April 21, 2001

Introduction

This report presents the Special Operations Warrior Foundation's full-year results for fiscal year 2000. The Special Operations Warrior Foundation (SOWF) begins its twenty-first year of service to members of the Special Operations community. A tax-exempt 501(c)(3) non-profit organization, the SOWF is dedicated to providing college scholarship grants, based on need, along with family, financial and educational counseling to the children surviving Special Operations personnel killed in the line of duty.

The Foundation is governed by a 21-member Board of Directors, which consults with a 3-member Board of Advisors. The Board has four standing Committees; Executive, Development, Audit & Finance, and Governance. General Carl C. Stiner, USA (Ret.), former Commander in Chief, United States Special Operations Command, serves as Chairman of the Board and Colonel John T. Carney, USAF (Ret.), serves as the President and Chief Executive Officer. The SOWF is headquartered in Tampa, Florida, home of the U.S. Special Operations Command at MacDill AFB.

The Need

One constant throughout 2000 has been change and new challenges for the U.S. military. The downsizing of the U.S. military, the appearance of new aggressor states, heightened regional instabilities, counter drug activities, and proliferation of weapons of mass destruction, all led to an increased use of Special Operations Forces (SOF) by conventional U.S. military, ambassadors, and other government agencies. SOWF Board Director, General Pete Schoomaker, USA (Ret.), coined the term "Global Scouts" to denote how SOF operate on a constant basis around the world to support theater Commander in Chiefs and the American ambassadors. In year 2000, the weekly average of SOF deployed overseas in 79 countries numbered over 5000 personnel. It is expected that SOF will continue to be called upon as America's force of choice. Therefore, the Foundation's challenge will be to continue to increase its assets in preparation to cover the full cost of a college education for every surviving child into the future. Today, 376 children survive these off-unsung heroes. During 2000, fifteen additional children who have lost a parent were added to the SOWF program.

Financial Overview

The year 2000 was truly a defining period in our 21-year history. Thanks to a committed Board of Directors, and the families and friends of Special Operations Forces, fiscal year 2000 revenue totaled $521,886. This represents an increase of 8.8% from FY 1999. Of this amount, $305,000 was pledged through the Combined Federal Campaign (CFC) and $184,000 came from private sector donations. The CFC pledges were up 20.6% from last year and private sector was up 10.4%. Expenditures for FY 2000 totaled $290,257 with $238,202 spent on programs and $52,055 expended on management and fundraising. An additional $231,629 was added to the Foundation's permanent endowment fund. The administrative cost ratio for FY 2000 was 9.9% down 1.89% from FY 99. As of 31 December 2000 the Foundation's net assets totaled $1,259,059.

Scholarship and Counseling Support

The Foundation is currently committed to providing scholarship grants to 376 children. These children survive 320 Special Operations personnel who gave their lives in patriotic service to their country. Of the 376 children, 12 have graduated, 37 are in school, and 66 children are 16 years of age or older. Fifty of the 66 children participate in the Foundation's financial/academic counseling program. The remaining 261 pre-college age children are either enrolled in the Foundation's family counseling program or are part of the estimated 60 children pending notification of their eligibility for SOWF scholarship grants.

In 1999-2000, SOWF provided $57,312 in scholarship grants to 35 students and through the Foundation's unique and free financial aid counseling program, it qualified 37 students for an average of $6,569 in outside grants for the 2000-2001 academic year. Once again, this significantly reduced outlays required of the Foundation to cover each child's full college cost, thereby increasing the number of children that can be assisted in the future. The Foundation continues its efforts to assist SOF families in furthering their children's education in other ways as well. One example is distributing the College Aid Resources for Education (CARE) book to Special Operations units located throughout the world. SOWF made the CARE book available to approximately 29,000 active duty Special Operations personnel. The 200-page financial guidebook provides "how-to" information on paying college bills and details scholarships that are available at 1,552 American four-year colleges.

Fundraising

The Special Operations Warrior Foundation obtains its funding primarily from participation in the Combined Federal Campaign and donations from private citizens as well as corporations. As a fourth-year agency in the 2000 Combined Federal Campaign, the Foundation received an unprecedented pledge of $305,000 in FY 2000. The Foundation has also qualified for the 2001 Combined Federal Campaign.

Additionally, a first-time initiative in state campaigns was begun in 2000. The Foundation has qualified to participate in Florida, North Carolina, Washington, and Texas, and is awaiting approval from California, Maryland, and Virginia.

The fundraising event of the year, for the third consecutive year, was when runners from the U.S. Army Special Operations Command at Fort Bragg, N.C. ran 335 miles to the steps of the Pentagon. This volunteer and herculean effort involving nine runners raised $26,000, thus demonstrating the troops commitment to their buddies surviving children.

John T. Carney Jr.
President / CEO