FY20 Q3 Board Meeting Packet

BHEF Board of Directors Meeting, April 20, 2020 BHEF Board of Directors Meeting April 20, 2020 1:00 p.m. – 3:00 p.m. EST Please join the video conference using this link. You may also dial in using your phone. 1-408-650-3123 • Access Code: 963-187-869 AGENDA 1:00 p.m. Business Meeting 1. Welcome and Overview – Randy Woodson 2. Approval of the FY20 Q2 Board of Directors Meeting Minutes – Randy Woodson (Tab 1) 3. Chief Executive Officer’s Report – Brian Fitzgerald (Tab 2) 4. Committee Reports – Randy Woodson a. Finance and Audit – Brian Fitzgerald (Tab 3) b. Membership – Jeff Armstrong (Tab 4) 5. Nomination of Vice Chair and Review of the Class of 2023 Board Slate – Randy Woodson (Tab 5) 6. Closing Remarks – Randy Woodson 2:15 p.m. Executive Session Tab 1 – FY20 Q2 Board of Directors Meeting Minutes BHEF FY2020, Q2 Board of Directors Meeting Minutes | 1 BHEF Board of Directors Meeting February 13, 2020 2:30 PM EST Board of Directors Meeting Minutes Attendees Board Members: Joseph Aoun, Jeff Armstrong, John DeGioia, Nariman Farvardin, Brian Fitzgerald (ex officio), Mike King, Mary Papazian, Brian Roach, Tim Sands, Randy Woodson. Membership Committee Member: Marty Martin (attended only the membership committee report portion of the Board meeting in lieu of membership committee phone call prior to this meeting). BHEF Staff: Suzanne Amoonarquah, Steve Barkanic, Stephanie Blochinger, Stacey Brown, Janet Chen, Ursula Gross, Amanda Pumphrey, Terah Speigner, Jennifer Thornton, Danielle Troyan. Welcome and Overview Board Chair Randy Woodson opened the meeting at 2:30 p.m. He welcomed members and provided an overview of the agenda, highlighting the focus on upskilling, valuable market intelligence, and the significance of the National Science Foundation (NSF) grant to BHEF’s ongoing work. Approval of the FY20 Q1 Board of Directors Meeting Minutes Woodson asked for a motion to approve the FY20 Q1 Board of Directors Meeting Minutes. The motion was made and seconded. The minutes were unanimously approved. Chief Executive Officer’s Report Before taking the Board through the CEO’s Report, Brian Fitzgerald reflected on BHEF’s tremendous success in 2019. Fitzgerald noted that BHEF is at an inflection point, citing IBM research showing that 120 million employees in the top 12 economies of the world will need retraining in just the next three years. The work of BHEF has never been more critical. Fitzgerald highlighted two recent publications, including one showcasing the successful Workforce Partnership Initiative (WPI) with Business Roundtable. The newest publication to be released this spring details the success of the NSF grant working with five BHEF members and partners to demonstrate the impact of deep engagement by STEM-driven businesses in areas BHEF FY2020, Q2 Board of Directors Meeting Minutes | 2 such as work-based learning and providing pathways for STEM students from community colleges to four-year programs. Strategic Opportunities in 2020-2021 In 2020-2021 BHEF will execute a strategy to strengthen BHEF’s brand as a national thought leader in developing and deploying digital upskilling ecosystems. BHEF will continue to build brand recognition and communications capabilities that increase the visibility of its market intelligence (MI) publications and thought leadership (TL) events, while positioning BHEF as the national leader in talent ecosystem development. BHEF plans to expand its TL role by partnering with PwC on a digital upskilling report focused on diversity and inclusion, co-hosting a spring or summer release event. The C-Accel grant is transitioning to Phase II, enabling BHEF to utilize grant funding in the DC- Maryland-Virginia (DMV) region to build scalable models for BHEF members and partners to replicate around the country to WPI sites and beyond. BHEF’s goal is to support members and partners in digital talent ecosystem replication, such as in New England. Building on a longstanding partnership with John Wiley and Sons and leadership in Asia-Pacific Economic Cooperation (APEC), BHEF was invited to serve as the U.S. leader in planning for the OECD Global Summit on Digital Skills in October 2020. BHEF’s NSF Convergence Accelerator (C-Accel) STEM Grant Phase I BHEF leveraged the C-Accel grant to measure DMV region digital upskilling demand and assess the capacity for upskilling by local higher education (HE). BHEF conducted granular research with Emsi to