2019 ANNUAL REPORT TODAY. TOMORROW. TOGETHER.
TODAY. TOGETHER. TOMORROW. Founded in 1953 under the leadership and direction of H. Ogden Brainard, the Eastern Illinois University Foundation has, since its inception, been dependent upon the generosity of its members to encourage and provide private support to the University, and to promote the ideals of volunteerism and philanthropy among alumni, friends and employees of the University.
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2019 EIU FOUNDATION REPORT
TABLE OF CONTENTS NEW LEADERSHIP
Dr. Ken Wetstein selected to lead EIU’s Advancement areas
MAKING AN IMPACT Investing in our students
P. 5 P. 7
OPENING DOORS TO OPPORTUNITY
P. 8
FINANCIALS: WHAT IT ALL MEANS EIUF Treasurer’s Report
P. 15
• EIUF Financial Statements & Independent Auditor’s Report • Form 990 (Return of Organization Exempt From Income Tax)
P. 16 P. 19
P. 10
2019 EIU FOUNDATION REPORT
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NEW LEADERSHIP
“EIU has a great story to tell and is experiencing fantastic momentum. I look forward to sharing that story with our supporters and learning about their passion for Eastern.” Dr. Ken Wetstein Vice President for University Advancement & Executive Officer of the EIU Foundation
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2019 EIU FOUNDATION REPORT
DR. KEN WETSTEIN SELECTED TO LEAD EIU’S ADVANCEMENT AREAS
PANTHER ALUM EAGER TO ENHANCE EIU’S LEGACY OF EXCELLENCE Dr. Kenneth Wetstein reprised his on-campus leadership role
School of Philanthropy in September 2015. Prior, he earned a
as Eastern’s new EIU Vice President for University Advancement
Ph.D. in Higher Education Administration from the University of
& Executive Officer of the EIU Foundation overseeing EIU’s
Missouri – St. Louis in 2005. Wetstein also holds two degrees
advancement initiatives earlier this summer.
from EIU—an M.S. in education in counseling with an emphasis in college student personnel (1993), and a B.A. in political
An EIU alumnus with two degrees from his alma mater, he
science with an emphasis in international relations (1991).
began his career in higher education as a student leader
He acknowledges his relationship with Eastern puts him in a
while working with Eastern’s chapter of the Residence Hall
prime position to assist the university in achieving its broadest
Association and serving as a resident assistant. Later, as a
advancement and alumni objectives.
graduate assistant, he held the position of Associate Resident Director where he continued to serve the EIU campus
Eastern Illinois University’s advancement unit is charged with
community.
developing, facilitating, and strengthening relations with EIU’s internal and external constituents, focusing on maintaining
“As an undergraduate and graduate student at EIU in the late ’80s and early ’90s, I experienced first-hand Eastern’s commitment to its students and their development,” said Wetstein.
and enriching Eastern’s state and national image, increasing private and public support and innovation, and augmenting the university’s quality academic and athletic programs at the state’s premier regional public institution.
Wetstein has played strategic and vital roles at several educational and non-profit organizations, where his professional focus has revolved around advancement-related philanthropic development and student affairs program management. In previous roles, he has served as vice president of the Toledo Symphony Orchestra, as vice president for Institutional Advancement and as vice president for student engagement at Defiance College (Ohio), and as the director of Student and Professional Affairs at St. Louis College of Pharmacy. Wetstein also has held administrative and management roles at the Catholic Diocese of Belleville (Illinois) and Missouri State University.
Wetstein posing with members of his 1991 Ford Hall staff at the circle drive sign in front of Old Main. He was a graduate student in charge of the building and its community at the time.
As vice president for university advancement, Wetstein’s newest role at EIU includes leading a team of development
“Our future success depends on our ability to strengthen and
and advancement professionals in the areas of planned
deepen the relationship between EIU and our key constituents,
giving, major gifts, corporate sponsorships, and donor and
including our donors, friends, and advocates,” Wetstein
alumni relations. He is also responsible for collaborating and
declared. “Together, we can accomplish incredible things.
coordinating with Eastern’s board of trustees on relationship-
More importantly, we can provide even broader opportunities
building and related philanthropic initiatives.
for ensuring the success of both our EIU students, as well as success of the diverse communities and regions EIU serves.”
Wetstein earned a professional Certificate in Fund Raising Management (CFRM) from Indiana University’s Lilly Family
2019 EIU FOUNDATION REPORT
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M A K I N G A N I M PA C T
“State Farm’s investment in the technical infrastructure at EIU’s Lumpkin College of Business and Technology is a testament to the critical programs and services we provide to our students.” Dr. Austin Cheney Dean of EIU’s Lumpkin College of Business and Technology
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2019 EIU FOUNDATION REPORT
INVESTING IN OUR STUDENTS. STATE FARM INVESTS $100K IN EASTERN ILLINOIS UNIVERSITY TECH PROGRAMS
are given a world-class education by our highly qualified faculty. The technology upgrades this investment provides will further enrich the applied learning experiences EIU is known for providing.” “State Farm’s investment in the technical infrastructure at EIU’s Lumpkin College is a testament to the critical programs and services we provide to our students,” Cheney added. “In turn, students bring the technical skills they learned at EIU into the regional workforce, helping businesses like State Farm by providing qualified and knowledgeable employees.” Surrounded by representatives of both the university and State Farm, EIU President Dr. David M. Glassman accepted a monetary gift from David Wasser, technical manager of Core Computing Operations at State Farm, and Tammy Wilson, State Farm agent this past summer.
