Annual Report

BOARD OF DIRECTORS

JAMES R. DONNELLEY, Chairman*Former Vice ChairmanR. R. Donnelley & Sons Company

RICHARD L. KEYSER, Vice Chairman*Chairman EmeritusW.W. Grainger, Inc.

HAROLD B. SMITH, JR., Vice Chairman*Chairman of the Executive CommitteeIllinois Tool Works Inc.

JOSEPH M. CAHALANPresidentThe Xerox Foundation

SCOTT S. COWENPresidentTulane University

GREGORY L. GEOFFROYPresidentIowa State University

LINDA R. GORSLINEDirector of the Upper SchoolNorfolk AcademyNorfolk, Virginia

MARK A. HAUGHTPrincipalAltus High SchoolAltus, Oklahoma

EDWIN S. HEDGEPETHDirector of Secondary InstructionKnox County SchoolsKnoxville, Tennessee

MICHAEL J. HEILMANAssistant Superintendent for Secondary EducationBismarck Public SchoolsBismarck, North Dakota

MICHAEL G. JOHNSONVice President, Human Resources–U.S. OperationsUPS

TIMOTHY E. McGUIRE*PresidentNational Merit Scholarship Corporation

BRIAN C. MITCHELLFormer PresidentBucknell University

S. GEORGIA NUGENTPresidentKenyon College

CE QUANDTPrincipalNorth Central High SchoolIndianapolis, Indiana

THOMAS J. QUINLAN III*President and Chief Executive OfficerR. R. Donnelley & Sons Company

DIANA M. SCHMELZER*Former PrincipalUniversity High SchoolIrvine, California

SUE SLOANExecutive DirectorPPG Industries Foundation

DEBORAH V. TRASKELL*Executive Vice PresidentState Farm Insurance Company

DIRLENE WHEELERPrincipalSheridan High SchoolSheridan, Wyoming

Honorary Director

MARIANNE C. RODERICK, President Emeritus

OFFIC ERS

TIMOTHY E. McGUIREPresident

KAREN M. BOICHVice President and Treasurer

JEFFREY Z. LITTLEVice President and Executive Director of Administration

TIMOTHY J. STERZIKVice President and Executive Director of Program Evaluation

RICHARD L. SEVCIKSecretary

*Executive Committee

1National Merit Scholarship Corporation

contentsPresident’s message · 2

Highlights of the 2010 competitions · 4

National Merit® Scholarship Program · 6

National Achievement® Scholarship Program · 10

Making an iMPAct · 13

Sponsors: National Merit Program · 28

Sponsors: National Achievement Program · 35

colleges and universities enrolling 2010 Merit Scholar® awardees · 36

colleges and universities enrolling 2010 Achievement Scholar® awardees · 39

Financial Report: June 1, 2009–May 31, 2010 · 41

National Merit Scholarship Corporation (nmsc) is a private, not-for-profit organi-zation that operates without government assistance. nmsc is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code; grants and contributions to nmsc are deductible by the donor under Section 170 of the Code. All nmsc re-sources are committed to the conduct of its two annual competitions, the National Merit Scholarship Program and the National Achievement Scholarship Program.

The corporate logo and the names National Merit, National Achievement, Merit Scholarship, Achievement Scholarship, Merit Scholar, and Achievement Scholar are feder-ally registered service marks of nmsc. The corporation enforces its rights in these marks. psat/nmsqt is a registered trademark of nmsc and the College Board. sat, Advanced Placement Program, and ap are trademarks of the College Board, which was not involved in the production of this publication. The registration and service mark symbols appear in this report only on initial use in each chapter for reasons of style and format.

October 31, 2010

2 Annual Report

President’s message

Since its founding in 1955, National Merit Scholarship Corporation (nmsc) has been dedicated to

ensuring that the very best minds of the country, our most valuable resource, are given the opportunity

to pursue higher education that will enable them to serve the nation as productive citizens in whatever

path they choose in life. Students recognized by nmsc have been making an impact on American

business, government, philanthropy, and society for more than 55 years. They have proven that nmsc’s

mission to promote the development of future leaders and innovators for the United States by identify-

ing and supporting academically talented students is successful.

In 2010, nmsc reached a milestone in the Corporation’s history with the launch of the nmsc Online

Scholarship Application (osa), which has greatly benefited the students and the high schools partici-

pating in our competitions. Today’s high school students rely on technology in so many aspects of their

education. They depend on technology daily to accomplish their academic goals through the use of

Web-based programs. Recognizing this need in America’s students, we have met their expectations this

year with the launch of the osa. In this Information Age, we are serving those who will serve America.

We fully expect the intelligent and hardworking 2010 nmsc Scholars to make an impact on our country

in the future in the same way that Scholars have for the last half century. As you read through the stories

of nmsc Scholars highlighted in this 2009–10 Annual Report, we hope you will be inspired, as we are, by

their impressive accomplishments. We are tremendously grateful for our many corporate and college

sponsors who have invested in the talent of these young students over the years and enabled us to award

over 356,000 scholarships since our inception in 1955. Their support allows us to provide some of the

most outstanding students of our country with the opportunity to make an impact on America’s future.

Timothy E. McGuirePresident

A


“StudeNtS ReCogNized by NMSC hAve beeN MAkiNg AN iMPAct oN AMeRiCAN buSiNeSS, goveRNMeNt, philANthRopy, ANd SoCiety foR MoRe thAN 55 yeARS.”

4 Annual Report

HigHligHts of the 2010 competitions

National Merit Scholarship Corporation (nmsc) con-ducts two annual academic competitions: the National Merit® Scholarship Program that is open to all students who meet entry requirements and the National Achieve-ment® Scholarship Program in which Black American students can participate. The 2010 competitions began in October 2008 with a qualifying test administered by about 22,000 high schools and were completed in the spring of 2010 when scholarships were awarded.

National Merit® Scholarship ProgramOver 1.5 million students who met program partici-pation requirements and took the 2008 Preliminary sat/National Merit Scholarship Qualifying Test (psat/nmsqt®) entered the competition for recognition and college scholarships to be awarded to high school seniors in the spring of 2010.

• 35,525 entrants were named Commended Students in recognition of their outstanding performance on the qualifying test and their potential for success in challenging college studies.

• 16,259 other participants, the highest-scoring en-trants in each state, were designated Semifinal-ists and had the opportunity to continue in the competition for National Merit Scholarship awards by fulfilling several additional requirements.

• 15,075 of the Semifinalists were notified in February 2010 that they met academic and other requirements to attain Finalist standing and were being considered for Merit Scholarship® awards.

• 8,292 Merit Scholar® designees, chosen from the Finalist group, received Merit Scholarship awards worth a total of $36.9 million. In addition, 1,359 other outstanding program participants (who were not Finalists) received Special Scholarships, valued at $12.2 million. These Special Scholarships are pro-vided by corporations, company foundations, and business organizations to complement their Merit Scholarship awards.

Tentative college majors

Fine arts/music (3%)

Engineering (20%)

Computer and information sciences (3%)

Undecided (15%)

Biology/biomedical sciences (11%)

Health and clinical science professions (9%)

Social sciences/psychology (9%)

Physical sciences (5%)

Business/finance (4%)

English/journalism/ creative writing (4%)

Mathematics/statistics (3%)

History/humanities/ pre-law studies (3%)

Other majors combined (11%)

of Scholars who attended high schools that rank students were in the top tenth of their class compared to 34% of all college-bound seniors.

of Scholars had a high school grade average of A- or above compared to 44% of all college-bound seniors.

94% 98%

200 400 600 800

Critical Reading

Mathematics

Writing Skills

Average sat scores

Scholars sat Seniors


total: $51.5 million for 10,454Merit Scholarship, Special Scholarship, and Achievement Scholarship awards

$43.8 million for 7,403 awards

$7.7 million for 3,051 awards

Funding For Scholarships in 2010

nmsc

sponsors

National Achievement® Scholarship ProgramNearly 170,000 Black American students in more than 12,000 high schools requested consideration in the 2010 National Achievement Program when they took the 2008 psat/nmsqt and entered the National Merit®

Scholarship Program.

• 3,315 high-scoring participants were referred to United States colleges and universities for the purpose of expanding these students’ educational opportunities.

• 1,716 Semifinalists were named on a regional repre-sentation basis and had the opportunity to advance in the competition for National Achievement Scholar-ship awards by meeting additional requirements.

• 1,383 of the Semifinalists met all the requirements to progress to the Finalist level of the competition and were considered for an Achievement Scholarship® award.

• 803 Finalists became Achievement Scholar® desig-nees, winning scholarships worth over $2.4 million for college undergraduate study.

60

50

40

30

20

10

0

70

80

90

100

% taking 4 or more years in each subject area

english mathematics natural/physical science

social sciences/ history

foreign languages


60

50

40

30

20

10

0

70

80

90

100

% taking honors courses

english mathematics natural/physical science

social sciences/ history

foreign languages


6 Annual Report

National Merit® Scholarship Program

eNTrANTS1.5 MilliOn

HIGH SCOrerS50,000

COMMeNDeD STUDeNTS34,000

SeMIFINALISTS16,000

high school students enter the annual competition for recog-nition and awards by taking the preliminary sat/National Merit Scholarship Qualifying test (psat/nmsqt®), usually in the fall of their junior year. Currently, over 1.5 million students meet requirements to enter each annual National Merit program.

Some 50,000 students earn psat/nmsqt scores that qualify them for program recognition. the following spring, nmsc invites these students to des-ignate two u.S. colleges or uni-versities to receive information about them through the Col-lege plans Reporting Service. this service is offered without charge to encourage direct communication between these promising students and col-lege officials. in the fall, at the beginning of their senior year, these high scorers are notified that they have been designated as either Commended Students or Semifinalists.

About two-thirds of the high scorers are named Commended Students on the basis of a na-tionally applied qualifying score that is usually at the 96th per-centile. Students in this group receive letters of Commenda-tion in recognition of their out-standing performance on the qualifying test, but they do not continue in the competition for National Merit Scholarships.

Approximately one-third (about 16,000) of the high scorers are designated Semifinalists on a state representational basis. they are the top-scoring entrants in each state and the only program participants who have the opportunity to continue in the competition for Merit Scholarship® awards.

in addition to designating Semi-finalists in each state, nmsc also has selection units for par-ticipants attending high schools in the district of Columbia, u.S. commonwealths and territories, schools in other countries that enroll u.S. citizens, and u.S. boarding schools that enroll a sizable proportion of students from outside the state in which the school is located.

nmsc sends Semifinalists’ names to u.S. colleges and universities to broaden the students’ educa-tional opportunities, and a press release about them is sent to news media.

identifying scholastically talented youth and bringing them to the attention of colleges and universities and the Ameri-can public are enduring goals of the National Merit Schol-arship program. in the 55 competitions completed to date, over 2.6 million outstanding students have been honored, and 326,000 academic champions have received scholar-ships worth a total of $1.3 billion for undergraduate study.


Alabama 15,302 175 217Alaska 2,319 55 40Arizona 17,614 321 311Arkansas 6,434 37 148California 166,786 5,635 2,086Colorado 20,668 564 237Connecticut 29,736 1,012 227Delaware 5,950 163 45District of Columbia 4,056 221 55Florida 69,668 1,150 776Georgia 40,555 935 413Hawaii 8,733 136 70idaho 5,589 85 84illinois 47,588 1,438 688indiana 52,101 500 307iowa 8,792 181 189Kansas 9,804 233 167Kentucky 11,932 216 219louisiana 12,179 127 232Maine 13,666 142 80Maryland 49,715 1,419 330Massachusetts 49,033 2,112 393Michigan 34,910 573 547Minnesota 22,878 687 308Mississippi 5,956 25 142Missouri 13,921 448 331Montana 4,709 39 55nebraska 6,458 86 108nevada 7,335 47 85new Hampshire 8,421 403 113new Jersey 68,535 2,327 521new Mexico 5,841 65 94new York 145,516 2,890 903north Carolina 50,207 885 400north Dakota 2,119 7 41Ohio 53,200 1,009 689Oklahoma 7,760 115 192Oregon 19,138 364 197Pennsylvania 74,462 1,631 773Rhode island 5,989 112 60South Carolina 17,664 296 187South Dakota 2,825 7 45Tennessee 16,101 440 273Texas 169,739 2,900 1,303Utah 4,618 89 157Vermont 4,253 105 44Virginia 50,370 1,481 434Washington 29,407 902 323West Virginia 4,037 21 87Wisconsin 20,315 269 377Wyoming 1,578 0 25Other Selection Units 20,262 445 131TOTAl 1,526,744 35,525 16,259

2010 Program entrants

Commended Students

Semi-finalists

FINALISTS15,000

SCHOLArSOVER 9,000

to compete for National Merit Scholarships, Semifinalists must advance to the finalist level of the competition by meeting several requirements.

the requirements include fil-ing a detailed scholarship application, having an outstand-ing academic record in all of grades 9 –12, submitting sat® scores that confirm the earlier psat/nmsqt performance, and being endorsed and recom-mended by a high school offi-cial. About 90% (approximately 15,000) of the Semifinalists fulfill these requirements. they are notified in early february that they have become National Merit program finalists and are being considered for Merit Scholarship awards. high school officials are sent Certificates of Merit to present to these out-standing students.

the rigorous review process that Semifinalists undergo to advance in the competition re-sults in a talent pool of excep-tional finalists who compete for National Merit Scholarships. other high-performing program participants, who are not fi-nalists but meet criteria speci-fied by corporate and business sponsors, compete for other National Merit program awards called Special Scholarships. each year, over 9,000 scholar-ship winners are chosen on the strength of their credentials and potential for future suc-cess, without regard for gender, race, ethnic origin, or religious preference. All Scholars receive a certificate in recognition of their award. the names of Merit Scholar® awardees are released to news media.

8 Annual Report

tyPes oF scHolarsHiPs in tHe

National Merit® Scholarship Program

National Merit® $2500 ScholarshipsThe National Merit $2500 Scholarships are an inte-gral part of the National Merit Scholarship Program because all Finalists compete for these awards, and winners are named in every state and selection unit. A Selection Committee, made up of college admis-sion officers and high school counselors, convenes to select winners of these one-time awards. In the 2010 program, most of the 2,500 National Merit $2500 Scholarships were financed by nmsc with its own funds. Business organizations that provide corporate- sponsored awards also helped underwrite a portion of these scholarships with grants they provided in lieu of paying administrative fees.

