board of directors report - january 21, 2016

January 2016 Table of Contents Page 1

TABLE OF CONTENTS AGENDA & FINANCIALS ................................................................................................................................................... 2

BOARD MEETING AGENDA .............................................................................................................................. 2

TREASURER’S FINANCIAL REPORT .................................................................................................................. 3

MEETING MINUTES FROM OCTOBER 8, 2015 ............................................................................................................... 4

BOARD INFORMATION .................................................................................................................................................... 17

2016 BOARD OF DIRECTORS ........................................................................................................................... 17

2016 BOARD GOVERNANCE ............................................................................................................................ 18

2016 HEP AMBASSADORS ................................................................................................................................ 19

2016 HEP BOARD MEETING CALENDAR .................................................................................................... 20

NATIONAL DIRECTOR’S REPORT: 2015 YEAR END .................................................................................................. 21

2016 STRATEGIC PLAN ..................................................................................................................................... 32

THE CASE FOR GIVING.................................................................................................................................... 38

FUNDING PHILOSOPHY .................................................................................................................................................. 40

THE APPRENTICESHIP PROGRAM (PROGRESS UPDATE) .......................................................................................... 44

2016 GRANT APPLICATION DEADLINES & ANNOUNCEMENT DATES ................................................................. 45

GRANT APPLICATIONS AT-A-GLANCE ........................................................................................................................ 46

GRANT APPLICATION SUMMARIES ............................................................................................................................... 48

FULL GRANT APPLICATION MATERIALS ..................................................................................................................... 58

WEBSITE GRANT APPLICATION PROCESS .................................................................................................... 59

CLOVER PARK TECHNICAL COLLEGE FOUNDATION (CPTC)* .............................................................. 60

MCPHERSON COLLEGE* ................................................................................................................................. 76

WASHTENAW COMMUNITY COLLEGE FOUNDATION (WCC)* ................................................................ 97

LEMAY – AMERICA’S CAR MUSEUM/MCPHERSON COLLEGE* ............................................................. 111

INTERNATIONAL YACHT RESTORATION SCHOOL, SCHOOL OF TECHNOLOGY AND

TRADE (IYRS)* ................................................................................................................................................ 125

DE ANZA COLLEGE ........................................................................................................................................ 145

FREEDOM HIGH SCHOOL (FHS) .................................................................................................................. 159

LYONS TOWNSHIP HIGH SCHOOL (LTHS) ................................................................................................ 172

THE APPRENTICESHOP .................................................................................................................................. 182

2015 REPORTS ................................................................................................................................................................. 193

SOCIAL MEDIA REPORT ................................................................................................................................. 193

2015 AT-A-GLANCE GRANTS ADMINISTRATION REPORT ..................................................................... 194

* = Previous Grant Applicant

January 2016 Board Meeting Agenda Page 2

BOARD MEETING AGENDA

Thursday, January 21st, 2016 Dial-In Call

Dial-In Number: 253-683-3975 Passcode: 0104223#

10:00am – 11:30amCT

I. Chairman’s Welcome and Remarks – David Madeira

II. Approval of October 8th, 2015 Board Meeting Minutes – David Madeira

III. National Director’s Report – Diane Fitzgerald

IV. 2015 Financial Review – Dan Beutler

V. Grant Applications Review – Diane Fitzgerald

VI. Grant Application Deadlines – Diane Fitzgerald

VII. Closing Remarks – David Madeira

January 2016 Treasurer’s Financial Report Page 3

TREASURER’S FINANCIAL REPORT

Hagerty Education Program at America’s Car Museum

Financial Notes

January 21, 2016 Board Meeting

January 2016 Treasurer’s Financial Report Page 3-A

January 2016 Meeting Minutes from October 8, 2015 Page 4

MEETING MINUTES FROM OCTOBER 8, 2015

January 2016 2016 HEP Board of Directors Page 17

2016 HEP BOARD OF DIRECTORS

Dan Beutler Jim Menneto Hagerty Hemmings Motor News 141 Rivers Edge 222 Main Street Traverse City, MI 49684 Bennington, VT 05201 Direct: 231.933.3760 Bus: 802.447.9508 Mobile: 231-357-2145 Mobile: 802.578-6801 Email: [email protected] Email: [email protected] Keith Flickinger T. G. Mittler Precision Motor Cars, Inc. 830 Gonzales Road 808 North Fenwick Avenue Sante Fe, NM 87501 Allentown, PA 18109 Mobile: 505.603.7452 Bus: 484.239.8566 Home: 505.820.6014 Mobile: 484 239.8566 Email: [email protected] Email: [email protected] McKeel Hagerty Clint Sly Hagerty Hagerty 141 Rivers Edge 141 Rivers Edge Traverse City, MI 49684 Traverse City, MI 49684 Direct: 231.933.3733 Direct: 231.932.9932 Mobile: 231.883.3773 Mobile: 727.638.1917 Email: [email protected] Email: [email protected] David Madeira Mike Stowe LeMay – America's Car Museum Great Lakes Motor Works 2702 East D Street 976 East Division Tacoma, WA 98421 Boyne City, MI 49712 Bus: 253.779.8490 ext. 1001 and Mobile: 253.985.0058 PO Box 402, 1345 M-75 South E-mail: [email protected] Boyne City, MI 49712 Bus: 231.582.9100 Paul Miller Mobile: 231.622.1061 LeMay – America’s Car Museum Email: [email protected] 2702 East D Street Tacoma, WA 98421 Bus: 253-779-8490 ext. 1006 Mobile: 253-219-7285 E-mail: [email protected]

January 2016 2016 Board Governance Page 18

2016 BOARD GOVERNANCE I. Officers

A. Chairman David Madeira

B. Vice Chair T.G. Mittler

C. Treasurer Dan Beutler

D. Secretary Mike Stowe

II. Board Classes

A. Class of 2016

1. McKeel Hagerty

2. David Madeira

3. Mike Stowe

B. Class of 2017

1. Clint Sly

2. Keith Flickinger

3. T.G. Mittler

January 2016 2016 HEP Ambassadors Page 19

2016 HEP AMBASSDORS

Patrick Barnes Josh Baum Community College Instructor, Retired Conservator, Private Collection ACM Volunteer Goleta, CA Portland, OR and Indio, CA Herb Clark Drew Feustel Automotive Club of Sun City, Founder NASA Astronaut Sun City West, AZ Houston, TX Ryan Levesque Bud McIntire Restoration Carchaeologist, Kip Motor Company (First HEP Apprentice)

Director of Student Services at Great Lakes Restoration Shop, Retired

Dallas, TX Winston Salem, NC Stephen Murphy Stacy Puckett Collection Manager, Private Collection Restoration Specialist, Classic & Exotic Services,

Inc. Chicago, IL Detroit, MI Burt Richmond David Rising LeMay – America’s Car Museum Board of Director, Retired

Automotive Engineer

Chicago, IL Stuttgart, Germany (Former Tacoma, WA Resident)

Lyn St. James Indy Racer Phoenix, AZ and Indianapolis, IN

January 2016 2016 HEP Board Meeting Calendar Page 20

2016 HEP BOARD MEETING CALENDAR

MONTH MEETING/ PURPOSE

LOCATION DATE TIME

January*

Grant Application Deliberations

(Tuesday, December 15, 2015 Deadline)

Dial-In Call Thursday

January 21, 2016 10:00am -

11:30amCT

April* Grant Application

Deliberations (Tuesday, March 1, 2016 Deadline)

Dial-In Call Tuesday

April 19, 2016 10:00am -

11:30amCT

May HEP Board Meeting with Site Visit – Location TBD

TBD TBD TBD

August* Grant Application

Deliberations (Friday, July 15, 2016 Deadline)


August 30, 2016 10:00am -

11:30amCT

October

HEP Board Meeting (milestones, strategy)

Hershey, PA The Hershey

Lodge

Thursday October 6, 2016

9-11amET; Executive Session

11-11:30am

December* Grant Application

Deliberations (Tuesday, November 1, 2016 Deadline)


December 13, 2016 10:00am -

11:30amCT

2016 GRANT APPLICATION DEADLINES & ANNOUNCEMENT DATES *2016 will have 4 grant deadlines, instead of the usual 3 annually, to accommodate those institutions and individuals who have budgeted the December 11, 2015 deadline into their Q4 plans. Deadlines and announcement dates for 2016 are:

Friday, December 11th, 2015 deadline Thursday, January 28th, 2016 announcements

Tuesday, March 1st Tuesday, April 26th

Friday, July 15th Tuesday, September 6th

Tuesday, November 1st Tuesday, December 20th In 2017, we will return to 3 grant deadlines which will be similar early March – mid-July – early

November

January 2016 National Director’s Report Page 21

NATIONAL DIRECTOR’S REPORT HEP at ACM BOARD MEETING REPORT - Confidential OVERVIEW: 2015 Year End National Director’s Report December 27, 2015 LOCALIZING The strong preference of people to give back to their own communities is what drove this approach strategically, and it has not disappointed – with immediate results and potential major funding results by year end. “Recruiting” strong grant applicants in under-served States has broadened HEP’s reach with grants awarded to three new organizations, one for the first time in Illinois and returning to North Carolina after a three year absence. Strong PR in North Carolina announcing the HEP scholarships grant – called the Classic Car Restoration Scholarship – made front pages of local newspapers which attracted new matriculating students to the school. In all, there were 20 trips, accounting for 45,000 air miles and 15,000 road miles in 11 States and 1 Province taken by HEP’s National Director in 2015. Each trip tackled both sides of the “HEP Equation” = raising money to give it away. Trips were to “auto hot spots” and were generally 4-5 days long and included a mix of scheduled meetings with grant awardees, denied applicants, ACM members, HEP donors & future donors, restoration shops, schools and car clubs. The relationships being cultivated across the country in this way has expanded awareness and appreciation about HEP at ACM and increased HEP’s donation base. As of today, Automotive Hot Spots where HEP has made meaningful inroads include: 1) Arizona (Phoenix, Scottsdale, Sun City West, El Mirage, Mesa) 2) California (Monterey, San Jose, Scotts Valley, Cupertino, Costa Mesa, Santa Ana, Laguna Hills) 3) Florida (Jacksonville) 4) Illinois (Chicago, Calumet City, La Grange, Carbondale/Murphysboro, Red Bud, Addison) 5) Indiana (Indianapolis, Speedway) 6) Kansas (McPherson, Salina, Kansas City) 7) Massachusetts (Lenox) 8) Michigan (Cadillac, Detroit, Ann Arbor, South Bend, Troy) 9) Missouri (St. Louis, Festus) 10) Nevada (Las Vegas) 11) New Jersey (Lebanon, Atlantic City, Egg Harbor Township, Vienna) 12) New York (Albany, Latham, Troy, Saratoga Springs) 13) North Carolina (Charlotte, Mooresville, Sanford, Durham, Monroe) 14) Pennsylvania (Allentown, Hershey, Williamsport) 15) Utah (Orem) 16) Washington State (Tacoma, Seattle, Lakewood) 17) Canada (Ontario)


The 2015 Plan called for localizing in 6 hot spot States. By year end, we exceeded that by 11, for a total of 17 hot spot States and 55 cities. Between these and the editorial/advertising exposure HEP has gotten – through magazine/newspaper stories and magazine/car event program book ads – HEP has gotten exceptional exposure in 2015. Almost exclusively, HEP’s fundraising efforts are directed at new or renewed prospects in these geographies. The role of National Director is largely external-facing and relationship driven. Year-to-date, more than 300 people – donors, prospects, instructors, school administrators, shop owners, car club leaders & members, individual students and graduates, industry influencers – of the thousands of people we encounter, are “regularly” cultivated. With our current team of specific, named ambassadors – paid (Lyn St. James) and volunteer (Herb Clark, Stephen Murphy, Stacy Puckett, Josh Baum, astronaut Drew Feustel, auto tech instructor Tim Chambers, Bud McIntire, Patrick Barnes, Burt Richmond, David Rising) – with the stable team of employed HEP staff, managing a larger number of relationships properly will be possible. FUNDRAISING & ENGAGEMENT Fundraising efforts have been concerted and consistent mainly through prospecting key ACM targets and new targets with the HEP message and mainly in Q3 and Q4. Of the key ACM targets on HEP’s list, none has given or given significantly in the past. Between 10 HEP Ambassadors and 3 key Hagerty Insurance field reps, HEP has been able to blanket the United States and get on the radar of collectors and clubs with good results in minor but repeated donations. Fundraising momentum is excellent, based on “round trip communications” with targets expressing genuine interest and desire to give, and some results are in. In Q4, one major donor has committed to a 5-year pledge of $70,000 and made a pledge payment of $20,000. A lifelong donor relationship has been established with a significant industry influencer who had previously given once at $1,000, but ended the year with a $6,000 donation and a year-end matching challenge over 14-days, which has brought in $2,500 in new donor donations to date (12-27-15). In-kind donations exceeding $300,000 from two renewing donors for advertising and additional support staff were recorded in Q4. But delayed, one-on-one fundraising major asks, because of program focus throughout the year, will change outcomes for 2015. As it affects budget, revenue will be down for the year, as will expenses. Our targeted list of new major prospects keeps growing, from 45 to 57, mostly with people who are not yet part of the ACM or HEP worlds, while cultivation of prospects continued through the end of the year with home state visits in Pennsylvania, Nevada, New Mexico, Oregon, Upstate New York and North Carolina. Coordinated efforts with HEP Ambassadors and Hagerty Insurance field reps have proven effective, with a 65% close rate for minor gifts, up to $1,000/donation. The HEP stories we created and reported on in Under The Hood and Lyn St. James’ Report printed and digital newsletters – 5 editions – have also proven to be effective tools for the team in generating awareness, interest, desire to give and giving and an excellent “asking tool”.


