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2005 Annual Report

O U RE X PA N D I N G

U N I V E R S E

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In Memoriam Joseph L. Castle II

This annual report is dedicated to the memory of the late

Joseph L. Castle II, Chairman of the Board of Trustees of The

Franklin Institute who passed away on August 15, 2005. He was

first elected a trustee in 1982. Through his many good works,

he leaves behind a legacy of service to the Institute and to

Philadelphia, as evidenced in this report.

E X PA N D I N G O U R R E A C H

2 Executive Message5 Science Museum11 Center for Innovation in Science Learning17 The Franklin Center22 Financial Report 24 2005 Contributed Support34 Board of Trustees

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• UNIQUElearningexperiences

• EFFECTIVEcommunityoutreach

• EDUCATIONALprogramsforgirlsinscience

• RENOWNEDawardsprogram

• ENLIGHTENINGblockbusterexhibits

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E X E C U T I V E M E S S A G E

Albert Einstein wrote, “the most beautiful experience we can

have is the mysterious—the fundamental emotion which stands

at the cradle of true art and true science.” There is perhaps

no better example of the beautiful mystery of science than

our universe’s ever-expanding frontier. And there is perhaps

no more appropriate metaphor for the year that was at The

Franklin Institute, than in the seemingly infinite growth of the

heavens above.

From our humble roots as a training society for mechanics

and engineers, the Institute continues to expand and grow

in incredible ways. And much like our universe, the Institute

embraces evolution and welcomes change, finding new ways

to serve millions on a local, regional, national and international

scale.

Indeed, today’s Franklin Institute is a dynamic center of

activity that grew dramatically in 2005. Simply put, the Institute

was on everyone’s radar screen.

As the new preferred mid-Atlantic destination for block-

buster exhibits, the Institute hosted two of the most-

visited attractions Philadelphia has ever seen and set the stage

for even bigger shows to come.

As custodian of the Benjamin Franklin National Memorial

and an extensive collection of Frankliniana, the Institute was

a leading voice in planning and executing the international

celebration of the 300th anniversary of the birth of Benjamin

Franklin, launched in early 2006.

As a national leader in innovative science programs focused

on girls, minorities and educators alike, the Institute was

awarded important federal grants and partnered in an exciting

new magnet high school for Philadelphia.

And as home of one of the oldest, most comprehensive sci-

ence awards programs in the world, the Institute brought

another class of world-renowned scientists to Philadelphia to

receive their awards and take part in programs ranging from

university symposia to lively discussions with motivated high

school science students.

These are just a few snapshots—glimpses of a successful year

that positioned the Institute for even more excitement ahead.

Blockbuster Exhibits in the News

The are many reasons that museums import blockbuster exhib-

its like Titanic: The Artifact Exhibition, Gunther von Hagens’

BODY WORLDS: The Anatomical Exhibition of Real Human

Bodies and the upcoming Tutankhamun and the Golden Age of

the Pharaohs.

Museums share a mission of educating their visitors, and

that mission is clearly easier to serve with a building full of

visitors. These “must see” exhibits not only address timely and

topical issues, but also attract new visitors and provide fresh

experiences for those who return again and again. Further,

the revenue from blockbuster exhibits enables the Institute to

advance its mission by providing an array of programs for stu-

dents, teachers and families from underserved communities. In

addition, these exhibits offer the financial security necessary

to expand our myriad of educational services and to maintain

our collections.

In 2005 the Institute discovered that visitors will seek out

first-rate, internationally mounted exhibitions, as Titanic and

BODY WORLDS attracted a surge of visitors day and night,

drawing out-of-town visitors from Boston to Washington D.C.

IN EXPANDING ITS UNIVERSE, THE FRANKLIN

INSTITUTE IS TOUCHING MORE LIVES IN MORE

WAYS THAN EVER BEFORE.

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and beyond, while maintaining strong attendance from sur-

rounding counties.

The Institute attracted a total of almost 950,000 individu-

als, including some 890,000 Museum visitors, nearly 40,000

people attending special events, and another 20,000 children

and adults taking part in special educational programs ranging

from Discovery Camp to teacher workshops to Parent Partners

in School Science. Titanic was held over for the first three weeks

of January, providing a strong start for the year. BODY WORLDS,

which opened in October, was perhaps the most mission-related

special exhibition ever mounted at the Institute, providing an

intense learning experience to hundreds of thousands of visi-

tors, many of them high school and college students.

With Titanic, BODY WORLDS, strong permanent exhibits,

four new experiential school packages, and shows in the Fels

Planetarium and Tuttleman IMAX® Theater, the Institute wel-

comed a remarkable 252,000 school children. Each was offered

deeply discounted admission, and 54,000 from underserved

communities were admitted free of charge.

The Franklin Institute also played a significant role in the

creation of an off-site blockbuster—Benjamin Franklin: In

Search of a Better World—which premiered at the National

Constitution Center on December 15, 2005. The Institute is

proud to have spearheaded this project, which in 1999 brought

together five historic Philadelphia institutions to produce an

international traveling exhibition and to create special pro-

grams celebrating the 300th anniversary of Franklin’s birth

on January 17, 2006. The Institute was proud to have initiated

and led the Tercentenary, with President Dennis M. Wint serv-

ing with Senator Arlen Specter as co-chair of the Benjamin

Franklin Tercentenary Commission, and as chairman of the

Benjamin Franklin 300 Consortium.

