UMDNJ 01

Foundation OF THE UNIVERSITY

OF MEDICINE

AND DENTISTRY

OF NEW JERSEY

ANNUAL REPORT 2004

Foundation OF THE UNIVERSITY

OF MEDICINE

AND DENTISTRY

OF NEW JERSEY

ANNUAL REPORT 2004

ImagineFOUNDATION OF THE UNIVERSITY OF MEDICINE AND DENTISTRY OF NEW JERSEY

TABLE OF CONTENTS

Board of Trustees 1

Mission Statement 3

Staff Directory 3

Message from the Chair 4

Message from the Vice Chair and CEO 5

Message from the Foundation President 6

Message from the Interim University President 7

Supporting Physicians of the Future 9

Funding Humanistic Medicine 10

Endowing Scholarships 11

Expanding Services to the Latino Community 12

Helping Children With Asthma 13

Providing Ongoing Funds for UMDNJ Programs 14

Alumni Quotes 16

Foundation Donors 17

Financials 21

that your contribution can be directed exactly to the specific cause you designate.

Imagine the difference you can make

Foundation OF THE UNIVERSITY OF MEDICINE AND DENTISTRY OF NEW JERSEY 1

The Foundation of UMDNJ is an independent foundation that supports research,

education and community service programs at the University of Medicine and

Dentistry of New Jersey through private sector donations. Our volunteer Trustees

give freely of their time and expertise to direct our activities.

BOARD OF TRUSTEES

CHAIR

Roger S. Fine, Esq.

VICE CHAIR George F. Heinrich, MDChief Executive OfficerThe Foundation of UMDNJUMDNJ-New Jersey MedicalSchool Alumni Association

VICE CHAIR

John G. Collins

TREASURERSusan J. Flynn, Esq.Managing PartnerGarnet Group, LLC

General CounselBayonne Medical Center

SECRETARYSandra Brown Sherman, Esq.PartnerRiker, Danzig, Scherer, Hyland & Perretti, LLP

Edward P. BairdPresident, Group InsurancePrudential Financial

Jerry BellePresident, North AmericaAventis Pharmaceuticals

Glenn P. Callahan, Esq.Keeley & Callahan, PC

Clive S. CummisSills, Cummis, Epstein & Gross, PC

Sonia DelgadoInterim ChairmanUniversity of Medicine andDentistry of New Jersey Board of Trustees

Anita Falla, MDMedical Society of New Jersey

Kim Fenesy, DMDNew Jersey Dental SchoolAlumni Association

L. Anthony Gibson, Esq.Youngblood, Corcoran,Lafferty, Stackhouse, Hyberg &Walbman, PA

Mary Ellen GowinVice PresidentConsumer and Corporate AffairsWakefern Food Corporation

Murray Kushner

Euton Laing, MDRobert Wood Johnson Medical School Alumni Association

Carmine LoMonaco, DDSNew Jersey Dental Association

Adel A. F. Mahmoud, MD, PhDPresidentMerck VaccinesMerck & Co., Inc.

Isabel Miranda, Esq.DeCotiis, FitzPatrick, Cole &Wisler, LLP

Joseph L. MuscarelleChairmanJos. L. Muscarelle, Inc.

Robert W. Parsons, Jr.

John J. Petillo, PhDInterim PresidentUniversity of Medicine andDentistry of New Jersey

Timothy M. RingChairman and CEOC. R. Bard, Inc.

Stephen M. Scheinthal, DOSchool of Osteopathic MedicineAlumni Association

Joseph T. Stewart, Jr.

Albert Talone, DONew Jersey Association of Osteopathic Physicians and Surgeons

Charles C. Vail

Anthony R. Volpe, DDSVice PresidentClinical Dental ResearchColgate-Palmolive Company

Roy WeberDirectorCorporate Strategic PlanningBecton, Dickinson and Company

2 FOUNDATION OF THE UNIVERSITY OF MEDICINE AND DENTISTRY OF NEW JERSEY

“We give our donors

the ability to

make meaningful

differences in their

own lives, the lives

of their loved ones

and the lives of

thousands of

others throughout

the state.”

George F. Heinrich, MDVice Chairman and CEOThe Foundation of UMDNJ



Advancing programs at New Jersey’s health sciences university through private sector

support is the mission of the Foundation of the University of Medicine and Dentistry

of New Jersey.

To promote excellence in the education of health care professionals, in biomedical

research and in health care delivery, the Foundation, a not-for-profit corporation

governed by a volunteer board, solicits contributions to targeted programs and

endowments throughout the University’s system of schools, health care facilities

and affiliated institutes.

MISSION STATEMENT

George F. Heinrich, MDVice Chair and Chief Executive Officer

James M. GolubieskiPresident

Laura HarrelAssociate Vice PresidentFinance & Administration

Wilma L. PackardExecutive AssistantExecutive Offices

NEWARK

Patrick BowerVice President for Development

Martha BahamonDirector of Development

Kimberly BarwickSenior Director of Development New Jersey Dental School

Ronice BruceDirector of DevelopmentSchool of Nursing

Inya ChehadéSenior Director of Development

Kathy LissExecutive Assistant

Christopher SickelsDirector of DevelopmentUniversity Hospital

Melody VargasSpecial Projects Assistant

NEW BRUNSWICK

Joseph StampeVice President for Development

Peggy HarrisDirector of Development School of Public Health

Malcolm WernikDirector of Planned Giving

STRATFORD

June Hampson, PhDVice President for Development

Christina MosleyDevelopment Coordinator

Farah D. StithDirector of Development

CORE SERVICES

Deborah BodnarResearch Assistant

Lisa CrimminsAccounting Manager

Jeanette EngDatabase Assistant

Dale R. HefflerDirector of Communications

Sarah HullDirector of Research

Regina Beleckas Kelly Director of InstitutionalInitiatives and Stewardship

Leah PanuccioSenior Researcher

Loretta PietrowiczAdministrative Assistant

Kathy YachimoviczDatabase Assistant

STAFF DIRECTORY


This was an eventful year for the Foundation of UMDNJ. George F. Heinrich, MD,

was appointed Chief Executive Officer and James M. Golubieski assumed the position

of President. Together, they are working with our Board of Trustees, University

administration and the Foundation staff to help UMDNJ continue its important mission.

As always, our Board served with the greatest dedication. In addition to their

commitment of time and experience, this year they have provided almost $2.5 million

in support of our endowed scholarship program.

We welcomed Sonia Delgado, UMDNJ Board of Trustees; Kim Fenesy, DMD,

New Jersey Dental School Alumni Association; Carmine LoMonaco, DDS, New Jersey

Dental Association; John J. Petillo, PhD, interim president of UMDNJ and Albert

Talone, DO, New Jersey Association of Osteopathic Physicians and Surgeons. I look

forward to working with them during the coming year.

We will miss those who left our board this year—Peter L. Clemente, DMD, Richard J.

Lane, Paul J. Morris, DO and Mimi Vella, DDS. We will especially miss Stuart D.

Cook, MD, who left our board and his position as president of UMDNJ.

During his five-year tenure as president and a member of the Board of our Foundation,

Dr. Cook was instrumental in setting the future course of the University.

An internationally renowned physician, scientist and leader in academic medicine,

Dr. Cook amassed a list of remarkable accomplishments during his tenure. Through

his dedication to his profession and his tireless efforts on behalf of this University,

he enhanced UMDNJ’s reputation so that it truly has become a pride of New Jersey.

We will miss him.

As I think about the coming year, I look forward to working with John Petillo, PhD,

as he assumes leadership of UMDNJ and with our strong supporters of the past—

Johnson & Johnson, the Robert Wood Johnson Foundation and the Healthcare

Foundation of New Jersey—to name a few. I also welcome those who will join our

efforts in the coming year and hope to build strong, long-standing relationships

as we have with so many of our donors. Working together, imagine the difference

we can make.

Roger S. Fine, Esq.ChairRetired Vice President and General CounselJohnson & Johnson

MESSAGE FROM THE CHAIR

4 Foundation OF THE UNIVERSITY OF MEDICINE AND DENTISTRY OF NEW JERSEY

Roger S. Fine, Esq.



