Messiah College's The Bridge magazine: President's Report issue - Fall 2018 - Financials

F E AT U R E S T O R Y

PRESIDENT’S REPORT CONTENTS

12 Scholarships, Financial Aid 13 Timeline 14 Revenues, Expenditures 16 Net Assets 18 Lifetime Societies 20 New Heritage Society, Board of Trustees 22 Charitable Gift Allocation

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FINANCIALS

A President’s Report foreword from Trustee Linda Eremita

I

fell in love with Messiah College during the 1990s with each visit to campus and glimpse of the covered bridge.

In 2004, I was honored to join the Board of Trustees and call Messiah my family.

Since that time I have observed: • caring administrators • dedicated faculty • the creation of great new programs and • spectacular new buildings.

These are all ingredients for our students to go out into the world to “love one another as I have loved you” and employ Messiah-acquired intellect with great ethics.

This mandate to love as Jesus loved, to fully use one’s intellect and to place ethics above all else to become highly sought-after Messiah alumni, does not happen by accident. It begins with Messiah strategies that are crafted to deliver many resources to our students.

Strategic planning at Messiah calls for the highest goals to provide: • meaningful academic programs • solid resources for our students and • strong fiscal health for the College.

This kind of education, which nourishes the mind, soul and body, happens through Messiah’s: • great people living Christ’s message of love • strong academics and

• beautiful, state-of-the-art campus facilities.

This kind of environment requires the continuous replenishment of financial gifts to supplement what families cannot afford. That is why I give my time to Messiah College and make financial contributions. I am also dedicated because Messiah students and alumni make the world a better place.

What a wonderful world it would be to have an increasing population of Messiah graduates fill the world each year with their love and intellect! Let’s help to continue that population growth of exceptional Messiah graduates by donating to Messiah scholarships and facilities … FOR THE COMMON GOOD. —Linda Eremita, Messiah College Trustee

SCHOLARSHIPS THE FOLLOWING SCHOLARSHIPS, ESTABLISHED DURING THE 2017-18 ACADEMIC YEAR, ARE AN INVESTMENT IN THE LIVES OF STUDENTS THAT WILL YIELD FRUITFUL AND LASTING RETURNS. • Accounting Alumni Scholarship • Alexander Scholarship Endowment for Civil Engineering • Marlin and Nancy Benedict Accounting Scholarship Endowment • Marlin and Nancy Benedict Nursing Scholarship Endowment • The Boyd Foundation Scholarship • Carole DeSoto Scholarship Endowment in the Arts • Terry L. & Donna B. Earhart Student Leadership Development Fund • Gibson Accounting Leadership Award

• Phillip & Cathy Headland Family Scholarship • D. Ray Hostetter Scholarship Endowment • International Student Scholarship Endowment • Alvin & Allyne Isaac Family Scholarship Endowment • Dr. Howard Kenig Fund for Student & Faculty Research in the Philosophy of Religion & Science • Kieffer Fund for Student Research in the Applied Health Sciences • V. Celia Lascarides Scholarship Endowment • Martin Family Accounting Scholarship Endowment

• Dr. Bernardo A. Michael Grant • W. Edwin & Miriam G. Naugle Endowed Scholarship • Phipps Family Endowed Scholarship Fund • Andrew & Jane Samuel International Students Scholarship Endowment • E. Morris and D. Leone Sider History Scholarship Endowment • Unsung Hero Award • Joan Wagner Endowed Nursing Scholarship • Wolfkill Family Scholarship • Women of Influence Scholarship

Growth of Financial-Aid Grants At Messiah

$40 $30 $25 $20 $15 $10 $5

2003

2006

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2009

2012

2015

2018

SOURCE: INFO FROM GAAP P&L

$0

in millions

$35

FINANCIALS

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REVENUES (IN 000S)

DONOR PROFILE

Student tuition and fees Less, financial aid Net tuition and fees Government grants and appropriations Gifts and grants Capital gifts Endowment return designated for operations Investment income Other sources Auxiliary enterprises Total operating revenues

99,192 (40,961) 58,231 964 2,253 8,293 7,245 1,048 4,035 21,248 103,317

95,597 (38,959) 56,638 981 3,253 627 7,187 1,145 4,050 20,686 94,567

93,411 (37,894) 55,517 1,118 3,724 1,508 7,148 637 3,946 21,065 94,663

EXPENSES (IN 000S)

