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Kentucky State University

Board of Regents Meeting

External Relations and Development Committee

October 24, 2014

Regent Charles Whitehead, Chairperson Regent LaVaughn Henry Regent Elgie McFayden Regent Travis Haskins

Mr. Hinfred McDuffie, Staff

KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents External Relations and Development Committee October 24, 2014 11:30 am - 12:15 pm Board Room – Academic Services Building Frankfort, Kentucky

MEETING INDEX

Section Page D1 Action Item: External Relations and Development Committee Meeting Minutes (July 25, 2014) 4 D2 Executive Summary Report 7 D3 Executive Contributions Report 9 D4 Capital Planning and Construction Report 12 D5 Communications Report 14 D6 Endowment Management Report 18 D7 Supplemental Responses 20 D8 Appendix 21

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KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents External Relations and Development Committee October 24, 2014 11:30 am to 12:15 pm Board Room – Academic Services Building Frankfort, Kentucky

AGENDA

• I.Call to Order
• II.Roll Call
• III.Opening Remarks
• IV.Approval of Minutes
• V.Executive Summary Report
• VI.Discussion
• VII.Adjournment

Regent Charles Whitehead, Chairperson

Mr. Hinfred McDuffie, Vice President for External Relations and Development

Regent Whitehead

Regent Whitehead

Mr. McDuffie

Mr. McDuffie

Agenda Item Background

D1

Background:

The minutes of the External Relations and Development Committee meeting of July 25, 2014, require approval in order to become an official part of the committee's records.

Recommendation:

That the External Relations and Development Committee approve the minutes of the July 25, 2014, meeting.

KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents External Relations and Development Committee July 25, 2014 8:30 am to 9:15 am Board Room – Academic Services Building Frankfort, Kentucky

MINUTES

Regent Charles Whitehead, Chairperson, called the External Relations and Development Committee meeting of the Kentucky State University Board of Regents to order at 8:30 a.m. on July 25, 2014. Regent Whitehead asked the secretary to call roll:

Travis Haskins LaVaughn Henry Elgie McFayden Not Present Present Present

Charles Whitehead

Present

A quorum was declared.

Mr. Bill Wilson, Associate Vice President for Development and Major Gifts, presented the Contributions Report.

Discussion

Regent Whitehead inquired about the percentage of alumni giving Mr. Wilson responded that 3.2 percent of the Kentucky State University alumni are contributing. The average rate for HBCUs across the nation is 7 percent and the average rate across all universities is 11 percent. Approximately 66 percent of KSU alumni have never made a contribution. The Council for Advancement and Support of Education (CASE) statistics show 40 percent of alumni not contributing as the national average. Regent Henry commented that this is not an anomaly to KSU. Many groups are looking to social media to attract younger constituents. Mr. Wilson gave a brief report regarding the National Alumni Association's Summer Weekend. Mr. McDuffie added that External Relations and Development also participated in a one and a half day retreat in support of the KSU Foundation.

Mr. Harold Hayes, Executive Director for Auxiliary Enterprises, presented the Auxiliary Enterprises report. Mr. Hayes presented information regarding the new vendor for the bookstore.

Regent Whitehead inquired about the number of students purchasing books online. Mr. Hayes reported that KSU has seen a decrease in sales due to more students purchasing books online. He also reported that the new vendor, Follett, matches competitors' lower/discounted prices when presented that information by students. Regent McFayden commented that he would like to see the bookstore move to a paperless process for adopting and ordering books.

Regent Whitehead inquired about revenue generated from the usage of campus facilities. Mr. Hayes responded that the reported revenue is generated from the outside community using the University's facilities. Regent Henry asked why the University did do not market its facilities. Mr. Hayes and Mr. McDuffie both responded that KSU traditionally does not compete with the local community.

Mr. McDuffie presented the Capital Planning report.

Ms. Felicia Lewis, Assistant Vice President for Communications and Publications presented the communications report. Regent Henry asked about the office's media strategy. Ms. Lewis responded that Communications uses a multi-level approach, including sending press releases, media relations, increased social media coverage and an enhanced website presence.

Mr. James Fereday, Fifth Third Bank Endowment Manager, presented KSU's investment report.

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Agenda Item Background

D2

Background:

N/A

Recommendation:

Informational

KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents External Relations and Development Committee October 24, 2014 11:30 am to 12:15 pm Board Room - Academic Services Building Frankfort, Kentucky

During the period of July 1, 2014, through September 30, 2014, Kentucky State University received contributions in the amount of $89,797 from 236 contributors – alumni, employees, University friends, corporations, foundations and organizations. The total amount received to date for Uniting Generations . . . Securing Futures – A Capital Campaign for Kentucky State University is $5,889,110.

