Interim President O'Brien

Interim President Denis P. O'Brien

Dear Friends,

I am pleased to share with you our 2024 President's Report, which captures many impressive milestones and accomplishments at Drexel University, along with major, exciting changes underway.

Among the numerous accomplishments in 2024 worth noting:

  • We had a banner fiscal year both for faculty scholarship, with research expenditures reaching an all-time high of $156 million, and for fundraising, with $112 million in new gifts and commitments — the strongest performance in nearly a decade;
  • Our students excelled in academics and performed brilliantly outside the classroom for their co-op employers and in the arts, academic competitions and athletics — including a thrilling run by our women’s basketball team to win a berth in the NCAA tournament and a gold medal win victory for Drexel alumnus Justin Best and his teammates in the men’s four-man boat race at the Summer Olympics in Paris;
  • We welcomed the most diverse and academically accomplished class in Drexel's history, while the first-year undergraduate retention rate for the September 2023 cohort reached 95%;
  • Our campus continued to grow more vibrant. We completed the construction at the Buckley Bubble at the Vidas Athletic Complex and opened the 40,000 square-foot recreational field at the former site of Myers Hall, giving our students more beautiful green space at the heart of their residential community;
  • We completed the first phase of our merger of choice with Salus University, which will transform Drexel into a comprehensively integrated national powerhouse in the health sciences and professions; and
  • Drexel made a huge jump in the 2025 US News & World Report rankings of national universities, which now focus more heavily on student outcomes. We moved up 12 spots — from 98th to 86th in the overall rankings — and seven spots from 50th to 43rd place among private universities. Drexel scored especially impressive gains to secure its position in the top tier across multiple categories, including Pell graduation rankings, "Top Performers for Social Mobility," "Best Colleges for Veterans," "Best Value Schools," and financial commitment to student success. Drexel is also ranked 29th among the "Most Innovative Universities."

2024 was also a year of significant transitions for Drexel:

  • We welcomed two new deans: Emily A. Roper, PhD, became dean of the College of Nursing and Health Professions, joining us from Sam Houston State University, where she served as its dean of the College of Health Sciences; and Neville Vakharia, PhD, a proud "triple Dragon" faculty member and senior administrator at the Antoinette Westphal College of Media Arts & Design, became dean of the Pennoni Honors College; and
  • John Fry concluded his consequential 14-year presidential tenure at Drexel, which featured numerous accomplishments that helped make our University synonymous with innovation, bold ambition and community impact.

Since becoming Drexel's interim president this past October, I have devoted my energies to keeping our University moving forward along the critical path of continuous improvement — both in achieving long-term financial resilience and margin improvement, and in executing the University's exciting plans for Academic Transformation.

Like virtually all tuition-dependent colleges and universities nationwide, Drexel faces considerable challenges. They include a sharp undergraduate enrollment loss brought on by the delayed rollout of the Free Application for Federal Student Aid (FAFSA); the steep, imminent decline in the population of high school graduates, and growing national skepticism about the value of a college degree.

Hoping for the best or just waiting for things to get better is not the Drexel way. Rather, we are seizing these challenges as an impetus to build on our foundation of considerable strengths and successes and re-invent Drexel for long-term success and impact.

That process of reimagining Drexel begins with our plans to build financial resilience. We already have made hard but necessary choices to right-size our University by simultaneously reducing expenditures, aggressively growing our enrollment and pursuing other new sources of revenue. As a result, we will bring our operating expenses into permanent alignment with our recurring revenues and achieve margin improvement within the next three years.

As we develop financial resilience, we also are literally transforming Drexel into a more comprehensively integrated University. Executing our visionary plans around Academic Transformation will empower Drexel to leverage its considerable assets and distinguishing strengths in experiential education toward growing more innovative in our research and teaching, more indispensable to our academic, industry and civic partners, and more competitive for students, families and benefactors who rightly expect maximum value for their investment of time, talent and treasure.

Under Academic Transformation, Drexel will focus on:

  • Restructuring Drexel's schools and colleges into integrated, forward-looking pillars of expertise;
  • Transitioning to a semester calendar for all programs, which will strengthen Drexel's ability to recruit and retain students, and to serve our co-op partners;
  • Defining and implementing core competencies, supporting pedagogical innovation and redesigning our curriculum to continually improve the quality of our programs and support student learning and outcomes; and
  • Working to develop greater consistency in practices and policies across academic units to support flexibility and collaboration.

Furthermore, Academic Transformation will break down silos and make Drexel more nimble, efficient and easier for all our stakeholders to understand and navigate, and more conducive to rewarding experiences for our students, faculty and professional staff.

Ultimately, in pursuing Academic Transformation, we are affirmatively responding to Anthony J. Drexel's exhortation to the institution he founded to continue changing with the times so that it can continue to excel at preparing great future professionals, problem solvers, citizens and leaders.