College-sponsored Merit Scholarship® awardsOnly National Merit Program Finalists who notify nmsc of plans to attend a sponsoring college and are admitted to the institution are considered for the awards financed by the institution. College-sponsored scholarships, which can only be used at the college or university financing the award, are renewable annually and provide stipends ranging from $500 to $2,000 per year. In the 2010 National Merit Program, 4,782 college- sponsored awards, worth $23.6 million, were funded by 197 U.S. colleges and universities, which are listed on pages 29–34.

Working in teams, Selection Committee members evaluate the applica-tions of all finalists using a holistic review process to select the 2,500 distinguished winners of National Merit $2500 Scholarships.

Christine M. Cheng, a 2007 National Merit university of illinois at urbana-Champaign Scholarship recipient, is a senior. Christine is prepar-ing for a career as an architect. University of illinois at Urbana-champaign has sponsored Merit Scholarship awards since 2006.


Corporate-sponsored scholarshipsThese scholarships are either four-year renewable awards that provide stipends ranging from $500 to $10,000 per year or single-payment awards of $2,500 to $5,000. They consist of two types:

Merit Scholarship® awardsMost corporate-sponsored Merit Scholarship awards are offered to Finalists in the National Merit Scholarship Program who are children of the grantor organization’s employees or members. Some awards are designated for Finalists who reside in communities specified by the sponsor, and a few are provided for Finalists who are planning college majors or careers the sponsor wishes to encourage. Only Finalists in the National Merit Schol-arship Program who meet a sponsor’s criteria are con-sidered for that sponsor’s National Merit Scholarships. Special Scholarship awardsApproximately two-thirds of the corporations, company foundations, and business organizations that fund Merit Scholarship awards for Finalists in the National Merit Scholarship Program also provide funding for Special Scholarship awards. The number of Final-ists eligible for a particular sponsor’s scholarships

nmsc scholarships vary in a number of ways, including candidate criteria and monetary value. Although eligible candidates can be considered for more than one type of scholarship, they can receive only one monetary award through nmsc. the awards must be used by Scholars for undergraduate study at regionally accredited colleges and universities in the united States.

bob tafaro, president and Chief executive officer of gaF Materials corporation, presents a certificate to 2010 Special Scholarship recipient kevin t. Sunyak. Since 2002, gaf Materials Corporation has provided scholarships for the children of employees of the corporation and its subsidiaries.

varies from year to year, but many sponsor organiza-tions want to provide a fixed number of awards in each competition. These sponsors utilize nmsc’s ser-vices to supplement their Merit Scholarship awards with Special Scholarship awards for high-performing program participants who are not Finalists. Corporate scholarships are usually named for the grantor organi-zation; however, the “National Merit” designation is not included in the Special Scholarship name. To be considered for a Special Scholarship, students must meet the sponsor’s specific criteria in addition to the participation requirements of the National Merit Schol-arship Program. They also must submit an Entry Form to the sponsor organization.

This year, the 237 corporations, company foundations, and other business organizations listed on pages 29–34 committed over $19 million to finance 1,010 National Merit Scholarships and 1,359 Special Scholarships.

10 Annual Report

National Achievement® Scholarship Program

eNTrANTS

170,000

PrOGrAMreCOGNITION

4,800

OUTSTANDING PArTICIPANTS

3,100

SeMIFINALISTS

1,600

Currently, about 170,000 black American juniors in more than 12,000 high schools request consideration in the National Achievement program when they take the preliminary sat/National Merit Scholarship Qualifying test (psat/nmsqt®) and enter the National Merit® Scholarship program. black stu-dents can compete for scholar-ships and be honored in both programs, but they can receive only one monetary award through nmsc.

Approximately 4,800 entrants earn psat/nmsqt scores high enough to qualify for National Achievement program recogni-tion. their scores place them in the top 4% of program par-ticipants. these high performers are notified of their status in the fall of their senior year.

each year, over 3,100 young men and women are brought to the attention of four-year u.S. colleges and universities. these students receive certificates in recognition of the academic po-tential demonstrated by their high performance on the qualify-ing test, but they do not continue in the competition for National Achievement Scholarships.

About 1,600 of the high- scoring entrants are designated Semifinalists in regional selec-tion units.

the number named in each region is proportional to the region’s population of black Americans. Semifinalists are the highest-scoring participants in the states that make up each region and the only National Achievement program participants who have an opportunity to continue in the competition for Achievement Scholarship® awards.

nmsc sends Semifinalists’ names to u.S. colleges and universities and distributes a press release about them to news media.

the National Achievement Scholarship program was estab-lished in 1964 specifically to identify academically promis-ing black American high school students and encourage their pursuit of higher education. during the competition’s 46-year history, 203,975 entrants have been brought to the attention of u.S. colleges and universities, and 30,300 of the most outstanding participants have received National Achievement Scholarships worth $95.9 million for under-graduate study.


National Achievement® Scholarship Program

FINALISTS

1,300

SCHOLArS

800

to be considered for a National Achievement Scholarship, Semi-finalists must advance to the finalist level of the competition by meeting several requirements.

the requirements include sub-mitting a detailed scholarship application, having a consis-tently high academic record in all of grades 9–12, being en-dorsed and recommended by a high school official, and sub-mitting sat® scores that con-firm their earlier psat/nmsqt performance. by meeting these requirements, about 80% (ap-proximately 1,300) of Semifi-nalists in each annual competi-tion become finalists and earn a Certificate of Achievement.

About 800 Achievement Scholar® awardees are se-lected from the group of finalists. Committees of expe-rienced professionals carefully evaluate information submitted about each finalist and select winners on the basis of their abilities, academic and extracur-ricular accomplishments, and potential for success in rigor-ous college work. All Scholars receive a certificate in recogni-tion of their award. nmsc sends a press release to news media in Scholars’ communities.

Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, new Hampshire, new Jersey, new York, Pennsylvania, Rhode island, Vermont, and Virginia 61,372 1,271 482

illinois, indiana, Kentucky, Michigan, north Carolina, Ohio, Tennessee, West Virginia, and Wisconsin 36,525 439 407

Alabama, Arkansas, Florida, Georgia, louisiana, Mississippi, and South Carolina 32,488 547 456

Alaska, Arizona, California, Colorado, Hawaii, idaho, iowa, Kansas, Minnesota, Missouri, Montana, nebraska, nevada, new Mexico, north Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, and Wyoming 36,093 971 341

Other Selection Units 1,961 87 30

TOTAl 168,439 3,315 1,716

2010 Program entrants

Outstanding Participants

referred to Colleges Semifinalists

12 Annual Report12 Annual Report

tyPes oF scHolarsHiPs in tHe

National Achievement ® Scholarship Program

National Achievement® $2500 ScholarshipsEvery Finalist is considered for one of the 700 National Achievement $2500 Scholarships offered through the National Achievement Scholarship Program, an aca-demic competition for Black American high school stu-dents. These scholarships are awarded on a regional representation basis. Award winners are selected by an independent committee of college admission officers and high school counselors who evaluate information submitted by Finalists and their schools as part of the application process. Most of these one-time awards are financed by nmsc with its own funds, but support is also provided by grants from corporate sponsors.

Corporate-sponsored scholarshipsCorporations, foundations, business organizations, and professional associations underwrite Achievement Schol-arship® awards for Finalists in the National Achievement Scholarship Program. Most corporate sponsors specify their awards for Finalists who reside in an area served by the sponsor, for those who have career plans the grantor wishes to encourage, or for Finalists who are children of their employees. Sponsors of this year’s Achievement Scholarship awards are listed on page 35.

These scholarships provide either a single payment of $2,500 to $5,000 when the Scholar enters college or an annual stipend that can range from $500 to $10,000 per year for up to four years of undergraduate study. In 2010, 103 corporate-sponsored Achievement Schol-arship awards worth $700,000 were offered to Finalists.

Selection Committee members review finalist applications in order to choose the 700 winners of National Achievement $2500 Scholarships.

At an award reception hosted by GEicO Philanthropic Foundation, Senior vice president don R. lyons (back, left), Chief executive officer tony Nicely (back, right), and the geiCo gecko celebrate with National Achieve-ment geiCo Scholarship recipient elizabeth t. James (front, second from left) and her family. geiCo philanthropic foundation began sponsoring scholarships in the National Achievement Scholarship program this year.


A force can trigger a chain reaction. in the stories of the NMSC Scholars who are featured on the following pages, the common theme of a reciprocal effect emerges. experiences that have had a powerful impact on these Scholars’ lives were driving forces that propelled them toward goals with the hope of making an impact on the lives of others.

Scholars who graduated from high school and college this year share with us their accomplishments thus far, their plans for the future, and how they intend to make a difference through their fields of study. in addition, Scholars from the more distant past tell us about their lives since graduating from college and how they have gone on to make lasting impacts on their fields of study, their communities, and individuals worldwide.

With the support of dedicated sponsors, NMSC is very proud to be one of the many driving forces that encouraged these Scholars. our mission is to recognize and honor the academically talented high school students of the united States. NMSC believes that by gaining the support of additional sponsors, we will be a powerful influence in the lives of an ever-growing number of outstanding students who will continue the chain of impact—our nation will reap the benefits.

“an education means nothing if you are the only one reaping its benefits.” Aaron l. beswick, 2006 National Achievement Scholar

Making anIMPACT

14 Annual Report

2010 Scholars—High school ends, college begins

efforts paid offDance education at an early age taught Argentina-born Marianela D’Aprile grace and perseverance, virtues invaluable in defeating a language barrier. “I came to America speaking very little English.… My efforts have paid off and made me competitive on a national scale.” Marianela graduated from high school as valedictorian and is the recipient of a National Merit - The Goodyear Tire & Rubber Company Scholarship. Goodyear Tire & Rubber Company has been a scholarship sponsor since 1965. Deserving recognitionMarianela is one of only 15 incoming 2010 Chancellor’s Honors Program students selected for the specialized honors program, the Haslam Scholars Program, at the University of Tennessee, Knoxville (UT). Her commitment to academics, commu-nity service, and athletics has also earned her the 2010 Peyton Manning Scholarship. This scholarship, awarded annually to a first-year student participating in the hon-ors program, was established in 1998 in honor of Peyton Manning, the former UT Volunteers quarterback. “I’m certainly proud to add Marianela to what has become an elite group of deserving scholarship recipients,” said Manning.

Anchor to stabilityMarianela has selected architecture as her major. “I hope that within our changing world, architecture can serve as an anchor to stability as well as a catalyst for positive change. Architecture encourages strong human relationships not only with others but also with the world and the environment.”

At UT, Marianela will continue her dance education (classical ballet, contemporary dance, and modern dance). After graduation, she hopes to complete an internship and then work for an eco-conscious architectural firm.

Marianela d’aPrile

Catalyst for change

“i CAMe to AMeR- iCA SpeAkiNg veRy little eNgliSh.... MyEFFORtS HAvE PAid OFF ANd MAde Me CoMpetitive oN A NAtioNAl SCAle.”

presenting Marianela with the 2010 peyton Manning Scholarship are (left) university of tennessee’s director of financial Aid, Jeffrey gerkin, and peyton Manning, quarterback of the indianapolis Colts. (photo courtesy of university of tennessee.)


2010 Scholars—High school ends, college begins

Development through serviceSchneider Rancy pledged brotherhood to set him-self apart. In high school, Schneider was a member of adimu, a fraternity that promotes personal responsi-bility and intellectual development through community involvement. “My experiences, both in the community and with adimu, have taught me a sense of humbleness and have instilled in me the importance of always giving back. And also, they’ve helped me to reach a place in my life in which I feel I truly belong and am accepted.”

Capable of anythingAs the winner of a National Achievement $2500 Scholarship, Schneider proved that he is capable of future academic excellence. “To me, winning this scholarship means nearly everything.... It proves to me that I am capable of doing anything, so long as I set my mind to it.”

At Columbia University, Schneider will have an opportunity to develop his craft. He intends to double major in biology and creative writing, or major in biology and minor in English. “Medicine has always been vastly important to humanity: it has kept us alive, helped us live longer, allowed us to become stronger. And litera-ture has furthered the development of our minds, made them sharper, and sometimes wittier.”

“Scribbles” of hopeSchneider was the recipient of the Broward County 2009 Poet Laureate award. “I won other writing awards, yes, but this was the first that felt significant, the first that seemed to proclaim that my words weren’t just the inane scribbles of some teenager. It gave me hope.”

After college, Schneider intends to go to medical school. He also hopes to publish a fantasy trilogy and several volumes of poetry.

scHneider rancy

A passion for medicine and writing

“to Me, WiNNiNg thiS SCholARShip MeANS NeARly eveRythiNg.... it pRoveS to Me thAt i AM cAPAblE OF dOiNG ANytHiNG, So loNg AS i Set My MiNd to it.”

16

Pride and gratitudeMinh-Tam Q. Trinh is the 2010 recipient of the National Merit John M. Stalnaker Memorial Scholarship, a 4-year award underwritten by nmsc as a tribute to its found-ing President and Chief Executive Officer. Minh-Tam was selected from the 2010 pool of National Merit Fi-nalists who are planning to pursue majors and careers in science or mathematics. “Receiving the 2010 John M. Stalnaker Memorial Scholarship gives me a strong sense of two things: pride in my successes, and gratitude for being selected the recipient.” Minh-Tam’s interest in pure math can be traced to the support of high school teachers who consistently encouraged the exploration of mathematics and his participation in the Program in Mathematics for Young Scientists (promys) at Boston University, a six-week, intensive summer program.

Valuing selflessnessBeyond his interest in mathematics, Minh-Tam is pas-sionate about community service. Volunteering has taught Minh-Tam to “value work for which one receives no reward, for this is the meaning of selflessness.” He has helped with the Hunger Task Force food drive and other volunteer opportunities provided by the National Honor Society. Throughout high school, Minh-Tam also showcased his talents as an accomplished pianist, com-poser, and conductor by giving free solo piano recitals at the Wisconsin Conservatory of Music, and performing free concerts for the MacDowell Club of Milwaukee. “I want to increase interest in classical music, and in par-ticular, the appreciation of 20th- and 21st-century mu-sic…. My friends have told me that they find my music playing inspiring, and I hope that this is so.”

