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A newsletter for Foundation Directors and friends of higher education in Maryland
In This Issue
Investment Report
Campaign Report
Towson Exceeds Goal
UMUC Exceeds Goal
Trends in Philanthropy
USM News Briefs
Staff News
In Memoriam
Quick Links
Volume 5, Number 3Summer 2011
Dear Friends and Colleagues,
I think that we can all agree that this has been a summer to remember, with record-breaking temperatures, and a nail biting political debate affecting our country's financial future.  On the good news front, here at the Foundation I am pleased to report that the Endowment's investment performance was 18.7 percent for Fiscal Year 2011.

We have also been navigating some new waters with the resignations of Michael Barry and Vanessa Melendez in June (see staff news for details). Selfishly perhaps, we hated to see them go, although these new positions represent very positive career growth for these young financial professionals: It is not an exaggeration to say that, with the help of Ken Brody, Mike and Vanessa built the USM Foundation investment office as we know it today.  Eight years ago, the fund was just $444 million.  Today, the Foundation serves 17 institutions whose assets under management total $925 million.  


Both Mike and Vanessa worked hard to "download" their institutional knowledge to our remaining team to ensure a smooth transition, and our operations are functioning smoothly given the foundation they laid. 


In the wake of their departures, Foundation management and the Investment Committee developed a transition and implementation plan to guide us in building the investment team as we move forward.
First, to internal staffing news:
  • Neil Moskowitz, a long-time member of the Investment Committee, joined us on a consulting basis to help provide support for the Investment Office. Neil is the retired CFO of Credit Suisse First Boston, bringing a wealth of experience and an in-depth knowledge of our portfolio to his role.  We are very grateful for his service, and he has hit the ground running.
  • Kevin Dalmut, Senior Investment Analyst, is running the day-to-day operations of the Investment Office.  Kevin is very familiar with all our fund managers and is helping us to maintain a level of continuity in our communications with these managers. Kevin is an outstanding operations person and we have the highest confidence in his ability to help us during this transition.
  • Tom English joined us full-time as a Financial Strategist following six months as an intern for our investment office, where he was a macroeconomic strategist focused on core thematic investments.  He is a 2005 graduate of the United States Naval Academy, who then took his commission with the Air Force, attaining the rank of captain at the USAF Headquarters at the Pentagon.  In addition, Tom earned an M.A. in economics in 2009 with a focus on microeconomics and economic systems design from George Mason University. He brings a great deal of energy and analytical skill to the office.   

Both Tom and Kevin have moved temporarily to Stamford, CT, to work on the Foundation's behalf in our Investment Committee Chair David Saunders' offices.  David runs a leading fund of funds firm, K2 Advisors, and has offered both his expertise, and the tools and expertise of his team, as a resource to Tom and Kevin.


This summer, Kevin and Tom have, in particular, been hard at work in completing the valuation process for our private equity investments, so essential to our annual audit.  Valuations have been delivered to our custodian, State Street Bank, and PWC will be using this information as they complete our external audit in time for our September 15th deadline. Also, I am very pleased to announce that Tom just received word that he passed Level 1 of the Chartered Financial Analyst (CFA) exam.  We extend our congratulations to him for achieving this very significant professional certification.


As many of you now know, we are exploring three different options going forward.  One is to replace Michael Barry and keep an in-house investment structure in place.  The second is to completely outsource our asset management to a full service firm, and the third option is to hire a consultant to work with the investment committee.  


We have gathered a good bit of data on the three potential investment options we are considering as we go forward and have asked a number of firms to supply answers to some more specific follow-up questions.  I expect that, by the end of the summer, we will announce which option we feel best meets our needs and budgetary considerations.

Turning to another matter, we are very pleased to report good news involving new contracts.  First, the UMCP Foundation has agreed to terms for a new contract for us to continue to provide asset management services.  This contract is for three years with an option to renew for an additional three years.  The Board of Regents approved a new contract for us to continue to manage the Common Trust funds.  This contract is retroactive to July 1st, 2010, and is for a period of six years.


