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Celebrating 50 years of philanthropy

The University of Arizona Foundation Annual Report 2008

Contents

Celebrating 50 Years of Philanthropy 3

Summary of Gifts 2007-2008 4

Endowments 4

Academic Divisions 8

Capital Improvements 10

Alumni Giving 12

Research 14

Unrestricted Gifts 16

2007-08 Giving Totals 18

Endowment Performance 20

ABOUT THE COVER: In 1941 the National Park Service commissioned noted photographer Ansel Adams to create a photo

mural for the Department of the Interior Building in Washington, D.C. Adams captured 226 photographs of America’s

beautiful landscape, including the cover shot taken at Grand Canyon National Park, before the project was halted because

of World War II. In 1975, Adams was the founding donor of the UA’s Center for Creative Photography.

The Grand Canyon from the South Rim, Arizona, 1942; Photograph by Ansel Adams; Collection Center for Creative Photography,

University of Arizona - ©2008 The Ansel Adams Publishing Rights Trust.

This year, as we celebrate the 50th anniversary of The University of Arizona Foundation and its partnership

with The University of Arizona, we take a journey down memory lane, looking to our past to inspire guidance

for our future.

The idea for the UA Foundation took flight in 1957 when then-UA President Richard A. Harvill boarded a

plane to Chicago. During the course of that trip, Harvill visited with Tucsonan Tom Freeman who was on his

way to his alma mater’s foundation board meeting. The conversation stimulated instant inspiration.

In 1958, the Foundation was incorporated. Since then it has supported the University during bright skies and

times of turbulence, changing routes, as needed, to find smooth air once again. It is thanks to the support

of private giving from donors like you that many of those changes have been made possible, allowing the

University to continue gaining momentum as a leader in higher education.

Since 1958, dedicated supporters have raised more than $2 billion for the University, playing a pivotal role in

its evolution. Today, private support remains essential to the transformational changes that need to happen to

sustain UA’s status as a world-class institution.

As we embark on a new course in UA history, we must push the boundaries of higher learning to benefit

our communities. We are not exempt from our nation’s current economic state. However, it is by providing

funding for continued academic opportunity at the University that we can propel our state’s ability to soar in

the global knowledge economy of the 21st century.

Now is the time to act boldly. Together we can positively impact our University, our state and our nation by

providing for the students of today and the leaders of tomorrow. The future depends on it.

Sincerely,

Robert N. Shelton James H. Moore, Jr.

President President&CEO

TheUniversityofArizona TheUniversityofArizonaFoundation

A Message from the Presidents

1

Celebrating 50 Years of Philanthropy

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It’s no wonder why nearly five million people each year visit Grand Canyon National Park. Its magnificent

walls of rock contain three of the four eras of geological time, several major ecosystems, the oldest human

artifacts dated at nearly 12,000 years old and one of the finest examples of arid-land erosion in the world.

Formed over millions of years, the canyon is continually changing from the flow of the Colorado River.

Over the last 123 years, The University of Arizona has undertaken an evolution equally as grand. From the

porch of Old Main, one can see dozens of buildings that document the past and point to the promise of the

future. These structures exist thanks to the river of ideas that have flowed from hundreds of thousands of

alumni, students, faculty, staff and community leaders.

2008 marks the 50th anniversary of the UA Foundation. Since 1958, generous alumni, friends, corporations

and foundations throughout Arizona, the nation and the world have committed more than $2 billion to the

University. The stories in this annual report illuminate the power of that philanthropy.

Today these private investments are even more critical to reinventing the modern land-grant university to

meet the needs of a 21st Century global society. The true value of this support is immeasurable when you

consider the millions of people around the world who benefit directly or indirectly from the innovations and

discoveries being made on campus every day.

Preserving the long-term vitality of the UA is the number one priority of the UAF Board of Directors. We

take our fiduciary responsibility seriously. That’s why we adhere to a prudent investment strategy designed to

provide enduring financial support that helps advance the University for generations to come.

Though we face uncertain times today, your continued support provides us the stability we need for a bright

future. On behalf of our entire Board, thank you for helping the UA achieve its aspirations.

Peter E. Calihan, Chairman

UA Foundation Board of Directors

A Message from the Board Chair

Summary of Gifts 2007-08

4

Corporations

$6,569,548

Alumni

$8,197,265

Other

$5,904,141

Other

$22,910

Fundraising Consortia

$442,106

Foundations

$9,904,311

EndowmEnts 2007-08

Parents

$3,572

INDIVIDUALS

ORGANIZATIONS

$31,043,853

Dr. GuptaDr. Powers

Figures are from the Council for Aid to Education’s Voluntary Support of Education survey, submitted September 2008.

1957 Flying to Chicago, UA President Richard A. Harvill meets

Tucsonan Tom Freeman, who’s on the way to his alma mater’s

foundation board meeting. The idea of a foundation to benefit

the UA is planted.