Thanks to the support of so many corporations, foundations and private citizens

statewide, the Foundation of UMDNJ had an excellent year.

Our Board continued to guide us prudently. Their thoughtful actions and decisions

have once again helped the Foundation move closer to our long-term goals in support

of the University.

For fiscal year ending June 30, 2004, the Foundation of UMDNJ collected gifts

totaling $21.6 million. Assets were $180 million, up from $160 million the previous

year, with total investments of $161 million as compared to $136 million from the

previous year.

Equally as important as our financial success are the relationships we build between

the University and the private sector. The Foundation of UMDNJ continues to be a

catalyst, bringing together those corporations, foundations and private citizens in New

Jersey who want to advance science, education and patient care with those people at

the University who are in the position to advance science, education and patient care

in New Jersey by virtue of their chosen career paths and passions.

We are in the unique situation of being able to match both groups so that our donors

can identify exactly what they wish to support in their specific areas of interest.

We give our donors the ability to make meaningful differences in their own lives, the

lives of their loved ones and the lives of thousands of others throughout the state.

We give our donors the ability to endow excellence in the health sciences at all levels,

either by supporting research to better treat or cure disease, by funding health care

professionals of the future as they embark on their careers or by contributing to

patient care programs that directly touch the lives of so many.

We give our donors the ability to see the difference they can make. Consider joining

us. Imagine the difference you can make.

George F. Heinrich, MDVice Chair & Chief Executive OfficerFoundation of UMDNJ

MESSAGE FROM THE VICE CHAIR AND CEO

George F. Heinrich, MD


The Sarbanes-Oxley Act of 2002 strives to assure corporate accountability by holding

business executives responsible for their companies’ financial statements.

While not-for-profit corporations like the Foundation of UMDNJ are not specifically

addressed by the Sarbanes-Oxley legislation, many not-for profit organizations

recognize that the accountability it requires, which promotes sound financial practice,

serves as an excellent example for the not-for-profit arena as well.

It is in this spirit that the Foundation of UMDNJ is proud to present our annual

report, which details our financial activity for fiscal year 2004. I would like to assure

you that the expertise of our Board and our staff, and our status as an independent

organization, has allowed the Foundation of UMDNJ to continue to grow as a strong

financial organization supporting research, education and patient care programs

offered through the University.

Our executive office is responsible for the preparation, integrity and fair presentation

of the financial statements found on pages 22 to 25. These consolidated financial

statements have been prepared in accordance with generally accepted accounting

principles and have been audited by the independent accounting firm KPMG, LLP,

which was given unrestricted access to all of our financial records and related data.

Our pledge to you, as a stakeholder in our organization, is that the donations you

entrust to us for the benefit of the University will continue to be well-managed; that

your money will work as hard as it can to support the programs and services you

specify; and that because of diligent stewardship, 100 percent of your gift will support

the programs or services you designate.

We thank you for your past support and look forward to working with each of you

in the coming year.

James M. GolubieskiPresident

MESSAGE FROM THE FOUNDATION PRESIDENT


James M. Golubieski



Momentum is a powerful force, having both a magnitude and a direction.

Momentum is difficult to build, but easy to lose. UMDNJ’s momentum, right

now, is strong, and its direction is forward. We must continue to build on our

current success. This is decidedly not a time for us to slow down or take a breather.

Rather, we must keep pressing onward toward increasingly lofty goals.

The University’s Board of Trustees, its deans, its administrators and its faculty

are developing the new five-year strategic plan that will guide the academy on its

continued upward trajectory. The plan will be ambitious and succinct, and to be

achievable, will require passionate interplay between our donors and the many

components that comprise UMDNJ.

We can, and we must, fire up the furnaces of generosity and ambition to a white heat,

because we have much to accomplish and extraordinary and exciting opportunities

before us. Together, we can achieve spectacular results.

Thank you for your support over the past year. Please take pride in the compelling

excellence your support has helped make possible at UMDNJ. My hope is that as

you read this annual report, you will join our donors in appreciating UMDNJ as

“A Resource for Life,” bringing all the benefits of academic medicine to the life of

our state and that you will continue your support in the coming year.

John J. Petillo, PhDInterim President

MESSAGE FROM THE INTERIM UNIVERSITY PRESIDENT

John J. Petillo, PhD.

“We have so many

talented students in

our state, it is

important for our

medical schools to

provide the incentives

needed to keep the

best and brightest

right here.”

Joseph L. Muscarelle




“I feel that the key to

the best health care in

our state starts with

our medical students...

Quality medical

education leads to

quality health care

for all NJ residents.”


Joseph L. Muscarelle, chairman of Jos. L. Muscarelle, Inc. of Maywood, N.J., cares

deeply about New Jersey and the health of its residents. He believes the best way to

advance health care in the state is to support doctors of the future as they embark

on their educations.

To help assure that New Jersey residents are well cared for, Mr. Muscarelle donated

$2 million to establish The Sharon and Joseph L. Muscarelle Endowed Dean at the

UMDNJ-New Jersey Medical School—the first endowed deanship and the largest

single endowed scholarship in the University’s history.

Income from this gift should generate approximately $100,000 annually for

scholarships at New Jersey Medical School. In addition to this endowment gift,

Mr. Muscarelle has been supporting scholarships at the medical school since 1988.

Mr. Muscarelle has lived in New Jersey his whole life, which is why he feels it is so

important to give New Jersey residents the greatest advantages. To qualify for the

scholarships, he has stipulated that students need to be New Jersey residents who

have demonstrated academic excellence and some financial need. In addition, they

must plan to practice in the state once they begin their medical careers.

“I feel that the key to the best health care in our state starts with our medical

students,” he explained. “An education cannot be replaced. Nobody can take it away

from you. Quality medical education leads to quality health care for all NJ residents.”

SUPPORTING PHYSICIANS OF THE FUTURE

Imaginethat your gift can make a difference in finding real cures and educating new doctors.

Imagine


Thanks to a $3.2 million grant from the Healthcare Foundation of New Jersey, the

UMDNJ-New Jersey Medical School has established the first Center for Humanistic

Medicine in the country.

The Healthcare Foundation of New Jersey Center for Humanistic Medicine focuses

exclusively on training doctors in compassionate care and in how to become medical

and scientific experts on humanism in medicine. The grant, the largest single grant

ever awarded by the Healthcare Foundation of New Jersey, will be supplemented

with an additional $1.2 million for scholarships

for the program from UMDNJ-New Jersey

Medical School.

At the heart of the Center is a core group of

10 academically talented, service-oriented

students who received full scholarships to attend

New Jersey Medical School. The students, all of

whom are from New Jersey, will graduate with

medical degrees and a special distinction in

humanistic care. In return, these students will

become mentors to incoming students and

will be expected to provide a high standard of

humanistic care in their medical practices once they begin their careers.

“We are excited to support such an important new component in medical training.

This new Center has the potential to really change the face of medical education and

ultimately, dramatically improve patient outcomes in their treatment,” said Lester

Lieberman, chair, Healthcare Foundation of New Jersey. “We have great confidence

in New Jersey Medical School to set a standard in humanistic training that will

someday be a model for medical schools nationally.”

FUNDING HUMANISTIC MEDICINE


Healthcare Foundationof New JerseyExecutive DirectorEllen Kramer-Lambert,Esq. and Chairmanof the Board Lester Lieberman

that 100% of the dollars you contribute go directly to the program you wish to sponsor.


FOUNDATION OF THE UNIVERSITY OF MEDICINE AND DENTISTRY OF NEW JERSEY 11

“I was delighted to

join the Foundation’s

program to raise

money for endowed

scholarships at the

University. By

establishing a

scholarship fund

in my name, I have

the satisfaction of

knowing that my

gift will help

physicians of the

future, who in turn

will directly affect

the lives of all the

patients they serve.”

