Annual Report

2022 Annual Report

Indiana University Foundation

Philanthropy is an expression of love for humanity which takes many forms. This annual report chronicles the work of the Indiana University Foundation in helping connect expressions of that love for humanity to the mission, needs, and priorities of Indiana University.

Our donors dream big. They imagine a world where students can explore their full potential without being distressed about how they will pay for college. They envision cures to all forms of illness. They believe in IU’s ability to help shape a world that is equitable, peaceful, and sustainable. And they trust the IUF to ensure that IU is a responsible steward of their investments. We are both honored and inspired by their faith in IU and their expressions of love for humanity.

This annual report outlines the actions we are taking to sustain IU’s philanthropic legacy. Since our last report, we conducted a comprehensive review of lessons learned from our successful eight-year For All: The Indiana University Bicentennial Campaign, realigned our development program to promote enhanced collaboration, redesigned the online engagement and giving experience, made strides toward even greater diversity, equity, and inclusion, and made significant progress on our five-year plan to achieve a positive step change in fund raising for IU. These are just a few highlights of the work outlined in the pages that follow.

In closing, please accept our gratitude for your interest in the work and program of the IUF. Much has been accomplished and much more remains to be done to sustain IU’s philanthropic legacy.

Ever true to IU,

Kay R. Booth
IUF Board Vice Chair

J Thomas Forbes
IUF President and CEO

Fiscal Year 2022 Financial Highlights

In the fall of 2022, Indiana University President Pamela Whitten united the university under IU 2030, a strategic plan framework that will lead IU into its third century. The goals of the plan are simple: support student success and opportunity; engage in transformative research and creativity; and provide service to our state and beyond.

The framework we have established, a bold vision for our third century, reflects our determination to become the preeminent public university in America.
Pamela Whitten, IU President

In support of this plan and our mission to maximize private support for IU, the IU Foundation business model includes five key steps: engage alumni and friends, raise funds, receive funds, invest funds, and utilize funds. All of the following data represent totals from July 1, 2021, through June 30, 2022.

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.

Snapshot of engagement activities

A year-long calendar of print, digital, and social media communications, including Imagine magazine, an annual publication highlighting stories around IU
Emails, care calls, letters, videos, newsletters, reports, and online features to communicate gratitude to donors and share impact stories
Groundbreaking giving circles—such as Women’s Philanthropy at IU, the Black Philanthropy Circle, and the Queer Philanthropy Circle—which unite supporters with shared passions to enrich the IU experience and ensure that IU is a place for all students to thrive
Parent & Family Giving, 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, and Jagathon, a student-led event that raises money for Riley Children’s Hospital
Recognition societies, which honor generous donors for their commitment to and support of IU

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

14,225NEW DONORS

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 2022, donors gave more than $766 million to IU. This total includes cash gifts, future pledge payments, and revocable and irrevocable planned gifts.

Giving snapshot

100,732

TOTAL DONORS

163,816

TOTAL NUMBER
OF GIFTS RAISED

$766.3M

TOTAL VALUE
OF GIFTS RAISED*

$1 to $416M

RANGE OF
GIFT VALUE

Giving by location

In fiscal year 2022, most gifts to IU were made by Indiana residents, but donors from all 50 states and more than 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.

Not shown on map: donors from Washington, D.C. (232), U.S. Armed Forces locations (12), Guam, Puerto Rico, Virgin Islands (11), and unspecified (8).

Not shown on map: donors from Hong Kong (11), and unspecified locations (119).

Sources of giving

	Individuals	Percent
	Alumni	17.7%
	Friends	5.4%
	Organizations	Percent
	Corporations	7.6%
	Foundations	12.3%
	Other*	56.9%

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 2022.

*Includes $416M gift from IU Health.

New endowments

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

199

TOTAL NEW ENDOWMENTS

152SCHOLARSHIPS & GRADUATE FELLOWSHIPS

13CHAIRS & PROFESSORSHIPS

34OTHER ENDOWMENTS

"As a history major, it was invaluable to visit places directly linked to events that shaped the modern world.” IU Kokomo alumna Hannah Bourne shares how her travels abroad were made possible by the generosity of IU donors.

Planned giving by the numbers

Many donors support the causes that mean the most to them with a gift through their will or trust, or other type of future arrangement. These gifts, known as planned gifts, are usually, though not always, fulfilled after death. Although most planned gifts come from wills or living trusts, other options include life insurance, retirement assets, real estate, and securities. Planned gifts can provide a lasting legacy for IU while yielding certain financial and federal tax advantages for donors. Below are the fiscal year 2022 planned giving results.

$74.0MTOTAL VALUE OF PLANNED GIFTS DOCUMENTED

238Total Number of Planned Gifts Documented

$1K to $5.0MRANGE OF GIFT VALUE

$33.2MVALUE OF REALIZED GIFTS

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.

Gifts received by type

	Type	Percent
	Cash*	64.0%
	Planned Gifts and Pledges	20.3%
	Non Governmental Grants	9.7%
	Real and Personal Property	4.0%
	Securities	1.9%

Demonstrating our donors’ strong commitment to IU and long-term philanthropic goals, planned gifts and pledges accounted for more than 20% of total gifts received.

*Includes $416M gift from IU Health.

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.

“When I’m volunteering, whether at Hilltop [Gardens] or anywhere, I feel like I’m not just giving but receiving something in return.” IU Bloomington student Thin Sein shares how Hilltop Gardens—made possible in part by donor support—enriches the community.

Endowment performance over time

The IU Foundation has built a broadly diversified portfolio with a strong equity 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 $276,000 by 2022, while the corpus would have grown to more than $247,000.

Growth of an Endowed Scholarship

Pooled long-term investment growth

The pooled long-term investment portfolio holds more than $3.3 billion in assets. The current size of the portfolio reflects the combination of generous gifts and effective investment strategy. Both are sources of pride and crucial to our success in 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 9.0%, consistently surpassing internal goals and comparing quite favorably versus the performance of peer institutions.

Pooled long-term asset allocation

	Category	Percent
	Private Equity & Venture Capital	33.1%
	Public Equity	32.7%
	Real Assets	14.5%
	Absolute Return Strategies	12.4%
	Fixed Income & Cash	7.3%

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.

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 760,200+ 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

	Category	Percent
	Student Scholarship and Financial Aid	35.5%
	Faculty Support and Research	28.3%
	Academic Support	28.8%
	Facilities, Operation, and Maintenance	7.3%

**This chart excludes private non-governmental grants used primarily for research and instruction. It also excludes the one-time pandemic-related funding of $150M.

Funds utilized each year are made available from the earnings on donor-restricted endowments combined with donor annual giving. During fiscal year 2022, with nearly 92% 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.

IU PhD student Megan Diekhoff explains how her research in childhood speech development may help improve treatment for children with speech difficulties. Donor generosity helps grow departments and support the students and faculty who advance life-changing research just like this.

Our Heartfelt Thanks

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

Through centuries of change, one thing has remained a constant for IU: The support and generosity of our donors. Their unwavering commitment makes it possible for the university to set—and achieve—remarkable ambitions for the future on our nine campuses and beyond. From students earning a life-changing education to researchers pursuing solutions to the world’s greatest problems, everything we do at IU begins with the trust and support of our donors.

We couldn’t be more grateful.

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