The VMI Alumni Association, Inc

The VMI Alumni Association, Inc.

Board of Directors

Winter Meeting

February7, 2015

Call to Order

The meeting was called to order at 8:00 a.m.

Mr. Edgar J. T. Perrow '96, President of the VMI Alumni Association, Inc. welcomed members and guests of the Board to the Winter Meeting of the VMI Alumni Association Board of Directors. Mr. Perrow made a few brief comments.

Mr. Perrowrequested that the roll be called and a quorum was present (see Appendix I).

Approval of Minutes

A motion was made and duly seconded to approve the minutes of the 2014Fall Meeting of the Alumni Association Board of Directors and carried unanimously.

Report from General J. H. Binford Peay III '62, VMI Superintendent

General Peay addressed the board members beginning with a look back and a look ahead at some important events at VMI. The official Campaign kick-off happened at the Institute Society dinner on November 11th, 2014. Looking forward the Spring Reunions, Commissioning and Commencement ceremonies will take place in April and May.

The Superintendent reported that Breakout was the best event to date and that no serious injuries were reported. Attrition is also at an all-time low. We are looking forward to a very strong class of military leaders coming in next year. The Honor Court has been very solid; there have been no significate violations.

Anticipated commissioning numbers are higher this year than last. We are currently near a 50% commission rate. Academically, we are applying for reaccreditation. Our requirements are due March 16th with an on-site visit on November 16th. After June of 2017 we should have some notification.

Work continues on the “Right-Sizing” action for academic majors. This will enable us to produce information for the Dean that will indicate the numbers of faculty needed to have a constancy of management for each department. This is beneficial for both cadets and faculty.

Athletically, this is our first year returning to the Southern Conference. The transition is going very well. There have been several changes in ourathletic department. These changes have brought a fresh approach to athletics and academics. Out athletic budget is the biggest problem at VMI. We need to continue to grow our annual endowments with this campaign.

Our target for Admissions is 54% In State and 46% Out of State. Across the commonwealth, most enrollments are down. We are currently in a three year historical high. Out of state work within the chapters is greatly appreciated.

Construction continues to progress across post. The construction of the Corps Physical Training Facility is well underway and is projected to be complete in the summer of 2016. Many North Post projects will be complete later this summer.

The current legislative session does not offer much growth. Therefore, we will need assistance from the state in order to provide compensation increases for our faculty and staff. We are currently working on our 2016 budget. We continue to track the current bills in this session to assure that our uniqueness at VMI is understood going forward.

In closing, Gen. Peay feels very good about the performance of the Corps today.

Report from Mr. Adam C. Volant '88, EVP and Chief Operating Officer of the VMI Alumni Association, Inc.

Mr. Volant updated the board on several topics including details concerning a regional forum he attended in North Carolina with Region VI chapter leaders. The forum was held to discuss tactical ways of improving how we engage alumni and how to be effective in communicating the importance of their continuing support of VMI. That theme will continue to our next board meeting in April when we invite our chapter leaders to meet with class agents. Mr. Volant encouraged all Regional Directors to reach out to their chapter leadersand to stress the importance of attending these combined meetings for the betterment of VMI.

The project of updating the 2015 edition of the Register of Former Cadets is underway. Informational mailings will be mailed within the next few weeks. These will include information about our secure website that will not only allow members to view their entire donor record but also update that information as needed. The Agencies are combining efforts to insure the update of this data is accurate and complete.

We are looking forward to the upcoming Legislative Reception. Mr. Volant noted that it is a premier opportunity to display the Institute and its alumni and to meet with the Legislative representatives in attendance. The event is always well attended. Mr. Volant stressed the importance of alumni attendance for the Institute.

Mr. Volant stated that our merchandising endeavors have been very successful. The Alumni Association purchased, at auction, the mailbox covers that were removed during construction and we have currently sold over 100 mailboxes. This has not only given our alumni an opportunity to rekindle their experience at the Institute but it has also created much engagement and inspiration.

Report from Mr. Hugh Fain '80, President of the VMI Foundation, Inc.

Mr. Hugh Fain'80reported to the Alumni board. He is the current President of the Board of Trustees and was also the Alumni Association’s Board of Directors President from 1995 to 2003. He is very proud of our mission. He believes that without the work of this Association the Institute would not be as successful as it is today. Mr. Fain noted that The Foundation appreciates the work that the Association does in support of VMI. The Board of Trustees is hard at work in their mission as well, to raise and steward the funds needed to allow the Institute to continue its work.

