ANNUAL
FISCAL YEAR 2019
On the cover: Photo by Chris Radcliffe. Reflection of the UC Tangeman University Center tower. The University of Cincinnati Foundation does not discriminate on the basis of disability, race, color, religion, national origin, ancestry, medical condition, genetic information, marital status, sex, age, sexual orientation, veteran status or gender identity and expression in its programs and activities. The complete Notice of Nondiscrimination can be found at uc.edu/about/policies/non-discrimination.
ANNUAL REPORT FISCAL YEAR 2019
THE UNIVERSITY OF CINCINNATI FOUNDATION
The UC Foundation fundraises on behalf of the University of Cincinnati and UC Health.
TABLE OF CONTENTS
LETTERS
PETER E. LANDGREN, PRESIDENT W. TROY NEAT, CHAIR
A COMMUNITY OF GIVERS
UC AND UC HEALTH SUPPORTERS TRANSFORM LIVES
INVESTMENT OVERVIEW
THE UC ENDOWMENT AND ITS PERFORMANCE
FUNDRAISING REPORT
FUNDRAISING REPORT FROM FISCAL YEAR 2019
LEADERSHIP
UC, UC HEALTH AND UC FOUNDATION LEADERSHIP
THE UNIVERSITY OF CINCINNATI FOUNDATION
ANNUAL REPORT FY19
Neville G. Pinto, PhD PRESIDENT,
4 | THE UNIVERSITY OF CINCINNATI FOUNDATION
PETER E. LANDGREN
It is with immense gratitude that I have the privilege to witness the power of philanthropy each and every day in my role at the UC Foundation. Your investments change lives through the transformational power of student scholarships, by supporting discovery and innovation and advancing patient care. Your gifts allow the University of Cincinnati and UC Health to develop talent, create new opportunities and address the challenges of the future. I wish each of you could see the sheer joy on the faces of young alumni who create their first endowed scholarship, mirroring their own experience as first-generation college students at UC. Their ability to share their UC success with others in perpetuity is transformational in and of itself. Your generosity has a wide-reaching impact—an impact far beyond anyone’s ability to comprehend. You will see in the pages of this report that the dollars you’ve contributed are impressive. I want you to know that the impact of your gifts is even greater than what numbers on a ledger might suggest. Thank you for being a vital part of UC’s Bicentennial year. Two hundred years, and we’re just getting started—all because of you. We can’t wait to engage you in what’s NEXT!
Peter E. Landgren PRESIDENT, UNIVERSITY OF CINCINNATI FOUNDATION VICE PRESIDENT FOR UNIVERSITY ADVANCEMENT, UNIVERSITY OF CINCINNATI
ANNUAL REPORT FY19 | 5
W. TROY NEAT
It is quite noteworthy that during the UC’s Bicentennial year, the UC Foundation staff and Board of Trustees came together and revisited our Foundation’s vision and mission. I am extremely proud that this teamwork resulted in powerful statements that reflect why we exist. Our new vision and mission will serve as a powerful guide as we collectively continue this important work to elevate the University of Cincinnati and UC Health. Without you, we wouldn’t be able to let our new vision—igniting passion to transform lives—lead us. Without you, our new mission—inspiring a community of UC and UC Health supporters through the power of philanthropy—would not be possible. On behalf of my fellow trustees, thank you for your partnership and support. Your generosity makes so much possible. I look forward to seeing what the years ahead will bring as we continue to live out this powerful new vision and mission.
W. Troy Neat CHAIR, UNIVERSITY OF CINCINNATI FOUNDATION BOARD OF TRUSTEES
6 | THE UNIVERSITY OF CINCINNATI FOUNDATION
“THE NEW HOME FOR NEUROSCIENCE— THE UC GARDNER NEUROSCIENCE INSTITUTE—IS SYMBOLIC OF WHAT CAN HAPPEN WHEN WE WORK COLLABORATIVELY WITH THOSE WE SERVE TO TRULY UNDERSTAND WHAT’S MOST NEEDED, AND DELIVER ON THOSE NEEDS FOR OUR COMMUNITY.” Richard P. Lofgren, MD, MPH, FACP PRESIDENT AND CEO, UC HEALTH
ANNUAL REPORT FY19 | 7
IGNITING PASSION TO TRANSFORM LIVES
To inspire a community of UC and UC Health supporters through the power of philanthropy
ANNUAL REPORT FY19 | 9
A Community of Givers UC and UC Health supporters transform lives through the power of philanthropy.
