Annual Report

2019 Annual Report

Indiana University Foundation

At the IU Foundation, we often talk about the life story of Indiana University, and without a doubt, this has been another special year for IU. As we approach the university’s bicentennial, we reflect on a proud history. IU’s is a story of creating a lifetime of opportunities for students and of research and discovery that has improved countless lives throughout our state, nation, and world. And this story is still being written on all campuses, as IU accelerates into a third century of limitless possibilities.

Undoubtedly, much of this is possible thanks to private giving. In fact, in 2019, the Chronicle of Philanthropy recognized IU as one of America’s top 50 favorite nonprofits, ranking IU fifth among public universities.

This generosity of IU’s alumni and friends provides essential support that allows the university to meet the needs of students and pursue solutions to the greatest challenges facing society today. The IU Foundation serves as a conduit and steward of the private funding that is critical to the university’s mission and vision of building a better tomorrow for all.

We remain deeply grateful to all who invest in IU and the transformative discoveries and experiences seen on all campuses every day. Together, the IU Foundation, Indiana University, and our partners will continue to change lives and inspire progress through higher education.

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Milton R. Stewart
IUF Board Vice Chairman
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Daniel C. Smith
IUF President and CEO

Campaign Update

287,702INDIVIDUAL CAMPAIGN DONORS

13,354ORGANIZATIONAL CAMPAIGN DONORS

1,096,875TOTAL GIFTS TO THE CAMPAIGN

18,524IU faculty, staff, and retiree donors

Bicentennial campaign gift allocation

CategoryPercent
CrimsonMultiple-Use Funds34.2%
CreamFaculty Support and Research29.5%
BlueAcademic Support13.4%
MidnightStudent Scholarship and Financial Aid12.9%
PurpleFacilities, Operation, and Maintenance9.1%
Unrestricted0.9%

Campaign gifts support a wide range of IU causes. These causes include faculty support and research; student and academic support; and facilities, operation, and maintenance. In addition, many donors wish 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 2019 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.

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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.

17,557NEW 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 2019, donors gave more than $447 million to IU. This total includes cash gifts, future pledge payments, and revocable and irrevocable planned gifts.

$70.5MTOTAL VALUE OF PLANNED GIFTS DOCUMENTED

212Total Number of Planned Gifts Documented

$1K to $10MRANGE OF GIFT VALUE

$25.4MVALUE 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.

Each year, thousands of IU students, alumni, faculty, and friends give thanks to Indiana University for the impact it has made on their lives. It’s our honor to pass along those thanks to the supporters who make it all possible.
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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 1989, along with the cumulative value of earnings distributed to support scholarships. This endowed scholarship would have paid out nearly $237,000 by 2019, while the corpus would have nearly doubled in value.


Pooled long-term investment growth

The pooled long-term investment portfolio holds more than $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 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 8.8%, consistently surpassing internal goals and comparing quite favorably versus the performance of peer institutions.


Pooled long-term asset allocation

CategoryPercentage
Public Equity41.8%
Private Equity & Venture Capital21.8%
Absolute Return Strategies16.8%
Real Assets13.5%
Fixed Income6.1%

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.

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5. UTILIZE FUNDS

In 2019, the Chronicle of Philanthropy recognized Indiana University as one of America’s top 50 favorite nonprofits, ranking IU fifth among public universities. 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, 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 hundreds of inventions and patents filed by IU researchers; in the hundreds of thousands of students who have earned a world-class IU degree; and in national rankings that consistently name IU schools and programs No. 1 for music, public affairs, business, and more. The benefits of private support are truly profound.

Use of funds

CategoryPercent
Student Scholarship and Financial Aid31.5%
Academic Support28.3%
Faculty Support and Research24.3%
Facilities, Operation, and Maintenance15.9%

*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 2019, with more than 84% 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.

Private support makes so much possible at Indiana University: the dream of an IU education, life-changing research and discovery, and the longstanding tradition of serving communities locally and around the globe. 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.

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