Today, 25% of the Institute’s annual operating budget comes from the Alumni Agencies. If not for several forward thinking alumni,in 1978, that saw the need for a private Foundation we would not have the basis that we have today. We are now approaching 400 million in our endowment with both restricted and unrestricted funds.

With the many senior staff changes that have taken place over the last year, we are moving forward with the Campaign. Our consultants, Graham Pelton, have been working with us for several years in the quiet phase. We have now successfully launched our public phase that began at our Institute Society dinner. We are excited about the work that has been done and we continue to move forward to our goal of a $2 billion dollar endowment.

Brian Crocket addressed the Alumni Board as well. He noted that there are many new strategic practices in place in the Foundation. Various meetings, such as the Association of Governing Boards Conference, have offered insight on ways to learn from other schools on how they are organized and the processes used to accomplishtheir missions.

From a fundraising standpoint there must be judiciary responsibility. We should be proud of our accomplishments and our respectability. For the first time ever, the gifts that the Agencies received in the first six months of this fiscal year were over $20 million. Alumni engagement is very important for us all and it is the goal of the Agencies to encourage both alumni and non-alumniparticipation.

We should all be proud of the fact that we were able to increase our campaign goal while still in the quiet phase. It enabled us to increase the overall goal by 20% at the launch of the public phase. While we still need more prospects, meetings and gifts, we all continue to work hard for VMI. We want to be able to give each alumni and opportunity to be a part of something very special for VMI.

Report from Mr. Gregory M. Cavallaro '84, Chief Executive Officer of the VMI Keydet Club, Inc.

Mr. Cavallaro'84 addressed the Alumni Board. As the Keydet Club continues to evolve, their mission is a true representation of all of VMI. The Keydet Club is constantly assisting VMI in its mission to educate young men and women. Unlike the Foundation, the Keydet Club was never focused on endowment. With the leadership of Gen. Peay ’62, the focus may have shifted but the growth of the athletic scholarship fund is still a fundamental part of what we do. With each tuition increase the Keydet Club must increase their funding in order to maintain the same number of scholarships as that of the previous year. Therefore, our fundraising totals must continue to increase.

VMI is one of three schools in the state of Virginia that provides more than half of its athletic budget from the private sector. The largest share of our athletic budget comes from the alumni body. This is a wonderful testimony for our alumni. Our alumni participation rate is still low therefore, we continue to encourage alumni involvement especially now during the campaign.

The Keydet Club’s scholarship banquet continues to be successful. With increasing numbers each year this event is a wonderful gathering of Parents, Cadets, Board Members and Donors. Last year’s attendance was an all-time high at 752. The three legged stool is awarded at this event. The award represents VMI’s unique education system of athletics, academics and leadership.

It takes everyone to win and the Keydet Club welcomes all alumni at any capacity. Together we all can achieve more.

Report fromMr. Edgar J. T. Perrow '96, President of the VMI Alumni Association Board of Directors, Executive Committee

The strategic plan is of high importance as we look forward to our next steps. Collectively each committee addresses their goals and objectives. From there, reports from each chair will be consolidated and combined to show the overlap between the committees.

Report from Mr. Samuel N. Stocks '90, Chairman of the Nominating Committee

Mr. Stocks reported that the overall goal of the Nominating Committee is to identify the absolute best talent for the various boards. Continued efforts to collaborate take place with the Board of Visitors President and their nominations effortto recognize the needs of the BOV. The slate of nominees for approval is as follows:

Mr.PaulE.Galanti-Richmond,Virginia
Mr.ErnestoV.Sampson'98-Richmond,Virginia

Mr. EugeneScott,Jr.'80-Richmond,Virginia

Mr.David L.Miller'70-Brentwood,Tennessee

The motion to approve the slate carried unanimously.

Voting members were asked to vote on the Foundation slate.

Mr. Richard W. Flowers '72 – Fort Lauderdale, Florida

Mr. George Piegari – Lexington, Virginia

Mr. W. Gregory Robertson '65 – New York, New York

Mr. Eugene Scott, Jr. '80 – Richmond, Virginia

Lieutenant General Carl A. Strock '70 – Caret, Virginia

The motion to approve the slate carried unanimously.

Report from Mr. Robert P. Louthan '82, Chairman of the Finance Committee

Mr. Louthan discussed the finalization of the 990 tax return forms. A financial review of the Agencies was prepared and approved. The athletic budget is the real challenge for the Foundation and the Keydet Club. The Finance Committee’s strategic plan is focused on assisting other committees with informationon how to have a positiveimpact on VMI.