10 | THE UNIVERSITY OF CINCINNATI FOUNDATION
SUPPORTING
EMPOWERING THE NEXT GENERATION OF LEADERS
Donors accelerate giving to scholarships by 47% over FY18 and ultimately invest $22 million in FY19. The Helene Fuld Health Trust awards a $900,000 grant to help UC College of Nursing students pursue master’s degrees.
UC Foundation Trustee Eric Broyles, pictured with Dean Robin Lightner, gives UC Blue Ash College the largest gift in its history—$1 million—for scholarships.
Tom and Karen Cassady celebrate Tom’s tenure and time as chair on the UC Board of Trustees by giving $250,000 to support first-generation students. "Education brings hope into our families," Tom says.
The generosity of donors creates 88 new scholarship funds in FY19. The newly named Elmer Kizer Community Scholars Program expands its impact to provide mentoring and scholarship support for Cincinnati Public School students attending UC. Former Bearcats team physician Dr. Ken Stephens and his wife, Shirley, make a planned gift to establish scholarships for student-athletes pursuing medical professions. Gifts from the Robert and Adele Schiff Family Foundation include $500,000 for UC College of Medicine scholarships supporting the future of primary care. ANNUAL REPORT FY19 | 11
CREATING
BEARCATS
INVESTING IN INNOVATION AND RESEARCH ADVANCES EDUCATION AND HEALTH CARE
THE BEARCAT FAMILY SHARES ITS PASSION AND GENEROSITY DURING DESIGNATED GIVING DAYS
Eight endowed chairs are established at the UC College of Medicine in the areas of anesthesiology, cardiac surgery, integrative oncology, musculoskeletal research, orthopaedic surgery and pediatric ophthalmology. Thank you to the Buckberg, Hayden, Stern and Abrahamson families and the Department of Anesthesiology.
The Huffman Family Foundation advances brain tumor research with a $1 million donation.
Donors support the UC Gardner Neuroscience Institute with $12 million in gifts to research, programs and patient care.
More than 2,650 donors give $176,504 to UC and UC Health during the 2018 #GivingTuesday fundraising campaign.
The second annual UC Day of Giving raises more than $415,000—a 43% increase from 2018—benefiting 321 funds.
More than 200 corporate and foundation partners donate $3.8 million for UC scholarships.
UC’s College of Medicine and Carl H. Lindner College of Business collaborate on research for the treatment of anxiety and depression, thanks to Bill Yung and the Yung Family Foundation’s $2.1 million gift.
UC faculty and staff celebrate 200 years of impact by giving $3,948,794 through its annual faculty/staff fundraising effort.
BUILDING
INNOVATING
NEW SPACES REPRESENT THE INVESTMENT DONORS MAKE IN PEOPLE—STUDENTS, PATIENTS AND THE COMMUNITY
PROGRAMMATIC OPPORTUNITIES PROPEL STUDENTS AND FACULTY TO SOLVE TOMORROW’S CHALLENGES
UC Foundation Trustee Bob Fealy and his wife, Rose, establish an endowed chair for the Center for Entrepreneurship at UC’s Carl H. Lindner College of Business.
Our Bearcats come home to play their first season in the renovated Fifth Third Arena, made possible through philanthropy.
UC Gardner Neuroscience Institute was made possible through $54.5 million in donations, including a lead $14 million gift from the James J. and Joan A. Gardner Family Foundation.
The Kautz Family Foundation supports the new Carl H. Lindner College of Business building with a $1.5 million gift for a collaborative fourth-floor space.
UC’s new Carl H. Lindner College of Business opens. The $120 million building was funded in part by an $11 million gift from the Lindner family and American Financial Group, the largest in the college’s history. $1.5 million from Dean and Laura Godown supports graduate studies in advanced and disruptive technologies at UC’s College of Engineering and Applied Science.