John G. CollinsVice Chair Board of Trustees

With a lead gift of $2 million from Joseph L. Muscarelle to fund scholarships at

New Jersey Medical School (see story on page 9), Foundation of UMDNJ Board

members and Executive Officers have come forward to support the endowed

scholarship program initiated by the Foundation.

The following have established endowed scholarships with gifts of at least $25,000

to provide total Foundation Board giving for endowed scholarships of $2,375,000

this year:

Edward P. Baird

Glenn P. Callahan, Esq.

John G. Collins

Kim Fenesy, DMD

Roger S. Fine, Esq.

Susan J. Flynn, Esq.

James M. Golubieski

George F. Heinrich, MD


Joseph T. Stewart, Jr.

Mimi Vella, DDS

Anthony R. Volpe, DDS

Jerry BelleAventis

Endowed scholarships of $25,000 or more give donors a way to support health care

professionals of the future and pay tribute to the person whose name it bears. Donors

can choose the school to which the scholarship will be awarded, name the scholarship

and help establish scholarship criteria. Earned income from the endowment is

awarded each year in perpetuity.

In addition to the $2,375,000 that has been contributed by the Foundation Board this

year, $850,000 has been donated by alumni and University friends, bringing the total

contributions for endowed scholarships to $3,225,000 since the program began

approximately six months ago.

ENDOWING SCHOLARSHIPS



For more than 20 years, North Camden area Latino residents have accessed quality

medical care and information through the St. Luke’s Catholic Medical Services,

started by Jesuit priest and physician Mark Aita, MD.

Now, thanks to a generous grant from GlaxoSmithKline, these medical services have

expanded to include a bilingual nurse practitioner who will primarily help care for

and educate patients with diabetes, including regular clinics that provide intensive

education and treatment. The GlaxoSmithKline grant will also cover house calls by

the nurse practitioner for fragile residents.

“GlaxoSmithKline is committed to improving health care through educational

initiatives,” said Mary Linda Andrews, director, community partnerships,

GlaxoSmithKline. “We look forward to seeing the positive results of a nurse

practitioner who is able to provide much-needed assistance to the local community.”

Under the guidance of Lesly D’Ambola, DO, a 1994 graduate and assistant professor

of medicine at UMDNJ-School of Osteopathic Medicine and medical director at

St. Luke’s Catholic Medical Services, the service logged almost 5,000 patient visits

in 2003.

“The vision of our program is to bring excellent health care to those in need through

a private medical practice concept. We treat patients, many uninsured, who have

complicated medical problems by providing them with medical, psychosocial and

spiritual guidance. We bring a personal touch to health care that they may not find

in a traditional clinic setting,” said Dr. D’Ambola, who is also bilingual.

The new nurse practitioner assists Dr. D’Ambola and focuses on the community at

large by developing programs to educate residents about several diseases and illnesses,

and by teaching preventive measures so that individuals can take charge of their own

health care.

EXPANDING SERVICES TO THE LATINO COMMUNITY

“The vision of our

program is to bring

excellent health

care to those in

need through a

private medical

practice concept.”

Lesly D’Ambola, DO



Evelyn Self

“Aventis was concerned about the rise of respiratory diseases in children living in

inner cities like Newark. We wanted to do something to assure that children and their

families were educated about what they could do to prevent diseases like asthma and

that they knew about the resources they needed to access appropriate treatment

if they had symptoms of the disease,” explained Evelyn Self, director of corporate

relations for Aventis Pharmaceuticals. “By increasing awareness of the disease and

accessibility to care, we feel that we can help to provide a better quality of life for

children and their families.”

To accomplish these goals, the Aventis Pharmaceuticals Foundation generously

donated a $600,000 challenge gift to the Department of Pediatrics at UMDNJ-

New Jersey Medical School to establish The Aventis Pediatric Asthma Program.

Thanks to the gift, the medical school has launched a comprehensive pediatric

asthma program which includes three pediatric pulmonologists on the Newark

campus. The funds will also be used to purchase specialized equipment for pediatric

patients and to hire personnel who will educate and treat pediatric asthma patients

and their families. In addition, this lead gift has facilitated the establishment of

The Asthma Center of Excellence to serve pediatric and adult asthma patients

living in the greater Newark area. Space is currently being renovated for the

Asthma Center of Excellence in the Doctor’s Office Center building, adjacent

to The University Hospital.

HELPING CHILDREN WITH ASTHMA

Imaginethat your generosity will work miracles for people here in New Jersey.



“The resources we have received from the Foundation of UMDNJ through its Annual

Grants Program have provided the Center for Children’s Support with the ability to

expand its scope of clinical services for abused and neglected children and their

families,” explained Martin Finkel, DO, medical director of the Center. “This in turn

has allowed us to garner other financial support from national health organizations

and become internationally known for our work.”

The Annual Grants Program, which was established by the Foundation in 1976, is

funded by the Foundation’s board designated endowment. Working with the Program

Committee of the Foundation Board and the University, it provides University faculty

with grants to further their work in the areas of research, educational enrichment and

educational technology.

This year, faculty members received awards totaling $2,674,000, bringing the total

amount awarded since the inception of the program to $35 million (which includes

$1,710,000 secured by researchers as matching funds from outside sources).

One-third of that amount, $12 million, has been distributed within the last five years.

“Based on information provided by grant recipients, we know that as a result of

692 research grants totaling more than $16 million awarded through 2003, faculty

members have received more than 2,470 awards totaling more than $350 million

from external agencies such as the National Institutes of Health, the National Science

Foundation, and other federal agencies and private foundations,” explained

Foundation Vice Chair and CEO George F. Heinrich, MD.

For example, when the Center needed to add a second full time pediatrician to meet

the demand for more medical services to abused children, the Foundation provided

critically important financial support that was ultimately leveraged into additional

support by the State, demonstrating the importance of a private and public partnership.

“Foundation support through the Annual Grants Program was integral to the early

development of the Center for Children’s Support. We look forward to our continued

partnership as our program moves to the next level when it becomes the New Jersey

Child Abuse Research Education and Service (CARES) Institute to bring best practices

in the delivery of medical and mental health services to abused children statewide,”

Dr. Finkel said.

PROVIDING ONGOING FUNDS FOR UMDNJ PROGRAMS

“Foundation support

through the Annual

Grants Program

was integral to the

early development

of the Center for

Children’s Support.

We look forward

to our continued

partnership as our

program moves to

the next level...”

Martin Finkel, DO


“The resources we

have received from

the Foundation of

UMDNJ through

its Annual Grants

Program have

provided the Center

for Children’s Support

with the ability to

expand its scope

of clinical services

for abused and

neglected children

and their families.”

Martin Finkel, DO


Alumni continue to support their schools. From July 1, 2003 to June 30, 2004,

2,291 alumni donors contributed nearly $522,000. Here are some of the reasons why:

“ I owe my career and livelihood to UMDNJ-SOM. Helping others meet their

professional goals is a deeply satisfying feeling for me and one that far outweighs

my financial contributions to UMDNJ.”

Ira Monka, DO ’84, School of Osteopathic Medicine

“ My commitment to the NJDS began the day they accepted me as a student. I was

making a career change and this gave me the opportunity to be a dental practitioner

and educator. My decision to support the school was magnified by my family's

request to endow a scholarship at NJDS in my father's name rather than at his

own alma mater, Yale University. I hope this scholarship will help NJDS students

fulfill their dreams.”

Kim Fenesy, DMD ’86, New Jersey Dental School

“I faithfully donate each year to the Alumni Association because I am forever

grateful to UMDNJ for allowing me the opportunity to accomplish what I have

through the excellent education that I received. Simply put, giving back to the

institution that gave me so much is the right thing.”

Steve Zuckerman, MD ’80, Robert Wood Johnson Medical School

“As we get caught up in our professional and personal lives, it is easy to forget where

it all started: on that first day of class at NJMS. And while I am retired, I am

forever indebted to a school that gave me the opportunity to do what I loved and

enjoyed for more than 40 years. Financially supporting the school and participating

in activities never lets me forget what they gave me.”