A $100K gift from State Farm Companies Foundation to Eastern Illinois University will be used to upgrade computer labs and networking equipment at the state’s top-ranked regional public higher education institution.
Slaven agreed, and added that “today’s society requires a solid basis and understanding of technology. Technology is adapting and evolving every day, which requires employees in every field to embrace changes and challenges with equal enthusiasm.” Eastern Illinois University and State Farm, headquartered in Bloomington, IL, share a storied and prosperous relationship. State Farm regularly leverages external service providers like
Representing State Farm was a group of regional associates,
Eastern Illinois University to provide flexibility in meeting changing
who visited EIU’s campus August 5 to deliver a $100,000 check,
workforce and customer needs. According to State Farm, at least
and to celebrate their gift with a variety of EIU representatives,
500 EIU alumni are employed by the insurance and financial services
including EIU President Dr. David M. Glassman, EIU Provost and
company—and likely many more given that employees provide their
Vice President of Academic Affairs Dr. Jay Gatrell, and Dean of EIU’s
alumni affiliations on a discretionary basis.
Lumpkin College of Business and Technology Dr. Austin Cheney. Jim Slaven, State Farm public affairs specialist, described the investment as a “win-win situation” for the students, the university and for State Farm.
“We value the relationship we share with State Farm, and we look forward to the amazing things our ongoing partnership will continue to produce,” Cheney said.
“As a company that relies heavily on technology, State Farm is
State Farm’s most recent commitment to EIU embodies a strong
committed to giving students the tools and resources they need to
history of support for the Charleston-based university. To recognize
thrive in a high-tech workforce here in Illinois and across the globe,”
their previous contributions, Eastern Illinois University named State
State Farm’s Slaven said. “State Farm is proud to partner with
Farm and the State Farm Companies Foundation as recipients of
Eastern Illinois University to provide these upgrades, and to help
the university’s prestigious Burnham and Nancy Neal Outstanding
Eastern reinforce its strong legacy of preparing students for lucrative
Philanthropist awards in 1998 and 2007, respectively.
and fulfilling careers.”
Several of Eastern Illinois University’s advisory boards and
EIU President Dr. David Glassman agreed, and thanked State
committees also benefit from the contributions of current and
Farm Insurance Companies and the State Farm Foundation for its
former State Farm employees and EIU alumni. Most recently, State
commitment to Eastern and its students.
Farm’s Systems Department Director Krupal Swami (’95) serves as a member of EIU’s School of Business Advisory Board, while State
“Eastern Illinois University is extremely grateful to State Farm and
Farm’s Administrative Services Manager Barbara Moore (’08) serves
the State Farm Foundation for their investment,” Glassman said.
as a member of EIU’s Accountancy Program Advisory Board.
“The students in our Lumpkin College of Business and Technology
2019 EIU FOUNDATION REPORT
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OPENING DOORS TO OPPORTUNITY
SURPASSING EXPECTATIONS. ALUMNI DONATIONS, REGARDLESS OF THEIR SIZE, CAN HAVE A HUGE IMPACT ON THE LIVES OF EIU STUDENTS. HERE ARE JUST A FEW EXAMPLES.
LIMITLESS POSSIBILITIES Jason Tabit is a double major in management
money is a finite resource for us and we do not
and sports management from Fairport, NY. He
have the funds to pay for my time at Eastern
chose to attend EIU because of the limitless
Illinois without scholarship aid. Scholarship
opportunities that would be provided to him
funds like this have helped to pay for a
at Eastern. Among these were EIU’s small class
significant percentage of my tuition as well as
sizes and the opportunity to work directly
my room and board, lessening the financial
with faculty. He’s also been able to expand his
burden of the cost of college on my family.
musical talents by playing in a variety of music
Through that, we’ve been able to spend more
ensembles.
time together as a family, and it has also been possible for me to fly home during breaks.
JASON TABIT
Recipient of the Ronald A. Bouchard Management Scholarship
“It is incredible what you are doing to promote the Lumpkin College of Business & Technology at Eastern Illinois and the students of the university. On behalf of myself and all other students in the Lumpkin School of Business & Technology, thank you very much for your support.”
“Outside of the classroom, I have had lots of
I’m originally from Rochester, New York and
opportunities to get involved with a variety
the distance from home can be a challenge
of organizations both within and outside
in terms of seeing family and spending time
of my areas of study. I have been able to
with loved ones. Receiving this scholarship is
have a positive impact on the university’s
an absolute game-changer for my family and
future and the direction of programs I am
has made a massive impact on our financial
passionate about. I have also become
situation,” added Tabit.
involved with fraternal organizations, serving on the executive board for Delta Sigma Pi, a
“To the donor of this scholarship, thank you so
professional business fraternity and joining
much for your generosity and the opportunity
Kappa Kappa Psi, an honorary band fraternity.
you are providing to me and my family.
