Michael K. Shinoda Endowed Scholarship

Winter 2014

Annual Report on the

Endowment at Art Center

Financial Summary

Roster of Scholars

Featured Scholar: Pavin Chaisua

Featured Scholar: Anthony Dylan Cunningham

Scholarship Facts

Thank you for providing critical scholarship support for our future art and design leaders. If you have questions about this report or if you would like additional information, please contact:

Amy Swain Director of Development 626-396-2427 Amy.Swain@artcenter.edu

Contents

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I am pleased to present you with the annual report on the Michael K. Shinoda Endowed Scholarship.

As you know, today’s tight credit markets and an erosion of federal and state support have made it harder than ever for deserving students to access an Art Center education. The College has begun taking bold steps to make our College affordable. We have streamlined our administration, followed a disciplined budget process, and increased the efficiency of our operations—all with an eye on controlling costs for students.

Nevertheless, exceptional art and design education remains expensive to deliver. Schol-arships like the Michael K. Shinoda Endowed Scholarship continue to be essential for helping our future art and design leaders fulfill the promise of their extraordinary talent. For this I am deeply grateful. Your commitment does more than bridge the financial gap for our best and brightest students. It also provides valuable encouragement as our students prepare for life-changing careers.

Lorne M. Buchman President

A Message from the President

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An endowment is a long-term investment that creates financial stability, providing the College dependable sources of revenue. Endowment gifts are invested by the College in pooled investment funds with the goal of ensuring that the principal maintains its purchas-ing power over time in order to provide support in the future. The benefits of these lasting gifts have been felt across campus, with every dollar helping to finance vital activities and shape the character of the college, ensuring permanent support for the many endeavors of Art Center’s students.

Named endowed funds own shares in the investment pool. The number of shares each fund owns depends on the amount of the gift and the market value of the investment. Us-ing the spending rule approved by the Board of Trustees, the College calculates a distribu-tion per share to create a spendable amount each year.

Art Center’s Endowment and Quasi-endowment Market Values (in dollars)

Total Art Center Endowment in Unitized Pool (in dollars)

Fair Market Value as of June 30, 2012 48,351,841

Fair Market Value as of June 30, 2013 53,829,922

Percent of Increase 11.32%

Michael K. Shinoda Endowment (in dollars)

Principal as of June 30, 2013 123,454

Fair Market Value as of June 30, 2013 146,150

FY 13 Spending Rule (Annual Payout) 4,823

Endowment at Art Center

Dec. 31, 200320,719,000

Dec. 31, 200422,077,000

Dec. 31, 200535,748,000

Dec. 31, 200642,531,000

Dec. 31, 200743,182,000

Dec. 31, 2009 42,938,000

Dec. 31, 201042,869,000

June 30, 2011 52,026,000

June 30, 2012 48,480,000

Dec. 31, 200833,432,000

June 30, 2011 0

June 30, 2012 10,000,000

Endowment Funds

Quasi-endowment (board-designated)

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Michael K. Shinoda Endowed Scholarship

Endowed scholarship funds provide dependable support for students now and in perpetuity.

The Michael K. Shinoda Endowed Scholarship is awarded to entering graphic design or illustration students based primarily on need. As an endowed scholarship, this gift will create educational opportunities for students in perpetuity.

Fund activity for the 2013 fiscal year:

Endowed Scholarship Spending Account (in dollars)

Opening Fund Balance July 1, 2012 2,078

FY 13 Spending Rule (Annual Payout)* 4,823

Scholarship Awards -728

Available for Awarding as of June 30, 2013** 6,173

2014 fiscal year preview:

FY 14 Spending Rule (Annual Payout)* 5,210

Scholarship Awards July 1, 2013 - January 31, 2014 -11,739

*Spending Rule (Annual Payout): The College’s Board of Trustees has adopted a spending policy of 4.0% with a view toward balancing the need for expendable funds for the College against the need to preserve the endowment against inflation. In setting the policy, the Board considered: 1) preservation of asset values, 2) preservation of purchasing power, and 3) consistency of spending over time. The distribution is determined by applying 4.0% to the average of the fair market value of investments as of the end of the five preceding fiscal years. Endowed gifts

are comingled with the entire endowment, and are not invested separately in their own accounts. The FMV and Spending Rule of individual endowed funds are calculated internally based on the number of units a fund has and the FMV of the entire endowment at a given point in time. This “Unitized Endowment Pool” approach is a commonly used method at universities.

