univeristy of illinois foundation: fy 2015 annual report
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F I S C A L Y E A R 2 0 1 5 : J U L Y 1 , 2 0 1 4 – J U N E 3 0 , 2 0 1 5
ANNUAL REPORTU N I V E R S I T Y O F I L L I N O I S F O U N D A T I O N
ABOUT THE FOUNDATION
Established in 1935, the University of Illinois
Foundation is an independent nonprofit corporation
responsible for raising and administering private
gifts that advance the University and its excellence
in teaching, research, public service, and economic
development across all three campuses.
The Foundation’s dedicated staff is part of a comprehensive University advancement team of more than 400 talented professionals and visionary campus leaders. As the primary repository of private support to the University of Illinois, the UI Foundation is committed to best practices, continuous improvement, quality service, and—most importantly—donor intent.
04 OUR VALUES
05 LETTER FROM FOUNDATION LEADERSHIP
06 ANNUAL FOUNDATION MEETING
08 NEW GIFTS & COMMITMENTS
CONTENTS
HONORING THE PAST /// BUILDING THE FUTURE
22 FOUNDATION ENDOWMENT
24 GIFT PLANNING
25 PRESIDENT'S COUNCIL
27 FOUNDATION LEADERSHIP
HONORING THE PAST /// BUILDING THE FUTURE
Exemplify
INTEGRITY
Practice
CIVILITY
Embrace
COLLABORATION
Inspire
INNOVATION
Create
IMPACT
OUR VALUES
04 /// FY 2015 UIF ANNUAL REPORT
GREGORY B. LYKINS
Chair, Board of DirectorsUniversity of Illinois Foundation
ROGER L. PLUMMER
Immediate Past Chair, Board of Directors University of Illinois Foundation
JAMES H. MOORE, JR.
President/CEOUniversity of Illinois Foundation
As we reflect on our 80 years as partners in philanthropy with the University of Illinois, we are pleased to share this year’s Foundation annual report. It provides an overview of philanthropic activities during fiscal year 2015—all made possible by your investments.
The past year has been one of transition at the University and the Foundation. And while progress is not possible without change, the cornerstone for our work remains no matter the circumstance: supporting the University’s mission of excellence in teaching, research, public service, and economic development across all three campuses.
Private support has been impacting the University since its founding, nearly 150 years ago. Today, tens of thousands of donors invest annually in our students, faculty, facilities, and programs.
In fact, you and your fellow philanthropic supporters made new gifts and commitments totaling $295.5 million in FY 2015. While donors make their gifts through the Foundation, the University is the beneficiary.
Change is inevitable, however, some things remain constant: the University of Illinois is impacting lives, it is leading at the edges, and your investments are more important than ever.
Thank you again for your continued support of the University of Illinois and University of Illinois Foundation.
80 years of gratitude for
YOUR GENEROSITYBEYOND THE NUMBERS… A FEW NOTEWORTHY HIGHLIGHTS FROM 2014-15:
Improvement is a priority of our Board
of Directors. Last year, the board
conducted a comprehensive self-study
to identify areas for improvement and
opportunities to increase giving, donor
engagement, and volunteer leadership.
Our team entered the home stretch
of our two-year technology system
upgrade project. This collaborative
effort among the three campuses, the
Foundation, the Alumni Association,
and many other partners will
significantly impact our productivity
and capacity to reach our goals.
Planning for the next comprehensive
University-wide campaign continued
to make progress on each of the
three campuses.
LETTER FROm FOUNDATION LEADERshIP /// 05
“Your generosity makes a real difference by making
education more affordable for our students, and improving
their experience in and beyond the classroom. Your
partnership strengthens our relationship with local
communities, and that benefits the city of Chicago. And
your investment in our research enterprise improves lives
across the world. In these ways and many others, our
success is an outcome of your support.”
MICHAEL D. AMIRIDISChancellor, University of Illinois at Chicago
“For nearly 150 years, the University of Illinois at
Urbana-Champaign has been defined by the amazing
ideas and innovations of the people who have called
this place home. Your support of the faculty, staff, and
students at Illinois makes a profound difference here
every day. Your gifts and investments fuel discoveries
with impacts that cross generations.”
