"How can I be sure my gift is safe?"

The Philadelphia Health & Education Corporation was created in October 1998 at the recommendation of the Attorney General of the Commonwealth of Pennsylvania. One month later, the Corporation was awarded all of the endowment moneys of the bankrupt Allegheny University of the Health Sciences and the Allegheny Health, Education and Research Foundation that had anything at all to do with education or research in the university setting. That award was made by Decree of the Orphans Court of Philadelphia County.

From that time (when it was called MCP Hahnemann University) to today (when it is called Drexel University College of Medicine), the actions of its Board of Trustees have been subject to the watchful eyes not only of the Attorney General and his Charitable Trust & Organization Section, but also of the Orphans Court. In the year 2001, the Administrative Judge of the Orphans Court held a hearing so that he could satisfy himself that Drexel was properly managing those charitable assets. That hearing followed a review of the books and records by the Attorney General’s Office. The College of Medicine passed both tests.

Another hearing before the Administrative Judge will soon be held, at which he will review the management of the College’s endowments through December 2002. If he accepts that accounting, as we expect, he will enter an Order formally approving Drexel’s management of the trust funds. But that will not end his oversight, or that of the Attorney General. Instead, under an agreement that the College has made with the Attorney General, the College will allow the Attorney General’s staff to have access to its books and records whenever they ask for it and will provide the Attorney General with detailed financial summaries of the endowments after the close of each fiscal year. In addition, pursuant to the original Decree of the Orphans Court the College is required to present to the Attorney General and the Court in 2004 another full accounting of how it has managed the endowments entrusted to it.

There are other reasons that contributors can be confident Drexel will manage the College’s trust funds with care. Unlike the situation in 1997 under AHERF, the College has a Board of Trustees that includes five representatives from the Commonwealth of Pennsylvania, and three from Tenet HealthSystems. Both the Commonwealth and Tenet provide millions of dollars each year to the College; and they take a very active role in watching the College’s finances. Donors might also like to know that Drexel University became the first major university in the country voluntarily to adopt the “best practices” that have been forced on for-profit corporations by the Sarbanes-Oxley Act of 2002. Senator Paul Sarbanes recently complimented Drexel for taking this significant step.

And finally, donors should realize that other organizations which have been skeptical of Drexel’s bona fides, have recently confirmed their confidence in Drexel. The MCP Hahnemann Alumni/ae Society – which was formed as a separate non-profit corporation – has recently changed its name and entered into an agreement by which Drexel will now manage its operations and funds. Similarly, the National Board for Women in Medicine – which this year will celebrate its fiftieth anniversary – has just this year agreed to let Drexel manage its operations, endowments, and donor lists. And in perhaps the largest vote of confidence, the Franklin Health Trust’s Board of Directors has decided to transfer to the College of Medicine its entire endowment of $40 million and to dissolve, being convinced merging its endowments with the College’s, under the administration of Drexel University, would be in the best interest of its donors and their beneficiaries. This transfer is being done with the approval of the Orphans Court.