The Major Gift cultivation is going well but slowly, and is off track, with 3 more new pledges of $100,000 from car enthusiasts to close between now and early-mid Q1 2016 reduced to 1-2 expected. HEP has 5 Founder Pledge Renewals in the early stages of asking, with a systematic communications campaign underway, a collaboration with HEP Board Member, Clint Sly. HEP has 30 key prospects being targeted for major gifts beginning at $20,000, including Lyn St. James’ vintage racing prospects. Specific focus throughout 2015 has been on 6-8 prospects, of which 75% have had major life changes in Q4 distracting them from year-end giving. With continued cultivation, it is expected that half of these prospects will make a commitment to HEP in 2016. The ACM Signature Events are a planned and generous source of funding. The Annual Gala on June 26th netted $40,700 from the live auction, up from $30,000 in 2014. HEP received $2,275 from the Pacific Northwest Concours live auction, a first-time gift in 2015. Pledge payments due in early Q1 2016 equal $120,000 from 5 HEP Founders. HEP’s direct mail Appeal #2 (an ask to car clubs) and Appeal #3 (an ask to restoration shops) were partially developed in Q4 but never got out the door. They will jumpstart 2016. Donations from the March 6, 2015 Appeal #1 (a thank you, no ask, to 750 Hagerty policyholders) continued through August 31, 2015, totaling $4,400 from 65 donors, an 8% return. HEP had disappointing results with Concours organizers, a hoped for source of revenue as a charity beneficiary. Several of our targeted Concours organizers were locked-in by legal agreements with their charities. Our best outcome was being allowed to participate, in various ways (display, panel discussion, student advocacy), at the Concours without violating those legal agreements. HEP will continue to pursue charity-status in the coming years, but it will be a slow process and the price to HEP may be high – supplying a legion of volunteers to work the various Concours. Steady giving at the $50 - $1,000 levels “minor gifts” in large numbers helped perpetuate the momentum of HEP’s mission. The $1 donations have been replaced with $5 donations by thousands of people, which we appreciate and thank in writing. Total estimated year-to-date donations from Hagerty Policyholders, who make up 60% of the minor donors, contributed $32,477 from 4,126 policyholders, compared with $30,740 from 5,518 policyholders in 2014, a 6% increase in donations with about a 26% decrease in number of policyholders. In June 2015, the Hagerty policy renewal forms were modified, adjusting the HEP donation boxes from $1, $5, Other to $5, $25, Other. All policyholders at all levels are thanked in writing via postal mail.


Here are the monthly donations from Hagerty Policyholders Renewals, which show seasonality:

January February March April May June July August

$1,929 total

donations $2,308 $2,721 $3,444 $3,043 $3,555 $3,411 $3,202

284 policyholders

335 516 563 532 464 349 332

September October November December TOTALS

$2,913 $2,060 $2,391 $1,500 estimated $32,477

225 209 138 179 estimated 4,126

The Car Guys of Kansas City (CGKC), a club of 350 members, continue to donate cash contributions of between $55-$150 each month following a large donation of $3,100. To-date, the Car Guys of Kansas City have donated $5,100 to HEP. While these are small donations, clubs, and others like them, are repeatedly and regularly donating and I have identified potential major donors among the membership. I used the success with CGKC as an option for other car clubs as I reached out to them for support, like the Capital Region Jaguar Club of Albany, NY. One member attending their annual meeting in November, which HEP attended and presented at, donated $1,000 to HEP. Grant applications written by ACM and submitted to private foundations to benefit HEP were interrupted by a change in staffing mid-year. In Q4, this initiative gained momentum with a grant submitted to the Apex Foundation and work commencing on a workforce grant to be submitted to Bank of America. In 2015, revenues will be down as a direct result of limited time dedicated to fundraising throughout the year. A disciplined, systematic approach to cultivating major donors was started in early November and will continue throughout 2016. And while revenues will be reported as down, so has spending been down, very close proportionally. We expect revenues and expenses to be down for the year, at 23% and 19% respectively. GRANTS On average, HEP receives 2-3 times as many requests for funding from strong applicants than we have budgeted to award. In October, we received requests from 8 organizations or individuals requesting $147,000 and were budgeted to award $65,000. Actually, we awarded $53,000. A confidential summary of the year’s granting activities is an addendum to this report and follows. Relationships continue to deepen meaningfully with key schools offering automotive restoration & preservation programs and their students & graduates. Schools that are feeders into restoration shops, but whose curriculum lack restoration, have gotten our attention lately because of the critical technology they teach that is adaptive to restoration today and tomorrow.


In 2015, 52 organizations explored possible funding with HEP. About 22% were not “funding fits”. HEP received applications from 35 organizations/individuals, of which 55% were “recruited” by HEP, requesting almost $900,000 in funding. HEP’s Board of Directors approved 18 grants totaling $188,000 of the $200,000 budgeted. The shortfall is attributed to changes in circumstances for grant awardees, making their awards ineligible, or lack of funding fits in a grant cycle. Grant awards allocated to deliberations made during Q4 are usually less than earlier in the year and reflect a conservative approach to budget managing nearing year’s end, as expected. Grant support, sometimes extensive, was requested by and given to 22 of the 35 organizations/individuals submitting grant applications and 17 other organizations/individuals who did not submit grant applications. In total, HEP awarded 46 scholarships, 3 internships, 1 apprenticeship and 4 programs, impacting 300 students across the United States. As part of the HEP Annual Meeting in Hershey, PA, a site visit by HEP’s Board of Directors in October to Pennsylvania College of Technology in Williamsport, PA (an affiliate of Pennsylvania State University) was a highlight of the meeting, maybe the year, for all who were able to participate. Meeting the students, faculty, administration and touring the shop facilities proved the impact of HEP/CF funding of almost $100,000 since 2012 in support of the expansion of the automotive restoration program and funding scholarships and gap funding for internships. A story and photos about the visit is the cover story in Under The Hood – Road Trip edition, found at the end of this report. HEP got organized with grant fulfillments from grant awardees in Q3-Q4 – collecting progress reports and final evaluations, processing them and adding the best of the stories they told to the editorial plan for HEP’s newsletter. With greater funds raised, we can budget more than our typical $200,000/year. HEP’s targeted goal is $500,000 in grant awards by 2018. PERSONAL TOUCH Unexpectedly, each week we field many calls and inquiries from students, parents, instructors, shop owners, club presidents, car event organizers, museums and other institutions wanting to learn more about HEP and get access to our network and funding. We happily spend time exploring and explaining what and how we offer funds. These “consulting services” have included job postings, budget counseling, housing solutions for interns, restoration shop research to support internship and job searches, references for job searches, etc. In early December, one of HEP’s grant awardee auto tech instructors in Southern California, Tim Chambers, accepted the Shop Manager’s position at a well-known, private collection and motorsports engine-builder in Costa Mesa, CA. The collector, an industry influencer, was presented with a HEP ask on December 10th with an end-of-year gift, in the form of a pledge, requested. We are still awaiting word.


MARKETING & COMMUNICATIONS Making stories and telling stories have been the focus of HEP throughout the year, but especially since Car Guy Season in July-August-September. Abundant travel with site visits to targeted auto hot spots included meetings with grant awardees, museums, donors, shop owners, car clubs and attendance/participation at many car events. The stories were told through our various media outlets such as Under The Hood (HEP’s newsletter), OpenRoad, Hagerty Classic Car magazine, EnROUTE, Hagerty’s e-newsletter, car club magazines, and social media. Work began in cultivating two other major publishers for editorial coverage in their various industry publications in 2016. Other Marketing & Communications highlights of 2015 include:

1) MEDIA COVERAGE Almost monthly, press releases were sent to ACM’s media outlets announcing various HEP initiatives, including HEP’s broadcast of “Young People & Old Cars: The Future of Restoration” at Mazda Raceway Laguna Seca during Pebble Beach Car Week. Media coverage during the year was strong, with editorial coverage in 10 media articles: Fox News, Forbes, Associated Press, Showcase Magazine, Style magazine, SEMA News, South Sound Talk and Harnett Herald. Industry and club magazines/newsletters covered HEP as well, including K&N Filters Newsletter and Automotive Restoration Club of Sun City West. HEP wrote stories for 6 club magazines, providing editorial content as well as advertisements.

2) SOCIAL MEDIA HEP’s Facebook friends-base grew from 540 in 2014 to 683, as of November 30th, an increase of 26.4%. Similarly, Twitter followers grew 12%, from 182 followers in 2014 to 204, as of November 30, 2015.

3) MARKET RESEARCH As members of SEMA & ARMO, HEP has private, secured access to their market data, enabling us to keep up with the changes in the restoration marketplace. Also, search-and-compile research was conducted by our paid McPherson College summer intern, Savana Cross. Most of HEP’s research in 2015 was focused on schools and shops in auto hot spots around the United States.

4) ADVERTISEMENTS We enjoyed complimentary ad placements in Hemmings’ four

publications, Sports Car Market and Vintage Racing. Program Books for the Rolex Monterey Motorsports Reunion and SVRA race series extend HEP’s reach into the motorsports enthusiasts. Complimentary advertising in Concours Program Books and materials included in participant gift bags included The Arizona Concours, Amelia Island, St. John’s, Pebble Beach, Santa Fe and Pacific Northwest Concours.

5) COLLATERALS Branded story reprints continued to be an excellent way to tell the HEP

Story to a variety of audiences, including donor prospects. In 2015, we had 15 branded story reprints that reported on interns, apprentices and programs in 8 States. HEPpy Holidays cards and other HEPpy-themed stationery were created and used in HEP’s “pen pal” approach to cultivating and maintaining relationships.


6) NEWSLETTER With the accumulation of great HEP stories since January, content for the HEP Newsletter was plentiful. Three editions of Under The Hood were produced in 2015, all during Q4 and created as fundraising tools: Car Guy Season 2015 (12-pagers), Road Trip 2015 (4-pages) and Summer 2015 (8-pages). All were posted on HEP’s website. Two editions of Lyn St. James’ newsletter were also published and posted.

WEBSITE HEP’s website has been updated in these sections: Grant Awardees, Media & News, Apply For a Grant and Team. BRANDING In Q4, teams from ACM and Hagerty Insurance together discussed and studied the impact of HEP’s branding to market awareness, messaging and fundraising capabilities. As part of strategic planning for 2016, four branding scenarios were explored, with case studies, including: 1) slightly tweaking the current branding, 2) eliminating the association of either ACM or Hagerty and renaming/rebranding, 3) changing branding to be associated with ACM, or 4) changing branding to be associated with Hagerty. The discussion was tabled until late January 2016. EVENTS & MEETINGS Events and meetings took place every day and everywhere HEP went. Here are some statistics:

Site Visits/Home Visits – made 240 visits to schools, shops, museums, dealerships and clubs

Participated in or attending 40 car events and getting in front of influencers

Hosted 4 HEPpy Hours

Made 15 home visits to donors prospects

Spent time with 15 alumni. Some Events & Meetings highlights include: 1. HEP Board site visit to Pennsylvania College of Technology’s Automotive Restoration

Technology shops, meeting students, faculty and administration 2. Orientation to Penn College – Dial-in calls with high school auto tech instructors and the

Dean of Transportation and Restoration Faculty from Pennsylvania College of Technology 3. HEP’s broadcast of “Young People & Old Cars: The Future of Restoration” at Mazda

Raceway Laguna Seca during Pebble Beach Car Week. Organized by HEP, there was a good mix of expertise, age and gender among our 6 panelist, moderated by McKeel Hagerty. Panelists included HEP Ambassador Lyn St. James, ACM colleague Dominic Dobson, Collection Manager and master restorer Stephen Murphy, auto tech high school teacher and HEP grant awardee Tim Chambers (Laguna Hills High School), HEP intern and conservator for a California collection Josh Baum, and McPherson graduate-former ACM employee-former Paul Russell employee Stacy Puckett.