1958The University of Arizona Foundation incorporates. Officers

are Roy Wayland, president; George Chambers, vice president;

Martin Gentry, second vice president; Frank Votaw, secretary/

treasurer; and Norman Hull, executive director. Gentry and

Votaw will serve for 18 years.

1960UA President Harvill recruits Samuel C. McMillan as the

University’s first vice president for planning and development.

By end of 1961, Foundation treasury holds $12,838.48.

1962Under a federal program encouraging charities to participate

in home building, the Foundation aids the initial development

of Green Valley.

1963 Merlin K. DuVal becomes first UA College of Medicine dean.

Arizona Daily Star publisher Bill Mathews heads the Found-

ers of Arizona Medical Education (FAME) Campaign, the

University’s first campaign of significance. The goal was to

raise $3.1 million and win federal matching funds for a medical

college building.

Brown Family Foundation inspires innovation in

engineering, business and science

The Thomas R. Brown Family Foundation donated $6.9 million

to endow three UA faculty chairs during fiscal year 2008. Gifts

of $2 million went to both the College of Engineering and the

Eller College of Management, while $2.5 million is supporting

integrative science.

All three gifts are intended to fund faculty dedicated to merging

technology with management principles, a concept inspired

by the beliefs of the late Tom Brown, founder of Burr-Brown

Corporation, since acquired by Texas Instruments. Each of the

chairs is following through on that mission. The initiatives of

the Brown family are carried out through a partnership with the

Community Foundation of Southern Arizona.

Within the Eller College, Professor Amar Gupta has been

instrumental in developing a dual degree program combining

an MBA with a master’s degree from the College of Engineering,

College of Science or College of Optical Sciences.

Linda Powers, a professor of Electrical and Computer

Engineering at the College of Engineering, is fusing her study of

bioengineering with economic development through research

that will promote technology-based business development.

Finally, Peter Smith, UA senior research scientist and principal

investigator of NASA’s Phoenix Mars Mission, has made out-of-

this-world technological advances to explore our solar system.

Since July 1, 2006, donors have funded an additional 16

endowed faculty chairs for a total of 78 positions at The

University of Arizona.

5

Historical Timeline

Harvill

DuVal

1967 UA College of Medicine

In 1967, the College of Medicine opened the Basic Sciences

Building to 32 students. Construction on the grounds of the

one-time polo field was funded by the private $3 million FAME

Campaign and a $4.3 million federal matching grant. From

this auspicious beginning, 10 Centers of Excellence have been

created, including the Arizona Cancer Center, Steele Children’s

Research Center, the Arizona Arthritis Center, the Arizona

Respiratory Center, the Valley Fever Center of Excellence, the

Arizona Emergency Medicine Research Center and the Hispanic

Center of Excellence.

In 2007, the 40th anniversary of the UA College of

Medicine, The Virginia G. Piper Trust demonstrated its

commitment to the success of the college’s expansion to Phoenix

by making a gift of $5 million to benefit the Phoenix campus.

1965Leicester H. Sherrill joins the Foundation board and plays a key

role in completing the FAME Campaign.

1966Recession causes Foundation to transfer Green Valley develop-

ment project to the Federal Housing Authority after receiving

about $80,000 from the venture.

1968The Foundation organizes six Arizona banks to loan $2.7 mil-

lion to build Optical Sciences Center. A five-year, $5.25-million

U.S. Air Force award to UA supports research and mortgage

amortization. Foundation assets surpass $1 million.

6

Director Jory Hancock with

dance students Michael Gross

(clockwise from left), Nick Torres,

Ashley Bowman, Addie Hobbler

and Stacey Harris.

Phoenix campus

Stevie Eller perpetuates UA dance through endowed chair

In fiscal year 2008, Stevie Eller funded the first endowed chair for

the UA School of Dance, one of the top programs in the country. Its

first recipient is Director of Dance Jory Hancock. The endowment

will permanently support program needs and faculty recruitment

efforts.

Stevie, who graduated from the UA in 1952 with a bachelor’s

degree in education, was a member of the UA dance club, Orchesis,

as an undergraduate. She received an honorary doctorate from the

UA in 1999, is a recipient of the University’s Centennial Award

and Distinguished Citizen Award, and is a board member emerita

of the UA Foundation. Her husband, Karl, graduated from the UA

business school, now named in his honor.

The couple has long supported the University, particularly

by giving to the School of Dance and to the Eller College of

Management. The architecturally innovative Stevie Eller Dance

Theatre celebrated its fifth year of performances in 2008.

7

EndowmEnts cont inued

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Mel and Enid Zuckerman promote healthy living with College of Public Health endowments

For Mel and Enid Zuckerman, inspiring people to live well is a lifestyle that they embrace wholeheartedly. As

owners of Canyon Ranch resorts and health spas, they not only promote healthy living to guests of the Ranch,

but also reach out to the community at large through generous gifts to the UA.

The couple gave more than $5 million to perpetuate the Mel and Enid Zuckerman College of Public Health’s

development as a premier center of excellence at the University, with a focus on innovation, enterprise and

distinction. The gift was an advance payment on a past pledge of $10 million.

