Sigma Chi Foundation CEO Report (abridged) Greg Harbaugh April 17, 2009

1. Sigma Chi Foundation CEO Report (abridged) Greg Harbaugh April 17, 2009 Spring 2009 Board of Governors Meeting

2. Foundation Strategic Mission and Vision • Mission (who we are): “The Sigma Chi Foundation solicits financial resources, provides faithful stewardship, and engages in exemplary ethical practices in support of Sigma Chi and leadership development.” • Vision (where we’re going): “The Sigma Chi Foundation is respected for the manner in which we establish expectations, and build and administer an endowment that supports leadership and scholarship programs that reach beyond Sigma Chi’s borders, in perpetuity.”

3. Snapshot: FY 08 – 09 to date Our message is solid and is being well received: - Scholarship and leadership are important in elevating a young man’s sights - Character and values-based training are essential to becoming one’s true self - Role models and mentors can make a significant positive difference Lockwood’s famous quote - “Let us endeavor to so raise ourselves that to say of a man, ‘He is a Sigma Chi’ shall be synonymous with saying he is a liberally educated, high-minded, pure and noble man. Such are some of the objects of our society. The world is in great need of such men. Let all who go out from our chapters be just such men.” - - is a message that resonates

4. Snapshot: FY 08 – 09 to date • Major Gift – we are working hard to meet the challenge • 630 MGO visits vs. 451 last year • 81 commitments vs. 46 last year • Significant $ in outstanding proposals • Planned Giving – progress continues • 11 new commitments to date (vs. 8 last year) • Annual fund - $ up slightly; donors steady • Chuck Watson Foundation Board Challenge=> 100% participation • John Peterson New Donor AF Challenge just getting started

5. Snapshot: FY 08 – 09 to date • Budget – aggressive expense control has offset revenue downturn caused by economy • 20% reduction in total expenses over last year • Program expenses down slightly • FY 08 – 09 Budget forecast at net zero or better • Bell Chapter Challenge gaining traction - 11 chapters (see special topic) • Leadership Funds doing well - 21 chapters • Horizons sponsorships doing well - 23 chapters

6. Looking forwardFY 09 – 10 Budget Philosophy • I. Sustainability = • meaningful communication + • high participation in annual fund + • regional cultivation (local return on investment) + • sufficient major gift officer pursuit of prospective donors + • emphasis on deferred gifts (endowment) for older alumni + • effective stewardship of current donors + • alignment with Fraternity

7. FY 09 – 10 Budget (cont.) • Annual Fund + Operations revenue => Operations expenses • Major Gift + prior commitments => Development & Program expenses • Maintain program funding as a priority • Increase academic scholarships 25% • Net contribution to endowment • Continue to invest in major gift cultivation • Focus communications in-house • 4.5% reduction in total expenses • Reduced margin

8. Goals – FY ’10 • Major Gift: • Meet or exceed major gift goals • Ongoing professional, efficient, effective fund raising process • 800 total face to face visits with alumni • 25 receptions/alumni gathering/province conferences speaking engagements • Contribution to annual fund • Deferred Giving: • Meet deferred gift/Caldwell Society goals • Transition gifts to irrevocable status • Add life insurance gifts

9. Goals – FY ’10 (cont.) • Annual Fund: • Annual fund meet or exceed goals • Increase White Cross Trust donors & enhance value • Increase Annual Fund donors • Increase renewal rate for annual giving • Continue Board, Fraternity leadership, and new donor Challenge efforts • Significant increase in Bell Chapters • Enhance in-house solicitation and stewardship efforts • Carefully evaluate outreach pathways – enhance web presence

10. Goals – FY ’10 (cont.) • Communications: • Increase awareness of leadership programs by reaching 80% of contactable alumni • Produce 2 high quality Focus newsletters and Annual Report • Develop/update effective Foundation website for secure online giving • Publish leave-behind materials of highest quality • Stewardship: • Touch current/former donors 3 times to inform and engage • No Foundation-funded receptions due to budget • Conduct Distinguished Visitor program for 5 alumni at Horizons & BLTW • No Foundation reception at Grand Chapter due to budget

