Dear Alumni, Parents, and Friends of Kemper:

Thanks again for your continued interest in Kemper! Response to our students’ recent fund appeal has brought us over $700,000 in donations and pledges. Although that amount is still short of our goal, it is a tribute to the generosity of our friends everywhere.

Many of you have called or written, asking what else you can do to help Kemper. Two factors are critical to our mission, and you can help us with both.

First, we need cadets. If our alumni, parents and friends could help us recruit 250 students over and above our internal recruiting efforts next fall, Kemper would be well on the way to operational stability. That might sound like a large number, but it’s only one recruited student for each twenty alumni. Do you know a student, a family, or a relative who could benefit from Kemper’s structure and guidance_ Please contact us.

Second, the fact remains that we are short of our fund raising goal of $1.3 million. Your continued generosity towards the realization of this financial goal will help us tremendously during this period of reorganization.

Several weeks ago, I promised that this administration would be in frequent contact with all of Kemper’s friends. Below this letter, you’ll find an outlined report on what has happened in recent weeks, where we are now, where we’re going, and how we’re planning to get there. It’s going to be a tough job, but we’re excited about the possibilities.

The formation of Friends of Kemper Foundation, Chaired by alum Doug Burns '64-65, is our latest piece of encouraging news.  This foundation pledges to "uphold the values established by the founders of Kemper Military School"  It will center its efforts in fundraising, improving communication, and in establishing credible and accountable relationships with alumni.  Burns can be reached at 214.244.7372 for details.

Please help us keep in touch, and lower our mailing costs at the same time. If your computer is equipped with an Internet connection, you can find weekly updates on our progress. Just steer your browser to kemper. Watch for the “News” link-coming soon.

If you’d prefer to receive your updates in the form of e-mail, just let us know. Don’t forget to include your e-mail address if you send this request via regular mail. Online, you can contact our Alumni Director, Thomas “Chili” Challender at: .

Finally, if you know of a Kemper parent, alumnus, or friend who has been missed, please help us re-establish contact. Each contact is crucial.

Thanks again for your support during this exciting and challenging time. I remain

Respectfully

Edward E. Ridgley, Ph.D.
President
KMS ‘ 60 – ’66
KEMPER PROUD!

SITUATION REVIEW

Where we were…

In August of 1999, our projections indicated that Kemper’s operational budget would hit a serious shortfall in the Spring of 2000.  Numerous financial reforms had already been put into place.  Further measures were taken, and by the close of the 1999-2000 academic year, spending had been reduced by over $600,000.  Nevertheless, expenses finally outstripped revenues, and it looked like we might be forced to close the school.  The problem is quite complex, and the causes are numerous.

• Enrollments have been in general decline for years
• Although many loyal Alumni and Parents have continued to refer students, it’s been a long time since we’ve had a properly coordinated referral network
• We’ve been burdened with increasing long-term debt and old vendor debt
• We found that Kemper had been offering a number of money-losing programs for several years
• Kemper has never accumulated a sufficient endowment to carry it through the lean cycles

In an inspiring and highly publicized move, our students organized and conducted their own fund drive.  Working on their own – between classes, study periods, and final exams – the Corps of Cadets raised over $600,000 in cash and pledges.  Today, that figure has climbed to over $700,000.  At their May meeting, our Board of Trustees voted to reorganize the school.

Reorganization simply means that we have been given time to change the way we operate.  The old ways won’t work anymore, and must be replaced by a system that will move us onto a firm and secure financial footing.  Accordingly, we’re restructuring to a more business-like model.

• We’ve continued to slash spending across the board
• With Court approval, we’ve retained a team of CPAs to reorganize our Business Office
• We’re retained a collection’s attorney to substantially reduce our outstanding receivables
• We’ve retained an advertising, marketing, and public relations firm
• We’re making a concerted effort to reorganize and revitalize our referral network
• We’re looking at some exciting new programs that will make us more competitive
• We’re aggressively recruiting students for the Fall semester
• We are researching the possibility of retaining the services of a professional fundraising firm
• We are absolutely committed to building a substantial endowment fund
• We are improving communication with Alumni, Parents, and Friends of Kemper

Ending our Junior College Program was a tough decision for our Board.  We were certainly proud of our long association with the Military.  Unfortunately, the program was extremely expensive to maintain.  Without an endowment fund to cover this shortfall, we simply could not afford to continue the program.  This is a really positive change for Kemper, because it will allow us to focus our resources and energies on the Junior High School and High School Programs, which was the way Kemper began.

Reorganization is an exciting and positive change for Kemper.  It will allow us to serve many future generations of Cadets.  But, it won’t be easy.  The hardest work lies before us.  As we move through the reorganization period, numerous tough decisions will have to be made.  We will encounter occasional bumps and hurdles, but we are determined to restore Kemper to her rightful place among the leaders of the Nation’s military schools.

• Kemper needs students
• While we’re recruiting students, Kemper needs operational funding
• For the benefit of future cadets, Kemper needs a substantial endowment
• Call to talk to Doug Burns, Chair of the Friends of Kemper Foundation. He will be able to help you customize your donation to fit your needs.

Each of these needs is extremely important!

• High enrollments are the key to successful operations.  Enrollments pay the monthly bills.  It’s just that simple.  We’re asking all Alumni, Parents, and Friends of Kemper to send us leads, contacts, or actual students.  We’ll do the follow-up work, and we won’t let you down.  Think of it.  If our network of friends can recruit just one new student for each 20 Alumni, our enrollment would increase by 250 cadets!  What would that mean to Kemper’s bottom line_  Well over $4 million the first year!  That’s why new students are so critical to our success.  We’ve included a recruiting lead card for your convenience, or you may simply contact our Admissions Office at .

• Our many friends have been extremely generous to Kemper – particularly during the Cadet’s recent fund drive.  Nevertheless, we’re still well short of our goal for this summer.  Your continued support is vital to our success.  Please help us continue Kemper’s mission.  You’ll find a pledge card enclosed in this packet for your convenience.

• All schools experience cash cycles, and Kemper is no exception.  The annual yield from a healthy, well-invested endowment fund will help stabilize our cash flow in the future.

Thanks for your help.  Look for more updates in the future.