Good for K-State Magazine Fall 2012

Volume 4, Issue 2 Fall 2012

Pride of placePrivately-funded expansion renews Justin Hall

By Marisa LarsonFood safety education is reaching people of all ages in the Kansas City area, thanks to a partnership between K-State Olathe and Sysco Kansas City. Sysco KC has played an integral part in the development of hands-on food-safety training for food-service workers and volunteers. Now the company is working with K-State Olathe to reach a wider audience.

With a total investment of $75,000 over three years, Sysco has enabled K-State Olathe to reach people through several food-safety education programs, including some

for school-age children and youth. “Even though we had researched food safety, attending the K-State Food Safety Center provided an opportunity for our students to learn from a real chef, which they thought was wonderful,” said Maria Kandt, a teacher with the Lee’s Summit school district. “Parents have shared that their children remind them about the proper length of time to keep food cold after grocery shopping and how long they should keep food out at a football watch party.”

Sysco realizes the far-reaching impact such education and outreach can have on the population. “We strongly

The future of food safety

Fall 2012

2 GoodShot Gift restores sight for four-legged friends

4 GoodWord Student reflects on scholarship support

6 Justin Hall redefined Privately-funded expansion renews pride of

place

12 Making art accessible A family foundation brings art collection into

the digital world

14 1863 Circle Recognizing leadership in annual giving

15 GoodPlan Planned gift honors K-State’s sesquicentennial

16 Good for All Telefund: it’s new and improved!

18 GoodNews

20 GoodBye A K-State student leader starts her next

chapter

22 2012 Annual Report

Good for K-State is published for the

thousands of alumni and friends who advance

K-State through philanthropy. Thank you

for all you do to keep K-State strong!

support the teaching of food safety to children,” said Linda Rapue, Sysco dietitian. “Not only can they apply the information to what they do now but those habits will help safely carry them into the future.”

How you can helpTo contribute to K-State Olathe or one of its specific programs, please contact Debbie Kirchhoff at 913-307-7310 or [email protected]. n

Welcome to Good for K-State, a magazine devoted to the inspiration and impact of private philanthropy for Kansas State University. We invite your comments, questions and ideas. Just send an email to [email protected]. We are eager to hear from you!

facebook.com/ksufoundation twitter.com/KSU_Foundation

Editorial team Julie Lea, editor Marisa Larson, writer Susan Wolf Berhow, writer Kim Zerfas, art director/layout artist Kim Downing, editorial assistant

Good for K-State is published by the Kansas State University Foundation, 2323 Anderson Ave., Suite 500, Manhattan, KS 66502-2911.

Cover Photo: DaviD Mayes 100%

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Fourth, fifth and sixth grade students from the ASPIRE program at Prairie View Elementary, Lee’s Summit, Mo., prepare pizza dough during a food safety training program at K-State Olathe.The future of food safety

| GoodShot |

The eyes have itBy Marisa Larson

2 Good for K-State | Fall 2012

How you can helpIf you would like to donate to the Veterinary Health Center or the College of Veterinary Medicine, please contact Chris Gruber at the KSU Foundation at 785-532-4465 or [email protected]. n

Photo: DaviD Mayes

A generous gift from Mark Chapman and Cheryl Mellenthin

of Cat Spring, Texas, has many dogs and horses seeing more clearly. Thanks to their support, the Veterinary Health Center (VHC) at Kansas State University was able to purchase a phacoemulsification unit used in cataract surgery. The phaco unit uses ultrasonic waves to break up and remove the eye lens material.

Dr. Amy Rankin, ophthalmologist at the VHC, says the gift came at the perfect time. “This new machine is hugely important because we can do both small animals, dogs and cats, and horses,” she said. The old unit, which was made for humans, was fine for small and exotic animals, but not for horses. “It’s the only machine I would ever use for horses because horses have a much bigger eye than dogs and cats,” Dr. Rankin said.

Cataract surgery for horses is not a common procedure,

but Dr. Rankin and Dr. Jessica Slack use the phaco unit nearly every week on dogs, who

commonly develop cataracts. Before having this special unit, owners of horses needing cataract surgery would have had to travel to Indiana, Texas, Florida or North Carolina. “We have a blind horse,” Mellenthin said. “He’s had his cataract for too long for anything to be helpful. There was no place for us to go anyway, to try and get it fixed. We could have gone to Colorado or maybe Florida, but from Texas that’s just not practical. So obviously there’s a need. K-State needed it and this way those around here who need the help can now get it.” Now that K-State has this unit, the VHC can provide this surgery for animals of all sizes.

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Honor in givingBy Marisa Larson

Every year, hundreds of K-State students receive scholarships thanks to the generosity of others. Scholarship recipients are asked to write a thank-you letter to those who fund their scholarship. Jason Spengel’s letter to the family of John M. Cranor, Jr., whose scholarship he received this year, was greatly appreciated. “Dad was the first of his family to graduate from college and he fully appreciated what a college education can do to help launch a career,” Tim Cranor said. “He would be honored to know that scholarships in his memory have been able to help those pursuing their degrees.”