�8� Years of New Ideas in Education

While attendance at and attention to the Museum grew, the

Institute remained committed to undertaking innovative edu-

cation programs. In 2005 we took a major step forward in our

largest-ever foray into the classroom. After many years of dis-

cussion with the School District of Philadelphia about creating

a magnet public high school for science, technology and entre-

preneurship, the Science Leadership Academy will open in

September 2006. With the Institute collaborating in the selec-

tion process, the School District hired a principal. The District

also signed a lease and began transforming a nearby building at

22nd and Arch streets into a high school facility. We are pleased

that in January 2006 recruiting began, with 900 students apply-

ing for 105 openings in the September 2006 freshmen class.

Strong Community Support

The Franklin Institute depends on a variety of funding to ensure

its financial health. Earned revenue, which includes admissions,

is the single largest source of income for the annual operating

budget. Last year, earned revenue totaled $18.8 million. Through

the generosity of loyal donors, the Institute also raised $3.8 mil-

lion in general operating support and more than $3.0 million for

restricted programs, as detailed in this report. Together, these

funds enabled the Institute to maintain its record of exceptional

fiscal management; 2005 marked the tenth year out of the past

11 in which the Institute generated an operating surplus.

A special highlight in public support came just at the year’s

end; on December 30, 2005 President George W. Bush signed

The Benjamin Franklin National Commemoration Act (Public

Law 109-153) authorizing the Department of the Interior to

provide up to $10 million in matching funds for renovation of

the Benjamin Franklin National Memorial. Our special thanks

go to Senators Rick Santorum, Arlen Specter and Joe Biden;

Congressmen Jim Gerlach, Bob Brady and Mike Castle; and the

entire Pennsylvania Congressional Delegation for their con-

tinuing support of the Institute’s mission.

We are extremely proud of the progress the Institute made

this past year. Our sincere thanks go to the Institute’s extraor-

dinary trustees and staff for their dedication and hard work.

In particular, we remember, with fondness and gratitude, our

departed friend Joe Castle, who oversaw much of this success

as our Chairman. He leaves a legacy of warmth, enthusiasm, and

inspired commitment to the Institute’s mission that will carry

us forward through the exciting times ahead.

Marsha R. PerelmanChair

Dennis M. WintPresident & CEO

E X PA N D I N GM I N D S

Onthesurface,themostobviousbigstoryfor2005wasattendance.Thebiggerstory,however,revolves

around the exhibits, programs, and new initiatives that—supported by robust Museum attendance of

888,910—positionedtheInstituteforcontinuingsuccess.Learningpermeatedexhibithalls,theatersand

classrooms,aswellastheschoolauditoriumsandgymnasiums,recreationcentersandchurchbasements

thatservedasstagingareasfortheInstitute’sTravelingScienceShows.

Smiling faces popping up through the giant crawl-through arteries in The Giant Heart exhibit are an everyday occurrence as youngsters learn about heart health from the inside out.

Dissection workshops for high school students were a popular addition to The Giant Heart Experience in 2005. Students wore projective goggles and surgical gloves.

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science museum

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Exhibit Overview

Exhibit offerings were bracketed at the beginning by Titanic:

The Artifact Exhibition, which was extended by three weeks

and attracted an additional 47,288 visitors, for a total of 355,421

Titanic admissions. When it closed on January 23, it was the most

visited special exhibit in Institute history. At the other end, on

October 7 the Institute premiered Gunther von Hagens’ BODY

WORLDS: The Anatomical Exhibition of Real Human Bodies,

which had 183,422 tickets purchased by year end, with another

four months to go before closing on April 23, 2006. In between,

smaller travelers like Moneyville and Monsters of the Deep

(both shown in the Mandell Center) added variety, especially for

elementary school age children. Sir Isaac’s Loft: Where Art and

Physics Collide—the seventh new permanent exhibit funded by

the capital campaign—opened on July 15. This mix of physical

science and interactive devices with an art twist inspired open-

ing festivities including Art Jam, where six artists spent 36 con-

secutive hours creating unique artworks to highlight sections

of the exhibit.

Looking ahead, the exhibit team began prelimi-

nary work on Identity: Who Do You Think You Are?,

a new special exhibit the Institute is designing for

the Science Museum Exhibit Collaborative—a consor-

tium of seven major science museums across the United

States. It will open at the Institute in November 2007.

Exhibit developers also prototyped devices for Amazing

Machines, the final capital campaign funded exhibit, scheduled

to open in 2008.

Fall Educators’ Night Out was attended by 2,254 teachers, principals and college faculty there to preview BODY WORLDS as well as new science shows, demonstrations, IMAX features and Planetarium shows. Photo: Laurence Kesterson, Philadelphia Inquirer.

The Giant Heart: A Healthy Interactive Experience was the inspiration for a new single topic, full day field trip program for students grades 3-12.