4. Award Presentation Ceremony with banner unfurling at Thornton Fractional Technical High School with students, faculty and administration

5. The Drive Home – targeted donors and event participants for stops along-the-way, especially Kansas City, St. Louis, Chicago

6. Exploring automotive restoration curriculum – carburetors at McPherson College, transferring credits from College of DuPage, IL to McPherson College

7. Association Meetings – SEMA, ARMO, AACA, CCCA 8. Club Meetings – Capital Region Jaguar Club, Adirondack Triumph Association 9. Education Programs – SEMA Education Series


10. Arizona Car Week 2016 – leveraging our early work last January, to provide or participate in 5 youth-oriented car events including HEP career seminars and HEP-staffed private tours at the Arizona Concours and offering micro-grants for an afternoon at Barrett-Jackson with auto tech students from four Phoenix-area high schools, including Dysart High School who is participating in the X-Cup of the 2016 Great Race.

Shop visits resulted in developing a short list of shops who could be good fits for mentoring HEP’s Apprenticeship Program, set to launch in Q1 2016: 1. Keith Flickinger/Precision Motor Cars (PA) 2. Brian Joseph/Classic & Exotic Service, Inc. (MI) 3. Cameron Ingrams/Road Scholars (NC) 4. Kent Bain/Automotive Restorations, Inc. (CT) 5. Steve Babinsky/Automotive Restoration, Inc. (NJ) 6. Rich Fass/Stone Barn Restoration (NJ) 7. Stephen Murphy/Chicago Vintage Motor Carriage (IL) 8. Brian Donovan/Donovan’s Restoration Services (MA) 9. Bob Ensign/Ensign’s Restoration (NY) 10. Steve Schmidt/Honest Engine, Ltd. (CA) 11. Tim Lingerfelt/Carolina Coach Crafters (NC) ADMINISTRATIVE As HEP was actively engaged in travel and events & meetings throughout the year, some administrative responsibilities were reprioritized as less important. That said, here are the workload highlights for the year:

1) STAFF This Team of Two consists of the National Director and the Administrative Coordinator. HEP had three Administrative Coordinators in 2015. Pam Dudley took the reins on August 12th and has made significant contributions to Grants Administration, which she has been training to manage in 2016.

2) AMBASSADORS Beginning in late Q3, HEP enjoyed the support of one paid and 10 volunteer ambassadors located in California, Michigan, Arizona, Indiana, Missouri, North Carolina, Oregon, Texas, Illinois and Germany. Regular dial-in meetings, orientation, goal setting and milestone reporting keep the team focused and coordinated. Having ambassadors in several states and one country allows greater reach in promoting and fundraising efforts, all focused on relationship cultivating.

3) INTERNSHIPS & APPRENTICESHIPS Morgan Lewis, Ltd. law firm has created a structure for HEP’s Apprenticeship Program. Their 4-page memo was approved at the June 26th Board Meeting. Next steps include creating the forms that relate to the processes for each of three application channels – schools, shops, graduates. Policies and procedures for the Apprenticeship Program are also under development. Distinguishing the details and differences in restoration and preservation have been documented in the materials presented to Morgan Lewis, the law firm supporting our program structure development. Contributions to that document were made by six industry experts.


STRATEGIC PLAN What follows here is exact language from the 2015 HEP Strategic Plan with check marks indicating work continued, in varying degrees, throughout the year. The more checks you see below, the more time spent on-task. Our Grant-Making Alignment We promote interest in collectible vehicles by developing the next generation of enthusiasts, restorers and preservationists in the following ways:

Support education and training of young people in the hands-on, career-based

education/manual arts between the ages of 18 and 25. Work to ensure no skill is lost, no master craftsman is without an apprentice and no

student is without an opportunity. Fund individual career-focused training in the skills and trades especially important to the

future of the collector vehicle community through educational scholarships, internships and apprenticeships.

Provide grants to educational institutions and organizations engaged in training and developing skills related to promoting, protecting and preserving collectible vehicles.

STRATEGIC PRIORITIES

1. HEP Grant Program Expansion: $200,000 Awarded in 2015 (ACTUAL = $188,000)

a. Grant Awards – actively promoting HEP as a grant-giving organization, not just relying on word-of-mouth, with Calls To Action, advertisements, social postings to support scouting/recruiting efforts

b. Scholarships – identifying schools and programs with established scholarship programs, with ample vetting processes that award young people of need, for automotive/boat restoration

c. Internships – identifying the schools with skilled and talented young people of merit and supporting them with “gap funding” during their paid internships (10 weeks or 400 hours)

d. Apprenticeships – identifying skilled and talented young people of merit and “recruiting” them to apply for a paid apprenticeship (6-12 months), with a consideration of the drafted Craftsmanship Guild, and matching them with master craftsmen with established restoration shops

e. The Apprenticeship Program structure and development (processes, procedures, forms) plus review by legal counsel (NOTE: Not included in 2015 Plan; this will be the first program created and managed by HEP)

f. Career Planning – providing services that inform young people & their families about the options and benefits of careers in automotive restoration & preservation with a consideration of the drafted Career Accelerator Program

2. Fundraising & Engagement Broadening the funding base, targeting major donors and alumni while extending the geographic reach, localizing in Arizona, Florida, Pennsylvania, Oregon, Michigan, California and Washington

a. Focus on renewing CF Founders and collecting pledge payments

b. Major Gifts through 3- and 5-Year Pledges (“new” Founders)


c. Concours Strategy – “localize” in 6 Concours “hot spot” geographies; add 4 more in 2016

d. Car Club Strategy – regional and national meets/rallies charity auctions beneficiary, annual “drives”/appeals

e. Alumni Strategy – locating, celebrating, engaging and soliciting

f. Appeals – 4 scheduled (January-March-May-October)

g. Consulting “services” supporting with ideas and strategies organizations, schools and institutions across the United States faced with diminishing auto shop programming (NOTE: Not in 2015 Plan)

3. Marketing & Communications Building awareness with simple, consistent, repeated messages

across all platforms and by all supporting constituencies conveying our clear pathway to careers as we fuel the future

a. Branding – finalizing logo, messaging and reflecting this in collaterals and materials

b. Grant Applicants Communications – announcing grant deadlines, application support

c. Newsletter Strategy – developing a rich editorial plan for HEP’s quarterly newsletter and building a content pipeline for Car Clubs newsletters

d. Social Media & Networking – Project posting and sharing, working closely with the experts at LivePulse and with inspiration from Hagerty

e. Outreach – organized personal interaction by Board, HEP Team, Hagerty supporters with targeted constituencies, including master craftsmen/restoration shops, targeted young people, schools/programs/teachers, ambassadors, advisory board, Founders, Hagerty policyholders, Hagerty field staff, ACM members, clubs, event organizers, thought leaders

f. Publications – editorial content and advertising in in-house and industry publications, including OpenRoad, Hagerty Classic Cars magazine, Sports Car Market, Hemmings, Gentlemen Drive, Concours program books, etc.

g. Website – recolor and actively manage content after complete website audit

4. Events & Meetings Building awareness by maximizing face-time meaningfully, using the Concours Strategy tactics and targeting major donors

a. Presence and Promotions Strategy – participating in and producing events with emphasis on “localizing” and personalizing

b. 3 ACM Signature Events – charitable beneficiary for the Annual Gala, the PNW Concours and The Meet Vintage Motorcycle Festival

c. Ticketed tours, events, programs/workshops for earned income in 2016 (member pricing, non-member pricing)

d. Panel Discussions with moderator, panelists tackling industry issues focused on the next generation, education and passing along the skills-artistry-crafts of restoration & preservation (NOTE: Not included in 2015 Plan)

5. Administrative Getting and staying organized, with an emphasis on grant administration, data management, research and developing volunteer resources

a. Resources & Relationships Strategy – Partnerships, Ambassadors, Volunteers, Field Staff


b. HEP 10-week Intern focusing on market searching, compiling and research (NOTE: Not included in 2015 Plan)

c. Infrastructure Elements Strategy

i. Partnership Relations – clarifying roles & responsibilities

ii. Volunteers – building a team of regularly supporting individuals, with tech skills

iii. Data, data management

iv. Grant Administration – procedures, processes and practices reviewed and revised, as needed

v. Research & Assessment – supporting “localizing” initiatives

2015 HEP BOARD of DIRECTORS

Dan Beutler, CFO, Hagerty (Traverse City, MI) Keith Flickinger, Master Craftsman, Precision Motor Cars (Allentown, PA) McKeel Hagerty, Chairman & CEO, Hagerty (Traverse City, MI) David Madeira, CEO, LeMay – America’s Car Museum (Tacoma, WA) Jim Menneto, Publisher, Hemmings Motor News (Bennington, VT) Paul Miller, President, LeMay – America’s Car Museum (Tacoma, WA) T.G. Mittler, Collector (Santa Fe, NM) Clint Sly, Managing Director, Hagerty Financial Services (Traverse City, MI) Mike Stowe, Master Craftsman, Great Lakes Motor Works (Boyne City, MI) 2015 HEP AMBASSADORS Patrick Barnes, Community College Instructor, retired; ACM Volunteer (Portland, OR and Indio, CA) Josh Baum, Conservator, Private Collection (Goleta, CA) Tim Chambers, former Auto Tech Instructor/grant awardee, Honest Engine Shop Manager (Santa Ana, CA) Herb Clark, Automotive Restoration Club of Sun City West, founder (Sun City West, AZ) Drew Feustel, NASA Astronaut (Houston, TX) Bud McIntire, Director of Student Services, Great Lakes Restoration Shop, retired (Winston Salem, NC) Stephen Murphy, Collection Manager, Private Collection (Chicago, IL) Stacy Puckett, Restoration Specialist, Classic & Exotic Services, Inc. (Detroit, MI) Burt Richmond, LeMay – America’s Car Museum Board of Director, retired (Chicago, IL) David Rising, Automotive Engineer, Stuttgart, Germany (former Tacoma, WA resident) Lyn St. James, Indy Racer (Phoenix, AZ and Indianapolis, IN)


HEP’s MISSION

The Hagerty Education Program’s Mission is to ensure that critical skills necessary to restore and preserve collector vehicles are not lost by providing scholarships, educational grants, internships and apprenticeships to students and organizations committed to hands-on training of the skills and trades.

HEP’s 2016 VISION

Our vision has three parts 1) YOUNG PEOPLE – that every passionate, young car enthusiast in the United States and Canada who loves everything about collector cars learns that there are viable, varied career opportunities in North America focused on the automotive collector car industry, including restoration, by way of exceptional post-secondary educational programs, and they are able to take advantage of them; 2) OLD CARS – that the skills, knowledge, tools, processes, techniques and craftsmanship survive and thrive for generations to come by filling the educational pipeline with the next generation of workers, the stewards protecting and enjoying our automotive heritage; and 3) IMPACT – that the automotive collector car industry, including schools, is organized and centralized through HEP, providing information, services and a strong network critical to industry development and growth.