BARBARA J. WILSONInterim Chancellor
University of Illinois at Urbana-Champaign
06 /// FY 2015 UIF ANNUAL REPORT
ANNUAL FOUNDATION MEETING
We hosted our 80th Annual meeting in October 2015 where University leaders took the stage in an engaging panel discussion about the future of the University of Illinois, the current budget challenges facing our state, and the impact of philanthropy on public higher education.
While this annual gathering is a time for Foundation members to cast votes for directorships and receive fiscal year financials—it’s also a time to celebrate the significant impact of philanthropy and honor our giving community.
We can’t thank you enough for your vital support of the University!
From left to right: Interim Chancellor Barbara J. Wilson,
Chancellor michael D. Amiridis, Chancellor susan J.
Koch, University President Timothy L. Killeen
“At the University of Illinois Springfield, new academic
programs and services to students, as well as the outcomes
of faculty research, are enhancing the visibility and
reputation of our University. The support of our donors
has been vital as we make these high-quality educational
experiences available to students.”
SUSAN J. KOCHChancellor, University of Illinois springfield
“The University of Illinois is an engine of progress—a
large-scale incubator of the highly skilled workforce
and groundbreaking innovation that drives economic
growth for our state and our nation.”
TIMOTHY L. KILLEENUniversity of Illinois President
ANNUAL FOUNDATION mEETINg /// 07
THANK YOU
New Gifts & Commitments
$295,459,311
NEW GIFTS, GRANTS, PLEDGES, AND DEFERRED GIFT COMMITMENTS
FY 2015 (JULY 1, 2014–JUNE 30, 2015)
08 /// FY 2015 UIF ANNUAL REPORT
1.5% Other
$4.5 MILLION
DISTRIBUTION
SOURCES
21.8% Chicago
$64.4 MILLION
1.8% Springfield
$5.3 MILLION
74.9% Urbana
$221.3 MILLION
DESIGNATIONS
REsEARCh /// $65.8 M
UNREsTRICTED* /// $64.6 M
FACILITIEs /// $60.0 M
ACADEmIC PROgRAms /// $28.7 M
sTUDENT sUPPORT /// $39.6 M
PUBLIC sERVICE /// $15.6 M
FACULTY sUPPORT /// $15.4 M
OThER /// $5.8 M
*These gifts are restricted to a campus, college, department, or program, but unrestricted in their use at the discretion of the dean or unit head.
Alumni$95.7 MILLION
32.4%
Foundations$79.5 MILLION
26.9%
Corporations$57.0 MILLION
19.3%
Other$37.5 MILLION
12.7%
Friends$25.8 MILLION
8.7%
NEW gIFTs & COmmITmENTs /// 09
10 /// FY 2015 UIF ANNUAL REPORT
$65.8M
RESEARCHResearch is big business at the University of Illinois—with
more than $910 million in funding from federal, state, and
private sources combined. These funds seed transformational
ideas that result in tremendous impact—from the social
sciences and humanities to engineering, business, and
agriculture. With more than 12,000 research employees
on all three campuses, discovery and exploration leads
to new cures, advanced technologies, research-based
startups, job growth, and improved economies.
NEW gIFTs & COmmITmENTs /// 11
$60M
FACILITIESKrannert. siebel. Khan. granderson. schwartz. Therkildsen.
These names belong to just a few of the visionary donors
whose investments in the University of Illinois created
buildings and spaces that do far more than change the
campus landscape. These investments—and others across the
University’s campuses—provide the classrooms, laboratories,
libraries, auditoriums, stages, and other spaces essential to our
faculty, staff, students, and community. These facilities serve
as conduits for cutting-edge research and groundbreaking
innovations that transform lives, improve communities,
and enhance society. Exceptional facilities also boost the
University’s ability to attract private and government-funded
contracts as well as talented faculty, staff, and students.
12 /// FY 2015 UIF ANNUAL REPORT
NEW gIFTs & COmmITmENTs /// 13
$39.6M
STUDENT SUPPORTAs the state’s largest educator, the University of Illinois
welcomes more than 78,000 students across three campuses
annually. Through rigorous academic programs, innovative
curriculums, and out-of-class experiences, our learners are
nurtured, well-rounded, critical thinkers with the skills necessary
to solve complex challenges. These opportunities would not be
possible without the support of our faculty, staff, alumni, and
donors who help cultivate the dreams that fuel our students’
ambitions. Each year, 20,000 new civic-minded graduates join
a network of living alumni 700,000 strong—more than enough
to populate what would be the 18th largest city in America.