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BODY WORLDS attracted a significant evening

audience. Photo: Laurence Kesterson,

Philadelphia Inquirer.

BODY WORLDS

Careful post-exhibit analysis of performance and operations

immediately following Titanic accelerated many improvements

to the visitor experience by the time BODY WORLDS took

Philadelphia by storm. For the first time, customers could pur-

chase tickets online and print them out at home, thus bypass-

ing lines at the box office. Onsite purchases were facilitated by

up to 22 check-in stations. Initial concerns about the relatively

higher ticket cost proved unfounded, and the exhibit became

a popular evening date destination for high school and college

students, as well as families and adults in the 30-70 year old cat-

egory. With 30% of the BODY WORLDS attendance taking place

after 5 p.m., there appears to be a substantial ongoing oppor-

tunity for substantive evening programs for adults of all ages.

The huge exhibit occupied both the Upper Mandell Center and

Pepper Hall.

The marketing plan for BODY WORLDS was set many months

prior to its opening, and involved not only an extensive adver-

tising initiative with 6ABC as a sponsor, but also close partner-

ships with the Greater Philadelphia Tourism and Marketing

Corporation, the Philadelphia Visitor and Convention Bureau,

The Philadelphia Inquirer, and an extensive roster of health

and promotional partners including the American Heart

Association, the American Red Cross, and the Pennsylvania

Advocates for Nutrition and Activity. (For complete listing of

promotional partners, see page 33.)

Advertising, promotion and public relations initiatives were

complemented by carefully designed evening and weekend

activities directed at creating specific visitor experiences to

complement the exhibit. Programming ranged from a members-

only lecture by Dr. von Hagens and a private evening in the BODY

WORLDS exhibit for 1,327 members, to ongoing Wednesday

evening and Saturday mid-day public programs featuring phy-

sicians, chefs, nutritionists and fitness trainers, many affiliated

with a BODY WORLDS hotel, restaurant or health partner.

Interpreting Science

BODY WORLDS provided truly unique educational opportuni-

ties for visitors of all ages. High school groups comprised 19%

of fall group attendance, up from an average of 5% just one

year before. This was partially in response to a new experien-

tial package—an organized, immersive field trip experience

dedicating a full day to one topic, developed at the suggestion of

the Educators Advisory Committee. In the fall alone, 7,200 chil-

dren attended the experiential packages for BODY WORLDS,

The Giant Heart, Space and Ben Franklin 300, in their premier

semester. More than half purchased the BODY WORLDS pack-

age, which included grade appropriate workshops in which

students actually performed dissections of either cow eyes

or sheep hearts, as well as a live science show and related

IMAX films.

Offsite, Traveling Science Shows—the Institute’s single

oldest educational program, started in 1936—extended the sci-

ence museum learning experience to 241,000 youngsters from

Virginia to Connecticut; it remains the premier program of its

kind in the mid-Atlantic region. Museum educators also trained

parents and leaders in neighborhood centers throughout the

city to become science ambassadors in their own communities.

Onsite, 374 youngsters attended summer Discovery Camp and

another 132 attended one or more days of Spring Break Camp.

An additional 10,115 children attended the popular Friday/

Saturday night spy-themed Camp-In program, which completed

its 20th year.

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Public Programs

Public programming revolving around the Museum’s plat-

forms for health, astronomy and sports has been a notice-

able attendance driver. Nothing could have better reflected

Philadelphians’ love affair with the Giant Heart than “50 Hours

of the Heart,” celebrating the 50th anniversary of the Giant

Heart and Valentine’s Day. The Museum remained open from

9:30 a.m. Friday, February 11 right through to 5 p.m. the fol-

lowing Sunday. Weekend attendance of 8,500 included 1,600

people purchasing overnight passes for all-night programs

like a concert under the stars and a romantic film festival. 120

couples were married or renewed their vows in the presence of

Judge Frederica Massiah Jackson.

The health and sports platforms were supported by a nation-

ally broadcast panel discussion on “Steroids and Sports” pro-

duced jointly by the Institute and Comcast SportsNet. The pro-

gram featured baseball legend Jose Canseco, who has spoken

before Congress about the use of steroids in professional sports.

Comcast’s Neil Hartman hosted the panel, which also included

several prominent local coaches and doctors, before a live audi-

ence. The program was broadcast by Comcast SportsNet during

prime time in five major U.S. markets. During July Comcast

SportsNet also helped create a day of racecar fun between the

Pocono 500 and the Dover Downs events, with activities high-

lighting basic laws of physics involved in automobile racing.

Young volunteer demonstrates the power of magnetism and electricity in “Sparks!”, a live public show.

Museum instructors introduce drama to a Giant Heart Workshop.

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Tuttleman IMAX Theater

A strong selection of IMAX films, coupled with several spe-

cial educational opening events, contributed to strong IMAX

attendance. For Mystery of the Nile, expedition leader/author

Pasquale Scaturro and Dr. David Silverman, chairman of Near

Eastern Languages and Civilizations and Curator-in-Charge

of the Egyptian Collection at the University of Pennsylvania

Museum of Archeology and Anthropology, provided fascinating

background information on Egypt and the filming. Roar: Lions

of the Kalahari premiered with an introduction by Botswanan

cinematographer Tim Liversedge, who charmed audiences.

