Board of Directors Meeting

1
Board of DirectorsMeeting
Saturday, October 27, 2007
2
Chair Welcome Remarks
3
Approve Agenda(Tab 2)
4
Minutes Review(Tab 3) August 9, 2007August
11, 2007September 11, 2007 (Teleconference)Septe
mber 15, 2007 (Teleconference) October 19, 2007
(Teleconference)
5
APPROVE
6
Old Business

• Future Board Meeting Schedule
• Conflict of Interest Statements
• Board Committees

7
Annual Board Meeting Schedule(Tab 4)
8
AOG Board of Directors Meeting Schedule 2008-2010

• February 8-9, 2008
• May 9-10, 2008
• August 8-9, 2008
• December 5-6, 2008

• February 20-21, 2009
• May 8-9, 2009
• August 7-8, 2009
• December 4-5, 2009

• February 19-20, 2010
• May 7-8, 2010
• August 13-14, 2010
• December 3-4, 2010

9
Conflict of Interest Statements
10
Board Committees
11
Alumni Relations Committee
Steve Finch (Chair)Pat RosenowSteve DotsonMike
FlynnMarty FranceJames SanchezGeorge Van
Wagenen
Raul CisnerosJohn MichelsHéctor NegroniDick
Sexton
Gary HoweSwamp FoxMarty MarcolongoBob
McAllisterJack MuellerWayne Taylor
Committee Purpose Statement
The committee establishes policy for all programs
and services provided by the AOG to members,
graduates, and others. The responsibilities of
the former Graduate Dependant Scholarship,
Humanitarian Fund, and Heritage Traditions
Committee have been assigned to the Alumni
Relations Committee.
12
Audit Committee
George Van Wagenen (Chair)Steve Dotson
Barry BlackmanWill HoneaRick Parsons
Leslie Frank
Committee Purpose Statement
The committee oversees the auditing process of
the AOG books and records.
13
Campaign Steering Committee
Bill Boisture (Chair) James SanchezGeorge Van
Wagenen
Carl JanssenMike Loh

Committee Purpose Statement
Responsible for all development policies and
activities of the AOG.
14
CEO Search Committee
Jim Wheeler (Chair)Ed EberhartFred Gregory
15
Distinguished Graduate Award Committee
Ed Eberhart (Chair)
Dana BornRandy Cubero
Jim ShawGary Howe
Committee Purpose Statement
Responsible for the selection of the annual
Distinguished Graduate Recipient(s).
16
Finance Investment Committee
Bill Boisture (Chair)James Sanchez
Eric HoltJack Fry
Leslie Frank
Committee Purpose Statement
Duties of the committee include (1) Establish a
financial management and investment plan for the
AOG, (2) Oversee the financial conditions,
investments and contributions to the AOG.
17
Governance Committee
Pat Rosenow (Chair)Steve FinchMike FlynnFred
Gregory
Rip BlaisdellKevin CarmichaelJane Francis
Gary Howe
Committee Purpose Statement
The committee oversees and evaluates the
governance of the AOG, as well as the functions
of the Board and the Class Advisory Senate. Its
duties include addressing ethics issues,
adjudicating conflicts of interest, periodic
review of the Bylaws, and ensuring that the AOG
practices are consistent with the Bylaws.
18
Human Resources Committee
Steve Dotson (Chair) Steve FinchMike Flynn
Seth DeamKen Jennings
Gary HoweLeslie Frank
Committee Purpose Statement
The Human Resources Committee assumes the
responsibilities of the former Compensation
committee and will, in addition, provide the
Board oversight and advice as required in
staffing and manpower.
19
Investment Subcommittee
Leslie Frank
Rich Abramson (Chair)Rod HennekBill
Jennings
Bill Boisture
20
Nominating Committee
Fred Gregory (Chair)Jim WheelerMike Flynn
Trip AsheMel CunninghamDave MacGheeRob
MishevVic Thuotte
Gary Howe
Committee Purpose Statement
Other that those candidates who are placed on the
ballot by petition, recommended for candidates to
be elected as Directors shall be made by the
Nominating Committee for approval by the Board.
The committee shall maintain a pool of
candidates qualified to serve as committee
members.
21
APPROVE
22
Finance Investment Committee