Joseph Cannaliato, MD ’63, New Jersey Medical School

“I support NJDS because I love my school and feel a strong responsibility to give

something back. What better way than to endow a scholarship for financially

disadvantaged dental students at the very school that accepted me when I myself

was struggling? I hope students helped by this scholarship can concentrate on their

studies without worrying about tuition.”

Yosh Jefferson, DMD ’78, New Jersey Dental School

ALUMNI QUOTES





Gifts and Pledges of $1,000,000 and upThe Healthcare Foundation of New JerseyMerck & Co., Inc.Sharon and Joseph Muscarelle

Gifts and Pledges of $500,000 to $999,999Aventis Pharmaceuticals FoundationJohnson & JohnsonEstate of Edna MooreThe Robert Wood JohnsonFoundation

Gifts and Pledges of $100,000 to $499,999Anonymous (2)FXB U.S.A.The Healthy FoundationHorizon Blue Cross Blue Shield of New JerseyAbdol H. Islami, MDFoundation, Inc.Jefferson D. and Charlotte M. JacksonF.M. Kirby Foundation, Inc.Lions Eye Research Foundation of New Jersey, Inc.Warren C. MarvinDr. Adnan I. QureshiResearch To Prevent BlindnessEndowment Fund

Gifts and Pledges of $50,000 to $99,999Amgen, Inc.AnonymousBeiersdorf, Inc.Colgate Palmolive CompanyDelta Dental Plan of New JerseyFoundation, Inc.Abraham S. Ende Research FoundationRoger and Rebecca FineFleetBank FinancialFriends of the Children, Inc.GlaxoSmithKlineDr. Kenneth S. and Audrey S. GouldThe J. Seward Johnson, Sr. 1963 Charitable TrustNew Jersey Dental AssociationThe Prudential FoundationSchenkman Kushner Affiliates, Inc.ShopRite LPGA ClassicUMDNJ-SOMDepartment of PsychiatryVictoria Foundation, Inc.

Gifts and Pledges of $25,000 to $49,999Dr. Elizabeth A. Alger*AnonymousEsta AranoffAtran Foundation Inc.Aventis Pharmaceuticals, Inc.Edward and Kiyomi Ota BairdBiogen, Inc.Boston Scientific CorporationIn Memory of William E. BoyeFred J. Brotherton Charitable FoundationGlenn P. Callahan, Esq.Shirley B. CaseThe Center for Patient Educationand Health LiteracyChopper 79 LogisticsJohn G. CollinsThe Cooper Health SystemDr. David M. Dines*Joseph J. DiSepioDr. Joseph V. DiTrolio*Dr. Karen M. ErstfeldSusan J. Flynn and Dr. Richard E. HollanderDr. Robert R. Ford* and Dr. Barbara A. Marroccoli*Dr. and Mrs. R. Michael GallagherDr. and Mrs. George F. Heinrich*Dr. Yosh Jefferson*Johnston G. P. Inc.Dr. Miriam H. Labbok*Dr. and Mrs. Howard M. LevineEstate of Oskar LunczerThe Helen & Rita Lurie FoundationM&T Investment GroupMarcus Family Charitable FoundationSenator Joseph A. MaressaDr. Patrick J. McGovern, Jr.*Ashby John MitchellJoseph L. Muscarelle Foundation, Inc.NJ Osteopathic EducationFoundationDr. Richard G. Pozen*Robert Wood Johnson UniversityHospital Foundation, Inc.Dr. Ida E. Schwab*Jean SchwankertArnold SegalDrs. Theodore J. and Eva Bamberger StahlHerbert J. SternThe Joseph and Carol Stewart Fund

Walter & Louise SutcliffeFoundationJ. T. Tai & Company Foundation, Inc.United Way of Essex and West HudsonUniversity Physician Associates of New JerseyJanice Mitchell VassarDrs. Alan A.* and Mimi M. Vella*Dr. Anthony R. Volpe*Wawa, Inc.Drs. Allen B. and Laura Weisse*The Wildwood FoundationDr. Richard H. Wong*

Gifts and Pledges of $10,000 to $24,999Alzo International, Inc.Amboy National BankDr. Timothy Arnold*Automatic Data Processing, Inc.Belle BCC Construction, LLCBerlex Laboratories, Inc.Louise G. BristolBristol-Myers Squibb Foundation, Inc.Brooklyn Academy of Music, Inc.Budd, Larner, Rosenbaum, Greenberg & Sade, PCC. R. Bard, Inc.C. B. Richard EllisCarl Banks Celebrity Golf ClassicThe CIT Group, Inc.Colliers Houston & CompanyColumbian FoundationThe Nathan Cummings FoundationThe Danellie FoundationThe Daniel Jordan FiddleFoundationPatricia Detura*The Dow Chemical FoundationEmployees Charitable Campaign 2003Epstein Becker & Green, PCExxonMobil FoundationDr. Kim E. Fenesy*Franklin Associates IIGE CapitalGreenberg Traurig, LLPJoseph Jingoli & Son, Inc.Dr. Harumi JyonouchiMichael J. Kosloski FoundationMr. and Mrs. Paige B. L’HommedieuThe Mandelbaum FoundationThe MCJ Foundation

Frederick MonsmaDr. Susan H. Morrison*MS Research Foundation, Inc.Dr. Sukumar Nagendran*Newark AIDS Consortium, Inc.The North Ward Center, Inc.Dorothy W. NowakPatterson, Belknap, Webb & Tyler, LLPPfizer Warner-Lambert Consumer GroupPraxair Foundation, Inc.Dr. and Mrs. William F. RanieriSandler O’Neill & Partners, LPSchering-Plough CorporationMr. and Mrs. Kenneth SegalThe Sengstack FoundationEstate of Belle ShapiroSills Cummis Epstein & Gross, PCKenneth and Claudia SilvermanFamily FoundationSound Capital PartnersDavid S. Steiner & Sylvia SteinerCharitable TrustSubaru of America Foundation, Inc.Teva NeuroscienceToys “R” Us Children’s Fund, Inc.Union County Plate Glass Co.Union County St. Patrick’s DayParade Inc., Philanthropic FundThe Valley Foundation, Inc.Valley National BankWachovia Bank, NAWallerstein Foundation for Geriatric Life ImprovementStephen and Nancy WeinsteinM. R. Weiser & Co., LLPMalcolm and Amy Wernik

Gifts and Pledges of $5,000 to $9,999Abbott LaboratoriesAmerican Express CompanyDr. Judith K. Amorosa*Dr. Louis F. Amorosa*Albert D. Angel, Esq.The Angel Family Foundation, Inc.Arbee AssociatesAlbert A. Arditti Foundation, Inc.Area VII Physicians Review Org., Inc.ARG Development CorporationArmanti Financial Services, LLCUlo BaradBecton Dickinson and Company

* Alumni Donor

FOUNDATION DONORS



Dr. Paul A. Bergh* and Mrs. Catherine BerghDr. Ernest S. Biczak*Black Entertainment TelevisionBloomfield Health CareersFoundation, Inc.Edward & Susan BlumenfeldFoundationBristol-Myers Squibb CompanyThe Brook Fund, Inc.Dr. Cavan M. Brunsden*Dr. Frederick F. Buechel, Sr.*Buechel Patient Care R&E Fund, Inc.Burlington County CollegeC & C Sales, Inc. Sam CarlisiCathedral Healthcare System, Inc.Center For KeratoconusChamberlin EdmondsChubb Federal Insurance CompanyThe Clara J. Szekely Foundation, Inc.Commerce Bancorp, Inc.Dr. Monir A. DawoudDentsply InternationalDometech, Inc.Dr. Howard J. Drew*Dr. Anatoly Dritschilo*Dr. Lawrence P. Duca, Jr.*Eastern Connecticut PathologyConsultants, PCThe Elsevier FoundationThe Lester & Sally Entin FoundationLuke EvninFeil Family FoundationThe Feldman Agency, Inc.Jack W. FieldDiane FischerFleet BankFritze KeySpan, LLCMichael A. Gasko, IIIMichael A. Gasko, Jr.Drs. Arnold P. and Sandra O. GoldArnold P. Gold Foundation, Inc.Dr. Kenneth N. GoldmanGoldman, Sachs & CompanyGranite Partners, LLCDr. Ihor GussakFred HalpernDr. Gerard F. Hansen*Henry Schein, Inc.Dr. Eric W. Herman*Hill-RomAndrew HorowitzDr. Deborah M. Huff Wozniak*Jefferson-Pilot FoundationJersey GardensJewish Communal Fund