build deep understanding of the employment demand and the gaps in skills in six digital tech areas: Cyber & Information Security, AI/Machine Learning, Cloud, Data Analytics, Software & Programming, and IT Networking. The pathway analysis allows students and employees to see opportunities to move through a series of positions and skills to cloud “destination jobs.” Upskilling MI revealed gaps in the tuition reimbursement model, offered by 75% of companies but resulting in only a 35% participation rate, and businesses state they do not see a positive ROI for these programs. Organizational cultures must evolve to continuous learning, with an emphasis on employees’ acquiring knowledge rather than tuition toward a degree. The HE landscape analysis exposed a shortfall in meeting employers’ desire for affordable, short, flexible, and virtual learning options, which are inconsistent with the HE delivery model. HE must be incentivized to unbundle offerings and repackage them into stackable credentials for employees. Learners want to ensure that what they ultimately gain is recognized and transferable. Employers prefer that HE create coursework specifically for the desired outcome, BHEF FY2020, Q2 Board of Directors Meeting Minutes | 3 while HE typically bundles existing courses in a new way to create a certificate program. HE stands to benefit from an additional revenue source. The employer perspective was raised in discussion that it is increasingly difficult to offer learning opportunities during the work day. There is no slack in the system to allow employees to take time away, leading to increased pressure on workers to add skills on personal time. Both business and academic members acknowledged that employers vary greatly in the degree to which they can forecast their skills needs in such a way to signal to HE, which can then engage to try to meet employers’ needs in time. Phase II Using this analysis, BHEF will design an effective credentialing ecosystem that forms the basis of the C-Accel Phase II implementation grant proposal. Key elements include unbundling programs such as MBAs into smaller credentials for professional certification. In developing a scalable, replicable model for other regions to emulate, the DMV project identified the need for technology solutions to the barriers identified in effective employer/university partnerships. Real-time identification of skills is needed from employers, resulting in a stronger signal to HE, who then must respond quickly. Phase II will allow for scaling opportunities with BHEF members, looking beyond the DMV, including financial contributions, in-kind support, demonstrating demand though pilot programs, and developing credentials. Strengthen Member Value In FY2O, Q1 BHEF launched its monthly insights brief. The benefit spotlights BHEF peer leadership in digital skill development and enables BHEF to be better membership stewards by staying abreast of what’s happening in member companies and on member campuses. BHEF released its first quarterly issue of unpublished insights on Designing and Implementing Work- Based Learning: A Call to Action for CHROs. The invite to BHEF members to serve as scaling partners by putting the MI, process guides, and credential models obtained from C-Accel Phase II will further strengthen BHEF’s member value by providing members with a powerful programmatic engagement. The goal to gain 35/35 parity through an expanded and diverse membership body will be aided by stronger branding and through opportunities offered around C-Accel Phase II. BHEF’s programmatic excellence and exceptional member value will empower BHEF members to engage with business prospects, opening the doors to new members in more diverse fields and demographics, including underrepresented minorities and female CEOs and C-suite executives. BHEF FY2020, Q2 Board of Directors Meeting Minutes | 4 Enhance BHEF Thought Leadership and Communications BHEF demonstrated ongoing thought leadership through the release of five notable reports in 2019 and anticipated a major publication release in the spring of 2020, Building Bridges to Success: Regional Business-Higher Education Partnership to Grow and Diversify the STEM Workforce. BHEF continued to hone its communications to provide exclusive insights for members, unbundling its own IP to make them more accessible. Fundraising BHEF planned using its recent fundraising momentum to pursue new sources of revenue to