2004 Annual Report

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Contents:

2 The Executive Message4 The Science Museum

12 Center for Innovation in Science Learning16 The Franklin Center22 Financial Report24 2004 Contributed Support33 Board of TrusteesImage: Fels Planetarium dome.

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In the spirit of inquiry and discovery embodied byBenjamin Franklin, the mission of The Franklin Institute is to inspire an understanding of and passionfor science and technology learning.—Franklin Institute Mission Statement

An institution’s achievements are often measured in terms of revenue and attendance, but

statistics tell only part of the story. The Franklin Institute’s ability to touch lives—influencing

everyday decisions, directing careers and inspiring a life-long passion for science and technol-

ogy learning—is the ultimate measure of its success.

The Franklin Institute’s mission is the backbone of its exhibits, education programs, Web

development, even The Franklin Institute Awards. More than ten years ago the Board of

Trustees approved the Strategic Plan for 1996-2005 and launched a $50 million capital campaign

to support the mission. The campaign raised a whopping $61.7 million; the Strategic Plan was

revised and expanded to cover 2003-2008 and beyond.

By the end of 2004, with six phases of its Strategic Plan completed, The Franklin Institute

was already positioned for a different future. The Franklin Institute had undergone a renais-

sance. Its future as a premier science education institution and destination attraction, a force in

introducing millions to the excitement of science learning, had begun.

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exhibits with broader demographic and

geographic appeal, we expect that trend

to continue. To that end the Institute

has scheduled Gunther von Hagens’

BODY WORLDS: The Anatomical Exhibi-

tion of Real Human Bodies, opening in

October 7, 2005 and Tutankhamun and

The Golden Age of the Pharaohs, opening

in February 3, 2007.

Youth Education

The Institute is the beneficiary of many

donors, both public and private, as

highlighted on pages 24 to 32. We are

especially grateful to the Common-

wealth of Pennsylvania for its

unwavering support, which this year

included a $699,000 operating grant,

and to The Pew Charitable Trusts for its

three-year, $810,000 operating grant

through its Philadelphia Cultural Leader-

ship Program. Proceeds from Franklin

Family Funfest and The Franklin

Institute Awards Dinner, as well as

donations to the Institute’s Access

program, enabled 20,805 students from

low-income area schools to visit free of

charge. A total of 328,410 paid school

and youth groups visited at already

reduced group rates.

Outreach initiatives such as Parent

Partners in School Science with the

School District of Philadelphia, and

Partnerships for Achieving Careers in

In 2004 The Franklin Institute realized

the full benefit of its successful $61.7

million capital campaign. With 100,000

square feet of new exhibits and visitor

service areas, a new planetarium and

refurbished theaters already in place,

the Institute opened both Titanic: The

Artifact Exhibition and The Giant Heart,

attracting 1,028,586 visitors—the highest

attendance in its history. Admission

revenue grew 43 percent over the previ-

ous year, heightening national public

awareness of the Institute and attract-

ing a record 12.5 million individual

visitors to its Web site.

The success of Titanic: The Artifact

Exhibition created a new template for

the Institute’s revenue and attendance

structure that will help advance our

mission into the next decade. Previ-

ously, limitations on physical space

restricted the Institute’s opportunities

to schedule traveling exhibits. The

strategic planning and campaign fund-

ing enabled the Institute to renovate a

large percentage of its public space,

including Pepper Hall, which was made

available for major new exhibitions and

programs. This, combined with the

expansive Upper Mandell Center special

exhibit gallery, gives the Institute one of

the largest special exhibition spaces

of any museum in the region and room

to bring blockbuster educational

exhibits to Philadelphia. The expense

associated with the 15,000-square-foot

Titanic exhibition necessitated an

admission surcharge for Titanic and its

enlightening audio tour. By the time the

exhibit closed on January 23, 2005, a

total of 354,487 people had seen it. The

Institute’s increased attendance and

resulting modest budget surplus is

especially impressive at a time when

museums nationwide are struggling to

maintain audience and balance their

budgets.

The Giant Heart: A Healthy Interactive

Experience opened on October 1,

contributing to the growth in attendance.

A Philadelphia icon for the past 50

years, the walk-through heart is, today,

the centerpiece of a multi-generational

heart health and wellness experience,

made possible by the generosity and

foresight of many donors. Merck & Co.,

Inc. and The Merck Company Founda-

tion provided a lead gift of $2 million;

other major supporters included The

Heart Center at Lankenau Hospital, the

National Center for Research Resources

at the National Institutes of Health, and

the F.M. Kirby Foundation. Still other

individuals and institutions contributed

funding, equipment and/or professional

expertise.