In addition, the endowment will support the Canyon Ranch Center for Prevention and Health Promotion.

The Center focuses on chronic disease prevention and acts as an intervention research center for diabetes and

its associated risk factors of obesity and depression.

8

Corporations

$16,567,065

Alumni

$7,222,482

Other

$6,964,054

Other

$2,793,123

Fundraising Consortia

$1,007,508

Foundations

$13,924,336

ACAdEmIC dIVIsIons 2007-08

Parents

$52,162

INDIVIDUALS

ORGANIZATIONS

Religious Groups

$11,675

$48,542,405

1970Leicester H. Sherrill elected Foundation president, a volunteer

post.

1971 The Foundation finances $1 million in hospital equipment and

a $720,000 computer for the UA. Richard A. Harvill retires as

the University’s 14th President. John P. Schaefer is hired.

1972UA secures its first endowed chair: The C. Leonard Pfeiffer

Endowed Chair in Cardiology. Eugene Morkin, MD, is named

chair holder.

1973 The Foundation announces that the aunt of director Jack

Greenway, Grace Flandrau, has bequeathed funds to build a

planetarium.

1974The Foundation gives UA the title to Optical Sciences Center.

1975Flandrau Planetarium and UA’s gift-financed Chest Disease Ad-

dition to the Basic Sciences Building open. Founding donor An-

sel Adams helps open the first home of the Center for Creative

Photography on North Park Avenue.

1976The Foundation gives UA the title to $1 million in hospital

equipment, raises $40,825 plus several collections for new

library.

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Corporations

$1,627,005Alumni

$5,359,236

Other

$1,634,229

Other

$350

Fundraising Consortia

$52,630

Foundations

$2,107,246

CAPItAL ImPRoVEmEnts 2007-08

Parents

$9,825

INDIVIDUALS

ORGANIZATIONS

$10,790,521

Agnese Haury and tree-ring

researcher Jeffrey Dean, the

Agnese & Emil Haury Endowed

Chair in Archaeological

Dendrochronology.

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Agnese Haury provides gift to benefit

Tree-Ring Laboratory

Agnese N. Haury gave $3 million toward her $9

million pledge to the UA’s Laboratory of Tree-Ring

Research. Agnese, a longtime supporter of the

University, is the widow of Emil W. Haury, one of

the lab’s founders and a co-facilitator of the UA’s

first tree-ring dating class.

Her recent gift will ensure tree-ring dating

continues to be explored at the UA by funding the

construction of a new building to house the lab’s

extensive collection of wood-stored archives. The

building will secure the future of the laboratory

as a leader in scientific research of archaeology,

ecology, geology and climate change.

More than two million samples within the lab’s

collection will be stored in the 15,000 square feet

of the new building, named for the lab’s director

emeritus, Bryant Bannister.

Agnese has also established the Emil Haury

Graduate Fellowship program in the Department

of Anthropology, the Agnese Haury Institute

for Court Interpretation, the A. N. Haury Fund

for dendochronological studies, and the Haury

Ceramic Heritage Fund at the Arizona State

Museum. The University awarded her an honorary

doctorate in 1999.

197710th anniversary of The President’s Club. Gifts total $21.6 mil-

lion, and there are 403 members.

1978UA President John P. Schaefer establishes the University Office

of Development and hires Richard F. Imwalle, the University’s

first professional fund raiser.

1979The Flinn Foundation of Phoenix announces a $200,000 chal-

lenge grant toward the UA’s second endowed chair in cardiol-

ogy. The Arizona Heart Association pledges $100,000.

1980Sherrill retires as Foundation president. McMillan elected

president; Imwalle, executive director.

IRS approves Foundation’s first pooled income fund, a type

of trust that lets donors of smaller amounts give away money,

keep the income from it, and save on taxes. Samuel J. Camp-

bell makes first gift.

UA awards 100,000th degree.

Grant Hill gives nation’s largest collection of popular sheet

music.

1975 Center for Creative Photography

Ansel Adams donates his archive to the UA in 1975, establishing

the Center for Creative Photography. In 1985, the UA creates

the Ansel Adams Endowment, which is funded with royalties

from sales of the famed photographer’s works. The endowment

also partially funds paid internships for graduate students. The

Center houses more archives and individual works by 20th-cen-

tury North American photographers than any other museum. Its

extensive collection details the history of art photography, mak-

ing it a rich research trove.

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ALumnI GIVInG 2007-08

J. David and Edith Lowell support UA Athletics

and Engineering, honor WWII Veterans

What do UA Athletics and the College of Engineering have

in common? The support of UA alumni J. David and Edith

Lowell. The couple donated $2.5 million to athletics and

more than $2 million to engineering last fiscal year.

Both previous UA athletes—David in football and Edith

in field hockey and women’s intramurals—the couple

partially funded construction of the UA basketball and

1980 continued

Foundation receives largest gift to date, the $5 million Mo-

torola Executive Institute. It becomes the Oracle Conference

Center and, later, Biosphere 2.