provide greater value to members in their home regions. C-Accel Phase I enabled BHEF and its partners to submit a three-year $5M Phase II upskilling implementation grant (FY20, Q2). BHEF sought a supplement to the multi-year grant from the JPMorgan Chase Foundation or another partner to support additional regional projects such as in Connecticut. BHEF strategy includes the following well-defined targets by quarter:  Q2: ECMC Foundation – Scaling digital credentials  Q3: NSF C-Accel; Strada Education Network – Scaling Digital Upskilling Ecosystems  Q4: The Keck Center; Arnold Ventures LLC; The James Irvine Foundation; Joyce Foundation; Gordon and Betty Moore Foundation; Lilly Endowment Inc.  FY 21, Q1: Lumina Foundation – Adding industry-endorsed credentials to academic degrees BHEF's Organizational Infrastructure BHEF will soon end its 15-year relationship with SmithBucklin. Under the SmithBucklin-BHEF relationship, BHEF team members were technically SmithBucklin employees. Thus, BHEF will separate its infrastructure, payroll and benefits, and technology services. BHEF will continue its contract with SmithBucklin’s Financial Management Services, at least through the FY19 audit, and will present a detailed plan outlining the most feasible solutions and costs across a range of components on the FY20, Q3 Board call. Fitzgerald anticipated moving into the new offices at One Dupont Circle in Washington, D.C. in mid-May. BHEF Winter 2020 Member Meeting The BHEF Winter 2020 Member Meeting will center on the learner perspective for both employers and HE. As the demand for digital talent grows, BHEF will use the member meeting to investigate the challenges, opportunities, accomplishments, and insights related to digital credentialing and implementation into work-based learning. The meeting will explore the critical role of credentials in upskilling. BHEF FY2020, Q2 Board of Directors Meeting Minutes | 5 Fitzgerald then reviewed the draft agenda for the Board. Finance and Audit Committee Report BHEF closed FY19 with unrestricted revenue of $3,990,070. Although membership dues revenue of $1,690,000 was below the goal of $1,870,000, FY19 revenue also included $2,291,869 in grants, $15,000 in MI contributions, $8,201 in miscellaneous administrative revenue, $18,123 in investment fund revenue, and a balance of $877,731 in temporarily restricted assets. Positive net assets were much higher than anticipated due to the timing of the receipt of the second installment of $600,000 from JPMorgan Chase. Originally anticipated to occur in FY20, the date of actual receipt required the auditors to book in FY19. This leaves BHEF in a sound financial position headed into 2020. As of FY20, Q1, the approved budget was for revenue of $3,330,529 and expenses were budgeted at $3,682,075. This difference is a function of the JPMorgan Chase grant being booked in FY19 but spent in FY20. The accounting firm, Rubino & Company Chartered completed BHEF’s FY19 financial and federal audit. This audit report and management letter was provided to each board member for review. The audit found no reportable conditions. Membership Committee Report Jeff Armstrong reported that the Membership Committee had a call on January 14, 2020 (Marty Martin attended the Board meeting for this discussion). The Committee welcomed Marty Martin and Judy Olian to the Committee, and noted its efforts to achieve parity of 35 corporate members and 35 academic members in 2020. This challenging goal represents at least 15 new business members and six new academic members. Armstrong noted that the objective case for membership is as strong as it has ever been. In Q2, BHEF welcomed two new business members, including Laura Ipsen, president and CEO of Ellucian. Ipsen and several prospective members planned to attend the BHEF Winter 2020 Member Meeting. Staff informed the Board that some members did not renew as soon as the NSF Phase I concluded. On behalf of the Membership Committee, Armstrong requested that other members engage more with the challenge of growing membership, with consideration given to diversity along many vectors and parity for academic and business members. The Board noted that university prospects, who widely want to join BHEF, are required to join with business members. BHEF FY2020, Q2 Board of Directors Meeting Minutes | 6 Discussion around growing business membership included attracting sectors such as health care and advanced manufacturing, and