2013 - 2014 Phi Kappa Sigma Annual Report

2013-2014 Annual Report

Phi Kappa Sigma International Fraternity

2 Timber Drive Chester Springs, PA 19425

P 610.469.3282 F 610.469.3286www.becomeaphikap.org www.alwaysaphikap.org www.pks.org

PHI KAPPA SIGMAINTERNATIONAL FRATERNITY, INC.


Undergraduate Chapters and Colonies Β, Princeton UniversityΖ, Franklin & Marshall CollegeΘ, Kenyon CollegeΜ, Tulane UniversityΟ, University of Oklahoma Ρ, University of Illinois Σ, University of Texas Τ, Randolph Macon CollegeΨ, Pennsylvania State UniversityΑΒ, University of Toronto ΑΔ, University of Maine ΑΕ, Illinois Institute of TechnologyΑΗ, University of South CarolinaΑΘ, University of Wisconsin ΑΚ, University of Alabama ΑΜ, Massachusetts Institute of TechnologyΑΝ, Georgia Institute of TechnologyΑΞ, Purdue UniversityΑΣ, University of Minnesota ΑΥ, University of Washington ΒΔ, Michigan State UniversityΒΗ, University of North TexasΒΘ, Texas Christian University

ΒΛ, Northern Illinois UniversityΒΜ, University of South Alabama ΒΡ, University of California at RiversideΒΧ, Clarkson UniversityΒΩ, Radford UniversityΓΓ, Carthage CollegeΓΞ, George Mason UniversityΓΣ, Rutgers University at New BrunswickΓΨ, University of Massachusetts at LowellΔΗ, McDaniel CollegeΔΟ, Ramapo CollegeΔΠ, University of Indiana ΔΡ, Ursinus College ΔΣ, University of Maryland at Baltimore CountyΔΥ, Virginia Commonwealth UniversityΔΦ, New York UniversityΔΧ, Queens University of CharlotteΔΨ, Temple UniversityΔΩ, University of HartfordΑΨ, University of California at Los Angeles (Colony)University at Buffalo (Colony)

Upcoming Expansion Opportunities

Alumni Chapters and AssociationsBadger Skulls Alumni Association (Madison, WI)Beta Lambda Alumni Chapter (DeKalb, IL)Beta Psi Alumni Chapter (Pullman, WA)Big Easy Skulls Alumni Association (New Orleans, LA)Capital City Skulls (Washington DC Metro Area)Dallas Fort Worth Alumni Chapter (Dallas, TX)

Mill City Skulls Alumni Chapter (Lowell, MA)Tri-State Alumni Association (New York City Metro Area)Skull South Alumni Chapter (Atlanta, GA)Skullumni: The Alpha Delta Alumni Chapter (Orono, ME)Ursinus College Alumni Chapter (Collegeville, PA)Zeta Alumni Chapter (Lancaster, PA)

2016-2017University of OregonState University of New York at Potsdam Arizona State University Southeastern Louisiana University

2018-2019University of California at Berkley Boise State University James Madison University

2017-2018Open

2015-2016University of Pennsylvania Vanderbilt UniversityOklahoma State UniversityUniversity of North Carolina – Chapel Hill

2014-2015University of New OrleansWashington State University Texas Tech University Cornell University

A Letter From The Grand AlphaTwo years ago, following the 96th Grand Chapter in Las Vegas, the Fraternity Executive Board knew that changes would be necessary for our beloved Fraternity to prosper in the future. Particularly since our Fraternity has a storied history as a leader in the fraternal movement. Many policies, procedures and programs employed by other organizations were originally championed and implemented by Phi Kappa Sigma. However, most of our pioneering spirit was executed during the first 50 years of our existence. Since that point we have slowly declined in relevance within the North American Interfraternity Conference.

After a period of organizational introspection, the Executive Board came to the conclusion that in order to return to our rightful position of leadership within the fraternal movement, a multi-year, and thoughtfully-crafted strategic plan was required. Therefore, we spent a majority of the last two years to that end.