All-time Foundation support for UA passes $25 million.

1981 J. Harry Wood elected UAF president. A new largest gift: Su-

perior Farming Company’s $8 million in land and greenhouses

to benefit UA’s Environmental Research Laboratory.

1982Donors give more than $17 million to the UA through the

Foundation. UAF board adopts UA’s fiscal year, expands and

names alumni, athletics and development directors as ex-of-

ficio members.

The Flinn Foundation endows the Robert S. and Irene P.

Flinn Chair in Internal Medicine with $1 million. Ruben Bressler,

MD, named chair holder.

Foundation assets are approximately $29 million.

The Foundation forms Optimi, the student service/honorary.

UA’s second endowed chair in cardiology is fully funded and

given to Frank I. Marcus, MD.

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volleyball practice facility northeast of McKale Memorial Center. The gift, which is the

third largest in the department’s history, will support the $14 million, 20,000-square-

foot athletics facility. The athletics department also created a memorial to honor

Lowell’s older brother, William “Bill” Lowell, and fellow teammates from the 1942 UA

football team who served in World War II.

Within the College of Engineering, the Lowell’s gift will benefit the department

of mining and geological engineering, from which David is degreed. Funding will

create The David Lowell Professional Program in Mineral Resources, a distance-based

master’s program combining cutting-edge research with technical management.

13

The men’s and women’s UA swimming and diving

teams won the NCCA Championship in 2008.

14

Corporations

$5,368,727

Alumni

$1,215,656

Other

$3,431,820

Other

$6,788,448

Fundraising Consortia

$1,749,459

Foundations

$11,415,471

REsEARCH2007-08

Parents

$5,430

INDIVIDUALS

ORGANIZATIONS

Religious Groups

$455

$29,975,466

Walker estate provides breath of air and philanthropic

vision to UA College of Medicine

For the late Clara and Murray Walker, lives led in service to

others are honorably followed by a legacy left to do the same.

The couple, both retired high school teachers from Phoenix,

left an estate gift of $2.5 million to fund two research chairs at

the UA College of Medicine in the name of advancing research

in emphysema and ophthalmology.

The gift established The Murray and Clara Walker Memorial

Endowed Research Chair in Emphysema and The Murray

and Clara Walker Memorial Endowed Research Chair in

Ophthalmology. Both will ensure permanent funding of

research to provide hope to individuals with respiratory or

visual ailments.

Clara, a native Arizonan, received her bachelor’s degree in

education from the UA and later taught history, government

and economics at West Phoenix High School. She retired in

1969. In addition to giving to the UA, the Walkers, who had

no children, funded gifts to Arizona State University and the

Arizona Historical Society through their $6 million estate.

1982 continued

John P. Schaefer retires as the University’s 15th President.

Henry Koffler is hired.

1983 Leon Levy chairs Foundation’s $10.7 million campaign for a

new Cancer Center facility. Roy P. Drachman gives $1 million.

Toshiba Corporation funds a $6 million UA effort to develop

a filmless X-ray technique.

Karl Eller begins Center for the Study of Private Market

Economy in the College of Business and Public Administration.

Ansel Adams helps inaugurate the Center for Creative

Photography’s $4 million drive to build a new home.

NCR gives UA’s business college $2 million in equipment and

cash for management information systems department.

1984The President’s Club membership exceeds 1,000.

1985 The University of Arizona celebrates its Centennial. Shamrock

Foods’ McClelland family establishes the first Centennial

Professorship in the UA’s Karl Eller Center.

15

Drachman

Koffler

McClellands

Nina Sun is a senior research specialist at the BIO5 Institute,

which combines experts in agriculture, engineering, medicine,

pharmacy and science to address complex problems.

16

Corporations

$43,776

Alumni

$1,793,555

Other

$294,004

Other

$500

Fundraising Consortia

$52,391

Foundations

$25,100

unREstRICtEd GIFts 2007-08

Parents

$23,668

INDIVIDUALS

ORGANIZATIONS

$2,232,994

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1986 Sarver Heart Center

The Sarver Heart Center was founded in 1986 to address the

most prevalent health problem in the U.S.: cardiovascular

disease. The center’s success has been made possible by the

generosity of many supporters, including a 2000 naming gift

from the Robert Sarver Family for a state-of-the-art facility and

substantial gifts from Helen and Lee Lovaas, starting a tradition

of endowed chairs that have attracted the best and brightest of

medical experts.

The Sarver Heart Center has spearheaded breakthroughs

previously deemed impossible, for example in CPR, cardiac

transplantation and in the utilization of artificial heart technology

not only as a bridge to transplant but also to bring back young

children from life-threatening heart failure.

Legacy of Eddie Lynch hits homerun with

UA Athletics, Foundation

The legacy of the late Eddie Lynch lives on well after

his initial multi-million dollar pledge in December

1999 toward the $14 million Eddie Lynch Athletics

Pavilion.