Thank you so much for your kindness and generosity in selecting me to receive the John M. Cranor, Jr. Memorial scholarship. it is greatly appreciated and will aid me immensely

in paying for my college education. i was born and raised a Ku fan in overland Park, Kan., but found the educational program of my dreams in Manhattan and haven’t looked back since. i am currently studying wildlife and outdoor enterprise management with a minor in business and a minor in biology. Being an avid outdoorsman, when i saw the curriculum for my major at K-state i renounced my crimson and blue ways and have bled purple ever since.

i survived stage four liver cancer when i was nine years old. i was on chemotherapy for eight months and underwent an 11-hour surgery in which they removed a softball-sized tumor and 83 percent of my liver. i have been in remission for 11 years. i completed my eagle scout service project by collecting more than $2,700 worth of toys and games for the pediatric cancer clinic at Children’s Mercy hospital in Kansas City, Mo. it was my way of giving back after they had saved my life several years before. i also volunteer at a week-long summer camp for pediatric cancer survivors. i was a camper at the camp for seven years and have now returned as a counselor for the last three.

i do intend to give back to K-state, most likely to my current program. the wildlife and outdoor enterprise management major is only in its fourth year and still has a lot of room for growth. if i became successful, i would love to come back and talk to students and let them know what worked for me.

once again, i would like to say thank you so very much for the scholarship. it will assist me greatly with my financial needs. everyone knows that college is extremely expensive these days, but the education is worth it. every bit of assistance one can receive in paying for it is an honorable gift. thank you so much for your kind donation.

— Jason spengel


| GoodWord |

How you can helpTo learn more about how you can support students in the College of Agriculture, contact Kim Schirer at 785-532-7517 or [email protected]. n

Photo: DaviD MayesJason Spengel inspects sorghum seeds as part of his job with the agronomy department.

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Justin Hall’s upcoming renovation and addition will feature new ideas in sustainability and design

By Amber Weaver

RedefinedJu

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By Susan Wolf Berhow Photos by David Mayes


New high-tech classrooms where every student matters. Areas for students to meet, study and collaborate. Spaces that not only welcome, but inspire. The new Justin Hall expansion, a $5 million project that was funded entirely by private gifts, is a study in how a space can bring people together to learn and grow.

“This addition has brightened up the building that many of us already view as home,” said Lauren Koepp, K-State senior in interior design at the building’s dedication in September. “The beautiful spaces provide a very positive and uplifting learning environment for faculty, students and visitors alike.”

It was a project whose time had come, according to College of Human Ecology Dean Virginia Moxley. When Justin Hall was dedicated in 1960, the School of Home Economics had almost 600 students and very limited, extramurally funded research. Today the College of Human Ecology serves 2,500 students and engages in more than $20 million annually in competitively funded research.

The challenge was not just to meet the demands of the college’s thriving academic programs, but also to represent the spirit of the college in the building’s design. True to the college’s collaborative approach, students, faculty and staff were engaged to help re-imagine Justin Hall’s future.

“The expansion is a tribute to the character of the college,” said Carolyn Jackson, president of the human ecology alumni advisory board. “We are approachable, inclusive, future-forward and very collaborative. We’re also a group that knows how to push boundaries.”

Exterior renovations that preserve our heritage: The exterior of the new addition echoes the traditional limestone construction seen throughout campus.

Justin Hall expansion facts• the $5 million expansion was

funded by philanthropic contributions from alumni and friends of the College of human ecology.

• hutton Construction used 128 tons of limestone in the expansion project. a limestone exterior wall, constructed in 1959, is now the north interior of the student gathering area. additionally, 101 tons of waste material was recycled during the course of the project.

— continued on next page

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Moxley credits the college’s generous alumni and friends with helping to make the dream possible.

“Every great achievement has heroes and this wonderful new construction has many heroes,” Moxley said. “First and foremost, are the donors whose generosity made everything possible. I especially want to thank Betty Tointon for giving me hope that this was possible. And I send out another thank you to Carl and Mary Ice for giving me hope that we could actually conclude this project.”

Now that the project is complete, it’s more than a new home for the college; it’s a place to be inspired.

“This addition will impact students in more ways than you think,” Koepp said. “I really don’t think we can thank you enough, not just for giving us something new, shiny and exciting, but for giving us the opportunity to grow to our greatest potential as students.”

Justin Hall redefined

A new front door to the College of Human Ecology: Near the advising office, there is a lobby with comfortable chairs and a word cloud, an artfully arranged collection of words associated with the College of Human Ecology. “The sculpture describes the behaviors and dispositions of scholars in human ecology,” Moxley said.

OPPOSITE — Classrooms where every person matters: New classrooms feature a horseshoe design, where every person in the room can see every other person. The chairs rotate 360 degrees to facilitate small group discussions and custom high-tech lecterns allow faculty to utilize two large screens for projecting data, photos and notes during lectures.


Justin Hall expansion facts• every seat in the Betty L. tointon

classroom and the Mary and Carl ice classroom is equipped with power outlets to allow students to use computers and recorders. Wireless access is available throughout the building.

• the project architect is seeking LeeD (Leadership in energy and environmental Design) Gold certification for the Justin hall expansion, a designation that could take up to a year to acquire.

• Landscapers planted 1,702 plants, shrubs and trees and used 58 cubic yards of mulch in the Justin hall expansion project. Plants were chosen for their low water usage and drought tolerance.

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We thank our donorsThe Justin Hall expansion project was funded completely by private gifts, including the following “heroes” who supported the expansion with gifts of $10,000 or greater:Mary and Carl IceWestlake, texas

Betty and Bob TointonGreeley, Colo.

Ruth Mo Leealiso viejo, Calif.

Mary G. Fletcher*

TOP — K-State President Kirk Schulz visits with Lucile Hawks during the dedication. AbOVE — Hundreds of people enjoyed touring the new space during dedication ceremonies in September.


C.Q.* and Georgia ChandlerWichita, Kan.

Ursula Pettengill*

Pat and Larry KendallFort Collins, Colo.

Elizabeth Cowie Kennedy*

Sharon and Samuel Nickolsathens, Ga.

Louis E. Boyle McKay* and Robert McKayedmonds, Wash.

Betty and Gary LortscherBern, Kan.

Rich and Sarah Porterreading, Kan.

Carol KellettManhattan, Kan.

Lucile E. Hawkshiawatha, Kan.

Henry and Janet Hyndmanhesston, Kan.

Bernard and Sherry ButlerManhattan, Kan.