• Report from Committee Chair

23
Governance Committee

• By-Law Review Update
• Improving Board Member Communications

24
Alumni Relations Committee

• Review of War Memorial Criteria

25
Class Advisory Senate

• Update
• Projected Projects and Schedule
• Strategic Goals White Paper

26
New Business

• Presidents Report
• Class of 61 Hotel Proposal
• Other Member Submissions
• Unscheduled Topics

27
Presidents Report

• Financial Update
• Development Update
• Revenue Generation Ideas
• Audit Status
• Upcoming Events
• Board Email System
• BOV Update

28
Financial Update

• Audit Status

29
(No Transcript)
30
Quarterly Financial ReportJuly September, 2007
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Summary

• September 2007 Results Operating only, cash
  basis
• - Letter from Bill Boisture, Finance Committee
  Chair
• - Discussion of Results focus on revenue
• Review of elements of the reduced budget.
• Vote regarding ratification of Finance Committee
  recommendation regarding a reduced budget.
• Repair to Doolittle Hall

32
Q1 FY08 AOG Operating Results Cash Basis
33
Should we revise our expectations for the Annual
Fund?

• Through September 30, 2007, the AOG is 92K ahead
  of the revised first quarter plan for the Annual
  Fund cash collections, and 25K behind on other
  unrestricted cash gifts, for a net positive
  variance of 67,000
• But
• October Annual fund cash activity has fallen off
  and we are below the path to achieve the 2nd
  quarter plan.
• We are seeing an overall decline in pledge
  payments by graduates over the last several
  years July-Oct FY08 compared with July-Oct FY
  07 continues that trend.
• October, November and December taken together are
  the bell weather months for contributions and
  will provide information that will help us
  evaluate whether our expectation for the year for
  unrestricted cash should be revised.
• Recommendation Reassess current goal after 2nd
  quarter results are known.

34
Investments

• Budget Actual
• Total return 2 1.4
• Investment income 670,000 465,000

35

• TIME to VOTE

36
Questions?
37
Development Update

• Annual Fund Comparison
• Other Fund Raising Efforts
• Project Update

38
DEVELOPMENT BULLETS 1ST QUARTER 08
39
DEVELOPMENT BULLETS 1ST QUARTER 08
40
DEVELOPMENT BULLETS 1ST QUARTER 08
41
DEVELOPMENT BULLETS 1ST QUARTER 08
42
Stewardship and Donor Relations-Whats Going On

• May 2007 Dedication Ceremony and Reception for
  Memorial Pavilion
• Follow up Photo albums
  Picture Frames inscribed for top 10 donors
• July 22-24 Donor Appreciation Event
• Sept 1 Check Presentation AF vs SC State
  Annual Gifts Needs
• Sept 28 Donor Appreciation Event in Annapolis
  AF vs Navy Game
• October 19 Dedication Reception for Howard
  Burkart Storyteller Exhibit
• October 20 Check Presentation Olmsted Foundation

43
Donor Relations happening in the near future

• October 29 Dedication Reception for Vast
  Refuge Dharma Hall
• November 17 Check Presentation
• Lockheed Martin Chair in Space and Defense
  Policy
• End of November Mail out of Donor Report for FY07
• May 2008 Endowment Reports
• June 2008 Update of all Donor Walls

44
Project Update

• Heritage Trail
• Carillon Bells
• Buddhist Chapel

• Mall of Heroes
• Harmon Memorial
• Falcon Statue
• Admissions Welcome Center
• Hall of Excellence Storyteller Exhibit

45
Upcoming Events
October31- 3Nov Corona31- 3Nov Reunion for
Class 1962, USAFA November1-2 Service Academy
Career Conference Austin, TX 3 Football
vs Army, USAFA9 Football vs Notre Dame, South
Bend, IN17 Football vs San Diego State USAFA
46
Upcoming Events
December 11-12 Jostens Genuine Stone Show
USAFA January 20087-11 Ring Ordering February
20088-9 Board Meeting28-29 Service Academy
Career Conference Savannah, GA
47
BOV Update

• AOG Support to USAFA Recruiting
• Campaign Update

48
Board of Visitors UpdateOctober 17, 2007
49
AOG Support to USAFA Recruiting

• Must Be
• Supported by Air Force
• Led by USAFA
• Subordinate Role for AOG

50
Areas of Possible Support

• Communications
• - Checkpoints
• - ZoomieNews
• - Zoomie Nation
• - Other Focused Efforts
• Graduate Database
• Chapters/Affinity Groups
• Class Senate
• Cadet Interaction

