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IVY PLUS IVY PLUS DEVELOPMENT DEVELOPMENT

OFFICERSOFFICERS

John E. Pepper, Jr.John E. Pepper, Jr.

September 19, September 19, 20052005

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Importance of the leading Importance of the leading private schools of higher private schools of higher education and the role of education and the role of Philanthropy in delivering Philanthropy in delivering our mission.our mission.

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Contributions which our Contributions which our institutions and our institutions and our graduates are making are graduates are making are possible because of the possible because of the tremendous growth in tremendous growth in private philanthropy.private philanthropy.

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There will be a great There will be a great need for increased need for increased private philanthropy to private philanthropy to continue to better fulfill continue to better fulfill our mission.our mission.

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Our universities face Our universities face increased competition increased competition in fulfilling our in fulfilling our Missions.Missions.

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Operating Revenue($ in Millions)

1994 2004$

Growth% Annual Growth

Endowment Income 132 502 370 14.3%

Income (excl. Grants and Contracts)

589 1187 598 7.3%

Endowment % of Total Income (excl. G&C)

22% 42%

Income All Funds (incl. Grants and Contracts)

853 1678 825 7.0%

Endowment % of Total Income 15% 30%

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Tuition, Room and Board (Net of Aid)

($ in Millions)

1994 2004$

Growth% Annual Growth

Tuition, Room and Board (Net of Aid)

150 216 66 3.7%*

*+2.3% for 2000 to 2004

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Student Aid by Source of Funds

$ in Millions (% of Totals)

1994 2004

General Appropriations 45 (49%) 31 (18%)

Endowment 19 (20%) 90 (54%)

All Other Sources 30 (31%) 46 (28%)

Total Funds 94 (100%) 167 (100%)

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Continued need for Continued need for financial aid to expand financial aid to expand the number of students the number of students who can afford our who can afford our universities’ education.universities’ education.

1010

The expansion of The expansion of research and programs research and programs of study into new areas of study into new areas critical to the critical to the improvement of society.improvement of society.

1111

The need to fully The need to fully fund replacement fund replacement of our facilities.of our facilities.

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““Don’t you already have Don’t you already have enough money? Look at enough money? Look at the size of your the size of your endowment. It’s huge. endowment. It’s huge. Are you really spending Are you really spending wisely?”wisely?”

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““I’m not seeing the kind I’m not seeing the kind of management of management discipline that I see in discipline that I see in business being applied business being applied to universities to make to universities to make every dollar go further.”every dollar go further.”

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Giving early Giving early matters a lotmatters a lot..

1515

Engage alumni Engage alumni where they where they

live.live.

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Get as many Get as many graduates as graduates as possible to possible to reunions.reunions.

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Look for ways to Look for ways to involve graduates on involve graduates on advisory committees advisory committees and other activities and other activities on campus.on campus.

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Make the “stop by” Make the “stop by” visits of Development visits of Development Officers in local Officers in local communities communities meaningful.meaningful.

1919

As people start to As people start to reach my age, reach my age, emphasize planned emphasize planned giving.giving.

2020

Never forget to Never forget to make the case why make the case why private institutions private institutions of higher education of higher education like ours are vital.like ours are vital.

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Never forget the power Never forget the power of a sincere, of a sincere, handwritten, well-timed handwritten, well-timed “thank you” note from “thank you” note from the President of the the President of the University.University.