geographic diversity (including scheduling regular West Coast Board Meetings). Board discussion then focused on the question of whether business membership should be limited to CEOs or whether to expand to other C-suite or similarly senior executives. Members weighed benefits of CEOs attracting other CEOs, with the prospect that some flexibility might allow for new members with a passion for the mission. For the June meeting, the Board agreed to track RSVPs, to reach out directly to members whose attendance has waned, and encourage CEOs to attend or to send a representative at a minimum. The PwC report is slated to be unveiled immediately prior to the meeting, which promises to offer unique high-value information. Closing Remarks The meeting went into executive session at 4:30 pm. These minutes were certified on: __________________, 2020. By: Brian K. Fitzgerald BHEF Secretary __________________________________ Tab 2 – Chief Executive Officer’s Report Rising to the Challenge: Demonstrating National Leadership in Responding to the COVID-19 Education And Upskilling Crisis Chief Executive Officer’s Report Board of Directors Meeting April 20, 2020 “In the midst of every crisis, lies great opportunity.” Albert Einstein © 2020 BHEF 2 Rising to the COVID-19 Challenge BHEF will execute a strategy in the coming months to strengthen its brand as a national leader in digital upskilling by building and deploying a digital upskilling credentials marketplace in the DMV. BHEF will propose national scaling to private funders as a means of responding to the COVID-19 pandemic. •Enhance BHEF’s position as a national leader by deploying digital upskilling solutions through NSF C-AccelPhase II implementation funding ($5M) that develops the DMV upskilling ecosystem and scales ecosystems with BHEF members and partners nationally. •Expand BHEF’s thought leadership (TL) by engaging national funders to scale BHEF’s upskilling solutions. •Continue to build new external and member communications capabilities to improve brand recognition, increase visibility of market intelligence (MI) publications, TL events, and member value. © 2020 BHEF 3 Rising to the COVID-19 Challenge (continued) •Build on the C- Acceldigital upskilling planning grant and seek other grants to secure new, multi-year streams of revenue to ensure sustainability of BHEF’s strategic vision. •Strengthen member value by observing the massive shift to online learning and provide members with MI, strategies, and tools to help lead the post-pandemic economic recovery. •Shift BHEF’s fundraising strategy towards mitigating the effects of the pandemic on higher education and supporting industry-recognized online digital credentials. © 2020 BHEF 4 FY20 National COVID Leadership Opportunities •Represent BHEF on Strada’s COVID-19 Impact Coalition and propose national upskilling credential marketplace. •Add a COVID-19 response component to the digital upskilling credentials replication in New England with the New England Board of Higher Education, other partners, and regions. •Coauthor with BHEF members and partners op-eds on higher education’s response to the pandemic and its positioning for the predictable enrollment surge for reskilling. •Publish a WPI replication guide and case studies to enable business and higher education to address the surge in demand for upskilling. © 2020 BHEF 5 Significant grant funding will position BHEF as the national leader in talent ecosystem development. Employer driven, technology enabled, labor market aligned, and built for scale. KEY PHASE I FINDINGS Labor market analytics, a national survey of 600 employers, a higher education landscape assessment, focus groups, and structured interviews revealed specific employer needs to be met for our upskilling model to be viable. These needs include the following. •Better information on employees’ current digital tech skills, which skills they need the most, and pathways to: •improve job performance/maximize productivity; •transition smoothly into another role (adjacencies); •and grow their careers. •Easily identifiable upskilling credentials that are trusted, affordable, short- term, and largely online or asynchronous. © 2020 BHEF 6 C-ACCEL PHASE II: The Upskilling Solutions Marketplace C-ACCEL PHASE II: The Upskilling Solutions Marketplace (continued) PHASE II SOLUTION – THE UPSKILLING SOLUTIONS MARKETPLACE •A digital platform that connects employers/employees, education