . $16,001,660. . . . . 12 80%. Matching gifts...... $2,325,473. . . . . 1 86%. 3 Private grants...... $2,690,719. . . . . 2 .15% 2 6 Foundations ...... $7,524,644. . . . . 6 .02% Direct gifts and grants. . . . $5,265,295. . . . . 4 .21% Personal/family foundations. . . . $239,572. . . . . 0 .19% Private grants...... $2,019,777. . . . . 1 62%. 7 Other organizations. . . . . $11,206,332. . . . . 8 .96% Donor advised ...... $2,467,237. . . . . 1 97%.
Figures represent the total amount of gifts received Organizations...... $8,739,095. . . . . 6 99%. for the fiscal year. TOTAL ...... $125,015,035. . . . . 100%
14 vtf.vt.edu 2016-17 Annual Reports givingto.vt.edu 3
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8 9 Designations of fundraising cash 10 11 16 15 14 13 1 College of Agriculture and Life Sciences...... $6,598,052. . . . 5 .28% 2 College of Architecture and Urban Studies...... $3,609,075. . . . 2 .89% 3 Pamplin College of Business...... $11,657,695. . . . 9 .33% 4 College of Engineering...... $23,082,552. . . 18 .46% 5 College of Liberal Arts and Human Sciences...... $2,207,812. . . . 1 77%. 6 College of Natural Resources and Environment...... $5,340,462. . . . 4 .27% 7 College of Science...... $13,022,257. . . 10 .42% 8 College of Veterinary Medicine...... $2,321,980. . . . 1 .86% 9 Administrative/other*...... $3,617,080. . . . 2 .87% 10 Center for the Arts ...... $2,584,686. . . . 2 .07% 11 Corps of Cadets...... $4,630,220. . . . 3 .70% 12 Diversity and Inclusion** ...... $40,779. . . . 0 .03% 13 Financial Aid...... $3,191,305. . . . 2 .55% 14 Graduate School...... $536,870. . . . 0 .43% 15 Hokie Family Fund ...... $181,602. . . 0 .15% * Administrative/other listing includes cumulative 16 Honors College...... $406,120. . . . 0 .32% projects and designations such as alumni programs, 17 Intercollegiate Athletics...... $31,802,942 . . . 25 .44% independent centers, information technology, Reynolds Homestead, and gifts to be designated. 18 Student Affairs...... $2,383,030. . . 1 .91% 19 University Libraries...... $1,389,395. . . 1 11%. ** Amounts 0.10% and smaller are not shown in the chart. 20 University unrestricted...... $1,774,451 . . . . 1 .42% 21 Virginia Tech Biocomplexity Institute...... $132,899. . . 0 11%. Figures represent the total amount of gifts received for the fiscal year. 22 Virginia Tech Carilion Research Institute...... $592,319. . . . 0 .47% 23 Virginia Tech Carilion School of Medicine ...... $619,518. . . . 0 .50% 24 W .E . Skelton 4-H Educational Conference...... $357,376 . . . . 0 .29% Center at Smith Mountain Lake 25 WVTF/RADIO IQ Public Radio...... $2,934,558. . . . 2 .35%
TOTAL ...... $125,015,035. . . 100%
givingto.vt.edu 2016-17 Annual Reports vtf.vt.edu 15 16 vtf.vt.edu 2016-17 Annual Report givingto.vt.edu Accomplishments and initiatives Record-setting philanthropy and high-impact projects to enhance Virginia Tech’s ability to educate students, address problems, and serve communities characterized the fiscal year that ran from July 1, 2016, through June 30, 2017.
givingto.vt.edu 2016-17 Annual Report vtf.vt.edu 17 Accomplishments and initiatives
Unprecedented generosity
Tens of thousands of generous donors combined to make $162.3 million in new gifts and commitments to Virginia Tech this past fiscal year — a 62 percent surge in giving compared to the previous year and more than double what was raised just two years earlier. The university also reports cash received each year, which was $125.0 million in fiscal 2017, up 23 percent from what had been a record total of $101.5 million in fiscal 2016.
Nearly 35,000 donors made gifts in fiscal 2017, including individuals, corporations, and foundations. Numerous colleges and programs saw double-digit percentage increases in gift income, and the same was the case for new gifts and commitments. In several instances, giving more than doubled.