Clearly the Institute demonstrated

that, given strong exhibits and

programs, as well as good promotion, it

is possible to increase attendance to

become the highest of any museum in

the Commonwealth, and one of the

highest of any science center in the

nation. With the facilities and support

services in place to accommodate larger

Executive MessagePositioned for a very different future.

The success of Titanic: The Artifact Exhibition created anew template for the Institute’s revenue and attendancestructure that will help advance our mission into thenext decade.

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Technology and Science (PACTS)—our

career and leadership program for

minority youth, are funded through

government, corporate and foundation

grants. Together with fee-based

programs like Traveling Science Shows,

they extend science learning to diverse

audiences beyond the museum walls.

An Ongoing Process

Strategic planning and the concomitant

capital campaign have been fundamen-

tal to the Institute’s many successes.

With the first six new exhibits

completed by fall 2004, the Institute’s

current Strategic Plan for 2003-2008,

Vision for the Future, calls for the instal-

lation of five more permanent exhibits,

exhibit upgrades, strengthening endow-

ment and enhancing the Benjamin

Franklin National Memorial.

Some initiatives mandated in the

Strategic Plan were less apparent to the

public. In 2004 the Institute began

replacing the roof, removing asbestos

where it existed, and pulling out radia-

tors—vestiges of the Institute’s

antiquated steam heat system—as we

prepare for the installation of a new

HVAC system in the next phase of the

plan. The Operations team’s ability to

handle portions of the renovations in-

house and effectively coordinate with

outside contractors enabled them not

only to complete work on time and on

budget, but also to extend the scope of

building improvements beyond those

originally envisioned.

William J. AveryChairman

Dennis M. WintPresident & CEO

Recognizing Excellence

The Institute recognizes excellence

every year by awarding its Benjamin

Franklin Medals and Bower Awards to

world-class scientists and business

leaders during a week-long celebration

with academic symposia and public

programming. It is also important to

acknowledge the Institute’s fine staff,

trustees and volunteers whose dedica-

tion and hard work make the magic that

is The Franklin Institute.

In September 2004 Chief Astronomer

and Director of the Fels Planetarium

Derrick Pitts was named one of the “50

Most Important Blacks in Research

Science” by Science Spectrum and

Career Communications Group, Inc.,

for his life long work. Derrick, who

worked in the Planetarium as a student,

is also a frequent guest media commen-

tator. Like his colleagues Dr. Dale

McCreedy, who pioneered informal

science education for girls, and Dr.

Wayne Ransom, whose professional

development programs for teachers

have influenced the way science is

taught in classrooms throughout the

Commonwealth and beyond, Derrick

has extended his knowledge of astron-

omy to millions of homes.

The Institute regrets the departure

of two valued members of the Executive

Staff, Kenneth E. Kirby and Rosalyn J.

McPherson, whose leadership helped us

realize the “New Franklin Institute.”

William J. Avery Dennis M. Wint

Chairman President & CEO

In AppreciationOn December 13, 2004, William J. Avery

stepped down as Board Chairman. His

behind-the-scenes work on behalf of the

Institute over the past six years has

facilitated countless “miracles,” and his

wise counsel helped steer the Institute

through a highly successful capital

campaign and to its current position of

strength. The Institute and the commu-

nity are so much richer for his years

of service.

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SCIENCE MUSEUM

The Franklin Institute’s renaissance was very apparent in the Science Museum. By October

2004, it had six of the eight planned campaign-funded exhibits, a new Digital Sky projec-

tion system in the renovated Fels Planetarium, and inviting new public spaces. The 2004

Zagat Family Travel Guide named the Institute one of the 50 most popular attractions in

the country—one of just seven museums nationwide.

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Popular it was.

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r it was.

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The success of Titanic: The Artifact Exhibition was

maximized by the variety of promotional and fulfill-

ment venues available to serve different audiences

and an extensive coordinated marketing effort

supported by presenting sponsor The Inquirer and

media partner NBC 10, as well as a network of part-

ners including the Greater Philadelphia Marketing

and Tourism Corporation, and the Philadelphia

Convention and Visitors Bureau.

Titanic delivered a personal experience, distin-

guishing itself from so many other artifact exhibits.

Each visitor received a boarding pass with the name

of a passenger or crew member, their class of

passage, and a brief biography. Guests saw accom-

modations, dining facilities, and video of underwater

wreckage, but did not learn if “they” had survived

until the exhibit’s end.

The impact of the Titanic exhibition was dramat-

ic and memorable, as was the visitor’s introduction

or reintroduction to The Franklin Institute.

Thousands came to the Institute for the first time or

the first time in years; a large percentage left

vowing they would return to experience the rest of

the Museum again.