Furthermore, I have had an opportunity to
I’ve made friendships and had exceptional
become involved with the Eastern Illinois
experiences that will continue to have an
Football team, working with the coaching
impact on me for the rest of my life. Without
staff and helping to create a more successful
scholarship funds like those you have made
future for the team through a variety of duties
available to me, I have been able to pursue
in recruiting and research. EIU has simply
and enjoy these opportunities, and I’m sure I
provided me with a chance to do everything I
will have many more wonderful prospects in
have ever wanted and I have a brighter future
the future for ways to become involved in the
ahead of me because of my time spent at this
campus and Charleston communities. You have
university,” said Tabit.
significantly eased the financial burden of my family to attend college, and I cannot thank
“My family and I have been very fortunate
you enough for what you have done for us,”
in terms of the scholarship funding I have
said Tabit.
received thus far for my college education, as
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2019 EIU FOUNDATION REPORT
EXCITED TO PAY IT FORWARD Like so many other college students, Travis
college experience easier for the students, and
Moody’s college experience was typical when
ultimately make them feel more comfortable
it came to the financial pressures of paying
and confident in their abilities as students and
for school. However, Travis was able to take
future employees,” said Moody.
advantage of help he received from the Dr. Charles I. Switzer Memorial Scholarship, and to
“When thinking back to the English professors
pay that help forward.
that were able to assist me in bettering my writing, I am excited to be that person for
TRAVIS MOODY
Travis, an English and philosophy major from
my future students. A lot of times, students
Bellmont, IL, is using his own experience to
get negative feedback on their writing, which
help other students with their writing skills.
makes them feel insecure or inferior about their writing skills. I aspire to be the professor
“With the help of this scholarship, I feel more
that encourages students while explaining
Recipient of the Dr. Charles I. Switzer Scholarship
comfortable with my situation, and it helps
what may be improved to help them better
to keep me here at Eastern Illinois University
understand and grow. Receiving the Dr.
“I would like to thank the donors for believing in me and my future. Words cannot express how honored and humbled I am to receive this scholarship.”
so that I can have the amazing experience of
Charles I. Switzer Scholarship has allowed
attaining a bachelor’s degree. My goal is to be
me to move one step closer to achieving
able to help students entering their first few
this goal by helping to aid in the cost of my
years of college build stronger foundations
education. With the assistance from the Switzer
for their writing abilities, which is a crucial
Scholarship, I will be more able to focus on my
skill they will use regardless of the field they
education and academic requirements rather
chose to study. My hope is that building
than stressing and worrying about paying for
these foundations will make the rest of the
the cost of college,” said Moody.
A HOME AWAY FROM HOME Kristen Ames’ journey to Eastern started
the campus amazing, but the professors are
because she wanted to play softball for the
too. My class sizes are unbeatable and my
Panthers. She came to campus as a freshman
professors are always so eager to help. I get
from Joliet, IL, and didn’t know what degree
one-on-one attention and I feel like I have
program she wanted to pursue. But one class
a second family looking out for me,” stated
gave her the ambition and direction she
Ames.
needed to help shape her future career. “I am so grateful to have found a school “I was required to take a class called the
that pushes me to be the best I can be like
‘The Natural Environment’ and I ended up
Eastern does. This scholarship has enabled
absolutely loving it—so much so that I decided
me to continue pursuing a career that I love.
geology was going to be my major, with a
It allows me to be able to focus on my studies
minor in geographic information systems or
rather than figuring out how I can pay for
Recipient of the Jon and Diana Giffin Geologist Scholarship
GIS for short,” said Ames.
school. I have big dreams of walking across the
“This is so much more than just a scholarship to me. This is a boost of confidence that I am worth it, and that I have people behind me telling me I can do this.”
“Eastern has provided me with a home away
I can use the degree I worked so hard for.
from home. The campus is the perfect fit for
I’m so incredibly blessed to be receiving this
me because everything is within a walking
scholarship and the support for my future. I
distance. I can get to anywhere I need to be
can’t say thank you enough for investing in my
on campus within five minutes. Not only is
future and believing in me,” said Ames.
KRISTEN AMES
stage at graduation and finding a job where
2019 EIU FOUNDATION REPORT
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E I U F O U N D AT I O N B O A R D O F D I R E C T O R S
EIU FOUNDATION WELCOMES NEW PRESIDENT, RETURNING BOARD MEMBERS The Eastern Illinois University Foundation is excited to welcome a new
Young (Vice President) of Mahomet, IL; Al Longtin (Treasurer) of
Board President and 9 returning Board members beginning with its
New Lenox, IL; Jill Nilsen (Secretary) of Charleston; Daryll Fletcher of
October 2019 meetings.