Finally, the UMB Foundation also agreed to a new contract with us for three years with an option to renew for three years.
I especially want to thank David Saunders (Investment Committee Chair), Barry Gossett (Chair of the USM Foundation Board), Walter Fatzinger (Immediate Past Chair of the USM Foundation Board) and Neil Moskowitz for the tremendous amount of time they have dedicated to this due diligence process this summer.  In the near future, they will be meeting with the Investment Committee and a few others to discuss the potential options under consideration. Given their strong leadership and deep insight, I am confident of a great outcome.
As always, please contact me at with any questions or comments.
Leonard R. Raley

Investment Performance through 6/30/2011




S&P 500

Composite Benchmark





Latest Mo






CYTD 2011






Fiscal 2011



















Note:  The Composite Benchmark uses the Endowment's actual asset class weights and the benchmark index performance for each asset class. 

Campaign Progress






















































USM Federated




Towson University Exceeds $50 Million Campaign Goal

TU Tower

Towson University's capital campaign, Growing a University, has exceeded its goal and concluded a seven-year effort to raise $50 million for student scholarships, academic programs, and community outreach.

"Achieving this important goal not only creates opportunities at Towson University," says Interim President Marcia Welsh. "It also signifies the university's entrance into its next phase of development and climb to academic excellence."  

In addition to providing enrichment for student scholars and university faculty, the funds raised by the Growing a University campaign have expanded the Towson University Foundation, which grew from $13 million to $41.6 million during the course of the campaign.


"Building endowment for a university helps to provide a solid foundation for the future of our students, academic initiatives and community partnerships," says Gary Rubin, vice president for University Advancement.


"With the tremendous support of alumni, faculty, staff, community supporters, foundations and corporations, we have had unprecedented fundraising success during a time that has been economically challenging." 

UMUC Exceeds $26 Million Fundraising Goal

UMUC announced in July that The Campaign for UMUC: Building a Legacy of Educational Opportunities has surpassed its goal of $26 million. The campaign-part of the University System of Maryland's federated fundraising initiative-reached its goal in March, and by the end of the fiscal year, had surpassed the goal by almost $500,000.


The university reached its goals thanks to several significant gifts. Most notable, perhaps, was a wholly anonymous $6 million gift that the university received in 2009.  Other notable donations include:

  • Two generous gifts in 2004 from Dr. Donald S. Orkand, a long-time member of the university's Board of Visitors, and his wife, Mrs. Kim L. Orkand, established an endowed fund for undergraduate scholarships and also created the Orkand Endowed Chair in Management and Technology in UMUC's Graduate School.
  • In 2005, UMUC received a gift in kind from the Oracle Corporation of software and technical support, valued at more than $2 million.
  • Late last year, the Kresge Foundation awarded UMUC a $1.2 million grant that will allow UMUC to develop an extensive data mining initiative to support student retention.
  • On April 2, 2011, University of Maryland University College hosted a highly successful cybersecurity gala, An Evening in Cyberspace: Supporting Tomorrow's Cybersecurity Leaders. The gala raised more than $1.2 million from generous donor support, with proceeds designated for cybersecurity scholarships. ManTech International Corp. was the gala's lead sponsor, donating $250,000.  

See UMUC's announcement  for the full story.

Trends in Philanthropy - CASE Update

The Council for the Advancement and Support of Education (CASE) reports: 


U.S. Charitable Giving Shows Uptick Following Two Years of Decline

Charitable giving in the United States grew from about $280 billion in 2009 to nearly $291 billion in 2010, an increase of 3.8 percent in current dollars, according to results released this week by Giving USA Foundation. Giving to education rose 5.2 percent to nearly $42 billion, the first increase in two years.
Full article
CBO Report Outlines Options for Changing Tax Treatment of Charitable Giving

In a May 2011 report, the Congressional Budget Office outlined options for changing the tax treatment of charitable giving.

At the request of former House Budget Committee Chairman John Spratt (D-S.C.), the CBO analyzed the following options in the report: (1) Retaining the current deduction for itemizers but adding a floor; (2) Allowing all taxpayers to claim the deduction, with or without a floor; and (3) Replacing the deduction with a nonrefundable credit for all taxpayers, with or without a floor


Note that the CBO report did not include an analysis of President Barack Obama's 28 percent charitable deduction cap proposal.