While Titanic set a precedent for traveling

exhibits, The Giant Heart took a departure from other

permanent exhibits, involving a variety of partners,

including Merck & Co., Inc. and The Heart Center

at Lankenau Hospital, to create a more sophisti-

cated in-depth experience that would provide

valuable information for teens and adults, while still

offering a multitude of eye-opening discoveries to

grade school students. The 5,000-square-foot

exhibit, which was expanded 40 percent by incor-

porating an adjacent space previously occupied by

the Mother Earth Store, features the most up-to-

date information about heart health, diagnostics,

and treatment, as well as correlations to timely

concerns with obesity, cholesterol, plaque and

genetics. So beloved is the giant heart itself, that

Bustling with the success of Titanic: The Artifact Exhibition and The Giant

Heart: A Healthy Interactive Experience, the Museum attracted 1,028,586

persons, an increase of 20% over the previous year. At year-end, three

weeks prior to Titanic’s closing, 308,133 people had toured the exhibit.

Visitors took advantage of extended weekend hours throughout the run of

Titanic; between Christmas and New Years, a record 46,167 visitors came

through the Museum. By closing date, the exhibit had captured the hearts

of 354,487 visitors. Equally impressive were the 720,453 persons who came

to see The Giant Heart and other exhibits (excluding Titanic) in the course

of the year, signifying an increasing interest in Institute offerings as

a whole.

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press coverage included The New York Times,

Newsweek, The Boston Globe, Cleveland Plain

Dealer, U.S. News & World Report and some 150

other publications in 24 states and Canada.

In the fall, the Institute also reached more than

3,500 persons attending 36 community and

museum-based heart health programs funded

through a Science Education Partnership Award from

the National Center for Research Resources at the

National Institutes of Health. Other related programs

included Traveling Science Shows, home school

workshops, school class workshops, and community-

based workshops for children and adults, all part of

an effort to reach underserved communities. Heart

Fact posters funded by NIH were distributed to

schools from Connecticut to Virginia through the

Traveling Science Program.

Within the Museum live demonstrations by

Museum Interpreters are perennial favorites. In

addition to the dozen different live auditorium

shows and demonstrations offered daily, Thomas

Jefferson University helped the Institute obtain

ultrasound equipment and trained Museum staff to

use it to show visitors muscles and blood vessels in

their arms. By year-end Interpreters had presented

more than 1,887 live science shows to 130,000

visitors, and they logged an amazing 25,500 hours

of floor demonstrations.

Building and Maintaining Audience

The Institute experienced first hand the benefits of

offering a critical mass of exciting product, essen-

tial as museums compete with sports, home

entertainment, and the time constraints of today’s

busy two-career families. Focused, experience-

specific messages heightened the impact of all

advertising campaigns, which were supported by

coordinated public relations initiatives. The success

of this two-pronged effort could be measured in

attendance, earned revenues, increased member-

ship and the many new faces in the Museum.

Titanic attracted a broader demographic, while

The Giant Heart drew significantly more adults than

previous heart-related exhibits.

With school children constituting almost 35

percent of Museum visitors, teachers are an impor-

tant audience. More than 2,200 educators from as

far as New York and Maryland attended the fall

Educators’ Night Out to preview exhibits and shows

and learn about onsite and outreach programs.

Enthusiastic teachers reserved field trips for 6,500

students that evening alone. For the 2004-2005

school year, the Institute provided additional

teacher support in a variety of ways, from incorpo-

rating educator focus group input into redesigning

the field trip planner, to featuring new free demon-

strations and live science shows supporting exhibits,

to providing curriculum correlations for state and

national standards through the 12th grade. As a

result, by the middle of October, field trips were

booked to capacity through year-end.

The record attendance was accompanied by

improvements in visitor services, including a new

ticketing system, online sales, and heightened staff

training. At the same time, the Institute identified

several areas that would be targeted for further

improvement in the coming months, in preparation

for BODY WORLDS.

The Theaters

The Franklin Institute offers live science shows in its

Musser Demonstration Theater and Stearns Audito-

rium, the latest educational IMAX films in its

Tuttleman IMAX Theater, and armchair astronomy

of the next generation in its famous Fels Planetar-

ium. IMAX films this past year included Titanica,

Forces of Nature, Lewis and Clark, Bugs, Mysteries

of Egypt and Kilimanjaro: To the Roof of Africa. The

Fels Planetarium underwent the second phase of its

multi-million dollar campaign renovation in 2004,

with the installation of a Digital Sky projection

system, which provides high-resolution, full-dome

imagery with rich, full-color digital star fields.

Presenters now have the flexibility to enhance

shows by launching 3D computer models of astro-

nomical objects in real time.

In November the Planetarium introduced Friday

and Saturday evening showings of SonicVision, a

next generation, digitally-animated rock show devel-

oped by the American Museum of Natural History in

concert with MTV2 and musical/multi-media artist

Moby. SonicVision is part of an initiative to build a

young adult audience in the region.