Drexel is a second family to me. As a proud alumnus and a University trustee, I have been honored to serve as interim president. I can tell you: This is already a great University that is affording its students an unbeatable educational experience.

What's more, Drexel will keep getting better. How rewarding it has been to recently join my fellow trustees in introducing superb leader Dr. Antonio Merlo as Drexel's 16th president. He is all in on Academic Transformation, bullish on Drexel's future, enthralled with our city and Commonwealth, and eager to work alongside our amazing global community of faculty, students, alumni, professional staff, and friends and partners.

Sincerely,

Denis P. O'Brien

Interim President

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New Horizons

Drexel is in the thick of big changes, setting the institution up to lead for decades to come.

Experiential Education

The University's model meshes world-class academics with real-world experience, applying knowledge in limitless ways.

Trailblazing Discoveries

Drexel's scholars are impacting the world with game-changing research and innovations across disciplines.

Athletics Excellence

It's been a banner year for Drexel Dragons, who excel in the classroom and on the court.

Securing the Future

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A Thriving and Devoted Network of Alumni and Friends

Fundraising priorities continue to focus on student success and retention, which include scholarships, as well as other key strategic initiatives.

In 2024, Drexel closed out its strongest fiscal year for fundraising in nearly a decade, with more than $112.6 million in new gifts and commitments secured. Alumni, partners and friends demonstrated their deep belief in Drexel as a leader in higher education, and their generous support and passion for this institution helps ensure its lasting impact. Notable is the 2,578 households that made their first ever gift to Drexel, as well as the 7,022 individual donations made to the University on May 15, 2024, during Drexel's 24 Hours of Impact. With $1.16 million in total funds raised, it was the fourth consecutive year that the single day of giving exceeded the million-dollar threshold.

Also impressive is the 2,046 alumni who volunteered a total of 14,968 hours to Drexel, whether spending time on advisory boards and committees or mentoring students, as well as serving as speakers, moderators or panelists at events, and more. Drexel's devoted network of supporters advance initiatives in every realm, lifting the student experience and forward-looking vision of the University's strategic plan "Drexel 2030: Designing the Future" and its blueprint for Academic Transformation.

A Strengthened System

As part of a strategic reimagining of The Anthony J. Drexel Society, the University offered a more robust series of events to convene this distinguished community of top supporters and developed an additional tier to recognize giving by recent alumni. These efforts — driven by Drexel’s commitment to enhance donor recognition and engagement — are anticipated to further strengthen the University’s donor base and enhance support for critical initiatives and unrestricted gifts to the University as a whole. And for the first time since the pandemic, Drexel revived its Celebration of Scholarship event, which brings together donors, student recipients and University leaders in recognition of the critical importance of an accessible education. The event highlighted the impact of more than $15 million in donor-funded scholarships, which supported nearly 3,600 students during the 2023-2024 academic year.

Dragon Network, the online professional development community for alumni and students launched in 2020, now includes over 12,000 members. The network gained 44% more users, and alumni and students exchanged 233% more messages year over year.

Throughout 2024, the Drexel University Black Alumni Council (DUBAC) commemorated its 10-year anniversary. As part of the council’s ongoing commitment to fostering meaningful ties between students and alumni and empowering the next generation of Black alumni, the group has raised $200,000 to date toward the DUBAC Endowed Scholarship Fund. DUBAC also published a second volume of its book “A Legacy to Share,” written by graduates spanning from the classes of 1968 through 2022.

In February 2024, Drexel launched its Asian & Pacific Islander (API) Alumni Network to connect and engage the API community through inter-generational community building, learning opportunities and professional development.

Drexel Programs Get a Boost

A transformational gift from The Howley Foundation will expand Drexel’s Howley College Scholars Program, which advances affordable college experiences for low-income graduates of selected Philadelphia-area high schools. The foundation, led by Drexel Trustee W. Nicholas Howley, ’75, his wife Lorie and their daughter Meg, ’10, will underwrite scholarships for up to 10 students per class year who are majoring in engineering, biomedical engineering, business, nursing or computing and informatics. 

TransDigm Group Inc., a global designer, producer and supplier of highly engineered aircraft components, systems and subsystems, has made an additional commitment to its established Doug Peacock Scholarship Program, which supports female undergraduate students who are from traditionally underrepresented backgrounds and have financial need.

Support from Robert Pritchard, EdD, ’64, ’69, and his wife Barbara Pritchard will advance LeBow’s top strategic priorities, and Anthony R. Zecca, PhD ’68, ’70, ’73, and his wife Lynda L. Zecca made additional gifts toward their endowed scholarship fund, which supports students in the Department of Materials Science and Engineering.