Both programs sold out double showings quickly. The Human

Body, brought in to complement BODY WORLDS for the school

audience, sold out to evening adult audiences as well, and extra

shows were added. James Cameron’s Aliens of the Deep was the

most popular educational film of the year with 90,285 visitors,

followed by Mystery of the Nile with 85,850 viewers.

The Tuttleman IMAX Theater premiered its first two gen-

eral release films, starting in summer 2005 with Charlie and

the Chocolate Factory and in November with Harry Potter and

the Goblet of Fire. 40,000 people attended the two films, which

were scheduled around the existing educational IMAX roster.

Free daily demonstrations in Space Command are part of public and school visits alike.

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E X PA N D I N GH O R I Z O N S

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In2005ahostofscience learnerscametoTheFranklinInstitutethroughtheCenterfor Innovation in

ScienceLearning.SomeparticipatedinsciencelearningprogramsheldattheInstitute;othersengaged

inactivitiesattheirschool,home,orcommunitysite;andarecord15millionvisitedTheFranklinInstitute

Online at www.fi.edu. After ten years of operation, the Center for Innovation received significant new

fundingin2005toextendcurrentinitiativesandtostudythelong-termimpactofsignatureprogramson

theirparticipants.

On or off site, Institute instructors bring science to life for students and share teaching techniques with colleague in the public schools.

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center for innovation in science learning

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PACTS Students Revisited

PACTS celebrated 12 years as the Institute’s signature science

learning and leadership program for minority students, grades

6-12. Under the PACTS umbrella are robust programs in envi-

ronmental science, using Centennial Lake at Fairmount Park

as a learning laboratory, and in robotics, with opportunities for

students to design robots and compete in tournaments through-

out the region. Outstanding junior and senior students are

selected as “Explainers” in the Museum, working as junior staff

in several departments and hosting PACTS-sponsored events

throughout the year. A particular highlight was the retrospec-

tive study of PACTS by the Institute for Learning Innovation

[ILI], an organization with national expertise in evaluating

youth programs. ILI found that PACTS greatly enhanced stu-

dents’ knowledge of science and awareness of career options,

particularly science careers. The study also found that PACTS

had a profound impact on students’ formation of individual

identity and social skills.

PACTS Site Coordinator C. Fox Collins (rt) works with a PACTS student at Centennial Lake in Fairmount Park, one of several environmental studies projects undertaken by PACTS.

Teachers and Technology

Technology presents science teachers with amazing opportu-

nities for up-to-the-minute information and real-time commu-

nication. At the same time, technology offers teachers a dizzy-

ing array of choices, all of which take time to incorporate into

classroom practice. Since 1994, when the Institute launched its

web presence, the Center for Innovation has made technology

a centerpiece of its teacher development programs, with sus-

tained support from Unisys Corporation. In 2004 the Institute

became one of the first science centers to install Internet2, a

privately regulated high-performance network that is used

throughout higher education and by nearly half the nation’s K-

12 schools. Two new grants in 2005 encouraged the Center for

Innovation to develop Internet2 technology for use by teachers.

The National Science Foundation [NSF] Teacher Professional

Continuum program funded “Investigating Internet2,” which is

demonstrating how Internet2 can support teachers in grades 6-

8 who use science activity kits in their classrooms. A grant from

NASA funded a focus group of regional teachers, who discussed

how NASA can use Internet2 to disseminate its resources more

effectively to elementary teachers. With the Institute’s long-

standing partner, the School District of Philadelphia, the Center

for Innovation also extended teacher development under the

Math Science Partnership, with online resources that specifi-

cally link to the science curriculum for teachers in grades 5-8.

Professional development (lt) is a continuing commitment of the Institute. On right, mother listens to her son’s heart in a Parent Partners in School Science activity.

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Girls Grown Up

Programs for girls in science are a nationally recognized

strength of the Center for Innovation and have flourished in

sites throughout the country since the late 1980s. In recogni-

tion of this pioneering and sustained work, the NSF awarded

new funding of $1.2 million for “The Impact of Informal

Science on Girls’ Interest, Engagement, and Participation in

Science Communities and Careers,” a four-year research study,

in collaboration with the Institute for Learning Innovation.

Participating in the study are young women now in high school

and college who were active in five informal science projects for

girls, including the Institute’s projects—the National Science

Partnership and Girls at the Center. A second award from NSF is

supporting the redesign and further distribution of the National

Science Partnership’s [NSP] successful science activity kits for

Girl Scout leaders. Over the course of NSP’s existence, the kits

have been used in Girl Scout councils across the U.S., represent-

ing more than 40 states.

The Franklin Institute is recognized as a pioneer in developing science program for girls. These girls are not timid about dissecting a cow eye in a hands-on workshop.