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New Revenue Streams

The Institute is actively seeking to diversify its

revenue base. In 2004 the exhibits department

completed two small traveling exhibits, A Forest

Journey and Nature’s Numbers, which began

touring to smaller science centers. Before year-end

Powers of Nature, the Institute’s largest traveler,

was fully booked for 2005. Discussions about

establishing a consortium to develop planetarium

shows moved forward.

Providing Unique Experiences

Generations of visitors have fond memories of The

Franklin Institute, but special Museum programs

such as Discovery Camp and Camp-In offer unusual

opportunities for learning. Summer Discovery

Camp drew 467 campers over a 10-week period,

while its spring break counterpart offered 237

youngsters an educational diversion during their

vacation period. The overnight Camp-In program

celebrated its 19th year with a Spy Camp theme

that afforded 9,878 campers, largely scouts, the

opportunity to hone their observational skills and to

“camp” overnight in a favorite exhibit. For those

who preferred that The Franklin Institute come to

them, Traveling Science Shows reached 275,000

youngsters from Maryland to Connecticut.

Looking Forward

The Science Museum enters 2005 focused on a

summer opening for Sir Isaac’s Loft, the seventh

campaign-funded permanent exhibit, and an

October 7, 2005 premiere of the 22,000-square

foot exhibit—Gunther von Hagens’ BODY

WORLDS: The Anatomical Exhibition of Real

Human Bodies.

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CENTER FOR INNOVATIONIN SCIENCE LEARNING

A Hidden National Treasure

The Center for Innovation, in collaboration with the

Franklin Center, has been a pioneer in the digital

presentation of the Institute’s unique artifact and

document collections in the history of science.

One such collection contains the Committee on

Science and the Arts’ 3,800 Case Files, containing

correspondence, drawings, patents and peer recom-

mendations starting in 1834, as well as documents

from 1824-1833 from the Institute’s Committee

on Inventions. These virtually unknown primary

sources of the history of science in America are, in

fact, national treasures. Through support from

Unisys Corporation, the Center for Innovation

published a prototype online presentation of the

Case Files, called “Scientists and The Franklin

Institute: Making Their Cases” (www.fi.edu/case_files).

The first two scientists whose files are featured are

William S. Burroughs (1897) and Elmer A. Sperry

(1914), the progenitors of Unisys, in recognition of

the sustained Unisys support for the Institute Web

site since its launch in 1994. The result is a resource

that can be used by anyone, from school children to

Ph.D. historical researchers.

Building Bridges between Teachers and Parents

Parent Partners in School Science (PPSS) finished its

third year of working with K-4 students, parents,

and teachers in three geographically and ethnically

diverse elementary schools in the School District of

Philadelphia. Project evaluation shows that PPSS

has demonstrated nationally significant strategies

for building successful collaboration among teach-

ers, parents, and students through science-learning

activities, both at home and at school. “I am inter-

acting with parents more now,” says one teacher,

“because PPSS is being generalized to other

aspects of school life.” A parent reports, “You get

welcomed into the school. I got to talk to [my

child’s] science teacher for the first time and see her

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In 2004 the Center for Innovation continued to seize new opportunities to

build on its nationally recognized strengths in science on the Web, profes-

sional development for teachers, women in science, youth leadership,

parent involvement and the history of science.

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science classroom. It opened up different aspects

of school for me.” Now in its third year, PPSS is

supporting school teams which will sustain the key

features of the project: Exploration Cards, sent

home by teachers for parents and children to use in

exploring science together, and Legacy Projects—

including an in-school garden—which bring parents,

teachers and students together for ongoing science

activity. Primary funding for PPSS comes from the

National Science Foundation, with additional

support provided by The Patricia Kind Family Foun-

dation, Dolfinger-McMahon Foundation and the

Seligsohn Foundation.

Highly Qualified Teachers

No Child Left Behind and many national studies

identify highly qualified teachers as essential for

student achievement in science. The Center for

Innovation is a longstanding partner with the

School District of Philadelphia in programs nurtur-

ing teacher development in science. In 2004 the

Center continued summer institutes and school

year mini-courses designed for K-8 teachers. Courses

were aligned directly with the district’s curricular

goals in science and were structured to provide

teachers with deeper understanding of standards-

based science concepts, familiarity with hands-on

science materials, and insight into the effective use

of online resources. In support of the Philadelphia

Math Science Partnership in particular, the Center

for Innovation created online Curricular Compan-

ions specifically geared to bolster designated

science topics for grades 7 and 8, including an

extensive section on tsunamis, following the

disaster in Asia, in the companion on “Inside the

Restless Earth.” Teachers access the Curricular

Companions directly from the School District Web

site for background resources, classroom material

(including a gallery of visual images), and links to

literature, social studies, mathematics and other

curricular areas.