Lynch, a UA alumnus and former baseball player,

was the founding general partner of Phoenix’s

Westcor Partners. He was also part-owner of the

Phoenix Suns and Arizona Diamondbacks and, in

1992, was awarded the UA’s Distinguished Citizen

Award.

As a tribute to his alma mater, Lynch funded both

the Eddie Lynch Athletics Pavilion and the Eddie

Lynch Athletics Pavilion Plaza, which celebrates

former student-athletes, supporters and friends

through custom-inscribed walkway tiles.

The facility includes the Bill Estes Jr. Family Strength

and Conditioning Center and the Kasser Medical

Treatment Center. In addition, the Jim Click Hall of

Champions displays more than 100 years of Arizona

Athletics heritage and traditions and offers rotating

exhibits. A former UA Foundation Board member,

Lynch also left a part of his estate to provide

permanent funding for the Foundation.

1985 continued

Fred Boice becomes Foundation President.

SAHBA forms five-year, fund-raising partnership with UA

Arthritis Center.

Annual Seed Money Grants total quadruples to $109,720.

Douglas and Alice Holsclaw announce gift for an endowed

chair in genetics.

17

Director Gordon A. Ewy, MD

18

$153,960,235

Foundations

$42,340,888

Alumni

$31,582,061

Parents

$390,885

Other

$14,418,996

Corporations

$35,311,309

Other

$29,916,096

INDIVIDUALS ORGANIZATIONS

$153,960,235

Academic Divisions

$48,542,405

Research

$29,975,466

Unrestricted

$2,232,994

Other

$764,808

Public Service & Extension

$12,085,919

Property, Building, & Equipment

$10,810,521

Restricted Endowments

$31,043,853

Athletics

$6,963,459

Library

$916,945

Deferred Gifts

$1,629,036

Student Financial Aid

$5,250,690

Faculty & Staff Compensation

$3,744,139

souRCEs oF GIFts2007-08

PuRPosEs oF GIFts2007-08

1986 The Foundation issues bonds to build a home for itself and the

Arizona Alumni Association. The facility is named in honor of

former UA Vice President Marvin D. “Swede” Johnson.

1987The University launches the largest capital campaign ever

undertaken in the state of Arizona. Called the Century II

Campaign, the goal was to raise $100 million in five years.

1988 The Foundation completes construction on the Scholarship

Suites atop Arizona Stadium and moves into the “Swede”

Johnson Building.

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1979

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1980

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1981

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1982

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1983

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1984–

1985

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1986

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1987

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1988

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1989

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1990

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1991

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1992

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1993

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1994

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1997

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2000

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2001

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2003

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2007

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$200

$180

$160

$140

$120

$100

$80

$60

$40

$20

$0

VALUE

OF GIFTS

($ Millions)

1990 The Century II Campaign surpasses its $100 million goal two years ahead of schedule.

Private gifts to the UA have steadily increased since 1978.

FISCAL

YEAR

Dedicated in 2007, the UA Helen S. Schaefer Poetry Center

on the northern edge of campus houses more than 50,000

volumes of various works and is a popular venue for events.

20

EndowmEnt PERFoRmAnCE

Our performance for the five years ending June 30, 2008 is as follows:

Return before Hurdle Rate

Return afterHurdle Rate

HEPI Excess/(Deficiency)

2004 14.62% 8.85% 4.6% 4.25%

2005 12.49% 7.18% 3.6% 3.58%

2006 12.31% 7.23% 5.0% 2.23%

2007 15.53% 10.63% 3.4% 7.23%

2008 1.60% (3.52%) 3.6% (7.12%)

Our return in fiscal 2008 was 1.6 percent. While we are never pleased with a negative return after the

Hurdle Rate, we are proud of the fact that we protected capital in a very difficult environment. We will not

know the exact quartile this gross return places us in until the 2008 NACUBO and Commonfund surveys

are published later this fiscal year. However, several less comprehensive studies report that the median

endowment had a gross return of approximately -3.5 percent. These studies support the fact that fiscal 2008

was a very challenging year in which to generate a positive return. That fact is also demonstrated by the

performance of a number of benchmarks:

Standard & Poor’s 500 Index (13.1%)

Russell 2000 Index (16.2%)

MSCI EAFE Index (10.6%)

MSCI EAFE Small Cap Index (18.6%)

FTSE NAREIT Global Index (19.7%)

Our Goal

Our goal in managing the endowment is straightforward: To manage the assets such that the return exceeds

the “Hurdle Rate” (the sum of the Payout and the Cost Recovery Fee) so the endowment principal is able to

grow and fund in perpetuity the activities you envisioned when you made your gift. Avoiding losses is a critical

component of achieving our goal, as is generating a return over the Hurdle Rate, which exceeds the Higher

Education Price Index (HEPI), the inflation measure most applicable to the University.

The Payout is equal to 4 percent of the average fair value of the endowment principal at the three previous

calendar year-ends. The Cost Recovery Fee is 1.25 percent of the fair value of the endowment principal.