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Parents Engaged in Science

Research and public opinion all support the critical importance

of parents to their children’s achievement in school. The Parent

Partners in School Science [PPSS] project, funded by NSF from

2001-05, developed a very promising model for parental

engagement in children’s science learning by building bridges

between parents, teachers and students. Evaluation studies of

the three Philadelphia elementary schools in PPSS highlighted

the value of “legacy projects,” which involve the entire school

in science-related activities, such as a school garden and explo-

ration cards. The latter are science activities sent home by the

teacher for parents and children to complete together. As a

result of PPSS, teachers and parents received new messages

about what science is and who can do it, which led to the for-

mation of new partnerships between them in supporting their

children. In recognition of the value of this project, NSF made

a one-year supplementary award for PPSS that will extend the

evaluation of the program in the three schools and disseminate

the results to the national education community.

Top and rt: The Parent Partnership in School Science program conducted in 3 Philadelphia elementary schools is a promising model for better science learning and school-parent-child communi-cations.

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A World of Interest in the History of Science

Thanks to a challenge grant from The Barra Foundation, with

matching support from Unisys Corporation, the Center for

Innovation and the Franklin Center are collaborating on the two-

year project, “Making the Case: An Unknown History of Science

in America at The Franklin Institute.” Since 1824 the Institute

has given awards for the greatest achievements in science, engi-

neering and technology, each of which is carefully documented

in a case file. “Making the Case” is developing 32 online pre-

sentations of these previously unknown primary sources that

can be used by scholars, K-12 teachers and students, and the

The Institute’s Series for Educators offers workshops for teachers of grades K-8 on topics ranging from how to involve parents in their children’s science learning to how to demonstrate properties of electricity to raising silkworms in the classroom.

worldwide online public. In keeping with the Benjamin Franklin

Tercentenary, Energy and Communications are the first two

topics for presentation and will include the following “greats”

in the history of science: Nikola Tesla (1894), Marie Curie

(1909), Alexander Graham Bell (1912), Thomas Edison (1914),

Guglielmo Marconi (1918), and Enrico Fermi (1947). “Making

the Case” builds on the prototype online resources developed

in 2004 on the case files of Unisys Corporation progenitors,

William S. Burroughs (1897) and Elmer A. Sperry (1914).

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E X PA N D I N GT H E L E G A C Y

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The Franklin Center provides an important function as custodian of the Institute’s Franklin Awards

Program,historicalcollections,TheJournal of The Franklin Instituteandlibrary.TheCenterlinkshistory,

scholarship and landmark discoveries in science and technology with public education, serving the

Institute’smissiononseveralfronts.

Static electricity machine: Benjamin Franklin used this device to create static electricity for experiments in Philadelphia between 1747 and 1753.

Franklin’s Glass Armonica, a musical instrument for which he wrote several original compositions.

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the franklin center

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The Franklin Awards are among the Nation’s oldest and most

prestigious programs. With roots going back to 1824 when pre-

miums were presented to exhibitors at early exhibitions of

inventions, today’s Awards Program recognizes and encourages

excellence in science, technology and related business endeav-

ors through its medals and its educational outreach. The Award

Laureates represent a scientific elite, individuals whose work

has benefited research and society, directly or indirectly; high-

lighting the relevance of their contributions for the layman is

an important part of the Institute’s mission.

The 2005 Awards recipients listed in this report illustrate

the diversity of talent necessary to take science from the most

basic theoretical level to the marketplace. The Laureates are

recognized for work ranging from an algorithm that makes

modern wireless communication possible to theories that

elucidate the universal structure of human languages; from

explaining the tiny components of DNA that have an enormous

impact on the study of disease to an explanation of the power-

ful forces that bind the atomic nucleus; from pioneering tech-

niques in oil exploration to revolutionary advances in the phar-

maceutical industry.

This past year the Awards Ceremony and Dinner raised a

record breaking $511,000 under the leadership of co-chairs

Sandy Marshall and Joe Natoli. Funds raised support the

Institute’s educational programs, particularly those dedicated

to extending the science learning experience to children and

families from underserved communities.

The Institute’s commitment to education is further

reflected in two student oriented programs and seven pro-

fessional symposia presented off site in conjunction with the

University of Pennsylvania; Temple, Villanova and Drexel uni-

versities; the Institute of Electrical and Electronics Engineers,

Philadelphia; and the Mack Center of Technological Innovation

at the Wharton School. Meet the Scientists, a forum for invited

high school students launched ten years ago and hosted by the

Institute’s PACTS students, provides a unique opportunity for

students to hear and speak personally with world-renowned

scientists. It is a refreshing opportunity for the Laureates to

inspire a few of this new generation to continue their pursuit

of science. The second, a public demonstration program in the

Bartol Atrium—called The Celebration of Science—offers all

visitors a rare opportunity to meet world famous scientists and

to understand the importance of their work.

For the volunteer Committee on Science and the Arts,

Awards Week is the culmination of a multi-year process of

evaluation, prosecuting cases, making formal nominations for

a variety of medals and gaining approval from the Board of

Trustees. Similarly, the Bower Awards Selection Committees

may require a multi-year selection process. 2001 Bower Science

Award laureate Paul Baran hosted the second gathering of The

Society of Laureates, composed of past Franklin Award recipi-

ents, in February 2005 in Silicon Valley.