A $2 million joint gift from the Kautz Family Foundation and Woodrow Uible creates the Kautz-Uible Economics Institute at the Carl H. Lindner College of Business.
ANNUAL REPORT FY19 | 14
COMING BEARCATS JOIN FORCES TO CELEBRATE AND HELP OTHERS
UC commemorates its Bicentennial with Community Day, ending with the MOMENTUM light show.
More than 1,800 individuals participate in the third annual Bearcats Dash & Bash 5k/18.19k. The event raises funds for UCATS and the UC College of Law’s Ohio Innocence Project.
The Cincinnati Cancer Center recognizes those touched by cancer during the Knock Cancer Out of the Park event at the Cincinnati Reds game.
Investment Overview Celebrating the transformative impact of UC’s endowment.
ANNUAL REPORT FY19 | 15
UC'S CHIEF INVESTMENT OFFICER
The close of UC’s Bicentennial year is a perfect opportunity to reflect on the transformative power of permanent capital. UC’s endowment is a source of ongoing support that creates opportunities for students, enhances UC’s ability to attract talent and shapes the future by facilitating innovative research. UC’s first endowment was established shortly after the university was founded, and its subsequent 2,200 endowment funds continue to provide ongoing and vital support to UC’s mission. UC’s endowment pool had another strong year in fiscal 2019, protecting value during weak markets in the first half of the year, and then surging forward to end the year at its highest value ever, $1.45 billion. I am excited about the future of UC’s endowment; its power to make an impact has never been stronger. UC’s Investment Office, Investment Committee, the UC Foundation and our generous donors have found multiple ways to increase the endowment’s size and power to generate future investment gains. These efforts have even been celebrated recently by college and university peers with recognition including: a Good Governance Award, an Innovation Award Finalist nomination, a Top 30 University CIO accolade and a Top 100 Public Sector Investor honor. The people devoted to managing and overseeing UC’s endowment are passionately focused on enhancing its ability to support UC in innovating education, building excellence and providing opportunities for students.
Karl Scheer CHIEF INVESTMENT OFFICER, UNIVERSITY OF CINCINNATI
16 | THE UNIVERSITY OF CINCINNATI FOUNDATION
TEN-YEAR PERFORMANCE The past decade has provided a lesson in the ability of a bold, innovative and resolute investment program to drive investment profits. Ten years ago, UC’s endowment totaled $833 million; since then endowment investments have not only generated gains of $879 million but have also delivered $645 million of spendable cash to UC to support scholarships, professorships, research and other key components of UC’s mission. As the U.S. emerged from the 2008 global financial
UC provides existing and new endowment funds
crisis, UC’s endowment was in relatively good
a portfolio of exceptional investments that
shape with healthy exposure to equity in the
could not be replicated today, an award-winning
forms of public stocks and private equity. UC’s
governance structure and the dedication of
global public stocks gained +171% during the
dozens of investment experts within the UC
subsequent 10-year bull market. Incredibly,
Investment Office and on the UC Investment
UC’s private-equity investments gained +274%
Committee. An endowment is not only a high-
during the same decade. This underscores the
impact way to turbocharge your personal
strong stewardship that UC has provided for its
philanthropic interests; as you will see in the
endowment capital for far longer than just the
following fund spotlight, it is also a meaningful
past decade. It also highlights the advantages
way to honor the legacy of those who have had
that a billion-dollar investment program has over
an impact on you and to ensure that their story
smaller institutions and individual investors: due
continues to be told.
to its size, reputation and long tenure in capital markets, UC routinely gains entry into exclusive private-equity funds, premium public stock managers and other investments not accessible to most investors.* *Private-equity is a category of investments in which companies not listed on public stock exchanges are bought and sold in direct, negotiated transactions.