At the 97th Grand Chapter in Nashville a three-year, strategic plan was presented. We have already made substantial progress in several areas of this plan, and we are committed to achieving the initiatives set forth in this plan.

In fact, we have already made progress in several areas pertaining to technological upgrades to our infrastructure. We have launched a new Fraternity website as well as a new website geared specifically at recruitment and expansion. This involved a certain degree of re-branding the digital image of the organization. We also launched PhiKapConnect by Chapter Spot, the online tool for chapter management and communication. This fall we will go live with a new online community for our Alumni to network and also modernize our fundraising operations.The decision was also made to more than double staff size to facilitate increased communication and service levels for our undergraduate Chapters. The length of chapter visits was increased and the education conducted during said visits was standardized. A regional consultant model was adopted so that Educational Consultants could live closer to the Chapters that they serve to minimize travel expenses and promote interaction. A change in policy was also adopted as it relates to Chapter discipline. A concerted effort has been made to help Chapters in need rather than merely issuing penalties. The “show cause” process that Chapters have become familiar with was amended to include a “wellness check” stage in which we try to work collaboratively with the chapter to find solutions before jumping to sanctions.

Our expansion pipeline has never been more active. For the first time in more than a decade, we have a legitimate plan as to how we will invigorate the Fraternity through the reopening of closed Chapters and selectively adding Chapters at new high quality institutions. This is seen as providing benefit to the Fraternity in two areas. First, it will increase the overall size of the Fraternity and second, it will revive relationships with the alumni from those Chapters.

Possibly the most fascinating development during the past year has been the emergence of the National House Corporation. Phi Kappa Sigma has been one of the only founding members of the NIC to never begin an organized building plan. For us to remain competitive in the Fraternity world, it is necessary for us to embrace this initiative and give it the opportunity to grow and flourish.

Finally, we are very proud of the new educational program which was launched during the summer of 2013, the Carroll K. Simons Institute. This program is focused on providing additional training to the leaders of our undergraduate Chapters and includes courses which are designed to better equip our officers to manage their Chapters.

All in all, this has been a very busy and sometimes hectic period within our Fraternity and we want to extend a sincere thank you to all of the undergraduates and volunteers who have been involved in the process. As a volunteer based organization, it would not be possible for Phi Kappa Sigma to accomplish what is necessary without their help.

We look forward to the future progress that will be made and encourage everyone to step up and get involved.

On Behalf of the Executive Board,

Douglas W. Opicka, AE ‘97Grand Alpha



2013-2016 Strategic Plan ProgressLegend: Early Stage In Progress Complete

Pillar I: Growth and ExpansionVision - Increase the size and scope of the Fraternity.Outcome - 2200 Undergraduate members by the year 2020.

Objective 1: Expansion to New Campuses Review and modernize the process for chapter expansion. Develop a tool to assist with expansion planning and management. Develop a written program of training and development for expansion staff and outline a program for staff retention and growth.

Objective 2: Improve Recruitment Results Actively support collaborative goal setting among chapters, volunteers and staff. Propose a constitutional amendment to include a Recruitment Chair as a chapter officer. Define the Phi Kappa Sigma product and brand and consistently market them. Implement a national infrastructure for recruitment to include lessons learned, sharing, media, etc. Regularly update and maintain BecomeAPhiKap.org.

Objective 3: Improve Membership Retention Rates Develop value proposition for growing chapter membership. Develop a retention strategy to show value to undergraduate seniors.

Objective 4: Reduce Loss Rate of Existing Chapters Recruit, train, and appoint a Chapter Advisor for 100% of chapters who is fully engaged with the chapter. Develop a support program to guide and mentor chapters for 24-36 months immediately following chartering.

Pillar II: Chapter OperationsVision - Improve Chapter Operations and PerformanceOutcome - 90% of Chapters participate in training programs.

Objective 1: Improve Functional Ability of Chapter Officers Develop and produce online & video training tools in chapter operational subjects.

Objective 2: Modernize Support and Resources Develop a standardized reporting system for Educational Consultant visits of chapters. Develop file sharing folders in the ChapterSpot online tool.