Citywide Leadership for PACTS Students

PACTS achieved citywide recognition in its 11th

year as the Institute’s signature leadership and

science program for minority youngsters. Twenty-

one outstanding junior and senior students were

selected as “Explainers” and served as Institute

junior staff. “Explainers” work in several depart-

ments and host PACTS-sponsored events

throughout the year. In January PACTS hosted the

Regional Robot Contest for 28 teams of students,

ages 9-14, their parents and friends. The following

month PACTS staff, students, and alumni launched

the first “Careers in Science Day” for 500 high

school students visiting the Institute. In May PACTS

hosted a town meeting, “Students Making a

Difference,” which presented the results from the

PEERS (PACTS Environmental Education, Research,

and Service) project, funded by the National

Science Foundation. Representatives from Unisys,

which awarded five scholarships to PACTS graduat-

ing seniors, as well as the School District, Fairmount

Park, and the Philadelphia Water Department,

attended this event. And in August, PACTS students

won the first place award for the City’s YouthWorks

Work Ready summer program. Some 7,000 students

participated in the City’s program. Funding for

PACTS is provided by The Aramark Charitable

Fund, GlaxoSmithKline, The Janus Foundation,

Rohm & Haas Company, Unisys Corporation and

the Verizon Foundation.

The Next Online Revolution

The Institute was among the first science centers to

develop and launch a presence on the World Wide

Web in 1994. In its relatively short lifetime, the Web

has become an integral means of communication

and learning. In 2004 online traffic to the Institute

Web site brought 12.5 million visitors (23 percent

over 2003) who accessed 74 million Web pages (70

percent over 2003) throughout the year at

www.fi.edu. Files served increased 70 percent to

259,000,000.

Ten years after the Institute first ventured into

the Web, through the Center for Innovation, it

became one of the first science centers to join the

international Internet2 network, at the invitation

of MAGPI, the Mid-Atlantic Manager for Internet2

housed at the University of Pennsylvania. Internet2

is a regulated private network, led by major universi-

ties and laboratories around the world; it operates at

extremely high bandwidth to enable high-definition

broadcasting, multicasting and videoconferencing.

The Center for Innovation will be investigating

Internet2 as an exciting new vehicle for teacher

professional development, as well as for live

science programming for visitors to the Institute.

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THEFRANKLIN CENTER

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The Franklin Center oversees the Institute’s rich history and collections, and is a moving

force behind the Benjamin Franklin and Bower awards that honor outstanding accom-

plishments in science and technology that give birth to new disciplines, provide

breakthroughs in knowledge that enable other scientists make significant advances, and

improve the quality of life.

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Awards

The Institute’s Awards Week reached new levels of

success in 2004 on several fronts. Registration for

the April 29 Awards Ceremony and Dinner topped

800. As with other Institute endeavors, the Awards

Program drew broad national coverage, with print

media including The New York Times, The Inquirer,

and The Cleveland Plain-Dealer. This major fund-

raiser for the Institute was emceed by NBC’s Lester

Holt and netted a record $460,000, thanks to the

leadership of Friends Committee Chair Patricia M.

Morley and Corporate Committee Chair Manuel N.

Stamatakis.

Awards Week is more than a ceremony. It is

nearly a week of educational programs serving a

variety of audiences—including young people. The

Celebration of Science program, held in conjunc-

tion with the Institute’s Interpretive Services and

Seymour Benzer’s presentation on fruit fly behav-

ioral genetics. Indications are that this was a

successful model for using Internet2 to provide

unique educational experiences and to expand the

educational impact of the Awards Program. Also

new in 2004 was the birth of the Society of

Laureates, formed to facilitate fellowship among

Laureates, past and present.

Although the Awards Program culminates

during Awards Week each spring, it is a year-round

endeavor. By October the Trustees had approved

nominees for 2005 as presented by the Institute’s

Committee on Science and the Arts and the Bower

Awards selection committees.

Exhibit Development staff, provides opportunities

for the visiting public to learn about the work of the

Awards Laureates, many of whom were enthusiastic

participants in demonstrations in the Museum.

The Meet the Scientists program was again held in

collaboration with PACTS, the Institute’s very success-

ful program for minority students. Meet the Scientists

provides an exciting forum for high school students

to converse with world-class scientists about their

work. The Celebration of Science and Meet the

Scientists programs have contributed to the inter-

nationally unique nature of the Awards Program.

At the university level, each Laureate was

honored at symposia on the campuses of the

University of Pennsylvania, and Drexel and Villanova

universities. The Institute and the University of

Pennsylvania introduced an experimental Web cast

over Internet2, with a special introduction to

prepare high school students with background for

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Bower Award & Prize for Achievement in ScienceSeymour Benzer, Ph.D.