Future mathematicianWith plans to graduate from Princeton University with an anticipated degree in mathematics, Minh-Tam hopes to attend graduate school. He aspires to become an ac-tive mathematician, dividing time between educating and conducting research. “Math, like philosophy and funda-mental physics, seeks to obtain absolute truths about the world we live in…. It fulfills a very necessary part of human endeavor: the need to conjecture, solve, and discover.... If I become an educator, I would like to have my teaching inspire in others a love of the sciences and the dedication to pursue mathematics or science professionally.”

MinH-taM Q. trinH

Composer for the community

“ReCeiviNg the 2010 JohN M. StAlNAkeR MeMoRiAl SCholARShip giveS Me A StRoNg SeNSe of tWo thiNgS: PRidE iN My SuCCeSSeS, ANd GRAtitUdE foR beiNg SeleCted the ReCipieNt.”

2010 Scholars


JeMale d. lockett

Engineering innovation Desire to learn“I’ve always been drawn to electronic devices. My physics class reaffirmed my desire to learn about them.” During high school, Jemale D. Lockett and a fellow classmate competed in the Intel International Science and Engineering Fair. Their project, “Model-Driven Configuration of Automated Parking Facilities,” simulated a self-parking system for cars using lego® mindstorms®. Jemale also participated in the Upward Bound Math and Science Program at Western Carolina University, where his student group conducted research on the nutrition habits of indigenous wildlife.

Dual recognitions Jemale competed in both the National Merit Scholarship Program and the National Achievement Scholarship Program. He was named a National Merit $2500 Scholar-ship winner and was also recognized as an Honorary National Achievement Scholar. “I am honored to receive a National Merit Scholarship as I know there are many qualified students who could have received it.”

Unlimited career potentialThis past fall, Jemale began his college studies at Massachusetts Institute of Tech-nology. He is currently majoring in electrical engineering and computer science, and he feels “there’s no place computer science can’t be applied.” Jemale believes that his fields of study will be the driving forces for the future and “will create solutions to some of the world’s toughest problems.”

A mother’s influenceZelalem N. Adefris received a 2010 National Achievement $2500 Scholarship. She currently attends Brown University, majoring in community health. “Growing up in a household where my mother is a doctor, being interested in social studies, and com-pleting an internship at the University of Minnesota Boynton Health Service have influenced my decision to pursue studies in community health.” Dr. Wanda Patton Adefris, Zelalem’s mother, also attended Brown University as an undergraduate.

Philanthropic partnershipThrough local fundraisers, Zelalem has drawn attention to Uganda’s war-torn condi-tions and deteriorating education system. “I feel like I have made an effect on my community by introducing a long-term international aid project [Invisible Children] to my school.” Zelalem established the Invisible Children Schools for Schools pro-gram at her high school.

Career goalsZelalem sees public healthcare as a solution to global health problems. “Public health works to improve the welfare of communities by providing a large number of people more adequate healthcare.… I hope to make more of an impact on local and interna-tional communities.” She plans to be a World Health Organization advocate.

ZelaleM n. adeFris

Promising humanitarian

18 2010 Scholars18

High school distinctionsAlthough Amanda N. Drapac-Novotny graduated high school as valedictorian and senior class president, she most cherishes the prestigious awards she received from her teachers and peers. Amanda was selected by her teachers for the Phi Beta Kappa Award, and the senior class selected her for the Outstanding Student Award, which is given to the graduating senior who has the most spirit and exemplifies the ideals of the school.

Service to othersThroughout her four years of high school, Amanda learned how to “truly serve others” by volunteering more than one thousand service hours. Her favorite service activity was an annual relief mission to Paints-ville, Kentucky, where she worked with teams of students and adults to improve the living, working, and educa-tional conditions of the Appalachian residents. She also participated in a three-day internship at the Cleveland Clinic, shadowing the head of Pediatric Hematology and Oncology, and volunteered at St. Jude Children’s Research Hospital in Memphis. During her time at the hospital, Amanda met Carson, a stage IV neuro- blastoma patient. “As I learned more about Carson, I was told about his miraculous journey and welcomed into his family. At this point, I realized that I wanted to become a pediatric oncologist, for I wanted to give back to the community that had inspired my dreams.”

Contribute towards a cureAmanda is the recipient of an Electrolux North Amer-ica Scholarship, which has made it possible for her to attend her dream school, Saint Louis University. She will major in cytotechnology, studying and researching cell irregularities and development. Her ultimate career goal is to return to St. Jude Children’s Research Hospi-tal as a pediatric oncologist. While reflecting upon the nature of being an oncologist, Amanda came to the conclusion that “my ultimate purpose in the workforce will be to put myself out of a job.” This career will allow Amanda to make a difference in the world of cancer research and contribute towards a cure for cancer.

aManda n. draPac-novotny

An education in oncology

“My UltiMAtE PUR-POSE iN the WoRk-foRCe Will be to put MySelf out of A Job.”

19National Merit Scholarship Corporation 19National Merit Scholarship Corporation

Allure of leadershipAs first-chair cellist in his high school orchestra, Zachary M. Wayson mastered the role of section leader. “I have found over the years that I enjoy leading. Though at times intimidating, the job possessed allure because of its leading role.” Zachary and the orchestra traveled to Beijing to perform in the 2008 pre-Olympic festivities. “We did a dual performance with a traditional Chinese orchestra. Afterwards, we played their traditional instruments and met the per-formers. Though our languages differed, this musi-cal exchange elicited laughs, gestures, and even a few well-played notes.”

Impact lives of othersZachary’s extracurricular activities in high school included Varsity Men’s Tennis, table tennis, and vol-unteer work at a senior retirement center. He was honored as the 2010 Pepsi-Cola Student-Athlete of the Year from Bloomingdale High School for his varsity ranking, academic accomplishments, and community service within Hillsborough County. “I have learned

ZacHary M. Wayson

Cellist with business dreams

that I can impact the lives of others even without a cor-poration and funds to back me up. I may not have the means to produce a global impact, but I can make an impact on the local level.”

Conspicuous exampleAt the University of Florida, Zachary plans to double major in business finance and industrial systems engi-neering. He wants to learn business principles that can facilitate international relief efforts. “I hope to be a conspicuous example of how a large business should be run. Money can be used to reduce global poverty, estab-lish education centers for third-world countries, support missionaries at home and abroad, and many other pur-poses. In short, I desire my career to have a large impact on the future.” Zachary is the recipient of a National Merit AstraZeneca Pharmaceuticals Scholarship. AstraZeneca Pharmaceuticals LP has sponsored 107 scholarships for the children of employees since 2001.

20 Annual Report

Dedicated to education “Every part of my education has guided me toward social work and public interest work. I only listened.” Aaron L. Beswick attended Northwestern Univer-sity, graduating with a degree in human services. He received a National Achievement $2500 Scholarship, underwritten by General Mills Foundation. General Mills Foundation has sponsored nmsc scholarships for more than 40 years. “To be recognized as a student with this scholarship acknowledges all the hard work and the sacrifices that my family (and families like mine) made for me to dedicate myself to education.”

Social awareness During his undergraduate years, Aaron worked in Chi-cago for the Heartland Alliance for Human Needs & Human Rights. His experience in the Refugee Health Education and Promotion Program changed the way he now approaches social issues. “I went in thinking I knew what the issues facing those youth could be ... adjusting to the American high school experience, dis-connections with parents and ‘traditional culture.’ I knew nothing. It was not until I actually started to listen to what they had to say about who they were and what their experiences had been that the work truly began.”

Neighborhood reformerAaron is completing a post-undergraduate public in-terest fellowship through Northwestern University. “I am working for a mixed-

income development in the city of Chicago…. I am gaining a lot of experience about the city, housing, lower-income social work interventions, and the ways in which public policy and city institutions interact with people and places.”

After the fellowship, Aaron plans to obtain master’s degrees in social work and public health. “I hope to help others learn to navigate our social institutions and to change those institutions themselves to allow more people privilege and access.” He will eventually settle in his hometown, Minneapolis, Minnesota, and apply his education to the neighborhoods.

aaron l. BesWick

An interest in the public

82% of SCholARS gRAduAtiNg fRoM College iN 2010 RepoRted A gpA of A- oR Above.

2006 Scholars—College ends, lifelong learning continues


Paige e. tryggestad

Nursing those in needrewarded with opportunityIn 2006, Paige E. Tryggestad received a National Merit $2500 Scholarship. “I was truly blessed to receive this scholarship, and it has made a huge impact on my life—past, present, and future.” While at the University of Tulsa, Paige studied Spanish and traveled to the Dominican Republic for a Spanish immersion public-health program. “I gained an understanding and appreciation for the country, the language, and its people ... and a passion for serving the healthcare systems in underdeveloped regions where help is desperately needed.” She was inducted into Phi Beta Kappa, Mortar Board, and Order of Omega, and she graduated magna cum laude in 2010.

restoring compassion through nursingPaige has since gravitated to the field of nursing; she is currently enrolled at Okla-homa City University where she plans to obtain a BSN degree. She credits her study-abroad experience, working at a pediatrician’s office, and fundraising for a research hospital as career-path triggers. After she receives her second bachelor’s degree, Paige will take the nclex certification test to become a registered nurse. Eventually, Paige would like to complete a master’s degree and be involved with Doctors Without Borders. “I hope to impact the medical field itself by restoring some amount of com-passion and trust that has been lost.” She plans to restore compassion one patient at a time and through international medical relief missions.

Passionate combinationFor nine years, while regularly visiting her grandmother in a nursing facility, Andrea P. Fowler cultivated an interest in gerontology. Andrea attributes her undergraduate major selection, communication disorders sciences, and her ultimate career choice to her love of music and her relationship with her grandmother. “I wanted to do some-thing I was extremely passionate about and something to help people. In my class one day, a guest audiologist showed me that something…. The combination of my music appreciation and heart for the elderly has led me to choose audiology.” She received the National Merit Jerry R. Junkins Memorial Scholarship sponsored by Texas Instru-ments Incorporated in 2006, and she attended the University of Oklahoma.

As an undergraduate, Andrea was a mentor for Big Brothers Big Sisters of Oklahoma and was inducted into Phi Kappa Phi, Alpha Lambda Delta, and the National Society of Collegiate Scholars. Over breaks, she shadowed an audiologist and assisted in educational programs for patients. “Many times, I found that it was the people I was helping that had the larger impact on me.”

Ambitious plansAndrea graduated summa cum laude and currently attends Vanderbilt University in pursuit of a doctor of audiology degree. “I would like to help educate the families of older people who are struggling with a hearing loss.” She plans to treat patients internationally and eventually open a private practice.

andrea P. FoWler

Caring about communication

2006 Scholars—College ends, lifelong learning continues

22 2006 Scholars

Pursuits rewardedBefore beginning his undergraduate career as a student-athlete at Washington University in St. Louis, Zachary A. Greenberg recognized the significance of his accomplishments. “To me, being a National Merit Scholarship recipient represented an investment in my academic future. The national recognition not only rewarded my pursuits in high school, but also allowed me to expand my horizons as I entered college. I was able to open doors that led to an invaluable undergrad-uate experience.” Zachary received the National Merit Washington University in St. Louis Scholarship for four years of study.

Balanced life and big winsFor balancing academics and leading the Varsity Men’s Basketball team to victory in two ncaa Divi-sion III National Championships, Zachary earned the coveted W. Alfred Hayes Award for the Class of 2010. He also had an opportunity to complete sev-eral internships; he interned for the U.S. Attorney’s Office–District of Arizona, the Arizona Attorney Gen-eral’s Office, and Burson-Marsteller, a leading global public relations agency in New York City. “My fellow nyc interns and I created a comprehensive marketingplan.… Our team ended up winning the competition, but the real learning came from the process and honing our presentation skills that will undoubtedly prove useful in my future.”

return on investmentZachary was initiated into Mortar Board, and he gradu-ated cum laude in May 2010 with a bachelor’s degree in psychology. He has recently returned to his alma mater where he is currently enrolled as a law student. He attributes his undergraduate success to opportu-nities received through National Merit Scholarship Corporation. “To potential scholarship sponsors, I simply say that your efforts aid in allowing thousands of students to attend some of the most selective colleges and universities in the world. Your investment is sure to see huge returns as these students graduate and con-tinue to impact the world around them.”

Zachary hopes to dive into real-world issues as an advocate for corporate clientele.

ZacHary a. greenBerg

Leader on and off the court

90% of SCholARS gRAduAted fRoM College With SoMe foRM of hoNoRS (SuMMA, MAgNA, oR CuM lAude). 39% gRAduAted SuMMA CuM lAude (With higheSt hoNoRS).

23National Merit Scholarship Corporation 23

Determination at every levelA National Achievement $2500 Scholarship helped Melani R. French meet her goals with certainty. Melani attended Hampton University (HU) and was presented with the HU President’s Cup Award, the highest award given to a senior. She graduated as the salutatorian and was awarded a baccalaureate degree in biological sciences with the highest distinction, summa cum laude. “Once I set a goal, I do everything I can to achieve it. When I was a child, I decided that I wanted to be a veterinarian. Therefore, I made sure to maintain an exemplary grade point average through every level of schooling.”

Summer internshipsDuring the summer prior to graduation, Melani conducted a research project on the effect of mater-nal immune stimulation on mice with congenital toxo-plasmosis at the Virginia-Maryland Regional College of Veterinary Medicine at Virginia Polytechnic Institute and State University. “Before this experience, it never occurred to me that a veterinarian could opt to be a researcher, impacting the entire career field without setting foot in a clinic. By spending time in the Veterinary Teaching Hospital, I was able to interact with 4th-year veterinary students and their professors as they helped clients. Being so fully immersed in various aspects of the veterinary profession solidified my desire to pursue my DVM degree.” Melani also completed an internship at the National Aquarium in Baltimore in the conservation department, working for the Marine Animal Rescue Program.

Pursuing dreamsMelani is now a first-year medical student at the Virginia-Maryland Regional College of Veterinary Medicine. “I have chosen to pursue my dreams of becoming a veteri-narian because I would like to help both animals and their owners.... The field of medicine is constantly changing.... I hope that something I do or say may one day impact the entire veterinary field.”

