future For the
Winter 2011
Meet the Future Scholarships help students like Carla Arzuaga to choose Penn State
In This Issue: A historic gift launches a new “Ice Age� in central Pennsylvania
“
I used resources from the Smeal Chair when I updated a class that I teach to MBA students, an awardwinning course that continues to be among the most highly enrolled electives in the program. On the research front, Smeal Chair funds allow me to hire assistants and travel to present my findings. So much of what I have been able to accomplish at Penn State is a result of the Smeal endowment, and private support is at the heart of the college’s great vitality and continuing upward trajectory.
”
Donald C. Hambrick is the Smeal Chaired Professor of Management in the Smeal College of Business, and he has been named an Evan Pugh Professor, Penn State’s highest honor
Donald Hambrick is the future.
for faculty.
To learn more about how you can partner with the University in supporting rising faculty stars and earn a 1:2 match for gifts that create Early Career Professorships through the Faculty Endowment Challenge, visit giveto.psu.edu/FacultyEndowmentChallenge or contact Rodney P. Kirsch, senior vice president for development and alumni relations, at 814-863-4826 or rpk6@psu.edu.
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As one of almost 300 Penn State faculty members who hold endowed positions, he is preparing our students for personal and professional success, and he is contributing to the strength and reputation of our academic community. Faculty endowments are a priority in our new campaign, and our alumni and friends can provide invaluable support for Penn State faculty and For the Future.
A Message from Peter Tombros It’s an exciting time to be a Penn Stater. In this issue of For the Future, our campaign newsletter, we’re highlighting a few of the University’s many achievements and accolades that have been making headlines in 2010. No matter what your own Penn State passion might be, you’ll find good news in the following pages. Excited about our leadership in research? Check out some of the numbers on page 6. Concerned about the value and accessibility of a Penn State degree? Find out what corporate recruiters think on page 7, and learn about one student’s experience on page 8. And if you’re a sports fan or a citizen of central Pennsylvania, the article on page 4 is a must-read. Behind all of these stories is another story: the growing importance and impact of philanthropy at Penn State. As government support for higher education has declined, and the cost of preparing young people to compete in a technology-driven global economy has risen, private giving has made it possible for the University not just to survive, but to thrive. Everything we do—making discoveries with the potential to change our world, reaching out to communities across the Commonwealth and around the globe, and, above all, offering an extraordinary educational experience to students from every economic background—we can do better thanks to the generosity of our alumni and friends. And that’s getting noticed. Over the last few decades, the University has risen to the top ranks of public institutions, and our graduates are making a difference in every field and profession, from business and medicine to education and the arts. The Penn State name has come to stand for even more than it did during my undergraduate days. The University is now recognized as an innovator and a leader, and when our students introduce themselves as Penn Staters, they are recognized as potential leaders, too. This ascent would not have been possible without philanthropy. The University owes more than thanks to its supporters. Your gifts are a challenge to Penn State’s students, faculty, and staff to aim even higher—for themselves, for our institution, for our shared future. We are Penn State, and we rise or fall together. To help us—all of us—to continue to rise with the University, I invite you to join in For the Future: The Campaign for Penn State Students. Sincerely,
Peter G. Tombros Chair, For the Future: The Campaign for Penn State Students
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A Great Day for Hockey in Happy Valley Historic gift creates ice opportunities for University and community One day in the late summer, the text messages between Joe Battista and Terry Pegula flew back and forth like a cold puck on fresh ice. “It’s a great day for hockey!!” typed Battista, a development officer and former coach of Penn State’s club team, the Icers. “Well, this is just a start,” typed Pegula, an alumnus and self-proclaimed “rink rat” who, with his wife Kim, had just committed $88 million to build a state-of-theart arena and launch NCAA Division I hockey at the University. “Now we gotta build a powerhouse.” Thanks to the Pegulas’ gift—the largest in Penn State’s history—the University can start creating not only a new sports tradition but also a resource for the people of central Pennsylvania. At the September 17 press conference where the gift was announced, President Graham Spanier said, “The Pegulas’ unparalleled generosity will make it possible for Penn State to serve our region and our student-athletes in exciting new ways. This arena—the only major rink within an 80mile radius—will be an invaluable asset for children, youth, and families, as well as for the University community, and it will be an engine for economic growth and development.” Crawford Architects of Kansas City, Mo., and Bohlin Cywinski Jackson of Wilkes-Barre, Pa,, have been chosen to design the arena, which is expected to open in December 2013. The facility will be built on the corner of Curtin Road and University Drive, directly west of the Bryce Jordan Center, and it will include two ice sheets and other features that will allow it to be used For the Future 4