Instructional Academic support Student services Public service Auxiliary enterprises Supporting services, institutional support Total operating expenses Net operating income

38,907 37,585 35,016 9,388 9,204 9,512 19,874 19,028 17,718 2,496 2,330 2,617 16,198 15,440 15,230 14,838 14,127 14,148 101,701 97,714 94,241 1,616 (3,147) 422

N O N - O P E R AT I N G R E V E N U E S , E X P E N S E S A N D OT H E R C H A N G E S ( I N 0 0 0 S )

Endowment and life income gifts 2,116 Endowment investment returns, net of amount designated for operations 2,218 Change in value of beneficial interest in perpetual trusts 53 Other non-operating income - Investment return on trusts and gift annuities 348 Change in value of split interest agreements (Trusts and CGA’s) (342) Total non-operating revenues, expenses and other changes 4,393 Total changes in net assets Net assets, beginning of year Net assets, end of year

1,563

2,078

5,406 (8,265) 222 (292) - 653 (70) 936 (79) 8,780 (6,628)

6,009 5,633 (6,206) 243,718 238,085 244,291 249,727 243,718 238,085

7% Endow

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iat s and a p p ro p r

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vi

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s2 %

c su p p ort mi

de

Supporting services

ca

ran t

tg

en

m

15%

s

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16%

Auxiliary enterprises

ic

ce ur

e o m rn c n Gi 1 % Inve st m ent i ove ft s an d grants 1 % G

20%

Student services

bl

so

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8% Capital gifts

38%

Instructional

Pu

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21%

Auxiliary enterprises

ated for op e r ati sign on de s

56%

Net tuition and fees

2%

Expenses

s

rn tu

Revenues

9%

A

BRIAN ’99 AND JOELA ’99 (CAMPBELL) MBUU A PERSONAL STORY: We graduated from Messiah College in 1999 and are fortunate to live and work in the Harrisburg area. As a result of our close proximity to Messiah, we have had opportunities to interact with other individuals in the community who currently work at the College or are fellow alumni. Through several of these interactions, we learned of Messiah’s desire to enhance its diverse learning community.

Upon reflection of our experiences at Messiah, we realized that many of the blessings we have received – such as a stronger faith, meaningful friendships and careers we are passionate about – were built as a result of our undergraduate journey at Messiah. There were many individuals who touched our lives in a positive way, including faculty, co-curricular leaders and work-study supervisors.

Providing access to a great educational experience to international students was an idea that was placed on our hearts. This idea inspired us to collaborate with Ryan ’03 and Twila ’03 (Jones) Glenn, Chilobe ’99 and Megan Kalambo, David ’88 and Bonnie ’90 (Rapp) Millary, and Anthony ’06 and Jessica ’08 (Debrah) Thomas to lead the fundraising efforts establishing the International Student Scholarship Endowment. We are proud that we were able to partner with other donors, including the Messiah College Board of Trustees endowment matching challenge initiative, to make this scholarship a reality for future Messiah students.

As Messiah continues to grow in a variety of areas, we are excited that future international students will continue to have an opportunity to attend Messiah, participate in its learning community and graduate with the tools necessary to be a Christian leader and serve the Lord around the world.

FINANCIALS

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S U M M A R Y S TAT E M E N T O F E N D OW M E N T F U N D S ( I N 0 0 0 S )

Donor endowment Board-designated endowment Total endowed funds Endowment percentage change

41,756 96,328 138,084 2.91%

MESSIAH COLLEGE NET ASSETS

38,904 95,278 134,182 6.45%

34,422 91,627 126,049 4.80%

$ millions 250

ASSETS (IN 000S)

Cash and cash equivalents Notes and accounts receivable, net Promises to give, net Interest receivable Inventories Prepaid expenses and other assets Investments, gift annuities, and assets held in trust Loans receivable - students Deposits with trustee under debt agreements Beneficial interest in perpetual trusts Property and equipment, net Total assets

7,286 12,661 10,464 2,235 1,794 1,761 7,389 2,362 4,219 194 194 190 574 573 546 1,282 1,245 1,548 152,413 146,682 144,056 2,910 2,855 2,854 5,320 - 14,526 3,978 3,925 3,704 156,356 157,577 145,320 339,937 329,868 329,188

200

150

LIABILITIES AND NET ASSETS (IN 000S)

Liabilities: Accounts payable and accrued expenses Student deposits Funds held in custody for others Deferred revenue Annuities payable Funds held in trust for others Long-term debt U.S. Government grants refundable Other liabilities Total liabilities Net assets: Unrestricted Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets Total change in net assets

DONOR PROFILE

KORIN MARTIN ’17 A HEART FOR GIVING Korin Martin ’17 recently began funding a monetary prize for the Unsung Hero Award through the Student Activities Board (SAB).