Sally and Thane BakerGranbury, texas

Jeane and Bruce JohnsonLos Gatos, Calif.

Kathleen NewellManhattan, Kan.

Virginia and Tom MoxleyCouncil Grove, Ks

Carolyn Jacksonarlington, va.

Amy Chuhong Kong

Laurel and Don McKahansan Diego, Calif.

Bill MeredithManhattan, Kan.

*Deceased

Space for students to come and stay: Collaboration is a theme seen throughout the building and an important factor in student retention. In this gathering area, six students can plug in their laptops and share their screens. It’s an ideal space for group meetings or study sessions.

How you can helpTo find out more about supporting the future of Justin Hall, contact Jennifer Rettele-Thomas, senior director of development for the College of Human Ecology, at 785-532-7592 or [email protected]. n

www.found.ksu.edu 11

Sarah Price, registrar and collections manager at the beach Museum of Art,

prepares to photograph one of the more than 7,000 objects in the museum’s permanent collection as part of the

Robert K. and Dale J. Weary Digitization Project. Paintings in the background are

from the upcoming exhibition at the beach Museum, “Inadvertent Arson: Paintings

and Drawings by Patrick Duegaw.”

In a storage area tucked away in the inner corridors of the Marianna Kistler Beach

Museum of Art, Sarah Price peers into the viewfinder of a Nikon D3X and focuses on a small painting. Shutter clicks and flash pops fill the room as Price captures the museum’s treasures for the world to see.

As the registrar and collections manager of the museum, Price has been at the forefront of a major undertaking: The Robert K. and Dale J. Weary Digitization Project, which will allow the museum to digitize its permanent collection so that it can be accessible to all through the museum’s website.

It’s no small task. Since opening in 1996, the museum’s collection, which focuses on the art of Kansas and the region, has grown from 1,500 to more than 7,000 objects. For digitization, each object is photographed multiple times and the images are imported into a database. Each image is assigned extensive descriptive information, making the works searchable.

“Lots of museums are trying to do this, and it can take years and years,” Price said. “But thanks to the Weary Family Foundation, we are optimistic about having the entire permanent collection in a searchable database available through our website by the end of the year. The idea is that researchers and casual users alike can find what they want to find. We can make it all accessible.”

The Robert K. and Dale J. Weary Family Foundation’s gift supplied the staff, training, professional-quality photography and lighting equipment, additional technology resources,

and a specialized collections management system called MuseumsPlus.

“I cannot say enough about the generosity of the Weary family and their openness to what we needed,” said Linda Duke, director of the Beach Museum of Art. “Getting a federal grant to do this type of work is very tough. To have a donor notice how

valuable this digitization will be is amazing.”

Dale Ann and Bob Clore of Manhattan help to manage the Robert K. and Dale J. Weary Family Foundation, which was established by Dale Ann’s late parents of Junction City. Dale Ann says her parents would have enjoyed supporting this project.

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Making art accessibleBy Susan Wolf Berhow


“My parents saw the value of people getting an education, and part of that education is in the arts,” she said. “We thought the digitization project was a great fit. It gets the collection out for the world to see, and the possibilities are endless.”

Bob Clore, associate professor emeritus of art at K-State, has a special appreciation for the need for private support of the arts, especially

in an era of dwindling federal and state resources. “It’s very difficult in the arts,” he said. “It takes individuals who are in a position to help.”

The Robert K. and Dale J. Weary Family Foundation’s contributions extend from the Beach museum to other areas of K-State, including support for the McCain Performance Series, equipment purchases for the

Department of Art and support for the College of Veterinary Medicine.

How you can helpFor more information on supporting the Beach Museum of Art, contact Tracy Robinson, director of development for university programs, at 785-532-7568 or [email protected]. n


By Susan Wolf Berhow

Don and Laurel McKahan live more than 1,500 miles away from K-State, but that doesn’t mean they aren’t close to the university. They attend alumni events in San Diego and return to campus occasionally to attend a game or speak in a classroom. Besides staying involved, the McKahans also make a point to give back to the K-State programs that helped shape them personally and professionally.

And the McKahans are not alone: they are just two of 5,000 K-Staters recognized this year as inaugural members of the 1863 Circle, K-State’s giving society that recognizes leadership giving of $1,000 or more annually. The combined contributions of this inaugural group exceed $40 million and will impact numerous areas of K-State.

How has K-State impacted your life?Don: College usually comes at an important developmental stage, leading to adulthood. Earning my degree from K-State came with academic demands that, in turn, helped develop my work ethic, organizational skills and an appreciation for teamwork. Those 7:30 a.m. “Oral Communication” classes actually paid dividends in later life.

Laurel: After graduating from the home economics department, now the College of Human Ecology, I worked in retail selling designer fabrics. My studies in tailoring, draping and fashion design helped me then, and I’ve continued to enjoy sewing to this day. I am delighted to see TV shows like Project Runway, which I feel may be bringing back an interest in design and fiber arts.

What does it feel like to give back to K-State?Don: There’s great satisfaction in being part of K-State’s educational mission, which now goes back almost 150 years. We’ve been around K-State for 40-plus years, and we’ve seen the impact of various capital campaigns, improving the campus athletic and classroom facilities. But the real satisfaction comes from meeting successful K-State graduates and knowing that your contribution of time or money helped make a difference in that young person’s student life and education.

Laurel: It’s always a great feeling when you know you may have helped in some way to either update one of the buildings or help a student have an educational experience they may not otherwise have had the chance to get. Set aside a little each month for K-State and make that yearly donation. It is easy and rewarding!