**Available Funds: To build dependable resources for students, the scholarship committee often earmarks funds to support recipi-ents throughout their entire careers at Art Center, as long as enrollment and performance requirements continue to be met. Depending on each recipient’s class level, this creates the possibility that a portion of funds may be reserved for dis-tribution beyond the current award cycle. Having funds in reserve also provides valuable flexibility to the College, allowing Art Center to recruit new students and retain students in financial distress.

Fund Purpose

Financial Summary

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Units GraduationStudent Name Major Start Term Completed Term

Pavin Chaisua Illustration 09SU 141 13SU

Anthony Dylan Cunningham Graphic Design 13SU 52

Roster of Scholars

Scholarship Award Amounts: Un-less the scholarship is designated as a full tuition or half tuition schol-arship, the award amount is deter-mined by the Office of Financial Aid based on available resources and the student’s financial need. Typical awards range from $1,000 - $3,000 per term for students who are en-rolled full-time and are adjusted for students in Art Center Lite terms.

Required Units to Graduate: BFA programs must complete 135 total units (90 studio units and 45 academic units). BS programs must complete 144 total units (99 studio units and 45 academic units). Graduate students must successfully complete all six terms and complete a thesis in order to be eligible for graduation.

Scholarship Awarding: Recipients of this scholarship are selected pursuant to the current policies and procedures for awarding financial aid as administered by the Col-lege’s Office of Financial Aid. Cur-rently, all scholarships at Art Center consider merit and financial need, in addition to any criteria set by the donor. Each department deter-mines the student’s merit based on portfolio review and the Financial Aid office determines need based on FAFSA information, with the exception of international students.

Fall 2013 Tuition: Undergraduate Tuition (per term): $17,990; Gradu-ate Tuition (per term): $19,013

Shinoda Scholars for the 2012 academic year

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I am a native of Los Angeles. I am an Asian-American raised from a first generation Asian family. I feel I understand both Asian and American culture which gives me an interesting perspective on how I view art and life. I love reading and experiencing new things which also adds to my point of view. I ask a lot of questions and have a huge curiosity. I’ve been drawing since I was a kid which I attribute to being the only child until I was in my first grade when my little brother was born. The moments of solitude allowed me to explore my craft of drawing and become immersed in my own world and imagination. I believe these skills now translate into what I love doing, which is telling stories visually.

Pavin Chaisua Illustration, 8th Term

Featured Scholar

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Much of my current work is inspired by everything around me, especially on campus at Art Center. I talk to a lot of people from different majors and people in general. I try to practice putting as much thought and story telling into my work. I want to engage the audience. There are many ways I want to touch base with them, ranging from a simple provoking of a muse to a chuckle to a full on analytical observation. These are just a few of the things I would like my viewers to do and/or feel. One of the best things I can practice at Art Center is putting purpose and concepts into my work and try to effectively communicate them. Art Center has been stressing the importance of concepts and always having meaning behind one’s work. This makes for effective artist and design and work overall.

I have confidence that my current instructors will help me achieve my goals, both technically and conceptually. Art Center has an unbelievable environment. I have never been surrounded by so many intelligent and hard working students and faculty. Students here can pull all nighters without hesitation. Many share the same ambition of making a difference and the same passion for art and design.

When I was informed I was awarded the Michael K. Shinoda Endowed Scholarship, I felt that I am definitely meant to make a difference in this world. I am very grateful for your great generosity with this scholarship and helping me realize that my dreams are becoming a reality. Art Center has the necessary tools for an individual to make a difference in the visual creative field as well as the world. Many people that have gone through this program are world changers. That is inspiring in itself.

Thank you so much for your incredible generosity and helping me with the opportunity to learn from such a great school. It has motivated me to aim high in my pursuits.