January 2016 Strategic Report Page 33

STRATEGIC PLAN 2016 HAGERTY EDUCATION PROGRAM PRIORITIES & GOALS HEP On the Move OVERVIEW Our 2015 strategy of localizing in specific “auto hot spots” around the United States was very effective, enabling HEP to reach out beyond grant awardees alone, building deepening relationships with car and boat enthusiast communities, local schools/programs/teachers, restoration shops, car/boat event organizers, auction houses and industry associations with the simple goals of raising money to give it away. This approach fueled the momentum of the movement transitioning from hobby-to-heritage while engaging in the hobby locally, where people were more inclined to give – when donors see meaningful contributions in their own communities. By early September 2015, we were no longer calling collecting cars, and all things related to that, a “hobby”; we started calling it the “collector car industry”. “Raising money to give it away” was an excellent, easily understood phrase we used often in 2015, that summarized HEP’s two components: fundraising and program. Localizing is now habitual and systematic and no longer needs to be a strategic priority, as it relates to programs: schools, educational programs, collector car events and restoration shops. In 2016, we are shifting the focus to “mobilizing” with the idea that students/graduates benefitting from HEP’s funding move from their homes to attend school or programs and gain employment, often settling in different communities for work. While programs are local, people are not. HEP impacts communities across the US and Canada, sometimes indirectly. It was observed throughout 2015 that people are very inclined to give as minor donors when presented with information about the 2-year degree and short-term certificate programs HEP funds, appreciating the “fresh”, non-elite support of vocational and hands-on education and the workers coming out of those programs. Major donors gave to the bigger picture – the elegance of restoration and the education of craftsmen and artisans, keeping in mind future shop owners and Concours judges with an appreciation of the hands-on learning. In 2016, HEP’s fundraising focus will be on mobilizing donors towards the bigger picture. In 2015 and with the help of Board Members, staff, volunteers, donors and friends, HEP at ACM accomplished many things. Some milestones include:

Localizing in more than planned “auto hot spots” – increasing from 6 to 17, including Arizona, Florida, Washington State, Kansas, Missouri, Indiana, Michigan, California, Pennsylvania, Upstate New York, North Carolina, Nevada and more, even exceeding the expected 11 hot spots in 2016. With 20 trips travelling 45,000 air miles and 15,000 road miles in 11 States, 55 cities and 1 Province, HEP got around in 2015!

Attracting more newcomers to HEP/ACM – people who were not on any radar screens – than expected, diminishing the concern that HEP’s fundraising was in direct competition with ACM’s fundraising.

Engaging in a national dialogue, initiated by HEP and focused on “Young People & Old


Cars: The Future of Restoration”.

Engaging meaningfully with Car Clubs – receiving donations, placing ads, providing content with photos/captions, participating in events with 4 national car clubs: Chevrolet Nomad Association, Corvair Society of America, CCCA and AACA and 3 regional car clubs: Automotive Restoration Club of Sun City West, The Car Guys of Kansas City and Capital Region Jaguar Club of New York.

While focusing on post-secondary education, funding exceptional high school programs, where the “car guy” auto tech teachers use restoration in his/her curriculum to teach and engage the next generation of restoration craftspeople and artisans.

Funding restoration programs – in addition to scholarships, internships and apprenticeships – to extend the reach and impact of HEP funding, to benefit more students.

Focusing on technicians and the art of restoration, not engineers when identifying future grant awardees.

Providing gap funding for paid interns (proving need) working with collection teams and in restoration shops around the US, narrowing the gap between formal education and shop-readiness.

Funding scholarships at post-secondary schools that offer automotive restoration certificates and AAS/BS degrees.

Identifying and recruiting secondary and post-secondary automotive restoration schools to submit grant applications – which they can do three times a year.

Recruiting 11 HEP ambassadors from 8 States and 1 foreign country, helping us spread the word locally and nationally with an eye on fundraising, friend-raising and identifying potential grant awardees.

Employing an exceptional new member of the team, Pamela Dudley, as Administrative Coordinator, focusing on Grants Administration while supporting other HEP initiatives.

Areas for improvement in the coming year includes: 1) clearly communicate the differences and detailed processes related to internships, apprenticeships and funding them; 2) as much as we can with the schools, monitor work-based experiences (do-it-yourself internships) or voting to not provide gap funding for them; 3) do not delay major donor fundraising, which is all relationship-based and time intensive; and 4) leverage the turnkey aspects of processes and procedures implemented in 2015, enjoying the efficiencies that resulted. HEP’s MISSION


The Hagerty Education Program’s Mission is to ensure that critical skills necessary to restore and preserve collector vehicles are not lost by providing scholarships, educational grants, internships and apprenticeships to students and organizations committed to hands-on training of the skills and trades.

HEP’s VISION

Our vision has three parts 1) YOUNG PEOPLE – that every passionate, young car enthusiast in the United States and Canada who loves everything about collector cars learns that there are viable, varied career opportunities in North America focused on the automotive collector car industry, including restoration, by way of exceptional post-secondary educational programs, and they are able to take advantage of them; 2) OLD CARS – that the skills, knowledge, tools, processes, techniques and craftsmanship survive and thrive for generations to come by filling the educational pipeline with the next generation of workers, the stewards protecting and enjoying our automotive heritage; and 3) IMPACT – that the automotive collector car industry, including schools, is organized and centralized through HEP, providing information, services and a strong network critical to industry development and growth.

In the coming years, as HEP evolves, we are predicting that the mission will expand beyond automotive and marine restoration educational programming to include all elements of the industry – restoration, preservation, collecting, buying/selling, publishing – and service providers to the industry – event planning, marketing & communications, financial services, career planning services, staffing/job placement services. It can be imagined that, over the next 5 years and by 2021, HEP would be at the center of thinking about the entire industry, establishing itself as an economic engine with additional not-for-profit spin-offs, such as an industry association for restoration shops, as well as for-profit startups, such as staff recruiting firms with an expertise in headhunting for restoration shops. 2016 STRATEGIC PRIORITIES SUMMARY

1. Fundraising & Programs: Expand, leverage and shape; localize with Founders and donors

2. Grants: Increase funding, keep recruiting strong grant candidates and study how HEP funding impacts the industry

3. Marketing & Communications: Take lead as industry influencer and creator of market-relevant programs, continue with “pen pal” approach with constituent relationships

4. Events & Meetings: Get and keep the conversation going, collaborate 5. Administrative: Improve processes and extend reach 6. 2016 Industry Concentration: Hot Rods and Historic Racing

2016 STRATEGIC PRIORITIES & TACTICS 7. Fundraising & Programs: 2016 is HEP’s “thank you” year and the year that we’ll keep the

momentum going. a. Keep the Course Strategy – Leverage momentum and efficiencies of late

autumn’s fundraising efforts, continuing without interruption in 2016 and making fundraising a daily/weekly/monthly/year round initiative.

b. Donor Hot Spots – Localize and connect with current Founders at least quarterly – visiting them in their home cities, meeting at car events, inviting them


to HEP’s Automotive Restoration Industry Symposium/Summit Meeting and other high-level events/meetings.

c. Major Donors – More than double individual and organizational giving, from $220,000 in 2015 to $510,000 in 2016 by expanding the Board of Directors (3), major donor base (50) and corporate sponsorship (HEP’s Automotive Restoration Industry Symposium/Summit Meeting sponsors)(3).

i. Create Donor Recognition Wall in Tacoma, WA. d. Minor Donors – Leverage the strong and extensive outreach in 2015 to build a

larger minor donor base – composed of new donors (500-750), including HEP Alumni and their families, and overlooked targets (125-200).

e. Grant writing for unrestricted funding through corporate foundations, working with ACM’s grant writer.

f. Minimize in-kind contributions to ads in Hemmings, SVRA + Concours Program Books and resource support through The Fitzgerald Group.

g. Identify new sources of revenue – as one of several charities benefitting from car events, subscription renewals for Hemmings and Sports Car Market.

h. Launch The Apprenticeship Program – late January/early February 2016; 11 forms developed, processes established, marketing & communications push.

i. Develop “Restoration Boot Camp” Program – short-term, intensive, hands-on learning at late high school, post-secondary and continuing education for auto tech teachers.

j. Consulting Services – formalize HEP’s offerings (career planning, grant writing, recruiting & enrollment in auto tech programs, budget development, and event support).

k. Identify specialized educational programs that supplement formal training, offering short term continuing educational opportunities – such as Fay ________, CT and Arizona Paint School, Phoenix, AZ, and establish relationships with them.

l. Develop “Restoration Boot Camp” – short term, intense, hands-on educational programs at facilities in Arizona and Pennsylvania.

m. Shape post-secondary automotive restoration curriculum at public and private colleges, community colleges and selected high schools

n. Bring back Canada, California and Texas.

8. Grants: Utilizing HEP’s Funding Philosophy and “funding fit” guidelines for funding decisions while tracking and reporting on the impact of HEP’s grants.

a. Increase grant awards from $190,000 in 2015 to $225,000 in 2016 and recruit “funding fit 5s”, targeting 80% automotive and 20% marine restoration educational programs.

b. Mentor Strategy – Through HEP’s grant support services, spend extra time reviewing drafted applications of the instructors without grant-writers and the students with limited writing experience.

c. Application – Revamp application and materials requested, which are program-focused; develop application for individuals for internships and apprenticeships.

d. Understand impact of HEP grants through grant fulfillment tracking and documentation.

9. Marketing & Communications: Push, don’t just post!!!


a. Establish HEP as market & thought leader and influencer for this industry. i. Create and implement two collaborative initiatives – $1,000,000

Campaign 2016 and The Apprenticeship Program. ii. Explore funding research of restoration industry with job/earnings

potential and conceptualization of accreditation for restoration shops and related processes.

b. Messaging – Fundraising: The Thank You Year + “We’re raising $1,000,000 in 2016 to meet the needs of educating the next generation of restoration craftsmen and women, and we need your support”.

c. Branding – Revisit effectiveness of name/branding and consider the long horizon when looking at options.

i. All schools who are HEP grant awardees receive 4’ x 6’ or 4’ x 8’ banners to hang in the restoration shops.

ii. Individuals who receive scholarships or gap funding receive a branded cap, garment, lapel pin, magnet, and notepads.

iii. Wrap 2 trucks with HEP logo and message. d. HEP Newsletter UNDER THE HOOD – 3/year: May, September, December

(12-pages) + 4/year timing TBD (4-pages). e. Direct Mail Campaigns – Produce 4 Appeals with these separate targets and

coordinated with ACM: i. January: Thank You Campaign ii. May: Car Clubs iii. September: Grandparents iv. November: Restoration Shops + SEMA/ARMO members.

f. Car Club Membership-Newsletter-Ad Strategy – HEP joins a club, asks to contribute editorial content to the print/online newsletters/magazine and buys 76 ½-page or full-page ad for donation (more eyes, more money).

g. Awards of Excellence Strategy – 6 awards for teacher, student, shop, club, corporation presented at HEP’s Automotive Restoration Industry Symposium/Summit Meeting and other car events that offer HEP a stage.

h. HEP Website Initiative – NEWS revamped, content update, search capability developed

i. Update Board Resource Book. j. Support Launches – The Apprenticeship Program and Restoration Boot Camp

with integrated marketing & communications. k. Telling & Making Stories: Videography & Photography – professionals; HEP

events, events in which HEP participates, HEP schools, teachers, scholars, testimonials, automotive restoration programs’ shops, and student car club events. Video clips used for social media and fundraising events.

l. Social Media Strategy – photos/captions + video clips as frequently as possible. m. Giveaways – 2016 vinyl stickers, HEP lapel pins and business card-size magnets.

10. Events & Meetings: Maximizing facetime meaningfully and using this goal when prioritizing.


a. Get and stay close with HEP’s Constituents – all donors/targets, thought leaders, Hagerty field staff, Hagerty policyholders, guidance counselors, schools, teachers, students, graduates, parents, ambassadors, shops, clubs, collectors, racers, car/boat event organizers and corporations – through conversations and collaborations.

b. HEP-produced Events i. HEP’s Automotive Restoration Industry Symposium/Summit Meeting;

Audience – All Constituents invited (registration fee) ii. HEPpy Hours – 2-hour cocktail receptions co-hosted with a local HEP

supporter to inform and seek support; Audience – Mix of constituents (complimentary)

1. The Drive Home Chicago iii. Major Donors: Impact Dinners (complimentary) iv. Panel Discussions (“Young People & Old Cars: The Future of

Restoration”)(complimentary) c. Local Hire Strategy – hiring students/teachers from car event city to support

HEP’s participation in the local car event. d. 3 ACM Signature Events – Presence and Promotions: The Gala, The Meet,

Pacific Northwest Concours. e. Repeat 2015 – selectively participate in or attend Concours around the US

11. Administrative: Maintaining organization and cultivating resources, especially volunteer ambassadors

around the United States and internationally. a. Resources & Relationships Strategy – ambassadors, volunteers, Hagerty field

staff. b. Infrastructure Enhancement – Grants Administration, data and data

management, research and reporting. c. Localizing & Mobilizing Resources Strategy –expand human resources and

geographic reach by adding 6-10 volunteer ambassadors. d. Round out divisional capacity with research, improved data management and

monthly administrative reporting.