How you can helpTo learn more about the 1863 Circle and its 5,000 members, visit our website at www.found.ksu.edu/1863. n

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Recognizing leadership in annual giving

Don and Laurel McKahan

Scan this QR code with your smart phone to read a full Q&A with the McKahans.


| GoodPlan |

By Marisa Larson

“Previous generations before us had a vision and that’s how the university started. The previous generations gave us opportunities, so if we don’t look after generations after us, what opportunities would they have? If we don’t do it now, who will?” asks Laurel Erickson. Laurel and her husband Larry took that philosophy to heart and established charitable gift annuities with the KSU Foundation in the amount of $150,000 in honor of K-State’s 150th anniversary. Both Laurel and Larry are K-State graduates and Larry is a professor of chemical engineering.

The Ericksons, who live in Manhattan, Kan., believe strongly in supporting the university. “I feel that Kansas State University and other universities are an important part of the society we live in and that many

good things happen to students who come here,” Larry said. “A university with a research program does things that have a significant value, so we feel that’s a good reason to contribute. When I was an out-of-state student in 1957, I paid $199 a semester in tuition and fees. Now it’s much more, and the state has not kept supporting the university as well as it did in the past so there is a greater need for philanthropic support.”

On their gift of $150,000 to K-State, Larry said, “It seemed like a logical way to celebrate the 150th anniversary in terms of something that seemed doable and appropriate. Giving a gift annuity is a different way to contribute than just giving the university $150,000. It seems to be a logical way for us to move toward retirement and have retirement income. We see this as a win-win

opportunity as it’s good for K-State and it’s good for us.”

Laurel encourages others to contribute to K-State as well. “With the 150th anniversary, wouldn’t it be great if a person had 150 pennies or 150 dollars or 150 thousand or 150 million, to be able to do something with it — contact the university and explore all the different programs where they might have an interest.”

How you can helpThere are thousands of ways you can support K-State. Contact our Gift Planning Department at 785-532-7531 or giftoptions@ found.ksu.edu. n

A late-19th century view of Fairchild Hall (left) and Anderson Hall (right) demonstrate how much the K-State campus has grown and changed in 150 years.

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Honoring the past, giving for the future

Scan this QR code with your smart phone to visit the

K-State 150th anniversary website.


| Good For All |



Rutherford Nathaniel Sanford IV, a junior from Houston, Texas, is a hardworking K-State student. He takes a full load of courses as a hotel and restaurant management major, is involved in his fraternity and several other student organizations, and works four

part-time jobs. One of those jobs is working as a student fundraiser for the newly expanded K-State Telefund.

“I really look forward to coming here,” Sanford said, motioning to the call center where he works several nights a week. “I look forward to talking to people. You never know who you are going to talk to. It could be your mom’s former college roommate. It could be your future boss.”

This summer, Telefund transitioned to a year-round calling program, allowing K-State to significantly expand the number of K-Staters who can be reached each year. In addition to increasing the number of alumni contacted on behalf of K-State’s nine academic colleges, Telefund’s expansion will allow students to connect with a broader audience, including K-State parents and friends. The move is also expected to increase private support and create 60 new campus jobs for students like Sanford.

“We are excited to continue the Telefund tradition and allow more alumni and students to connect over a phone call,” said Mindy Weixelman, senior director of annual giving and student programs. “In previous years, we were able to contact about 30,000 alumni and friends through our traditional month-long calling program. With the new program, we expect to be able to reach 100,000.”

How you can helpYour Telefund call may come at a different time this year, but we hope you’ll answer your call and visit with a student fundraiser like Sanford. To learn more about K-State Telefund, and read profiles on our student fundraisers, visit www.k-statetelefund.org. n

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Rutherford Sanford (left), a junior from Houston, with other callers in the new K-State Telefund Calling Center.


The home K-Staters builtBy Marisa LarsonFrom the time the K-State Alumni Center opened its doors in October 2002 until June 2012, nearly 500,000 alumni, students and friends have held some 6,500 events there, more than fulfilling the center’s role on campus — to bring K-Staters together. “We wanted the alumni center to feel like home,” declared Curt Frasier, former chair of the alumni board and chair of the alumni center campaign. “What most people share is that as they enter it, it kind of takes their breath away — not because it’s beyond their expectations but because it has so much warmth to it. It’s a place they want to be whether it’s for a social function or some other use.”

The alumni center was a true K-State success story — made possible by 1,500 donors who contributed the $13 million to build the center. “The amazing thing to me is that it was built on time and within budget,” said K-State Alumni Association President Amy Button Renz. “It was all privately funded, and we raised the money in three years instead of five. It was a true grassroots campaign.”

The alumni board decided to make building the alumni center a true K-State project and only interviewed architects and contractors who had K-State degrees. “It was very important to have a home for all K-Staters be designed and built by our own graduates,” Renz said. Building and site committee co-chair Jim Tadtman said, “It was like a labor of love. We and the committee knew the

center was something that was going to be there forever and be a gateway to the campus. It was exciting and fun to do.”

The alumni association wants to preserve their dream for the alumni center and is working to build the funds to totally support the operations of the building through an endowment. “It costs roughly $480,000 to run the center and about 60 percent of that is being offset by rental fees and commissions through catering,” Renz said. “The association pays for the rest. With an endowment

fund completely paying for the center operation, funds could be redirected toward association staff and programming.”

How you can helpIf you’re interested in helping to maintain the K-State Alumni Center, please visit www.k-state.com or contact Amy Button Renz at 800-600-ALUM (2586) or 785-532-5050 with questions or for more information. n

| GoodNews | Graduating seniors and graduate students

say farewell to their last days as students at the annual Grad bash hosted by the

K-State Alumni Association.

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Gifts back the ’CatsBy Marisa Larson

K-State Athletics is setting the campus abuzz this fall —

there’s the new basketball training

facility, the football and volleyball teams are playing, and work is under way on the football stadium’s West Stadium Center. Supporters who give of their time and money helped make all of this possible. Donors who give to the Ahearn Fund are supporting scholarships, academic services, sports medicine, equipment and travel as well as supporting capital enhancements, attracting and retaining outstanding coaches, and supporting recruiting efforts with a national reach.