John S. & Florence G. LawrenceFoundation, Inc.Johnson Controls, Inc.Walter H. JonesThe Jonty FoundationKalison, McBride, Jackson &Murphy, PAIlan KaufthalThe Keilman Family FoundationBrian J. KerwinDr. Hal K. Kimowitz*Drs. Peter T. and Nancy N. KuoRonald MatesevacMatrix Foundation, Inc.Estate of Mary Kathryn McKenzieMcKesson General MedicalCorporationMcKesson Information Solutions, Inc.MedtronicMehl Electric Company, Inc.Menco Business ProductsRuth and Peter Metz Family FoundationMorning Sun Investments, Ltd.MSDW Credit CorporationNadaskay Kopelson ArchitectsO’Conco Healthcare ConsultantsDr. Dennis G. O’Neill*One Liberty PropertiesOSI Support Services, Inc.Pagano Connolly & Co.Pfizer Foundation Matching Gift CenterThe Pfizer Foundation, Inc.The Philadelphia FoundationEstate of Genevieve T. PietPremier Wine & SpiritsProfessional Abstract & TitleAgency, Inc.Prometheus Laboratories, Inc.Psymark Communications, Inc.Quality & Service PharmaceuticalsQuality & Service PharmacyReed Smith, LLPRoseland Property Company, Inc.Michael L. Rosenberg and Kathryn Flicker RosenbergSaiber, Schlesinger, Satz & Goldstein, LLCDr. Robert A. ScalaSchering-Plough Research InstituteScholes Electric & CommunicationsSCT Software & ResourceManagement Corp.Skanska USA Building, Inc.Sterling Properties Group, LLCStroock & Stroock & Lavan, LLPDrs. Stephen Sun* and Jenny Kim*

Dr. Robert L. Sweeney*Tartan Textile Services, Inc.Title America Agency Corp.Torcon, Inc.Turner Construction CompanyValero Energy FoundationVerizon FoundationDr. Nancy L. Villa-Brunsden*Wakefern Food CorporationWashington Mutual BankWilf Family FoundationWillisWyeth PharmaceuticalsZankel Management, LP

Gifts and Pledges of $2,500 to $4,999Bryan and Barbara AcklandAdler Calonita & Associates, LLPAlcon Laboratories, Inc.Alfred Sanzari Enterprises, LPDr. Yetta H. AppelBarr Laboratories, Inc.Dr. James D. Bohri*Dr. Joseph A. Cannaliato*Richard ChadakoffChildren’s Hope FoundationCommerce Insurance Services, Inc.Community Education Centers, Inc.Cuneo-KesselhautFamily FoundationDelta Dental Plan of New Jersey, Inc.Dr. Cosmo V. DeSteno*District 16D Eye & Ear FoundationHaliburton FalesFried, Frank, Harris, Shriver &JacobsonAndrew GasparDan J. GeltrudeGentle Caring DentistryGenzymeThe Gillette CompanyE. J. Grassmann TrustThe Greater New York Chapter of I.F.M.A.Greenberg Dauber Epstein & TuckerFrederick T. GutmannHealth Care Consulting Services, Inc.Heraeus KulzerIvoclar Vivadent, Inc.Jersey Shore University MedicalCenter Medical & Dental StaffMyrtle A. KassoverKeeley & Callahan, PCJohn B. KelleyKennedy Health System

KeyBank National AssociationRomualdo LambertiThe Law Offices of Frank DeessoChristian R. & Mary F. LindbackFoundationDr. Jacob J. LindenthalMaressa, Goldstein, Patterson,Drinkwater, Oddo & Flynn, PCJeanette F. MassmannMedco Health Solutions, Inc.Meridian Hospitals CorporationMorris Charity FundDr. Kenneth D. Nahum*National Real Estate InformationServices of NJ, Inc.Neidich & CompanyNet2Phone, Inc.New Jersey Federation of Business &Professional Women’s ClubNJ Association of OsteopathicPhysicians and SurgeonsShamin T. NoronhaOrthogen CorporationRobert D. PattonChristopher M. PenessoPfizer IncLydia T. PfundPhoenix Medical ConstructionThe Pinnacle Foundation, Inc.Procter & GamblePSE&G FoundationPublic Service Electric & Gas CompanyJoseph D. PuniaThe Raffiani Family Foundation, Inc.Regional Communications, Inc.Restaurant SerenadeDr. Charles F. Rilli*Dr. Edward P. Riuli*Sidney A. Sass Associates, Inc.Dr. Anthony R. Scillia*Septodont, Inc.Serono, Inc.Michael D. Shaffer, Esq.St. Lawrence Cement CompanyStarpoint MortgageDr. Linda E. Stone*Summit Lions Foundation, Inc.Dr. Carol A. Terregino*The TJX Foundation, Inc.Torcon, Inc.George B. TudderDr. Richard H. UllmanUnited TrustUnited Way of Tri-StateUniversity Physician Association of New Jersey

* Alumni Donor



Verizon Communications, Inc.Waldwick Lions ClubJoseph WeinbergerWeizenecker, Rose, Mottern &Fisher, PCWilmington FinanceWithumSmith+BrownSpencer B. WittyWolff & Samson, PCDr. Steven J. Zuckerman*

Gifts and Pledges of $1,000 to $2,4993M General OfficesAccredited Home LendersAccredited Mortgage ServiceC. F. AchleithnerAdams Addressing Associates, Inc.Adelson, Testan & BrundoAdvanced Rehabilitation Medical Services, LLCDr. Mary B. Alexander*Dr. Michael C. Alfano*Dr. Mitchel B. Alpert*The American Academy ofPeriodontology FoundationAmerican Business MortgageServices, Inc.Dr. Matthew T. AnkrumAnonymous (3)Dr. Pamela M. Antoniuk*Ashland Oil, Inc.AstraZeneca, LPDr. Suzanne H. Atkin*Dr. Anthony R. Avanzato*Bally’sDr. Seth N. Barbanell*Dr. Joseph A. Battaglia*John J. BayeuxBeekman Manor, Inc.Dr. Randall C. BellDr. Joseph C. Benedetto*Bergstrom FoundationBFIDr. Ashish K. Bhattacharya*Bhattacharya FoundationDr. Dennis M. Bier*Dr. Robert E. BinderMarie BlaisdellBlueberry Village, Inc.Blum & Fink, Inc.Blume, Goldfaden, Berkowitz,Donnelly, Fried & ForteDr. Robert E. Boff*Barbara C. BolellaDr. Gregory M. Borsuk*Dr. Terence P. Braden, III*Brasseler USA Dental, LLC

Raymond S. BuchJoseph A. BukovecDr. Donald J. Byk*William M. ByraCardionet, Inc.The Care Group, LLCDr. Peter D. Carnicelli*Dr. Vincent J. Castellano*Cerebral Palsy Association of Middlesex CountyDr. Philippe Chemaly, Jr.*Chi-Ti ChenChildren’s National Medical CenterDr. Peter A. Chirico*Cingular Wireless, LLCDr. Alfonse A. CinottiBetty J. ClarkJoseph & Elda Coccia Charitable FoundationCogenix, LLCCohen Herman Normane, PADr. Jay A. Cohen*Colgate Oral PharmaceuticalsNeal T. CollinsComcast Cable CommunicationsCommonwealth EndodonticsDr. James F. Considine*Dr. Joseph P. Costabile*Costas Kondylis & Partners, LLPArchitectsDr. Jeffrey N. Cowen*Daniel J. CreggRobert CronheimCrosstown Parking, Inc.Crosswinds FarmsDr. Robert F. Cullen, Jr.*Dr. Earlene B. CunninghamCureton CaplanDancker, Sellew & DouglasDatascope Corp.Dr. Kevin Davey*Barbara DeAngelisDr. Edwin A. DeitchDr. Jennifer Delikat*Dr. Joel A. DeLisaDeloitte & ToucheDr. Peter L. DeSciscio*Dr. Franklin DespositoDr. Wilma D’MelloBrian T. DonahueDr. Sandeep Singh Puar MemorialCharitable Trust, Inc.Dr. Richard R. Eckert*Ecolsciences, Inc.Edwards & Angell, LLPBurton EichlerElite Auction Services, Inc.

