News Release

Tuesday, October 11, 2005

Contact: George Stinnett, CHKD (757) 668-7043 or George.Stinnett@chkd.org

THE KRESGE FOUNDATION AWARDS $1-MILLION CHALLENGE GRANT TO CHKD

Funds to help meet $34.5-million Children’s Campaign goal.

HAMPTON ROADS, Va.—Children’s Hospital of The King’s Daughters recently was awarded a $1-million challenge grant from The Kresge Foundation of Troy, Mich., to support the hospital’s on-going Children’s Campaign to raise $34.5 million in capital and endowment funds for important programs and building projects. The Children’s Campaign is entering the last year of a five-year effort to secure endowment support for CHKD’s child abuse and childhood cancer programs, nursing scholarships and patient care, and for capital support for the new outpatient surgery center recently opened in Newport News. More than $29 million has been pledged to date toward the overall campaign goal. The Kresge challenge grant requires CHKD to raise the remaining $5.4 million in cash and pledges before December 31, 2006, in order for the Foundation gift to be made. “We’re asking our friends in the community to help us ensure the future of all the important programs that make Children’s Hospital so important to the children of Hampton Roads,” said Jim Dahling, CHKD Health System president and CEO. “And the philanthropic outpouring has been dramatic. This wonderful Kresge gift will help ensure the success of this important effort. But the months ahead must yield an even greater philanthropic commitment from our community. “Now more than ever, the gifts of local individuals and businesses toward our endowment fund and capital initiatives are needed to help us demonstrate to The Kresge Foundation their investment in CHKD and our community is well-founded. Only then will this $1-million gift become a reality.” In announcing the award, Foundation president and CEO John E. Marshall III said: “A capital campaign offers a strategic opportunity for an organization to connect with its stakeholders and reach out to new donors, volunteers, participants and the general community. CHKD presented a compelling strategy to use a Kresge challenge grant to help leverage support in that way.” The grant to CHKD is the second largest ever made to a Virginia institution and was one of 154 grants made during the year, through September, totaling $89,734, 863. It also represents the second such challenge grant awarded to CHKD by the Foundation, the other being a $400,000 grant in 1995, which helped complete the hospital’s major expansion and renovation. “In this cycle of grant making, our Trustees were pleased to support a range of organizations reflecting almost the entire breadth of the nonprofit sector,” Marshall added. “This diverse group is responding to the new challenges presented by their communities or sustaining activities that have demonstrated their effectiveness.” Annually, the Foundation makes grants to institutions operating in the areas of higher education, health and long-term care, arts and humanities, human services, science and the environment and public affairs. Recipients have raised initial funds toward their respective projects or campaigns before requesting Foundation assistance. Grants are then made on a challenge basis, requiring the raising of the remaining funds, thereby insuring completion of the efforts. The Kresge Foundation was established in 1924 and is an independent, private foundation created by the personal gifts of Sebastian S. Kresge, founder of the retailer Kmart and its predecessor, Kresge’s variety stores. The Foundation is not affiliated with any corporation or organization. “Kresge’s challenge makes each and every gift we receive to the Children’s Campaign between now and December 31, 2006, more important than ever,” Dahling said. “CHKD has been given a tremendous challenge and with the community’s help, we will turn it into a great opportunity.” Children's Hospital of The King's Daughters is the only facility of its kind in Virginia, serving the medical and surgical needs of children throughout greater Hampton Roads, the Eastern Shore of Virginia and northeastern North Carolina. The not-for-profit hospital was founded in 1961 and provides care to approximately 160,000 children each year as inpatients and outpatients, addressing routine and complex illnesses, injuries and chronic conditions. The CHKD Health System operates primary care pediatric practices, surgical practices, multi-service Health Centers and satellite offices throughout its service region.