fy 2015 annual report

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


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)


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

$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.


$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.


$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.


$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.


$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.


$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.


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%


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


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


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


UNIVERSITY OF ILLINOIS FOUNDATION1305 WEST GREEN STREET, URBANA, IL 61801

217.333.0810 /// UIF.UILLINOIS.EDU

fy 2015 annual report

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