Donations to the Virginia Tech Annual Fund, which supports both academics and athletics, increased by 49 percent to $22.5 million. Alumni giving increased by more than 1,800 donors. The alumni giving participation rate, which affects rankings as well as revenue, was 12 percent. Increasing the rate to 22 percent by the year 2022 is one of the university’s major priorities over the next five years.
Virginia Tech’s War Memorial Pylons
18 vtf.vt.edu 2016-17 Annual Reports givingto.vt.edu Virginia Tech and Carilion launch $15 million innovation fund
Virginia Tech and Carilion Clinic’s growing partnership includes more than the James Ramey speaking at Virginia Bio’s school of medicine and research institute in Roanoke. In February, these major THRiVE 2017 event. anchors of the Southwest Virginia economy announced a $15 million venture fund.
“The VTC Innovation Fund’s primary purpose is to generate strong returns through highly selective investments in promising high-growth life science and technology companies,” said John Dooley, CEO and secretary-treasurer of the Virginia Tech Foundation.
“Deal flow has been strong,” said James Ramey, principal and fund manager at Middleland Capital, which manages the VTC Innovation Fund. “We are pursuing a disciplined approach focused on actively managing and closely working with a handful of targeted investments.”
Virginia Tech and Carilion Clinic each contributed $7.5 million to launch the fund. An intended consequence of the fund’s investment activities is to drive entrepreneurial growth throughout the region.
“We are engaged in growing a business ecosystem,” Ramey said. “In addition to judging pitch contests, giving lectures, and making introductions, we provide value to entrepreneurs. Even if we pass on an investment, entrepreneurs can expect to walk away with strategic advice, pitch suggestions, introductions to other investors or potential clients, and a myriad of other advice points. We aren’t just helping individual start-ups; we are helping grow a critical mass of entrepreneurial activity.”
givingto.vt.edu 2016-17 Annual Reports vtf.vt.edu 19 Accomplishments and initiatives
Program gets students beyond boundaries to college
Virginia Tech’s incoming class for fall 2017 included 137 Beyond Boundaries Scholars — the first students to benefit from a matching gift program launched in November 2016 by university President Tim Sands.
The Beyond Boundaries Scholars program doubles the impact of certain current-use scholarship gifts by providing a one-to-one match from the university. It was created to help enroll far more students from underserved communities and reduce the number of high-achieving students from all communities who chose competing schools based on financial aid.
“Virginia Tech is incredibly strong in so many areas, but we need to improve our scholarship packages to be as attractive as possible to these key student populations,” Sands said.
Together, 46 donors have contributed over $401,000 to the program, for an impact of more than $803,000 due to the university match. Numerous students have indicated that being a Beyond Boundaries Scholar cemented their decision to enroll.
“My top two choices were this college and U.Va.,” said Quyngina Zhang, an architecture major from Lorton, Virginia. “They’re both really good colleges. The scholarship definitely pushed me toward Virginia Tech because I wanted to be able to focus on my studies and be less worried about debt. I’m very grateful.”
Architecture major Quyngina Zhang said assistance from the Beyond Boundaries Scholars program helped her choose Virginia Tech over the University of Virginia.
20 vtf.vt.edu 2016-17 Annual Reports givingto.vt.edu Hotel Roanoke achieves new marks of excellence
The Hotel Roanoke generated a record $22 million in revenue during a year in which it received Hilton’s prestigious Curio brand designation.
The rebranding followed a full renovation of the hotel’s suites and guestrooms, and positioned the hotel in the luxury category. The hotel formerly carried Hilton’s DoubleTree designation.
“It’s a major step up within Hilton’s brand family, which lifts the ceiling on what our average daily rates can be and the quality connotation for customers,” said Brian Wells, who arrived as general manager of the hotel in November.
Wells succeeded Gary Walton, who retired after 23 years running the property and is now a professor of practice in the hospitality and tourism management program within Virginia Tech’s Pamplin College of Business.