Mundelein, IL; Gordon Grado of Scottsdale, AZ; Dennis Grannan of Chicago; William Hill of Charleston; Rick Ingram of Chicago; and Sylvia
As the Foundation’s newest President, Cindra Stiff will lead the Board of
Nichols of Evansville, IN.
Directors. Stiff will assume the role of President held by immediate past President Sylvia Nichols, whose term expires in October 2019. Stiff, of Philpot, KY, will be joined on the Foundation Board by Susan
CINDRA STIFF, PRESIDENT PHILPOT, KENTUCKY
Stiff earned a Bachelor of Science degree in business with an accounting emphasis from EIU in 1979. She went on to earn an MBA from Murray State University in 1988. She recently retired the position of Vice President of Finance at Kentucky Wesleyan College in Owensboro, KY. She also served as an adjunct instructor in the Introduction to Business & Women Leadership courses. Stiff began her career as an accountant for EIU and then went on to hold the position of controller at the Presbyterian College in Clinton, SC. Stiff’s professional appointments include serving as past chair of the Small College Committee of Southern Association of Colleges and University Business Officers (SACUBO), as well as chair of the Board and Finance Committee for Hospice of Western Kentucky and member of the Daviess County Kentucky Library and Bowlware Home Center Boards.
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2019 EIU FOUNDATION REPORT
SUSAN YOUNG, VICE PRESIDENT MAHOMET, ILLINOIS
Susan graduated from EIU in 1984 with a Bachelor of Science degree in accounting and a Master of Science degree in taxation in 1990 from DePaul University. In her current role, Young serves as Executive Senior Associate Director of Athletics/Chief Financial Officer in the University of Illinois’ Division of Intercollegiate Athletics, where she’s worked for more than ten years. In her role, she oversees the annual financial operations, capital project funding, and human resources for the division. Additional areas under Young’s supervision include the State Farm Center, Orange and Blue Golf Course, Atkins Tennis Center, and IT services. Before her tenure with U of I, she spent nearly six years as Senior Vice President and Chief Operating Officer of First Mid-Illinois Bank & Trust Wealth Management Division in Mattoon. She is an accomplished executive with more than 30 years of tax, financial planning, and investment advisory experience for several firms, including Ernst & Young, Fel-Pro Incorporated, and KKP Group. Young has been very involved in the Eastern Illinois University Alumni Association, serving as president in 2004-05 and as a board member from 2001 to 2010.
AL LONGTIN, TREASURER NEW LENOX, ILLINOIS
Longtin earned a Bachelor of Science in business in finance from EIU in 1986, graduating with honors and excelling in business and finance following his four years of service in the United States Navy. During his service, he received letters of commendation for his accuracy in accounting for a $20 million budget for repair parts. His career started at the Chicago Board of Trade as a bond trader. In 1987, Longtin joined an estate-planning firm where he became one of the firm’s top representatives. He is currently Founder/CEO of Longtin Family Companies, LLC which he founded in 1992— a company specializing in assisting wealthy individuals, business owners and entrepreneurs to address long-term wealth preservation plans that utilize a broad range of financial products and services. Longtin’s company is recognized nationally as experts in limited family partnerships, family foundations, and complicated estate trust designs. One of Longtin’s main passions is serving on boards for 501c3 organizations alongside with other charitable giving organizations. Some include SowHope (empowering women in third-world countries) and PB42 (which encourages couples to be proactive in early detection of breast and prostate cancer signs). He also served as President of the Bishop McNamara High School (Kankakee) Alumni Board. Longtin was a fall 2011 executive-in-residence at EIU, and currently serves on the EIU Athletic Director’s Advisory Group.
JILL NILSEN, SECRETARY CHARLESTON, ILLINOIS
Nilsen graduated from EIU in 1974 with a Bachelor of Science degree in speech pathology and audiology and a Master’s of Science degree in 1975. Nilsen was an EIU faculty member, Department Chair, Associate Dean of the Graduate School, and Vice President of External Relations before her retirement. Her contributions to EIU have been and continue to be extensive. During her time as Vice President, Nilsen restructured the EIU Development function so that every college was an integral partner in EIU’s Development efforts. She also created an endowment in the Department of Communication Disorders and Sciences that provides funding for graduate student research presentations. Nilsen was recipient of the 2015 Outstanding Philanthropist award. She is an EIU Alumni Association Distinguished Alumna and a recipient of the Louis V. Hencken Service Award. She also serves as a member of the College of Education and Professional Studies Philanthropy Board. Nilsen was formerly President of the CASA of East Central Illinois Board of Directors, and her service in other local agencies includes the Boards of the Sarah Bush Lincoln Health Systems, the Coalition Against Domestic Violence, CCAR Industries, and the Charleston Zoning Board. She served as a member of the EIU Presidential Search Committee as well as President of the EIU Annuitant Association and President of the Charleston Area Chamber of Commerce.