providers, labor market data, and app developers to generate clearer skills-demand signaling and build a transparent ecosystem of upskilling credentials that increase ROI for employers and employees. •A process that accelerates the development of modular upskilling credentials delivered by universities in response to employer needs. © 2020 BHEF 7 Upskilling Solutions Marketplace Universities receive labormarket data. Universities submit upskilling opportunity to the marketplace. Employer identifies strategic digitaltechnology skill needs and preferredcredentials Employee enrolls in and completes credential or training program. Employee and employer rank effectiveness of credentials across multiple metrics, including ROI. Labor market information is built into marketplace. Intermediary organizations analyze in-demand programs and associated skills. Labor market information shared with employer and highereducation through tools and applications. HRIS | LMS | App Developers Labor Market Information & Tools Universities Employers & Employees Open API Universities make investment decisions to create/adjust upskilling credentials. © 2020 BHEF 8 The Upskilling Solutions Marketplace A employer-focused technology platform efficiently connecting employers/employees, app developers, LMI data feeds, and education/training providers. Affirming Member Value BHEF is leveraging technology to rapidly advance its work and gain the deployable, actionable MI members expect. With an eye to retention, BHEF is expanding its lens to gain insights borne from the challenges and opportunities this tectonic shift to online learning and remote work presents to employers, educators, and learners. •Retention and growth.As companies and institutions adapt, BHEF’s recruiting strategy is fluid and linked to member retention. BHEF ’s deployable marketplace solutions―tailored for today’s rapidly changing environment―stem from member engagement in BHEF’s work, and will be a determining factor in FY21 retention and growth model. •Exclusive market intelligence. BHEF continues its monthly insights briefs, spotlighting members Drake, San José State University, and, in May, AWS and University of Maryland Global Campus. BHEF released its second quarterly missive in March, which shared unpublished insights on Building Bridges for Success: Regional Business-Higher Education Partnerships to Grow and Diversify the STEM Workforce. © 2020 BHEF 9 Affirming Member Value (continued) •Member ROI from NSF Phase II: BHEF urges its members to participate in this $5M grant opportunity, which will build a tech-enabled upskilling solutions marketplace and modular higher-edupskilling credentials. The two-part model will map a region’s digital technology upskilling opportunities, identify the credentials that mirror employer-recognized KSAs and in-demand characteristics, and transparently communicate the credential’s value to the employee. © 2020 BHEF 10 BHEF Communications BHEF will produce four to five TL publications and will create a new web presence. Major communications accomplishments from 2019 include: •Five TL publications •Te n earned media placements and 19 BHEF citations •Six desksidebriefings with reporters •A monthly member email update that highlights BHEF in action Thus far in 2020, BHEF released Building Bridges to Success: Regional Business- Higher Education Partnerships to Grow and Diversify the STEM Workforce. Communications deliverables for 2020 include: –Three publications focused on WPI and one focused on the C- Accelproject. –A new web presence –A series of shorter, actionable summaries from BHEF’s existing market intelligence © 2020 BHEF 11 Ensuring BHEF’s Financial Stability © 2020 BHEF 12 BHEF reduced non-essential activities, accessed the CARES Act, and used fundraising momentum to pursue new revenue. •BHEF applied to its lender for a Paycheck Protection Program loan in the amount of $250,000 and will qualify for up to $200,000 in forgiveness (Q3). •C- Accel$5M Phase II digital upskilling credential marketplace grant proposal(Q3). •Seeking to supplement to its multi-year grant from the JPMorgan Chase Foundation or a funding partner to support additional regional projects for WPI, e.g., CT (Q3). Ensuring BHEF’s Financial Stability (continued) © 2020 BHEF 13 •FY20/21 Fundraising targets by quarter include: •Q2: ECMC Foundation—COVID support/scaling digital credentials in CT •Q3: NSF C-Accel; Strada Education Network—Scaling