California Institute of TechnologyPioneering discoveries that both founded andgreatly advanced the field of neurogenetics,thereby transforming our understanding ofthe brain.

Bower Award for Business LeadershipRaymond V. Damadian, M.D.

Fonar CorporationDevelopment and commercialization ofmagnetic resonance imaging used in clinicalapplications, which has transformed thediagnosis and treatment of disease.

Benjamin Franklin Medal in ChemistryHarry B. Gray, Ph.D.

California Institute of TechnologyPioneering contributions in the field ofelectron transfer in metalloproteins.

Benjamin Franklin Medal in Computer andCognitive ScienceRichard M. Karp, Ph.D.

University of California, BerkeleyContributions to understanding the complexityof computations, which allows the develop-ment of practical solutions to many of today'simportant programming problems.

Benjamin Franklin Medal in ElectricalEngineeringRobert E. Newnham, Ph.D.

The Pennsylvania State UniversityInvention of multiphase piezoelectric trans-ducers and their spatial architecture, whichrevolutionized the field of acoustic imaging.

Benjamin Franklin Medal in MechanicalEngineeringRoger Bacon, Ph.D.

Union Carbide (retired) and AmocoCorporation (retired)Fundamental research on the production ofgraphite whiskers and the determination of their microstructure and properties.

Benjamin Franklin Medal in PhysicsRobert B. Meyer, Ph.D.

Brandeis UniversityCreative synthesis of theory and experimentdemonstrating that tilted, layered liquid crystalphases of chiral molecules are ferroelectric.

2004 Franklin Institute Awards Front (l-r): Laureates Robert E. Newnham, Ph.D., Harry B. Gray, Ph.D., RaymondV. Damadian, M.D., Seymour Benzer, Ph.D., Richard M. Karp, Ph.D., Robert B.Meyer, Ph.D. and Roger Bacon, Ph.D.

Behind (l-r): Lester Holt, Institute President Dennis M. Wint, Ph.D., Committeeon Science and the Arts Laureate Sponsors Peter A. Lewin, Ph.D., Klaus H.Theopold, Ph.D., Bradford A. Jameson, Ph.D., Donald H. Silberberg, M.D.,Bruce Char, Ph.D., Peter J. Collings, Ph.D., Brian J. Sullivan, Ph.D., Trustee GaryJ. Anderson, M.D. and Institute Vice President Philip W. Hammer, Ph.D.

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Collections Bring History To Life

The Institute holds a number of historically signifi-

cant collections, most notably the Benjamin

Franklin Collection, Wright Brothers Aeronautical

Engineering Collection, and Fairmount Waterworks

Collection. Portions of these collections are on

display in the Museum. The extensive archives of

the Committee on Science and the Arts, starting in

the early 1800s include correspondence, drawings

and other materials that provide a rich history of

science and technology in America. Collaborations

with the Science Museum and Innovation Center

make such resources more accessible to visitors,

educators and scholars.

The Journal of The Franklin Institute, one of the

oldest technical journals in continuous publication,

is another valuable resource in tracking the history

of science and technology. The entire contents of

The Journal, which started in 1826, are now avail-

able online. As a modern day publication, The

Journal of The Franklin Institute is an active and

growing resource, published in conjunction with

Elsevier. In the past two years, Journal submissions

have increased by more than 50 percent. In

addition to publishing an annual issue based on

the Institute’s Awards Program, The Journal is

exploring areas for special issues that will broaden

the scope of its articles.

Curatorial Work

In January 2004 the curatorial staff completed a

Museum Assessment Program Collections Steward-

ship Self-Study for the American Association of

Museums. This self-assessment of the Institute’s

collections management policies and practices was

followed by initial peer review site visits in June

and September in preparation for the Institute’s

accreditation by AAM in 2008. The accreditation

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process ensures the quality and integrity of

member museums by requiring both self review and

subsequent peer review of their operations.

The curatorial department also completed

conservation of the Wright Brothers Collection,

under a grant from the Save America’s Treasures

program, and prepared articles from the Institute’s

Franklin collection for the Tercentenary exhibit.

With the opening of Titanic: The Artifact Exhibition,

curatorial assumed responsibility for the daily

monitoring of exhibit artifacts.

The Franklin Institute collections have gained

popularity with filmmakers interested in authentic-

ity, signaling a national and international media

awareness of the Institute. The Institute was featur-

ed prominently in the public television series Great

Museums as well as in History Channel and Japanese

documentaries on Benjamin Franklin. In addition,

Walt Disney Studios’ blockbuster National Treasure,

which opened in 2004, included segments filmed in

the Benjamin Franklin National Memorial using

artifacts from the Institute’s collection.