CDR Christopher J. Elles, Sr. (RET)Dr. Leonard K. Eng*ePlus Technology of PA, Inc.Dr. Ed Nelvyn L. Evans*Dr. Anita FallaFauchard Dental Society of NJ, Inc.Dr. Bohdan O. Fecowycz*Jeffrey M. FenesyFidelity Charitable Gift FundFidelity National Title Insurance CompanyFidelity National Title InsuranceCompany of New YorkFirst Data CorporationMark FischFiserv Securities, Inc.Fitness 21Timothy FlorinForce One Security, Inc.Fox & Roach CharitiesMichael FrancisFermin I. FranciscoDr. Grace T. Francisco*The Frascella Family Charitable FundFremont Investment & LoanThe Gale Management Company, LLCGemological Institute of AmericaGenova, Burns & VernoiaGeorge Press Fine JewelersDr. John Ghazi*Gibbons, Del Deo, Dolan, Griffinger & VecchioneGill Lane AssociatesDr. J. S. Gillin*Rosanne M. GillisDr. Marc P. Gimbel*Barry GimelstobElizabeth Glaser Pediatric AIDS FoundationS. G. GoichDr. Irvin D. Goldfarb*Gotham ConstructionCompany, LLCDr. Banafsheh Goujani*Graham Pelton Associates, Inc.Dr. David R. Grossman*Dr. Jay A. Grotas*Dr. Gary J. Guarnaccia*Dr. John D. Gumina*Alan R. HammerHandi-Hut, Inc.Harding Private Livery Service, Inc.Hartington TrustDr. Roger J. Hartman*Eric HarvittDr. James M. Hatfield*

Health & Hospitals CorporationThe William T. & Marie J.Henderson Foundation, Inc.Heritage Park Endodontics, PCDr. George A. Hermann*Dr. Bernard Herzberg*Alan P. HoffmanDr. Mary I. Holowinsky*IBM International FoundationInnovation Data Processing, Inc.Integrated Modular Systems, Inc.ITT Industries, Inc.Dr. Narpat S. Jain*Jemmison Corp.Jemmison Holding Corp.Dr. Paul B. Jenkins*Dr. Robert Johnson*Robert Wood Johnson University HospitalLeonard A. JokubaitisJomark Textiles, Inc.Webster C. JordanJudith Jordan-AustinDrs. Joseph H.* and Nancy Hochberg Kahn*Sandarsh KancheriaThe Donald M. Karp & Margery Lesnik Karp FoundationWilliam M. KellyHarris and Eliza Kempner FundKentshire Galleries, Ltd.Dr. Allen J. and Salena KernKerr CorporationDr. Daniel Y. Kim*Dr. David Kirschenbaum*The Charles and Lynne KlatskinFamily Charitable TrustJacob KleinJoseph F. KonowichKPMG, LLPSue Lachenmayr*William M. LaneDr. Frank J. Lanza*Dr. John N. Larson*The Lautenberg FoundationLois LautenbergDr. Bernard J. Lehrhoff*The Reuben & Jane LeibowitzFoundation, Inc.Dr. Edward W. Leone*Allen B. LevithanDr. Michael E. Lewis*Dr. Labrini C. Liakonis*Judith LiebermanDr. Steven L. Lieberman*Dr. John R. Lina*Little Ferry Lions Club

* Alumni Donor



Dr. Lawrence S. Lizzack*Glenn LockwoodDr. Edward Luchansky*Viola M. LynchM & M Plumbing & HeatingRoland and Pamela MacholdMack-Cali Realty CorporationDr. James W. MackenzieBruce J. MactasMahoney Cohen & Co., CPA, PCDr. George Mardirossian*Robinson MarkelDavid MarkowitzHarold MartinDr. Alfredo S. Masullo*Mazzocchi Wrecking, Inc.Dr. Barbara A. McCafferty*McCarter & English, LLPJohn McCarthyJohn T. McElgunnPaul McElgunnDr. Kevin McGuigan*Judith B. McIlduffDr. John J. McKeon*The MDE Group, Inc.Medaptus, Inc.Medical History Society of New JerseyMedical Staff of University HospitalMellon Bank, NADr. John A. Mercantini*MetrexDr. Michael Miller*Dr. Andrew S. Milone*Richard MilstenDr. Carl J. Minniti, Sr.*Alan & Barbara Mirken FoundationDianne and Thomas MizerakDr. Carl MogilThe Moneystation, Inc.Dr. G. T. Morea*Gerald MurphyCarol A. MurrayDr. Naim T. NazhaJack NelsonDr. George W. Nemeth*The Net2Phone CharitableFoundation Matching Gifts ProgramNew Jersey Council of Teaching HospitalsNew Jersey Resources Corp.New Jersey State Council Knights of ColumbusNewmark Real Estate of New Jersey, LLCDr. Thomas J. Nordstrom*North Brunswick ManorNorthmarq Capital Group

Dr. Renee J. Novello*Old Bridge Sayreville Rotary ClubO’Mealia Special EventsOrganon, Inc.Oster RealtyOur Lady of Lourdes Medical CenterDr. Fotinos Panagakos*Josef ParadisDr. Joel N. Pascuzzi*Dr. Oded O. PazPearson EducationPediatric Care of Somerset, PCDr. Richard E. Pelosi*Dr. Rama Peri*Dr. Sally L. Petito*Physicians World Div. of Thomson Healthcare, Inc.Pierre Fauchard Academy FoundationPNC Bank, NAPomerantz Staffing Service, LLCElayne PuniaPaul P. QuinnRobert Rachesky & Sylvia RacheskyCharitable FoundationDaniel J. Ragone, Sr., CPADr. Mary B. Ramundo*Raritan Valley Orthodontics, PAJohn ReaganRenaissance Terrace, LLCRiker, Danzig, Scherer, Hyland & PerrettiDr. Judith A. RileyDr. Joseph S. Ritter*Dr. Jasper J. Rizzo*Roche Diagnostics CorporationRoche Laboratories, Inc.Joseph R. RomanoDr. Nicholas A. Romanoff*Dr. Paul R. RosenDr. Arnold H. RosenheckMyron Rosner, Esq.Harold and Marilyn RothsteinRotwein & BlakeDr. Dominick A. Rubino*Dr. Vijay N. SamantJeffrey P. SanderR. Randle ScarboroughDr. Mark A. Schachman*Dr. Stephen M. Scheinthal*Laurence U. Schenk & Maura SantangeloEugene SchenkmanArthur F. Schlobohm, Jr.Dr. Paul R. SchottlandDr. Donald C. Schroeder*Dr. Robin S. Schroeder*

William SchulderSchwartz & Silverstein, LLPRichard G. SegalStephen SegalNorman and Barbara SeidenFoundationLawrence SeidmanRichard A. SeitzDr. Helen SempiraDr. Frank R. Serini*Serono, Inc.Nathan ShermanRobert L. ShermanDr. Ling-Yu ShihDrs. Mark V.* and Nancy E. K. Shumeyko*Dr. John H. SiegelDr. Nancy Sierra*Stanley SimonRandall T. SimsSirach Capital ManagementDr. Michael S. Sirkin*The Six Talents Foundation, Inc.John R. SlappSmart Solutions For Health CarePaul L. SmithSociety For Adolescent MedicineRichard SorotaSouth Jersey Gas CompanyDr. Edita SporerSt. Andrew’s R. C. ChurchSt. Jude MedicalDaniel StarkMartin F. StatfeldDr. Edward J. Stepka, Jr.*Straumann U.S.A.Dr. Calvin B. SuffridgeDr. Andrew SullivanDr. Aron-Hirsz R. Swerdlin*William P. TaggartAlice E. TassoniTelcordia Pioneers Chapter No. 99Teldata Control, Inc.Terminal Construction CorporationDr. Marilou Terpenning*The Presbytery of NewarkTri Realty Mgmt., LLCUltradent Products, Inc.University Radiology GroupDr. P. R. and Diana VagelosVanguard Charitable Endowment ProgramVermillion Consulting, Inc.Dr. Joseph Viggiano*Dr. Joseph Vitale*Dr. Diane Walder*Jerome N. Waldor