While a student at Messiah, Martin had been involved in student leadership through SAB as treasurer and had received the inaugural Unsung Hero Award as a senior.

“Winning this award made me feel 1 6 | FA L L 2 0 1 8 • T H E B R I D G E • M E S S I A H C O L L E G E

8,742 1,482 67 1,480 3,892 304 68,744 2,504 2,995 90,210

8,598 1,449 34 1,442 3,853 501 64,872 2,502 2,899 86,150

8,963 1,595 51 1,243 6,272 819 66,916 2,435 2,809 91,103

192,294 193,955 189,870 18,772 13,046 13,878 38,661 36,717 34,337 249,727 243,718 238,085 339,937 329,868 329,188 6,009 5,633 10,724

appreciated and reminded me that my hard work hadn’t gone unnoticed,” said Martin.

“Being involved with student leadership was transformative in my college experience and life. I wanted to find a way I could continue to support student leadership and the impact that this experience can have on their lives.”

The award is given to a leader who supports

100 Unrestricted Temporarily Restricted Permanently Restricted

50

0 2010

2012

2014

2016

2018

and serves their team when no one is looking.

“Those qualities are things that I learned and valued through my leadership experience,” said Martin. “I wanted to make this award even more special by creating a monetary gift to go along with the honor of being selected for the award.”

She has several family connections to Messiah, including brother Mitchell ’12; brother Conrad ’20; and her aunt Karen Rohrer Crouse ’83. We are grateful to Martin for her commitment to future students who model her example of servant leadership.

FINANCIALS

SU PPORTERS OF MESSIAH COLLEGE

1.2%

Government

21.7%

Alumni

21.3%

Trustees

19.6%

Current and former parents

17.3%

Businesses

10.2%

Friends

0.5%

8.1%

Organizations

Foundations

0.1%

Churches

LIFETIME SOCIETIES M E S S I A H L E G AC Y

Lifetime cumulative giving totaling $10,000,000 or more Leonard Fry† Calvin G. & Janet C. High* Abe† & Gladys† Mellinger MESSIAH TRUST

Lifetime cumulative giving of $1,000,000 to $9,999,999 Vernon E. & Faye R. Anderson Ernest L.† ‘48 & Kathryn G. (Tyson) ‘46 Boyer Brethren in Christ - Cooperative Ministries Covenant Fund Conestoga Wood Specialties Norman† & Elizabeth M. Hahn* Charles F.† & Ann E.† Frey* Emerson C.† ‘57 & May† Frey* Larry E. & Lois A. Gladfelter* Harry R.† Hitchcock William M.† & Lucille M.† Hollinger Lawrence L. & Julia Z. Hoverter Charitable Foundation David G.† & Beatriz A.† Howe Richard E.† & Louise K.† Jordan* Richard E. ‘70 & Sharon N. Jordan 1 8 | FA L L 2 0 1 8 • T H E B R I D G E • M E S S I A H C O L L E G E

Josiah W. & Bessie H. Kline Foundation The Kresge Foundation Ralph S.† & Dorothy Larsen* Lilly Endowment Inc. Martin’s Famous Pastry Shoppe James A. & Donna F. Martin * McCormick Family Foundation W. Edwin† & Miriam† Naugle Galen M. ‘48 & Boots L.† (Buckwalter) ‘49 Oakes The Parmer Family Foundation George A. & Barbara Parmer* D.S.† & Helen† Poorman Sawyer Products Maurice† & Dorothea I.† Shaffer John E. † & Ida† Sollenberger The Stabler Foundation Donald B. † & Dorothy L.† Stabler LeRoy M.† ‘55 & Eunice (Frey) ‘58 Steinbrecher* The Whitaker Foundation John L.† & C. Jeanette† Witmer World Vision Inc. Anonymous Donors (5) THE PRESIDENT’S CIRCLE