Objective 3: Promote Inter-Chapter Communications Develop a template for lessons learned. Develop and deploy a collaboration tool within ChapterSpot online system.

Objective 4: Refine Mitchell Chapter Standards Accreditation Program Conduct an analysis of trends in Mitchell Chapter Standards achievement. Refine Mitchell Chapter Standards based on analysis.


Pillar III: Alumni Relations and FundraisingVision - Increase Alumni Engagement and Improve Fundraising PerformanceOutcomes - Achieve average fundraising results within our interfraternal peer group.

Objective 1: Establish Major Donor Program Add a full-time Director of Member Services position to the Fraternity staff to coordinate alumni engagement, alumni events, alumni chapters, and fundraising. Add the volunteer position of Alumni Development Chair.

Objective 2: Cultivate Young, First-Time Donors Produce professional videos to educate members about alumni events, annual campaigns and other giving opportunities. Develop and maintain an inviting website presence for the Fraternity and Foundation that provides timely content for our constituent audiences. Implement a Giving Program structure, inclusive of giving opportunities, scholarships, programs, incentives & recognition, directed donor drive. Implement a Volunteer Giving Program that encourages recurring gifts with corresponding incentives. Implement an Undergraduate Giving Program that encourages annual gifts with corresponding incentives.

Objective 3: Modernize Donation Technology Develop and produce professional marketing and collateral materials to educate members about alumni events, annual campaigns and other giving opportunities and entice them to participate or give. Enable donor support for Kick-Starter type campaigns to promote giving for very specific projects or efforts, such as an endowment for specific scholarship or program or a specific educational effort. Research and deploy a state-of-the-art Software/technology platform to support membership and fundraising development.

Objective 4: Improve Foundation Branding Develop and produce a professional, corporate-style annual report for the Fraternity and the Foundation that positions our organizations as efficient and innovative leader in the fraternal world.

Objective 5: Foster a Life-long Connection with Alumni Provide regular communication to Alumni members through a monthly electronic update and newsworthy social media messaging.

Pillar IV: International OperationsVision - Improve International Fraternity Operations and PerformanceOutcome - 75% of our members feel positive about the International Fraternity.

Objective 1: Deliver High Quality Customer Service Develop a constituent survey to evaluate Fraternity operations. Conduct a constituent survey to evaluate Fraternity operations.

Objective 2: Create Volunteer Management Program Conduct a review of the Cornerstone volunteer training program. Revise Cornerstone or create new volunteer training program. Conduct a trial of the new/revised volunteer training program. Deploy new/revised volunteer training program.

Objective 3: Develop Integrated Communications Program Identify audience and needs for comprehensive Fraternity communications plan. Develop comprehensive Fraternity communications matrix. Review/modify touchpoint document. Develop detailed plans for comprehensive communication plan, including types and tools.


Mitchell Chapter Standards 2013-2014The Mitchell Chapter Standards Program (MCS) was implemented in 1994 to help us work together toward achieving the values and objectives given to us by our Founding Fathers. As the core values are our compass, the MCS program is our map to these objectives. By living our values and working toward our objectives, we will ultimately give ourselves the Phi Kap experience. Mitchell Chapter Standards strengthens us through the development in the areas of our Doctrine of Excellence: Fraternity, Financial Commitment, Personal Conduct, Leadership, Scholarship, Collegiate and Community Relations, Personal Development, and International Support. The intent of the program is to provide the Chapter and the International Fraternity with a means to objectively review our performance on an annual basis. The following chart displays how our Chapters performed on MCS in the 2013-2014 academic year.