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E I U F O U N D AT I O N B O A R D O F D I R E C T O R S
DARYLL FLETCHER MUNDELEIN, ILLINOIS
Fletcher retired from Allstate Insurance Company where he served as the Vice President of Quantitative Research and Analytics. He was responsible for the company’s applied research and catastrophe-modeling capabilities. He held various positions and experienced several relocations across the United States in his 32 years with Allstate, with roles including Assistant Vice President of Urban/Hispanic Markets, Regional Vice President of the Capital Region, and Vice President of Risk Management/Underwriting where he oversaw the field operations of 49 states. Fletcher earned his undergraduate degree in speech communication from EIU in 1975 before earning a master’s degree in guidance and counseling in 1976. He is a 2008 recipient of the EIU Alumni Association Distinguished Alumni Award. A former executive-in-residence for EIU’s School of Business, he also has volunteered with numerous community-based organizations throughout his career. Fletcher and his spouse of 40 years, Janice, live in the Chicago suburbs of Ivanhoe, IL They enjoy spending quality time with their grandson Isaiah.
GORDON GRADO SCOTTSDALE, ARIZONA
Gordon graduated from EIU in 1974 with a Bachelor of Science degree in zoology. In 2006, he was named the Distinguished Alumnus by the EIU Alumni Association, and in 2013 he also was awarded an honorary Doctor of Science from Eastern Illinois University. Gordon is the founder and Medical Director of Southwest Oncology Centers based in Scottsdale, with four other oncology centers throughout Arizona and with two affiliated centers each in Mexico and Latin America. Before his private practice, he established and chaired the radiation therapy program at Mayo Clinic, Scottsdale and was the Wurtele Professor of Therapeutic Radiology and Oncology at the University of Minnesota, where he developed the prostate brachytherapy program. Gordon also served on the board of Adelante Healthcare, which began as a program to provide health care to farmworkers and now offers affordable healthcare throughout Maricopa County. He continues to provide support to St. Vincent DePaul and their clinics in Arizona. In June 2000, Arizona’s Governor named him as a member of the Arizona Prostate Cancer Task Force. He has worked at EIU, lecturing health science students and developing a mentoring program for pre-medical students interested in studying at his Arizona Southwest Oncology Centers, where they work as interns and on research projects.
DENNIS GRANNAN CHICAGO, ILLINOIS
Grannan earned a Bachelor of Science in Business degree from EIU with a double major in accounting and philosophy. His continued involvement with the EIU includes membership on Eastern’s Alumni Board and as secretary of the Lambda Chi Alpha Alumni Board. In 2016, he received the Lambda Chi Alpha Order of Merit Award for his ongoing support of the chapter. After college, he worked as an accountant for Aon Insurance Company in the Reinsurance and Financial Statements Department. In 1989, Grannan left Aon Insurance to pursue a career on the Chicago Board of Trade. Dennis received his brokerage license and proceeded to trade on his account. He sold his seat in 1993 to manage and operate two family businesses in Chicago—Villari Florist and J&P Delivery—until selling them in the 2000s. Grannan remains a commercial investor and owns and manages both commercial and private real estate properties.
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2019 EIU FOUNDATION REPORT
WILLIAM HILL
CHARLESTON, ILLINOIS Hill began his education by earning a Bachelor of Arts degree in education from Kentucky Wesleyan College. He went on to earn his Master of Science degree in school administration from Indiana State University, as well as a Ph.D. in education from Southern Illinois University. Hill served 27 years as a School District Superintendent, 18 of which with the Charleston School District. He dedicated 31 years to school administration within the public schools of Illinois, 13 years as an adjunct professor at Eastern, and four years as a State of Illinois Regional Vocational Director. He currently serves on the Sarah Busch Lincoln Foundation Board as a director of the Distance Learning Grant for Illinois Telephone Association and the Regional Board of School Trustees. Hill was twice appointed to the Illinois State Board of Education by former Governor and EIU alum Jim Edgar. He served six years on the State Board of Education. He was a member of the Illinois Association of School Administrators Board of Directors and served as Board President. Additional professional memberships include the Retired Teachers Association of Illinois and the State Universities Annuitants Association. He also served as a President of the Charleston Chamber of Commerce Board of Directors and received an appointment with CASA. Hill was a member of the Board of Directors for the Lake Land Community College Foundation.
RICK INGRAM CHICAGO, ILLINOIS
Ingram graduated with honors from Eastern in 1978 with a Bachelor of Art in political science. He went on to earn a Juris Doctorate from the University of Tennessee in 1981. Ingram is General Counsel and Chief Legal Officer for Chicago Parking Meters, LLC and AMI Group, LLC in Chicago. He formerly was a partner at Shefsky & Froelich Ltd. and has experience in a broad range of real estate, corporate and infrastructure matters, including acquisition and disposition of significant commercial properties, negotiation of governmental incentives, and facilitation of multi-level public/private initiatives and partnerships. Ingram also has extensive experience counseling clients on issues relating to the management of significant commercial properties. His numerous charitable, public service and community activities have included president of the Lakeview Action Coalition, as well as a member of the Coles County Board, Coles County Regional Planning Commission, and Hawthorne Academy Local School Council, and he mentored with the Gay and Lesbian Bar Association of Chicago. He was named a Leading Lawyer—the top 5% of Illinois lawyers who are selected by his peers.