Report from CaptainAsa H. Page'79, Chairman of the House Committee

Captain Pagereported that the exteriorimprovements to Moody Hall are complete. Our strategic plan is to prepare Moody Hall for the future. Items such as security, utilization, organization, structural sustainment and functional changes are top priorities.

Report from Mr. G. Anthony Esteve '00, Chairman of the Young Alumni Committee

Mr. Esteve reportedon the importance of assisting graduates that are in the first five year period after graduation. Some leave VMI with $30,000 in debt. With the tough economy today, we must be able to approach the subject of outreach in a sensitive manner in order to continue to engage our young alumni for the future. Regional Directors should reach out to the chapter leaders and continue to educate our young alumni concerning the assistance that is available to them from the Alumni Association.

Report from Mr. Hilbert W. Wilkinson '94, Chairman of the Career Networking Committee

Mr. Wilkinson reported on the evaluation of career services, placement processes and alumni support services. We evaluatedthe existing processes as well as ways to improve. The main goal now is to specify the current curriculum of current cadets and working with advisers to improve their success after graduation. Several chapters have held networking dinners. The VMI Career Fair was held on January 9thand brought in over 36 companies and 85 to 100 attendees.

Report from Mr. Anthony Moore '78, Chairman of the New Cadet Recruiting Committee

Mr. Moorereported on some ideas to help make New Cadet Recruiting more effective. The importance ofrecruiting out of state cadets is essential. The need to work closely with and combine the assistance of the VMI offices of admissions, ROTC, financial aid and career services is imperative for attracting the best cadets. New ideas can be brought in to help the process. We are developing a best practices document to share with our chapters so that they can see the ideas that are working in other areas. We are also working on different ways to attract more alumni and more minorities to participate in the recruiting process.

Report from Mr. Walter L. Chalkley '72, Chairman of the Communications Committee

Mr. Chalkley reported that this committee connects with everyone. A very important concern is that we do not overwhelm and the Agencies need to work together to prevent that. We will be accessing our communication structure and methods in order to develop recommendations for the modification and improvement in these areas. We will also recommend training and communication requirements for regional directors to better prepare them to do their jobs.

Report from Mr. James E. Henry '68, Chairman of the Old Guard Committee

Mr. Henry reported that the Old Corps would like to be called the “Old Guard” instead of the Old Corps. We would like to have at least one board member designated at the Director at Large level to focus on the Old Guard committee. We would also like to have a senior Alumni Board member for each region. We will then prepare a guide that can be used by the regions and chapters to provide guidance for generating activity and allegiance to VMI. Widow involvement and senior activities are major concerns as well.

Report from Mr. Lane Toomey '74, Liaison to the BOV Military AffairsCommittee

Mr. Toomey reported on his meeting with the BOV and the Military Affairs Committee. COL Patrick Looney, the current professor of Navel Science will be retiring this year. COL Spanky Lee, the current professor of AerospaceScience will be retiring as well. With 25% of the Corps on some sort of ROTC scholarship that could produce upwards of 53% commissioning this year. Over the past two years our four year ROTC scholarship percentage has increased. The popularity of the Cohort branch selection program is an indicator of the respect that our ROTC program has among all the militarycolleges.

Report from Dr. David Wilkinson'67, Liaison to the BOV Academic Affairs Committee

Mr. Wilkinson reported on his meeting with the BOV and the Academic Affairs Committee. In preparation of the Southern Associates of Colleges and Schools Commission on Colleges (SAC COC) reaccreditation, several components were discussed. Reaccreditation is crucial for the institute to offer bachelor of art degrees. Faculty salaries continue to be a topic of discussion. Future endowment of these salaries could result from a successful campaign.

Report from Colonel Thomas W. Davis '64, Historian of the Alumni Association, Inc.

COL Davis provided a letter indicating that while on vacation, he will be researching the significate connection between the Panama Canal and Sydney B. Williamson, VMI Class of 1884.

Mr. Perrow asked for a brief overview of the progress of the Chapter Task Force from Charlie Ramsburg ’66. Mr. Ramsburg indicated that the task force continues to look for ways that both chapters and regions can become more efficient. The members are excited about moving forward.

There being no further business, the springmeeting of the Alumni Association Board of Directors will be held on April18, 2015. The winter meeting of the Alumni Association Board of Directors was adjourned at 1100 hours after a group singing of the VMI doxology.

Respectfully submitted,

Adam C. Volant '88