Capital Planning and Construction has six major projects in various stages of completion:

• Alumni Stadium Office Building Roof Replacement – 100 percent complete
• Cheaney Legacy Plaza – 95 percent complete
• Pedestrian Bridge over US 60 – 10 percent complete
• Interpretive Center, KSU Downtown Annex – 0 percent complete
• Intersection Realignment, Langford and Douglas Avenue – 10 percent complete
• Utility Relocation for Pedestrian Bridge – 40 percent complete

From July 1 through September 30, 2014, the University was covered in 207 newspaper articles in Kentucky. In addition, the advertising equivalency dollar amount (or cost saving) for newspaper coverage of KSU was $2,944,820. The University also was covered in 149 television news stories reaching a Nielsen audience of 3,463,904 for a total ad equivalency of $40,209 or total publicity value of $120,937. There were 29 messages posted on KSU's electronic message board, 155,440 hits on KSU's website and 26 press releases sent to the media.

Agenda Item Background

D3

Background:

N/A

Recommendation:

Informational

CONTRIBUTIONS REPORT FY2015 First Quarter

July 1, 2014 – September 30, 2014

Students Assisted from Private Gift Donations Number of Awards 339 Total Funds Awarded $219,305.85 Average Award $646.92

*Annual Fund not initiated.

CAPITAL CAMPAIGN GIVING

Agenda Item Background

D4

Background:

N/A

Recommendation:

Informational

Capital Projects Update

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Agenda Item Background

D5

Background:

N/A

Recommendation:

Informational

Informational Item

COMMUNICATIONS REPORT July 1, 2014 – September 30, 2014

Source: Media Gofer

Source: Media Library, Inc.

Quarter To Quarter Coverage

Newspaper Coverage in Kentucky

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Television News Coverage in Kentucky

Marketing STRATEGIC / MARKET IMPACT

*Reach means the percentage of population who saw the commercial.

Publications

(Artwork and printed materials)

• Development/Alumni Printed Materials – Materials produced for two campaigns/events – 6
• Printed materials produced for University events – 39
• Communication pieces

President's Letter to Campus Community (including Campus Gem) – 6

Good News Newsletter – 2

○ Hoofbeats - 1

Program/Departmental Newsletters & Brochures – 11

Marketing and advertisement pieces produced – 20

• Designs for general University operations – 7
• Business cards produced – 36

ELECTRONIC COMMUNICATIONS

Electronic message board postings – 29 messages

Press Releases – 26

Facebook – 159 posts

Twitter – 251 tweets

Instagram – 47 posts

YouTube - 7 videos

Website: Number of Hits: 155,440

Top 10 Locations Engaged in Kentucky Region: Frankfort, Lexington, Louisville, Bowling Green, Shelbyville, Lawrenceburg, Georgetown, Richmond, Nicholasville and Glasgow.

Top 10 Locations Engaged in the U.S.: Kentucky, Tennessee, Georgia, Ohio, Illinois, Indiana, Michigan, Texas, California and Florida.

27 Homepage News Posts

National and International Media Coverage of President Burse regarding Pay/Pay It Forward: 115 news stories

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Agenda Item Background

D6

Background:

See Appendix

Recommendation:

Informational

KENTUCKY STATE UNIVERSITY DIVISION OF ADMINISTRATION, EXTERNAL RELATIONS AND DEVELOPMENT OFFICE OF THE VICE PRESIDENT

1. Capital Campaign Report showing actual dollars received, dollars pledged and in-kind donations to campaign

2. Report on actual net revenue from President's Gala 2010 - 2014

3. Strategies with measurable activities and outcomes related to completing campaign

OBJECTIVES

STRATEGY

4. Goals for Alumni Affairs

Increase alumni donors

FY 2015 FY 2016 FY 2017 FY 2018

+2% over base +2% over base +2% over base +2% over base

Establish a formal Student Alumni Association on campus by June 30, 2015

Supplemental Response

D7

Progress to Date Downtown Annex Building (KSU Interpretive Center)

The Downtown Annex building has a new roof. All Windows are new. Exterior stone has been tuck pointed. The interior first floor has been painted. First floor has new carpet and terrace has been cleaned. The boiler has been put in operation with some heat units working. The elevator works. Basement area has been cleaned after the flood.

