In a year of turbulent economic times in the commonwealth, the nation, and the world, we take pride in the fact that the Virginia Tech Foundation continued to make progress in its support of the university.

As reflected in the following pages of the annual report, private giving to the university during the 2000-2001 year reached record levels. More importantly, our expenditures in support of the programs of the university also reached record levels in several areas. Expenditures in support of all of the programs funded by the foundation exceeded $76 million.

The assets of the foundation now exceed $624 million, an increase of almost $50 million from June, 2000. Despite a volatile economy, unstable financial markets, and lower interest rates, the endowment portfolio's performance was strong relative to the rest of the market, with a total return of -4.1 percent. The investment committee continues to monitor the performance and asset allocation of the endowment funds and make appropriate adjustments as required.

Other highlights of the year included:

• The Virginia Tech Corporate Research Center, a subsidiary of the Virginia Tech Foundation, continued to expand, with total employment at the park now exceeding 1,700 personnel.
• Operations of the Ferrari Foundation were established in Switzerland, enabling this Swiss entity, a subsidiary of the Virginia Tech Foundation, to receive gifts and provide operational support for the European Studies Center in Riva San Vitale.
• A development committee was established as a means of improving the effectiveness of our fundraising efforts by providing valuable input from our volunteers.
• The Hotel Roanoke and Conference Center overcame a four-month closing of the conference facilities, resulting from the correction of construction problems in the conference center, to reach the same revenues as the previous year of $13.7 million.
• Financial support for WVTF Radio continued to grow and property was purchased for a new facility to house the station.

Future levels of foundation support to university programs are dependent on the continued generosity and support of alumni and friends who have given so willingly of their talents and resources in the past year. On behalf of the foundation, and most especially on behalf of our university, we sincerely appreciate your continued commitment to Virginia Tech.

Clifton C. Garvin Jr.
Chairman of the Board