Lifetime cumulative giving of $250,000 to $999,999 Association of Independent Colleges & Universities of Pennsylvania M. Louise† Aughinbaugh

Richard S.† & Ann B. Barshinger Frances H.† Berg Quentin Berg Trust Bingaman & Son Lumber Co. John A. Blessing Foundation Marion† Barker Burr David E.† ‘61 & Jean Byer Charlie B. ‘56 & Miriam N. (Nissly) ‘56 Byers Clemens Family Corporation Asa W.† ‘16 & Anna E.† (Kipe) ‘16 Climenhaga Cumberland County Industrial Development Authority J. Harold† ‘58 & Ruth† (Eckert) ‘58 Engle * Melvin E.† ‘48 & Vivian Eyster * Richard F.† Fake ‘37 C.J.† & Harriet† Fredricksen S. Johannah† Gearhart General Electric Foundation HARSCO Corporation Scott A. ‘89 & Gaye Y. Heintzelman * Evert C.† & Mildred S.† Hokanson Charles B. & Sally Hoober George C.† & Patricia† Hoopy Clyde W. & Barbara A. Horst D. Ray† ‘48 & Audrey (Fisher) ‘50 Hostetter * Clarence W. † Hottel Sr. Randall B. ‘66 & Judy G. Inskip Johnson & Johnson Family of Companies W.M. Keck Foundation W. Wayde† & Glenda Kelly

FINANCIALS

Allen F. Knouse ‘68 Leon E.† & Margaret M.† Kocher Jeffrey F. ‘74 & Leslie (Lustig) ‘75 Lehman Wayne A. & Martha G. Marcho * Aaron J. ‘48 & Jean† Martin Stephen W. ‘78 & Jana M. (Shultz) ‘77 McBeth Jacob & Ada Miller Trust Kenneth V. & Renee A. Moreland William L.† & Geraldine† Murray Paul W. & Laura† Nisly Jeannie Pascale PBS Coal Inc. Pew Memorial Charitable Trusts Preis Investment Company Harry W.† & Nancy R. Preis

Marlin & Nancy† Riegsecker Andrew S. ’84 & Jane D. (Davis) ’83 Samuel Maynard & Carolyn Sauder Oscar F.† & Pauline M.† Shafer Jerry T.† & Hilary M. Simpson The Joseph T. and Helen M. Simpson Foundation L.B. Smith Educational Foundation Inc. Robert H.† ‘42 & Marilyn L. (Byer) ‘51 Smith Ellis R.† & Louise P.† Speakman The John Frederick Steinman Foundation Stover Family Foundation Matthew E. & Debra Stover Kermit† Thomas Marlin H. & Doris Ann Thomas

Turkey Hill Dairy Daniel† Vollmer The Franklin H. & Ruth L. Wells Foundation Paul A. ’63 & Elaine K. ’57 (Crider) Wengert Amelia C.† Winter Leslie K. & Marion H. Witmer Kenneth E.† & Minta Wolfe Anonymous Donors (8) *M essiah College thanks the parents of our current and former students who continue to generously support the College’s ongoing education mission. † Messiah College gratefully acknowledges the generosity of donors who are deceased.

N E W H E R I TAG E S O C I E T Y M E M B E R S

Thank you to those who became members of the Heritage Society, now with 634 members, during the 2017-2018 fiscal year.

The Heritage Society was established to appropriately thank those who have included Messiah College in their wills, created a deferred gift arrangement or established an endowed fund. Their dedication is greatly appreciated.

SARAH HENRY ’19

Joanna E. Barnhouse ’11, MA ’16 Tiffany D. Burrows ’15, MA ‘18 Robert E. ’62 and Judith (Wolgemuth) ’63 Hamilton H. Royce ’48 and Phyllis E. (Engle) ’51 Saltzman Gerald L. ’72 & Donna L. Underkoffler Ronald J. and Joan H. Webb B OA R D O F T R U S T E E S | 2 0 1 8 –2 0 1 9

A LU M N I C O U N C I L | 2 0 1 7–2 0 1 8

Gerald Wingert ’47 Gerald Wolgemuth ’58 Doris Crider ’60 Ruth Wolgemuth ’60 Kathleen Stuebing ’63 Rudy Crider ’71 Gina Gilliam ’83 Kurt Shook ’92 Craig Flemmens ’93, Chair Mark Hopkins ’94 George Book ’97