1999 Eller College of Management

The Eller College of Management, one of the largest colleges at

the UA, continues to build on a tradition of excellence begun

in 1913. Named in appreciation for the generous commitments

and dedication of UA alumni Karl and Stevie Eller, the college

consistently ranks high in graduate and undergraduate business

education, according to U.S. News & World Report.

1991 Henry Koffler retires as the University’s 16th President.

Manuel Pacheco is hired.

The Foundation and the University formalize the Develop-

ment Management Services Agreement that provides greater

privacy to donor records and other information. Richard F.

Imwalle elected President of the Foundation.

1992The Century II Campaign concludes with a total of $196

million raised, nearly double the original goal.

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2001 BIO5

Launched with funds from a voter-approved tax in 2001, BIO5

is designed to fuel Arizona’s economic development by pursu-

ing state-of-the-art biological research. The program name of

BIO5 recognizes the strength to be found in collaboration. Five

disciplines – agriculture, engineering, medicine, pharmacy and

science – work together to address complex problems such as

the treatment of disease, feeding humanity and the preservation

of livable environments.

This distinctive bio-research building is a reality thanks

in large part to the leadership and passion of CALS graduate

Thomas W. Keating.

In 2008, the National Science Foundation awarded a BIO5–

led team $50 million to create a global center and computer

cyberinfrastructure, dubbed the iPlant Collaborative, to answer

plant biology’s grand challenge questions.

1997Manuel Pacheco retires as the University’s 17th President.

Peter Likins is hired.

The University launches a second comprehensive campaign,

again the most ambitious fund-raising effort ever undertaken

in the state of Arizona. The campaign placed the UA alongside

prestigious institutions such as Harvard, Southern California,

Stanford, UCLA and Virginia by establishing and surpassing

$1 billion goals.

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Vicki Chandler, PhD, Director, BIO5 Institute, and the Carl E. and

Patricia Weller Endowed Chair in Excellence; and Richard Jorgensen, PhD,

professor of plant sciences the UA, are leading a team of researchers

around the world on the iPlant Collaborative.

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Endowment Portfolio: Composition and Positioning

Composition: Our $335 million endowment portfolio was composed of the following asset classes as of June 30,

2008 (a complete list of our holdings by asset class appears on Page 24).

Our Investment Committee

Our Investment Committee has done tremendous work over the past five years and is made up of the following

individuals:

David G. Areghini Michael F. Hannley Ramiro “Ramey” G. Peru

Craig Barker (UAF staff) Thomas W. Keating George Rountree, III

Craig M. Berge Peter A. Ladigo Helen S. Schaefer

Robert L. Davis John E. Miller, Jr. Ralph Silberschlag,Chair

Karl Eller James H. Moore, Jr. (UAF staff) Joel D. Valdez

Lesley G. Goldfarb Gary M. Munsinger

We would like to recognize departing committee members David Areghini and Mike Hannley for their

service.

Commodities

6%

Real Estate

4%

Hedge Funds

13%

Long Short Equity

9%

Asset Allocation

5%

Mean Reversion

3%

Private Equity

4%

Int’l Fixed Income

4%

Cash

4%

U.S. Large-Cap Equities

14%

U.S. Mid-Cap Equities

2%

U.S. Small-Cap Equities

3%

Int’l Developed Equities

10%

Emerging Equities

6%

U.S. Fixed Income

13%

Managers by Asset Class at June 30, 2008

Asset Class Manager/Style

Cash JPMorgan

us Equities

Large-Cap Capital Guardian; Research Affiliates; Leuthold*; Commonsense (Core)

Mid-Cap Artisan (Value); Times Square (Growth)

Small-Cap Lord Abbett; Research Affiliates (Core)

International Equities

Developed Dodge & Cox (Value); William Blair (Growth); Forward Int’l (Small Cap)

Emerging Grantham, Mayo Van Otterloo (GMO); Berens Global Value

u.s. Fixed Income

Govt/Corporates Vanguard Short-Term Bond; GMO Domestic Bond; Rimrock ABS; Privately managed

TIPS Vanguard

Int’l Fixed Income GMO International Bond; PIMCO Developing Local Markets

Private Equity Quellos Private Capital; JPMorgan U.S. Corporate Finance; Spur Ventures II & III;

Commonfund Private Capital VI & VII; BPEA Life Sciences; Keyhaven; Conversus; BPEA;

Venture Investment; Tech Partners; Asia Alternatives I and II; Africa Development

Absolute Return

Mean Reversion GMO Mean Reversion*

Asset Allocation GMO Global Allocation Absolute Return*; PIMCO All Asset

Long Short Equity Landmark; Commonsense; Oak Hill; Commonfund; 7 x 7*

Hedge Funds Highbridge; Commonfund*; Arden; Rimrock; Commonsense

Real Assets

Public Real Estate Cohen & Steers Global Realty

Private Real Estate Morrison Street; New Boston; Commonfund Realty; Legacy Partners

Precious Metals First Eagle Gold; GLD

Timber GMO Forestry

Commodities Commonfund Multi-Strategy Commodities

* Fund closed to new investors and/or new money.

