The extraordinary generosity shown to Penn State for the year ending June 30, 2008, will benefit students, faculty, and staff for many years to come. In this report, you will learn more about the scope and impact of private giving. Let's start with a few of the year's highlights.

— The University received gifts from 74,166 alumni, an all-time high that reflects a broad base of support for the capital campaign, For the Future: The Campaign for Penn State Students. The total number of alumni donors represents a 3 percent increase from the previous year, a remarkable achievement at a time when the number of alumni making gifts to their alma maters nationally is flat or in decline.

— Giving overall totaled $181.5 million, second only to the previous year's $190.3 million as the highest philanthropic total in Penn State's history. These numbers represent actual gifts received and exclude pledges.

— The number of gifts received–281,155–also set a record. Many of these gifts came from first-time donors, who typically go on to become long-term benefactors. This trend points to a promising future for Penn State.

— Endowments created through the Trustee Matching Scholarship Program, which aims to keep a Penn State education accessible to all qualified students, regardless of their financial means, passed the $50 million mark. In creating this important initiative, the Board of Trustees agreed to match 5 percent of the principal of each gift annually with University funds, and combine these matching funds with income from the endowment to effectively double the financial impact of the scholarship. More than 4,600 students benefited from Trustee Scholarships in 2007–08.

I would also call your attention to the performance of the University's endowment and similar funds. The Penn State Investment Council maintained a disciplined approach to asset allocation during a year when the market environment was especially volatile. Please see the endowment and investment sections for more information. I can assure you that the Investment Council will continue to act with prudence and care in its role as fiscal steward of endowed gifts. Because endowments are sources of funds that students and faculty can count on year after year, they play an especially critical role in Penn State's ability to offer scholarships, graduate fellowships, faculty chairs and professorships, and the like.

June 30, 2008, marked eighteen months since the beginning of the For the Future campaign. My sincerest thanks go to Peter Tombros, who has done an extraordinary job as volunteer campaign chair, and to the remarkable team of Penn State alumni and friends that he has recruited to provide additional volunteer leadership. Please read Peter's letter to learn more about how the philanthropic events of 2007–08 have given the campaign powerful momentum in its initial phase.

A Penn State education is a unique experience that challenges the mind, invigorates the spirit, and leaves an indelible imprint on alumni. Your generosity will help to make that experience possible for thousands of men and women, whether directly or indirectly. Thank you for your commitment to our University.

Graham B. Spanier, President
The Pennsylvania State University