While the report highlights general effects of various policy options, the CBO acknowledges that it cannot be certain of the exact size of the effects. In particular, there is uncertainty around the extent to which taxpayers change their giving behavior in response to a change in the tax incentive.

It is unclear how and if the CBO options will be considered by lawmakers in tackling the budget deficit.  Lawmakers could potentially be interested in charitable deduction options that increase revenue while having little to zero impact on the level of giving. CASE will continue to urge Congress to protect the value of the charitable deduction.
Read more
CASE, Nonprofit Coalition Urge Lawmakers to Protect Value of Charitable Deduction

CASE and 22 other nonprofit associations and organizations have sent a joint letter to the U.S. House and Senate leadership urging lawmakers to protect the value of the charitable deduction by opposing efforts to cap the value of itemized deductions for charitable contributions.

President Barack Obama and House and Senate leaders are currently trying to reach an agreement on a deficit reduction package that would be tied to raising the debt ceiling. In the negotiations, President Obama continues to advocate for tax proposals in his FY2012 budget, including his proposal to cap the charitable deduction at 28 percent for high-income taxpayers (individuals earning $200,000 annually, $250,000 for households). Read more.
USM News Briefs

Plasmonix Inc., a biotech startup whose technology comes from research at the University of Maryland, Baltimore County, recently announced it raised $1.5 million of a planned $2 million Series A equity offering. The investment was led by the Maryland Healthcare Product Development Corp. Plasmonix is working on commercializing a technology called Metal Enhanced Fluorescence (MEF), which was developed at UMBC. Basically, the technology enables ast detection of heart attacks, sexually transmitted diseases, and salmonella within 20 seconds. USM Foundation Board member William M. Gust, II is Co-Founder, President and CEO of the company. Other founders are MEF inventor Chris Geddes and CEO and Chairman John Holaday.

USM Foundation Honorary Director Gary Alexander again was named as a Super Lawyer in the field of Energy and Natural Resources.  An additional honor comes his way for being named in the Top 50 of all Maryland Lawyers in all fields of practice.
On May 23, the USM Cyber Security Task Force announced the publication of its report at a press conference attended by Governor Martin O'Malley, Senator Barbara Mikulski, Congressman Dutch Ruppersberger, Chancellor William E. Kirwan, and others.  To read the full analysis with recommendations, please view the report here.  To view a recording of the event, please see the video.
Chancellor Kirwan has appointed Mortimer H. Neufville, Ph.D., former executive vice president with the Association of Public and Land-grant Universities (APLU) and current APLU consultant, as interim president of the University of Maryland Eastern Shore (UMES). His appointment to the interim position is effective August 16. President Thelma Thompson has announced her retirement effective August 15.
USM at Hagerstown Executive Director C. David Warren is leaving his post to become the vice president of academic affairs at Hagerstown Community College.  USMH faculty member John Stoothoff has been appointed Interim Executive Director effective July 25.  Frostburg State University President Jonathan Gibralter will lead a search for a new executive director of USMH with the support of USM Chancellor William E. "Brit" Kirwan and Senior Vice Chancellor for Academic Affairs Irv Goldstein.  The committee will be appointed in August.
USM Regent Tom McMillen has been named Inaugural Board Chair of the National Foundation on Fitness, Sports and Nutrition (NFFSN).  NFFSN was launched May 10 by Secretary of Health and Human Services Kathleen Sebelius at a ceremony in the Russell Senate Building.  The Foundation will work collaboratively with the President's Council on Fitness, Sports and Nutrition and seek to secure funding and other resource contributions that support the Council in helping all Americans get active, play sports and eat healthier.  For more information, see the press release.
Renowned saxophonist Clarence Clemons, who played with Clarence Clemons UMESBruce Springsteen's E Street Band, passed away June 18.  He was 69.  Clemons attended University of Maryland Eastern Shore - then known as Maryland State College - as part of the Class of 1964.  While there, the Norfolk, Va., native played football as center and guard and considered going pro.  His autobiography, Big Man: Real Life and Tall Tales, was published in 2009.  For more information, see UMES's press release.
Staff News 
Michael Barry, USM Foundation Chief Investment Officer, has taken the position of Chief Investment Officer at Georgetown University, where he is responsible for more than $1.2 billion in total assets under management, including the endowment, and a staff of seven.  This represents a homecoming of sorts for Michael, who has deep family connections with Georgetown.  Michael had been with the Foundation since 2003.
Kate Koyfman has joined the Foundation as a staff accountant beginning May 23. She has more than seven years of accounting experience.  Prior to joining the Foundation, Kate worked as an accounting manager at the Federation of American Scientists in Washington, D.C. She has a B.S. in Finance from the University of Maryland, College Park, and she recently completed an M.S. in Accounting and Finance at UMUC. She is currently studying for her CPA exam and plans to take the first part this summer.  Kate has two children (2 boys, ages 12 and 15). In her spare time, she likes to read and quilt. 
Vanessa Melendez, USM Foundation Director of Investments, has taken the position of senior investment officer at the Metropolitan Museum of Art City. In this role, Vanessa is the #2 investment person working directly for CIO Suzanne Brenner in managing the Museum's $2.5 billion endowment.  This move allows Vanessa to return to her New York roots and to work with one of the most exciting investment teams in the nonprofit world. 