Alabama Carthage Clarkson F&M George Mason Georgia Tech IIT Illinois Indiana Kenyon Maine Mass-Lowell McDaniel Michigan StateMinnesota MIT North Texas Northern Illinois NYU Oklahoma Penn State Princeton Purdue Queens Radford Ramapo Randolph Macon Rutgers South Carolina TCU Temple Toronto Tulane UC-Riverside UMBC Ursinus VCU Washington Wisconsin

Collegiate-Community

Relations

Financial Commitm

ent

Fraternity

Leadership

“Personal C

onduct”

“Personal D

evelopment”

Scholarship

International

Support

Key: Unsatisfactory Satisfactory Exceptional


Awards and RecognitionNeal L. Hospers Outstanding UndergraduateWinner Holden Richards, Θ, Kenyon College

Runner Up Khiem Tran, ΔΥ, Virginia Commonwealth University

Chapter AwardsFounders Cup ΑΕ, Illinois Institute of Technology

Carroll K. Simons Outstanding Chapter ΒΔ, Michigan State University

Distinguished Chapters ΑΕ, Illinois Institute of TechnologyΒΧ, Clarkson UniversityΔΡ, Ursinus College Ζ, Franklin & Marshall College

Chapters of Excellence Θ, Kenyon CollegeΔΗ, McDaniel CollegeΨ, Pennsylvania State University ΑΘ, University of WisconsinΒΩ, Radford UniversityΓΞ, George Mason University

Most Improved Chapter Θ, Kenyon College

Most Philanthropy Raised ΓΞ, George Mason University ($6,241)Ζ, Franklin & Marshall College ($3,470)ΑΗ, University of South Carolina ($3,065)

Most Community Service Hours Μ, Tulane University (57.6 hrs/man)ΑΘ, University of Wisconsin (55.5 hrs/man)ΑΔ, University of Maine (52.8 hrs/man)ΔΧ, Queens University of Charlotte (52.0 hrs/man)

Volunteer of the Year Walter Jaeger, ΒΗ, University of North Texas

Alumnus of the Year Al Scates, ΑΨ, University of California at Los Angeles

Most New Initiated Brothers ΔΠ, University of Indiana (55)ΒΘ, Texas Christian University (31)ΑΕ, Illinois Institute of Technology (24)ΓΞ, George Mason University (24)

Recruitment Growth Excellence ΒΡ, University of California at Riverside (+95%) ΑΜ, Massachusetts Institute of Technology (+94%)ΔΠ, University of Indiana (+90%)Outstanding Financial Management ΔΗ, McDaniel College

Campus Scholastic Achievement ΑΕ, Illinois Institute of TechnologyΟ, University of Oklahoma

Chapter Scholastic Achievement Β, Princeton University (3.40 GPA)ΔΨ, Temple University (3.38 GPA)

Chapter Scholastic Improvement ΑΕ, Illinois Institute of Technology (+0.15)ΑΗ, University of South Carolina (+0.11)

Outstanding Chapter Website ΒΗ, University of North Texas

Outstanding Chapter Newsletters ΑΕ, Illinois Institute of Technology ΔΥ, Virginia Commonwealth University


2014 Grand ChapterConvened July 24 – 27, 2014 at the DoubleTree Hotel in Downtown Nashville.Attended by 150 undergraduate members, alumni members, officers and staff.

Key Legislation Adopted• Updated non-discrimination clause to include physical ability and sexual orientation as protected areas.• Added the authority to conduct Executive Committee business via telephone and electronic mail.• Added the officer position of Chi as Recruitment Chairman of the Chapter.• Authorized the formation of the National Housing Corporation of Phi Kappa Sigma, LLC.• Added additional flexibility in regards to staff positions, titles, and requirements. • Updated our scholastic standards to comply with the highest of standards of Phi Kappa Sigma, member institutions, individual Chapters, or associations to which Phi Kappa Sigma belongs, such as the North American Interfraternity Conference.

Grand Officer Elections for 2014-2016Grand Alpha Douglas Opicka ΑΕ, Illinois Institute of Technology - ‘97Grand Beta Michael Palladino ΑΝ, Georgia Institute of Technology - ‘06Grand Pi Sean McCann ΑΕ, Illinois Institute of Technology - ‘07Grand Sigma David Smith ΓΤ, University of New Hampshire - ‘06Grand Tau Hamilton F. Smith Φ, University of Richmond - ‘83Grand Theta Kevin Olsavsky Ψ, Pennsylvania State University - ‘86Grand Theta Richard Correz ΒΡ, University of California at Riverside - ‘94

Next Grand ChapterThe 98th Grand Chapter will be held July 28th thru 31st of 2016 in Chicago, Illinois.