12. 2016 Industry Concentration: Hot Rods and Historic Racing, continuing with Collector Cars, Motorsports, Boats and Motorcycles.

January 2016 The Case For Giving Page 39

THE CASE FOR GIVING YOUR ENGAGEMENT MATTERS AMERICA’S CAR MUSEUM is committed to promoting America’s automotive heritage, preserving America’s automotive treasures, and serving the interests of the enthusiast community. The Hagerty Education Program (HEP) is at the center of realizing this goal. The conversation is getting serious among thought leaders that the pendulum is swinging towards a Renaissance of vocational-technical education in America’s educational system, after decades emphasizing college preparation, which ultimately saddled graduates with enormous debt and limited hope for experiencing and enjoying life in Middle Class America. A movement to return to career-based education is gaining momentum, and HEP’s mission is directly linked to this, through automotive restoration and preservation. OUR MISSION

The Hagerty Education Program’s Mission is to ensure that critical skills necessary to restore and preserve collector vehicles are not lost by providing scholarships, educational grants, internships and apprenticeships to students and organizations committed to hands-on training of the skills and trades. Critical to our mission is the preservation of America’s automotive treasures and training young people for careers. The skills of the craftsmen, artisans and trades are being rapidly lost due to an aging demographic. The collector car industry needs an entity committed to training young people in those trades before the remaining skilled professionals vanish. The Hagerty Education Program is that entity. We promote interest in collector vehicles by developing the next generation of enthusiasts, restorers and preservationists in the following ways:

Supporting education and training of young people in the hands-on, career-based education/manual arts between the ages of 18 and 25.

Working to ensure that no skill is lost, no master craftsman is without an apprentice and no student is without an opportunity.

Funding individual career-focused training through educational scholarships, internships and apprenticeships.

Providing grants to educational institutions and organizations who offer restoration as an important part of the curriculum.

OUR VISION

Our vision has three parts 1) YOUNG PEOPLE – that every passionate, young car enthusiast in the United States and Canada who loves everything about collector cars learns that there are viable, varied career opportunities in North America focused on the automotive collector car industry, including restoration, by way of exceptional post-secondary educational programs, and they are able to take advantage of those programs; 2) OLD CARS – that the skills, knowledge, tools, processes, techniques and craftsmanship survive and thrive for generations to come by filling the educational pipeline with the next generation of workers, the stewards protecting and enjoying our automotive heritage; and 3) IMPACT – that the automotive collector car industry, including schools, is organized and centralized through HEP, providing information, services and a strong network critical to industry development and growth. This is our vision. We cannot realize it without your support. WHAT WE DO & HOW WE DO IT

January 2016 The Case For Giving Page 40

HEP funds equipment, materials and parts for schools with restoration programs; scholarships for degree program students showing need, merit and talent; and gap funding for paid internships. We target students ages 18-25 and have supported programs and people in 28 States and 3 Provinces. We are looking for and finding the passionate next generation craftspeople and artisans…and their passionate, talented teachers! In 2016, HEP will launch its Apprenticeship Program designed to narrow the gap between the end of formal automotive technology education and restoration shop-readiness, through our paid apprenticeship program. With a goal of localizing in specific “auto hot spot” geographies around the United States and Canada, HEP is able to extend its impactful reach by cultivating and deepening relationships with car enthusiast communities including schools/programs/teachers, restoration shops & shop managers, master craftsmen, car clubs, car event organizers, auction houses and industry associations with the simple goal of raising money to give it away. Mobilizing students during their formal education through internships and graduates through apprenticeships and employment maximizes the possibilities for our future master craftsmen and women. The niche automotive restoration and preservation industry is growing, but it is outpacing hands-on educational programs that train the next generation of automotive restorers and preservationists. In the coming years, there will be more jobs to fill than the educational “pipeline” can produce. On top of that, because of the shift in educational priorities at the consumer level in the 1970s and 1980s, hands-on education all but disappeared. Now we are playing catch-up with “bring back shop class” to get educational programing back on track, enabling the next generation to work with their hands, fill open and new jobs with adequate skills and knowledge and be the exceptional stewards of our automotive heritage.

SUPPORTING HEP We are able to realize our vision through charitable contributions and sponsorships. We rely on the vision and generosity of like-minded people to fuel this movement. In 2015, we received requests for funding in excess of three times as much as we were able to give away. Requests came from very qualified applicants making a difference in the automotive collector car industry. The more we raise, the more we can give away, keeping pace with the momentum we’ve established in educating young people about old cars while impacting the industry. In 2016, our fundraising goal is to reach $1,000,000, doubled from 2015. Donations to the Hagerty Education Program go a long way towards supporting our mission and vision, and have impact in the following ways: $20,000 funds 2 paid 12-month apprenticeships gap funding OR 4 scholarships OR 8 internships gap funding OR restoration costs of a 1968 Chevy Camaro and a 1929 Ford Model A $50,000 funds a post-secondary auto tech program to expand its restoration electives into a degree program with shop equipment and tools, curriculum development and student recruitment OR scholarships-internships-apprenticeships-restoration projects $100,000 funds a first-time National Automotive Restoration Summit Meeting and 2 paid 12-month apprenticeships OR an impactful mix of scholarships-internships-apprenticeships-restoration projects An unrestricted donation enables us, with HEP Board oversight, to selectively and wisely invest in programs and people that will impact the future 20-30-40 years from now and beyond.

January 2016 Funding Philosophy & Process, Funding Fit Page 41

HEP’S FUNDING PHILOSOPHY & PROCESS Statements for HEP Board Policies & Procedures Resource Book (deliberated October 8, 2015) OVERVIEW The Hagerty Education Program at America’s Car Museum (HEP) supports individuals ages 18-25 +/- through their schools, educational programs or restoration shops, funding the pathway to careers in automotive or marine restoration and preservation. Except in extreme and unique circumstances, HEP does not fund students/graduates directly. Funding focus is on job-bound young adults. Recently, it was decided to end multi-year grants, due to the way they are accounted for in GAAP, requiring HEP to record a liability for all future payments on its balance sheet. On average, HEP has granted about $200,000/year+/- since 2005. HEP’s FUNDING PHILOSOPHY The Hagerty Education Program at America’s Car Museum (HEP) is a 501(c)3 that funds established, hands-on, career-based programs through scholarships, internships and funding programs (equipment/parts/materials), at schools offering Automotive/Marine Restoration Programs and educational programs that feed the historic vehicle restoration industry. Additionally, HEP provides gap funding (housing, transportation and other living expenses) and trainee funding to graduates of career-based programs who are part of HEP’s Apprenticeship Program, and working in the field in restoration shops through our program. The combination of funding scholarships/internships/apprenticeships for students/graduates + educational programs enables HEP to impact the greatest number of people. HEP must balance the number of people it directly serves annually through grants, with a target of at least 300 students/graduates/year. This funding philosophy should be reviewed by HEP’s Board of Directors annually. THE GRANTING PROCESS Through a relatively simple grant application process, schools, other educational programs, organizations, institutions and individuals complete and submit grants three times a year. Any one organization/individual can submit grants as many times as they’d like during a calendar year. The materials requested of organizations are different from materials required from individuals requesting funding. Application information and grant deadlines are available on HEP’s website. Grant support is offered to anyone requesting it.

All grant applications received by the deadline are thoroughly reviewed by the National Director and Administrative Coordinator. Only those applications that are meet HEP’s funding fit standards will be presented to HEP’s Board of Directors for consideration and deliberation. Grant applicants who receive funding are contacted immediately following Board deliberations, “announcing” the Board’s decisions. Grant awardees receive materials informing them about their


grant award, including a Grant Awards Term of Acceptance contract that is executed by the awardee or representative and HEP’s National Director. Grant applicants who do not receive funding are contacted immediately following Board deliberations, with the Board’s decisions. Where there is a “relationship fit”, HEP will continue to cultivate the affiliation. HEP’s Funding Fit Standards (5 = best fit) Program/ Activity

5 4 3 2 1

Student Base 18-25 year olds

Post-Secondary Education: Established Degree Program in Automotive/ Marine Restoration

Post-Secondary Education: Established Certificate Program in Automotive/ Marine Restoration. Secondary Education: Restoration-focused curriculum

Post-Secondary Education: Automotive/Marine Restoration elements in the tech-focused curriculum, taught by an exceptional teacher Secondary Education: Restoration-focused curriculum

Secondary Education: Automotive/ Marine Restoration elements in the tech-focused curriculum, taught by an exceptional teacher

Secondary Education & Other Organizations/ Institutions: Automotive/Marine restoration projects

Formal Education Program

Bachelor’s or Associate’s degree

Continuing education but not formal education

Continuing education but not formal education

Classes in restoration, with a focus on body, mechanical

Classes in restoration, with a focus on collision & repair

Industry Hands-On Training Programs

Organized, established internship program for students

Organized, established internship program for students

Considering starting an internship program

Goes above-and-beyond by opening doors for jobs

Goes above-and-beyond by opening doors for jobs

Alumni Program

Alumni Program and interested in additional work-ready programs

Alumni Program and interested in additional work-ready programs

Modest Alumni Program

Modest Alumni Program

No Alumni Program but willing to create one

Industry Involve-ment

Engaged in the industry/hobby

Engaged in the industry/hobby

Modestly engaged in the industry/hobby

Wants to be engaged in the industry/hobby

Not involved in the industry/hobby

Community Involve-ment

Engaged in the community




Very actively engaged in the community

Career Program

Organized Career Services Program

Organized Career Services Program

Very interested in job outcomes and has relationship with industry

Interested in job outcomes of students but no career program

Knowledgeable about jobs but no career program

Relationship to Shops

Reliable feeder to restoration shops

Occasional feeder to restoration shops

Not a feeder to restoration shops



Recruiting Women & Young People

Actively recruits women and young people, and can be seen in enrollment

Actively recruits women and young people, and can be seen in enrollment

Meaningfully interested in having woman and young people in the industry

Recruiting is not their job but they add to recruiting efforts by attending car events with restored cars

Wants to recruit women and young people and tries, with modest results


Awarded organizations are expected to promote HEP and the grant to local media and on the organization’s website, provide periodic progress reports with stories told through photos/captions and complete an evaluation at the end of the term. For organizations and individuals receiving more than one grant from HEP – some receive grants repeatedly – we ask for explanations of how the grants have impacted the programs or the individuals. HEP asks for direct contact with the students winning scholarships and the students benefitting from HEP’s support of programs, so HEP can cultivate those relationships for its evolving Alumni Program. Individuals who are part of HEP’s Apprenticeship Program and receiving funding become Ambassadors of HEP – posting about HEP and the opportunity on their social media outlets – but they also provide progress reports (stories through photos/captions), complete an evaluation at the end of the apprenticeship and become a “member” of HEP’s evolving Alumni Program. Very specific processes are in place, giving structure to the flow and timing of providing funds. Agreements with the schools/organizations are required as grant funds pass through those institutions. Both organizations and individuals are accountable to HEP for the proper and good use of the HEP-provided funds, including providing progress reports, final evaluations with photos/captions and video clips. FUNDING Q&A (questions we discussed and resolved on June 26, 2015)

1. How many times can an organization apply for funding in a calendar year? As many times as the organization or individual would like – for the same funding or different funding.

2. How many times a year can funds be granted out of the grant cycle? Zero. To maintain our credibility as a credible 501(c)3, we must stick by our processes, policies and procedures, otherwise we would compromise our role in this movement.

3. Is the educational program requesting funds impacting their community and engaging in the hobby? HEP is now referring to the “hobby” as the “industry”. What we do is serious business and impacts the industry meaningfully. Organizations – and individuals – engaged in their communities and this industry get HEP’s attention. HEP is actively involved in communities around the United States and we respect the involvement of organizations seeking HEP’s funding who are engaged in their communities, as well.

4. How do we divide the money we have for grant awards – between automotive and

marine restoration, on a percentage basis? What is the “funding split”? 80% Automotive + 20% Marine = HEP’s Annual Funding Split

5. Are motorcycles “funding fits” for HEP? So, automobiles + motorcycles + boats? Yes. As smaller collectible vehicles, they offer an opportunity for educational programs to complete a restoration project in a shorter amount of time, with many of the same hands-on lessons of larger projects. It is important that schools complete restoration projects and not use older vehicles for laboratory lessons alone.


