Foundation endowment grows

Despite a slow economy, the IU Foundation endowment grew 3.6 percent to $956 million in the last fiscal year, which ended on June 30, 2002. The foundation manages all donations given to the University. Private giving to IU totaled $92.4 million.\nThe economy affected the foundation's assets, but it credits a diverse group of investments, which maintained a more profitable pool of donations.\nAn investment committee, created by the foundation's board of directors and comprised of multiple individuals retaining an extensive knowledge of investing activities, meets a minimum of three times per year to look over the foundation's portfolio and discuss means to diversify the assets. \nOver the weekend, the committee approved a measure to place 80 percent of the endowment assets into stocks and 20 percent into bonds. In the past, the committee placed 70 percent into stocks and 30 percent into bonds. While the numbers were still conservative, Gary Stratten, chief investment officer for the foundation, said the new proportions should be sufficient enough to help increase the portfolio but is not too risky.\n"We want to invest those dollars so they grow, so 20 or 40 years from now, one dollar will have the same purchasing power as it does today," Stratten said. "We have our portfolio structured for 80 percent stocks and 20 percent bonds. For an institution like ours, it's reasonable. It's not overly aggressive, but it positioned us well so we can have that purchasing power over time."\nPortfolio diversity and the boom economy of the 1990s have allowed the endowment assets to raise an average of 10.6 percent each year. \nBarbara Coffman, executive director for strategic planning and communications for the foundation, said the endowment fund has followed the valleys and peaks of the fluctuating economy, but the investments practices have helped to smooth out the changes.\nFrom scholarships and library books to new buildings on campus, the endowment fund benefits every student at the University. Of the $92.4 million given to the foundation, $23.6 million of that will go toward undergraduate scholarships, graduate fellowships and student financial aid. The libraries will receive $1 million for use toward new books, magazines and other publications.\nCharging up the ranks of public university endowments, IU jumped from 14th last year to 9th this year since the average public university endowment dropped 6 percent in that same fiscal year according to a survey done by the National Association of College and University Business Officers. \nWith 100,795 donors last year, up from 99,805, this record setting number is another shining moment for the foundation.\nStratten said the record number of donors demonstrates the loyalty alumni and other donors have for the University.\n"In these tough economic times, having this economic support is just amazing," Stratten said. "People have a choice to do what they want with their resources and this speaks highly of their affinity for the institution."\nDonations to the foundation vary from year to year. In the 2000-2001 fiscal year, $92.4 million was donated in private grants by alumni, corporations and other types of groups. The previous year garnered $220.7 million, including a $105 million donation by the Lilly Endowment for IU's Life Science Initiative according to the IU Foundation 2001-2002 fiscal report.\n"It is common for gifts to be designated for specific uses through the endowment," Coffman said. "When donors make gifts, they can make the gifts current, use gifts which are spent right away or as endowment gifts, which are invested."\nWhile the proportion varies from year to year, generally 95 to 98 percent of all gifts have a designated purpose chosen by the donor. Current gifts are donations designated to be spent within a 12-month period on such things as Ætechnology. The unrestricted funds, which received $3.7 million, will be allotted for a variety of purposes, Coffman said. The majority of the money will go to the administration. This money is generally used for unexpected events or University initiatives and programs which previously did not have funding.