• Land Grant has worked with the firm Solidlight out of Louisville to develop a plan for the Kentucky River Interpretive Center to be housed on the main floor of the KSU Downtown Annex.
• A charrette was held by the firm to assess the overall concept and objectives of the University in planning for the KY River Interpretive Center. Written input was gathered as well as several follow up meetings with an internal committee.
• Based on this input, Solidlight developed a Phase I plan/design. This copy was reviewed and approved by the KSU internal committee. A hard copy is available for review.
• The firm was then contracted to develop a Phase II design, cost estimate, and timeline. That plan is also available. The timeline was developed and circulated. The approximate cost as designed was $1.2 million. That is display only and does not include needed building improvements and modifications.
• Later meetings between KSU and Capital Construction of the State (DECCA) came to the conclusion that the project would have to be bid out as a turnkey job. That was in June 2014.
• Land Grant has submitted all requested documents by NIFA. The University is currently waiting for the Facility Grant funds to be released by NIFA and to start the internal (partial) renovation of the building and construction of the Kentucky River Exhibit.

Rosenwald Center for Families and Children

Rosenwald currently has 32 children enrolled. The Center cannot enroll more students until more staff is hired. A recommendation has been made for two teachers and two teacher assistants. The Center is waiting for the individuals to be offered the job and hired. This should help get families off of the waiting list and get the Center closer to the operating capacity of 90 students. Some of the positive attributes of the Center include the following:

• Governor’s Office of Early Childhood Visit
• Current 3 STAR accreditation and future NAEYC accreditation
• Very high ERS (environmental rating scores) for classrooms
• Candidate for the early Head Start collaboration grant

FIFTH THIRD BANK INSTITUTIONAL INVESTMENT MANAGEMENT SERVICES

1

FIFTH THIRD BANK | INVESTMENT MANAGEMENT GROUP

Asset Allocation & Policy As of August 31, 2014

2

FIFTH THIRD BANK | INVESTMENT MANAGEMENT GROUP

*45% MSCI World Index, 35% Barlcays Aggregate, 10% CPI, 5% S&P 500 US REIT, 5% BoAML 91

Fiscal YTD Annualized

YTD 2014 1 Yr 3 Yrs 5 Yrs 10 yrs

Equity 1.77 7.21 21.86 18.08 15.25 8.79

MSCI World Index 0.57 6.79 21.10 15.48 12.35 7.62

Fixed 0.28 3.78 5.47 3.44 4.92 3.97

Barclays Aggregate 0.85 4.81 5.66 2.97 4.48 4.72

Barclays Int. Gov/Credit 0.48 2.74 3.55 2.15 3.70 4.12

Real Estate 2.83 18.76 21.52 12.42 na na

S&P 500 US REIT 2.86 20.30 22.65 13.26 17.53 7.57

Alternatives 0.92 3.82 8.80 na na na

CPI -0.21 2.06 1.70 1.64 1.96 2.30

HFRX Absolute Return 0.16 1.99 3.96 1.88 0.51 0.09

ML 91 Day 0.00 0.03 0.05 0.07 0.10 1.61

Total Account Net 1.16 5.41 13.78 11.01 10.13 6.50

Total Account Gross 1.23 5.72 14.30 11.52 10.65 6.98

Blended Benchmark* 0.71 6.16 12.86 9.18 8.70 6.46

Overall Performance As of August 31, 2014

3

FIFTH THIRD BANK | INSTITUTIONAL INVESTMENT MANAGEMENT SERVICES

1

FIFTH THIRD BANK | INSTITUTIONAL INVESTMENT MANAGEMENT SERVICES

2

Investment Management & Charitable Services

FIFTH THIRD BANK INVESTMENT MANAGEMENT GROUP

3

Asset Allocation & Policy

FIFTH THIRD BANK | INVESTMENT MANAGEMENT GROUP

4

*45% MSCI World Index, 35% Barlcays Aggregate, 10% CPI, 5% S&P 500 US REIT, 5% BoAML 91

Overall Performance

FIFTH THIRD BANK | INVESTMENT MANAGEMENT GROUP

5

Old Composite Index: 58% S&P 500, 37% Barclays Gov/Credit, 5% ML 91 Day Treasury

New Composite Index 45% MSCI World, 35% BC Aggregate, 10% CPI, 5% US REIT's, 5% ML 91 Day Tres. (updated January, 2012)

Historical Performance – Calendar Year

FIFTH THIRD BANK | INVESTMENT MANAGEMENT GROUP

6

Data collected from the National Association of College & University Business Officers (NACUBO) website.

*NACUBO study referenced is for Endowments of $25 Million or Less

Endowment Comparison – Fiscal Year

FIFTH THIRD BANK | INVESTMENT MANAGEMENT GROUP

7

FIFTH THIRD BANK | INVESTMENT MANAGEMENT GROUP

8

Notes: ___