for a broad range of campus and community activities, from commencement ceremonies to kinesiology classes to public skating sessions and camps for youth. The facility will provide new training and performance opportunities for Penn State’s popular and successful figure skating club and for the University’s women’s ice hockey team. It also will offer ice time to recreational and high school hockey programs, as well as intramural and local speed skating and broomball clubs. The arena will be able to host events such as professional ice shows and National Hockey League and American Hockey League exhibition games, generating tourism and other economic impacts in the region. The Pegulas’ gift also provides partial funding for an NCAA Division I men’s ice hockey program. “We’re
Mark Selders/Penn State Athletic Communications
very proud of the success that our ACHA club hockey program has achieved, and this gift will allow us to take the sport to a completely new level at Penn State,” said Tim Curley, director of Penn State’s Intercollegiate Athletics. “Thanks to the Pegulas, we will be able to enter NCAA competition in 2012-13. Penn State’s launch of Division I hockey will lead to additional competition within President Graham Spanier (far left) and Director of Athletics Tim Curley (far right) join the Big Ten, and that has Kim and Terry Pegula at the September 17 announcement of their gift. the potential to transform college hockey in this country. Penn State also plans to success due to the efforts of the exceptional management and fine employees of East Resources Inc., prolaunch a Division I women’s ice hockey program.” viding indigenous energy to the United States,” said For the Pegulas, the gift is an expression of their com- Terry Pegula. “We want to share our success with the mitment to hockey, Penn State, and the citizens of the people of Pennsylvania and with the very institution that helped me obtain the tools to launch my career in Commonwealth. The couple, who live in Boca Rathe oil and natural gas industry.” ton, Fla., have been leaders in the oil and natural gas industry primarily in the Appalachian Basin. Terry More private support is needed for the construction Pegula is the founder and former president, CEO, of the arena, which will be funded entirely through and principal shareholder of East Resources Inc., a philanthropy, and the Pegulas’ gift has also launched privately held independent exploration and development company based in Warrendale, Pa., and acquired a fundraising initiative to secure additional endowments for the men’s and women’s ice hockey programs. in July 2010 by Royal Dutch Shell. Pegula, born and raised in Carbondale, Pa., earned a bachelor of science The couple is aiming to set an example not only for support to Penn State sports, but also for giving to degree in petroleum and natural gas engineering from Penn State in 1973, started East Resources Inc. in programs across the University. “Our family hopes that our gift inspires other Penn State hockey and 1983, and built it into one of the largest privately held companies in the United States. Kim Pegula, a gradu- ice skating enthusiasts to become involved with this project as well as other athletic endeavors under the ate of Houghton College, also has been involved with East Resources since 1991 and is a founder, along with very capable leadership of the Department of Intercollegiate Athletics,” said Terry Pegula. “We plan to her husband, of Black River Music Group, Nashville, continue to support a variety of Penn State academic, Tenn., and Ayrault Sports Agency, Charlotte, N.C. cultural, and athletic programs in the future.” “We feel extraordinarily fortunate to have had great For the Future 5
Reaching New Heights Philanthropy is the driving force behind Penn State’s continued educational success and national research accolades
The Krause Innovation Studio, created with a gift of $6.5 million from Gay and Bill Krause, marks the largest private gift made to the College of Education. In May, the University began construction on the new Nittany Lion Softball Park, a state-of-the-art facility resulting from the generosity of many donors, including a $500,000 lead gift from Lee and William Beard, for whom the field will be named.
External support for Penn State Milton S. Hershey Medical Center and Penn State College of Medicine topped $100 million in fiscal year 2009–10. A study by Cleverley + Associates ranks the Medical Center among the top 100 hospitals in the United States.
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Renovations are underway at Penn State York thanks to a $750,000 gift from the Swenson Family Foundation to create the cutting-edge Ralph G. and Madeline B. Swenson Engineering Center. Erie native Rev. J. Charles Brock and his wife, Carolyn, have committed $2 million to create the Erie Art Metal Professorship in Integrative Humanities, the first endowed professorship in the School of Humanities and Social Sciences at Penn State Erie, The Behrend College, and to endow the Institute on the American Dream that Charles founded.
The Wall Street Journal recently named Penn State as the favorite destination for corporate recruiters. The Economist ranked the Smeal College of Business MBA program among the top ten nationwide. Bloomberg recently placed Penn State among the top producers of S&P 500 CEOs. In June, a Chronicle of Higher Education survey found that Penn State had the best first-quarter results among 43 institutions reporting on their campaigns.
In September, Peter J. Hudson, the Willaman Chair in Biology and director of the Huck Institutes of the Life Sciences, was named a Corresponding Fellow of the Royal Society of Edinburgh, Scotland’s national academy of science and letters. In 2008, he was named a Fellow of the Royal Society, the United Kingdom’s National Academy of Science.