SYLVIA NICHOLS EVANSVILLE, INDIANA
Sylvia is a graduate of EIU where she received her Bachelor of Science in education with a major in chemistry. While enrolled as a student she was inducted into the mathematics honorary society. She began her career in Lawrenceville, IL, where she taught chemistry and mathematics. Nichols went on to instruct chemistry, math and physics at Red Hill School, Bridgeport, IL. and Lincoln Trail College, Robinson, IL After leaving the teaching profession, she was elected to the Lawrenceville Unit 20 Board of Education and served as president. Concurrently, she and her husband owned and operated Nichols Funeral Homes in Lawrence County. After moving to Edwardsville, IL, she became CEO and partner in S&N Graphics, Inc., located in St. Louis, MO. The company manufactured photopolymer printing plates and other identification products for the packaging industry. She was a founding member and served as President of the FPPA—a national trade association for the industry. Now retired, she is a member of the American Association of University Women where she served as President. She also served as a former President of the EIU Alumni Association. Nichols was an avid volunteer and participant in the EIU capital campaign. In 2011, the Foundation Board named Sylvia as Outstanding Foundation Member. Nichols is longtime member of the EIU Foundation Board of Directors and formerly served as President.
2019 EIU FOUNDATION REPORT
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F I N A N C I A L S : W H AT I T A L L M E A N S
The Foundation is an Illinois notfor-profit 501(c)(3) corporation. 14
2019 EIU FOUNDATION REPORT
EIUF ASSISTANT TREASURER’S REPORT
THE FOLLOWING REPORT DETAILS THE MOST CURRENT AUDITED STATEMENTS DATED JUNE 30, 2018. The EIU Foundation budget is underwritten by a distribution from the Brainard Trust, administrative fees generated on investments, farm management fees, and earnings from endowment funds restricted for Foundation operations. Specifically, an administrative fee of 1.25% is assessed on trusts administered by the Foundation, with a fee of .75% on Foundation investments and 4.75% of gross income on the farms. Collectively, these sources PAUL McCANN, EIUF ASSISTANT TREASURER
provided $608,000.00 in revenue to support the Foundation’s operations in FY18.
The Foundation has contained operational costs through a conservative, long-term approach to the budgeting process. As a result, the Foundation has maintained a stable reserve of funds and was able to deploy some of these reserves in support of University priorities identified by the EIU administration the past three fiscal years. Also noteworthy, the auditing and accounting firm of Clifton Larson Allen LLP will audit the EIUF financial statements beginning with the FY 19 fiscal year audit. The total net assets of EIUF were $97,003,558.00 on July 1, 2018. While the FY 19 statements are being finalized, the preliminary statement shows net assets of approximately $95,000,000.00 as of July 1, 2019. EIUF provided $1,069,632 in scholarships and $2,596,055 in grants to EIU in FY 2018. As noted in the report from Fund Evaluation Group (FEG), allocation recommendations are presented by the Foundation’s investment consultants and approved by the Investment Committee and Foundation Board. The Foundation remains focused on balancing risk and return in order to achieve our 7.2% objective for investment performance within the EIUF endowment. Beginning in May 2018, Foundation contracted with Fund Evaluation Group, located in Cincinnati, Ohio, to serve as an investment advisor to EIUF. FEG replaced the former investment advisor, Mercer Investment Consulting, which had served as the Foundation’s investment advisor since 1998.
EIUF ASSISTANT TREASURER’S BIOGRAPHY Paul McCann has served as the Interim Vice President for Business Affairs at EIU since December 2008. Previously, he served Eastern as director of business services/treasurer beginning in June 2006. He received his bachelor’s degree in business administration and accounting from Augustana College in Rock Island. In addition to his work at Murphey, Jenne and Jones (now known as Peat Marwick), McCann has served as a partner with the accounting firm of Doehring Winders and Co., LLP, and as chief financial officer with Behnke and Co., Inc., a Decatur insurance firm.
IMPORTANT FINANCIAL DOCUMENT LINKS The following documents are available for downloading and printing:
EIUF FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT FORM 990 (RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX)
2019 EIU FOUNDATION REPORT
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F I N A N C I A L S : W H AT I T A L L M E A N S
EIUF ENDOWMENT PERFORMANCE REPORT
THE FOLLOWING INFORMATION OUTLINES INVESTMENT PERFORMANCE WITHIN THE EIUF ENDOWMENT FOR THE PERIOD JULY 1, 2018 TO JUNE 30, 2019. In today’s complex investment landscape, institutions face unique challenges. The mission at Fund Evaluation Group (FEG) is to empower clients to fulfill their missions through superior investment performance, objective insights, and research. FEG is an independent, employee-owned, full-service investment advisory firm with more than 30 years of stability and growth. FEG is headquartered in Cincinnati, Ohio. DOUGLAS J. WALOUKE, CFA FUND EVALUATION GROUP VICE PRESIDENT/CONSULTANT
FEG was contracted by the EIU Foundation to serve as an investment advisor beginning May 2018. The EIU Foundation Investment Committee and Board of Directors review and approve investment
recommendations presented by FEG and monitor the firm’s performance relative to EIUF’s investment policy and objectives. The EIUF Board also conducts an on-site due diligence visit as part of our commitment to steward the generous support of EIUF’s many donors and friends.
