The official minutes of the University of South Carolina Board of Trustees are maintained by the Secretary of the Board. Certified copies of minutes may be requested by contacting the Board of Trustees’ Office. Electronic or other copies of original minutes are not official Board of Trustees' documents.

The Ad Hoc Committee on Advancement of the University of South Carolina Board of Trustees met Thursday, May 23, 2002, at 12:40 p.m. in the Board Room at the Carolina Plaza.

Members present were: Mr. Herbert C. Adams, Chairman; Mr. Miles Loadholt; and Mr. M. Wayne Staton. Members absent were: Mrs. Helen C. Harvey; Mr. William C. Hubbard; Mr. J. DuPre Miller; Mr. Michael J. Mungo; and Mr. Mack I. Whittle, Jr., Board Chairman. Other Trustees present were: Mr. James Bradley and Dr. C. Edward Floyd.

Others present were: President John M. Palms; Secretary Thomas L. Stepp; Executive Vice President for Academic Affairs and Provost Jerome D. Odom; Vice President for Information Technology and Chief Information Officer William F. Hogue; Vice President and Chief Financial Officer Richard W. Kelly; Vice President for Human Resources Jane M. Jameson; Vice President for Student and Alumni Services Dennis A. Pruitt; Vice Provost and Executive Dean for Regional Campuses and Continuing Education Chris P. Plyler; Director of Facilities Planning and Construction and University Architect Charles G. Jeffcoat; Director for Planning Services, Facilities Planning and Construction, Donna Collins; Director for Facility Services James Demarest; Assistant to the Vice President for Business and Finance Ken Corbett; Director of Operations, USC Aiken, Tony Ateca; Director of University Housing Gene Luna; Director of Periodicals, University Publications, Chris Horn; General Counsel Walter (Terry) H. Parham; Senior Director of Development J. Cantey Heath, Jr.; Senior Director of Planned Giving and Legal Liaison Foundations Harriette D. Wunder; and Director of the Office of Public Affairs Russell McKinney.

Chairman Adams called the meeting to order and invited those present to introduce themselves. Mr. McKinney indicated that no members of the media were in attendance. Chairman Adams stated that notice of the meeting had been posted and the press notified as required by the Freedom of Information Act; the agenda and supporting materials had been circulated; and a quorum was present to conduct business.

1. Capital Campaign Progress Report: Mr. Heath advised that Committee members had received an updated version of the Campaign Progress Report through April, 2002. The report outlined specific designations throughout the Capital Campaign which had existed since 1995. A breakdown of some of the overall designations in the Expendable category had included Designated Scholarships, Carolina Scholars, Fellowships, Chairs, and Faculty Development. The Endowment category had included basically the same designations, and the Capital category had encompassed funds raised for buildings. The 2001-2002 fiscal year goals had indicated a breakdown of the funds for the specific designations within each category with a total of $90,000,000. A breakdown by designation of the present value for gifts and pledges through April 30, 2002 totaled $62,365,366. Mr. Heath noted that the Face Value grand total for gifts and pledges from July 1, 1995 through April 30, 2002 had been $477,247,133, and the Present Value grand total for gifts and pledges during the same period had been $407,540,036.

   The collective statistics for the Directors of Development including solicitation and closure goals for the 2001-2002 fiscal year were also provided.

   Mr. Heath explained a bar graph which reflected $49,757,032 in year-to-date gifts, $1,203,988 in planned gifts, $6,699,663 in pledges, and $4,704,683 in private grants; the combined total was $62,365,366.

   Mr. Heath discussed a series of graphs the first of which summarized fiscal year comparisons of the face value totals and the present value totals from July 1, 1995 through March 31, 2002. The second graph portrayed gifts by designation which included Operations and Maintenance, Faculty Development, and Academic Enhancements during the same time period. The third graph portrayed the types of donors throughout the campaign; 51,704 alumni, 28,245 non-alumni, 5,371 corporations, 6,486 parents, 996 clubs and associations, and 226 foundations had been indicated. The total number of donors from July 1, 1995 through March 31, 2002 had been 93,028. The final graph depicted the types of commitment and indicated over $208 million in cash, $80.4 million in pledges, $31.5 in private grants, $58.1 in gifts-in-kind, and $26 million in planned gifts - present value.