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impac t o f g i v in g Name: Carla Arzuaga Major and Class Year: Senior, Health Policy and Administration Beyond the Classroom: I am the treasurer of the Puerto Rico Student Association at Penn State and a member of the Penn State gymnastics club. Off campus, I volunteer at Mount Nittany Medical Center and work as a gymnastics coach for young girls. Future Plans: I want to work for a health care consulting firm for a few years
after I graduate and then earn a master’s degree. Why Penn State?: This
University offered such a great academic experience and such a great opportunity to learn about a whole world that was unknown to me, but the best thing has turned out to be the people. I have friends from so many cultures, and my professors have really become my mentors. Biggest Surprise: I fell in love with the winter! I come from a place where it is sum-
mer the whole year around, and just the idea of using a coat and scarf was exciting. Scholarship Story: I grew up in Caguas, Puerto Rico, where the idea of studying at an incredible school like Penn State seemed like a dream. Applying and being accepted here meant a lot to me, but I knew that it was only the first step. Money was a huge obstacle standing between me and what I wanted to achieve. The day that I received the letter telling me that I
received the Salizzoni Family Foundation Scholarship changed my life. It made me realize that I could be Latina, I could come from a lower-income family, and I could still have the chance to prove to everyone how much I have to give. I will be forever thankful for that.
For more stories about the impact of philanthropy on students, visit giveto.psu. edu/profiles.
ways to g i v e
The Gift of a Lifetime: Bequests & Charitable Designations Gift planning (also known as “planned giving”) presents a unique opportunity to support Penn State in a manner that is tailored to your particular financial capabilities and priorities. In addition to fulfilling your philanthropic goals and shaping the future of the University, many planned gifts provide significant benefits such as tax savings, favorable treatment of capital gains, and guaranteed income. A bequest or charitable designation, one type of planned gift, is a valuable option for donors who wish to have an impact on the University, but who would also like to retain control over their income and assets during their lifetime. Bequests refer to a statement in your will, codicil, living trust, or trust amendment, explaining your desire to make a philanthropic gift to Penn State after your death. It is also possible to make charitable designations through a retirement plan or IRA, life insurance, or revocable and irrevocable trusts. These options provide significant tax benefits and may alleviate heavy tax burdens on your heirs, since retirement plans and IRAs are often the most heavily taxed assets in one’s estate. A bequest allows you to truly make the gift of a lifetime to Penn State, ensuring a bright future for the University and creating a legacy that will endure for generations. Although there is no minimum requirement, individuals are often able to make a greater gift through a bequest than would have been possible through an outright gift. This giving option also allows you to maintain flexibility over your assets and income during your lifetime, preserving the right to determine both the amount and ultimate use of the funds within the University. If you make your bequest commitment irrevocable, you may qualify for membership during your lifetime in one of the University’s donor recognition societies, and your support can, under certain circumstances, count toward the goals of the current campaign.
When preparing a bequest to benefit Penn State, please contact the Office of Gift Planning so staff members can assist you in identifying the most attractive and effective designations for your gift, based on the Penn State college, campus, or program most important to you. They will also help you craft the appropriate language to ensure that your gift is used by the University as you intended, in accordance with your values and your vision for Penn State. All requests for confidentiality or anonymity are honored. For more information, please contact Penn State’s Office of Gift Planning (1-888-800-9170 or giftplanning@ psu.edu) or visit our website at giftplanning.psu.edu. For the Future 9
b u il d in g fac u lt y s t r e n g t h :
Career Development Professorships
Leaving a Legacy A passion for physics and Penn State inspires an enduring commitment
Today, as you walk through the Department of Physics in the Eberly College of Science, you will see some new faces, aspiring scientists who might not have been able to choose Penn State just a few years ago. Several endowed undergraduate scholarships recognize scholastic excellence and address financial need in the department, and one doctoral candidate has received a brand-new Distinguished Graduate Fellowship to cover tuition and expenses. In the coming years, a second Distinguished Graduate Fellowship will be offered annually, and the department will name a new endowed professor. All of these opportunities are thanks to one grateful graduate student. When Bert Elsbach ’54g passed away in 2008, he left the University with a legacy that will allow other students to follow in his footsteps and help Penn State to remain a leader in physics education and research. Gifts from his estate have created endowments for undergraduates, graduate students, and faculty, and For the Future 10
the impact will ripple beyond the recipients to the entire program. “Bert Elsbach’s gift and bequest are very special and come at a time when the department is poised to become an absolutely influential player in the nation,” says Dr. Jayanth Banavar, the George A. and Margaret M. Downsbrough Department Head of Physics (pictured above). “This is greatly facilitated by such a generous and wonderful gift.” Bert Elsbach graduated from Moravian College in Bethlehem, Pennsylvania, in 1952 with hopes of pursuing graduate study, but he knew he couldn’t earn an advanced degree without private support. He was able to enroll in Penn State’s physics program because the school offered an assistantship that covered his tuition and living expenses. After completing the graduate program in 1954, Mr. Elsbach enjoyed a successful and diverse career. He initially worked for Eastman Kodak before moving
to California to construct and inspect infrared detectors and stinger missiles. He later returned to the East Coast to work as a professional pilot for the Tactical Air Command of the United States Air Force. Ultimately, however, his passion was physics, and he retired early in his career to devote more time to his own study of the field, especially quantum theory.
