2018 Annual Report

2018
Indiana university Foundation
Annual Report

Much of the extraordinary impact that Indiana University has had – and continues to have – on our state, nation, and regions across the globe is the result of generous private support. On all of our campuses, ground-breaking research addresses society’s most pressing challenges, and life-changing experiences shape the next generation of community and industry leaders. And thanks to the generosity of alumni and friends, Indiana University will continue to be a presence for good for decades to come.

At the IU Foundation, we are committed to securing private funding in support of Indiana University’s mission and stewarding the investments of our supporters. As we reflect on 2018, we have much to celebrate, including a fifth-consecutive record fundraising year. And we are reminded every day that each dollar carries with it a story of those who give and helps to write the next chapter in the lives of those who are positively impacted.

We remain deeply grateful to all who invest in the mission and future of Indiana University, as ours is a charge to build a better tomorrow, for all, for now and forever.

Milt Stewart

IUF Board Vice Chairman

Dan Smith

IUF President

Campaign Update

Cumulative giving to the Bicentennial campaign

For All: The Indiana University Bicentennial Campaign is Indiana University’s $3 billion effort to lay a foundation for its next century and beyond. By focusing on four campaign priorities—enabling student success and support; creating the next generation of global leaders; discovering ideas and innovations that change the way we live; and creating a healthier state, nation, and world—we will set the stage for the IU of tomorrow.

As of June 30, 2018, the campaign has raised $2.5 billion.

230,265INDIVIDUAL CAMPAIGN DONORS

12,202ORGANIZATIONAL CAMPAIGN DONORS

967,773TOTAL GIFTS TO THE CAMPAIGN

Bicentennial campaign gift allocation

Category	Percent
Faculty Support and Research	56.32%
Student Scholarships and Financial Aid	17.79%
Academic and Student Support	15.66%
Facilities	9.41%
Other Mission-Related Initiatives	0.82%

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)

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.

1. ENGAGE DONORS

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

Sample of engagement activities

A year-long calendar of print, digital, and social media communications, including IU Day, a 24-hour worldwide celebration of IU, and Imagine magazine, an annual publication highlighting stories around IU.
Women’s Philanthropy, a program that brings women together to give back to IU
Parent Engagement, an effort to engage IU parents in the life and mission of the university
IU Student Foundation, a student organization that shapes the philanthropic leaders of tomorrow
Recognition societies, which honor generous donors for their commitment to and support of IU

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.

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.

Giving snapshot

111,791

TOTAL DONORS

163,231

TOTAL NUMBER
OF GIFTS RAISED

$550M

TOTAL VALUE
OF GIFTS RAISED

$5 to $19M

RANGE OF
GIFT VALUE

Giving by location

In 2018, most gifts to IU were made by Indiana residents, but donors from all 50 states and nearly 60 countries around the world also gave significant support. This strong global showing is further indication that our mission resonates with donors no matter where they reside.

Sources of giving

Category	Percent
Alumni	28.58%
Friends	11.83%
Corporations	20.61%
Foundations	26.58%
Other	12.40%

This variety of giving sources illustrates the broad appeal of IU as a place for philanthropic investment. From individuals to corporations, donors of all kinds recognized IU as a place to effect change in 2018.

New endowments

Endowed gifts leave legacies that bolster IU’s mission in perpetuity. By funding research, scholarships and graduate fellowships, faculty chairs and professorships, and other academic programs, endowments preserve IU’s commitment to providing a world-class education for generations come.

598

TOTAL NEW ENDOWMENTS

416SCHOLARSHIPS & GRADUATE FELLOWSHIPS

48CHAIRS & PROFESSORSHIPS

134OTHER ENDOWMENTS

A fellowship gave this IU grad and former refugee an opportunity to fight for others.

Planned giving by the numbers

The benefits of planned gifts are twofold: Supporters can leave a lasting legacy for their favorite IU cause, and often receive special tax benefits in the process.

$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

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.

Gifts received by type

Type	Percent
Planned Gifts and Pledges	38.8%
Non-governmental grants	36.9%
Cash	17.1%
Gifts in Kind	4.6%
Securities	2.4%
Real Estate	0.2%

Demonstrating our donors’ strong commitment to IU and long-term philanthropic goals, planned gifts and pledges accounted for nearly 40% of total gifts received.

An IU scholarship helped this student overcome adolescent hardship—and earn two IU degrees.

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 Equivalents	0.1%
Domestic Equity	22.0%
International Equity	13.2%
Fixed Income	6.2%
Alternative Investments	36.3%
Real Assets	13.6%
Other	8.6%

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.

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.

Innovative IU research is helping in the early detection of concussions.

Funds made available to IU

Private support is distributed throughout IU per donors’ wishes for the benefit of students, faculty, and other campus recipients. In the fiscal year 2018, this support totaled $137,881,651.

$156,769,562Fiscal year 2017

$137,881,651Fiscal year 2018

Giving impact

Category	Percent
Faculty Support and Research	59.04%
Student Scholarships and Financial Aid	17.52%
Academic and Student Support	16.79%
Facilities	6.61%
Other Mission-Related Initiatives	0.04%

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.