UNIVERSITY ADVANCEMENT ANNUAL REPORT 2017-18
A message from the PRESIDENT Dear Friends of EWU: I’m delighted I get to meet so many of you at Eastern events and activities around the state. It’s always a joy to tell our story as EWU campuses grow and evolve every year. One thing that never changes, though, is our profound commitment to students, our mission to transform lives and impact the communities we serve. Many of our students are the first in their families to attend college. Many are military veterans. Many are nontraditional students, many from underrepresented communities. They need financial support. To help our students succeed, three years ago, I challenged the Eastern community to contribute to our Inspire Awesome campaign. I’m thrilled to say that, last year, we exceeded our $5 million goal: we raised over $5.5 million for student scholarships. Scholarships help to keep our students enrolled. They enable students to focus on academics without worrying about where tuition money will come from— or how they’re going to pay for their next meal. Our scholarship recipients have gone on to great things: they’ve become successful engineers, teachers, health professionals and business owners. They’re the backbone of our professional workforce. This year, as we build a new Interdisciplinary Science Center, open a beautifully remodeled student union, and plan for moving into the spectacular Catalyst building in Spokane, our students are excitedly embarking on a new year of their university education. We’re helping to transform their lives and the lives of their families. But we can’t fulfill our mission—and we can’t help our students fulfill their dreams—without you. THANK YOU for your unwavering support of our students and of all things Eastern. Go Eagles!
Mary Cullinan President
A message from the FOUNDATION CHAIRMAN WOW…What an awesome time to be an Eastern Washington University Eagle! First, and foremost, Eastern Washington University enrolled a record number of first-time freshman for the fall 2018 quarter, and the overall student body headcount and diversity remain strong. In addition, the updated Pence Union Building is nearly complete, the new Interdisciplinary Science Center (ISC) is underway, and the state-of-art Catalyst Building project is moving along. With the addition of phenomenal new and energetic leaders at EWU, momentum and positive energy is as high as we have seen in years! As the EWU Foundation is a separate nonprofit arm of the university, our sole mission is to engage alumni and friends in the philanthropic support of Eastern. Even though this is a voluntary labor of love, we take this responsibility seriously and with full-fledged Eagle red passion and pride. The Foundation recently celebrated its 40th anniversary at the Red Tie Gala annual event. At this event, we were also able to celebrate with, and recognize, the development staff for a record-breaking year by bringing in over $5.7 million in private support to provide for scholarships to our greatest assets–the students at Eastern! Moving forward, with tremendous goals and opportunities on the horizon, I would be remiss not to mention that in order to continue to meet and exceed our objectives, we need the continued efforts of the entire team–development staff, volunteer board of directors and committee members, university staff, and our donors and benefactors. The combined efforts of this group will be key to driving EWU to new heights. As a proud Eastern alumnus, and a member of the EWU Foundation’s board of directors, I have always been impressed by the desire and commitment that the volunteer board of directors bring to the table, as well as that of the development team and our university community. At this time, I’m seeing a renewed desire and passion that is becoming infectious, and because of this I envision greater things happening as we move forward. Thanks to everyone for your support and effort to improve the educational opportunities and student life for those at Eastern. Go Eagles!!!
Mark Thompson
Mark Thompson, ’86 CBPA EWU Foundation Chair
M
Mission
R
Foundation Responsibilities
University Advancement builds a compelling case for choice and support of Eastern Washington University among all of its constituents by communicating and advocating for the university’s distinctive regional position, role and contributions, thus forging relationships and securing commitments required to advance the institution’s mission and priorities.
The EWU Foundation has a responsibility to be accountable to our constituencies; to our board of directors (who serve without remuneration and at their own expense); to EWU and its leadership, faculty, staff and students; to our donors; to our volunteers; and to the advancement staff. The following items are available for review: • Financial audit prepared by external auditor, Eide Bailly LLP; • Annual report of giving and activities; • Asset investment performance reports; • Policies on disbursement of gift funds, investment policies and expenditure guidelines; and • Agreement for service between EWU and the EWU Foundation.
$259,831
DONATION AMOUNTS BY STATE
Raised by Giving Joy Day last year:
Alaska Hawaii
n <$500 n $500-5,000 n $5,000-10,000 n $10,000-20,000 n $20,000-50,000 n $50,000-100,000 n $100,000-500,000 n $500,000-1,000,000 n >$1,000,000
301 endowed funds. Total of gifts received:
$3,711,510
10,407
gifts received.