The National Leadership Circle of the Ahearn Fund is a comprehensive program for K-State’s top level of annual donors to athletics. There are more than 300 members spread across 19 states. Of the $13.4 million

total giving to the Ahearn Fund in 2011–12, 43 percent came from the generous support of National Leadership Circle members. “We give to the Ahearn Fund to provide support for our athletic teams so they can be competitive in the Big 12 and nationally,” said Jerry and Deb Braden of Manhattan, Kan. “It’s important for K-State academically and the city of Manhattan economically for Kansas State to be competitive in sports. When you are competitive in the Big 12 and nationally, we feel it brings recognition to Kansas State University and helps increase enrollment.”

K-State alumni Gib and Brenda Compton of Wichita, Kan. contribute to K-State athletics and the university for the impact scholarships will have on the student athletes. “Neither of our parents attended college, but a good education was very important to them,” Brenda said. “They sacrificed and worked hard to ensure that their children could attend

college. Scholarships are a way for us to give back and help someone else have those college experiences and continue the giving for the future.” Besides funding scholarships, the Comptons also give of their time by leading the Wichita Catbacker club. “K-State support is exemplified best during the annual Catbacker tour, and this past year was one of the best ever with more than 7,000 Wildcat fans in attendance, hearing from terrific K-State coaches and student-athletes,” said KSU Athletics Director John Currie. “It’s a great cooperative venture between local Catbacker groups, the K-State Alumni Association and K-State Athletics, and each year the Catbackers make a significant contribution to the Ahearn Fund, K-State’s national fund for student-athlete excellence.”

How you can helpIf you would like to support K-State Athletics by contributing to the Ahearn Fund, please visit www.ahearnfund.com or contact Chad Weiberg at 785-532-6901 or [email protected]. n

What’s so special about K-State Proud?Just about everything! K-State Proud leaders have taken the simple idea of involving students in philanthropy and turned it into an award-winning, successful and sustainable philanthropic effort. This student-led, nationally recognized fundraising campaign is guided by members of the K-State Student Foundation. All student campaign donations establish Student Opportunity Awards for fellow K-State students. In the first six years of the campaign, students have established a culture of philanthropy by raising more than $550,000 for their peers who are struggling financially.

So, what’s so special about K-State Proud? Students who are part of the 2013 campaign planning team shared their thoughts.

“K-State Proud embodies the unparalleled sense of community that exists at the university. To have students donate over half a million dollars in the past six years to assist fellow K-Staters exemplifies the strength of this bond.” — Javier Lopez, San Francisco

“What makes K-State Proud so special is the opportunity it gives for students to help each other. The campaign is a testament to the meaning of ‘K-State family’ and shows how passionate K-State

students, faculty, and alumni are about making a difference in the lives of others.” — Sarah Swenson, Greeley, Colo.

“Student Opportunity Awards represent the student body’s annual commitment to philanthropy. These awards have helped more than 265 students have the opportunity to graduate from K-State.” — Chris Kellenbarger, Derby, Kan. n

Javier Lopez, who is a co-chairman of this year’s K-State Proud campaign, talks with new students at K-State’s Week of Welcome.

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| GoodBye |

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Anib with other Fulbright Scholars visiting the pyramids of Teotihuacan during orientation in Mexico.


Ariel Anib has always been a planner. When she arrived at K-State orientation as a freshman, she not

only had a four-year plan, but also a 10-year plan and a 25-year plan. But as she progressed at K-State, all those plans evolved into a mission. “When I got to college, I started to understand the value of service,” she said. “It changed my perspective.”

In between a full schedule of classes, several part-time jobs and numerous campus involvements, including being part of K-State’s Developing Scholars Program, Anib brought her passion for the prevention of human trafficking to the forefront of the student body’s attention by organizing the Stop Slavery Summit, a three-day event put on by more than 40 volunteers with 200 people participating.

After graduation in May, Anib began the next chapter of her life: as a Fulbright Scholar serving in Mexico, a country she has been passionate about since high school. She is teaching English at the Tecnológico Superior in Guanajuato while also volunteering with women’s domestic violence groups both in the city and in rural areas. “Providing equal access to education, such as teaching English, fights poverty and prevents human trafficking,” she said. “I just see it all as so connected.”

And that’s not all she sees as connected. Anib is keenly aware of how the scholarships she received helped her not only as a student, but now as a recent graduate with big dreams. Thanks to scholarships, she was able to graduate without a large student loan burden, which allows her to make career choices “based on passion, not a paycheck.”

“I’m going to Mexico with open hands and no plans,” she said before leaving. “God has prepared my work in advance.”

How you can helpTo learn more about how you can help support student scholarships, contact Shane Giese, senior vice president of development, at 785-532-7574 or [email protected]. n

Recent K-State graduate and Fulbright scholar Ariel Anib is teaching at the Tecnológico Superior in Guanajuato, Mexico. Scholarships, including the John Thurow Hill Memorial Award for outstanding sociology and anthropology students, the Chester E. Peters Scholarship for Student Development and the K-State Hero Award, helped her thrive at K-State.P

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Passion for service



Dear friends:

What a privilege it is to express our gratitude to the alumni and friends whose generosity resulted in $121 million in philanthropic gifts and commitments to Kansas State University in the fiscal year that ended June 30, 2012. This is a new milestone for fundraising activity, surpassing the previous record of $107 million that was set last year.

K-State alumni and friends are devoted to helping the university grow and thrive. The university’s bold vision to become a top 50 public research institution by 2025 is drawing favorable response throughout the university community. Every college and unit has aligned their goals to help move this vision forward and progress is being made.