ROLL-FORWARD 2009 - 2019
ANNUAL REPORT FY19 | 17
EXTRAORDINARY LIFE
In 1984, the estate of Lilli Baerman Lange donated $200,000 to UC to create a new endowment in celebration of the remarkable life of her late husband, Willy Lange. Willy Lange was born in 1900 in Berlin. He earned his doctorate from the University of Berlin at age 23. The A few years after Dr. Lange’s faculty under which Dr. Lange studied included famous death, Mrs. Lange decided to professors Wilhelm Traube and Albert Einstein. In honor her husband’s legacy by 1939, under political pressure, the Langes fled Nazi creating a UC endowment providing Germany through Canada to Cincinnati. Dr. Lange permanent scholarship support. This became a researcher and faculty member at decision has not only transformed the UC before becoming a leader in Procter & Gamble lives of countless deserving chemistry Co.’s chemistry department. Following a 25students, it has utilized the multiplying year career at P&G, Dr. Lange rejoined UC’s power of endowment and transformed the faculty and research staff until his death in impact of the gift. Lilli Lange’s donation of 1976. Among his many accomplishments $200,000 has funded $662,000 in scholarships and accolades, Dr. Lange authored in 35 years while the invested principal has 50 technical papers, originated 17 grown to $470,000 and will continue to fund patents and discovered key chemical future scholarships. science underlying today’s most important agricultural pesticides, Endowments extend the impact of gifts by spending for which he received the a portion (around 4%) each year on the mission while Eminent Chemist Award investing the rest to replenish principal, thereby extending by the American Chemical each gift’s impact indefinitely into the future. It is no wonder Society in 1958. that when Mrs. Lange chose to celebrate her husband’s story by creating an endowment, she joined thousands of other UC donors who have transformed their gifts through the impact of UC’s endowment funds. Rebecca Haley, PhD ’18, says support from the Lange Fund allowed her to focus on her laboratory research, write her dissertation and focus on her career goals. Today, she is an assistant professor of chemistry at the University of Wisconsin-River Falls.
18
The Lange Fund has grown from $200k to $470k
1984
2019
while giving away $662k in scholarships.
INVESTMENT PERFORMANCE (As of June 30, 2019)
10.0% 8.9% 8.0%
8.7% 8.0%
8.3%
7.9%
6.7% 6.0% 4.9%
5.1%
4.0%
2.0%
2.0%
2.2%
1.7%
1.5%
0.0%
3-Year
5-Year UC
10-Year
Global Benchmark
25-Year Inflation
ANNUAL REPORT FY19 | 19
Fundraising Report Fiscal year 2019 commitments are organized by purpose, fund type and source.
20 | THE UNIVERSITY OF CINCINNATI FOUNDATION
FISCAL YEAR 2019 COMMITMENTS*
$102,033,118 in Total Funds
48+39+13E PHYSICAL PLANT 12.5%
ENDOWMENT 38.5%
56+21+1382E
FACILITY & EQUIPMENT 13%
UNRESTRICTED 2.5%
CURRENT OPERATIONS 49%
BY PURPOSE
SCHOLARSHIPS & FELLOWSHIPS 21%
PROGRAM ENHANCEMENTS 56%
69+29+2E
CHAIRS & PROFESSORSHIPS 7.5%
BY FUND TYPE
NEW COMMITMENTS 69%
BY SOURCE
*Excludes UC Health contribution, non-government research fund, software gifts-in-kind, campaign-only gifts.
