Dear Pat,

Two years ago, you posted a letter from Bart Holaday '65, in which he introduced the USAFA Endowment to the graduate community. In that letter, Bart explained that the Endowment represented a unique charitable model, which, due to a generous operating endowment funded by the organization's Founding Directors, allowed 100 percent of any donation to go to the charitable purpose designated by the donor without any fees or deductions to cover the Endowment's operational expenses.

At the time, however, in some quarters, the Endowment remained a subject of controversy. Some questioned the sustainability of the Endowment's financial model, which was dependent upon the operating endowment, along with annual operating contributions, to defray ongoing fundraising expenses. Others believed that the Endowment's independent existence, separate and apart from the AOG, represented a threat not only to the AOG's long-term financial viability, but also to its influence and autonomy. Even more troubling, however, institutional frictions contributed to a competitive relationship between the two organizations, which, in turn, had an "off-putting" effect upon significant segments of the graduate community. In a nutshell, while the Endowment had been successful in generating a record amount of contributions in 2008, overall graduate participation was down from previous years. In the end, it was the Academy that suffered from needs that went unmet - and would continue to go unmet in the future - unless all parties came together in support of an efficient and effective program for charitable giving.

Today, the situation is markedly improved over the challenges that prevailed just two years ago. The catalyst for this change has been a Memorandum of Understanding between the Endowment and the AOG, under which the parties have divided the responsibilities for fundraising (Endowment) and alumni/parent services, sometimes referred to as "friendraising" (AOG). In exchange for the AOG's relinquishment of its prior fundraising mission, the Endowment undertook to assist the AOG in meeting its own operational funding requirements. For example, during calendar year 2010, the Endowment provided more than $600,000 in direct financial support to the AOG - an amount that dramatically exceeded the AOG's own unrestricted revenues from fundraising during the previous year. Also as a result of the MOU, the Endowment co-located its staff with that of the AOG in Doolittle Hall, which encouraged the development of a collaborative working relationship between both organizations. Not surprisingly, this new era of cooperation has yielded some significant achievements. Specifically, during 2010:

• The Endowment raised over $14.5 million - more than double the previous high- water mark for fundraising in a single calendar year. (The amount raised since the Endowment's inception now exceeds $30 million.)
• Overall graduate donor participation increased by 17 percent, including an equal percentage increase in the number of Sabre Society donors.
• Donor participation to the Air Force Academy Fund (an annual unrestricted fund that assists the Endowment and the AOG in fulfilling their respective missions) increased by 19 percent over 2009, including a 17 percent increase in graduate donors and a 39 percent increase in parent donors. This increased participation had the effect of increasing unrestricted funding levels to the Academy by 19 percent on a year-over-year basis.
• The Academy broke ground on the largest privately funded capital project in its history - the Holaday Athletic Center - after having exceeded the fundraising goals for the project ahead of schedule.
• The Endowment launched the leadership gift phase of the initiative for the new Center for Character and Leadership Development and, as of the end of 2010, had raised more than 40 percent of the commitments necessary to reach the project goal.

As the Endowment looks forward in 2011 and beyond, it will attempt to sustain this momentum through a number of initiatives encouraging graduates to "give back" in support of the Academy. First and foremost, however, the Endowment seeks to instill a culture of giving among the graduate community - and on that front much remains to be accomplished. When measured against our sister institutions, the Academy continues to fall short. For example, West Point's Class of 1999 recently presented a 10-year class gift of $1 million, with an indicated class participation rate of 60-70 percent. And, at Annapolis, unrestricted revenues annually surpass those of the Academy by a factor of four ($8 + million versus $2+ million), with a graduate participation rate almost three times that of the Academy (30 percent versus 11 percent).

Perhaps, the statistics that you have assembled place these challenges in the sharpest focus. In this regard, you note that the classes from '59 through '79 account for almost 12,000 living graduates; yet, as of December 2010, only 558 of these graduates were members of the Sabre Society - less than 5 percent! (Incidentally, the Class of '68 fares about 1 percent better than the overall average.) Individually, we each have our own charitable priorities concerning to whom and how much we choose to give. However, we do hope that in assessing your charitable giving for the future, you will thoughtfully consider supporting the Academy through an annual or planned gift to the Endowment. Of course, should you have any questions or if you would like additional information concerning the Endowment, please don't hesitate to give any of us a call.

Best wishes,

Ed Eberhart
Mike Parkinson
Bill Maywhort