1 IVY PLUS DEVELOPMENT OFFICERS John E. Pepper, Jr. September 19, 2005

2 Importance of the leading private schools of higher education and the role of Philanthropy in delivering our mission. Importance of the leading private schools of higher education and the role of Philanthropy in delivering our mission.

3 Contributions which our institutions and our graduates are making are possible because of the tremendous growth in private philanthropy. Contributions which our institutions and our graduates are making are possible because of the tremendous growth in private philanthropy.

4 There will be a great need for increased private philanthropy to continue to better fulfill our mission. There will be a great need for increased private philanthropy to continue to better fulfill our mission.

5 Our universities face increased competition in fulfilling our Missions. Our universities face increased competition in fulfilling our Missions.

6 Operating Revenue ($ in Millions) $ Growth % Annual Growth Endowment Income % Income (excl. Grants and Contracts) % Endowment % of Total Income (excl. G&C) 22%42% Income All Funds (incl. Grants and Contracts) % Endowment % of Total Income15%30%

7 Tuition, Room and Board (Net of Aid) ($ in Millions) $ Growth % Annual Growth Tuition, Room and Board (Net of Aid) %* *+2.3% for 2000 to 2004

8 Student Aid by Source of Funds $ in Millions (% of Totals) General Appropriations45 (49%)31 (18%) Endowment19 (20%)90 (54%) All Other Sources30 (31%)46 (28%) Total Funds94 (100%)167 (100%)

9 Continued need for financial aid to expand the number of students who can afford our universities’ education. Continued need for financial aid to expand the number of students who can afford our universities’ education.

10 The expansion of research and programs of study into new areas critical to the improvement of society. The expansion of research and programs of study into new areas critical to the improvement of society.

11 The need to fully fund replacement of our facilities. The need to fully fund replacement of our facilities.

12 “ Don’t you already have enough money? Look at the size of your endowment. It’s huge. Are you really spending wisely?” “ Don’t you already have enough money? Look at the size of your endowment. It’s huge. Are you really spending wisely?”

13 “I’m not seeing the kind of management discipline that I see in business being applied to universities to make every dollar go further.” “I’m not seeing the kind of management discipline that I see in business being applied to universities to make every dollar go further.”

14 Giving early matters a lot. Giving early matters a lot.

15 Engage alumni where they live.

16 Get as many graduates as possible to reunions. Get as many graduates as possible to reunions.

17 Look for ways to involve graduates on advisory committees and other activities on campus. Look for ways to involve graduates on advisory committees and other activities on campus.

18 Make the “stop by” visits of Development Officers in local communities meaningful. Make the “stop by” visits of Development Officers in local communities meaningful.

19 As people start to reach my age, emphasize planned giving. As people start to reach my age, emphasize planned giving.

20 Never forget to make the case why private institutions of higher education like ours are vital. Never forget to make the case why private institutions of higher education like ours are vital.

21 Never forget the power of a sincere, handwritten, well-timed “thank you” note from the President of the University. Never forget the power of a sincere, handwritten, well-timed “thank you” note from the President of the University.