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INVESTMENT REPORT AND COMPARATIVE ENDOWMENT PERFORMANCE AS OF JUNE 30, 2018
S
Strategy
CASH 0.1%
HIGH YIELD 5.1%
FIXED INCOME 30.2%
ALL CAP (U.S.) 55.4%
INTERNATIONAL EMERGING INTERNATIONAL 4.4% DEVELOPED 4.8%
ACTUAL ASSET ALLOCATION
EWU FOUNDATION ENDOWMENT POOL Funds in the EWU Foundation endowment are managed as a single investment. Like an individual who invests in a mutual fund, an endowed fund purchases units in the endowment pool and participates in a per unit allocation of investment pool earnings and distributions. This investment and comparative endowment performance report illustrates the performance of the pooled investment for the fiscal year July 1, 2017 â&#x20AC;&#x201C; June 30, 2018.
INVESTMENT OBJECTIVES AND OVERSIGHT The EWU Foundation manages the investment pool with direct oversight by the EWU Foundation investment committee. The committee actively works with Northern Trust Institutional Investment Services to select asset allocation and achieve a well-diversified asset mix that balances maximum return with acceptable risk over time.
Allocations reflect the long-term goal to produce a stable and predictable payout stream.
CASH 0.1%
FIXED INCOME 35.3% EQUITY 64.6%
ALLOCATION RANGE
FIXED INCOME 35% EQUITY 65%
RANGE FIXED INCOME EQUITY 20-40% 60-70%
TARGET ALLOCATION
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P
■ EWUF ENDOWMENT RETURN
Performance
■ EWUF BLENDED BENCHMARK ■ NACUBO COMMONFUND * STUDY OF ENDOWMENTS
PERFORMANCE BENCHMARKS The Foundation endowment investment goal is to match the return of a benchmark consisting of public market indices weighted to asset allocation targets.
* An industry standard, the NACUBOCommonfund Study of Endowments is based on data received annually from over 800 U.S. college and university endowments and affiliated foundations.
EWU ENDOWMENT RETURNS COMPARED TO BENCHMARKS All figures represent returns net of fees
8.58
8.77 FY18
TBA
11.88
12.06
11.6
FY17
1.64
1.58
-1.0
3.50
FY16
4.01
2.3
FY15
17.32
16.42 FY14
15.5
14.89
14.54
11.7
FY13
$20M
V
Value $15M
INVESTMENT AND DISTRIBUTION PERFORMANCE FOR THE PERIOD JULY 1, 2017 TO JUNE 30, 2018
$10M
• EWU endowment value at all-time high: $22.6 million • The endowment fund distributed $742,640 in support of scholarships and programs at Eastern Washington University
$5M
• Endowment designated gifts in fiscal year 2018 of over $1,056,352
2013 2014 2015 2016 2017 2018
ENDOWMENT MARKET VALUE
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F Y 18 FOUN DAT IO N F I N A N C I A L
HIGHLIGHTS ASSETS Cash and cash equivalents Certificates of deposit Promises to give, net Other assets Property and equipment, net Assets held under split-interest agreements Beneficial interest in charitable trusts held by others Beneficial interest in perpetual trusts Investments TOTAL ASSETS LIABILITIES AND NET ASSETS Accounts payable Liabilities under split-interest agreements TOTAL LIABILITIES NET ASSETS Unrestricted Temporarily restricted Permanently restricted TOTAL NET ASSETS TOTAL LIABILITIES AND NET ASSETS
2018 2017 $2,295,193 $1,805,977 1,764,184 1,738,744 618,821 591,184 155,759 30,415 245,442 248,258 202,475 202,971 401,395 397,034 2,460,878 2,457,490 22,818,122 20,988,154 $30,962,269
$28,460,227
$48,142 $110,342 116,789 108,586 $164,931 $218,928 $528,703 $445,193 9,651,732 8,203,906 20,616,903 19,592,200 $30,797,338
$28,241,299
$30,962,269
$28,460,227
REVENUE, SUPPORT, AND GAINS Contributions Net investment return Marketing revenue Gross special events revenue Less cost of direct benefits to donors Other revenue Support provided by Eastern Washington University Change in value of split-interest agreements held by the Foundation Distributions from and change in value of beneficial interests in assets held by others Net assets released from restrictions
$3,711,510 $2,794,131 1,864,326 2,280,331 412,712 505,518 364,108 524,411 (264,753) (423,803) 99,355 100,608 6,402 6,679 1,395,834 1,104,473 (950) 189,201 67,364 85,440 - -