Some 800 guests attended the awards ceremony, which was emceed by George Stephanopoulos of ABC News, above with Institute President Dennis M. Wint.

High school students attending Meet the Scientists, ply Laureates with questions ranging from how the scientists chose their careers to scientific explanations of the work for which they were being recognized.

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2005 Benjamin Bower Award and Prize for

Achievement in Science

Henri B. Kagan, Ph.D.Université Paris-Sud

Discovery of fundamental chemical

principles that explain the impact of catalyst

shape on its effectiveness in controlling

chemical reactions, simplifying the

manufacture of pharmaceutically important

compounds.

2005 Bower Award for Business Leadership

Alejandro Zaffaroni, Ph.D.ALZA Corporation

Alexza MDC

New biochemical processes and drug

delivery technologies—most significantly, the

birth control pill, transdermal patches and

once-a-day pills.

2005 Benjamin Franklin Medal in Computer

and Cognitive Science

Aravind K. Joshi, Ph.D.University of Pennsylvania

Fundamental contributions to

understanding of how language is represented

in the mind, and for developing techniques

that enable computers to process efficiently

the wide range of human languages.

2005 Benjamin Franklin Medal in Earth and

Environmental Science

Peter R. Vail, Ph.D.Rice University

Pioneering use of seismic reflections to

identify oil-rich sequences of subsurface

rock layers, and contributing to greater

understanding of the earth’s geological

history.

2005 Benjamin Franklin Medal in

Electrical Engineering

Andrew J. Viterbi, Ph.D.The Viterbi Group, LLC

University of Southern California, Los Angeles

Developing the Viterbi Algorithm, an

efficient technique that has advanced modern

space and wireless communication, enabling

digital image transmission from outer space,

and leadership in developing the CDMA

wireless technology, which allows multiple

cell phones to communicate simultaneously

over a common frequency.

2005 Benjamin Franklin Award in Life Science

Elizabeth Helen Blackburn, Ph.D.University of California, San Francisco

Advancements in understanding the

protective roles of telomeres at the ends of

chromosomes, and hence the understanding

of aging and cancer.

2005 Benjamin Franklin Medal in Physics

Yoichiro Nambu, Sc.D.The University of Chicago

Path-breaking contributions leading

to our modern understanding of sub-

atomic particles—the Standard Model—

revolutionizing ideas about the nature of the

most fundamental particles and the space

through which they move.

Award Laureates left to right: Yoichiro Nambu, Aravind K. Joshi, Peter R. Vail, Elizabeth Helen Blackburn, Henri B. Kagan, Alejandro Zaffaroni, Andrew J. Viterbi.

2 0 0 5 F R A N K L I N I N S T I T U T E

A W A R D S

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Bringing History to Life

As the world prepared to celebrate the 300th anniversary of

Benjamin Franklin’s birth, The Franklin Institute’s Awards

Program shared center stage with the Franklin Center’s collec-

tions and curatorial work. The Institute has several significant

historical collections, including an extensive body of artifacts

owned by or closely associated with Franklin. Twenty-three of

these artifacts are exhibited in Benjamin Franklin: In Search

of a Better World, an international traveling exhibition that

opened at the National Constitution Center on December 15,

2005, in advance of touring four U.S. cities before ending its

tour in Paris. Among the items on loan are Franklin’s armonica—

a musical instrument he invented, the electrostatic machine he

used for many of his experiments, his lightning rod and a sword

that—as ambassador to France—Franklin wore at the court of

Louis XIV.

The Wright Brothers’ Aeronautical Engineering Collection

is among the finest repositories of Wright materials anywhere.

The latest phase of the Institute’s initiative to conserve the col-

lection was completed with the return of the Wright brothers’

fully restored automatic stabilizer. This remarkable device is

installed in The Franklin Air Show; parts of the Wright stabi-

lizer design are still used in modern aircraft. Complementing

the Wright collection is a complete set of CAD generated

mechanical drawings for the Wright Model B flyer. No original

plans are known to exist, but when Aeroplane Works in Dayton,

Ohio restored the Model B in 2003, they took precise measure-

ments of each part, which enabled them to recreate a complete

set of plans. They recently flew a full size replica built from

these plans.

Franklin attached an odometer to the hub of a carriage wheel in order to measure distances when he laid out the post roads. He gave this particular odometer to his friend Thomas Jefferson.

A third major collection is the vast archive of case files from

the Committee on Science and the Arts that forms the basis

for a joint project with the Center for Innovation in Science

Learning (details on page 15).

The Journal Transformed

The Journal of The Franklin Institute was started in 1826

and has an established reputation for publishing high-quality

papers in the field of engineering and applied mathematics. Its

current focus is on information and communication systems,

signal processing, wavelets, sensor fusion, computer and com-

munication networks, neural networks, control theory, nonlin-

ear dynamics, fractals and chaos theory. It is the second oldest

American journal devoted to science and technology in contin-

uous publication.

More than ten years ago The Franklin Institute formed an

affiliation with Elsevier Publications to expand circulation.

In 2003 the entire archive of journals was put online, making

its valuable historic documentation of science and technology

readily available to 21st century scholars.