It’s an exciting time in the life of K-State. The volunteers and staff of the KSU Foundation are honored to have the opportunity to work with you, our dedicated alumni and friends, to help you support your K-State passion. On behalf of the students, faculty and staff of K-State, we thank you for the time, talent and treasure you have given to ensure K-State’s bright future.

Curt Frasier, chairmanKSU Foundation Board of Directors

Duane Cantrell, chairmanKSU Foundation Board of Trustees

Fred Cholick, president and CEOKSU Foundation

2012

An

nual

Rep

ort

Curt Frasier

Duane Cantrell

Fred Cholick

The KSU Foundation: Advancing K-State through philanthropyOur missionThe mission of the Kansas State University Foundation is to secure and prudently manage private gifts in support of Kansas State University and foster a culture that unites philanthropic desires with university priorities.

Our visionThe Kansas State University Foundation is helping to build the world’s finest land-grant university.

Our valuesRespect, diligence and integrity guide our interactions, decisions and work.

Operating principlesWe will be guided by best practices in donor-centered fundraising.

We will promote and demonstrate the value of philanthropy to K-State.

We will dedicate ourselves to providing a high level of service.

We will engage the university, K-State Alumni Association and K-State Athletics in fulfilling our mission.

We will engage volunteers in fulfilling our mission.

We will value the role of each employee and help each employee achieve their full potential.

We will represent the KSU Foundation in a professional manner.

We will work as a team, promoting and valuing interactive work between our departments.

We will be guided by accurate information and data that is focused on donor needs.

We will operate in a fiscally responsible manner.

We will manage contributions in a fiscally responsible manner.

We will work with our university partners to ensure adherence to donor designations.

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Fiscal year highlights• the number of donors grew to 51,400,

up from 44,700 the year before.

• in its inaugural year, more than 5,000 alumni and friends were recognized as part of the 1863 Circle, established to recognize leadership annual donors. their combined contributions exceeded $40 million. (see pg. 14)

• the student-led K-state Proud campaign completed its sixth year with a grand total of $550,000 raised for student opportunity awards. (see pg. 19)

• thirteen gifts of $1 million or more were received.

• Donors established 92 new scholarships and four professorships and chairs.

• a $5 million expansion and renovation of Justin hall was completed, funded entirely by philanthropic contributions. (see pg. 6)

KSU Foundation Board of DirectorsAs of June 30, 2012

A volunteer board of trustees governs the foundation. The trustees elect a 15-member board of directors that meets quarterly to consider strategic and policy issues, and is authorized to act on the trustees’ behalf. Directors, along with additional trustees, also serve on committees to provide guidance and oversight to foundation staff.

Committee reports, as well as a listing of trustees, can be found on our website: www.found.ksu.edu/trustees.

John AllenLeawood, Kansas

Janet AyresScottsdale, ArizonaSecretaryBoard of Trustees

Rand BerneySouthlake, Texas

Lee BorckManhattan, Kansas

Charlie ChandlerWichita, Kansas

Randy CoonrodWichita, KansasVice ChairmanBoard of Trustees

Sharon EversSt. Joseph, Missouri

Curtis FrasierBeloit, KansasChairmanBoard of Directors

Mike GossWestport, Connecticut

Carl IceWestlake, Texas

Stephen LacyDes Moines, Iowa

Kevin LockettLeawood, KansasTreasurerBoard of Trustees

Gen. Richard Myers (Ret.)Arlington, VirginiaVice ChairmanBoard of Directors

Amy Button RenzManhattan, Kansas

Bill SanfordNaples, Florida

Ex OfficioFred CholickPresident and CEOKSU Foundation

John CurrieDirector of AthleticsKansas State University

April MasonProvost and Senior Vice PresidentKansas State University

Pat KoonsPresidentLivestock and Meat Industry Council

Kirk SchulzPresidentKansas State University

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2012 Annual Report

Outright gifts are given in the form of cash, securities or gifts-in-kind that the university can put to immediate use. Pledges are commitments for specific amounts that will come to the university in a specific time frame, usually within five years. Deferred gifts are commitments made through a variety of estate planning instruments, such as bequests, annuities and trusts that will be realized by the university at some point in the future.

Total annual gift activity 2003–2012Dollars in millions

Outright gifts

Pledges

Deferred

How donors designated $121 million in outright gifts, pledges and deferred gifts

Who is giving to K-State?

54.04%Alumni

22.69%Friends/parents/staff

17.87%Corporations

5.4%Foundations$25.4

millionFaculty and

administrative support

$6.2 millionAcademic facility improvements

$30.6 millionScholarships

$22.9 millionAcademic support

$36.1 millionAthletics and

athletic facilities

$25

$50

$75

$100

$125

FY12FY11FY10FY09FY08FY07FY06FY05FY04FY03


2012 Annual Report

A closer look at this year’s outright gifts of $76 million$16.1 millionof the outright gifts were endowed. Distributions from endowed funds do not begin until earnings are available, usually in the year after the gift is received.

$59.9 millionwas expendable

and available immediately to the university. Expendable funds are not always

fully spent in the year they

are received.

The portion of gift activity that was given in outright gifts was $76 million. The remainder of the $121 million — $14 million in pledges and $31 million in deferred gifts — comes to K-State at a later time. Let’s look more closely at the $76 million in outright gifts. Of that, $16.1 million was endowed and $59.9 million was expendable. Distributions from endowed gifts do not begin until the endowment minimum of $25,000 is reached within an individual fund, and earnings are available, usually in the year after the gift is received.

The $59.9 million is available to the university immediately, but these funds are not always fully spent in the year they are received. A good example of this is an expendable contribution that is made to support a facility

Funds available to K-State in FY 2012: $64.8 million

$8.9 millionwas from distributions from endowed funds established in previous years.