Virginia Tech President Tim Sands and Professor Despite having some rooms offline as the renovation project was wrapping up, the Laura Sands discuss research with doctoral hotel achieved 77.3 percent annual occupancy. Within Hilton’s entire Curio family student Sydney Hope during a gathering of the university’s 1872 Society at the Hotel Roanoke. of 40 properties worldwide, the hotel won the 2016 Food & Beverage Award of Excellence by performing highest in satisfaction and loyalty tracking surveys of its food and beverage services.
givingto.vt.edu 2016-17 Annual Report vtf.vt.edu 21 Accomplishments and initiatives
Largest-ever scholarship gift
A $15 million endowment created in June by the A. James and Alice B. Clark Foundation is the largest scholarship gift ever made to Virginia Tech. It endows the The endowed Clark Scholars program will grow from 10 students in fall 2017 to 40 students in fall foundation’s signature Clark Scholars program, which provides students with a full- 2020. tuition scholarship and a holistic approach to engineering education.
The inaugural class of 10 students from the College of Engineering and the Myers- Lawson School of Construction enrolled for the fall 2017 term. The program will grow to support 40 in-state students by 2020. As part of Virginia Tech’s campus- wide initiative to increase access and double enrollment among underrepresented minorities by 2022, the university will provide additional funding to ensure that Clark Scholars attend tuition-free and have their room, board, and fees covered.
The late A. James Clark, who built Maryland-based Clark Construction Group into one of the nation’s leading construction companies, started the foundation. Joe Del Guercio, president and CEO of the foundation, said Clark “believed in eliminating financial barriers so promising students could achieve their full potential. Virginia Tech’s efforts to ensure access and affordability are in keeping with Mr. Clark’s vision. We are proud to partner with Virginia Tech, a leader in engineering and construction education.”
22 vtf.vt.edu 2016-17 Annual Reports givingto.vt.edu Celebrations of shared impact
Virginia Tech’s Ut Prosim, Legacy, and 1872 societies gathered in Washington, D.C., for their first-ever joint event. The December celebration recognized the tremendous impact of donor society members on the university and those it serves.
The Ut Prosim Society had its annual weekend March 31-April 1. With the induction of 148 new members the society, which recognizes lifetime household giving of $100,000 or more, has grown to 2,611 individuals. The Legacy Society, which recognizes those who have included Virginia Tech in their estate plans or made deferred gifts, gathered in September 2016 and has grown to 1,962 members.
On June 2, the 1872 Society had its first gathering since it was relaunched in 2016 to recognize current-use donors who give at the leadership level of $5,000 or more. By the close of its first full fiscal year, 2017, the society had grown to 2,875 donors. Virginia Tech also recognizes loyal donors who give to academics in consecutive fiscal Virginia Tech Vice President for Advancement Charlie Phlegar addresses the Ut Prosim Society. years through membership in the Pylon Society, which was 17,400 donors strong as of June 30.
givingto.vt.edu 2016-17 Annual Report vtf.vt.edu 23 Accomplishments and initiatives
A powerful sign of support
Virginia Tech Academic Council members have gone beyond working with Virginia Tech’s Burruss Hall President Tim Sands to chart the university’s future. They are helping to bring it about as donors. Together, the deans, vice presidents, institute directors, and senior administrators on the Academic Council gave nearly $145,000 to Virginia Tech during fiscal 2017.
It was the first time the council achieved 100 percent giving, a powerful sign of support for the university’s direction. In July 2017, the group was renamed the President’s Council.
Rob Moore, interim vice president of marketing and communications for the Council for Advancement and Support of Education, said 100 percent participation by senior leaders “sends a message to other stakeholder groups that the people in charge really believe in the mission and are willing to support it in the most material of fashions, by giving.”
Sands said he was “grateful and moved by this affirmation of our shared vision.”
24 vtf.vt.edu 2016-17 Annual Reports givingto.vt.edu Creating an intelligent infrastructure
Virginia Tech and the foundation took major steps to build on the university’s strengths in autonomous systems, smart construction, mobility, and advanced energy systems. The Division of Advancement announced in April it reached a $25 million fundraising target in support of a two-building Intelligent Infrastructure and Construction Complex, thanks to generous contributions from both alumni and non-alumni leaders in the construction industry.
