About IUF
Why Is the Foundation Separate from IU?
The Foundation is a not-for-profit, 501(c)(3)corporation, separate from IU. About 80 percent of American public colleges and universities have separate foundations, and for good reasons:
- Confidentiality. By law, the Foundation is able to keep confidential gift records, wills, trust agreements, correspondence, and other highly personal documents related to gifts. Laws mandate that records and meetings of state institutions be open to the public.
- Return on investment. State statutes limit how state institutions can invest their funds. The Foundation, subject to different, but equally stringent, rules and regulations, can realize a significantly higher return on the endowment. In fact, IU contracts with the Foundation to manage a portion of its investments.
- Flexibility. Indiana University prepares budgets two years in advance and has limited discretionary funds. Gift funds add to the pool of discretionary funding. Gift funds can also be used in ways that state monies cannot, such as on-site faculty research in other countries.