14 /// FY 2015 UIF ANNUAL REPORT
NEW gIFTs & COmmITmENTs /// 15
16 /// FY 2015 UIF ANNUAL REPORT
$28.7M
ACADEMIC PROGRAMSLearn to dance from a Broadway veteran, hone writing skills
with a Pulitzer Prize winner, ponder philosophy with a Fulbright
scholar, explore engineering alongside a macArthur Fellow, or
study physics with a Nobel Prize winner. University of Illinois
faculty members offer world-class educational experiences
to their students. In Urbana-Champaign, 16 colleges and
instructional units provide more than 150 undergraduate
programs and 100 graduate/professional programs. In Chicago,
15 colleges offer 83 undergraduate programs and 157 advanced
degree programs. In springfield, 4 colleges support 25
undergraduate programs and 21 advanced degree programs.
NEW gIFTs & COmmITmENTs /// 17
18 /// FY 2015 UIF ANNUAL REPORT
$15.6M
PUBLIC SERVICEThe University of Illinois is at work in more communities than
most realize—from tutoring academically at-risk children
and providing representation for financially-exploited senior
citizens, to ensuring dental support for Chicago’s homeless and
educating our state’s agriculturists about job-related injury and
illness. True to its 150-year-old, land-grant tradition, University
of Illinois faculty, staff, students, and graduates share their
knowledge, expertise, and resources with neighbors in every
corner of Illinois…and across the world.
NEW gIFTs & COmmITmENTs /// 19
$15.4M
FACULTY SUPPORTWithout first-rate faculty, a university cannot attract
first-rate students. Endowed chairs and professorships,
discretionary funding for equipment and conferences, and
sponsored research opportunities create an environment in
which the finest faculty flourish. With exceptional faculty,
the University of Illinois attracts the best and brightest
students, year after year. Nearly 6,000 faculty members
span three campuses, giving University of Illinois students
exceptional access to the scientists, artists, writers, clinicians,
educators, and innovators whose work shapes our world.
20 /// FY 2015 UIF ANNUAL REPORT
NEW gIFTs & COmmITmENTs /// 21
over
$108MIN ASSETS ADDED
TO THE UIF ENDOWMENT
over
$52MDISTRIBUTED
TO THE UNIVERSITY
Foundation
ENDOWMENT
FY 2015 (JULY 1, 2014–JUNE 30, 2015)
Of all forms of private giving, endowments are perhaps the most influential investments in higher education—
providing both immediate and continuing impact on the University. The permanent financial support created by
endowed funds builds self-renewing, living legacies that span generations. A strong endowment also increases the
University’s ability to forecast one of its core revenue streams with greater predictability. The Foundation manages
many endowment funds that collectively produce earnings used to support designated University programs,
faculty, and students across our three campuses in Urbana-Champaign, Chicago, and springfield.
THE ACTIVE ENDOWMENT REACHED
$1.61 BILLIONFOUNDATION ACTIVE ENDOWMENT
F I V E T h O U s A N D O N E h U N D R E D F O R T Y- F O U R E N D O W E D F U N D s
Other$104.8 MILLION
6.5%
Chicago$244.1 MILLION
15.2%
Springfield$15.6 MILLION
1.0%
Urbana$1.24 BILLION
77.3%
22 /// FY 2015 UIF ANNUAL REPORT
FOUNDATION ENDOWMENT POOL (93.2% OF THE TOTAL ACTIVE ENDOWMENT)
9.6%
11.8%
-4.3%
12.4%
21.3%
13.5%
15.1%
2.8%
-22.3%
$1,044.6
$902.3
$784.3
$890.4
$1,072.6
18.0%
$1,117.9 $1,100.6
$1,344.6
$1,461.5$1,499.0
$825.5
ANNUAL RETURN
MARKET VALUE (MILLIONS)
MA
RK
ET
VALU
E (
MIL
LIO
NS)
AN
NU
AL
RE
TUR
N
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
-$200
-$400
-$600
-$800
-$1,000
40%
35%
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
-25%2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
FISCAL YEAR END (JUNE 30)
ENDOWMENT POOL COMPARISON TO BENCHMARKS IN YEARS ONE THREE* FIVE* TEN*
Endowment Pool Total Return (net of fees) 2.81% 10.17% 10.39% 6.10%
Total Portfolio Benchmark Performance 1.28% 10.22% 11.31% 7.10%
In FY 15, 4% of the six-year moving average market value was distributed for the purposes specified in the individual fund agreements between the
Foundation and donors. An additional 1.45% was designated as an administrative fee to support Foundation operations.