Melani r. FrencH

Immersed in veterinary pursuits

78% of SCholARS CoMpleted At leASt oNe iNteRNShip, ANd 53% CoMpleted A Study-AbRoAd pRogRAM.

24 Annual Report

kirsten M. (nutt) alexander

Boston consultant speaks “geek”

rigorous studiesIn 1986, Kirsten M. Alexander received the National Merit New York University Scholarship; this award allowed her to pursue her passion for art history and creative writing. “My National Merit Scholarship made it possible to attend one of the most rigorous art history programs in the country, and to live in New York City.” Kirsten was able to participate in the American Univer- sity in Paris study-abroad program because of the reduced financial strain. She toured the cathedrals of France and art museums in Amsterdam, Madrid, and Venice.

New horizons on the WebThe arrival of the nineties opened new horizons. Kirsten attended American University in Washing-ton, D.C., where she received a master of fine arts in creative writing and “delved into what makes the English language hum.” As time progressed, the writ-ten word evolved into the digital word, and Kirsten immersed herself in this new technology. “There weren’t a lot of women in the Web world early on, and I actively and successfully worked to get women into the field, both as users and professionals. I helped found the local chapter of Webgrrls in Boston and an ongoing free women’s night at a local non-profit to train low- income women in how to use the Internet. Both had a big

impact on getting women into what was then a heavily male industry…. It helped to dispel the myth that the Internet was only for geeky guys or that women couldn’t ‘speak geek.’”

Accomplishments and legacyEarly in her professional career, Kirsten taught college technology courses and worked as a columnist for Web Review and a news editor for W3C Journal. As the founding editor of the Match.com online magazine, she was among revolutionaries who helped steer and shape the World Wide Web in its earliest days. By the

late nineties, Kirsten was working in Boston as a consul-tant for high-tech start-ups. Now, well into her profes-sional career, Kirsten works in the non-profit world as the first Marketing & Communications Officer for the Boston Athanaeum and the Senior Membership Man-ager at Historic New England.

When Kirsten is not busy educating and inspiring, she commits her time to volunteering for the Junior League of Boston. She also participates in the neighborhood association of her diverse Boston community, where she raises her young daughter. “I am so delighted to have a daughter who loves to learn and who is a voracious reader at the age of seven. She is my real legacy.”

Past years’ Scholars—Making an impact


Confident switchAn attraction to domestic affairs influenced Jarol Bruce Manheim’s choice of undergraduate studies. “I went off to college in 1964 ready to study accounting, my father’s idea of a great major…. Along the way, I switched to political science, my idea of a great major.” Jarol received the National Distillers Merit Scholarship from Millennium Petrochemicals Inc. in 1964. “Receiv-ing that scholarship was liter-ally a life-changing event….Even though I worked hard and did well in school, pay-ing for college was going to be a challenge.”

Humble pioneerAfter obtaining a master’s degree and PhD in political science from Northwestern University, Jarol taught at the City College of New York (ccny) from 1971–1975. At ccny, he designed one of the earliest courses in media and politics. Then he accepted a position at Virginia Polytechnic Institute and State University, where he initiated a hands-on course in political cam-paign techniques.

For nearly 25 years, Jarol has taught strategic politi-cal communication at George Washington University (GW) in Washington, D.C. As the founding director of GW’s School of Media and Public Affairs, he developed the world’s first degree-granting program in political

Jarol Bruce ManHeiM

Educator on Capitol Hillcommunication. “A lot of my former students have become influential in politics and the media-—cam-paign managers, political web gurus, corporate public affairs executives, network correspondents, leadership press officers on the Hill, government policymakers, and the like. I claim very little credit for that. They were sharp as tacks when they got here. But it sure has been fun to watch.”

Noted authorJarol led a joint effort to cre-ate the flagship journal Politi-cal Communication. He has also written scholarly articles and influential books on politics, public diplomacy, and communication strategies. His book Empirical Political Analysis was the first research methods political-science text to be

translated into Arabic. Strategy in Information and Influence Campaigns is Jarol’s most recent book; early reviewers suggest it will have a lasting impact on the field of political communication.

To current students, Jarol has these inspiring words: “Hard work and accomplishment are their own rewards, but they are also gateways to futures as yet unimagined. A National Merit Scholarship is both a recognition of what you have achieved to date and a bridge to what you might yet become.” To potential sponsors he says: “Change a life, fulfill a dream, build the future.”

“ReCeiviNg thAt ScHOlARSHiP WAS liteRAlly A liFE-cHANGiNG eveNt.... eveN though i WoRked hARd ANd did Well iN SChool, pAyiNg foR College WAS goiNg to be A ChAlleNge.”

26 Past years’ Scholars

Personal questsStephen Bemis’s early life can be categorized as an exploratory chapter. After receiving a National Merit Scholarship in 1965, Stephen attended Yale Univer-sity majoring in sociology and minoring in economics. After graduating from Yale, he worked for a short time at a garbage company before pursuing a career in law. He graduated with a JD from Chicago-Kent College of Law at Illinois Institute of Technology in 1975. He began his law career as a pension/benefit lawyer in Chicago.

Stephen later relocated his family to Ann Arbor, Michi-gan, where he practiced corporate law for 30 years. He retired from the Masco Corporation in 2009. “I am blessed in marriage, since my spouse Judy shares my proclivities to constantly learn and keep engaged in new community, family, and personal quests.” At Masco, Ste-phen headed all pro-bono projects and broadened his own practice to include environmental law and prod-ucts liability. “In later years, I would be the go-to person for both environmental and pension/benefit matters.” Stephen is rated AV-preeminent (5.0 out of 5.0) in the Martindale-Hubbell Peer Review lawyer rating system.

Giving backAfter 55 years, Stephen still appreciates the significance of his early academic recognition. “Even though I rare-ly mention it, even today, having won a National Merit Scholarship unfailingly makes an impact…. There is simply nothing wrong about shining a spotlight and helping kids make the most of their God-given talents.”

Receiving the award highlighted Stephen’s accomplishments and talents. The senti-ment of being a National Merit Scholar and the achievements it recognizes did not dissolve after graduation. Beyond his undergraduate years, Stephen returns the favor by finding new talents. “Since college graduation, I have attempted to give back to Yale by interviewing high school seniors who apply to Yale (and, for more than ten years, chairing all Southeast Michigan interviewers) in gratitude for the efforts of a Yale alumnus who recruited me.”

As Stephen approached retirement, his interests shifted to local food initiatives and advocacy for small farms. “Even as I helped organize local farmland preservation through local purchase of development rights millages, I have become convinced in recent years, that the highly processed food which has become ‘normal’ during my lifetime is in fact a major factor in largely coincident increases in many chronic diseases.” He currently serves on the boards of the Farm-to-Consumer Legal Defense Fund and the Farm-to-Consumer Foundation as an advocate for unprocessed foods, raw (unpasteurized) milk, and sustainable farming.

stePHen BeMis

Proclivity to learn

“AN NMSC SCholARShip, loCAlized to A SpoNSoR’S WoRkfoRCe ANd/oR CoM-MuNity, iS AN elegANtly effiCieNt WAy to SloW doWN youR MoNey ANd give it tRACtioN With deMoNStRAble loNg-teRM beNefit to the SpoNSoR’S ReputAtioN iN the CoMMuNity, obviouSly to the WiNNiNg SCholARS, ANd ultiMAtely to the bEttER-MENt OF SOciEty.”


susan s. g. WierMan

Urban planner and educatorGrateful for supportIn 1968, Susan S. G. Wier-man received the National Merit Sears Foundation Scholarship for four years of study. “My father was a credit manager at the Sears store…. Sears Foun-dation provided support for employees’ children, and I am very grateful for that support.” Susan believes the award helped her transition into college academia. “It was helpful both financially and in giv-ing me the self-confidence to make the big step from a small high school to undergraduate studies at the Uni-versity of Washington (UW).”

Clean air patrollerA Phi Beta Kappa, Susan graduated cum laude with a degree in urban planning and also attended UW for a master’s program. As a graduate student, she completed a fellowship with the U.S. Department of Housing and Urban Development, and her research was published by united Nations Educational, Scientific and Cultural Organization. Since 1977, concurrently with the pas-sage of amendments to the Clean Air Act, her work has focused on air pollution control. She is now the Executive Director of the Mid-Atlantic Regional Air Management Association and organizes technical train-ing programs for civil servants. “My most satisfying career accomplishment has been to build the Mid-Atlantic Regional Air Management Association from a small, two-person operation into a much larger organ-ization that provides valuable educational and techni-cal services to the state and local air quality agencies in our region.” She has also been recognized as a Fellow Member of the Air & Waste Management Association. “It’s good to be a part of that effort to help protect public health.”

Susan and her husband are also the proud parents of a son who is an Assistant Professor at the California Institute of Technology.

Jon P. HauxWell

Physician serves underservedThe gift of educationJon P. Hauxwell entered a new world as an un-dergraduate. “I came from a family that wasn’t wealthy, so my National Merit Scholarship really enabled my obtaining an education.” Jon received a National Merit Schol-arship for four years of undergraduate study and attended the University of Kansas. He is a member of Phi Beta Kappa and graduated summa cum laude in 1970 with a bachelor’s degree in Russian and Soviet-Slavic studies.

Making a differenceJon also attended the University of Kansas for medical school and his residency. Afterward, he moved with his family to the Northern Cheyenne Reservation in Mon-tana to work for the Indian Health Service (ihs) as the clinical director, advisor, and resident instructor. “I wanted to practice where I could make a difference.... I was able to bring informed, compassionate medical care to a population which had long been underserved and underfunded. I built bridges between our (mostly Anglo) providers and the community.... We became acculturated and raised our kids bi-culturally.” Jon also served as Vice Chairman of the inaugural Montana Gov-ernor’s Advisory Committee on Tobacco Use Preven-tion and helped develop an intervention program for ihs facilities.

In retirement, Jon remains active in tobacco control efforts. He serves as Immediate Past President of the Tobacco Free Kansas Coalition, and he also writes a weekly column for The Hays Daily News. In 2001, he and his wife returned to Kansas to care for Jon’s aging parents, but they manage frequent trips to Mon-tana. “The Cheyennes are our family, and the Rez is still our home.”

28 Annual Report

The National Merit Scholarship Program strives to provide scholarships for as many students as possible. The 434 independent sponsor organizations are mak-ing an impact on the lives of over half of the Finalists and a substantial number of other deserving program participants in each annual competition by providing scholarships for their undergraduate education. Cor-porate, foundation, and other business organizations have provided scholarships in all 55 Merit Scholarship® competitions completed to date. Colleges and universi-ties began underwriting awards in 1963. In 2010, spon-sor organizations financed 74% of the scholarships awarded. All funds provided by sponsors are used for scholarships and are 100% tax-deductible.

Corporate sponsorshipThe 237 corporate organizations that sponsored awards in the 2010 competition represent the broad spec-trum of U.S. business, including many Fortune 500 companies. They share the belief that supporting the educational development of intellectually talented youth is a wise investment in the future, and they value the relationships that develop with their award recipi-ents. Commonly regarded as the highest honor a U.S. high school student can earn, the Merit Scholar® title is a distinction with which corporate sponsors are proud to be associated.

Through a formal agreement with nmsc, corporate and foundation sponsors tailor their programs to fit their objectives by specifying candidate qualifications that match their particular interests. The number of schol-arships a company or foundation offers annually ranges from one to more than 100. These sponsors also select the monetary limits of scholarships they finance.

All aspects of program management, from identifi-cation of candidates to distribution of scholarship payments to winners, are handled by nmsc without charge. Services include providing sample materials for publicizing a sponsor’s program, Web-based en-try for award candidates, distribution and collection

of applications, selection and notification of award winners, public announcement of National Merit Scholarship recipients, and certificates for presenta-tion to winners. nmsc also monitors the Scholars’ progress during their undergraduate years and sends their sponsors periodic status reports.

College and university sponsorshipThe 197 higher education institutions that provided Merit Scholarship awards in 2010 range from small private colleges to flagship state universities, and they all share the ability to attract National Merit Program Finalists to their campuses. For college sponsors, nmsc provides lists of Finalists who have named their respec-tive institutions as first choice, from which college officials choose winners of their awards. nmsc sends scholarship offers to winners, issues press releases, provides certificates for presentation to Scholars, and administers the awards during the recipients’ under-graduate years, all without charge.

National Merit® Program scholarship sponsors

putnam investments president and Chief executive officer Robert l. Reynolds presents certificates to 2010 Special Scholarship winner Marissa l. Snelling (left) and Merit Scholarship winner Aseem Mehta. Putnam llc sponsors awards in the National Merit program for the children of employees of putnam investments and its subsidiaries.