The Library

Library staff began implementing the Board approved

Collection Development Policy and Deaccession

Plan, intended to create a library collection consis-

tent with the Institute’s mission. Several Franklin-

related books from the Institute’s rare book collec-

tion were sent to the Conservation Center for Art

and Historical Artifacts in preparation for the

Tercentenary exhibition on Franklin, in which they will

be featured.

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FINANCIAL REPORT

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December 31, 2004 December 31, 2003

Unrestricted Assets

Revenue, support, and investment incomeProgram revenueAdmission fees $ 8,003,197 $ 5,902,393Ancillary activities 3,635,864 3,353,739Museum projects 3,970,447 3,170,735Educational programs and services 1,763,202 2,045,558Other 604,135 66,887

Total program revenue $ 17,976,843 $ 14,539,312Support

Annual giving $ 2,545,917 $ 2,513,461In-Kind contributions 2,093,403 808,727Appropriations (City of Philadelphia, Commonwealth of PA) 708,600 722,990Other contributions 129,947

Total support 5,477,867 4,045,178Investment return designated for current operations 583,069 643,007Net assets released from restrictions/satisfaction of purpose restrictions 1,344,625 2,744,799Total revenue, support, operating investment income and net assets released from restrictions $ 25,382,404 $ 21,972,296

ExpensesProgram expensesMuseum operations $ 14,603,109 $ 12,602,542Ancillary activities 1,651,909 1,597,162Museum projects 3,753,171 2,660,694Educational programs and services 976,173 1,131,736Bower Award 740,863 842,462

Total program expenses 21,725,225 18,834,596Interest 955,758 943,820

Development–Capital Campaign 133,431 1,127,464General development 884,733 532,692

Total expenses 23,699,147 21,438,572Operating income before depreciation $ 1,683,257 $ 533,724

Depreciation 4,431,933 3,680,707Operating income (loss) $ (2,748,676) $ (3,146,983)Non-operating investment income, expenses and releases

Net assets released/satisfaction of purpose restrictions $ 8,477,610 $ 6,887,887Investment return net of amounts designated for current operations 646,390 1,322,844

Total non-operating income, expenses and releases 9,124,000 8,210,731Increase in unrestricted net assets $ 6,375,324 $ 5,063,748

Temporarily Restricted Net Assets

Contributions $ — $ 2,832Contributions–Capital Campaign 8,367,047 6,932,074Investment return net of amounts designated for current operations 2,002,667 4,196,778Investment return designated for current operations 440,448 385,515Net assets released from purpose restrictions (9,822,235) (9,632,686)

Increase in temporarily restricted net assets $ 987,927 $ 1,884,513

Permanently Restricted Net Assets

Net appreciation (depreciation) of investments held by third-parties 419,886 1,149,188Increase (decrease) in permanently restricted net assets $ 419,886 $ 1,149,188

Change in net assets $ 7,783,137 $ 8,097,449Net assets, beginning of year 101,390,468 93,293,019Total net assets, end of year $ 109,173,605 $ 101,390,468

Statement of Financial Position as of December 31, 2004 and December 31, 2003

FINANCIAL REPORT

23

December 31, 2004 December 31, 2003

Assets

Cash and cash equivalents $ 4,781,926 $ 7,618,637Accounts receivable, net 899,620 744,984Pledges receivable, net 10,360,996 7,251,214Inventory 325,095 355,108Prepaid and deferred expenses 942,361 607,009Pooled investments 33,215,003 31,286,049

Investments held by a third party 11,583,416 11,163,530Other investments 14,273 14,273Property, buildings and equipment, net 71,114,107 66,910,808Cash restricted 1,436,200 1,436,200Deferred loan costs, net 308,531 322,920

Total assets $ 134,981,528 $ 127,710,732

Liabil ities and Net Assets

LiabilitiesAccounts payable and accrued expenses $ 3,759,484 $ 3,014,050Deferred revenue 3,235,562 4,203,243Capitalized lease obligation 21,054 47,795Long-term debt 18,791,823 19,055,175Total liabilities $ 25,807,923 $ 26,320,263

Net assetsUnrestricted $ 64,429,073 $ 58,053,749Temporarily restricted 30,721,645 29,733,718Permanently restricted 14,022,887 13,603,001

Total net assets $ 109,173,605 $ 101,390,468Total liabilities and net assets $ 134,981,528 $ 127,710,731

Statement of Financial Position as of December 31,2004 and December 31, 2003

2004 CONTRIBUTED SUPPORT continued BOARD OF TRUSTEES

33

William J. AveryChairman of the Board

Joseph L. Castle IIVice Chairman

Dennis M. Wint, Ph.D.President and CEO

Reneé AmoorePresidentThe Amoore Group, Inc.