The complex is part of a broad plan for new facilities in support of intelligent infrastructure research and education, including a rural smart road and infrastructure park for research by the Virginia Tech Transportation Institute. In July The Virginia Smart Road 2016, the foundation purchased 603 acres that are bisected by the elevated Virginia Smart Road, where much of the institute’s research takes place. The foundation plans to sell 275 of the acres, keep the rest, and lease acreage to the institute.
givingto.vt.edu 2016-17 Annual Reports vtf.vt.edu 25 Accomplishments and initiatives
Bringing news and insights to millions
The Federal Communications Commission granted an additional FM signal in the Blacksburg market to WVTF in January 2017. This was an essential step in a two- year project to provide FM access to RADIO IQ’s news and information programs throughout the listening area. By using FM’s more powerful signals across the state, RADIO IQ now reaches more than 2 million people.
“Putting RADIO IQ on FM gives us national, international, and high-quality local investigative reporting consistently available on a reliable signal,” said Anna Lawson, who chairs the WVTF & RADIO IQ Friends Council. “This change enhances our entire state.”
Many others agree. Surveys indicated more demand for news and information programing, prompting the shift of RADIO IQ to FM. Both RADIO IQ and WVTF depend heavily on contributions to deliver quality programs and must respond to listener preferences. The value that listeners see in RADIO IQ and WVTF Kevin Sanders, a WVTF radio host is demonstrated in pledge drives, which generated a record $2.2 million from individual donations. This was a 16 percent increase over the year before, passing the $2 million threshold for the first time.
26 vtf.vt.edu 2016-17 Annual Reports givingto.vt.edu Ten years of learning and earnings
BASIS team member Daniel Murray (accounting, BASIS, the student bond-investing team that manages $5 million of the finance ’17) presents during a celebration of the student investing team’s 10th anniversary. endowment held by the Virginia Tech Foundation, celebrated its 10th anniversary in October.
Since its 2006 formation, the program has generated about $2.5 million of earnings and return of capital, while providing an invaluable amount of hands-on experience for participants. BASIS members have secured jobs out of college with premier companies such as Citi, EY, and Goldman Sachs.
Christine Smith (finance 2016), who landed an analyst position at RBC Capital Markets in New York City, said prioritizing BASIS was the “smartest decision” she made at Virginia Tech because it “changed the trajectory of my college and professional career.”
BASIS stands for Bond and Securities Investing by Students. Virginia Tech has two additional student teams that manage portions of the endowment, with help from faculty advisors. SEED (Student-managed Endowment for Educational Development) focuses on large-cap domestic stocks. It was founded in 1991 through the Pamplin College of Business. SEED received an initial investment of $1 million by the Virginia Tech Foundation in 1993, which was later increased to $5 million. COINS (Commodities Investing by Students) was established in 2012. It invests a portfolio of up to $750,000 in agricultural and energy commodities.
givingto.vt.edu 2016-17 Annual Reports vtf.vt.edu 27 Accomplishments and initiatives
Department naming recognizes extraordinary commitment Kevin Crofton Virginia Tech named its Department of Aerospace and Ocean Engineering in honor of Kevin Crofton (aerospace and ocean engineering ’82) in recognition of his commitment of $14 million to the department and $1 million to the university’s Division of Student Affairs.
A native of Fincastle, Virginia, Crofton aspired to be an astronaut — following in the footsteps of his heroes, Neil Armstrong, Chuck Yeager, and Chris Kraft, who is also a Hokie. This led him to study to become an aerospace engineer. Of Crofton’s gift to the department, $8 million was unrestricted, providing tremendous flexibility to pursue new opportunities as they arise.
“The education I received is one that taught me to be inquisitive, data-driven, and respectful of science,” Crofton said of his Virginia Tech experience. “The social environment exposed me to different people, cultures, and views of life.”
While announcing the naming in November, Virginia Tech President Tim Sands said Crofton’s “generosity is both humbling and inspiring. It opens up tremendous new possibilities for one of our academic departments and will benefit all our students by funding experiential learning programs.”