Abilene Christian University 8

Accenture llp 6 Administaff Services, l.p. 2 2

adp Foundation 8 30

Air Products and Chemicals, inc. 2

Akzo nobel inc. 2 4

Albany international 2

Albion College 2

The Alcon Foundation, inc. 2

The Allergan Foundation 1 5

Alma College 6

Ameren Corporation Charitable Trust 1 3

American City Business Journals, inc. 2

American Electric Power Company, inc. 5

American Financial Group 2 American University 10

AmerisourceBergen Corporation 8

The ametek Foundation 1 4

Anadarko Petroleum Corporation 3 1

Anheuser-Busch Companies, inc. 1

Aon Foundation 4 4

Arch Chemicals, inc. 3

Archer Daniels Midland Company 1 9

Arizona State University 78

Armstrong Foundation 18

ascPartners, llc 2asm Materials Education Foundation 1

Astellas usllc 2

AstraZeneca Pharmaceuticals lp 10 Auburn University 113

Austin College 2

Ball State University 3

basf Corporation 5 7

Battelle 19

Bayer usa Foundation 5

Baylor University 50

Bethel University (Minnesota) 2

Trust Under The Will of Mary E. Beyerle 7

Birmingham-Southern College 6

The Black & Decker Corporation 10

Black & Veatch Corporation 2

bmc Software, inc. 1 5

bnsf Foundation 2

The Boeing Company 59

Boise State University 9

BorgWarner inc. 1 5

Boston College 7

Boston University 29

Bowdoin College 45

bp Foundation, inc. 21 28

Bradley University 7 Branch Banking & Trust Company 1 9

Brandeis University 10

Bridgestone Americas Trust Fund 1 49

Brigham Young University 50

Bristol-Myers Squibb Foundation, inc. 15 35

Broadridge Financial Solutions, inc. 1 3

Bucknell University 4

Bunge north America, inc. 2

Bunzl usa, inc. 5

Butler University 6

caci international inc 5

Calvin College 18

Cargill, incorporated 6 4

Carleton College 40

Carlisle Companies incorporated 2

Carpenter Technology Corporation 5

Case Western Reserve University 29

Centocor Ortho Biotech inc. 3

Centre College 3

Chevron usa, inc. 9

Claremont McKenna College 15

Clemson University 28

cna Foundation 3 15

cna Surety 2

Colby College (Maine) 6

Colgate-Palmolive Company 2 8

Collective Brands, inc. 5

College of Charleston 4

College of Wooster 4

Colorado College 10

Colorado State University 3

Computer Sciences Corporation 16

ConAgra Foods Foundation 2

Concordia College (Minnesota) 1

consol Energy inc. 1 13

Continental Grain Foundation 2

Corning incorporated 4 1

Corporate sponsor grants 136 country Financial 1 4 Covidien 20

Creighton University 3Cytec industries inc. 3 1

Davidson College 3

Denison University 13

DePauw University 4

Dickinson College (Pennsylvania) 4

Dole Food Company, inc. 1

R. R. Donnelley Foundation 2 14

The Dow Chemical Company Foundation 15

Sponsor Merit Special Sponsor Merit Special

Sponsors and the scholarships they supported in the 2010 National Merit® Scholarship Program

30 Annual Report

Dow Jones Foundation 4 6

Drake University 5

Dresser, inc. 1 1

e*tradeFinancial 2

Eastman Chemical Company Foundation, inc. 2

Eaton Charitable Fund 7 8

El Paso Corporate Foundation 2 8

Electrolux north America 1

Emory University 55

Estee lauder Companies, inc. 2 1

ethicon, inc. 2 FedEx Freight Corporation 20

FedEx Ground Package System, inc. 1 7

Ferro Foundation 2

Fifth Third Foundation 1 16

fil Holdings Corporation inc. 1

First Hawaiian Bank 2

Florida State University 20

fmc Corporation 3 fmc Technologies, inc. 2

Fordham University 32

Formosa Plastics Corporation, u.s.a. 5

Franklin and Marshall College 4

Freeport-McMoRan Copper & Gold Foundation 5

Furman University 18

gaf Materials Corporation 2

Gannett Foundation, inc. 12

geico Philanthropic Foundation 2

GenCorp Foundation, incorporated 5

General Dynamics 28

General Dynamics, Ordnance and Tactical Systems 2

General Mills Foundation 3

George Washington University 16

Georgia institute of Technology 88

Georgia-Pacific Foundation, inc. 3 47

Gerdau Ameristeel Corporation 10

gkn Foundation 1 4

GlaxoSmithKline 12 Gleason Foundation 3

Global Tungsten & Powders Corp. 1

Gonzaga University 2

Goodrich Foundation, inc. 5

The Goodyear Tire & Rubber Company 1

Gordon College (Massachusetts) 3

Goshen College 1

W.W. Grainger, inc. 3 7

Greyhound lines, inc. 5

Grinnell College 28

Gustavus Adolphus College 3

Hampshire College 2

Harding University 15

Harris Corporation 2

Harsco Corporation Fund 3

Harvey Mudd College 44

H. J. Heinz Company Foundation 6

Hendrix College 15

Henkel of America, inc. 1 4

Hillsdale College 15

Hoffmann-la Roche inc. 3 5

Honeywell international, inc. 25

Hope College 7

Hormel Foods Charitable Trust 1 17

Houghton Mifflin Harcourt Publishing Company 2

The Harvey Hubbell Foundation 4

The ikon Office Solutions Foundation 1 9

illinois Tool Works Foundation 8 22

illinois Wesleyan University 6

indiana University Bloomington 51

ingersoll-Rand Charitable Foundation 9 8

intermec Foundation 3 7

international Specialty Products inc. 2

international Union of Bricklayers 1 2

and Allied Craftworkersinvensys Controls 1

iowa State University 34

ithaca College 8

Jacobs Engineering Foundation 5

Janssen Supply Chain 4

John Bean Technologies Corporation 1 1

Johnson & Johnson Consumer Companies, inc. 3 3

Johnson & Johnson Pharmaceutical 3

Research & Development, l.l.c.Johnson & Johnson World Headquarters 2

Kalamazoo College 3

Kaman Corporation 3

Kansas State University 9

The Kennametal Foundation 1 4

Kenyon College 24

Knovel 2

Knox College 4

lanxess Corporation 2

lawrence University (Wisconsin) 12

lehigh University 8


(National Merit Program scholarship sponsors, continued)

“Change a life, fulfill a dream, build the future.”

Jarol bruce Manheim1964 Scholar


lennox international inc. 1 10

lewis & Clark College 8

liberty Mutual Scholarship Foundation 7 9

liberty University 9

lockheed Martin Corporation Foundation 45 55

loews Foundation 2 2

lord & Taylor Foundation 2

lorillard Tobacco Company 1 7

louisiana State University 31

louisiana Tech University 3

loyola University Chicago 16

The lubrizol Foundation 3

luther College 3

luxottica Retail 8

Macalester College 27

Macy’s Foundation 7 41

Marquette University 11

Marsh & Mclennan Companies, inc. 8 12

McDermott incorporated 5

McDonald’s Corporation 5

The McGraw-Hill Companies, inc. 4 16

McKesson Foundation inc. 5 15

Mead Witter Foundation, inc. 10

Glenn and Ruth Mengle Foundation 1

Messiah College 4

Metlife Foundation 8

Miami University 23

Michigan State University 30

Michigan Technological University 7

Mississippi State University 19

Missouri University of Science and Technology 8

The mitre Corporation 2

The Modine Manufacturing Company 2

Foundation, inc.Montana State University-Bozeman 7

The Moody’s Foundation 2 Motorola Foundation 19

national Distillers Distributors Foundation 9

national Merit Scholarship Corporation 2,365

nationwide Foundation 6 4

new College of Florida 14

new Jersey Manufacturers insurance Group 2

new York life Foundation 5

new York University 83

newMarket Corporation 2

nextEra Energy Foundation, inc. 3

niSource Charitable Foundation 3 12

norfolk Southern Foundation 2 8

north Dakota State University 6

northeastern University (Massachusetts) 58

northrop Grumman Corporation 43 7

northwestern University 166

novartis Corporation 20

novo nordisk inc. 2 nstar Foundation 2

Oberlin College 50

Occidental College 3

Occidental Petroleum Corporation 2

O’Donnell Foundation 2

Ohio State University 76

Ohio University 3

Oklahoma City University 4

Oklahoma State University 25

Old national Bank Foundation 1 2

Franklin W. Olin College of Engineering 12

omnova Solutions Foundation, inc. 1

Omron Foundation, inc. 5

Oregon State University 15

Ortho-Mcneil-Janssen Pharmaceuticals, inc. 3

Ouachita Baptist University 3

Owens Corning Foundation 2

Parker Hannifin Foundation 3

Frank E. Payne and Seba B. Payne Foundation 3

The Penn Mutual life insurance Company 1

Pennsylvania State University 3

Pepperdine University 2

PepsiCo Foundation, inc. 10

Pfizer inc 21 29

Pilkington north America, inc. 2

Pomona College 6

ppg industries Foundation 23 45

ppg industries, inc. 2

Public Service Enterprise Group 3

Putnam llc 1 1

Quanex Foundation 3

Rensselaer Polytechnic institute 20

Research Triangle institute 2 Rexam inc. Foundation 2


“Receiving a National Merit Scholarship can be a life-changing ex-perience for a student—it certainly was for me. even now, i still credit many of my successes in college to receiving this scholarship.”

Andrea P. Fowler2006 Scholar


Reynolds American Foundation 1 12

Rheem Manufacturing Company 3

Rhodes College 10

Rice University 112

Robbins & Myers Foundation 1 Rochester institute of Technology 9

Rockwell Automation Charitable Corporation 5

Rockwell Collins Charitable Corporation 14

Rolls-Royce north American inc. 3 1

Rose-Hulman institute of Technology 9

Rutgers, The State University of new Jersey 20

Ryerson Foundation 2

Saint louis University 3

St. Olaf College 29

Samford University 6

Santa Clara University 4 sap America, inc. 4 Schering-Plough Foundation, inc. 10

Schindler Elevator Corporation 9

Schneider Electric/Square D Foundation 1 15

Schweinburg Fund 3

Science Applications international Corporation 23

Scripps College 20

Scripps Howard Foundation 3 11

Sensient Technologies Foundation 3

Sentry insurance Foundation, inc. 1 4

The Shaw Group inc. 6

Siemens Foundation 30 30

Snap-on incorporated 2 3

Sodexo, inc. 2

Sogeti usallc 3

Solvay north America, llc 4

Sony Electronics inc. 1

South Broward Board of Realtors 2

South Dakota State University 1

Southern Company Services, inc. 11

Southern Methodist University 25

Southwest Airlines Co. 5

Southwestern University 3

C. D. Spangler Foundation, inc. 2

Spirit AeroSystems, inc. 2

State Farm Companies Foundation 5 95

Stony Brook University 8

Suburban Propane, l.p. 2

Synopsys, inc. 4

Tate & lyle Americas, inc. 2

Taylor Publishing Company 1

Technicolor usa, inc. 2

Telcordia Technologies 2

Tellabs Foundation 2

Tennessee Technological University 3

Teradata Corporation 4

Texas A&mUniversity 134

Texas Christian University 4

Texas instruments incorporated 21 Texas Tech University 6



A sponsor in nmsc scholarship programs for the past 41 years, Ameren corporation charita-ble trust annually hosts an awards ceremony for scholarship recipients. Ameren Corporation Chairman of the board, president, and Chief executive officer thomas R. voss presents scholarship certificates to (left to right) Special Scholar-ship winner Nikolaos S. Maggos, Merit Scholarship winner Abigail S. henderson, and Special Scholarship recipient Anne e. higgins.


Textron Charitable Trust 2 8

J. Walter Thompson Company Fund, inc. 2

3M Company 12 28

Tomkins Corporation Foundation 4 6

Towers Watson and Company 3

Transylvania University 6

The Travelers Employees Club 2 3

Tredegar Corporation 2

Trinity University 8

Truman State University 17

Tufts University 49

Tulane University 35

United Services Automobile Association 1

United Space Alliance 3 17

United States Fire insurance Company 2

University of Alabama at Tuscaloosa 109

University of Alabama at Birmingham 10

University of Arizona 50

University of Arkansas, Fayetteville 24

University of Central Florida 40

University of Chicago 203

University of Cincinnati 37

University of Dallas 24

University of Dayton 2

University of Evansville 12

University of Florida 132

University of Georgia Foundation 35

University of Houston 12

University of idaho 19

University of illinois at Urbana-Champaign 48

University of iowa 24

University of Kansas 26

University of Kentucky 24

University of louisville 10

University of Maine 3

University of Maryland 54

University of Miami 23

University of Minnesota 76

University of Mississippi 20

University of Missouri-Columbia 21

University of Montana 3

University of nebraska-lincoln 35

University of nevada, Reno 8

University of nevada, las Vegas 3

University of new Mexico 15

University of north Carolina at Chapel Hill 124

University of north Dakota 6 University of north Texas 9

University of Oklahoma 188

University of Oregon 11

University of Pittsburgh 3

University of Puget Sound 1

University of Richmond 5

University of Rochester 36

University of St. Thomas (Minnesota) 5

University of the South 7

University of South Carolina 28

University of South Florida 12

University of Southern California 196

University of Southern Mississippi 5

University of Tennessee 15

University of Texas at Dallas 30

University of Tulsa 46

University of Utah 14

University of Vermont 5 University of Washington 10

University of Wisconsin-Madison 5

University of Wisconsin-Eau Claire 4

University of Wyoming 1 The ups Foundation 20 105

Ursinus College 4

usg Foundation, inc. 2 3

Utility Workers Union of America, afl-cio 2

Valparaiso University 2

Vanderbilt University 144

Varian Medical Systems 1

Villanova University 5

Virginia Polytechnic institute and State University 15

Vulcan Materials Company Foundation 3

Wake Forest University 15

Walgreen Co. 14

Washington and lee University 14

Washington State University 3

Washington University in St. louis 161

The Waste Management Charitable Foundation 1

Wayne State University (Michigan) 5

West Virginia University Foundation, inc. 20


“your efforts aid in allowing thousands of students to attend some of the most selective colleges and universities in the world. your investment is sure to see huge returns as these students gradu-ate and continue to impact the world around them.”

Zachary A. Greenberg2006 Scholar


National Merit® $2500 ScholarshipsAll corporate sponsors also provide grants in lieu of paying administrative fees to help nmsc underwrite national Merit $2500 Scholarships.

President’s FundUnsolicited contributions to support Merit Scholarship® awards were received from the following donors in the 2009–10 fiscal year. They are acknowledged with sincere appreciation.

Ann BradleyCharles H. Dishman iii Family Foundation inc.Barbara J. Hillmanlending Processing Servicesnicholas FoundationBeth l. O’DonohoeRed Hat, inc.

8,292

Western Washington University 3

Westminster College (Utah) 3

Westmont College 3

Wheaton College (illinois) 25

Whitman College 22

Whitworth University 2

Willamette University 3

The Williams Companies Foundation, inc. 2 8

Wilson Sporting Good Co. 1

Wofford College 7

Worcester Polytechnic institute 8

Wm. Wrigley Jr. Company 4

Wyeth 10 29

Xavier University (Ohio) 7

The Xerox Foundation 17

Sponsor Merit Special

1,359


for 28 years, Harris corporation has provided scholarships for the children of employees of the corporation and its divisions. government Communications Systems division (gcsd) vice president, human Resources Andrea bortner (left) and gcsd group president Sheldon J. fox (right) congratulate National Merit harris Corporation Scholarship recipients and their families. Shown holding their certificates are (front, left and right) tyler C. laprade and taylor S. zimmerman.