6. In the field, HEP is learning that the extraordinary cost of tools is a barrier for entry into the field of restoration. Shops do not provide tools – the technician does. Some tool manufacturers offer student basic starter sets at discounted rates. Does HEP fund tools? HEP is expanding funding parameters to include the cost of tools for young people entering the industry, mainly through HEP’s Apprenticeship Program.

January 2016 Funding Philosophy & Process, Funding Fit Page 44-A

HEP’S FUNDING PHILOSOPHY & PROCESS ADDENDUM Statements for Policy – for Consideration OVERVIEW The Hagerty Education Program at America’s Car Museum (HEP) Board of Directors agreed at the October 8, 2015 meeting that HEP provides gap funding (housing, transportation and other living expenses) and trainee funding to graduates of career-based programs who are part of HEP’s Apprenticeship Program, and working in the field in restoration shops through our program, among other things stated in HEP’s Funding Philosophy (see below). Since the October meeting, it has come to light that interns (students) have also received gap funding and this class of awardee should be included in the funding philosophy statement. The absence of naming them in the philosophy was an oversight. HEP’s FUNDING PHILOSOPHY (Statement for Board Policies – for Consideration) The Hagerty Education Program at America’s Car Museum (HEP) is a 501(c)3 that funds established, hands-on, career-based programs through scholarships, internships and funding programs (equipment/ parts/materials), at schools offering Automotive/Marine Restoration Programs and educational programs that feed the historic vehicle restoration industry. Additionally, HEP provides gap funding (housing, transportation and other living expenses) and trainee funding to students who are part of a school’s automotive internship program and graduates of career-based programs who are part of HEP’s Apprenticeship Program, and working in the field in restoration shops through our program. The combination of funding scholarships/internships/apprenticeships for students/graduates + educational programs enable HEP to impact the greatest number of people. HEP must balance the number of people it directly serves annually through grants, with a target of at least 300 students/graduates/year. This funding philosophy should be reviewed by HEP’s Board of Directors annually. FOR DISCUSSION Increasingly, post-secondary schools use internships as a critical part of their curricular offerings, often using that program as a competitive differentiator to win students. Each institution that HEP works with has different approaches to their internship programs. Pennsylvania College of Technology has one “official” internship program and one “unofficial” internship program:

1. Official Program – Takes place in the summer between Years 1 & 2. Penn College works to engage automotive restoration businesses to accept interns. Students receive credit as well as pay for these internships.

2. Unofficial Program – Takes place every summer thereafter, as long as the student is enrolled. Many Penn College students extend their formal education at Penn College with their 2x2 Degree (2-years in Automotive Restoration Technology AAS Degree + 2-years Applied

January 2016 Funding Philosophy & Process, Funding Fit Page 44-B

3. Business Management resulting in a BS Degree). For these students, internships during the summers between Years 2 & 3 and 3 & 4 are not school sanctioned. Penn College hopes each students “gets” a summer job in the field but the school has no oversight of those jobs or that work. Penn College calls these internships “summer work-based internships”.

QUESTION: Does HEP fund those “summer work-based internships” with gap funding? Note: HEP inadvertently funded two such Penn College 10-week internships with gap funding in 2015 – Vanessa Mathurin and Brady Stevenson. We now understand that Brady Stevenson received $2,500 but worked only 5-weeks, not 10-weeks as expected.

January 2016 The Apprenticeship Program Page 45

THE APPRENTICESHIP PROGRAM PLAN – Automotive Restoration UPDATE Since HEP’s last Board Meeting on October 8th, we have been implementing aspects of the program, reviewed and approved at that meeting. What we have learned is that several of the processes – some which were “field tested” through internship funding at Pennsylvania College of Technology – and tools that were in development did not suit real-world use. The program planned and presented to you is being modified, with the help of our legal team at Morgan Lewis LLC, our advisors at McPherson College, Penn College and Central Carolina College and input from selected shops. We have a responsibility to the government allowing our 501(c)3 status and our supporters to make sure that this program works correctly and follows tax and employment laws properly. We are not ready to launch The Apprenticeship Program now, as projected. In reality, the graduating class of 2016 will be the first group of graduates who could benefit from The Apprenticeship Program, making it possible to utilize the coming weeks and months to modify the plan and rebuild the tools for implementation. Forming a Board Committee of Two or Three to help support HEP leadership with this effort – advising on the discussion questions that follow along with adding opinions about the plan details – is suggested. It is expected that 2-3 dial-in meetings of 1 hour duration each would be the time commitment needed to support this effort. For Discussion

1. As this program and our/my awareness have evolved since May, I am now recommending that HEP funds only Gap Funding requests from apprentices, and not Wage Funding, at least for the present. Earlier Apprenticeship Program documents note both gap and wage funding. In addition to HEP’s not having adequate funding to support wages, shops need to pay the apprentices as employees for the all-important workers compensation and liability insurance coverages, both coming from the shop. If the shops pay the apprentices slightly below market, which could be an incentive to the shops, HEP can “gap fund” and help support living costs, with proven need.

2. HEP never wants to be an employer of apprentices and will avoid it at all costs! But “graduates” who are not school-affiliated – and who are talented, passionate restorers – will reach out to us for the chance to narrow the gap between experience and shop-readiness and wanting to apply for an apprenticeship. How do we handle them?

3. HEP is providing significant services to graduates, schools and Host Shops but does not get compensated for those services because these are our charitable activities – career services, network connecting, “placement” services. Is this the direction of HEP? Charitable services?

4. What are the standards HEP uses to determine “need” for funding by graduates? Graduate’s personal budget and individual perception of need, including credit card debt? FAFSA guidelines? HEP-created standards?

5. What is HEP’s liability when “connecting the dots” with graduates and Host Shops?

January 2016 The Apprenticeship Program Page 45-A

6. How do we determine if the shops we’re targeting to become “Host Shops” share our core

values and add value to HEP’s educational mission? 7. Where does funding tools fit into HEP’s support of graduates on their pathways to careers

in automotive restoration? 8. What is HEP’s role in accrediting – or leading an accreditation process of – restoration

shops in the United States and Canada? 9. How do we determine the impact of our grants and services to HEP’s Apprenticeship

Program? How do we determine impact of any of our grants? 10. With the recent narrowing of the funding focus to scholarships, paid internships and paid

apprenticeships, HEP’s reach is small, with fewer students and graduates benefiting from funding each year, estimated to be about 30 students/graduates in 2015. Funding programs – equipment/parts/materials – give HEP greater reach to many more future car enthusiasts and the next generation of trained craftsmen.

FYI - TOOLS: PORTFOLIO OF FORMS 1. Apprenticeship Program Application with education history, affiliated school, desired job

description-location-workplace experience, previous industry experience (internships), industry engagement (classic car clubs, car events, etc.)(apprentice, co-signed by the school-shop-HEP)

2. Apprenticeship Program Terms of Acceptance agreement (3-way agreement executed with shop-apprentice-HEP, copy to the school)

3. Graduate’s Funding Request & Personal Budget to request funding and confirm need & funding structure, income/revenue and expenses, including debt, payment type (lump sum/portion payments) (apprentice, co-signed by the school-HEP, copy to the shop)(form must note income and tax form for tax filing)

4. Grant Award Terms of Acceptance agreement (per Morgan Lewis Memo). Versions include: 1) School-Apprentice-HEP, 2) Shop-Apprentice-HEP, 3) Apprentice-HEP

5. Chart of Automotive Restoration Checklist 6. Interview Questionnaires (shops) 7. Performance Progress Reports (shop-apprentice) 8. Performance & Program Evaluation Forms (school-shop-apprentice) 9. Photo Use, Media, Social Media Postings Waiver (school-shop-apprentice) 10. Branding Guidelines (school-apprentice) 11. Check requested from ACM Accounting (HEP internal)

January 2016 2016 Grant Application Deadlines & Announcement Dates Page 46

2016 GRANT APPLICATION DEADLINES & ANNOUNCEMENT DATES*

2016 Digital Deadline** Announcement Date

Friday, December 11, 2015 Thursday, January 28, 2016

Tuesday, March 1, 2016 Tuesday, April 26, 2016

Friday, July 15, 2016 Tuesday, September 6, 2016

Tuesday, November 1, 2016 Tuesday, December 20, 2016

*2016 will have 4 grant deadlines, instead of the usual 3 annually, to accommodate those institutions and individuals who have budgeted the December 11, 2015 deadline into their Q4 plans. In 2017, we will return to 3 grant deadlines

which are probably: March 1st, July 15th and November 1st (dates will be adjusted to fall on a weekday).

**In addition to a digital copy, applicants are asked to submit a hardcopy application, for document-quality purpose

January 2016 Grants At-A-Glance Page 47

AT-A-GLANCE JANUARY GRANT APPLICATIONS Grant Statistics

Restricted Funds Available

● 24 Institutions sought grant assistance ● 18 grants were submitted ● 7 Past Applicants, 11 New Applicants ● 8 Rejected Applicants ● 1 Postponed Applicant

● Butler: Ages 14-25 for car shop classes; $2,188 available ● Groendyke: 50% or $50K for McPherson College; $9,371 available ● Mittler: Young people car/classic boat restoration; $0.00 available ● Weinberger: Programs in Chicagoland; $12,000 available

Institution Name Marine/

Auto Past Status

Sta

te State

Statistics 2005-

Present Am

ou

nt

Req

uest

ed

Fu

nd

ing

Fit

Purpose of Grant

1. Clover Park Technical College Foundation*

Auto

Returning from 2011/

Grant Awardee 2011

WA 27 awarded/ 33 applied

$25,000 3

Equipment Funding: To purchase a Resistance Spot Welder for the

Automotive Collision Technician Program (Pgs 48, 59-74)

2. De Anza College Auto

Tech* Auto New CA

21 awarded/ 46 applied

$10,000 5 Scholarship Funding: Five $2,000

scholarships for automotive restoration students (Pgs 53, 144-157)

3. Freedom High School

Automotive Auto New WI


$30,000 3 Equipment Funding: A new cross draft paint booth (Pgs 54, 158-170)

4. International Yacht

Restoration School, School of Technology and Trade

Marine


Grant Awardee 2015

RI 7 awarded/ 10 applied

$20,000 3 Program Funding: A new student

experience and addition to the school’s curriculum (Pgs 52, 124-143)

5. LeMay – America’s Car Museum / McPherson

College Auto


Grant Awardee 2014

WA 27 awarded/ 33 applied

$5,500 4

Gap Funding: One paid intern to work at ACM for 10 weeks during the summer of 2016 as a Collections

Assistant (Pgs 51, 110-123)

6. Lyons Township High

School* Auto New IL


$7,500 5 Program Funding: Restoration of a

1929 Ford Model A (Pgs 55, 171-180)

7. McPherson College Auto


Grant Awardee 2015

KS 19 awarded/ 22 applied

$20,000 5

Scholarship Funding: To provide scholarships to help with gap-funding

during summer internships (Pgs 49, 75-95)

8. The Apprenticeshop Marine New ME 11 awarded/ 12 applied

$34,000 3

Equipment, Scholarship and Program Funding: To build a Mackinaw 28’ expedition boat ($9,000), provide

scholarships to the apprentices working on the project ($22,000), and the development

of a seamanship program ($3,000) (Pgs 56, 181-192)

9. Washtenaw Community

College Foundation* Auto


Grant Awardee 2010

MI 55 awarded/ 80 applied

$50,000/5 Year Grant

4 Scholarship Funding: Scholarships for

about ten students each year (Pgs 50, 96-109)

TOTAL AMOUNT REQUESTED $202,000

FUNDS AVAILABLE THIS GRANT CYCLE** $75,000

* Sought grant assistance from HEP Staff


Individual /

Institution Name Marine/

Auto Past Status

Sta

te State

Statistics 2005-

Present Am

ou

nt

Req

uest

ed

Po

stp

on

ed

/

Reje

cte

d

Reason for Postponing or Rejecting Grant

Postponed Applicant

10. Sean Hunter* Auto New PA N/A $2,500 P Should be for March 1st grant cycle

Rejected Applicants

11. East Valley Institute of

Technology Auto New AZ


$90,000 R Great potential fit; HEP staff will work with EVIT to put together a stronger grant application for the next cycle

12. Fathers and Mothers Who

Care Inc. Auto New CA


$20,000 R Focused on underserved population in South Los Angeles

13. Finger Lakes Boating

Museum Marine

Returning from 2014

NY 10 awarded/ 25 applied

$1,800 R Incomplete application; no age listed of camp participants

14. Generation Infocus

Foundation Auto New GA


$30,000 R Focused on underserved population in the Metro Atlanta area

15. Not Orange Inc. Auto New NJ 0 awarded/ 1 applied

$15,000 R Anti-violence group focused on ending gun violence in youth and young adults

16. Palisades Charter High

School Auto

Returning from 2015

CA 21 awarded/ 46 applied

$25,000 R Incomplete application; focused on

underserved population

17. Sound Experience Marine New WA 27 awarded/ 33 applied

$2,500 R Not a grant for a restoration program

18. The Bridge Teen Center Auto New IL 1 awarded/ 7 applied

$7,640 R

Focused on 7th-12th grade students during afterschool and unsupervised

hours – not a Pathway to Careers program

TOTAL AMOUNT POSTPONED OR REJECTED $244,440

Total Grants Awarded (YTD) $0.00 %

Total Grants Awarded (YTD) – Auto $0.00 %

Total Grants Awarded (YTD – Boat $0.00 %

* Sought grant assistance from HEP Staff


2016 JANUARY GRANT APPLICATION SUMMARIES

I. AUTOMOTIVE RESTORATION APPLICANTS – PREVIOUS

A. Post-Secondary

1) CLOVER PARK TECHNICAL COLLEGE FOUNDATION (CPTC), Lakewood,

WA (pgs 59-74)

About Them: Clover Park Technical College has a diverse student population. Their

average student is 31 years old. Of their students, 47% are parents with children still living

in the home, 34% are minorities, and 63% are females. CPTC offers over 40 degrees and 50

certificates in a variety of fields. One of these fields is Automotive Repair and Restoration.