Kenneth G. WalkerJames K. WallerWayen Charitable FoundationDr. Carlisle WeeseArthur M. WeisMichael D. WeissMichael WildsteinStephen WildsteinDr. Dorian J. Wilson*Wilson, Elser, Moskowitz, Edelman & Dicker, LLPWNY Leones CubanosBetty Wold JohnsonDr. Felecia D. WrightDr. Mary C. Yankaskas*Robert T. YontefDr. Patrick F. Zazzaro*Herman ZellDr. Kenneth J. Zemanek*Dr. Joseph J. Zocco*

* Alumni Donor


The Board of Directors

New Jersey Health Foundation, Inc.

We have audited the accompanying consolidated statement of financial position

of New Jersey Health Foundation, Inc. as of June 30, 2004, and the related

consolidated statements of activities and cash flows for the year then ended.

These consolidated financial statements are the responsibility of the Foundation’s

management. Our responsibility is to express an opinion on these consolidated

financial statements based on our audit.

We conducted our audit 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 reasonable assurance about whether the financial statements

are free of material misstatement. An audit includes examining, on a test basis,

evidence supporting the amounts and disclosures in the financial statements.

An audit also includes assessing the accounting principles used and significant

estimates made by management, as well as evaluating the overall financial

statement presentation. We believe that our audit provides a reasonable basis

for our opinion.

In our opinion, the consolidated financial statements referred to above present

fairly, in all material respects, the financial position of New Jersey Health

Foundation, Inc. as of June 30, 2004, and the changes in its net assets and its

cash flows for the year then ended in conformity with accounting principles

generally accepted in the United States of America.

July 23, 2004

INDEPENDENT AUDITORS’ REPORT



ASSETS:Cash $ 54,343Contributions receivable, net (note 5) 19,437,930Investments (note 2) 160,927,102Prepaid expenses and other assets 255,334Total assets $ 180,674,709

LIABILITIES AND NET ASSETS:Liabilities:Accounts payable and accrued expenses $ 702,482Grants payable 34,429,788Total liabilities 35,132,270Net assets (note 4):Unrestricted-board designated 48,882,260Temporarily restricted 15,543,184Permanently restricted 81,116,995Total net assets 145,542,439Total liabilities and net assets $ 180,674,709

See accompanying notes to consolidated financial statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITIONJUNE 30, 2004

CONSOLIDATED STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2004

Unrestricted- Temporarily Permanentlyboard designated restricted restricted Total

REVENUES AND GAINS:Contributions $ 56,655 $ 12,594,782 $ 7,379,079 $ 20,030,516Special events revenue — 1,611,541 — 1,611,541Less direct costs — (971,025) — (971,025)

Net special events revenue — 640,516 — 640,516Total contributions 56,655 13,235,298 7,379,079 20,671,032

Interest and dividend income 992,743 211,763 1,133,299 2,337,805Net unrealized and realized gains on investments 9,610,891 — 8,277,209 17,888,100Cost recovery fees — (211,763) (1,223,981) (1,435,744)Investment management fees (85,213) — (88,692) (173,905)

Total revenues and gains 10,575,076 13,235,298 15,476,914 39,287,288 Net assets released from restrictions for grants 19,759,832 (19,759,832) — —Total revenues and gains and other support 30,334,908 (6,524,534) 15,476,914 39,287,288

EXPENSES:Grants 22,616,686 — — 22,616,686Administrative 722,901 — — 722,901Fund raising 1,539,152 — — 1,539,152

Total expenses 24,878,739 — — 24,878,739Increase (decrease) in net assets 5,456,169 (6,524,534) 15,476,914 14,408,549Net assets as of beginning of year 43,426,091 22,067,718 65,640,081 131,133,890Net assets as of end of year $ 48,882,260 $ 15,543,184 $ 81,116,995 $145,542,439




CASH FLOWS FROM OPERATING ACTIVITIES:Increase in net assets $ 14,408,549Adjustments to reconcile increase in net assets to net cash used in operating activities:

Receipts permanently restricted for long-term investment (15,476,914)Net unrealized and realized gains on investments (17,888,100)Decrease in accrued interest receivable 300,903Decrease in contributions receivable 3,680,374Decrease in prepaid expenses and other assets 219,498Decrease in accounts payable and accrued expenses (385,321)Increase in grants payable 6,768,395

Net cash used in operating activities (8,372,616)

CASH FLOWS FROM INVESTING ACTIVITIES:Purchases of investments (34,514,586)Proceeds from sales of investments 27,438,218

Net cash used in investing activities (7,076,368)

CASH FLOWS FROM FINANCING ACTIVITIES:Receipts permanently restricted for long-term investment 15,476,914

Net increase in cash 27,930Cash as of beginning of year 26,413Cash as of end of year $ 54,343


CONSOLIDATED STATEMENT OF CASH FLOWSYEAR ENDED JUNE 30, 2004



(1) ORGANIZATION AND SUMMARY OFSIGNIFICANT ACCOUNTING POLICIES

OrganizationOn May 24, 2002, New Jersey Health Foundation, Inc. wasestablished. The newly formed organization is a not-for-profitcorporation organized under the laws of the State of Delaware,which is organized and shall at all times be operated exclusivelyto support medical, dental and other healthcare education andresearch, including without limiting the foregoing, the support ofthe University of Medicine and Dentistry of New Jersey, and forother scientific, charitable, literary and educational purposes. Established in 1974 by New Jersey business and professionalleaders, The Foundation of the University of Medicine andDentistry of New Jersey (the Foundation) is an independent, not-for-profit organization whose purpose is to enhance educational, research and community service programs at The University of Medicine and Dentistry of New Jersey (theUniversity) through the support of the private sector. TheFoundation’s resources are intended and used to complement,not replace, the State of New Jersey’s obligation to provide basicbudgetary support for the development and operation of theUniversity. As an autonomous organization, the Foundation isgoverned by its own board of trustees and bylaws. TheFoundation’s board of trustees represents the State of NewJersey’s corporate and professional leadership. New Jersey Health Foundation, Inc. and The Foundation of the University of Medicine and Dentistry of New Jersey areorganizations described under Section 501(c)(3) of the InternalRevenue Code and therefore are exempt from Federal incometaxes under Section 501(a) of the Code.

Summary of Significant Accounting Policies

Basis of PresentationThe consolidated financial statements include the accounts ofNew Jersey Health Foundation, Inc. and The Foundation of theUniversity of Medicine and Dentistry of New Jersey, collectivelyhereinafter the Organization. The New Jersey HealthFoundation, Inc. is the sole member of The Foundation of theUniversity of Medicine and Dentistry of New Jersey and is a supported organization. All significant intercompany balancesand transactions have been eliminated in consolidation.Although these entities have been consolidated for financialstatement presentation, there may be limitations, due to thenature of the entity or other factors, on the use of a consolidatedentity’s funds by the other member of the group.The accompanying consolidated financial statements, which arepresented on the accrual basis of accounting, have been preparedto focus on the Organization as a whole and to present balancesand transactions according to the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes thereinare classified as follows:• Permanently restricted net assets—net assets subject to donor-

imposed stipulations that they be maintained permanently bythe Organization. Generally, the donors of these assets permitthe Organization to use all or part of the income earned onrelated investments for general or specific purposes.

• Temporarily restricted net assets—net assets subject to donor-imposed stipulations that will be met by actions of theOrganization or by the passage of time.