24

2003 College of Agriculture and Life Sciences

Established as the first college at the UA in 1889, the College of

Agriculture and Life Sciences has enjoyed a long and productive

association with agribusiness and agriculture, both nationally

and in Arizona.

At the same time, the college is leading the way in address-

ing the challenges of increasingly diverse and changing families,

communities and markets. CALS is home to the John and Doris

Norton School of Family and Consumer Sciences.

The School’s recent fundraising campaign, Campaign Cor-

nerstones, brought nearly 2,000 people and industry partners

together to raise the $25 million needed to build McClelland

Park, the School’s new 72,000 square foot home. The McClel-

land Park dedication ceremony was held on October 23, 2008.

2005The Foundation launches The Founders Society, a giving club

for donors of $1 million or more.

Richard F. Imwalle retires as President and CEO of the Foun-

dation, after nearly 28 years of service.

25

UA alumnus Paul Muthart, general manager of Yuma’s

Pasquinelli Produce Company, represents one of the

nation’s leading growers of fresh produce, providing

year-round healthy meals for the American table.

McClelland Park

OFFICERS

ChAIR

Peter E. Calihan President Konica-Minolta,Inc.

VICE ChAIR

Jon o. underwood

SECRETARY

sarah B. smallhouse President ThomasR.Brown FamilyFoundations

TREASURER

G. wallace Chester Principal WestcorDevelopment Partners

PRESIDENT & CEO

James H. moore, Jr.

PAST-ChAIR OF ThE BOARD

Peter A. Ladigo

OFFICERS OF THE

CORPORATION

James H. moore, Jr. President&CEO

Craig Barker SeniorVicePresident FinancialServices

mark R. Harlan SeniorVicePresident CentralDevelopment

Roger neuhaus SeniorVicePresident Development& UniversityCampaigns

Ken R. dildine VicePresident FiduciaryCompliance &GiftTransactions

Lisa B. Fahey VicePresident DonorServices

Rita m. williams VicePresident FinancialServices &Comptroller

william J. Bowen SpecialAssistantto theUAFPresidentfor BoardRelations

MEMBERS

Robert F. Charles B&JEnterprises

Ginny L. Clements ChairmanoftheBoard GoldenEagle Distributors,Inc.

Robert L. davis FirstVicePresident CBRichardEllis

June dempsey CommunityVolunteer (LaJolla,CA)

Karl Eller President&CEO TheEllerCompany

Peter A. Fasseas Chairman&Founder MetropolitanBankGroup

Philip w. Hagenah ExecutiveProducer &President FilmHouse,Inc.

meredith Hay ExecutiveVicePresident andProvost TheUniversityofArizona

ted H. Hinderaker Hinderaker&Rauh,P.L.C. AttorneysatLaw

Linn t. Hodge, III President&Owner LinnT.Hodge&Sons

James L. HunterAugustine B. Jimenez, III MontoyaJimenez,P.A.

I. michael Kasser President HolualoaCompanies

thomas w. Keatingnancy C. Loftin SeniorVicePresident, GeneralCounseland Secretary ArizonaPublicServiceCo. &PinnacleWestCapital Corporation

stephen J. macCarthy VicePresident ExternalRelations TheUniversityofArizona

manny C. molina President&CEO MolinaMediaGroup

John R. norton, III Chairman&CEO J.R.NortonCompany

Allan J. norvilleRamiro “Ramey” G. Peru ExecutiveVicePresident &CFO SwiftTransportation

The University of Arizona Foundation Board of Directors 2008-09

26

The University of Arizona Foundation

Fundraising

-Twenty-nine percent of the University’s budget comes

from three primary sources: tax dollars, student fees and

local funds (investment earnings).

-The remaining 71 percent must come from private gifts

and research contracts.

-More than 98 percent of the private dollars raised are

designated by donors for specific purposes.

-The UAF manages the University’s fundraising process;

$153 million was raised in fiscal year 2008.

Asset Management

-The UAF manages a $335 million endowment.

-The UAF asset base is $500 million.

-The UAF maintains approximately 4,000 accounts for

200 programs.

-The endowment payout rate is 4 percent.

-The UAF serves as trustee for life income agreements.

Board of Directors

-Composed of business and civic leaders from

throughout Arizona and the United States, the board is

responsible for the Foundation’s policies, procedures and

overall direction.

-Board members’ professional expertise and community

involvement allow them to offer valuable insights into

the Foundation’s development efforts.

-In addition to generating and managing private gifts

for the University, each year the UAF directs nearly

$200,000 of its assets to the UA in the form of grants

and awards.

stephen E. Quinlan Chairman LongRealtyCompany

George Rountree, III ManagingPartner RountreeLosee& Baldwin,L.L.P.