*Three-, five- and ten-year annualized returns expressed in percent per year
THE ENDOWMENT POOL REACHED
$1.5 BILLION
ENDOWMENT POOL MARKET VALUES AND ANNUAL RETURNS 2005–2015
0.7%
FOUNDATION ENDOWmENT /// 23
Gift
PLANNING
many donors choose to leave a lasting legacy through a variety of
gift planning instruments executed with the University of Illinois
Foundation to benefit their desired campus, unit, or interest.
ChARITABLE REmAINDER TRUsTs $72.5 million
gIFT ANNUITIEs $34.1 million
ChARITABLE LEAD TRUsTs $4.2 million
LIFE EsTATEs $3 million
POOLED INCOmE FUNDs $100 Thousand
$47.9M
NEW REVOCABLE AND IRREVOCABLE COMMITMENTS IN FY 15
REVOCABLE EsTATE PLAN COmmITmENTs $44.0 million
ChARITABLE REmAINDER TRUsTs* $1.5 million
ChARITABLE gIFT ANNUITIEs* $2.4 million
*Irrevocable gift arrangements administered by UIF
24 /// FY 2015 UIF ANNUAL REPORT
581
NEW MEMBERS IN FY 15
President's
COUNCIL
The premier donor recognition program of the University of Illinois,
the President’s Council recognizes individuals who make significant
philanthropic investments in the University totaling $25,000 or more.
since 1964, 15,779 members have joined the Council based on
cumulative lifetime gifts and commitments (outright, pledged, and
deferred) across all three campuses.
gIFT PLANNINg & PREsIDENT's COUNCIL /// 25
We are committed to being good stewards of every single gift and sincerely
appreciate the generous community of donors who invest their life’s treasures
in the University.
THANK YOU
26 /// FY 2015 UIF ANNUAL REPORT
OFFICERS OF THE BOARDCHAIRGregory B. Lykins ’69ChairmanFirst Busey Corporation
IMMEDIATE PAST CHAIRRoger L. Plummer ’64PresidentPlummer & Associates Consulting
PRESIDENT/CEOJames H. Moore, Jr.
SECRETARYJacquline N. Schweighart ’03, ’09 EdM
TREASURERWalter K. Knorr
LEGAL COUNSELThomas R. Bearrows ’79, ’82 JD
BOARD OF DIRECTORSAnthony G. DiTommaso ’74,’77 MSmanaging PartnerEcvall, LLC
Jane Phillips Donaldson ’65, ’67 MS PartnerPhillips Oppenheim
Alan D. Feldman ’74, ’76 MBA(Retired) Chairman, President & CEOmidas, Inc.
Laura L. Fraley ’77, ’79 MSPrincipalgreenway Family Office, LLC
Juanita F. Francis ’70PresidentF2 Family Foundation
Karen M. Golz ’76 global Vice ChairErnst & Young global Limited
Mary Kay Haben ’77(Retired) President, North AmericaWilliam Wrigley Jr. Co.
G. Stephen Irwin ’77(Retired) President & ChairmanThe Center for Outpatient medicine
Mannie L. Jackson ’60(Former) Chairmanharlem globetrotters
Gail Veasman Kellogg ’65(Retired) Consultanthewitt Associates
Leon J. Loichle ’71 MA(Retired) global PersonnelDevelopment managerFord motor Company
Steven L. Miller ’67Chairman & PresidentsLm Discovery Ventures, Inc.
Saul J. Morse ’69, ’72 JDAttorneyBrown, hay & stephens, LLP
Mark A. Pytosh ’86President & CEOCVR gP, LLC
José L. Santillan ’80senior securities Compliance Examiner, Industry Expert, Division of EnforcementU.s. securities & Exchange Commission
Kay M. Schwichtenberg ’84President & CEOCentral Life sciences
Khawar Siddique ’94, ’98 MDCEOBeverly hills spine surgery, Inc.
