|
|
|
|
Subj: Leadership Update by George Watt ' 73 Here is the most recent Leadership Update issued by George Watt ' 73, President and CEO of the USNA Alumni Association. Leadership
Update If it seems like it has been way too long since the last Leadership Update, it has. Our goal has been to publish one every two months (or so). However, as Skid and I worked together on this first edition of 2003, it seemed like every week there was always "one more thing to add." To prevent sending out a 20-page epistle, I've decided to provide just a few very important, and very germane, items this time and come back to you with another edition in the near future. Thanks, as always, for giving Leadership Update wide distribution among our alumni, members, parents and friends. Our last update, in late 2002, focused on stewardship, our financial operations, and the stadium project. In this issue I want to update you on those subjects and provide a campaign status report because these topics are so important to us. For our next issue, I want to review with you how we are continuing to develop our communications capabilities (such as this update). Our continuing objective is to keep you and all of our constituents informed and educated so that you are better prepared in your role as advocates for the Naval Academy and the Brigade of Midshipmen. The State of the Alumni Association At the December Board of Trustees' meeting, I provided the Board with a broad, comprehensive report on the Alumni Association. It is currently posted on our website http://usna.com/About/BOT/2002/Dec/PresRemarks.htm Every one of us is acutely aware of the incredible challenge presented over the last two years (and continuing thus far this year) with the current economic and market environment. These things, now coupled with the war in Iraq, continue to create much financial uncertainty, which impacts our operations and plans. I thought it might help for board and class-chapter-club leadership to have a perspective of what is going on at other alumni associations across the country. How Do We Compare? Membership Organizational Structure Most bemoan the difficulty of raising funds in a challenging market - especially unrestricted gifts, which are our lifeblood. In 2002, the Foundation raised $7.3 million in unrestricted gifts for current operations, which represented more than 25% of total private gifts. That is unprecedented in our industry. Staffing The Power of Vision Financials In spite of the economy, our alumni and friends have been extraordinarily responsive to the Leaders to Serve the Nation campaign and supportive of their respective classes, chapters and clubs. The January-February Shipmate provided incredible detail and appropriate visibility on our audited financials in order to emphasize the seriousness in which we view the stewardship of the funds for which we are accountable. I could not be more pleased with the results of our annual audit. Hank Sanford and the finance-treasury team led by Gerrie Farmer have worked diligently. The "unqualified audit opinion" from KPMG was well deserved. Additionally, our senior leadership team continues to take its role as stewards of our precious resources (financial and human) very seriously. In a declining stock market environment, it is critical that we regularly review our budget to ensure that we comply with direction the two Boards have set, and focus on what is necessary to fulfill our mission. It's a continuing balancing act of meeting priorities with available resources. I do not think our alumni and general membership would want it any other way. We are currently preparing a budget for the Fiscal Year 04 that will begin on 1July03. This budget will be reviewed with the joint finance committee in late April and presented to both boards for approval in early May. It will reflect eroding revenues from investments, softening of the fee-based services market, and a new, strategic view of staffing. Together, we must create a financial model that not only works in good times, but also sustains us through the bad. Despite the economic gloom and doom of nearly three years, we have managed to add another $4.6 million in net assets during the first half of FY03. Although the financial seas remain confused, our resolve to weather this challenging environment is unwavering. We are focused. It's our highest priority. The Naval Academy Campaign: Leaders to Serve the Nation Our donors remain generous. While gifts from alumni, and absolute dollars of donations, have fallen everywhere else, we had another record year in fund-raising during calendar year 2002. At year-end, the Campaign reached a total of $138.9 million in commitments against the $175 million goal. $88.5 million of the total raised (64%) has been paid; $50.4 million is in the form of outstanding pledges. As of this writing, total campaign contributions toward our ultimate goal are now $ 144.4 million. Thank You! During 2002, the Foundation received a record $28.3 million in total gifts, including $25.8 million in cash and securities and another $2.5 million "in-kind." In the fourth quarter of '02 alone, total gift receipts exceeded $11 million! That single quarter represents more than the "old" Foundation, Endowment Trust and Alumni Association raised in an entire year just four years ago!!! In the critical category of unrestricted gifts for current operations ("the Annual Fund"), the Foundation in 2002 registered nearly $7.3 million (as previously mentioned, another record, and bucking another national trend). Although the highest percentage of gifts received for the current campaign comes from Naval Academy alumni, the actual percentage of alumni who gave in 2002 (annual participation) was up only slightly (to 31%). Parent giving also saw a very modest increase in participation. This for me is the area where we have the most opportunity to improve. It is one of the few metrics where we lag our peer institutions (including West Point and Air Force). Therefore, we will make this an area of increased focus in 2003 and beyond for our staff and fund-raiser volunteers. Much of our attention in recent months has been appropriately centered on the $40 million stadium renovation objective. As of 2/28/03, documented commitments to the stadium project reached $18.2 million. As all who attended a home football game during the 2002 season know, Phase I of the stadium renovation - new seats, scoreboard, seating for the disabled and interior facelift - was completed last summer. Phase I cost $5.2 million and was fully funded by private gifts from the Campaign. Phase II of the stadium, projected to cost up to $14 million, will be completed in time for the 2003 football home opener, thanks to generous donors and pledge commitments along with the authorization by the Foundation Board of Directors to obtain a $6 million credit facility that provides the liquidity to complete this phase on time. Phase II improvements will literally transform the stadium. Careful attention is being paid to preserving and enhancing the memorial aspects of Navy-Marine Corps Memorial Stadium. With all of the above said, we still have much important stadium fundraising to do before we turn the corner on the project. In this regard, it is gratifying to report that numerous classes have stood up and accepted the challenge to raise funds for the stadium (KUDOS to the following for early commitments: 1951, 1953, 1955, 1956, 1960, 1962, 1966, 1967, 1971, 1981, 1982, and 1996). Other class leaders are considering joining the effort. We encourage every class to support the stadium by adopting a Class Arch, a Memorial Battle Arch or some other stadium naming opportunity as the sole or partial focus of their class (restricted) gift project. Please take an especially close look at the April Shipmate to learn even more about Navy-Marine Corps Memorial Stadium. If you need more information about this critical and strategic initiative, please let me know. If you want additional copies of the April Shipmate to share with your colleagues and other interested parties, let Skid know. You can have as many copies as we have left. This is important work. Every alum, parent, Navy fan and corporation should be given the opportunity to contribute. Final Thoughts . . . Once again, thank you for all that you have done and continue to do. As I rapidly approach my third anniversary as the President and Chief Executive Officer of our two great not-for-profit corporations I am mindful that much has been accomplished…but much remains to be done. The senior leadership team is committed to our vision and to our collective mission. Despite my earlier effusiveness regarding how we're doing compared to others, there is a lot we can learn and improve upon. We commit to you that we will always attempt to do the right thing…and, every now and then we hope to get things right. Keep your good ideas and recommendations coming in so that we improve in our communications and ensure you remain our most informed, educated and enthusiastic advocates. . . . And Prayers As Operation Iraqi Freedom intensifies, our thoughts and prayers are with our numerous graduates acting as leaders serving the nation at every level in the Naval Service. May God bless all of them, their loved ones and every armed forces' man and woman currently in harm's way. Go Navy! George Watt '73 |
|
**************************************** |
 |
*** Central Region: |