Digital Upskilling Ecosystems •Q4: Guardian Life; Arnold Ventures LLC; Carrol and Milton Petrie Foundation; Alfred P. Sloan Foundation; AbellFoundation •Q 1/21: Lumina Foundation; James Irvine Foundation; Joyce Foundation; Gordon and Betty Moore Foundation; W.M. Keck Foundation BHEF’s New Organizational Infrastructure BHEF will end its 15-year infrastructure relationship with SmithBucklin on May 31, 2020 and will relocate into new office space and onto the cloud. •BHEF will become a fully independent operating entity licensed in DC on June 1, 2020. •BHEF signed a multi-year lease in January 2020 to relocate to One DupontCircle (ACE); custom-built space will be available mid-May. •BHEF has chosen payroll and benefits, insurance, technology, and telecommunications providers. •BHEF will continue to contract with SmithBucklin’sFinancial Management Services, at least through the FY19 audit. •Staff anticipate a mid-May move into space at One Dupont. © 2020 BHEF 14 Discussion Finance and Audit Membership Tab 3 – Finance and Audit Report BHEF Board of Directors Meeting, April 20, 2020 To: BHEF Board of Directors From: Brian K. Fitzgerald, CEO Date: April 3, 2020 Re: Finance and Audit Report I am pleased to report on the status of BHEF finances and update you on BHEF’s compliance with IRS reporting requirements. This report includes:  Financials through February 29, 2020 and Preliminary Year-End Financials  Investment Fund Report  Update on the FY19 Audit and 990 Filing FY20 Budget Quarter 2 Financials 1 and Forecast During the board of directors meeting in June 2019, the board approved a FY20 budget of $3,330,529. As of February 29, 2020, BHEF received $ 2,140,248 in new revenue, which included $1,425,000 in membership dues and $715,248 (cash-in) in grants. Temporarily restricted assets equaled $757,552. The forecast includes $3,061,013 in total revenue including an estimated $1,700,000 in membership revenue (down from the initial request of $2,100,000), $ 1,361,013 in grant revenue, and the release of approximately $602,360 from Temporary Restricted Net Assets – grants to be spent in 2020. Forecast expenses total $ 3,602,899. The forecast reflects a net change in net assets of ($ 366,694). Investment Fund The value of the BHEF i nvestment fund 2 as of December 31, 2019 was $ 1,031,894.95. A n 11% increase over the December 31, 2018 fund balance of $920,940.96. At the time of this report, BHEF had not yet received its March 31, 2020 statement. BHEF’s investment portfolio is a Life Strategy Fund comprised of 80 percent of the managed portfolio in bonds and 20 percent in stocks. Audit and IRS Filings The accounting firm of Rubino & Company Chartered completed BHEF’s FY19 financial and federal single audit report. The audit was filed with the federal clearinghouse on March 21, 2020. 1 Unaudited accrual-basis statements from BHEF’s accountants. 2 BHEF’s Investment Fund includes Operating Reserve funds (self-managed with Vanguard). BHEF Board of Directors Meeting, April 20, 2020 The audit found no reportable conditions. Additionally, the IRS 990 filing was completed and filed and accepted on March 22, 2020. ATTACHMENT A Business-Higher Education Forum FY2020 Q2 FINANCIALS - At February 29, 2020 Approved FY2020 FY2020 Q2 Actuals at 2-29-20 Projected FY2020 Varience Operating Net Assets Unrestricted Revenue: 200 Membership - Revenue2,100,000$ 1,425,000$ 1,700,000$ (400,000)$ 300 Conferences -Revenue-$ -$ -$ -$ 510 Market Intelligence - Revenue-$ -$ -$ -$ 520 JPMC - Revenue600,000$ -$ -$ (600,000)$ 521 WPI - Revenue-$ 100,000$ 100,000$ 100,000$ 525 Google - Revenue122,500$ -$ 122,500$ -$ HEWI Revenue:508,029$ 615,248$ NSF Year V to 12-31-19 208,029$ 138,513$ (69,516)$ NSF C-Accel300,000$ 1,000,000$ 700,000$ ---------------------------------------------------------------------- TOTAL OPERATING NET ASSETS3,330,529$ 2,140,248$ 3,061,013$ (269,516)$ -------------------------------------------------------------------------------------- Expenses 110 Administration - Expenses584,786$ 204,763$ 634,786$ (50,000)$ 200 Membership - Expenses345,218$ 101,511$ 263,626$ 81,592$ 250 Grants - Expenses70,038$ 18,799$ 55,118$ 14,920$ 300 Conferences - Expenses329,863$ 100,216$ 190,518$ 139,345$ 500 Communications - Expenses268,577$ 94,310$ 250,077$ 18,500$ 510 Market Intelligence - Expenses130,000$ -$ -$ 130,000$ 520 JPMC - Expenses588,000$ 92,274$ 569,327$ 18,673$ 521 WPI - Expenses70,000$ 7,651$ 71,934$ (1,934)$ 525 Google - Expenses284,500$ 44,808$ 100,000$ 184,500$ HEWI Summary - Expenses612,742$ 717,391$ 1,467,513$ (854,771)$ ---------------------------------------------------------------------- Total Expenses3,283,724$ 1,381,723$ 3,602,899$ (319,175)$ -------------------------------------------------------------------------------------- NET CHANGE IN NET OPERATING ASSETS46,805$ 758,525$ (541,886)$ (588,691)$ -------------------------------------------------------------------------------------- Non-Operating Net Assets Revenue: 900 BHEF Investment Fund - Revenue40,000$ 15,203$ 20,000$ 20,000$ Total Revenue40,000$ 15,203$ 20,000$ 20,000$ Expenses: 900 BHEF Investment Fund - Expenses-$ -$ -$ -$ Total Expenses-$ -$ -$ -$ -------------------------------------------------------------------------------------- Net Change in Non-Operating Net Assets40,000$ 15,203$ 20,000$ -$ -------------------------------------------------------------------------------------- NET CHANGE IN NET ASSETS86,805$ 743,322$ (521,886)$ (588,691)$ ==================================================================================== ==================================================================================== Beginning Balance Adjustments FY20 Balance to Date Projected FY2020 YE Balance Temporarily Restricted Net Assets877,731$ (120,179)$ 757,552$ 155,192$ -$ -$ -$ 520-JPMC569,327$ (92,274)$ 477,053$ -$ 521-WPI/Northrup79,585$ 92,349$ 171,934$ 100,000$ 525-Google149,583$ (44,808)$ 104,775$ 55,192$ 782-CIT II Smart Cities79,236$ (75,446)$ 3,790$ -$ ==================================================================================== BALANCE OF TEMPORARY RESTRICTED877,731$ (120,179)$ 757,552$ 155,192$ TOTAL NET CHANGE IN NET ASSETS964,536$ 1,500,874$ 235,666$ (366,694)$ ==================================================================================== Tab 4 – Membership Report BHEF Membership Committee Report, April 20, 2020 MEMBERSHIP COMMITTEE REPORT April 20, 2020 I. DASHBOARD Date Total Corporate Academic Emeritus Apr 2020 51 21 1 27 3 Oct 2019 55 23 29 3 Jun 2019 58 25 30 3 Mar 2019 58 25 30 3 II. FY20 RECRUITING GOAL: 35/35 by EOY 2020  14 new business members and 8 new academic members  14 new business members = $700k; 8 new academic members = $200k  Status: 2 new business members secured III. FY20 REVENUE AS OF MARCH 2, 2020 A FY20 membership revenue target $2,100,000 B Invoiced $1,900,000 C Pending/Off-schedule invoices $25,000 D Booked (as of 03/02/2020) $1,400,000 E Outstanding $275,000 F Non-renewals ($225,000) G Revised expected (C+D+E) $1,700,000 H Anticipated $ to target (G-A) $400,000 I Current $ to target (A-D) $700,000 IV. NEW MEMBER  CUNY: Félix Rodríguez, chancellor (transition) 1 Total no longer includes outstanding FY19 dues members Boeing, Dow, and Principal 2 BHEF Membership Committee Report, April 20, 2020 V. TRANSITIONS 2  AAU * : Barbara R. Snyder, president  California State University System: TBD  Dow: TBD  Miami Dade College * : Rolando Montoya, interim president  Michigan State University: Samuel L. Stanley, Jr., M.D., president  University System of Maryland * : Jay A. Perman, M.D., chancellor VI. FY20 Q3 NON-RENEWALS: NONE 2 Asterisk indicates FY20 dues paid FY20 PROSPECTS COUNT SOURCE PROSPECT NAME COMPANY/INSTITUTION TITLE STATUS STAGE 1: Prospect identification 1 BHEF Dwayne Nellis Ohio University President Call March 18. Understands needs corporate partner and will regroup with BHEF post COVID‐19 1 BHEF Gregory Washington George Mason University Incoming Preside nt Becomes GMU president July 1; currently dean of UC Irvine engineering school 1 BHEF Clarence Armbrister Johnson C. Smith University President Con necting through contact at Duke Foundation 1 BHEF Marge Magner Brysam Global Partners Co‐founder and Managing Partner Determining best approach 1 BHEF Samuel Stanley Michigan State University President Transition 1 BHEF TBD SAS TBD Identifying internal champion for BHEF membership and best executive member; Call April 1 1 BHEF/SBD Chris Calio/ Mark Scheinberg Pratt & Whitney/ Goodwyn College President/ President Engage through SBD/Connecticut work 1 BHEF/SBD John Ciulla Webster Bank President and CEO Engage through SBD/Connecticut work 1 BHEF/SBD Kevin Graney General Dynamics Electric Boat President Engage through SBD/Conne cticut work 1 BHEF/SBD Darrell Harvey The Ashforth Company Co‐CEO and Principal Engage through SBD/Connecticut work 1 BHEF/SBD Peter Hoecklin Trumpf Laser USA President and