Carl L. Vacketta ’63, ’65 JD(Retired) senior CounselDLA Piper LLP (U.s.)
EX-OFFICIO DIRECTORS Timothy L. KilleenPresidentUniversity of Illinois
Edward L. McMillan ’69 ChairUniversity of Illinois Board of Trustees
Owner & CEOmcmillan, LLC
William F. Stratton ’85 ChairUniversity of Illinois Alumni Association
PartnerWhite, Roberts & stratton, Inc.
LIFE DIRECTORS James M. Benson ’68ChairmanBenson Botsford, LLC
Gary K. Bielfeldt ’58, ’59 MSmanaging PartnerBielfeldt & Company LLC
Henry B. Blackwell II ’52(Retired) CounselBaker & Daniels LLP
Alice C. Campbell ’43 JD(Retired) TreasurerThe Robert Campbell Company
Doris K. Christopher ’67Founder & ChairmanThe Pampered Chef, Ltd.
Richard G. Cline ’57Chairmanhawthorne Investors, Inc.
James R. DeBord ’69, ’71 MS, ’74 MDPresidentPeoria surgical group, Ltd.
David J. Downey ’63, ’66 JDPresidentThe Downey group, Inc.
W. Robert Felker ’74Partner gator Trading
Louis A. Friedrich ’67(Retired) PrincipalBernstein global Wealth management
John A. Georges ’51(Retired) Chairman & CEOInternational Paper Company
Phillip C. Goldstick ’53(Retired) Chairman of the Boardg. Equity Investment group Ltd.
Fred F. Guyton, Jr. ’61(Retired) ChairmanPeckham guyton Albers & Viets, Inc.
Shahid R. Khan ’71PresidentFlex-N-gate Corporation
Robert Klaus ’57PresidentKlaus Companies
R. Eden Martin ’62Of Counselsidley Austin LLP
H. Richard McFarland ’52President & OwnermcFarland Foods Corporation
William C. Merchantz ’79(Retired) President & CEOLakeview Technology, Inc.
Joseph A. Piscopo ’65(Retired) ChairmanPansophic systems, Inc.
Gayl S. Pyatt ’64(Retired) Attorneygayl simonds Pyatt Attorney at Law
Jane Hayes Rader ’54(Retired) CommissionerIllinois human Rights Commission
Edwin A. Scharlau II ’66, ’68 MS, ’74 PhDVice ChairmanBusey Bank
George T. Shapland ’55Presidentshapland management Company
Bernard Shaw ’66(Retired) Principal Washington Anchor CNN
Michael T. Tokarz ’71, ’73 MBAChairmanThe Tokarz group, LLC
John F. Williams ’49(Retired) Vice President International Business machines Corporation
William E. Winter ’42(Retired) Chairman Emeritus The seven Up Company
Arthur R. Wyatt ’49, ’50 MS, ’53 PhD(Retired) PartnerArthur Andersen & Co.
EXECUTIVE OPERATIONS TEAMJames H. Moore, Jr. President/CEO
Christine C. Devocelle ’13 MBAsenior Vice President & Chief Financial Officer
Ellen J. Ellison, CFAChief Investment Officer
Edward F. Ewaldsenior Vice President for Development
Shari M. Foxsenior Vice President for Principal gifts & Presidential Activities
Jeff Lorbersenior Vice President, UIF Vice Chancellor for Advancement, UIs
Jeff Nearhoof senior Vice President, UIF Vice Chancellor for Advancement, UIC
Dan Peterson, JDsenior Vice President, UIF Vice Chancellor for Advancement, UIUC
FOUNDATION LEADERSHIP
FOUNDATION LEADERshIP /// 27
PHOTO CREDITS:pg. 1 /// Commencement on Urbana Quad includes Foellinger Auditorium 1915 (2), circa Jun. 19150005300, Courtesy of the University of Illinois Archives
pg. 1 /// Circle Campus Elevated Walkway includes University Hall, ca. 1960s 086 UA90-006.476, University of Illinois at Chicago Library, University Archives
28 /// FY 2015 UIF ANNUAL REPORT
UNIVERSITY OF ILLINOIS FOUNDATION1305 WEST GREEN STREET, URBANA, IL 61801
217.333.0810 /// UIF.UILLINOIS.EDU