$55.9 millionwas from expendable funds.

The most important point to remember about dollars made available to K-State in any given year is that the amount does not directly correspond to the outright gifts in the same fiscal year. Here’s how it works: $64.8 million was available to K-State in fiscal year 2012. This number comes from expendable funds established in the current and previous fiscal years, as well as distributions from endowed funds established in previous fiscal years.

$64.8

$48.3 $46.5

$54.8

$47.5

$10

$20

$30

$40

$50

$60

$70

FY12FY11FY10FY09FY08

Each year, distributions from endowed funds established in previous years, plus expendable funds established in the current and previous fiscal years, are available to K-State for use according to donor designation. The university does not always expend the total amount available due to the status of current building projects, or the ability to fulfill donor designations within the year the funds are available.

Funds available to K-StateDollars in millions

Academic facility improvements

Faculty and administrative support

Athletics and athletic facilities

Academic support

Scholarships

project on campus. The entire contribution may come in one year, but the construction timeline takes place over more than one year, so the full contribution may take two or more years to be spent.


2012 Annual Report

Endowment pool ends year at $328 millionFiscal year 2012 was a volatile period as investors continued to move between risk on and risk off in reaction to U.S. and European political inactions and central bank actions. It was a challenging environment for an aggressive, highly diversified, actively managed investment pool. Active investment managers do extensive research to identify well-positioned and well-managed companies to buy and the opposite type to short. When investors jump in and out of the markets, most stocks will move up or down together, nullifying the work managers do to add value.

The Sustainability Task Force from 2010 had requested an effort be made to reduce exposure to the university and foundation budgets from endowment drawdowns. The Asset Management Committee and staff conducted extensive research to identify and implement a strategy that is designed to limit a downward move in the portfolio market value to not more than 20 percent. Implementation of the strategy began in the fourth quarter of the fiscal year.

The Asset Management Committee and staff continue to upgrade the quality of strategies and managers used in the management of the endowment pool. The process is a continual analysis of the risk-adjusted returns provided to the portfolio, and as opportunities arise they are evaluated in the context of their impact upon the entire portfolio.

The endowment pool definedThe endowment pool is a combination of endowed accounts designated as permanent, quasi and term endowments as well as long-term investments of other foundation pooled funds and university affiliates. Participants own shares in the pool and receive distributions that provide programmatic support. The pool pays all its investment expenses and reports performance on a net-of-expenses basis.

Investment governanceThe Asset Management Committee, a committee of the Board of Directors, is responsible for establishing the policies and procedures that govern foundation asset management, subject to board approval. The policies establish the

asset allocations of the investment pools and govern manager selection and portfolio re-balancing. Staff is charged with implementing the policies and reports results back to the committee and board. A table that graphically displays the decision-making authorities of all the parties involved in the investment function can be viewed at www.found.ksu.edu/investments/oversight.html.

Endowment pool asset allocationAs a response to the foundation’s global investment philosophy, the endowment-pool asset allocation is divided into four theme-based categories instead of traditional asset classes. The growth engine component, whose primary purpose is return

$100

$200

$300

$400

$500

$600

2012201120102009200820072006200520042003

Permanent endowments and other foundation assetsDollars in millions

Other foundation assets*

Endowment pool market value

* Other assets include real estate, trusts, pledges and closely held stock

Diversifying strategies 6.18%

Inflation hedge 14.45%real estate, commodities, energy

Deflation hedge 8.64%Fixed income

Overlay 10.16%

Endowment pool asset allocation

Global equities 60.57%

Global equities 4.48%

u.s. equities 2.88%

international equities 5.77%

emerging markets equities 12.69%

Private capital 19.58%

Distressed debt 4.86%

Long/short hedge funds 10.31%


2012 Annual Report

generation, contains long-only, long/short and private capital (venture capital, buyouts, international private capital and distressed debt) equity strategies. The diversifier component dampens portfolio volatility by utilizing strategies producing equity-like returns with low correlations to equities by accessing hedge-fund managers running arbitrage and trend-following strategies.

Since unexpected inflationary and deflationary events are significant risks to endowment pools, the portfolio contains inflation and deflation hedges. The inflation-sensitive component contains investments in real assets, such as real estate, timber, agricultural land, commodities and energy, which respond to inflationary pressures and provide liquidity during those events. The deflation hedge contains fixed-income investments, such as government and high-grade corporate bonds and cash, to protect the portfolio against and provide liquidity during equity-market drawdowns.

Endowment pool performance analysisThe performance graph (above) provides a visual of the endowment-pool performance over multiple periods and as compared to the pool’s custom benchmark and the pool absolute objective expressed in the 10-year return period. While the portfolio return exceeded the custom benchmark in the one and three-year

periods, over longer periods the pool has underperformed its benchmark. During the credit crisis of 2008–2009, when most investments became correlated, the diversifying strategies in the portfolio failed to provide adequate downside protection. Then, during the liquidity-driven recovery of fiscal year 2011, when investors wanted exposure to the markets with little regard for company quality, the pool again underperformed despite an excellent return on an absolute basis.

The absolute objective graph (below) tracks the endowment pool’s progress in achieving its absolute objective of maintaining the purchasing power of the endowed accounts over time by producing returns equaling or exceeding investment management expenses, plus total distributions, plus

inflation. The purple line represents the historic book value of contributions and the black line represents those contributions inflated by the annual CPI. The blue line represents the market value of the endowment pool, as it has gone from an excess over inflated contributed value as recently as 2007 to an underwater status in 2009 and continuing into this year.

Additional informationPerformance data is updated on the investments portion of the KSU Foundation website approximately six weeks after the end of each quarter; policies are updated as changes occur. See www.found.ksu.edu and select “Our financials,” then “Investments.”