Bill Wojcik joined the Foundation as Director of Business Operations on June 13.  He most recently worked for Blackbaud, Inc., as a senior financial consultant, and has over 25 years of experience in financial management and financial systems implementation. Bill graduated from Bradley University in Peoria, Il., with a bachelor's of science in accounting and is a certified public accountant.  He is married, has two boys (22 and 20), and is a competitive runner in his free time (currently training for Chicago Marathon).
In Memoriam 
USM Chancellor Emeritus John S.Toll
John TollJohn S. Toll, Ph.D., 87, prominent physicist and academic administrator, passed away July 15.  Dr. Toll led the consolidation of the five-campus University of Maryland System with the six campuses of the Maryland Board of Trustees of State Colleges and Universities in 1988, creating the current University System of Maryland.  He was the first chancellor of the USM. 

Dr. Toll was born in Denver, Co., in 1923. He earned his bachelor's degree at Yale with highest honors, then served in the Navy during WWII, and returned from the War to earn his doctorate at Princeton.  At the age of 29, he became chair of the physics department at MUniversity of Maryland, which is now named for him. During his tenure, he raised the profile of the physics department to national prominence. 

In 1965, Dr. Toll became founding president of the institution now known as Stony Brook University. In 1978, he returned to Maryland to become the president of the five campus University of Maryland system; he then served as the USM's first chancelllor beginning in 1988. At age 71, he became the president of Washington College in Chestertown, Md.  Read the full Washington Post article here .

Newsday listed him among '100 Who Shaped the Century.'  He is survived by his wife of more than 40 years, Deborah Taintor Toll, as well as two daughters and a grandson.


Please see Chancellor William E. Kirwan's statement about the passing of Dr. Toll. 



Thursday, September 8, 2011, 2:00 p.m.
Elsie and Marvin Dekelboum Concert Hall
Clarice Smith Performing Arts Center
University of Maryland
College Park, MD  20742


Reception immediately following the service
Grand Pavilion (located outside the Dekelboum Concert Hall)
Clarice Smith Performing Arts Center


Complimentary parking will be available in the Stadium Drive Parking Garage, directly across the street from the Clarice Smith Performing Arts Center.   Please follow signs from the campus entrances.  Link to parking and directions:


Ms. Sapienza Barone
Assistant to the President
University of Maryland
(301) 405-5790






Chancellor Kirwan to Present to GBC, "Advancing Maryland's Innovation Economy," September 27 

Chancellor William E. "Brit" Kirwan will speak about the new USM strategic plan, Powering Maryland Forward: USM's 2020 Plan for More Degrees, A Stronger Innovation Economy, A Higher Quality of Life, and how the USM and its institutions help to catalyze Maryland's economy through research, teaching, and collaboration as part of the Greater Baltimore Committee's speakers series.

Date: Tuesday, September 27, 2011
Registration Time: 7:30 AM
Program Time: 8:15 AM - 9:30 AM
Location: Greater Baltimore Committee Board Room

                111 South Calvert Street, Suite 1700

                Baltimore, MD 21202
Cost : Members : $25.00 - Non-members : $50.00


For more information and to register for the event, go to the GBC website .

Diana White