Pavin

A Message from Pavin

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Pavin Chaisua

This project was from my character design class where we had to take a style from an existing cartoon and translate it into an existing live action movie. The purpose of the assignment was to be able to breakdown style and capture a character’s personality for story telling purposes.

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Pavin Chaisua

These are a few different character designs that I have been exploring.

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My name is Anthony Cunningham and I am from Redondo Beach, California. I have lived here my whole life and love being by the beach. I graduated from Redondo Union High School and before going to Art Center I went to school at El Camino College. I took design and art classes to build up my portfolio and get ready for Art Center. I love to play sports and be active as much as I possibly can. I fell in love with Graphic Design while I was in High School. At first I wanted to become a 3D modeler, but then I found out about Graphic Design. I enjoyed looking at all the different element that compiled the different posters that I looked at. It sparked my interest in the field and now I am becoming a designer myself.

Anthony Cunningham Graphic Design, 1st Term

Featured Scholar

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It is an honor to be receiving this scholarship. When I first got the news that I had gotten a scholarship towards my studies, I was ecstatic and speechless. Words can-not describe how happy I am to be receiving this scholarship. This money will greatly help while I continue my studies at Art Center. I am passionate about my work and I will strive to be one of the best there is in the design community.

The Art Center life has proven to be a struggle (especially around weeks 12-14), but I love coming here and getting a chance to show my creative side all the time. Art Center is showing me new ways of tackling a project/ job that has been given to me. I am able to look at things differently and find new approaches to solve a problem creatively. I have also learned that coming up with ideas fast can be important as well within a group of designers. With the time frame of classes, this fast pace of creative problem solving helps me as a designer to come up with ideas more quickly. I have learned not to become obsessed with just one idea and also to take critique from my peers into account. Everything that people tell me, I write down and find ways to incorporate into my designs, even if they may or may not work.

I have learned so much already in my first term of attending this school. With this scholarship, I will be able to stay at Art Center and continue to improve on my design career. Thank you so much for this opportunity.

Sincerely,

Anthony Cunningham

A Message from Anthony

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Anthony Cunningham

Wire frame peace sign with hand. Spot welded wire, forming a peace sign with three-dimensional hand making a peace sign.

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Anthony Cunningham

My secret desire book cover project.

The assignment was to pick a secret desire and find a way to express your desire through the book cover. My desire: becoming a vampire.

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Scholarships can transform a student’s life by bringing an Art Center education within reach. But there are many other reasons scholarships can be powerful investments:

• Scholarships allow Art Center to better compete with peer institutions for the very best students. These students contribute to a robust education, and in turn help Art Cen-ter attract and retain outstanding faculty, who are eager to work with top-flight artists and designers.

• Scholarships contribute to Art Center’s goal of increasing diversity by attracting stu-dents with rich and varied sets of experiences. This adds value to every single classroom at Art Center, and forges strong ties to communities across the globe.

• Scholarships help make up for recent reductions in federal and state support. In the last two years Art Center’s Work-Study program has been slashed by 50 percent; and eligibility for Pell Grants was lowered this year to household income levels of $23,000, creating a “donut hole” through which many prospective students fall.

• Scholarships are especially needed to address the high cost of tuition common to art and design colleges. These costs arise from Art Center’s commitment to providing: the best specialized facilities, equipment and technology; a low student/faculty ratio; and a faculty made up of seasoned industry leaders. Excellence has a cost associated with it.

Other facts

Art Center graduates who take out student loans leave with an average debt of $97,000– an alarming debt burden for any young professional. Many top students choose not to attend for this reason.

Many students willing to take out private loans simply can’t access them in the current economy. This is the single most cited reason qualified prospective students now give for deciding not to come to Art Center.

Of the 40% of graduates who responded to Art Center’s 2012 Annual Graduate Employ-ment Survey and who have been out for one year, 92% were employed; however, this figure does not address the issue of the best students being able to access Art Center.

Thank You for Sharing Our Commitment to Exceptional Art and Design Education

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This report is intended to keep you informed about the impact of your gift. We appreciate your feedback so that we can ensure our stewardship program meets your needs.

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