FEG REPRESENTATIVE BIOGRAPHY Douglas J. Waluouke joined FEG in 2012 and currently serves as a Vice President/Consultant. He received a bachelor’s of business administration in finance and economics from the University of Cincinnati and has been an investment professional since 1991. He previously held the position of Senior Investment Officer at FEG. Past positions include Senior Investment Manager for The Ohio Bureau of Worker’s Compensation, Vice President/Senior Investment Banker at J.J.B. Hillard, W.L. Lyons, Inc. and Vice President/Portfolio Manager at the Ohio Company. Waluouke is a member of the CFA Institute and CFA Society of Cincinnati. He is also a Board Member and Past President for the CFA Society of Columbus and serves as the Hope Fellows Financial Chair at Hope Church.
EIUF ASSET ALLOCATION EIUF’s portfolio is diversified by global risk factors such as global equity, global fixed income, real assets, and diversifying strategies.
GLOBAL EQUITY Stocks, Private Equity, Long/Short Hedge Funds
Bonds, Bank Loans, Credit Hedge Funds
59.4%
14.4%
ROLE/RISK Total Return
WEIGHT
Stock Market Declines
16
GLOBAL FIXED INCOME AND CREDIT
2019 EIU FOUNDATION REPORT
REAL ASSETS Real Estate, Natural Resources, Infrastructure
DIVERSIFYING STRATEGIES Event Driven, Relative Value, Macro
7.0%
19.2%
ROLE/RISK
ROLE/RISK
ROLE/RISK
Equity Risk Mitigation and Total Return
Inflation Protection and Total Return
Diversification and Total Return
Rising Rates and/or Credit Downgrades
Deflation
Poor Manager Execution
WEIGHT
WEIGHT
WEIGHT
EIUF TOTAL PORTFOLIO PERFORMANCE year 2019 where global equities experienced a roller coaster market and below average return. •
EIUF has a diversified, “all weather” portfolio which has outperformed its primary objective over the
7.2
6.8
Returned 3.2% for the fiscal ANNUAL RETURN (%)
•
8.4
7.9
7.8
7.6
6.8
6.5
5.0 4.2
4.2
3.2
past three and ten years. This is despite a market that has heavily favored U.S. equity since the global financial crisis ended in 2009.
1 Yr
3 Yr POLICY INDEX
EIUF
EIUF COMPOSITE PERFORMANCE •
GLOBAL EQUITY
EIUF’s portfolio is diversified by global risk
In a year of significant transition, the EIUF composites lagged their respective benchmarks, except for diversifying strategies.
GLOBAL FIXED INCOME
REAL ASSETS
7.9
5.7
2.7
EIUF Index
EIUF Index
EIUF PRIVATE CAPITAL PERFORMANCE
EIUF Index
TOTAL PRIVATE CAPITAL
EIUF has about 8% of its portfolio allocated to
7.4
with almost 90% of it in private equity.
-6.8
PRIVATE NATURAL RESOURCES
9.4 7.2
8.1
Private capital has added approximately 1.8% in return over the public markets.
•
PRIVATE DEBT
Due to the availability of private capital data, the IRR data in this section is provided based upon the
RETURN (%)
•
PRIVATE EQUITY
10.2
9.2
private capital across equity, debt, and real assets
2.0
EIUF Index
-7.2
•
DIVERSIFYING STRATEGIES
4.5 ANNUAL RETURN (%)
income, real assets, and diversifying strategies.
10 Yr
PRIMARY OBJECTIVE (CPI + 5%)
7.3
factors such as global equity, global fixed •
5 Yr
2.7
most recently available period (3/31/2019). •
Illiquidity Premium (%) — 1.8%
•
Illiquidity Premium ($s) — $657,473 EIUF
PUBLIC MARKET EQUIVALENT (%)
-2.4
2019 EIU FOUNDATION REPORT
17
F I N A N C I A L S : W H AT I T A L L M E A N S
EVALUATING THE PORTFOLIO FROM A HIGH LEVEL •
Global equity returned 4.5% for the fiscal year, underperforming the MSCI ACWI benchmark by -1.2%. A year of transition, EIUF’s exposure to “value” managers cut into relative performance given the much stronger gains of “growth” managers.
•
Global fixed income returned 7.3% for the fiscal year, modestly underperforming the Barclays Aggregate U.S. Bond Index by -0.6%. EIUF’s public fixed income performance is invested in a market index, but its performance was dragged down by its small allocation to private credit.
•
Real assets returned -6.6% for the fiscal year. In transitioning its portfolio, the positive year-to-date 2019 returns of two new managers were not strong enough to overcome the 4Q2018 bear market in natural resources.