Renowned concert promoter Larry Magid and his wife Mickey have made a bequest commitment to benefit the Antoinette Westphal College of Media Arts & Design’s music and music industry students through co-op stipends, artist-in-residence events, a distinguished lecture series and more. The bequest will also provide discretionary funding for the University’s Lenfest Center for Cultural Partnerships. This builds on the Magids’ previous bequest commitment totaling $1.6 million that established scholarship funds in Music Industry, Arts & Entertainment Management, and Sport Management, along with funds that will be dedicated to the Dornsife Center for Neighborhood Partnerships.

Engagement On and Off Campus

After providing initial funding that launched the creation of the Academic Resource Center, Trustee Patrick McGonigal, ’86, has made a subsequent commitment to enable additional renovations and fund programming that will advance student achievement. In recognition of this ongoing support, the center will be renamed the Patrick McGonigal Academic Resource Center.

The late Roberta Scheller, ’80, and her husband Ernest Scheller Jr. created an endowed leadership role in their names to support Drexel Hillel’s Israel education and engagement efforts. And thanks to generous leadership support from Dana, ’83, HD ’14, and David Dornsife, HD ’14, the former West Philadelphia Community Center recently completed part of the planned renovations for the facility and reopened to the public. The new facility, which is part of the Dornsife Center, will be the home to expanded programming for area residents. Prior to this gift toward building renovations, the couple donated to help Drexel acquire the building in 2018. 

Community partners continue to bolster the critical work of St. Christopher’s Hospital for Children. In October 2024, the hospital announced a renewed investment of $30 million over two years from Temple University, Jefferson University, Philadelphia College of Osteopathic Medicine and Children’s Hospital of Philadelphia. Independence Blue Cross, which played a critical role in bringing the initial coalition together in 2022, continues to be a strong supporter of St. Christopher’s. Building on the momentum provided through these integral partnerships, in fiscal year 2024, the development team raised the most money ever since the hospital returned to its nonprofit status with $2.6 million in gifts and an additional $1.7 million in matching money from the Center for Medicare and Medicaid Services. In the first half of fiscal year 2025, the team secured an anonymous $1 million gift, a portion of which will establish a new endowed fund, which represents the first endowment for St. Christopher’s since its purchase by Drexel University and Tower Health in 2019, and the first endowment for the Oncology Department.

Legacy of Excellence

Drexel’s fundraising success in fiscal year 2024 stands as a testament to the unwavering dedication and collective support of a thoughtful community of alumni and friends. By coming together to contribute to Drexel’s future, an unmatched, positive experience for generations of students will continue.

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A Framework for Financial Resilience to Strengthen the Academic Enterprise

The Drexel community is addressing challenges facing higher education while keeping eyes on building the University into a global, partnership-driven powerhouse in research and experiential education.

2024 Consolidated Statement of Activities & Financial Position [PDF]

The University ended fiscal year 2024 on firm footing, with an overall increase in net assets of $78.2 million, versus a budgeted decrease of $78 million. Drivers of the $156.2 million positive variance include strong performance of operating revenues without donor restrictions and prudent management of operating expenses; a one-time net gain of $104.1 million from the Drexel-Salus merger; and a strong endowment performance.

While the overall bottom line was positive, the University had a negative $63.4 million operating margin for fiscal year 2024. Still, the University's operating performance was better than budgeted by $15 million, despite absorbing an additional $15 million in malpractice expenses and a $19 million shortfall in restricted gifts.

Through the multi-year Building Financial Resilience initiative, Drexel is proactively addressing the 10% structural imbalance in its operating budget by identifying and implementing approximately $150 million of expense reductions, cost avoidance and revenue enhancements by fiscal year 2027.

The University has already identified strategies totaling over $105 million of the $150 million goal, including streamlining and reducing the administrative structure of the University, implementing shared services to better support the academic mission and achieve efficiencies, growing enrollment and net tuition revenue, improving business processes, monetizing real estate holdings, and optimizing space and lease holdings. With sustained transparency, strategic thinking and a commitment to working together, Drexel will continue to overcome adversity in all its forms.

Endowment Performance

Total endowment assets, which include the Academy of Natural Sciences of Drexel University, totaled $1.085 billion at the end of fiscal year 2024. The Drexel endowment’s managed assets continued to deliver strong returns.

As of June 30, 2024, the trailing one-year return was +10.7%, bringing five-year annualized returns to +8.6%, which places Drexel in the top 11% of endowments and foundations within the Wilshire Endowment and Foundation Survey. Since inception in 1991, annualized returns were +8.3%, placing Drexel in the top quartile of the Wilshire survey.

Returns were achieved while maintaining higher levels of liquidity throughout the fiscal year. On a consolidated basis, the endowments contributed $53 million to the University’s operating budget during the fiscal year.

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