Peter w. salter President&Owner SalterLabs

Eugene G. sander VicePresident OutreachandDean CollegeofAgriculture andLifeSciences TheUniversityofArizona

Robert n. shelton President TheUniversityofArizona

Ralph silberschlag VicePresident MerrillLynch

Richard H. silverman ChiefExecutive SaltRiverProject

Craig w. starkey SeniorVicePresident forSales ArizonaPortland CementCompany

Robert m. suarez Owner&CEO R.S.Engineering,Inc.

thomas w. sullivan, Jr. ChairmanoftheBoard FirstMagnus FinancialCorporation

Joel d. Valdez SeniorVicePresident TheUniversityofArizona

Christopher J. Vlahos President TheUniversityofArizona AlumniAssociation

DIRECTORS EMERITI

Craig m. Berge President BergeFord

Fred t. Boice Owner BoiceFinancialCompany

Jack d. davisdarryl B. dobras, President DBDInvestments,Inc.

Joan “stevie” EllerLesley G. GoldfarbC. donald Hatfield

Burton J. Kinerk Attorney Kinerk,Beal,Schmidt, Dyer&Sethi,P.C.

Humberto s. Lopez President HSLProperties

s. James manilla ExecutiveDirector TheHSLopezFamily Foundation

John E. miller, Jr.James F. morrow Attorney Quarles&BradyL.L.P.

david F. Peachin Consultant DavidF.Peachin,CPA,P.L.C.

mary margaret Raymond CommunityVolunteer

James m. sakrison Partner Slutes,Sakrison&Rogers

Helen s. schaefer

HONORARY BOARD

MEMBERS

william A. Estes, Jr. President TheEstesCompany

Peter Kiewit, Jr. Retired,OfCounsel GallagherandKennedy

Henry Koffler Past-president TheUniversityofArizona

Peter Likins Past-president TheUniversityofArizona

Helen B. Lovaas TemeculaAssociates

norman P. mcClelland Chairman ShamrockFoodsCompany

manuel t. Pacheco Past-president TheUniversityofArizona

John P. schaefer Past-president TheUniversityofArizona

melvin Zuckerman

POSTHUMOUS HONORARY BOARD

MEMBERS

Roy P. drachmandonald n. soldwedel

2005 Campaign Arizona

The University of Arizona College of Law—the first law school

in Arizona and one of the first established in the West— was

founded in 1915. In 1999, the college was renamed the James E.

Rogers College of Law, in honor of the generous support of law

school graduate James E. Rogers, prominent attorney, business-

man, educational leader and philanthropist

In addition to his support of the law school and other

campus programs, Jim Rogers’ $130 million commitment made

it possible for the University to boldly embrace a billion-dollar

campaign. Campaign Arizona was the state’s first fundraising

campaign of this magnitude. Donors committed nearly $1.2 bil-

lion to support vitally needed endowments, programs, facilities,

students and faculty.

2006 The Foundation welcomes its new President and CEO, James

H. Moore, Jr.

Peter Likins retires as University President. Robert Shelton

is hired as the 19th President of the University.

27

Likins

Ways to support the UA

online Giving — You may make a gift securely online using

your credit card. Visit uafoundation.org/givenow.

Give by mail — Gifts made by check should be payable to UA

Foundation and mailed to:

UA Foundation

1111 N. Cherry Ave.

P.O. Box 210109

Tucson, AZ 85721-01109

Estate Planning – To remember the UA in your will or estate

plan, be sure to name The University of Arizona Foundation as

beneficiary. Our federal tax ID number is 86-6050388. If you

already have named the UA Foundation in your estate plan,

please contact us so we can appropriately recognize your gift.

Individuals aged 70½ or older with individual retirement

accounts can make IRA gifts without paying income tax on the

amount through December 2009. We also offer life-income gifts

that provide income and immediate tax benefits.

You can contact our planned giving specialists during business

hours at 520-621-1993 or visit uafoundation.org/plannedgiving

to learn more.

Real Estate — Your gift provides a convenient way for you to

enjoy a charitable deduction based on the current fair market

value of your property, and it can reduce the size and complexity

of your estate.

Gifts of stock — By donating appreciated securities or mutual

fund shares, you can provide a lasting contribution while

receiving tax benefits, such as capital gains tax savings.

Annual Giving – You can provide vital, unrestricted support

for UA colleges, schools and non-academic programs by calling

1-888-285-3412.

Contact us – Visit uafoundation.org for a complete listing of

Development Officers for each college and program.

2007 BioSphere2 property is gifted to the UA along with a $30 mil-

lion pledge for research funding from the Bass family.

2008The Foundation launches The 1885 Society, a giving club of

unrestricted dollars to be used at the discretion of the Univer-

sity president.

Nearly 70,000 donors contribute $153.9 million in fiscal

2008, the second highest total in school history.

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1111 North Cherry Avenue

P.O. Box 210109

Tucson, Arizona 85721-0109

ADDRESS SERVICE REqUESTED

uafoundation.org

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