Today it is a highly regarded publication in the areas of

applied mathematics and electronic engineering, with authors,

editors and reviewers from North America, Europe, Asia and

the Middle East who are engineers, mathematicians and physi-

cists. In 2005 the journal enjoyed a record-breaking year. It is

anticipated that with an increase from seven issue per year to

eight in 2007.

Library

The Library staff continued the complicated and labor-inten-

sive task of preparing the Library for a major restructuring and

a shift in emphasis in order to focus resources on building and

maintaining a collection that better serves the mission of The

Franklin Institute.

20 2�

Benjamin Franklin corresponded extensively with friends abroad, especially Peter Collinson, a British woolens manufacturer by trade, botanist/scientist by avocation and a Fellow of the Royal Society. It was through Collinson that

Franklin communicated to the Royal Society what would in 1751 be published as the famous Experiments and Observations on Electricity.

22 2�

F I N A N C I A L R E P O R T

Statement of Operations and Changes in Net Assets for Fiscal Years Ended December 31, 2005 and December 31, 2004

December 31, 2005 December 31, 2004Unrestricted Assets Revenue, support, and investment income Program revenue Admission fees $ 8,383,566 $ 8,003,197 Ancillary activities 3,596,214 3,635,864 Museum projects 3,652,496 3,314,812 Educational programs and services 1,927,852 1,763,202 Other 134,826 604,133 Total program revenue $ 17,694,954 $ 17,321,208 Support Annual giving $ 3,280,707 $ 3,201,552 In-Kind contributions 430,584 2,093,403 Appropriations (City of Philadelphia, Commonwealth of PA) 713,412 708,600 Other contributions 1,200 129,947 Total support 4,425,903 6,133,502 Investment return designated for current operations 579,725 583,069 Net assets released from restrictions/satisfaction of purpose restrictions 1,083,106 1,344,625 Total revenue, support, operating investment income and net assets released from restrictions $ 23,783,688 $ 25,382,404 Expenses Program expenses Museum operations $ 13,375,319 $ 14,603,109 Ancillary activities 1,676,801 1,651,909 Museum projects 3,767,906 3,753,171 Educational programs and services 994,226 976,173 Bower Award 574,442 740,863 Total program expenses 20,388,694 21,725,225 Interest 926,103 955,758 Development–Capital Campaign 310,385 133,431 General development 898,262 884,733 Total expenses 22,523,444 23,699,147 Operating income before depreciation $ 1,260,244 $ 1,683,257 Depreciation 4,996,745 4,431,933 Operating income (loss) $ (3,736,501) $ (2,748,676) Non-operating investment income, expenses and releases Net assets released/satisfaction of purpose restrictions 4,726,097 8,477,610 Investment return net of amounts designated for current operations 326,582 646,390 Total non-operating income, expenses and releases 5,052,679 9,124,000 Increase in unrestricted net assets $ 1,316,178 $ 6,375,324

Temporarily Restricted Net AssetsContributions $ 327,000 $ —Contributions–Capital Campaign 2,564,302 8,367,047Investment return net of amounts designated for current operations 851,201 2,002,667Investment return designated for current operations 457,130 440,448 Net assets released from purpose restrictions (5,809,203) (9,822,235) Increase in temporarily restricted net assets $ (1,609,570) $ 987,927

Permanently Restricted Net AssetsNet appreciation (depreciation) of investments held by third-parties $ 250,524 $ 419,886 Increase (decrease) in permanently restricted net assets $ 250,524 $ 419,886 Change in net assets $ (42,868) $ 7,783,137 Net assets, beginning of year $ 109,173,605 $ 101,390,468 Total net assets, end of year $ 109,130,737 $ 109,173,605

22 2�

Statement of Operations and Changes in Net Assets for Fiscal Years Ended December 31, 2005 and December 31, 2004

December 31, 2005 December 31, 2004Assets Cash and cash equivalents $ 2,405,959 $ 4,781,926 Accounts receivable, net 1,286,821 899,620 Pledges receivable, net 5,826,050 10,360,996 Inventory 313,325 325,095 Prepaid and deferred expenses 709,586 942,361 Pooled investments 35,892,482 33,215,003 Investments held by a third party 11,833,940 11,583,416 Other investments 14,273 14,273 Property, buildings and equipment, net 70,971,874 71,114,107 Cash restricted 1,436,200 1,436,200 Deferred loan costs, net 294,142 308,531 Total assets $ 130,984,652 $ 134,981,528

Liabilities and Net Assets Liabilities Accounts payable and accrued expenses $ 2,923,354 $ 3,759,484 Deferred revenue 685,487 3,235,562 Capitalized lease obligation — 21,054 Long-term debt 18,245,074 18,791,823 Total liabilities $ 21,853,915 $ 25,807,923 Net assets Unrestricted $ 65,745,251 $ 64,429,073 Temporarily restricted 29,112,075 30,721,645 Permanently restricted 14,273,411 14,022,887 Total net assets $ 109,130,737 $ 109,173,605 Total liabilities and net assets $ 130,984,652 $ 134,981,528

�4 �5

B O A R D O F T R U S T E E S

Joseph L. Castle II*Chair, Board of Trustees

Marsha R. PerelmanChair, Board of Trustees

Dennis M. Wint, Ph.D.President and CEO

Reneé AmoorePresident The Amoore Group, Inc.