Barbara Bingham ’03 Ray Chung ’04 Charles Blachford ’06 Sean Sims ’08 Ulysse Toussaint ’08 Jacob Specht ’11 Derek Mosley ’13 Jean Mosley ’13 Paul Broomel ’14 Elizabeth Gallo ’16 Moses Kavishe ’16 Jenna McClain ’17

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George A. Parmer chair Harrisburg, Pa. Dr. Craig E. Sider vice chair West New York, N.J. Heidi G. Bingaman ’80 secretary Kreamer, Pa. Rim A. Hinckley ’83 treasurer New York, N.Y. Barbara A. Avery Safety Harbor, Fla. Sherrie Bailey Randallstown, Md.

Larry Bashore Mechanicsburg, Pa. Wendy L. Cole Winfield, Pa. Linda D. Eremita Pittsburgh, Pa. Richard L. Godshall Souderton, Pa. Anthony H. Hahn East Earl, Pa. Joachim “Joe” J. Huerter Annville, Pa. Richard E. Jordan II Mechanicsburg, Pa.

J. Gary Langmuir Manheim, Pa. Garret Larsen Spring, Texas Emerson L. Lesher Mechanicsburg, Pa. James A. Martin Chambersburg, Pa. Kenneth V. Moreland West Friendship, Md. Barbara G. Moses Charlotte, N.C. Rodney L. Musser Pomona, Calif.

Edward P. Nevin Finksburg, Md.

Linda R. Pheasant Wormleysburg, Pa. Marlin Riegsecker Upland, Calif.

Alan Robinson Dillsburg, Pa. Anthony J. Schiano Duck, N.C. Eunice F. Steinbrecher Greenville, Ohio Kimberly Thornbury New York, N.Y. John C. Wagner Jr. Phoenix, Md. Jerry L. Wenger Bird in Hand, Pa.

FINANCIALS

DONOR PROFILE

I chose Messiah because of its great reputation for rigorous academics in a Christian environment and found a community of people who would forever shape my life.

Being a part of this special community allowed me to grow in my faith, develop wonderful friendships with other students and professors and learn how to incorporate my love for Jesus and others into my nursing major.

After getting married and having three children, I always thought it would be great to have even one of them attend Messiah.

During their searches, I encouraged them to look at many colleges but was thrilled when my son Stephen ’16 and daughter Sarah ’21 decided upon Messiah!

I was pleased that the sense of community I had found was still there for my children.

Stephen explains, “Community is a buzz word at Messiah for a reason. There’s real and authentic journeying with other people. That experience has given me a vision and passion to ‘pass it on’ and create community in our world wherever I am.”

Stephen flourished with the many opportunities to grow in his faith and found his

COURTESY OF THE HAVERSTICK FAMILY

THE HAVERSTICKS FROM JUDY HAVERSTICK ’87

From left: The Haversticks include David, Judy ’87, Stephen ’16, SunHae, Sarah ’21 and Josh.

passion for ministry. Supportive and available professors guided him to his current job. Friendships formed at Messiah continue to be a vital part of his life three years after graduating.

Sarah’s love for Messiah started through the many visits to see her brother Stephen.

She says, “I always knew Messiah was special by the way my mom talked about it. I knew it was true when I visited my brother and saw him thrive, and now I know it for myself because I’m experiencing the incomparable love and joy that comes from living in this community.” As a sophomore, Sarah has immersed herself in this community through various campus ministries and meaningful

relationships.

Sharing my love of Messiah with my husband through participation in the Parents’ Advancement Council has been an honor and a privilege. It has provided him with an understanding of what a special community Messiah is. He admits he wishes he could have been a part of Messiah community as a college student but is thankful his kids are able to have this opportunity.

Our family feels so fortunate and blessed to be a part of the Messiah College community and legacy. Sharing the title Messiah alumni with two of my children is a special bond we will have forever!

C H A R I TA B L E G I F T S A L LO C AT E D BY P U R P O S E F O R 2 0 1 8 ( F I S C A L Y E A R)

6.1%

Messiah fund

37.2%

Building projects

3.1% 20.2%

Endowment

12.7%

Restricted gifts and grants

Unrestricted bequests

10.9%

Deferred gifts

3%

Government grants

0.2%

Budgeted restricted

6.6%

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Designated budget