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Donors and Investments 2003

2003 was a record year for donations to Indiana University

The numbers are revealing, and they bode well for the university: More donors are making gifts than ever before, and their gifts are yielding greater-than-average returns.

Donor Support Sets Record
More donors made contributions to IU last year than any time in its history. At 105,977 donors, this was a 5 percent increase over the previous record of 100,795 set the previous year.

IUF President Curt Simic credited the success of IU’s fundraising efforts to a long-term strategy that includes:

• a series of major campaigns, among them a $700 million campaign for the IUPUI campus that exceeded its goal before the end of the campaign this year
• a comprehensive fundraising program that attracts annual, major, and planned gifts from alumni, corporations, foundations, and other friends of the university
• committed volunteers
• the university and IU staff working for every IU campus.

Simic anticipates continued positive results as the university focuses on the BioCrossroads life sciences initiative in partnership with the state, the city of Indianapolis, and key corporate and foundation leaders.

2003 Investment Returns Rise Above the National Average
The investment strategies of the IU Foundation paid off in better-than-average returns for Indiana University’s endowment last year.

The Chronicle of Higher Education reported that college and university endowments averaged a total return of 2.9 percent in the 2003 fiscal year. During the same period, the endowment managed for Indiana University by the IU Foundation had a return of 3.8 percent, 0.9 percent above the average.

The annual study, conducted by the Commonfund Institute, stated that in general "endowments of U.S. educational institutions have turned the corner" since reporting a negative 5.4 percent return in 2002. The Foundation's total return rate for ten years averaged 9.5 percent per year.

Simic credits new strategies adopted in the past year that serve to maintain the purchasing power of the endowment over time. “These strategies,” he said, “helped to counteract the downward pressure the economy had been exerting on endowments generally."

Simic said that strategies adopted by the Investment Committee of the Foundation Board of Directors include:

• changing the asset allocation from 70/30 to 80/20 equities/fixed income, which added a net of about $15 million to invested assets  
• instituting a cash overlay program, managed by the Clifton Group, which also added $15 million  
• staying the course rather than reacting to huge swings in the market  
• continuing to build the alternative investment part of the Foundation's portfolio.  

>Jana Wilson

Find out more about investment policies of the IU Foundation.