Bernard E. Anderson, Ph.D.Whitney M. Young, Jr. Professor of ManagementUniversity of Pennsylvania

Gary J. Anderson, M.D.Managing DirectorTL Ventures LLC

Frank Baldino, Jr., Ph.D.Chairman and CEOCephalon, Inc.

Scott A. BattersbyVice President and CorporateTreasurerUnisys Corporation

David J. BerkmanExecutive Vice PresidentAssociated Group, LLC

Renee B. Booth, Ph.D.President Leadership Solutions, Inc.

Charles R. Bridges, M.D., Sc.D.Clinical Director of Cardiac SurgeryPennsylvania Hospital

Donald E. CallaghanPrincipalHirtle, Callaghan & Company

Michael F. CamardoExecutive Vice PresidentLockheed Martin

Robert M. ChappelearSenior Vice President, MarketInvestmentBank of America Private Bank

The Honorable Augusta A. ClarkRetired, Secretary of Agencies,Authorities, Boards & Commissions

I Michael CoslovChairman and CEOTube City, Inc.

David R. CurryCommunity Volunteer

Richard H. DilsheimerCEODilsheimer Communities, Inc.

Bruce D. RubinVice President and GeneralManagerSunoco, Inc.

Frank P. Slattery, Jr.President Quintus

Ann R. SorgentiCommunity Volunteer

William J. StallkampManaging Director Penn Hudson Financial Group, Inc.

Joan N. Stern, Esq.PartnerBlank Rome LLP

James M. Wilson, M.D., Ph.D.John Herr Musser Professor of ResearchUniversity of Pennsylvania

Paul H. Woodruff, PE, DEEPresident Mistwood Enterprises

Tadataka Yamada, M.D.Chairman, Research andDevelopmentGlaxoSmithKline

Lore N. YaoCommunity Volunteer

Ex-officio MembersAnne F. Hamilton

Bradford A. Jameson, Ph.D.

Marsha R. Perelman

The Honorable Edward G. Rendell

The Honorable John F. Street

Paul G. Vallas

The Honorable Anna C. Verna

Emeritus MembersCharles L. AndesChairman Emeritus

Henry M. Chance II

Bowen C. Dees, Ph.D.President Emeritus

James J. Eberl, Ph.D.

Richard T. Nalle, Jr.

James A. UnruhChairman Emeritus

Honorary MemberJoel N. Bloom

Elected OfficersWilliam J. Avery Chairman of the Board

Dennis M. Wint, Ph.D.President and CEO

Larry DubinskiVice President for Developmentand General Counsel Secretary

Donna D. SteinSenior Vice President, Finance andAdministrationTreasurer and Controller

Leadership CouncilDennis M. Wint, Ph.D.

Larry DubinskiVice President for Developmentand General Counsel

Rosalyn J. McPhersonSenior Vice President, Marketingand Science Center Programs

Carol Parssinen, Ph.D.Senior Vice President, Center forInnovation in Science Learning

Donna D. SteinSenior Vice President, Finance andAdministration

Philip W. Hammer, Ph.D.Vice President, Franklin Center

Richard D. RabenaVice President, Operations

Steven L. Snyder, Ph.D.Vice President, Exhibits & ProgramDevelopment

Reid O. StylesVice President, Human Resources

List as of December 13, 2004

Kevin F. DonohoePresident The Kevin F. Donohoe Company, Inc.

W. Joseph DuckworthPresident Arcadia Land Company

J. Michael Fitzpatrick, Ph.D.Retired, President and COORohm & Haas Company

Pamela Lolley FreyExecutive Vice President Wachovia

William J. FrielExecutive Vice President,Corporate BankingPNC Bank

Richard A. GreenawaltPrincipalRMK Associates

S. Matthews V. Hamilton, Jr.President Travel Services Company

Roger A. KroneVice President Army ProgramsThe Boeing Company

Elaine LevittCommunity Volunteer

Charisse R. Lillie, Esq.Vice President, Human ResourcesComcast Corporation

Ira M. LubertPrincipalLubert-Adler Management, Inc.

Miriam G. MandellVice President MGM Consulting Corporation

Collin F. McNeilPresident The Penjerdel Council andRegional Foundation

Ronald J. NaplesChairman and CEOQuaker Chemical Corporation

Denis P. O’BrienPresident PECO Energy Company

Samuel J. PattersonChairman and CEOVeridyne Inc.

Irene M. QualtersVice President, ResearchInformation ServicesMerck & Co., Inc.

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222 North 20th Street 215.448.1200Philadelphia, PA 19103-1194 www.fi.edu

Science Museum & Fels Planetarium

Mandell Center & Rathmann Hall of Science

Tuttleman IMAX Theater

The Benjamin Franklin National Memorial