28 vtf.vt.edu 2016-17 Annual Reports givingto.vt.edu Keep up with the news online Music academy opens within Corporate Research Center Visit vtf.vt.edu and When it comes to landing tenant companies and recruiting highly skilled employees, givingto.vt.edu/stories the more amenities a research park can offer, the better. Along with state-of-the- for news from the Virginia art buildings, attractive grounds, and proximity to the commonwealth’s most Tech Foundation and on comprehensive research university, the Virginia Tech Corporate Research Center has the impact of philanthropy a new reason to stand out from its competitors: a music academy onsite. at Virginia Tech. In January 2017, the Renaissance Music Academy consolidated its many programs in a single space for the first time. Founded in 1993, the academy serves roughly 300 students and now occupies 7,000 square feet in the research center’s building at 2020 Kraft Drive.
“Having these kind of high-quality amenities helps to distinguish us,” said Joe Meredith, the center’s president. “The kind of people interested in a comprehensive, classical-music training program are often the kind of people we want to attract to work at the university and our center.”
Teresa Ehrlich, the academy’s executive director, said the move has provided “a buzz going on with people wanting to learn more about our school and sign up for lessons.”
“Several companies have approached us and asked if we could provide music for events,” she added, “and we’ve already had dozens of responses to a survey sent out Renaissance Music Academy students to people at the center to see if they were interested in lessons for their children or themselves.”
givingto.vt.edu 2016-17 Annual Report vtf.vt.edu 29 Accomplishments and initiatives
Hokie Club larger than ever
The Hokie Club announced its Drive for 25 Campaign in December, with an aim of reaching 25,000 members. Within months, the initiative generated strong results: a record 13,600 members as of June 30. The campaign is spearheaded by Frank Beamer, former head football coach. It was part of a year that also saw a restructured seating and priority parking program, as athletics raised more than $31.8 million in cash, up 45 percent from fiscal 2016.
“There is strength in numbers,” Beamer said while stressing the importance of annual giving to the success of Hokie sports. “Compared to other top programs in the Head Football Coach Justin Fuente nation, we don’t have enough folks on board as annual donors. This is a tremendous leads the Hokies onto the field. opportunity for fans and alumni to demonstrate their love for the Hokies by making a gift and making a difference in the lives of our students and student-athletes for generations to come.”
30 vtf.vt.edu 2016-17 Annual Reports givingto.vt.edu Hundreds jump in to support crowdfunded projects
More than 300 donors provided over $21,000, combined, to four Virginia Tech Donors gave enough for more than 1,200 schoolchildren to benefit from programs at the initiatives that were part of a pilot of the university’s crowdfunding platform, known Moss Arts Center. as Jump, in April and May 2017. Their generosity will allow more than $6,000 in financial aid to be provided through the Beyond Boundaries Scholars program, support the student-led organizing and running of the Relay for Life program, fuel research into concussion prevention in youth soccer, and enable more than 1,200 schoolchildren to have an inspiring experience at the Moss Arts Center.
Jump provides new opportunities for potential donors to learn about projects and programs that may match their passion to give back. Following the successful pilot, dozens of students and faculty members applied to use the site to raise money during the fall 2017 term. More than 20 have been accepted.
givingto.vt.edu 2016-17 Annual Reports vtf.vt.edu 31 A “Link” between innovation, education, and industry
Corporations provided 12 percent of the new gifts and commitments Virginia Tech received in fiscal 2017, but the importance of company partnerships goes well beyond philanthropy. Strong industry relationships open career pathways for alumni, lead to sponsored research, and help get discoveries applied.
With this in mind, the Division of Advancement revisited how Virginia Tech can engage with industry. The creation of a business engagement center, run jointly with the Office of the Vice President for Research and Innovation, was announced in January. Brandy Salmon was hired in June as executive director of the center, which has been named Link, in keeping with the connections it fosters. Salmon guided diverse teams through more than 100 projects with Fortune 500 firms while working at RTI International prior to joining Virginia Tech.
Advancement also opened offices in the Virginia Tech Research Center — Arlington in May 2017. One of the university’s major strategic priorities is to expand its prominence and impact in the National Capital Region. Numerous companies in sectors that align with Virginia Tech’s strengths are located in that region, and roughly 58,000 alumni live within an hour’s drive of greater Washington, D.C. Drone delivery test flights were conducted in partnership with Project Wing, part of X, the “We are committed to playing a growing role in this region,” said Thanassis Rikakis, innovation lab formerly known as Google[x]. Virginia Tech’s executive vice president and provost. “Advancement is an essential partner in this process.”
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