The Automotive Collision Technician Program retains 70% of their students from start to

finish of the program.

Amount Requesting: $25,000

Requested Grant Money Used For: To purchase a Resistance Spot Welder for the

Automotive Collision Technician Program.

Request Summary: The purchase of the Resistance Spot Welder will enable the program to

teach the latest trend in vehicle construction and repair. This will enable CPTC to teach the

students the industry standard method of repair.

Goals: CPTC strives to provide an industry-ready workforce for their community. These

students will leave CPTC with the knowledge, training, and degrees/certificates required to

earn a living wage and better Pierce County.

Special Notes: CPTC is an “Achieving the Dream” institution and is the recipient of the

“MetLife Community College Excellence Award”.

Previous Grants Received:

i. Years: 2005-2007, 2011

ii. Total Grants Awarded: $56,000.00

iii. Purpose: Endowment Fund, Equipment, and Scholarships

i. An early HEP award created an endowment scholarship fund. HEP has been giving

“perpetually” since 2006 because of the creation of this fund.

Funding Fit: 3


2) McPHERSON COLLEGE, McPherson, KS (pgs 75-94)

About Them: McPherson College is the only college where you can earn a Bachelor’s

Degree in Automotive Restoration Technology. The mission of their program is to be the

center of excellence for students serious about careers in automotive restoration.


Requested Grant Money Used For: To provide scholarships to help with gap-funding

during summer internships.

Request Summary: These scholarships would be for $2,500 per student. Students would

use this money to help relieve the extensive cost of being an intern over the summer. To be

eligible for this grant the student must participate in an approved internship, be able to show

the financial need for this grant, and have acceptable performance in all of their classes.

Goals: To ease the financial burden on the student while they spend 10-weeks during the

summer of 2016, working alongside industry professionals fine tuning their experiences.

The expenses of such learning opportunities can often be a challenge for students to cover

when they are already paying for college at the same time.

Special Notes: McPherson College is also assisting with the funding and placement of

LeMay – America’s Car Museum summer intern for 2016 at the Museum.


i. Years: 2005-2006, 2008-2015

ii. Total Grants Awarded: $565,083.80

iii. Purpose: Scholarships, Equipment, Motorcycle Restoration Program, Lecture series,

and Internships

Funding Fit: 5


3) WASHTENAW COMMUNITY COLLEGE FOUNDATION (WCC), Ann Arbor,

MI (pgs 96-109)

About Them: Since 1985, the Washtenaw Community College Foundation has been giving

hope and support to the students of the college. They have done this through scholarships

to help create a better educated workforce and an overall stronger community. Their

automotive programs offer classes in auto restoration and fabrication. WCC has a rich

tradition of teaching and engaging students in customizing, restoring and fabricating cars.

Many of the Collectors Foundation scholarship recipients have trained in WCC’s Custom

Auto Body Fabrication and Chassis Design Advanced Certificate Programs. Each year

students from the Auto Body Repair, Auto Service and Motorcycle Technology Programs

showcase vehicles they have built and customized at Detroit Autorama.

Amount Requesting: $50,000/5 Years

Requested Grant Money Used For: Scholarships for about ten students each year.

Request Summary: The need-based scholarships will be awarded to students who

demonstrate talent and an eagerness for a career in the automotive restoration industry.

These students will be enrolled in the automotive restoration program at Washtenaw

Community College.

Goals: The Foundation’s goal is to make sure that every student who wants to pursue a

career in automotive restoration gets the education and hands-on training they need to have

excellent job opportunities, while not having to worry about the financial cost to accomplish

their goal.

Special Notes:

i. The Collectors Foundation has awarded them multi-year grants in the past. HEP

voted to end multi-year grants in 2014.

ii. At the 2015 Detroit Autorama show, WCC students brought home the first place

award for Contemporary Pick-up.

iii. Don’t miss the story about one WCC restoration student in the full application (Pg

TBD)


i. Years: 2005-2010 (The grant in 2010 was for $50,000/5 Years and ended in 2014)

ii. Total Grants Awarded: $100,000

iii. Purpose: Scholarships

Funding Fit: 4


B. Secondary

1) No applicants at this time

C. Other Institutions

1) LeMAY – AMERICA’S CAR MUSEUM (ACM), Tacoma, WA through

McPHERSON COLLEGE, McPherson, KS (pgs 110-123)

About Them: LeMay – America’s Car Museum is the largest automotive museum in North

America with a strong educational mission and a history of offering paid internships to

automotive restoration students. The Museum is 165,000 sq. ft. and has 300 cars, trucks,

and motorcycles on display. McPherson College is the first and only liberal arts college

offering a 4-year Bachelor’s degree program in Automotive Restoration Technology. ACM

and McPherson College have a long-standing relationship of finding the perfect McPherson

College candidate to fill a paid internship position at ACM every summer. Five of the last

six interns at ACM have been McPherson College students.


Requested Grant Money Used For: One paid intern to work at ACM for 10 weeks during

the summer of 2016 as a Collections Assistant.

Request Summary: This joint grant will provide a student enrolled at McPherson College

the opportunity to enhance their classroom training with valuable, hands-on training and

shop experience. The student will have the chance to work on a wide variety of vintage

vehicles in the ACM collection.

Goals: To provide one student with the ability to gain practical experience and knowledge in

areas of vehicle research, assessment, detailing, maintenance, conservation and preservation.

Also this student will gain under the hood know-how on a vast variety of vehicles that most

students will never get a chance to learn.

Special Notes: The intern will be a student from McPherson College. The grant will be

paid directly to McPherson College and they will award the student directly.


i. Years: 2004, 2006, 2008, 2010-2014


iii. Purpose: Internships, Symposiums and Education Serminars

Funding Fit: 4


II. BOAT RESTORATION APPLICANTS – PREVIOUS

A. Post-Secondary

1) INTERNATIONAL YACHT RESTORATION SCHOOL, SCHOOL OF

TECHNOLOGY AND TRADE (IYRS), Newport, RI (pgs 124-143)

About Them: Since 1993, IYRS has been providing accredited experiential education

programs to prepare students to excel in trades and technology industries that support the

preservation and restoration of historic vessels, vehicles, and three dimensional objects.

IYRS students, including women and veterans, develop craft-focused technical and industrial

skills which translate to a 90% job placement rate as skilled craftspeople.


Requested Grant Money Used For: A new student experience and addition to the

school’s curriculum, inspired by marine industry partners to research, design, build, and test

a prototype project boat.

Request Summary: During their first year of the IYRS Boatbuilding & Restoration

Program, this critical program is an essential part of developing basic skills that prepares

students for working in the marine industry. A HEP grant will help fund this project. The

prototype boat is a 13’ plank frame harbor launch, designed by Nat Herreshoff and built by

his company in the early 1900s. The vessel consists of both challenging hull construction

and the inclusion of an electric motor and the associated mechanicals.

Goals: To ensure that their students have the skills and knowledge to build their career with

excellent job opportunities. IYRS wants to show their students that honest work, integrity

and mastery of a craft, whether hands-on or through technology, are among life’s greatest

achievements.

Special Notes: IYRS has a 90+% job placement rating.


i. Years: 2007-2009, 2014-2015


iii. Purpose: Scholarships

Funding Fit: 1

B. Secondary





III. INDIVIDUAL APPLICANTS – PREVIOUS

A. Apprenticeships


IV. AUTOMOTIVE RESTORATION APPLICANTS – NEW

A. Post-Secondary

1) DE ANZA COLLEGE AUTO TECH, Cupertino, CA (pgs 144-157)

About Them: De Anza College is known throughout the San Francisco Bay Area as a

leader in educating and training men and women for careers in the automotive industry. The

auto tech department was started in 1967 in an area that is surrounded by dealerships, repair

shops, with many motorsports events and activities. With the Monterey Peninsula, Good

Guys Rod and Custom events, and several racetracks being in the area, they attract

enthusiastic students with a passion for cars. They offer programs and classes that help

students prepare for careers in different areas of the automotive industry.


Requested Grant Money Used For: Five $2,000 scholarships for automotive restoration

students.

Request Summary: The grant money would be used to provide five students with a

combination of need-based and merit-based scholarships. These winning students are

engaged in collector car activities and demonstrate an eagerness to learn about the

automotive restoration industry.

Goals: To assist students financially and help with the challenges of paying for a college

education, which would allow them to learn the techniques and craftsmanship needed for a

career in the automotive restoration industry.

Special Notes: De Anza College offers both daytime and nighttime classes. The daytime

students operate an Auto Tech Club, which is a student-run club that meets weekly to

discuss fundraising events for the Club, club projects, community service projects, and club

activities.

Funding Fit: 5


B. Secondary

1) FREEDOM HIGH SCHOOL AUTOMOTIVE (FHS), Freedom, WI (pgs 158-170)

About Them: Freedom High School started their automotive program in 1972. Bob Abitz

began teaching collision repair at this time. He had a strong automotive and collision repair

background and instantly drew students into his program. In 1978 the program started

competing in several contests and competitions in both automotive and collision repair

categories. Since then they have won several awards. His son, Jay, took over the program in

2007. Jay is a graduate of Freedom High School and a two-time SkillsUSA collision repair

state champion. Jay has blended the old with the new by doing many of the same things his

father did as well as adding his own knowledge and skills to the program. Jay has made it his

goal to raise money for the automotive program.


Requested Grant Money Used For: Equipment – A new cross draft paint booth.

Request Summary: FHS would like to install a new cross draft paint booth to replace the

used-booth that they started the automotive and collision repair program with in 1972.

Since then there have been many advances and improvements in the auto paint industry and

the collision repair program is trying to keep their equipment up to date.

Goals: A new cross draft paint booth will allow FHS to transition from oil-based to water-

based paints. This would allow them to stay on the cutting edge of the paint industry.

Special Notes: FHS has won a record 18 SkillsUSA championships.

Funding Fit: 3


2) LYONS TOWNSHIP HIGH SCHOOL (LTHS), LaGrange, IL (pgs 171-180)

About Them: Lyons Township High School opened its doors on September 3rd, 1888.

Since then, LTHS has grown in size to accommodate the ever expanding population of the

area. LTHS has two campuses. The North Campus, which serves all the juniors and

seniors, is in LaGrange, IL and the South Campus, which serves all the freshmen and

sophomores, is in Western Springs, IL. Over the years, several training classes were added

to the curriculum, one of which was the automotive program. Jordan Engelhardt took over

the automotive program in 2009. When he started, a lot of the tools and equipment were

outdated and enrollment was minimal. He put together a three-year plan that included a

budget and an overall strategy to turn their Automotive Technology Program into something

that the students, parents, and staff respected and supported. The administration agreed

with his three-year plan, financially supported his vision and curriculum, and today it is a

thriving automotive program. LTHS now offers 11 auto-tech classes, up from 8, with 22-24

students enrolled in each course. The program was renamed Lyons Township Car Care.

Not only has the overall enrollment gone up, but it shows no signs of slowing down with the

addition of two new courses offered next year.