   Chairman Adams stated that this was received as information.

2. Palms Chair Update: Mr. Heath updated the Committee on the John M. Palms Bicentennial Chair Fund. As of May 15, 2002, more than $600,000 had been raised for the chair; the current level raised was approximately $700,000 in gifts and pledges.

   Chairman Adams asked Mr. Stepp to provide additional information to the Committee concerning the chair update which would be of interest to all trustees. Mr. Stepp stated that Chairman Whittle had requested that a statement be included during this meeting regarding a conversation which he had with Robert C. McNair from Texas. Mr. McNair had challenged the Board by pledging to match personally all gifts contributed by the members of the Board of Trustees (up to $700,000) to the Palms Chair. When the State match to the chair was obtained, if a Center of Excellence was implemented, it would also be matched. In this respect, a contribution could be quadrupled. Mr. Stepp noted that more detailed information in writing would be provided to members of the Board.

3. Campaign Celebration on May 28th: Mr. Heath reminded the Committee that the Bicentennial Campaign celebration would be held on Tuesday, May 28, 2002, beginning at 5:30 p.m. by the reflecting pool at Thomas Cooper Library. An invitation had been provided to members of the Board.

4. 2002-2003 Post-Campaign Priorities Draft: Mr. Heath discussed a draft of the post-campaign priorities. The primary focus had been to continue the campaign through June 30th. An assessment of the campaign would be conducted to determine what had worked and what had not worked to begin to prepare for the next campaign. A post-campaign survey would be considered for targeted donors, non-donors, campaign leaders, deans, administrators, and Development staff members. Mr. Heath advised that two final campaign reports would be prepared; one would be an internal document and one for public dissemination. Work would be carried out to maximize pledge collections. Communications would be maximized with donors and volunteers by expanding stewardship efforts because informed, satisfied involvement would lead to increased investments in future giving. The new USC president would be introduced to the top donors, volunteers and prospects as well as to the broader spectrum of alumni, non-alumni friends, and business and community leaders in South Carolina and other states. The Development Office strategic planning would be based on the new administration's vision for the University and would be tied into the marketing plans. Successful development officers would need to be retained and motivated; top fund raisers can sometimes be lured to other institutions as a campaign concludes. Donor research information collected during the campaign would be reviewed to pursue loose ends and to revisit missed opportunities. Newly identified donors would be channeled to USC volunteer boards to infuse new perspectives and to increase the donors' sense of ownership. Unmet campaign needs would be reviewed and new, current needs would be determined with particular emphasis on raising funds for the new endowed chairs to receive the Education Lottery match. Mr. Heath noted that gift endowment levels and gift naming opportunities would be reassessed. The annual fund programs would be strengthened and expanded. The immediate post-campaign period would be a good time to target small capital campaign projects such as the new alumni center and the Law School building; these projects would be identified and prioritized.

   Chairman Adams informed the Committee that a post-campaign assessment would be reviewed in the fall and would close out the campaign.

   Dr. Palms stated that Mr. Robert Staton, Vice President for Development, had accepted another position and he thanked Mr. Heath and Ms. Wunder for their service and support. Dr. Palms noted that Dr. Dennis Pruitt had agreed to become the acting individual who would oversee the functions of Mr. Heath and Ms. Wunder within the Development area. The new president would have the prerogative to conduct a search for a new Vice President of Development and to address organizational issues pertaining to the area.

   Chairman Adams remarked that extending the goal to $500,000,000 and raising funds was a tribute not only to the Development office, but to Dr. Palms and his efforts. Chairman Adams congratulated Dr. Palms and noted that the University of South Carolina was very appreciative of all that he had accomplished.

There were no other matters to come before the Committee and Chairman Adams declared the meeting adjourned at 12:55 p.m.

Respectfully submitted,
Thomas L. Stepp
Secretary