Motorola Foundation 3

national Merit Scholarship Corporation 686

nationwide Foundation 1

navistar Foundation 1

newMarket Corporation 1

novartis Corporation 1

Occidental Petroleum Corporation 1

Ortho-Mcneil-Janssen Pharmaceuticals, inc. 1

PepsiCo Foundation, inc. 1

ppg industries Foundation 2

Research Triangle institute 1

Reynolds American Foundation 5

Sony Electronics inc. 3

State Farm Companies Foundation 20

United Services Automobile Association 1

The ups Foundation 7

Walgreen Co. 2

The Williams Companies Foundation, inc. 1

The Xerox Foundation 12

Achievement Fundin the fiscal year that ended May 31, 2010, a contribution that will be used to support Achievement Scholarship® awards was received from illinois Tool Works Foundation. Their generosity is gratefully acknowledged.

803

Sponsor # awards

Corporations, foundations, business organizations, and professional associations have financed National Achieve-ment Scholarships in every competition, including the first in 1965. They have made an impact by expending or committing over $48 million for some 13,600 awards for outstanding Black American high school students to con-tinue their education. Sponsors provide Achievement Scholarship® awards through an agreement with nmsc. The National Achievement Program’s professional ser-vices for sponsors are provided by nmsc without charge and include all aspects of candidate identification and award administration. Certificates are provided for spon-sors to present to their winners, and a press release is sent to news media in each Scholar’s community.

National Achievement® Program scholarship sponsors

Sponsors of scholarships in the 2010 National Achievement® Scholarship Program

adp Foundation 2

Ameren Corporation Charitable Trust 1

Black Contractors United 1

The Boule Foundation 12

bp Foundation, inc. 2

Chevron usa, inc. 3

Computer Sciences Corporation 1

Con Edison 2

Delta Sigma Theta Sorority, inc. 1

Gaylord and Dorothy Donnelley Foundation 1

ExxonMobil 2

Freeport-McMoRan Copper & Gold Foundation 1

geico Philanthropic Foundation 1

General Mills Foundation 2

gkn Foundation 2

Goodrich Foundation, inc. 1

The links Foundation, incorporated 4

The links, inc., Houston Chapter 1

loews Foundation 1

McDonald’s Corporation 1

The McGraw-Hill Companies, inc. 4

Mead Witter Foundation, inc. 4

Metlife Foundation 3

Sponsor # awards

Allyse A. terrell, a 2010 National Achievement Chevron Corporation Scholarship winner, expresses her gratitude at an awards luncheon. chevron corporation sponsors scholarships in both the National Merit and National Achievement Scholarship programs.

36 Annual Report

8* Abilene Christian University (8) 1 Adelphi University 2* Albion College (2) 1 Alfred University 7* Alma College (6) 17* American University (10) 20 Amherst College 100* Arizona State University (78) 134* Auburn University (113) 1 Augsburg College 2* Austin College (2) 1 Azusa Pacific University 3* Ball State University (3) 1 Bard College at Simon’s Rock: The Early College 4 Barnard College 62* Baylor University (50) 1 Bellarmine University 1 Belmont University 4* Bethel University (2) 6* Birmingham-Southern College (6) 9* Boise State University (9) 12* Boston College (7) 42* Boston University (29) 52* Bowdoin College (45) 7* Bradley University (7) 10* Brandeis University (10) 1 Brescia University 76* Brigham Young University (50) 1 Brigham Young University-idaho 78 Brown University 1 Bryn Mawr College 4* Bucknell University (4) 7* Butler University (6) 41 California institute of Technology 1 California Polytechnic State University, San luis Obispo 19* Calvin College (18) 57* Carleton College (40) 24 Carnegie Mellon University 1 Carthage College 38* Case Western Reserve University (29) 1 Catawba College 3 Cedarville University 4* Centre College (3) 1 cuny-City College 23* Claremont McKenna College (15) 1 Clayton State University 38* Clemson University (28)

1 Cleveland institute of Music 1 Cleveland State University (Ohio) 7* Colby College (Maine) (6) 2 Colgate University 4* College of Charleston (4) 2 College of new Jersey 1 College of St. Benedict 7 College of William and Mary 4* College of Wooster (4) 11* Colorado College (10) 2 Colorado School of Mines 3* Colorado State University (3) 63 Columbia University 1* Concordia College (Minnesota) (1) 1 Concordia University (nebraska) 1 Connecticut College 1 Cooper Union for the Advancement of Science & Art 1 Cornell College (iowa) 53 Cornell University (new York) 3 Covenant College 5* Creighton University (3) 84 Dartmouth College 10* Davidson College (3) 1 De Anza College 2 Deep Springs College 13* Denison University (13) 1 DePaul University 4* DePauw University (4) 6* Dickinson College (Pennsylvania) (4) 5* Drake University (5) 4 Drexel University 101 Duke University 1 Elon University 1 Emerson College 70* Emory University (55) 1 Florida Atlantic University 21* Florida State University (20) 1 Fontbonne University Fordham University 28* Bronx (26) 6* College at lincoln Center (6) 1 Fort Hays State University 5* Franklin and Marshall College (4) 23* Furman University (18) 1 Geneva College 18* George Washington University (16) 28 Georgetown University 121* Georgia institute of Technology (88)

1 Gettysburg College 5* Gonzaga University (2) 3* Gordon College (Massachusetts) (3) 1* Goshen College (1) 1 Graceland University 30* Grinnell College (28) 2 Grove City College 3* Gustavus Adolphus College (3) 2 Hamilton College 3* Hampshire College (2) 19* Harding University (15) 261 Harvard College 60* Harvey Mudd College (44) 6 Haverford College 19* Hendrix College (15) 20* Hillsdale College (15) 1 Hofstra University 1 Hood College 8* Hope College (7) 1 illinois institute of Technology 7* illinois Wesleyan University (6) 61* indiana University Bloomington (51) 47* iowa State University (34) 8* ithaca College (8) 1 John Carroll University 28 Johns Hopkins University 1 Juilliard School 2 Juniata College 3* Kalamazoo College (3) 12* Kansas State University (9) 28* Kenyon College (24) 1 Kettering University 1 The King’s College 5* Knox College (4) 1 lafayette College 13* lawrence University (Wisconsin) (12) 10* lehigh University (8) 1 leTourneau University 12* lewis & Clark College (Oregon) (8) 10* liberty University (9) 1 lipscomb University 39* louisiana State University at Baton Rouge (31) 4* louisiana Tech University (3) 2 loyola Marymount University 19* loyola University Chicago (16) 5* luther College (3) 31* Macalester College (27) 13* Marquette University (11) 1 Marshall University

Merit Scholars

Merit Scholars

Merit Scholars

*An asterisk indicates that Merit Scholars whose scholarships are sponsored by the institution are included; the number sponsored by the college is shown in parentheses.

Colleges and universities enrolling the 2010 entering class of Merit Scholar® awardees



136 Massachusetts institute of Technology 1 Mercyhurst College 4* Messiah College (4) 27* Miami University-Oxford (23) 40* Michigan State University (30) 9* Michigan Technological University (7) 9 Middlebury College 1 Millsaps College 20* Mississippi State University (19) 12* Missouri University of Science and Technology (8) 7* Montana State University- Bozeman (7) 1 Muhlenberg College 15* new College of Florida (14) 1 new England Conservatory 1 new Jersey institute of Technology 1 new Mexico institute of Mining and Technology 99* new York University (83) 2 north Carolina State University 7* north Dakota State University (6) 66* northeastern University (Massachusetts) (58) 227* northwestern University (166) 57* Oberlin College (50) 3* Occidental College (3) 1 Ohio northern University Ohio State University- 92* Columbus (75) 1* newark Campus (1) 3* Ohio University-Athens (3) 4* Oklahoma City University (4) 31* Oklahoma State University (25) 13* Franklin W. Olin College of Engineering (12) 1 Oral Roberts University 17* Oregon State University (15) 4* Ouachita Baptist University (3) 1 Pacific lutheran University 1 Pacific Union College 1 Palm Beach Atlantic University 15* Pennsylvania State University- University Park (3) 5* Pepperdine University (2) 1 Pitzer College 1 Polytechnic institute of new York University

30* Pomona College (6) 192 Princeton University 12 Purdue University 1 Randolph College 7 Reed College 23* Rensselaer Polytechnic institute (20) 1 Rhode island School of Design 15* Rhodes College (10) 169* Rice University (112) 1 Roanoke College 11* Rochester institute of Technology (9) 2 Rollins College 11* Rose-Hulman institute of Technology (9) 25* Rutgers, The State University of new Jersey (20) 1 St. John’s College (Maryland) 7* Saint louis University (3) 1 St. Mary’s College of Maryland 36* St. Olaf College (29) 9* Samford University (6) 7* Santa Clara University (4) 1 Savannah College of Art and Design 24* Scripps College (20) 1 Seattle Pacific University 1 Shepherd University 1 Smith College 2* South Dakota State University (1) 29* Southern Methodist University (25) 1 Southern Utah University 3* Southwestern University (Texas) (3) 142 Stanford University State University of new York at 2 Binghamton 12* Stony Brook (8) 1 Stevens institute of Technology 14 Swarthmore College 1 Temple University-Philadelphia 3* Tennessee Technological University (3) 177* Texas A&M University (134) 4* Texas Christian University (4) 10* Texas Tech University (6) 2 Thomas Aquinas College 1 Thomas College (Maine) 6* Transylvania University (6) 1 Trevecca nazarene University

9* Trinity University (Texas) (8) 18* Truman State University (17) 62* Tufts University (49) 45* Tulane University (35) 1 Union College (new York) 1 University of Akron University of Alabama, 128* Tuscaloosa (109) 14* Birmingham (10) 1 Huntsville 68* University of Arizona (50) University of Arkansas, 27* Fayetteville (24) 1 little Rock University of California, 83 Berkeley 2 Davis 21 los Angeles 12 San Diego 46* University of Central Florida (40) 268* University of Chicago (203) 41* University of Cincinnati (37) 3 University of Colorado at Boulder 6 University of Connecticut-Storrs 26* University of Dallas (24) 4* University of Dayton (2) 1 University of Delaware 3 University of Denver 12* University of Evansville (12) 157* University of Florida (132) 46* University of Georgia (35) 15* University of Houston- University Park (12) 22* University of idaho (19) University of illinois at 72* Urbana-Champaign (48) 3 Chicago 26* University of iowa (24) 33* University of Kansas (26) 32* University of Kentucky (24) 13* University of louisville (10) 5* University of Maine (3) University of Maryland, 63* College Park (53) 2 Baltimore County 30* University of Miami (23) 60 University of Michigan University of Minnesota- 101* Twin Cities (72) 4* Morris (4)

Merit Scholars

Merit Scholars

Merit Scholars

38 Annual Report

23* University of Mississippi (20) University of Missouri- 23* Columbia (21) 2 Kansas City 3* University of Montana-Missoula (3) 46* University of nebraska-lincoln (35) University of nevada, 10* Reno (8) 3* las Vegas (3) 1 University of new Hampshire 17* University of new Mexico (15) University of north Carolina at 160* Chapel Hill (124) 1 Charlotte 1 Wilmington 7* University of north Dakota (6) 9* University of north Texas (9) 51 University of notre Dame 225* University of Oklahoma (188) 11* University of Oregon (11) 125 University of Pennsylvania 20* University of Pittsburgh (3) 1* University of Puget Sound (1) 7* University of Richmond (5) 45* University of Rochester (36) 7* University of St. Thomas (Minnesota) (5) 7* University of the South (7) 37* University of South Carolina- Columbia (28) 13* University of South Florida (12) 250* University of Southern California (196) 5* University of Southern Mississippi (5) 19* University of Tennessee, Knoxville (15) University of Texas at 51 Austin 39* Dallas (30) 59* University of Tulsa (46) 17* University of Utah (14) 5* University of Vermont (5) 44 University of Virginia 30* University of Washington (10) University of Wisconsin- 25* Madison (5) 4* Eau Claire (4) 1 Oshkosh 1* University of Wyoming (1)

5* Ursinus College (4) 1 Utah State University 2* Valparaiso University (2) 188* Vanderbilt University (144) 2 Vassar College 9* Villanova University (5) 20* Virginia Polytechnic institute and State University (15) 15* Wake Forest University (15) 1 Walla Walla University 22* Washington and lee University (14) 4* Washington State University (3) 215* Washington University in St. louis (161) 9* Wayne State University (Michigan) (5) 5 Wellesley College 9 Wesleyan University (Connecticut) 1 West liberty State University 24* West Virginia University (20) 1 Western Michigan University 4* Western Washington University (3) 4* Westminster College (Utah) (3) 6* Westmont College (3) 31* Wheaton College (illinois) (25) 25* Whitman College (22) 4* Whitworth University (2) 4* Willamette University (3) 27 Williams College 9* Wofford College (7) 10* Worcester Polytechnic institute (8) 7* Xavier University (Ohio) (7) 224 Yale University 1 Yeshiva University

Merit Scholars

Merit Scholars

Scholars enrolled

5,0863,2068,292

Colleges attended

217126343

private institutions

public institutions

(Colleges and universities enrolling the 2010 Merit Scholar awardees, continued)



1 Abilene Christian University 3 Amherst College 2 Andrews University (Michigan) 1 Appalachian State University 4 Arizona State University 11 Auburn University 1 Bard College at Simon’s Rock: The Early College 4 Baylor University 1 Bergen Community College 1 Berry College (Georgia) 1 Birmingham-Southern College 1 Boston College 1 Brandeis University 19 Brown University 1 Bryn Mawr College 1 California institute of Technology 1 California State University, long Beach 1 Carleton College 3 Carnegie Mellon University 1 Case Western Reserve University 1 Central Michigan University CUnY- 1 City College 1 Hunter College 2 Clemson University 1 Cleveland State University (Ohio) 1 College of the Holy Cross 6 College of William and Mary 24 Columbia University 8 Cornell University (new York) 11 Dartmouth College 1 Davidson College 1 DePauw University 1 Drake University 1 Drexel University 23 Duke University 1 East Stroudsburg University of Pennsylvania 1 Elon University 10 Emory University 1 Evangel University 3 Florida A&M University 1 Fordham University 1 Fort Valley State University 1 Furman University 2 George Washington University 5 Georgetown University 2 Georgia College & State University