Requested Grant Money Used For: Restoration of a 1929 Ford Model A.

Request Summary: Jordan Engelhardt purchased a 1929 Ford Model A and donated it to

LTHS for this two-year project. The grant will be used to purchase parts and materials for

body panels, suspension components, interior pieces, engine parts, and paint.

Goals: LTHS has recently teamed with Hot Rod Chassis & Cycle, a local restoration shop in

Addison, IL, to help support the project. Together with their help and Jordan’s funding, 220

students are working on building the engine, restoring the body, installing the electrical

components and redoing the interior. They plan to debut the fully restored 1929 Ford

Model A at The SEMA Show 2017. LTHS promotes various post-secondary schools within

their program and hope to one day have enough connections with schools and shops around

the US so that students can graduate high school on a career path to good-paying jobs with

benefits in the automotive industry.

Special Notes: LTHS has a history of graduating Automotive Technology students who

have gone on to McPherson College and College of DuPage for continued education in

automotive restoration.

Funding Fit: 5




V. BOAT RESTORATION APPLICANTS – NEW

A. Post-Secondary

1) THE APPRENTICESHOP, Rockland, ME (pgs 181-191)

About Them: The Apprenticeshop is dedicated to inspiring personal growth though

craftsmanship, community, and traditions of the sea. They offer two-year apprenticeships

and twelve-week courses in traditional wooden boatbuilding and seamanship. The

Apprenticeshop was started in 1972 in the same complex that the Maine Maritime Museum

in Bathe, Maine is housed.


Requested Grant Money Used For: To build a Mackinaw 28’ expedition boat ($9,000),

provide scholarships to the apprentices working on the project ($22,000), and the

development of a seamanship program ($3,000).

Request Summary: The grant money would be used to fund materials and parts for the

build of a Mackinaw 28’ expedition boat. The project will take 10-12 months for four full-

time apprentices to complete, giving them a unique chance for real hands-on training of

traditional wooden boatbuilding.

Goals: They strive to promote personal growth through traditional wooden boatbuilding.

This project will not only impact the four apprentices directly involved, but it will also have

an impact on the local community. This boat will be used in their community sailing

program which serves upwards of 300 participants each summer.

Special Notes: This project is a new build of an old historic boat.

Funding Fit: 3

January 2016 2016 January Grant Application Summaries Page 58

B. Secondary




VI. INDIVIDUAL APPLICANTS – NEW

A. Internships


B. Apprenticeships


January 2016 Website Grant Application Process Page 59

WEBSITE GRANT APPLICATION PROCESS

January 2016 Clover Park Technical College Foundation Page 60

FULL GRANT APPLICATION MATERIALS CLOVER PARK TECHNICAL COLLEGE FOUNATION (CPTC)

January 2016 McPherson College Page 76

McPHERSON COLLEGE

January 2016 Washtenaw Community College Foundation Page 97

WASHTENAW COMMUNITY COLLEGE FOUNDATION (WCC)

January 2016 LeMay – America’s Car Museum through McPherson College Page 111

Le-MAY – AMERICA’S CAR MUSEUM (ACM) through McPHERSON COLLEGE

January 2016 International Yacht Restoration School, School of Technology and Trade Page 125

INTERNATIONAL YACHT RESTORATION SCHOOL, SCHOOL OF TECHNOLOGY AND TRADE (IYRS)

January 2016 De Anza College Auto Tech Page 145

DE ANZA COLLEGE AUTO TECH

January 2016 Freedom High School Automotive Page 159

FREEDOM HIGH SCHOOL AUTOMOTIVE (FHS)

January 2016 Lyons Township High School Page 172

LYONS TOWNSHIP HIGH SCHOOL (LTHS)

January 2016 The Apprenticeshop Page 182

THE APPRENTICESHOP

January 2016 2015 Reports Page 193

2015 REPORTS

HEP SOCIAL MEDIA REPORT Below is a brief recap of HEP’s social growth and website analytics. HEP Social: Total Facebook Fans November 30th, 2015 = 683; YTD growth = 26.48% (540 fans 11/30/14) Total Twitter followers November 30th, 2015: 204; YTD growth = 12.09% (182 fans 11/30/14)

2015 Jan Feb March April May June

Sessions (previously Total Visits) 813 637 923 939 1,375 2,023

Users (previously Unique Visits) 641 509 770 797 1,239 1,838

Total Page Views 2,403 1,791 2,242 2,237 2,403 3,273

Unique Page Views 1,747 1,396 1,783 1,854 2,050 2,493

Mobile Visitors 103 77 179 175 171 122

Average Pages Per Visit 2.96 2.81 2.43 2.38 1.75 1.62

Average Visit Duration 2:51 2:06 1:43 1:29 0:53 0:31

Bounce Rate 61% 57% 64% 68% 79% 88%

2015 July Aug Sept Oct Nov Dec

Sessions (previously Total Visits) 1,982 1,643 1,390 1,195 1,375 TBD

Users (previously Unique Visits) 1,723 1,387 1,226 1,069 1,163 TBD

Total Page Views 3,258 3,058 2,347 2,476 2,918 TBD

Unique Page Views 2,819 2,519 1,956 1,884 2,374 TBD

Mobile Visitors 165 174 150 141 174 TBD

Average Pages Per Visit 1.64 1.86 1.69 2.07 2.12 TBD

Average Visit Duration 0:57 1:11 0:46 1:04 1:24 TBD

Bounce Rate 82% 78% 85% 78% 74% TBD


2015 AT-A-GLANCE INTERNAL & CONFIDENTIAL Funding Cycles/Deliberations = 1) January 15th; 1.5) May 15th; 2) June 26th; 3) October 8th

Name of Institution State

Amount Requested

Amount Granted

Purpose of Grant Funding

Fit Cycle

1 4-H Robotics & Technology

Club MI $19,985 $0.00

Parts & supplies to restore a 1971 Super Beetle & convert it to

Electric Drive

N/A auto

1

2 Alexander Chapter of the

National Railway Society, Inc.*+ NC $9,000 $0.00

Restore a 1937 Dodge Railway Express Agency truck

N/A auto

1

3 Drive One MI $100,000 $0.00 Fund work on a 1981 Firebird

Shelby Daytona Factory 5 kit car & a 1937 International Pickup

N/A auto

1

4 Gig Harbor BoatShop* WA $35,140 $12,000 Five Paid internships N/A

marine 1

5 McPherson College*+ KS $150,000 $40,000 Eight $5,000 Scholarships N/A auto

1

6 Studebaker National Museum IN $5,700 $0.00 10-Week Internship at the Museum for a McPherson

College Student

N/A auto

1

7 Suffolk Community College

Foundation* NY $30,000 $0.00

A scholarship called The Hagerty Education Program Scholarship

N/A auto

1

8 The Learning Centers at Fairplex CA $18,000 $0.00

Alex Xydias Center for Automotive Arts (AXC), & for four car lifts to be used in their

new state-of-the-art facility

N/A auto

1

9 Warren Consolidated Schools MI $4,000 $0.00 3D rapid prototyping plastics

printer N/A auto

1

10 McPherson College*+ KS $1,000 $1,000 10 week summer internship at

HEP – Savana Cross N/A auto

1.5

11 Pennsylvania College of

Technology*+ PA $2,500 $2,500

10 week summer internship at Precision Motor Cars – Brady

Stevenson

N/A auto

1.5



Apprenticeship at Precision Motor Cars – Joe Kretz

N/A auto

1.5



10 week summer internship – Vanessa Mathurin

N/A auto

1.5

14 Alexander Chapter of the

National Railway Society, Inc. *+ NC $9,000 $0.00

Restoring a 1937 Dodge Railway Express Agency truck

N/A auto

2

15 Automotive Mentoring Group IL $75,000 $0.00 Purchase updated equipment &

fund additional instructor N/A auto

2

16 Central Carolina Community

College Foundation* NC $12,000 $12,000

Three $3,000 Scholarships to students pursuing diplomas & 3 $1,000 Scholarships to students

pursuing certificates in the Automotive Restoration Program

N/A auto

2

17 Edsel & Eleanor Ford House* MI $7,500 $0.00

Hire a summer intern to research the automotive heritage of Edsel Ford through the Ford House

Collection

N/A auto

2



Amount Requested

Amount Granted


Fit Cycle

18 Maine Maritime Academy* ME $50,000 $5,000 Replace the schooner Bowdon’s

30 year old deck N/A

marine 2

19 McPherson College*+ KS $20,000 $20,000 Eight $2,500 grants for “gap funding” for 2015 summer

internships

N/A auto

2


Technology*+ PA $40,000 $20,000

Eight $5,000 Scholarships for Automotive Restoration

Technology Students

N/A auto

2

21 South Piedmont Community

College Foundation NC $20,000 $0.00

Parts & supplies to restore & modernize a 1970 Dodge

Challenger

N/A auto

2

22 Southern Illinois University

Foundation* IL $30,000 $0.00

Establish an endowment fund, named the Restorers’

Scholarship Fund, to support annual scholarships for students

seeking a B.S. in Automotive Technology

N/A auto

2

23 The Riding With Us

Foundation* NY $16,000 $0.00

Purchase parts to finish restoring a 1970 Oldsmobile 442

N/A auto

2

24 Thornton Fractional High

School* IL $10,000 $10,000

Restore a 1950-1960 classic vehicle to use for program

promotion

N/A auto

2

25 Wexford-Missaukee Career

Technical Center* MI $5,000 $5,000

Purchase components needed to complete building a Factory 5

Cobra kit, donated to them by a local businessman, in

collaboration with 10 school districts in Northern Michigan,

“touching 600 students”

N/A auto

2

26 Coastline Regional Occupation

Program/Laguna Hills High School*

CA $7,000 $5,000 To rebuild 3-4 1966-1971

Honda motorcycles 4½ auto

3

27 Crossover Restoration

Foundation, Inc. TX $35,000 $0.00 Restore a 1935 Ford Coupe

1 auto

3

28 Great Lakes Boat Building

School* MI $5,000 $5,000

To provide eight students with scholarships for the 2016

academic year

5 marine

3

29 International Yacht Restoration School, School of Technology &

Trade* RI $25,000 $20,000

To provide five $5,000 scholarships to students of the

school of Boat Building & Restoration

5 marine

3

30 Northwest School of Wooden

Boatbuilding* WA $15,000 $10,000

To provide scholarships to aspiring boat builders who have

enrolled in the one-year program

5 marine

3

31 Palisades Charter High School CA $35,000 $0.00 To purchase auto equipment & tools plus funding for a part-

time instructor

1 auto

3



Amount Requested

Amount Granted


Fit Cycle

32 STAIRS Program, Inc. TX $40,000 $0.00 Supplies & Food donations for

after school care program 1

auto 3

33 The Landing School ME $10,000 $8,000 To provide five $2,000

scholarships to students of the Wooden Boat Building Program

5 marine

3

34 West Webster Volunteer

Fireman's Association NY $45,000 $0.00

To repair & restore their historic 1935 Ford Firetruck

1 auto

3

35 Joe Kretz* PA $5,000 $5,000

To supplement low wages & help with housing,

transportation, & other living cost

4 auto

3

2015 GRANT STATISTICS

Total Grants Requested (35 from 30 programs/people/ 12 States)

$899,325

Total Rejected Applications (2, started in October) $75,000

Total Grants Denied (15) $636,325

Total Grants Awarded (18; $200,000 budgeted) $188,000

Grants Awarded Per Cycle

Total Grants Awarded – Cycle 1 (January)(2/9) $52,000

Total Grants Awarded – Cycle 1.5 (May)(4/4) $11,000

Total Grants Awarded – Cycle 2 (June)(6/12) $72,000

Total Grants Awarded – Cycle 3 (October)(6/10) $53,000

Awards by Category

Total Awarded for Scholarships (46/58) $115,000

Total Awarded for Internships (3/3) $38,000

Total Awarded for Apprenticeships (1 x 2) $10,000

Total Awarded for Programs (4/4; 250 students) $25,000

People Impact = 300 students

Number of States = 9/12

West Coast: CA, WA; Midwest: IL, KS, MI; Northeast: PA, ME, RI; Southeast: NC

Awards by Vehicle-Type

Total Grants Awarded – Auto (12) $128,000 68%

Total Grants Awarded – Marine (6) $60,000 32%

* Grant support requested by applicant and provided by HEP staff (22/35) + Applicant applied for multiple grants in 2015 (2)

board of directors report - january 21, 2016

Documents