The Margin of Excellence THE VIRGINIA TECH FOUNDATION AND VIRGINIA TECH PHILANTHROPY ANNUAL REPORTS FOR FISCAL YEAR 2012-2013 virginia tech foundation annual report 1 Cover: Virginia Tech President Charles W. Steger in front of the university’s new Center for the Arts. Left: A member of the Virginia Tech Corps of Cadets at the War Memorial Pylons. virginia tech foundation annual report 2 Foundation Annual Report 2012-2013 04 Virginia Tech Foundation officers and administration 05 Virginia Tech Foundation Board of Directors 06 Virginia Tech Foundation properties 08 Ben J. Davenport Jr., Chairman of the Board 09 John E. Dooley, Chief Executive Officer and Secretary-Treasurer 10 Supporting the ambitious agenda of Virginia Tech, in service to the region, commonwealth, and world 12 Global 14 Inclusive 16 Technologically advanced 18 Comprehensive 20 Research intensive 22 Excellence in athletics 24 Across the commonwealth 26 Unit highlights 28 Financial highlights 33 Foundation endowment highlights Philanthropy Annual Report 2012-2013 34 Mobilizing private support to help Virginia Tech and those it serves 36 University Development administration and directors 37 Elizabeth A. “Betsy” Flanagan, Vice President for Development and University Relations 38 Major gift highlights 44 Designation of contributions, uses, and sources of gifts 47 Virginia Tech giving societies 47 Ut Prosim Society membership list 56 Caldwell Society membership list 63 Legacy Society membership list virginia tech foundation annual report 3 Officers Chairman of the Board Executive Vice President Ben J. Davenport Jr. Elizabeth A. Flanagan Chairman, Davenport Energy Inc. Vice President for Development and First Piedmont Corporation and University Relations, Virginia Tech Chief Executive Officer and Secretary-Treasurer Executive Vice President John E. Dooley M. Dwight Shelton Jr. CEO and Secretary-Treasurer, Vice President for Finance Virginia Tech Foundation Inc. and CFO, Virginia Tech Administration John E. Dooley Terri T. Mitchell CEO and Associate Vice President for Secretary-Treasurer Administration and Controller 540-231-2265 540-231-0420 [email protected] [email protected] Kevin G. Sullivan Associate Vice President for John J. Cusimano Administration and General Counsel Associate Vice President for Finance 540-231-2875 540-231-7094 [email protected] [email protected] www.vtf.vt.edu Virginia Tech does not discriminate against employees, students, or applicants on the basis of age, color, disability, gender, national origin, political affiliation, race, religion, sexual orientation, genetic information, veteran status, or any other basis protected by law. virginia tech foundation annual report 4 Board of Directors James K. Asselstine Robert P. Fralin Paula J. Robichaud Mary N. Blackwood R. Keith Harman John B. Rowsell Christopher J. Brightman James H. Hatch Kristi L. Rowsell Thomas R. Byrd W. Todd Holtzman Peter M. Rup Patricia A. Caldwell Shawn C. Johnson Lance L. Smith David L. Calhoun Nancie Roop Kennedy E. Ann Spencer Bruce C. Carver John R. Lawson II Benjamin Z. Stallings II, M.D. George B. Clarke IV Jacob A. Lutz III Charles W. Steger Michael W. Clarke James A. Pearson Fay H. Street Douglas C. Curling Michael J. Quillen John A. “Alex” Urquhart Jr. Ben J. Davenport Jr. Glenn P. Reynolds Carl G. Verboncoeur Students studying in the Torgersen Bridge between Torgersen Hall and Newman Library. virginia tech foundation annual report 5 Virginia Tech Foundation Inc. The Virginia Tech Foundation is a 501(c)(3) virginia tech foundation properties nonprofit, non-stock corporation established in 1948. It provides private financial support to enable the 1 Corporate Research Center, Blacksburg forward progress of Virginia Tech. Through successful 2 Cranwell International Center, Blacksburg asset management and the generosity of Virginia 3 Heth Property, Blacksburg Tech alumni and friends, the foundation continues to increase its real estate portfolio, endowment value, and 4 North End, Blacksburg support to university initiatives. 5 Quarry, Blacksburg The foundation’s real estate portfolio includes 6 Smith’s Landing, Blacksburg properties across the Commonwealth of Virginia as 7 University Gateway Center, Blacksburg 14 well as Switzerland. These properties range from ones 13 8 Kentland Farm, Montgomery County focused on innovation and economic development, such as the Corporate Research Center and the 9 Pete Dye River Course, Pulaski County Virginia Tech Research Center – Arlington; to ones q Hotel Roanoke, Roanoke 15 focused on academics, which include the Center for w WVTF Public Radio, Roanoke European Studies and Architecture and the Reynolds e Reynolds Homestead, Patrick County Homestead; to ones in the travel or recreation business, such as the Pete Dye River Course and r Marion duPont Scott Equine Medical Center, Leesburg the Hotel Roanoke. This diverse portfolio provides t Virginia Tech Research Center – Arlington, Arlington program facilities and generates private resources to y Washington Alexandria Architecture Center, Alexandria enable Virginia Tech to invent the future. u Hampton Seafood Lab, Hampton Not pictured: Center for European Studies and Architecture, Riva San Vitale, Switzerland 10 -11 1-7 16 8 12 virginia tech foundation annual report 6 Ù WVTF Translator WVTF Transmitter Transmitters are full power radio stations. Translators are lower- power broadcasts that repeat the signals of transmitters. 