Grand Chapter 201698th Grand Chapter | July 28th - 31st 2016 | Chicago, Illinois

Membership Statistics

2010 2011 2012 2013 2014 Total Membership 1758 1774 1759 1818 2030

2010 2011 2012 2013 2014 Number of Chapters & Colonies 51 51 45 46 46 Average Chapter Membership 34 34 39 39 44

20

30

40

50

1700

1750

1800

1850

1900

1950

2000

2050


International OperationsEducational Programs• Carroll K. Simons Institute in August 2013• Men of Honor in January 2014• Phi Kappa Sigma Male College at Grand Chapter• Chapter Recruitment Workshops• Chapter Risk Management Workshops• Chapter Ritual Exemplification Workshops

Philanthropy and Community Service• Reengaged the Leukemia Lymphoma Society as our international philanthropy partner.• Performed over 23,000 hours of community service in local communities.• Raised over $27,500 for charitable organizations in local communities.

Fraternity Service Improvements• Redeveloped our website at www.pks.org.• Launched PhiKapConnect tool for chapter management• Improved service to chapters through additional Consultants so that each Consultant served no more than 15 chapters. • Published an electronic Chapter Update each month throughout the academic year.• Published an electronic Alumni E-News each month.• Redeveloped and modernized our process and materials for chapter expansion.• Completed first phase of transition to a tool for membership management, fundraising accounting, and alumni engagement.• Developed system for chapters to share lessons-learned.• Established a support program to guide and mentor chapters for 36 months immediately following chartering.• Revised and published Skull Sessions, our membership manual, for its 24th edition.• Implemented a new system of chapter discipline to focus on more corrective education at earlier stages than simply punitive steps at more serious stages.

International Headquarters Staff • Mark Logsdon, North Texas ‘12 was named the new Director of Expansion, planning and overseeing all Expansion efforts for the Fraternity.• Ronald Stranix, Ursinus ‘12 was named the new Director of Member Services. This role was created to not just provide great customer service to our undergraduates, but also to our alumni.• Tim Schug, IIT ‘07 was named the new Deputy Executive Director. In this role, Tim will be overseeing the administrative functions of the International Headquarters and working to improve our Fraternity operations.

National Housing Corporation of Phi Kappa Sigma,LLCThe new National Housing Corporation of Phi Kappa Sigma (NHC) completed its first year of operations in June. The NHC has been heavily involved in short-term and long-term housing solutions for the Rho Chapter at the University of Illinois. In addition, the NHC has already been a housing resource of ideas and strategies for chapters at Indiana, Tulane, Clarkson, Toronto, and Franklin & Marshall. Phi Kappa Sigma was one of the only founding members of the NIC to have never had an organized property plan. For us to remain competitive in the Fraternity world, it is critical for us to embrace this new resource.

23,450Hours of Community Service

in the last academic year

PHI KAPS DID....$$$27,500

in support of local charitysduring the past year

PHI KAPS RAISED....


Fiscal OperationsOperating Statement Aug ‘13 - Jul ‘14 Aug ‘12 - Jul ‘13 Income 1-3000 · Contributions 1-3100 · Grant Income 182,425.00 70,000.001-3200 · Contributions - Other Direct 2,880.12 4,928.27Total 1-3000 · Contributions 185,305.12 74,928.271-4000 · Restricted Income 1-4100 · Royalties & Affinity (SetAside) 16,274.41 13,085.52Total 1-4000 · Restricted Income 16,274.41 13,085.521-5000 · Revenue 1-5100 · Member Fees 384,725.00 349,024.001-5200 · Grand Chapter Revenue 135,320.25 65,785.001-5300 · Program & Event Revenue 12,750.00 12,405.001-5500 · Fees 10,201.09 8,315.941-5600 · Investment Income 668.82 39,036.751-5700 · Sale of Supplies 7,175.00 7,432.001-5800 · Miscellaneous Revenue 25,993.74 35,876.231-6000 · Insurance Program Income 274,702.84 328,611.68Total 1-5000 · Revenue 851,536.74 846,486.60Total Income 1,053,116.27 934,500.39Cost of Goods Sold 20,266.68 7,683.74Gross Profit 1,032,849.59 926,816.65