The next $500,000 of Mr. Elsbach’s trust supported the funding of two Distinguished Graduate Fellowships in physics. The fellowships will annually provide two students with tuition, a stipend, and health insurance. The remainder of the funds was divided between three endowed undergraduate scholarships: the Bert Elsbach Scholarship in Physics, the Elsbach Trustee Scholarship, and the Bert Elsbach Honors Scholarship in Physics. These funds have already benefitted more than sixty students, including Danielle Norcini (pictured below), a recipient of the Bert Elsbach Scholarship in Physics. “Without this scholarship, I would have had to work many extra shifts to cover tuition and books,” she says. “I am at Penn State to learn, not to pay bills. This scholarship has relieved the financial burden on me and my family and enabled me to take advantage of the short time I have here.”
By the Numbers
“Mr. Elsbach had a great passion for physics,” says Dr. Banavar. “But he had an equally great passion for Penn State and our department. He was a voracious reader of science journals and would frequently call my office to discuss our research, referencing articles that had featured the Penn State Department of Physics. It wasn’t just the advances in physics that excited him, but also Penn State’s role in these developments.” Just four months after retiring, a triple bypass surgery put Mr. Elsbach in the hospital. It was then that he contacted Penn State, looking for a way to impact the next generation of scientists and scholars. Although Mr. Elsbach lived modestly in a single-bedroom apartment in Florida, lined with books and scientific journals, he had gradually accumulated substantial assets throughout his lifetime. “He is a perfect example of someone who could have done a lot for himself,” reflects Dr. Banavar. “Instead, he used his money to create opportunities for future scientists.” With the help of the Office of Gift Planning and the Eberly College of Science, Mr. Elsbach crafted a charitable remainder unitrust that would help the department and its students to succeed. Mr. Elsbach understood that a world-class physics department begins with a superior faculty. Therefore, the first $500,000 received from his trust was to be used to establish a professorship, the Bert Elsbach Professor in Physics. A faculty member will soon be named to the position.
In total, Mr. Elsbach’s legacy exceeded $2 million—an extraordinary gift from an extraordinary friend of physics at Penn State. “Each time I spoke with Mr. Elsbach, I could tell that he was a very warm and giving man who was full of energy and enthusiasm,” notes Dr. Banavar. “The passion he showed is inspiring, and we were so lucky to have had him as an alumnus and friend. The Elsbach bequest has completely transformed the lives of our students. But even more importantly, it is a gift that will keep on giving, continuing to strengthen and grow our programs into the future. Bert Elsbach was a truly special person, and his spirit is very much alive in the Department of Physics.”
“The professorship is especially important to the physics department,” notes Dr. Banavar. “We have tremendously talented faculty members who do not have chaired positions. They are often recruited away to chaired positions at other universities. A professorship in the department is a very powerful tool for recruitment and retention, and it will make an enormous difference.”
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Office of University Development 2 Old Main University Park, PA 16802 W E
A R E
P E N N
S T A T E
Penn State is committed to affirmative action, equal opportunity, and the diversity of its workforce. U. Ed DEV 11-06
T h e C ampai g n Ob j e c t i v e s still to reach Progress
Progress to date: $1,204,915,259
Goal: $2,000,000,000 60%
Ensuring Student Opportunity
Students with the ability and ambition to attend the University will have this opportunity through scholarship support.
Total to date
Time elapsed: 52%
Goal
%
$221,033,501 $435,000,000 50.8%
Enhancing Honors Education
Students of exceptional ability will experience the best honors education in the nation.
$52,933,615 $100,000,000 52.9%
Enriching the Student Experience
Students will thrive in a stimulating atmosphere that fosters global involvement, community service, creative expression, and personal growth.
Building Faculty Strength and Capacity
Students will study with the finest teachers and researchers.
$75,669,009 $164,000,000 46.1% $110,521,827 $271,000,000 40.8%
Fostering Discovery and Creativity
Students and faculty members will come together within and across disciplines to pioneer new frontiers of knowledge.
$223,418,605 $386,000,000 57.9%
Sustaining a Tradition of Quality
Students will continue to work and study with faculty whose scholarship is enhanced by continuing philanthropic support.
$521,188,700 $644,000,000 80.9% as of November 30, 2010