11 Georgia institute of Technology 1 Georgia Southern University 2 Georgia State University 1 Guilford College 2 Hamilton College 1 Hampton University 64 Harvard College 3 Harvey Mudd College 1 Haverford College 1 Henderson State University 1 Hendrix College 1 Hope College 12 Howard University 2 indiana University Bloomington 1 iowa State University 1 Jackson State University (Mississippi) 1 John Brown University 4 Johns Hopkins University 1 Johnson & Wales University 1 Kalamazoo College 1 Kenyon College 3 lawrence University (Wisconsin) 1 lebanon Valley College 1 liberty University 1 lone Star College 3 louisiana State University at Baton Rouge 1 loyola Marymount University 1 loyola University new Orleans 2 Macalester College 30 Massachusetts institute of Technology 2 Michigan State University 1 Middle Tennessee State University 1 Middlebury College 1 Mississippi State University 3 Morehouse College 1 nazareth College of Rochester 1 The new School 7 new York University 2 north Carolina Agricultural and Technical State University 3 north Carolina State University 1 northeastern University (Massachusetts) 14 northwestern University 2 Oakwood College 1 Oberlin College 8 Ohio State University-Columbus 1 Ohio University-Athens

1 Oklahoma Baptist University 1 Franklin W. Olin College of Engineering 2 Pennsylvania State University- University Park 1 Pensacola Junior College 1 Pepperdine University 2 Pomona College 1 Presbyterian College 36 Princeton University 4 Purdue University 1 Reed College 8 Rice University 1 Robert Morris University (Pennsylvania) 3 Rochester institute of Technology 1 Rose-Hulman institute of Technology 3 St. John’s University (new York) 1 Samford University 1 San Diego State University 1 Sarah lawrence College 1 Savannah College of Art and Design 1 Scripps College 1 Shenandoah University 5 Southern Methodist University 1 Southern University & A&M College at Baton Rouge 1 Southwestern University (Texas) 1 Spelman College 63 Stanford University State University of new York at 1 Buffalo 1 Geneseo 2 Swarthmore College 1 Temple University-Philadelphia 3 Texas A&M University 1 Tiffin University 2 Tufts University 1 Tulane University University of Alabama, 12 Tuscaloosa 2 Birmingham 1 University of Arkansas, little Rock University of California, 3 Berkeley 1 irvine 3 los Angeles 1 San Diego

Achievement Scholars



Colleges and universities enrolling the 2010 entering class of Achievement Scholar® awardees

40 Annual Report40

3 University of Central Florida 6 University of Chicago 1 University of Denver 1 University of Evansville 12 University of Florida 4 University of Georgia 1 University of Hawaii at Manoa 1 University of Houston- University Park 1 University of illinois at Chicago 1 University of Kentucky University of Maryland, 7 College Park 3 Baltimore County 1 University of Massachusetts Boston 6 University of Miami 11 University of Michigan 1 University of Mississippi 3 University of Missouri-Columbia 2 University of new Mexico

University of north Carolina at 10 Chapel Hill 1 Charlotte 4 University of notre Dame 7 University of Oklahoma 13 University of Pennsylvania 8 University of Pittsburgh 1 University of Redlands 1 University of Rochester 1 University of San Diego 9 University of South Carolina- Columbia 2 University of South Florida 6 University of Southern California 1 University of Southern Mississippi University of Texas at 3 Austin 1 Arlington 1 University of Toledo 6 University of Virginia 13 Vanderbilt University


Scholars enrolled

582221803

Colleges attended

112 77189

private institutions

public institutions

2 Vassar College 2 Villanova University 1 Virginia Polytechnic institute and State University 1 Wake Forest University 2 Washington and lee University 22 Washington University in St. louis 3 Wellesley College 5 Wesleyan University (Connecticut) 1 West Virginia University 1 Western Kentucky University 1 Willamette University 1 Williams College 1 Winthrop University 1 Wofford College 1 Worcester Polytechnic institute 1 Wright State University-Dayton 2 Xavier University of louisiana 49 Yale University



(Colleges and universities enrolling the 2010 Achievement Scholar awardees, continued)

to the board of directors National Merit Scholarship Corporationevanston, illinois

We have audited the accompanying statements of fi nancial position of National Merit Scholar-ship Corporation (nmsc) as of May 31, 2010 and 2009 and the related statements of activities and cash fl ows for the years then ended. these fi nancial statements are the responsibility of nmsc’s management. our responsibility is to express an opinion on these fi nancial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the united States of America. those standards require that we plan and perform the audit to obtain reason-able assurance about whether the fi nancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fi nancial statements. An audit also includes assessing the accounting principles used and signifi cant estimates made by management, as well as evaluating the overall fi nancial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

in our opinion, the fi nancial statements referred to above present fairly, in all material respects, the fi nancial position of National Merit Scholarship Corporation as of May 31, 2010 and 2009, and the changes in its net assets and its cash fl ows for the years then ended in conformity with accounting principles generally accepted in the united States of America.

Mcgladrey & pullen, llp

Chicago, illinois August 5, 2010

Financial rePortJune 1, 2009–May 31, 2010

41

to the board of directors National Merit Scholarship Corporationevanston, illinois

We have audited the accompanying statements of fi nancial position of National Merit Scholar-ship Corporation (nmsc) as of May 31, 2010 and 2009 and the related statements of activities and cash fl ows for the years then ended. these fi nancial statements are the responsibility of nmsc’s management. our responsibility is to express an opinion on these fi nancial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the united States of America. those standards require that we plan and perform the audit to obtain reason-able assurance about whether the fi nancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fi nancial statements. An audit also includes assessing the accounting principles used and signifi cant estimates made by management, as well as evaluating the overall fi nancial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

in our opinion, the fi nancial statements referred to above present fairly, in all material respects, the fi nancial position of National Merit Scholarship Corporation as of May 31, 2010 and 2009, and the changes in its net assets and its cash fl ows for the years then ended in conformity with accounting principles generally accepted in the united States of America.

Mcgladrey & pullen, llp

Chicago, illinois August 5, 2010

Financial rePortJune 1, 2009–May 31, 2010

42

StAtEMENtS OF FiNANciAl POSitiON May 31, 2010 and 2009

2009

See Notes to financial Statements.

AssetsCash and cash equivalents

investments, at fair value Money market funds Common and preferred stocks (cost: 2010, $20,641,991; 2009, $20,184,455) Mutual funds (cost: 2010, $114,845,268; 2009, $120,393,696)

other assets Accrued interest and dividend income receivable other receivables furniture, equipment, software, leasehold improvements, and prepaid expenses

liabilities and Net Assets

liabilities Sponsor grants received in advance Accounts payable and accrued expenses payable to brokers and banks

Net assets unrestricted National Merit program National Achievement program

temporarily restricted National Merit program National Achievement program

permanently restricted National Merit program National Achievement program

2010$ 621,934

5,409,051 21,251,135 119,657,946 146,318,132

83,470 25,611 1,172,096 1,281,177

$ 148,221,243

$ 2,050,948 489,673 15,338 2,555,959

125,620,635 16,597,992 142,218,627 290,770 94,871 385,641 2,421,016 640,000 3,061,016 145,665,284

$ 148,221,243

$ 255,749

7,066,307 17,403,883 111,027,455 135,497,645

76,163 200,875 153,325 430,363

$ 136,183,757

$ 1,653,061 342,752 62,624 2,058,437

114,663,593 16,400,711 131,064,304 - - - 2,421,016 640,000 3,061,016 134,125,320

$ 136,183,757

43

Unrestricted

Revenue: Sponsor grants and donor contributions investment income, net other Net assets released from restriction

expenses: Sponsor scholarship expense nmsc scholarship expense operating expenses

Net realized and unrealized gain (loss) on investments

increase (decrease) in unrestricted net assets

temporarily Restricted investment loss, net Net realized and unrealized gain on investments Net assets released from restriction

increase in temporarily restricted net assets

increase (decrease) in net assets

Net assets: beginning of year end of year

StAtEMENtS OF ActivitiES years ended May 31, 2010 and 2009

2010 2009Merit Achievement total total

$ 40,852,709 $ 711,623 $ 41,564,332 $ 41,351,562 2,538,223 339,966 2,878,189 4,216,347 7,298 1,070 8,368 5,388 50,617 - 50,617 - 43,448,847 1,052,659 44,501,506 45,573,297 39,938,788 668,158 40,606,946 40,476,989 5,883,750 1,842,734 7,726,484 7,688,084 3,326,064 719,028 4,045,092 4,244,274 49,148,602 3,229,920 52,378,522 52,409,347 16,656,797 2,374,542 19,031,339 (34,533,288 )

10,957,042 197,281 11,154,323 (41,369,338 )

(4,008 ) (1,119 ) (5,127 ) - 345,395 95,990 441,385 - (50,617 ) - (50,617 ) -

290,770 94,871 385,641 -

11,247,812 292,152 11,539,964 (41,369,338 )

117,084,609 17,040,711 134,125,320 175,494,658

$ 128,332,421 $ 17,332,863 $ 145,665,284 $ 134,125,320


44

NOtES tO FiNANciAl StAtEMENtS

Note 1. Nature of Activities and Signifi cant Accounting PoliciesNational Merit Scholarship Corporation (nmsc) is an illinois not-for-profi t corporation. nmsc executes agreements with some 500 corpora-tions, company foundations, other business organizations, and colleges and universities to provide grants in support of scholarships awarded by nmsc to students for college undergraduate study. nmsc conducts two annual competitions: the National Merit Scholarship program, which is open to all u.S. high school students, and the National Achievement Scholarship program, in which black American students participate.

the fi nancial statements have been prepared in conformity with accounting principles applicable to nonprofi t organizations, which require that net assets and related revenue, expenses, gains and losses be classifi ed as unrestricted, temporarily restricted, or permanently restricted based on the existence or absence of donor-imposed restrictions. unrestricted net assets are not subject to donor-imposed restrictions, and include funds designated by the board of directors for specifi c purposes. temporarily restricted net assets are subject to donor-imposed restrictions which will be met either by nmsc’s actions or the passage of time. temporarily restricted net assets are reclassifi ed to unrestricted net assets when the restrictions have been met or have expired. temporarily restricted net assets of nmsc include earnings on the endowment fund which have not yet been appropriated for expenditure. permanently restricted net assets are subject to donor-imposed restrictions requiring the principal to be maintained in perpetuity, and the income to be used only for nmsc’s scholarship programs.

the preparation of fi nancial statements in conformity with accounting principles generally accepted in the united States of America requires management to make estimates and assumptions affecting the amounts reported in the fi nancial statements and accompanying notes. Actual results could differ from those estimates.

Cash and cash equivalents consist primarily of checking accounts held in a major national bank. the cash balances are insured by the federal deposit insurance Corporation (fdic) up to $250,000 per bank. nmsc had cash balances on deposit at May 31, 2010 and 2009 that exceeded the balance insured by the fdic. nmsc has not experienced any losses in such accounts and management believes that nmsc is not exposed to any signifi cant credit risk on cash.

StAtEMENtS OF cASH FlOWS years ended May 31, 2010 and 2009

cash Flows from Operating Activities increase (decrease) in net assets unrealized (gain) loss on investments Realized (gain) loss on investments depreciation and amortization Changes in: Accrued interest and dividend income receivable other receivables prepaid expenses Sponsor grants received in advance Accounts payable and accrued expenses payable to brokers and banks

Net cash used in operating activities

cash Flows from investing Activities purchase of investments proceeds from sale of investments purchase of furniture, equipment, and leasehold improvements

Net cash provided by investing activities

increase (decrease) in cash and cash equivalents

Cash and cash equivalents: beginning of year end of year


$ 11,539,964 $ (41,369,338 ) (17,568,634 ) 34,187,462 (1,904,090 ) 345,826 42,948 42,149 (7,307 ) (2,922 ) 175,264 (158,825 ) (10,727 ) 9,127 397,887 (413,395 ) 146,921 (60,770 ) (47,286 ) 22,772

(7,235,060 ) (7,397,914 )

(85,417,632 ) (77,174,018 ) 94,069,869 84,238,232 (1,050,992 ) (41,621 )

7,601,245 7,022,593

366,185 (375,321 )

255,749 631,070

$ 621,934 $ 255,749

2010 2009

45

investments are refl ected at fair value based on quoted market prices for those or similar investments, or based on quoted market prices of the underlying investments for mutual funds that are not actively traded. the net gains or losses on the sale of investment securities are computed using the average cost method. transactions in all securities are recorded on a trade-date basis.

nmsc’s investments are exposed to various risks such as interest rate, market, and credit risk. due to the level of risk associated with certain investments, it is at least reasonably possible that changes in values of investments will occur in the near term and that such changes could materially affect the amounts reported in the statements of fi nancial position.

investment income is refl ected net of related portfolio management fees of $298,050 and $253,645 for the years ended May 31, 2010 and 2009, respectively.

furniture, equipment, software, and leasehold improvements are stated at cost. expenditures for major additions and improvements are capitalized and minor replacements and maintenance expenditures are charged to expense. leasehold improvements are amortized over the remaining lease term. for fi nancial reporting purposes, annual depreciation is computed using the straight-line method over the estimated useful lives of the assets. equipment and software are depreciated over fi ve years and furniture is depreciated over 10 years. the provisions for depreciation and amortization amounted to $42,948 and $42,149 for the years ended May 31, 2010 and 2009, respectively. Accumulated depreciation was $505,438 and $462,490 for the years ended May 31, 2010 and 2009, respectively.

nmsc receives grants for scholarships from various sponsors, and the grants are recognized as revenue when the applicable scholarship pay-ments are disbursed. Amounts received in advance of the disbursement of the applicable scholarship payments are recorded as a liability under “sponsor grants received in advance.”

nmsc is exempt from income taxes under Section 501(c)(3) of the internal Revenue Code and applicable state law. on June 1, 2009, nmsc adopted the accounting standard on accounting for uncertainty in income taxes, which addresses the determination of whether tax benefi ts claimed or expected to be claimed on a tax return should be recorded in the fi nancial statements. under this guidance, nmsc may recognize the tax benefi t from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by tax-ing authorities, based on the technical merits of the position. examples of tax positions include the tax-exempt status of nmsc and various positions related to the potential sources of unrelated business taxable income (ubit). the tax benefi ts recognized in the fi nancial statements from such a position are measured based on the largest benefi t that has a greater than 50 percent likelihood of being realized upon ultimate settlement. the guidance on accounting for uncertainty in income taxes also addresses de-recognition, classifi cation, interest and penalties on income taxes, and accounting in interim periods. nmsc has reviewed the tax positions for the open tax years (current and prior three tax years) and has concluded that no provision for income tax is required in the fi nancial statements. At May 31, 2010, there were no unrecognized tax benefi ts identifi ed or recorded as liabilities. nmsc fi les forms 990 in the u.S. federal jurisdiction and in most states. With few exceptions, nmsc is no longer subject to examination by the internal Revenue Service for years before 2007.

nmsc has evaluated subsequent events for potential recognition and/or disclosure through August 5, 2010, the date the fi nancial statements were available to be issued.