William J. AveryCommunity Volunteer

Frank Baldino, Jr., Ph.D.Chairman and CEO Cephalon, Inc.

Scott A. BattersbyVice President and Corporate TreasurerUnisys Corporation

David J. BerkmanManaging PartnerLiberty Associated Partners, LP

Renee B. Booth, Ph.D.PresidentLeadership Solutions, Inc.

Charles R. Bridges, M.D., Sc.D.Clinical Director of Cardiac SurgeryPennsylvania Hospital

Donald E. CallaghanPrincipalHirtle, Callaghan & Company

Michael F. CamardoExecutive Vice PresidentLockheed Martin

Robert M. ChappelearSenior Vice President, Market Investment Bank of America Private Bank

The Honorable Augusta A. ClarkRetired, Secretary of Agencies, Authorities, Boards & Commission, City of Philadelphia

I Michael CoslovChairman & CEOTube City, Inc.

David R. CurryCommunity Volunteer

Richard H. DilsheimerCEO Dilsheimer Communities, Inc.

Kevin F. DonohoePresident The Kevin F. Donohoe Company, Inc.

W. Joseph DuckworthPresidentArcadia Land Company

J. Michael Fitzpatrick, Ph.D.Retired, President & Chief Operating OfficerRohm & Haas Company

William J. FrielExecutive Vice President, Corporate BankingPNC Bank

S. Matthews V. Hamilton, Jr.President Travel Services Company

Paul C. Heintz, Esq.PartnerObermayer, Rebmann, Maxwell & Hippel, LLP

Susan Y. KimCommunity Volunteer

Roger A. KroneSenior Vice President, Army ProgramsThe Boeing Company

Charisse R. Lillie, Esq.Vice President of Human ResourcesComcast Corporation

Ira M. LubertPrincipalLubert-Adler Management, Inc.

Miriam G. MandellVice PresidentMGM Consulting Corporation

Ronald J. NaplesChairman & CEOQuaker Chemical Corporation

Joe NatoliChairman & PublisherPhiladelphia Newspapers, Inc.

Denis P. O’BrienPresidentPECO, An Exelon Company

Samuel J. PattersonChairman & CEOVeridyne Inc.

Hershel J. Richman, Esq.Senior CounselDechert

Bruce D. RubinVice President & General ManagerSunoco, Inc.

William H. Shea, Jr.Chairman, President and CEOBuckeye Pipe Line Company

Frank P. Slattery, Jr.PresidentQuintus

Ann R. SorgentiCommunity Volunteer

William J. StallkampManaging DirectorPenn Hudson Financial Group, Inc.

Joan N. Stern, Esq.PartnerBlank Rome LLP

James M. Wilson, M.D., Ph.D.John Herr Musser Professor of ResearchUniversity of Pennsylvania

Paul H. Woodruff, PE, DEEPresident Mistwood Enterprises

Tadataka Yamada, M.D. Chairman, Research and DevelopmentGlaxoSmithKline

Lore N. YaoCommunity Volunteer

Ex-officio MembersSandra K. BaldinoThe Honorable Darrell L. ClarkePeter J. CollingsGrete GreenacreThe Honorable Edward G. RendellThe Honorable John F. StreetPaul G. Vallas The Honorable Anna C. Verna

Honorary MemberJoel N. Bloom

*Deceased

�4 �5

Emeritus MembersCharles L. Andes – Chairman EmeritusWilliam J. Avery – Chairman EmeritusHenry M. Chance II Bowen C. Dees, Ph.D. – President EmeritusJames J. Eberl, Ph.D.Richard T. Nalle, Jr.James A. Unruh – Chairman Emeritus

Elected OfficersMarsha R. Perelman Chair, Board of Trustees

Dennis M. Wint, Ph.D.President and CEO

Larry Dubinski, Esq.Vice President, Development and General Counsel, Secretary

Donna D. SteinSenior Vice President, Finance and Administration, Treasurer and Controller

Leadership CouncilDennis M. Wint, Ph.D. President and CEO

Carol Parssinen, Ph.D. Senior Vice President, Center for Innovation in Science Learning

Donna D. Stein Senior Vice President, Finance and Administration

Karen CorbinVice President, Marketing and Visitor Relations Larry Dubinski, Esq.Vice President, Development and General Counsel

Philip W. Hammer, Ph.D. Vice President, Franklin Center Richard D. Rabena Vice President, Operations Steven L. Snyder, Ph.D. Vice President, Exhibits and Program Development Reid O. Styles Vice President, Human Resources

List as of December 12, 2005

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E X PA N D I N G O U R F U T U R E

��Designed by Allemann Almquist and Jones

Science Museum & Fels PlanetariumMandell Center & Rathmann Hall of ScienceTuttleman IMAX TheaterThe Benjamin Franklin National Memorial

222 North 20th StreetPhiladelphia, PA 19103-1194

215.448.1200www.fi.edu