Thank you for helping to make the twelve months ending June 30, 2007, a landmark year in philanthropy at Penn State. The University received a record $190.3 million in gifts from more than 143,000 alumni and friends, both all-time highs. I extend to you, on behalf of the faculty, students, and staff, my deepest appreciation for your extraordinary generosity.

This historic level of philanthropy is a strong vote of confidence in Penn State's ability to carry out its mission of teaching, research, and outreach. It also reflects the successful leadership of Art Nagle, who headed our volunteer fundraising efforts over the past four years. Art deserves a standing ovation from the Penn State family.

On January 1, 2007, Penn State began the leadership gifts phase of a new capital campaign that will help it realize its full potential as the nation's most comprehensive student-centered research university. Peter G. Tombros, a veteran business executive and longtime Penn State volunteer, chairs the campaign. See his message in this report for more information about this exciting initiative.

This report highlights five leadership gifts received this past fiscal year — gifts that exemplify the diverse ways private support is changing our academic landscape:

• William and Joan Schreyer continued their support of the Schreyer Honors College with a new gift of $25 million for endowment.
• Lewis Katz pledged $15 million to the Penn State Dickinson School of Law for facilities at the Carlisle and University Park campuses.
• Highmark Inc. committed $25 million for medical research and facilities at Penn State Milton S. Hershey Medical Center.
• J. Lloyd and Dorothy Huck directed $20 million to support teaching, research, and other academic activities for the Huck Institutes of the Life Sciences.
• Charles H. “Skip” Smith gave $10 million to begin construction of The Arboretum at Penn State.

The report also highlights Trustee Scholarships, which include matching annual funds from the University, and target students who have financial need. I am committed to making sure that qualified students are able to attend Penn State regardless of their financial circumstances. Undergraduate scholarship support is the number one priority of our new campaign.

Every gift, at every level, is important. Collectively, gifts have the power to create new learning opportunities for faculty and students, increase the University's worth to the Commonwealth and the nation, and enhance the value of a Penn State degree.

Thank you for all that you do for Penn State. I look forward to your continuing support.

Graham B. Spanier, President
The Pennsylvania State University