Certain May 31, 2009 amounts have been reclassifi ed to conform to the current year presentation without affecting previously reported net assets or changes in net assets.

Note 2. Endowment Net Assetsendowment net assets are comprised of permanently restricted contributions, all of which are invested in perpetuity as required by the donors, and accumulated unspent earnings on those contributions. the endowments are held in a mix of broad based stock and fi xed income funds. the income from these endowments is used to pay for scholarships sponsored by donors in the National Merit program and the National Achievement program.

on June 30, 2009, the governor of the state of illinois signed into law the uniform prudent Management of institutional funds Act (upmifa). upmifa differs from laws previously in place in a few key areas. it eliminates the historical dollar value rule with respect to endowment fund spending, it updates the prudence standard for the management and investment of charitable funds, and it amends the provisions governing the release and modifi cation of restrictions on charitable funds.

in accordance with the provisions of accounting guidance related to net asset classifi cation and disclosure for endowment funds and the change in illinois law described above, nmsc was required to reexamine the classifi cation of certain net assets between restriction categories; unrestricted, temporarily restricted and permanently restricted. there were no reclassifi cations between these categories as a result of the adoption of the upmifa provisions; however, certain unrestricted net assets, representing accumulated unspent endowment earnings prior to nmsc’s June 30, 2009 adoption of the upmifa provisions, were identifi ed as board-designated endowment net assets at May 31, 2010.

46

Changes in endowment assets for the year ended May 31, 2010 and 2009 were as follows:

NOtES tO FiNANciAl StAtEMENtS (continued)

$ - $ - $ 3,061,016 $ 3,061,016 $ 3,061,016 370,287 - - 370,287 - - (5,127 ) - (5,127 ) - - 441, 385 - 441,385 - - (50,617 ) - (50,617 ) - $ 370,287 $ 385,641 $ 3,061,016 $ 3,816,944 $ 3,061,016

unrestrictedtemporarily Restricted

permanently Restricted total 2009

2010

balance, beginning of yeartransfers to board-designated endowment fundsinvestment loss, netNet realized and unrealized gain on investmentsendowment net assets appropriated for expenditurebalance, end of year

$ - $ 385,641 $ 3,061,016 $ 3,446,657 $ 3,061,016 370,287 - - 370,287 -

$ 370,287 $ 385,641 $ 3,061,016 $ 3,816,944 $ 3,061,016

unrestrictedtemporarily Restricted

permanently Restricted total

2010

donor-restricted fundsboard-designated funds

endowment net assets are comprised of the following amounts related to the National Merit program and National Achievement program at May 31, 2010 and 2009:

National Merit programNational Achievement program

$ 2,984,001 $ 2,421,016 832,943 640,000

$ 3,816,944 $ 3,061,016

2010 2009

Return objectives and Risk parameters – nmsc has adopted endowment investment and spending policies that attempt to provide a predict-able stream of funding to provide scholarships as indicated by the donor while ensuring that the original value of the endowment contributions is preserved. While acknowledging that unfavorable capital market conditions may cause the market value of the endowment fund to fall below the value of the corpus during short-term periods, nmsc intends to at least preserve the value of the corpus over the long-term horizon while experiencing 4.4 percent real annual growth. Actual returns in any given year may vary from this amount.

Strategies employed for Achieving objectives – to satisfy its long-term rate-of-return objectives, nmsc determines the overall target asset al-location for the endowment fund’s total investment portfolio. this determination is based upon a study of the actual rates of return achieved

interpretation of Relevant law – nmsc’s management has interpreted upmifa as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, management has classifi ed as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. the remaining portion of the donor-restricted endowment fund that is not classifi ed in permanently restricted net assets is classifi ed as temporarily restricted net assets until those amounts are appropriated for expenditure in a manner consistent with the standard of prudence prescribed by upmifa.

in accordance with upmifa, nmsc considers the following factors in making a determination to appropriate or accumulate earnings on donor-restricted endowment funds:

(1) the duration and preservation of the fund; (2) the purpose of the donor-restricted endowment fund; (3) general economic conditions; (4) the possible effect of infl ation and defl ation; (5) the expected total return from income and the appreciation of investments; and (6) nmsc’s endowment fund investment policy.

nmsc’s endowment net asset composition at May 31, 2010 and 2009 is as follows:

permanently Restricted

2009

47

Spending policy – nmsc has a policy of appropriating expenditures from the endowment fund each year.

Note 3. Fundraising coststotal fundraising costs incurred by nmsc were $569,971 and $675,945 for the years ended May 31, 2010 and 2009, respectively. Such costs are refl ected in National Merit program and National Achievement program operating expenses in the statements of activities.

Note 4. total nMsc Expensestotal nmsc expenses incurred for the years ended May 31, 2010 and 2009 were allocated as follows:

$ 45,822,538 $ 2,510,892 $ - $ - $ 48,333,430 1,400,271 270,687 510,346 365,306 2,546,610 236,393 43,624 27,622 66,978 374,617 301,696 62,659 196,830 67,078 628,263 189,694 56,907 68,288 64,495 379,384 56,301 19,491 - - 75,792 18,323 6,301 9,688 6,114 40,426

$ 48,025,216 $ 2,970,561 $ 812,774 $ 569,971 $ 52,378,522

program Servicestotal

Managementand general fundraisingMerit Achievement

Scholarship expense Compensation and employee benefi ts printing, general offi ce, and depreciation professional services Rent, maintenance, and amortization of leasehold improvements Advisory council and selection committees directors’ meetings and employees’ travel

2010

equity 65% 62–68%

fixed income 35% 30–40%

NormalAllocationAsset Class

Allowable Range

$ 45,623,890 $ 2,541,183 $ - $ - $ 48,165,073 1,248,567 417,283 658,964 384,633 2,709,447 198,781 51,714 29,014 54,712 334,221 219,547 177,267 168,875 173,633 739,322 161,169 65,933 80,585 58,605 366,292

44,454 20,065 - - 64,519 6,063 1,893 18,155 4,362 30,473

$ 47,502,471 $ 3,275,338 $ 955,593 $ 675,945 $ 52,409,347

program Servicestotal

Managementand general fundraisingMerit Achievement

Scholarship expense Compensation and employee benefi ts printing, general offi ce, and depreciation professional services Rent, maintenance, and amortization of leasehold improvements Advisory council and selection committees directors’ meetings and employees’ travel

2009

by various asset classes, both separately and in various combinations, over periods in the past. based on the analysis, nmsc has evaluated the probabilities of achieving acceptable rates of return and defi ned the target asset allocation deemed most appropriate for the needs of the endowment fund. Currently the overall target asset allocation for the endowment fund is as follows:

Note 5. investment Gains and lossesNet realized and unrealized gains and losses for the years ended May 31, 2010 and 2009 consisted of the following:

Net unrealized gain (loss) at end of year Net unrealized gain (loss) at beginning of year Net unrealized gain (loss) for the year Net realized gain (loss) for the year Net realized and unrealized gain (loss) on investments for the year

$ 4,708,801 $ 713,020 $ 5,421,821 $ (12,146,813 ) (10,622,688 ) (1,524,125 ) (12,146,813 ) 22,040,649 15,331,489 2,237,145 17,568,634 (34,187,462 ) 1,670,703 233,387 1,904,090 (345,826 )

$ 17,002,192 $ 2,470,532 $ 19,472,724 $ (34,533,288 )

2010 2009Merit Achievement total total

48

Note 7. commitments for Future Scholarship Paymentsthe obligation for future payments to scholarship recipients presently in college and those appointed and entering college in the fall of 2010 is estimated to be $112,900,000; this includes National Merit program, $109,300,000, and National Achievement program, $3,600,000. the majority of the total obligation is to be funded by grantors for scholarships they are sponsoring; future payments are covered by agreements between nmsc and such grantors. the portion of the total obligation for scholarships to be paid by nmsc with its own funds is approximately $8,300,000; this includes National Merit program, $6,100,000, and National Achievement program, $2,200,000.

Note 8. lease commitmentsnmsc has a noncancelable lease for offi ce space expiring September 30, 2019. Rent expense for years ended May 31, 2010 and 2009 was $338,937 and $330,397, respectively. Minimum rental commitments for each of the fi ve succeeding fi scal years are as follows: $344,516 for 2011; $351,834 for 2012; $358,895 for 2013; $365,959 for 2014; and $373,023 for 2015. Commitments for years after 2015 total $1,697,486. future rentals may be adjusted for increases in certain taxes and operating expenses incurred by the lessor.

Note 9. Employee benefi t Plannmsc maintains a defi ned contribution 403(b) Retirement plan for its eligible employees who have completed at least one year of service. the total contributed by nmsc was $251,287 and $279,893 for the years ended May 31, 2010 and 2009, respectively. At the employee’s election, each contribution is made as a premium on an annuity contract or a contribution to a mutual fund custodial account.

NOtES tO FiNANciAl StAtEMENtS (continued)

Note 6. Fair value disclosuresinvestments are presented in the fi nancial statements at fair value in accordance with accounting principles generally accepted in the united States of America. guidance provided by the financial Accounting Standards board defi nes fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and sets out a fair value hierarchy. the fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). inputs are broadly defi ned under this guidance as assumptions market participants would use in pricing an asset or liability. the three levels of the fair value hierarchy under this guidance are described below:

level 1. unadjusted quoted prices in active markets for identical assets that nmsc has the ability to access at the measurement date.

level 2. inputs other than quoted prices within level 1 that are observable for the asset, either directly or indirectly.

level 3. inputs are unobservable for the asset and include situations where there is little, if any, market activity for the asset. the inputs into the determination of fair value are based upon the best information in the circumstances and may require signifi cant management judgment or estimation.

the following table summarizes NMSC’s investments accounted for at fair value. the fair values of such investments are entirely level 1 values as defi ned by the fair value hierarchy, at May 31, 2010 and 2009.

Money market fundsCommon and preferred stocksMutual funds u.S. Stock funds global Stock funds fixed income funds

$ 5,409,051 $ 7,066,307 21,251,135 17,403,883 42,886,527 37,153,106 30,455,670 28,616,792 46,315,749 45,257,557

$ 146,318,132 $ 135,497,645

2010 2009

AMY E. BELSTRAPost Graduate CoordinatorCherry Creek High SchoolGreenwood Village, Colorado

ALAN J. CAPASSOPrincipalCroton-Harmon High SchoolCroton-on-Hudson, New York

LOURDES M. COWGILLPresidentPine Crest SchoolFort Lauderdale, Florida

MARK C. DZIATCZAKPrincipalTroy High SchoolTroy, Michigan

LESLIE K. ESNEAULTPrincipalHuntsville High SchoolHuntsville, Alabama

MATTHEW P. HORVATHigh School PrincipalThe University of Chicago Laboratory SchoolsChicago, Illinois

ANNE G. JOHNS Director of GuidanceSolon High School Solon, Ohio

DONALD J. KAVANAGH PrincipalLa Salle AcademyProvidence, Rhode Island

ROCHELLE LOWERY PrincipalChamblee High School Chamblee, Georgia

DEBORAH MENKEFormer PrincipalPleasant Valley Community High SchoolBettendorf, Iowa

GAIL PAWLIKOWSKI PrincipalJohn P. Stevens High SchoolEdison, New Jersey

LOREN J. RATHERTPrincipalCatalina Foothills High SchoolTucson, Arizona

LINDA RAWLINGSPrincipalWestlake High SchoolAustin, Texas

Merit

MICHAEL BARRONAssistant Provost for Enrollment Servicesand Director of AdmissionsUniversity of Iowa

CARL BEHRENDDirector of GuidanceOrchard Park High SchoolOrchard Park, New York

WALTER A. BLAKESenior Associate Director of Admissions Wabash College

WENDY M. BOATMANGuidance CounselorNicholas Senn High SchoolChicago, Illinois

VICTORIA B. ENGLEHARTDean of College Counseling and GuidanceLake Highland Preparatory SchoolOrlando, Florida

PATRICIA F. GOLDSMITHVice President for Enrollment Marketing and CommunicationScripps College

N. KIP HOWARDFormer Assistant Vice Provost of Enrollment ManagementUniversity of South Carolina

MILDRED R. JOHNSONDirector of Undergraduate AdmissionsVirginia Polytechnic Institute & State University

KAREN A. MASONAssociate Director of College GuidanceGermantown AcademyFort Washington, Pennsylvania

MICHAEL McKEONDean of AdmissionsSaint Mary’s College of California

NANCY HARGRAVE MEISLAHNDean of Admission and Financial Aid Wesleyan University

W. CRAIG PARTRIDGEDirector of College CounselingThe Adelson SchoolLas Vegas, Nevada

JULIE STAYNERCollege CounselorJackson Hole High SchoolJackson, Wyoming

PAUL G. WEAVERDistrict Director of Counseling and GuidancePlano ISDPlano, Texas

Achievement

BRUCE V. BAILEYAssociate Director of College Counseling Lakeside SchoolSeattle, Washington

JULIE ENDERSBECounselorRosemount High SchoolRosemount, Minnesota

RHOAN GARNETTAssistant Dean of AdmissionsBowdoin College

WILLIAM L. PIERCEDirector of Admission TechnologiesThe University of Toledo

LOUIS E. QUINN, JR.School CounselorJohn Jay High SchoolCross River, New York

REBECCA ROBINSONLead CounselorClinton High SchoolClinton, Mississippi

MELVIN R. TARDY, JR.Assistant Professional Specialist, First Year of StudiesUniversity of Notre Dame

PHYLLIS L. THOMPSONDirector of Admissions and Student MarketingBenedict College

SELECTION COMMITTEES: National Scholarships in 2010

© 2010 National Merit Scholarship Corporation. All rights reserved. Printed in U.S.A.

ADVISORY COUNCIL: 2009–10

Documents

Annual Report