Expense 1-7000 · Employee Expenses 1-7100 · Employee Compensation 335,939.53 266,219.871-7200 · Employee Benefits 44,188.64 35,182.591-7300 · Payroll Taxes 31,317.26 25,431.811-7400 · Payroll Service 2,137.10 1,778.201-7500 · Employee Travel & Expenses 113,001.46 65,329.391-7600 · Recruiting & Interviewing 45.00Total 1-7000 · Employee Expenses 526,583.99 393,986.861-8000 · Operating Expenses 1-8100 · Administration Expenses 13,279.65 33,941.801-8200 · Communications & Technology 33,299.75 32,067.651-8300 · Postage and Shipping 4,135.08 11,141.981-8400 · Headquarters Occupancy 25,974.20 22,524.711-8500 · Member Services & Supplies 6,658.31 1,041.741-8600 · Printing & Publications 26,778.40 23,095.491-8800 · Conferences and Meetings 196,052.69 134,279.401-8900 · Miscellaneous 10,258.51 21,944.481-8000 · Operating Expenses - Other 1,136.92Total 1-8000 · Operating Expenses 317,573.51 280,037.251-9000 · Insurance Program Expense 1-9100 · Insurance Policies 182,060.40 1-9200 · Insurance Fees 20,286.00 1-9300 · Risk Management 7,261.03 1-9400 · Education and Prevention 9,405.72 15,120.001-9000 · Insurance Program Expense - Other 158,330.34Total 1-9000 · Insurance Program Expense 219,013.15 173,450.341-9900 · Misc Expenses Prior Year 13,005.28Total Expense 1,076,175.93 847,474.45

Net Income (43,326.34) 79,342.20


Income and Expenses at a Glance

Balance Sheet Aug 31, 2014 Aug 31, 2013ASSETS Current Assets Checking/Savings 855,613.93 818,533.33 Accounts Receivable 110,985.68 148,839.03 Other Current Assets 76,904.24 69,222.61Total Current Assets 1,043,503.85 36,594.97Fixed Assets 157,076.74 157,076.74Other Assets

TOTAL ASSETS 1,200,580.59 1,193,671.71

LIABILITIES & EQUITY Liabilities Current Liabilities 44,600.28 43,056.11 Long Term Liabilities 4,114.32 4,114.32Total Liabilities 48,714.60 47,170.43Equity 1,151,865.99 1,146,501.28

TOTAL LIABILITIES & EQUITY 1,200,580.59 1,193,671.71

Income SummaryAugust 2013 through July 2014

Expense SummaryAugust 2013 through July 2014

1-6000 Revenue 53.93%2-4600 Insurance Program Income 28.08%1-4000 Contributions 17.04%1-5000 Restricted Income (Education) 0.96%

Total $1,088,324.30

1-7000 Employee Expenses 50.21%1-8000 Operating Expenses 27.45%1-9000 Insurance Program Expenses 20.40%1-6799 Cost of Goods Sold 1.94%

Total $1,047,297.32

About Phi Kappa SigmaOur VisionLifelong growth and development of the fraternity and its members.

Our MissionThe Objects of Phi Kappa Sigma Fraternity shall be the promotion of good fellowship and the cultivation of the social virtues among our members; the protection of just rights and the advancement of the best interests, present and future, individual and collective, of all those who shall be associated together as members of this Fraternity; the encouragement of good scholarship and the breadth of training for our members; and cooperation in the educational and cultural programs of institutions of higher education in which our Chapters are located.

Core ValuesTrustHonorRespectKnowledgeWisdomResponsibilityIntegrity

Objectives for a Phi KapScholarshipFraternityPersonal ConductFinancial CommitmentCollege/University

Documents

2013 - 2014 Phi Kappa Sigma Annual Report