2018 Annual Report

Milt_Stewart_sig.jpg
Milt Stewart
IUF Board Vice Chairman
dan_smith_sig.jpg
Dan Smith
IUF President

Campaign Update

230,265INDIVIDUAL CAMPAIGN DONORS

12,202ORGANIZATIONAL CAMPAIGN DONORS

967,773TOTAL GIFTS TO THE CAMPAIGN

Bicentennial campaign gift allocation

CategoryPercent
Faculty Support and Research56.32%
Student Scholarships and Financial Aid17.79%
Academic and  Student Support15.66%
Facilities9.41%
Other Mission-Related Initiatives0.82%

Campaign gifts have supported a wide range of IU causes, including faculty and research, students and academic programs, and unrestricted funds, which allow IU to address unforeseen areas of need and opportunity.

Financial Highlights as Seen Through Our Business Model (Fiscal Year 2018)

Well House Society

The IU Foundation business model includes five key steps that advance our mission of maximizing private support for IU: engage donors, raise funds, receive funds, invest funds, and utilize funds.

business-model-01.png

1. ENGAGE DONORS

The IU Foundation builds and stewards lifelong relationships with current and potential supporters through a wide variety of outreach opportunities.

18,808NEW DONORS

10M+MARKETING REACH

Through these initiatives and more, we inspire current and potential supporters to connect their personal and philanthropic values with the mission of IU.

business-model-02.png

2. RAISE FUNDS

Private support for IU comes from all over the world and includes giving from individuals as well as corporations, foundations, and other organizations.

$135,168,492TOTAL VALUE OF PLANNED GIFTS DOCUMENTED

327TOTAL NUMBER OF PLANNED GIFTS DOCUMENTED

$5K to $10MRANGE OF GIFT VALUE

$41,033,576 VALUE OF REALIZED GIFTS

business-model-03.png

3. RECEIVE FUNDS

Donors can choose to support IU in a number of ways beyond cash gifts. From pledges to real estate to gifts-in-kind and more, donors select gift vehicles that suit their specific needs and goals.

An IU scholarship helped this student overcome adolescent hardship—and earn two IU degrees.
business-model-04.png

4. INVEST FUNDS

By taking a disciplined, consistent, and diversified approach to investing funds, the IU Foundation generates steady, long-term funding for the university’s people, places, and programs.

Endowment performance over time

IUF has built a broadly diversified portfolio with a strong equity (ownership) bias, striking an optimal balance of providing long-term growth with acceptable levels of volatility. This chart illustrates the growth of an endowed scholarship from its initial funding of $100,000 in 1989 along with the cumulative value of earnings distributed to support scholarships. This endowed scholarship would have paid out more than $229,000 by 2018.

Pooled long-term investment growth

The pooled long-term investment portfolio holds nearly $2.3 billion in assets. The current size of the portfolio reflects the combination of generous gifts and effective investment strategy. While each is a source of pride, the focus is on growing the asset base, which translates into a growing level of support to IU students, faculty and programs.


Investment performance

IUF’s investment performance has exceeded the long-term objective of maintaining the purchasing power over time. Since inception (1989), the portfolio has posted an average annual return of 8.9%, consistently surpassing both internal goals and those of most peer institutions.


Pooled long-term investment asset allocation

Cash & Cash Equivalents0.1%
Domestic Equity22.0%
International Equity13.2%
Fixed Income6.2%
Alternative Investments36.3%
Real Assets13.6%
Other8.6%

Beyond the benefits of proper diversification, asset allocation decisions are designed to emphasize the most attractive opportunities and to provide exposure to various investments that perform well in different economic environments.

business-model-05.png

5. UTILIZE FUNDS

In 2018, The Chronicle of Philanthropy recognized Indiana University as one of America’s top 50 favorite nonprofits. This is undoubtedly due, in part, to the breadth of ways donors can make a philanthropic impact through IU.

Private support is directed as donors wish, benefitting students, faculty, facilities, and areas of critical need. But the story doesn’t end once funds are distributed; it continues in the innovations, student successes, and global impacts the gifts make possible.

You can see that impact in the 171 inventions and 141 patents filed by IU researchers in fiscal year 2018 alone, and in national rankings that name IU schools and programs No. 1 for music, public affairs, business and more. The benefits of private support are truly profound.

Giving impact

CategoryPercent
Faculty Support and Research59.04%
Student Scholarships and Financial Aid17.52%
Academic and Student Support16.79%
Facilities6.61%
Other Mission-Related Initiatives0.04%

With nearly 60% of philanthropic gifts directed to faculty support and research, it’s clear that advancing innovation and teaching excellence is one of the greatest priorities for IU donors.


Our Heartfelt Thanks

Thank you for reviewing the IU Foundation’s annual financial highlights.

Private support makes so much possible at Indiana University: the dream of an IU education, life-changing research and discovery, and a near 200-year tradition of serving the community near and far. From IU’s humble beginning to its current status as a multi-campus, internationally renowned university, the commitment of its alumni and friends has been paramount. If the past year is any indication, the future of IU looks bright.