Annual Report

2020 Annual Report

Indiana University Foundation

This has been an historic year on many fronts. Indiana University celebrated its 200th year; the IU Foundation completed For All: The Indiana University Bicentennial Campaign with record-breaking success—raising nearly $3.9 billion; and our state, nation, and world faced vast challenges from the COVID-19 pandemic, racial and political tensions, and economic uncertainty. Despite this unprecedented upheaval, one thing remains clear: The dedication and support of IU’s alumni and friends continue to be unwavering.

From the establishment of the Racial Justice Research Fund and the IU Equity Fund to address critical racial equity and justice issues, to launching the university-wide Student Emergency Relief Campaign to combat the COVID-19 crisis, Indiana University has persevered in the face of adversity. More than ever, we remain steadfast to the university’s mission and vision to ensure a brighter future for all.

As we look forward to what is to come in IU’s third century, we remain grateful to all who are dedicated to investing in our shared future. The tremendous impact of private giving has allowed the university to address our community’s most pressing needs, and provide meaningful support and opportunities for our students, faculty, and staff through these uncertain times. Together, we will make certain that Indiana University continues to serve as a beacon of hope and resilience—now, and always.

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Kay R. Booth
IUF Board Vice Chair
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Daniel C. Smith
IUF President and CEO

Campaign Update

308,168INDIVIDUAL CAMPAIGN DONORS

14,380ORGANIZATIONAL CAMPAIGN DONORS

1,282,095TOTAL GIFTS TO THE CAMPAIGN

20,120IU faculty, staff, and retiree donors

Bicentennial campaign gift allocation

CategoryPercent
CrimsonAcademic Program Support39.4%
CreamFaculty Support and Research27.4%
BlueStudent Scholarship and Financial Aid15.0%
MidnightStudent Program Support9.1%
PurpleFacilities, Operation, and Maintenance8.1%
Unrestricted1.0%

Campaign gifts supported a wide range of IU causes, including faculty support and research; student and academic support; and facilities, operation, and maintenance. In addition, many donors chose to establish multiple-use funds that support more than one of the above areas. These funds allow for flexibility to support multiple restricted purposes over time to meet the greatest need. Unrestricted funds allow IU to address unforeseen areas of need and opportunity.

Fiscal Year 2020 Financial Highlights as Seen Through Our Business Model

Well House Society

The IU Foundation business model includes five key steps that advance our mission of maximizing private support for IU: engage alumni and friends, raise funds, receive funds, invest funds, and utilize funds. All of the following data represent totals from July 1, 2019, through June 30, 2020.

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1. ENGAGE ALUMNI AND FRIENDS

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

14,102NEW DONORS

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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. During fiscal year 2020, donors gave nearly $641 million to IU. This total includes cash gifts, future pledge payments, and revocable and irrevocable planned gifts.

$98.5MTOTAL VALUE OF PLANNED GIFTS DOCUMENTED

195Total Number of Planned Gifts Documented

$1K to $12MRANGE OF GIFT VALUE

$31.2MVALUE OF REALIZED GIFTS

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3. RECEIVE FUNDS

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

While donors’ gifts to IU may be counted in dollars and cents, they count for much, much more. The thank-you notes in this video—written by actual IU students—show you just how much.
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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

The IU Foundation 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 1990, along with the cumulative value of earnings distributed to support scholarships. This endowed scholarship would have paid out nearly $257,000 by 2020, while the corpus would have nearly doubled.


Pooled long-term investment growth

The pooled long-term investment portfolio holds more than $2.2 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 increased support to IU students, faculty, and programs.


Investment performance

The IU Foundation’s investment performance has exceeded the long-term objective of maintaining purchasing power over time. Since its inception (1989), the portfolio has posted an average annual return of 8.4%, consistently surpassing internal goals and comparing quite favorably versus the performance of peer institutions.


Pooled long-term asset allocation

CategoryPercentage
Public Equity41.1%
Private Equity & Venture Capital25.7%
Absolute Return Strategies12.5%
Real Assets11.8%
Fixed Income8.9%

Beyond the risk control 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.

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5. UTILIZE FUNDS

Private support to Indiana University is directed as donors wish, benefitting students, faculty, research, 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 those impacts in the lives and work of our 725,000+ alumni; in top national rankings for music, public affairs, business, and more; and in the output of IU’s research and creative activities—from breakthrough treatments to innovative technology to life-altering art. The benefits of private support are truly profound.

Use of funds

CategoryPercent
Student Scholarship and Financial Aid33.1%
Faculty Support and Research24.8%
Academic Support22.9%
Facilities, Operation, and Maintenance19.2%

*The chart above excludes private non-governmental grants used primarily for research and instruction.

Funds utilized each year are made available from the earnings on donor-restricted endowments combined with donor annual giving. During fiscal year 2020, with nearly 81% of the funds made available directed to student, faculty, research, and academic support, it is clear that pursuing excellence in world-class education, research, and scholarship is the greatest priority for IU donors.


Our Heartfelt Thanks

Thank you for reviewing the IU Foundation’s annual report.

For 200 years, the generosity of the IU family has been a sustaining force. In this year of global hardship, we feel that sense of gratitude keenly. Our generous donors have enabled our campuses to continue to flourish in the face of adversity, our students to remain “never daunted” in their pursuit of an IU education, and our faculty and staff to persevere in their efforts to conduct life-changing research.

As we mark the successful close of For All: The Indiana University Bicentennial Campaign, we embark on our third century poised to continue to change the world for the better. We couldn’t be more grateful.

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