51
Factors Affecting Support

• Interaction with Liaison Officers
• Currency/Accuracy of Information
• NCAA Guidelines
• Available Resources
• AOG Focus

52
AOG Support to USAFA
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FY07 Annual Gift Needs supported with
private funding through the AOG

• Academics- 399,721
• Athletics- 61,500
• Awards - 89,352
• Cadet Clubs - 71,865
• Cadet Travel - 412,562
• Heritage Projects - 178,565
• Leadership Character Development - 322,653
• Other - 4,700
• Scholarships - 85,465.74
• Superintendents Discretionary - 11,814

54
FY07 Programs supported with private funding
through the AOG

• Academic Awards
• Academy Assembly
• Athletic Programs
• Cadet Awards Programs
• Cadet Chapel Ministry Programs
• Chapel Music Programs
• Character Education Programs
• Cadet Clubs
• Cadet Leadership Enrichment Seminar
• Cadet Travel
• Summer Research
• Community Outreach Programs
• Contrails
• Engineering Programs

• Exemplar Program
• Faculty Memorial Awards
• Faculty Forum
• Faculty Orientation
• Faculty Speakers Program
• Foreign Travel/Immersion Programs
• Humanities Institute
• International Programs
• Military History Symposium
• Military Strategic Studies
• Prep School Support
• Parental Support
• Summer Seminar
• Several Other Programs

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Annual Support to the Academy
Dollars (In Millions)
Years
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Building Leaders of Character for the Nation
Character Leadership Development 40.5
Academics 20 Athletics 10 Heritage
7.5 Investing in Opportunity 22
100
57
Campaign Progress through 6/30/07
58

• Memorial Pavilion - Complete
• Phase I - Ended
• Phase II - TBD

59
Board Email Demo
60
Class of 61 Hotel Proposal
61
Member Submissions
62
Unscheduled Topics
63
ADJOURNMENT
64
Back-up Slides
65
Revenue Increase

• TOP TIER
• Corporate Sponsor Program (See Advertising)
• Potential 150K - 200K per year
• Outsource Production of Checkpoints Register
  (Expense Reduction)
• Advertising
• Checkpoints/Other Publications - Increase Issues
  of Checkpoints
• Web Ads
• ZoomieNews Ads
• Advertising Fliers
• Classified Ads (Potential 40K - 50K per year)

66
Revenue Increase

• Target Parents
• Photo Sales - BCT Video Greeting - Event
  Photos - Glider Solo Photos
• Web Guy - Video Sales - Care Package - Parent
  Contest
• Hot Dog Stand (Food Sales) - In Processing -
  Acceptance Day - Parents Weekend

67
Revenue Increase

• Greeting Cards to Cadets
• Hometown News Video
• Van Service to Airport
• Merchandise Tote Bags. T-Shirts, Other
• Merchandise
• Sell Three Grandfather Clocks
• Market Ornaments
• Postcard Announcement to Select Audience
• Market 2011 Parents to start Four-year Collection

68
Revenue Increase

• SECOND TIER
• Merchandise
• Cigars
• Wine
• Weapons
• Software Discounts
• Resale Items - Snacks - Candy - Water

69
Revenue Increase

• Services
• Building Rental - Get Cut on Catering - Charge
  to Advertise with Greater Frequency - Change
  (increase) Rental Rates
• Cadet Event Service
• Tour Service

70
Revenue Increase

• Miscellaneous
• Prescription Drugs
• Insurance
• Fees for Event Registration Service
• Petting Zoo
• Fly Fishing Lessons
• Move out of Doolittle Hall/Rampart Lodge into
  Conference Center
• VIP Tent at Football Games and Graduation
• Airplane Rides
• Reunion Fees
• Take advantage of USAFA Errors

71
Expense Reduction

• Communications
• Drop Register - 150K - Electronic Only -
  Outsource
• Drop Parent Handbook - 30K
• Drop Appointee CD - 8K - Make Available On-lin
• Drop Donor Report - 10K
• Reduce Size of Checkpoints - 80-100K -
  Class/Chapter news on Web
• Reunions
• Reduce Services
• Flex Time