• Unrestricted net assets—net assets not subject to donor-imposed stipulations.

Revenues are reported as increases in unrestricted net assetsunless use of the related asset is limited by donor-imposedrestrictions. Expenses are reported as decreases in unrestrictednet assets. Gains and losses on investments and other assets orliabilities are reported as increases or decreases in unrestrictednet assets unless their use is restricted by explicit donor stipulation or by law. Expiration of temporary restrictions on net assets is reported as net assets released from restrictions.

ContributionsContributions, including unconditional promises to give, are recognized as revenues in the period received. Conditional promises to give are not recognized until they become unconditional. Contributions of assets other than cash arerecorded at their estimated fair value at the date of donation.Contributions to be received after one year are discounted at anappropriate discount rate commensurate with the risk involved.Amortization of discount is recorded as additional contributionrevenue in accordance with donor-imposed restrictions, if any, onthe contributions. An allowance for uncollectible contributionsreceivable is provided based upon management’s judgmentincluding such factors as prior collection history, type of contribution and nature of fundraising activity.

Charitable Remainder TrustsThe Organization is a remainder beneficiary of irrevocable charitable remainder trusts held by others. At the dates thesetrusts are established, receivables and contribution revenues arerecognized at the present value of the estimated future benefits tobe received when the trust assets are distributed. The receivablesare adjusted during the term of the trusts for changes in thevalue of assets, accretion of the discount and other changes inthe estimates of future benefits. Such adjustments are reported aspart of contribution revenue in the accompanying consolidatedstatement of activities.

Grants PayableGrants are distributed in the areas of research, research training,educational enrichment, student assistance, university venturesand community health. Grants payable are recorded at the timeauthorized by the board of trustees of the Organization andcommunicated to the recipient.

Use of EstimatesThe preparation of financial statements in conformity withaccounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts ofrevenues and expenses during the reporting period. Actual resultscould differ from those estimates.

CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2004



Concentration of RiskThe Organization maintains a significant and diverse investmentportfolio which includes money market funds, bonds and notes,corporate stocks and alternative assets. The Organization periodically reviews the performance and risks associated withthese investments, and believes its credit risk is limited. As theOrganization is dependent on investment return to fund a significant portion of the operations of the Organization, a significant decrease in investment return may have a materialimpact on the financial position, changes in net assets and cashflows of the Organization.

Fair Value of Financial InstrumentsThe carrying amount of cash and investments in money marketfunds approximates fair value because of the short maturity ofthese financial instruments. The fair value of investments in debtand equity securities is based upon quoted market values.

(2) INVESTMENTS

Investments are carried in the financial statements at fair value,as determined by quoted market values, and consist of the following as of June 30, 2004:

Money market funds $ 25,280,295Bonds and notes 25,272,765Equity:

Large-Mid Cap 55,043,767Small Cap 19,430,860International 15,662,575

Alternative assets 20,236,840$ 160,927,102

(3) RETIREMENT PLAN

The Organization has a defined contribution retirement plancovering substantially all eligible full-time employees which provides for the purchase of annuities for employees. The cost of the plan for the year ended June 30, 2004 was approximately$207,000.

(4) NET ASSET BALANCES

Board Designated Net AssetsBoard designated net assets are not subject to donor or other outside restrictions. These net assets have been designated by the Board of Trustees and the Board of Directors of the respective Foundations and are expended at its discretion and direction.

Temporarily Restricted Net AssetsAs of June 30, 2004, temporarily restricted net assets are available for the following purposes:

Construction of faclities $ 10,074,414Research grants 5,468,770

$ 15,543,184

Permanently Restricted Net Assets

As of June 30, 2004, permanently restricted net assets consist of endowment contributions from donors with income to be

reinvested as permanently restricted or to be used for specific or general purposes as follows:

Faculty chairs $ 41,317,647Scholarships and fellowships 7,631,884Other 32,167,644

$ 81,116,995

(5) CONTRIBUTIONS RECEIVABLE

Contributions receivable consist of the following as of June 30, 2004:

Unconditional promises to give, net $ 18,352,384Receivable under charitable remainder trust agreements 1,085,546

$ 19,437,930

Contributions receivable are expected to be received subsequentto June 30, 2004 as follows:

One year or less $ 15,227,937One year to five years 5,528,955Present value discount at 3% (1,318,962)

$ 19,437,930

The receivable under charitable remainder trust agreements of$1,085,546 as of June 30, 2004, consists of the following:(1) Charitable remainder trust to be received after the death

of two beneficiaries, namely the wife and son of the deceased donor. The estimated value of the trust assets to be received by the Organization is $2,000,000. Therefore, as of June 30, 2004, the present value of the $2,000,000 at 7% for 34 years, $245,546, has been included in contributions receivable.

(2) Charitable remainder trust to be received after the death of the donor. The estimated value of the trust assets to bereceived by the Organization is $840,000, which has beenincluded in contributions receivable.

(6) HIGHER EDUCATION INCENTIVEENDOWMENT FUND

The State of New Jersey Senate and General Assembly enactedP.L. 1999, c.226 (the Act) creating a nonlapsing fund, the“Higher Education Incentive Endowment Fund”, which, subject to the availability of funds, shall be used to providematching funds against certain contributions to four-year publicinstitutions of higher education, or their institutionally relatedOrganizations, among others as set forth in the Act.This funding applies to endowment contributions and donationsmade during fiscal year 1999 and thereafter. For endowmentcontributions of $1,000,000 or greater, matching funds in anamount equal to the original contribution are expected to beprovided by the State of New Jersey. These matching funds areexpected to be paid equally over a ten-year period.The Organization received $732,375 of these matching fundsfrom the State of New Jersey in 2004 under the provisions of the Act and has recorded this amount as revenue in theaccompanying consolidated statement of activities for the yearended June 30, 2004.



Over the past six years, thanks to the increasing generosity of our donors, the ability

of the Foundation to meet the needs of the University has grown significantly.

THE FOUNDATION OF UMDNJBUILDING RELATIONSHIPS FOR LIFE

NUMBER OF GIFTS TOTAL ASSETS INVESTMENTS

NEWARK CAMPUS

University AdministrationUMDNJ–New Jersey Medical SchoolUMDNJ–New Jersey Dental SchoolUMDNJ–Graduate School of Biomedical SciencesUMDNJ–University HospitalUMDNJ–School of Health Related ProfessionsUMDNJ–School of NursingUMDNJ–University Behavioral HealthCareUMDNJ–School of Public HealthCenter for Advanced and Continuing EducationGeorge E. Smith Library of the Health Sciences

PISCATAWAY/NEW BRUNSWICK CAMPUS

UMDNJ–Robert Wood Johnson Medical SchoolUMDNJ–Graduate School of Biomedical SciencesUMDNJ–University Behavioral HealthCareUMDNJ–School of Health Related ProfessionsUMDNJ–School of Public Health

CAMDEN CAMPUS

UMDNJ–Robert Wood Johnson Medical School

STRATFORD CAMPUS

UMDNJ–School of Osteopathic MedicineUMDNJ–Graduate School of Biomedical SciencesUMDNJ–School of Health Related ProfessionsUMDNJ–School of NursingUMDNJ–School of Public Health

SCOTCH PLAINS CAMPUS

UMDNJ–School of Health Related ProfessionsCenter for Advanced and Continuing Education

SCHOOLS, UNITS AND CAMPUSES OF UMDNJ


“My wife and I are

very happy to support

Robert Wood Johnson

Medical School

through the Bioethics

Lectureship that we

established in honor

of my parents. My

parents, who defined

the very ability to

overcome adversity,

lived through

extraordinary times

that included two

major wars, the

Depression and the

Holocaust. We were

very close and my

memory of them is

inseparable from

their commitment to

ethical values and

their profound sense

of Jewish and secular

history and culture.”

Drs. Theodore and Eva Bamberger Stahl

Foundation of theUniversity of Medicine andDentistry of New Jersey

Newark, New Brunswick, Stratford

Toll-free (866) 44-UMDNJ

www.umdnj.edu/foundation

Documents

UMDNJ 01