TOTAL REVENUE, SUPPORT, AND GAINS
$7,556,553 $7,066,381
EXPENSES Program services expense Support provided to/for Eastern Washington University 3,079,149 2,839,887 Support services expense Management and general 1,238,925 972,505 Fundraising and development 682,440 608,239 TOTAL SUPPORTING SERVICES TOTAL EXPENSES CHANGE IN NET ASSETS NET ASSETS, BEGINNING OF YEAR NET ASSETS, END OF YEAR
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1,921,365 1,580,744 5,000,514 4,420,631 2,556,039 2,645,750 28,241,299 25,595,549 $30,797,338 $28,241,299
$
Making the Most of Scholarships
“Being an Eastern Eagle means being part of a family, but also making an impact!” After a near-deadly car accident in her first year of college, Josie Ledbeter discovered what is truly important to her – impacting others’ lives. “In my opinion, I feel success is being able to look back on life, knowing that you brought good to the world and a brighter future for others,” Josie said. Josie, a deserving and grateful scholarship recipient, is pursuing a degree in communication studies. She is also studying to receive a teaching English to speakers of other languages certificate. She has studied abroad in Mazatlán, Mexico, to improve her Spanish since her dream is to work with students from Central
and South America. While Josie keeps busy with her studies and earning her spot on the dean’s list, she also fills her time with volunteer opportunities around the community. Josie volunteers with EWU’s Asia University America Program, meeting with exchange students to help them adjust to the new culture and language. She’s found this to be a rewarding experience that has taught her about other cultures. During 2017 fall quarter alone, Josie dedicated more than 40 hours of her time to volunteering. Josie has expressed deep gratitude to the donors of her scholarship. She said they are not only investing in her future, but her future students’ lives as well. “Earning a scholarship is such an
Functional Expenses
honor that I take to heart, knowing there are generous people investing in the lives of students like myself!”
Total Scholarship Support $1,500,000
$2,500,000
n 2017 n 2018
$1,200,000
$2,000,000
$900,000 $1,500,000
$600,000 $1,000,000
$300,000
$500,000
MANAGEMENT & GENERAL
FUNDRAISING
UNIVERSITY PROGRAM SUPPORT
STUDENT SCHOLARSHIP
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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Endowed gifts prepare students to make profound contributions to our global community and ensure the future growth and quality of an education at EWU.
2018-19 FOUNDATION BOARD OF DIRECTORS Alexis Alexander Gordon Budke Ron Dalla (EWURA Representative) Mike Ekins (EWUF Immediate Past Chair) Jana Erny John Francisco Karla Gehlen Curtis Griffin Otto Guardado Krisann Hatch (EWUF Vice Chair) Margo Hill Marc Hughes Claudette Kenmir Jay Kirkpatrick
Lisa Poplawski Interim Sr. Associate Vice President of Philanthropy 509.359.4555 lpoplawski@ewu.edu
Richard Marll (EWUF Secretary/Treasurer) Richard Mount Mike Mumford Kim Pearman-Gillman (BOT Representative) Corey Ross Yvonne Smith Jeff Stannard (EWUAA Representative) Stu Steiner Steve Storey Mark Thompson (EWUF Chair) Tom Tiffany Vin Vu Brett Wright
Financial questions? Chandra Schumacher Interim Executive Director, EWU Foundation 509.359.6890 cschumacher@ewu.edu
EX-OFFICIO (non-voting) Dr. Mary Cullinan – President, EWU Lisa Poplawski – Interim Sr. Associate Vice President, University Advancement Mary Voves – Vice President, Business and Finance, EWU Chandra Schumacher, Interim Executive Director, EWU Foundation Judge James Murphy
Have you considered including an endowment in your estate plan? Laura Thayer Sr. Director of Planned Giving 509.359.6901 lthayer3@ewu.edu
Northern Trust, founded in 1889, is the current investment manager for the EWU Foundation endowment.
EWU Foundation | 102 Hargreaves Hall Cheney, WA 99004-2413 | 509.359.7099 | ewufoundation.com Please recycle.
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