CEO Engage through SBD/Connecticut work 1 Armstrong Jay Akridge Purdue Provost and EVP, Academic Affairs Li kely successor; will engage when time comes 1 Papazian Eric Kelly Sphere 3D Chairman and CEO Determining best ap proach 1 Papazian TBD Pixar TBD Determining best approach and prospec t 1 Papazian Eric Yuan Zoom CEO Determining best approach 15 STAGE 2: Vetting and outreach materials 1 Armstrong Doug Baker, Jr. Ecolab Chairman and CEO Determining bes t approach 1 Armstrong Lloyd Dean Dignity Health Co‐CEO Connect through staf f 1 Armstrong George Lee II Goldman Sachs CIO, Investment Banking Gro up Awaiting membership decision 1 Armstrong Doug Merritt Splunk President and CEO Determining best a pproach 1 Armstrong Dan Phillips Hulu CTO Outreach materials provided 1 Armstrong TBD Symantec TBD Determining best approach and prospec t 1 King Greg Adams Kaiser Permanente Chairman and CEO Determining bes t approach 1 Papazian Adela de la Torre San Diego State University President Ma terials and follow up email sent 1 Papazian Jeff Weiner LinkedIn CEO Determining best approach 9 STAGE 3: Member speaks with prospect 1 BHEF Tom Caulfield GlobalFoundries CEO Meeting April 30. Potential business partner for David Harris (Union) 1 BHEF Jim Fitterling Dow CEO Wes speaks with Fitterling at Dow board meetings, and is taking his temperature RE higher education partnerships 1 BHEF/SBD Alan Schnitzer Travelers Chairman and CEO Engage through SBD/Connecticut work 1 BHEF/SBD Christopher Swift The Hartford Chairman and CEO Engage th rough SBD/Connecticut work 1 BHEF/SBD/Olian Ravi Kumar Infosys President and Deputy COO Determi ning best approach CONFIDENTIAL: NOT FOR DISTRIBUTION As of 4/7/2020 FY20 PROSPECTS STAGE 3: Member speaks with prospect 1 BHEF/Weinberg Charles Lowery Prudential Chairman and CEO Determining best approach; may not be the partner for UTEP as focus is New Jersey/Newark 1 Armstrong/Papazian TBD Cisco TBD Determining best approach; Cisco new Silicon Valley site lead 1 Martin/Armstrong/ Papazian TBD Wells Fargo TBD Determining best approach 1 Papazian Pat Gelsinger VMware CEO Meeting TBD 9 STAGE 4: Prospect speaks with BHEF 1 BHEF Lori Dickerson Fouché TIAA CEO, TIAA Financial Solutions Tran sition; TBD 1 BHEF Jay Perman USM Chancellor Call April 13 1 BHEF Heather Wilson UTEP President Seeking corporate partner; Prudential may not be best bet, as their focus is New Jersey/Newark 1 BHEF/NEBHE/Olian Mohamed Ali IDG CEO Preparing discussion outline with NEBHE to secure meeting 1 BHEF/Woodson Harold Martin NC A&T University Chancellor Presentati on to Martin's cabinet April 13 1 Armstrong Meredith Schmidt SalesForce EVP, CEO Essentials SMB Awai ting membership decision 1 Loree David Harris Union College President Call April 21 7 STAGE 5: Prospect F2F with BHEF 1 BHEF Roger Crandall MassMutual Chairman, President and Chief Executive Officer Will ask for letter of support as part of Strada proposal 1 STAGE 6: BHEF welcomes new member 1 Armstrong Tony Schwarz Qualcomm SVP, Engineering Briefing TBD 1 STAGE 7: New members registered for S20 0 CONFIDENTIAL: NOT FOR DISTRIBUTION As of 4/7/2020 ©2020 Business-Higher Education Forum PROPOSED CRITERIA FOR NEW ACADEMIC MEMBERS Introduction Years of refining its proven methodology have identified ideal characteristics that position new BHEF academic members for immediate engagement and strong ROI. The proposed criteria below articulate these attributes for discussion and confirmation by the Membership Committee. Proposed Criteria 1. Teaches a diverse student population. a. Adult learners b. HBCUs c. MSIs d. R1s with over 30% diverse learners 2. Possesses strong corporate partnerships. a. Enjoys solid relationships with companies who have or seek partnerships around digital talent development. b. Holds robust engagements with the following industries and sectors. i. Agriculture: Fishing, Non-Tobacco Crops, Timber ii. Manufacturing: Automotive, Defense, Electronics, Energy, Food, Telecom, etc. iii. Service: Finance, Insurance, Health Care, Media, etc. 3. Exhibits entrepreneurial leadership at the top and in its faculty. 4. Has solid STEM programs in place. 5. Is in a desired geographic location. 6. Practices robust HIPs. a. Internships, co-ops, WBL, etc. 7. Has the ability to pay. a. While some institutions work out arrangements with their corporate partners to sponsor their membership, this has hindered a sense of ownership that comes with self-funding.