•
Diversifying strategies returned 2.7% for the fiscal year, outperforming its index by 1.6%. It was a portfolio in transition, with two managers exiting and two new managers added in May 2019.
EIUF SUMMARY PERFORMANCE AND RISK (6/30/2019) It is critical to understand returns in the context of the risk taken. EIUF’s total portfolio risk is about 60% of the risk in global equity. --- RISK --1 RELATIVE RISK BETA
ABSOLUTE RISK VOLATILITY
(5 YR. BETA)
(5 YR. ST. DEV.)
$74,946,889
0.6
7.3
--- ANNUALIZED --JUL-98 3 MOS YTD
TOTAL FUND 2
POLICY INDEX PRIMARY OBJECTIVE (CPI + 5%) BROAD POLICY (70%/30)
3
GLOBAL EQUITY COMPOSITE MSCI ACWI WORLD INDEX
1 YR
3 YR
5 YR
7 YR
10 YR
7.8 7.2
5.0 6.5
7.9 6.6
8.4 6.8
7.2 7.2
3.2%
7.6%
4.2%
6.9%
INCEPTION 5.8%
2.3%
9.8%
2.6 1.7
11.7 3.5
4.2 6.8
3.6
13.3
6.7
8.9
5.3
7.8
8.5
5.5
2.5 3.6
13.4 16.2
4.5 5.7
10.3 11.6
6.0 6.2
9.4 9.9
10.2 10.1
-
$44,527,569
0.9
10.7
$35,932,216
1.0
12.1
$5,122,000 $10,757,332
N/A 0.0
N/A 2.5
$5,270,641
$535,981
N/A 0.8
N/A 12.2
$185,810 $14,371,021
N/A 0.2
N/A 3.5
7.9%
2.9
15.3
4.2
10.1
5.6
9.1
10.0
-
MSCI ACWI WORLD INDEX PRIVATE EQUITY GLOBAL FIXED INCOME COMPOSITE
3.6
16.2
5.7
11.6
6.2
9.9
10.1
-
3.0
7.3
2.9 2.6
2.1
1.9
3.0
4.9
-
PUBLIC INTEREST RATE SENSITIVE
3.1
5.7
BARCLAYS U.S. AGGREGATE BOND INDEX 3.1
6.1
7.9
2.3
2.9
2.6
3.9
0.7
8.4
-7.2
0.9 1.1
-5.8
-6.0
0.5
3.0
-
-1.2 0.1
5.1 17.0
-6.8 3.1
-2.2 -0.4
-9.1 -7.2
-6.7 1.0
-3.7 8.2
-
1.7
5.5
2.7
5.9
3.4
5.3
5.7
-
1.5
4.6
2.0
3.8
2.1
3.5
3.1
-
PUBLIC EQUITY
6.2
7.9
2.5
4.4
PRIVATE CREDIT REAL ASSETS COMPOSITE PUBLIC REAL ASSETS BLOOMBERG COMMODITY INDEX ALERIAN MLP INDEX PRIVATE REAL ASSETS DIVERSIFYING STRATEGIES HFRI FOF: CONSERVATIVE INDEX CASH
MARKET VALUE
0.7
8.9
-6.6
0.7
3.1
-
-
$10,221,351
$5,084,831
0.0
0.9
2.8
13.1
$20,326
Beta calculation is relative to MSCI ACWI Index.
1
Policy Index is currently comprised of: 5.0% PIMCO Inflation Response Multi Asset Index, 6.5% Thomson One All Private Equity Index, 1.0% Thomson One Mezzanine Index, 23.0% Russell 3000 Index, 16.0% MSCI EAFE Emerging Markets Index, 13.0% Bloomberg Barclays US Aggregate Index, 2.0% Alerian MLP Index, 22.0% HFRI FOF: Conservative Index, and 2.5% HFRI FOF: Strategic Index. Please see Appendix for benchmark history.
2
Broad Policy Index is comprised of: 70.0% MSCI AC World Index and 30.0% Bloomberg Barclays US Aggregate Index.
3
EASTERN ILLINOIS UNIVERSITY FOUNDATION NEAL WELCOME CENTER 860 W. LINCOLN AVENUE CHARLESTON, IL 61920-2405 (217) 581-3313 18
2019 EIU FOUNDATION REPORT
MISSION STATEMENT The Eastern Illinois University Foundation exists for the following purposes: To encourage and provide private support to Eastern Illinois University, including the region which the University serves, and to promote the ideals of volunteerism and philanthropy among alumni, friends and employees of the University; To assist and support Eastern Illinois University’s educational and cultural mission through encouraging philanthropic gifts of cash, property and other materials of educational and artistic value; and To enhance the educational activities of Eastern Illinois University students and employees by participating in and supporting academic and artistic programming through scholarships and grants.
2019 EIU FOUNDATION REPORT
19
M A K E A N O N L I N E G I F T T O D AY AT E I U . E D U / G I V I N G . P H P.
eiu.edu/found