14 13 15 10 -11 1-7 16 8 12 virginia tech foundation annual report 7 A note to our stakeholders In the course of serving Virginia Tech, it has been my pleasure to come to know its president, Charles A message from Ben J. Davenport Jr., W. Steger. I consider him to be both a colleague and chairman of the Virginia Tech a friend. His persuasive vision for our university and Foundation Board his demonstrated ability to deliver on the initiatives I first became an investor he prioritizes has gone a long way toward keeping in Virginia Tech way me so enthusiastic about staying involved. back in 1965, though I One reason Charles’ vision has been so inspiring did not really think of is its scope. As a proud resident of Southside myself in that way at the Virginia, I care deeply about the economy of time. I was a year out of my region. I appreciate the way Virginia Tech is college, received a request helping that region, even though it is many hours for support from the from Blacksburg, through projects such as the Alumni Annual Fund, and sent in $5 to give back to Institute for Advanced Learning and Research, the school that had provided me so many wonderful located in Danville. I have also enjoyed seeing the learning experiences. While I was happy to help, internationalization of Virginia Tech’s operations it was not something I spent much time thinking over the years, which allows it to better prepare its about. students to thrive in our diverse, ever-shrinking Years later, thanks in no small part to my education world. at Virginia Tech, I found myself in the fortunate I believe that anyone seeking to make a philanthropic position of being able to make more substantial investment should consider higher education. The investments in our university. By then, the dynamic scale of institutions such as Virginia Tech mean that had changed. I had specific philanthropic goals I no matter what type of beneficial change you hope to wanted to accomplish, so I did not simply cut a facilitate, there is likely to be a relevant program. check, I asked probing questions to make sure those That said, it takes far more than scale for any aims could be achieved. organization to make an impact. It takes quality Likewise, when I was invited to serve on the leadership and a culture of excellence. Virginia Tech university’s Board of Visitors and, later, on has been fortunate to have both for many years, and the foundation board, I took my governance I am confident that trend will continue after the new responsibilities seriously. While I love my school, I president takes office. know that the best way I can serve it as a volunteer is not just to cheerlead, but to pay close attention and offer honest feedback. virginia tech foundation annual report 8 A tribute to accomplished that. Given that this is an annual report, the examples are indeed drawn from the past transformative leadership fiscal year, but as you read them, I hope you will view A message from John E. Dooley, them in the context of the progress we have made CEO and secretary-treasurer since President Steger took office. Annual reports typically Since assuming my responsibilities in July 2012, I focus on just the past have come to better appreciate the importance of fiscal year. But due to engaging our many stakeholders. The many millions Virginia Tech President of dollars our supporters provide each year truly do Charles W. Steger’s help provide what President Steger has called “the announcement in May margin of excellence,” which is why I thought that that he will step down title was appropriate for this year’s report. once a replacement is found, I hope you will give me latitude to begin this Even for state schools, the funding model for message not with details from fiscal 2013, but with a higher education has become contingent on private look back all the way to 2000. support and endowment income. In light of that, In his inaugural speech that year, President Steger I’m extremely pleased by our financial results—both laid out his vision of a far more comprehensive raising money and investing it—during fiscal 2013. Virginia Tech. I recently re-read his speech and was While those results are listed in detail later in this struck by the degree to which the course it charted report, I do wish to mention one highlight: the value has come to fruition. I am proud of the extent of our endowment at the end of the fourth quarter to which our work at the foundation has helped stood at $660.3 million, a record high.