(1.65)%(1.66)%

8.98%8.38%

0.56%

2.81%

6.56% 6.91%

8.44%

-2%

2%

4%

6%

8%

10%

10-year5-year3-year1-year

$100

$150

$200

$250

$300

$350

$400

$450

6/30/126/30/116/30/106/30/096/30/086/30/076/30/066/30/056/30/046/30/036/30/02

Endowment pool absolute objectiveDollars in millions

Endowment pool performance analysisAs of June 30, 2012

The relative objective of the endowment is to seek competitive investment performance compared to appropriate capital market measures, such as securities indices.

The absolute objective of the endowment is to seek an average total annual real return equal to or exceeding the distribution policy rate; specifically the CPI plus the distribution policy rate. This objective shall be measured over annualized, rolling 10-year time periods. The intent of this objective is to preserve, over time, the principal value of assets as measured in real, inflation-adjusted terms.

Endowment market value 6/30/12:

Contributions historic book value + CPI (qtr lag) $447,839,942

Contributions historic book value $346,719,108

Endowment market value $328,432,251

Endowment pool Relative objective Absolute objective


Kansas State University FoundationConsolidated Statement of Financial Position

As of June 30, 2012

AssetsCash and cash equivalents $39,662,259

Investments 447,687,890

Pledges receivable — net of allowance and discounts 38,929,240

Receivables from estates 1,688,425

Loans receivable 434,014

Property and equipment 4,031,938

Accumulated depreciation (2,531,829)

Golf course property and equipment, net of accumulated depreciation 8,152,754

Cash surrender value of life insurance policies 4,311,531

Other assets and accrued investment income 2,569,977

TOTAL ASSETS $544,936,199

Liabilities and Net AssetsLiabilities

Accounts payable, deposits and other liabilities $1,994,843

Accrued liabilities 1,955,805

Assets held for others 8,389,756

Unitrust and annuity liabilities 20,188,011

Long-term debt 3,065,599

TOTAL LIABILITIES 35,594,014

Net Assets

Unrestricted net assets 50,673,340

Temporarily restricted net assets 188,683,534

Permanently restricted net assets 269,985,311

TOTAL NET ASSETS $509,342,185

TOTAL LIABILITIES AND NET ASSETS $544,936,199

Financials2012 Annual Report


Kansas State University FoundationConsolidated Statement of Activities

For the Year Ended June 30, 2012

2012 Total 2011 Total Net Change

Revenues, Gains and Other SupportContributions $74,915,159 $80,597,234 $(5,682,075)

Investment income 1,296,795 3,632,070 (2,328,546)

Net realized and unrealized gains on asset transactions 5,483,084 55,926,592 (50,450,237)

Other support

Operational service charges, management fees and other 3,480,310 3,522,335 (42,025)

Receipts for grants, research, supplies, travel and other university departmental activities and funding allotments, etc. 3,940,853 4,245,591 (304,738)

Actuarial gain/(loss) on unitrusts and annuities obligations (159,921) 1,959,738 (2,119,659)

Total Revenue, Gains and Other Support 88,956,280 149,883,560 (60,927,280)

Expenses and SupportDirect University support

Scholarships and other student awards 11,271,543 9,136,317 2,135,226

Academic 5,113,931 5,442,469 (328,538)

Administrative — Faculty and student support 41,837,621 30,519,260 11,318,361

Capital improvements 6,596,052 2,449,238 4,146,814

Subtotal 64,819,147 47,547,284 17,271,863

Investment — Loan interest expense and write-off 231,367 352,020 (120,653)

KSUF Administration 4,587,604 4,206,405 381,199

KSUF Fundraising 6,366,890 6,212,199 154,691

Total Expenses and Support 76,005,008 58,317,908 17,687,100

CHANGE IN NET ASSETS 12,951,272 91,565,652 (78,614,380)

NET ASSETS, BEGINNING OF YEAR 496,390,913 404,825,261 91,565,652

NET ASSETS, END OF YEAR $509,342,185 $496,390,913 $12,951,272

2012 Total 2011 Total Net Change

Total Unrestricted Assets 50,673,340 51,878,978 (1,205,638)

Total Temporarily Restricted Assets 188,683,534 180,470,222 8,213,312

Total Permanently Restricted Assets 269,985,311 264,041,713 5,943,598

Total Net Assets 509,342,185 496,390,913 12,951,272

The Consolidated Statement of Financial Position and the Consolidated Statement of Activities are excerpted from the Kansas State University Foundation’s 2012 financial statements, which were audited by BKD, LLC. For a complete copy, please view online at www.found.ksu.edu or send a request to the Controller, KSU Foundation, 2323 Anderson Ave., Ste. 500, Manhattan, KS 66502-2911.

2012 Annual Report

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the year 2013 marks a milestone for Kansas state university. We are celebrating 150 years of excellence with a birthday bash. a celebration for america’s first land-grant institution and Kansas’ first public university — its past, present and future.

We invite our entire family to celebrate our achievements, the Wildcat spirit and the triumph of Kansas state university.

Join us for a kickoff celebration February 14–17, 2013:Thursday, February 14, 2013Kick-off event in ahearn Field house for the university and Manhattan and regional communities. Get your birthday cupcake and Call hall ice cream while perusing the sesquicentennial exhibition, which will feature displays from colleges, units and other campus groups.

Friday, February 15, 2013Gala one Fifty: Dance the night away at the Manhattan Convention Center.

Saturday, February 16, 2013athletics event: honor K-state’s roots and celebrate Founder’s Day with K-state men’s basketball at Bramlage Coliseum.

Sunday, February 17, 2013star attraction: Major headliner to close out the weekend with a special McCain auditorium event. to be announced!

k-state.edu/150

2012Annual Report

inside

Scan this QR code with your smart phone to visit the K-State 150th anniversary website.

Good for K-State Magazine Fall 2012

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