11. Goals – FY ’10 (cont.) • Programs: • Alignment and active endorsement of all programs by Fraternity and Foundation • Quality performance metrics for all programs • Agreement on program goals/objectives • Deployment of Cornerstone to all chapters • Grand Praetors supported in delivery of Cornerstone • Continued excellence in Horizons program • Reduce cost • Consider alternative venue for summer of ‘10 • Expand participation • Journey • Integrate into Cornerstone? • Define Fraternity-wide deployment strategy • Progress toward comprehensive alcohol and drug abuse program • Sigma Chi Leadership Institute working effectively to address long-term strategic issues and policies (see special topic)

12. Goals – FY ’10 (cont.) • Grants: • Meet grant obligations • 25% increase in academic scholarships • Headquarters: • Reduce overhead costs • Evaluate and reward performance according to metrics • Continuous improvement as measured by metrics • Finance: • Balanced budget • Monthly cash status; quarterly status to Finance committee Increase unrestricted endowment/reserve • Continue to enhance historical trend charts (5 years) • Some growth/recovery in investment assets

13. Observations and Conclusions • There is no more discretionary cost-cutting available • We are too dependent on a small number of big-ticket donors –> grass roots cultivation (Local giving = local return) in conjunction with ongoing major gift work will lead to growth • Continued outreach by all Brothers is needed to re-enroll disaffected and/or disconnected Sigma Chis. • We need to cultivate the idea, from pledgeship, that contributing to the Foundation is worthy and beneficial to all – because it is!

14. Goals – long term (2027) A reach to exceed our grasp • Substantial endowment (largely through deferred gifts) • Effective communication with 90%+ of alumni • Annual giving by 20% of alumni • White Cross Trust giving from 5000 alumni • Highly-performing Annual fund Acknowledged leadership in leadership program support, formulation, and measurable impact Cornerstone-type program expands to other Greek organizations • Mentorship sees resurgence as significant cultural change in America • Horizons leadership programs established beyond Sigma Chi • Other leadership programs making significant impact. Cooperation with industry, academia. “Sigma Chi Leadership Institute” has international recognition. • Alumni programs making significant difference in lives of Sigma Chi’s of all ages.

15. Special TopicSigma Chi Leadership Institute • SCLI will provide forum for Fraternity and Foundation to focus on policy and long-term strategies • Four senior leaders of each organization: • Grand Consul, Grand Pro Consul, Grand Quaestor, Executive Director • Chairman, Vice Chairman, CEO, FBOG member • Meet minimum of twice annually • 501c3 non-profit • Fraternity has responsibility for operation of all leadership programs • Consolidates program message(s) and may allow integration of curricula across programs • Opportunity for cost efficiencies • Foundation is indemnified from program liability/risk

16. Special Topic:Thomas Cowan Bell Chapter Challenge • Fact: Foundation provides about $10k/chapter in leadership program support: • 5 undergrads to Balfour Leadership Training Workshop (85% of direct cost) • 144 Horizons slots • Cornerstone mentor program • Choices alcohol/drug abuse education program • Balfour nominee Life Loyal program • $125k in general scholarships • Bell Chapter Challenge asks interested alumni to support their home chapter’s programming by donating $10k/year to the Foundation. • If all 225 undergrad chapters were Bell Chapters, we could: • Expand Horizons to 2 undergrads/year/chapter (450 undergrads) • Pay for enhanced BLTW (poss. 8 undergrads/chapter) • Fully implement Cornerstone alumni mentorship program • Expand Choices/Betty Ford alcohol and drug abuse education program • Expand general scholarships • Deliver Journey chapter retreat program to many, if not all, chapters

17. Thomas Cowan Bell Chapter Challenge (cont.)(content under review) • Donation levels: • Blue - $10k/chapter/year ($250k to endow) • 1 reserved Horizons slot (for qualified applicant) • 8 paid slots for BLTW (vs. 5) • Cornerstone delivery via Grand Praetor • Priority consideration for one $1000 scholarship (under review) • (under review) Gold - $tbd/year ($tbd endowed) • 1 reserved Horizons slot (for qualified applicant) • 8 paid slots for BLTW • Journey program – chapter retreat • Priority consideration for two $1000 academic scholarships (under review) • (under review) White - $tbd/year ($tbd endowed) • Gold level above plus 2nd reserved Horizons slot • Donor recognition at chapter house, HQ, and in multiple publications