GIFT-IN-KIND (Non-software) 2%
DEFERRED GIFTS 29%
ANNUAL REPORT FY19 | 21
FINANCIAL UC Foundation and UC Health Foundation Combined*
REVENUES 2019 TOTAL 2018 TOTAL Contributions 70,239,924
76,450,224
University support
16,068,023
18,010,286
Fundraising fees
10,000,472
9,670,637
Investment gains, net
24,316,398
29,798,702
Other 1,756,287 TOTAL REVENUES
2,489,308
$122,381,104
$136,419,157
Distributions to University of Cincinnati
52,546,243
60,522,872
Assets released from restriction
18,759,483
1,367,700
Operating expenses
27,847,367
23,667,115
UC Foundation endowment fee
4,906,918
4,755,942
TOTAL EXPENSES
$104,060,011
$90,313,629
Change in present value of annuities payable
(59,780)
784,529
TOTAL EXPENSES AND OTHER DEDUCTIONS
$104,000,231
$91,098,158
CHANGE IN NET ASSETS
$18,380,873
$45,320,999
NET ASSETS, BEGINNING OF YEAR
$564,564,172
$519,243,173
NET ASSETS, END OF YEAR
$582,945,045
$564,564,172
EXPENSES
22 | THE UNIVERSITY OF CINCINNATI FOUNDATION
ASSETS 2019 TOTAL 2018 TOTAL Cash and cash equivalents
11,823,367
23,856,663
Pledges receivable, net of allowance
98,893,052
98,479,600
Investments 477,409,623
443,222,848
Beneficial interest in assets
17,021,565
16,544,386
Property and equipment
1,601,073
2,360,497
Other assets
3,952,818
3,136,435
TOTAL ASSETS
$610,701,498
$587,600,429
Accounts payable and accrued expenses
14,932,854
11,441,536
Agency payable
1,245,981
1,512,725
Trusts held for the benefit of others
1,961,014
1,799,437
Present value of annuities payable
8,298,629
6,823,623
Other liabilities
1,317,975
1,458,936
TOTAL LIABILITIES
$27,756,453
$23,036,257
$582,945,045
$564,564,172
LIABILITIES
NET ASSETS
TOTAL LIABILITIES AND NET ASSETS
$610,701,498
$587,600,429
*Unaudited
ANNUAL REPORT FY19 | 23
UC & UC HEALTH NEVILLE G. PINTO, PhD
RICHARD P. LOFGREN, MD, MPH, FACP
PRESIDENT, UNIVERSITY OF CINCINNATI
PRESIDENT AND CEO, UC HEALTH
UC FOUNDATION CHAIR
PRESIDENT
PAST CHAIR
TREASURER
W. TROY NEAT
PETER E. LANDGREN
ROBERT L. FEALY
THOMAS D. FREEMAN
Cincinnati, OH
Cincinnati, OH
Chicago, IL
Cincinnati, OH
INTERIM SECRETARY CALEB D. WHITTED
Cincinnati, OH
UC FOUNDATION LEADERSHIP Peter E. Landgren
Stephen A. Rosfeld
PRESIDENT VICE PRESIDENT FOR UNIVERSITY ADVANCEMENT, UC
VICE PRESIDENT FOR DEVELOPMENT
Linda E. Bledsoe VICE PRESIDENT FOR HUMAN RESOURCES
Julie L. Engebrecht ASSISTANT VICE PRESIDENT FOR COMMUNICATIONS AND MARKETING
Thomas D. Freeman VICE PRESIDENT AND CFO
Jennifer L. Heisey VICE PRESIDENT FOR ALUMNI AND DONOR EXPERIENCE
24 | THE UNIVERSITY OF CINCINNATI FOUNDATION
Carrie E. White VICE PRESIDENT FOR ADVANCEMENT SERVICES
Caleb D. Whitted ASSISTANT VICE PRESIDENT FOR PRESIDENTIAL INITIATIVES
Michael D. Zenz VICE PRESIDENT FOR DEVELOPMENT, ACADEMIC HEALTH CENTER AND UC HEALTH
TRUSTEES
Jerry C. Kathman
John M. Tew Jr., MD
Shakila T. Ahmad
Ruthie S. Keefe
Sandra S. Wiesmann
Barbara W. Kellar
Andi K. Wiot
Stephen E. Kimpel
Gregory C. Wolf
Robert J. King Jr.
Andrea I. Zahumensky
Mason, OH
Peter A. Alpaugh Cincinnati, OH
John B. Berding Cincinnati, OH
Elroy (El) Bourgraf Naples, FL
Eric C. Broyles, Esq. Ft. Washington, MD
Robert R. Buck Naples, FL
Kenneth V. Byers Jr. Cincinnati, OH
Phil D. Collins Cincinnati, OH
Patricia Klingbiel Connell Elmhurst, IL
Sean P. Connell Elmhurst, IL
William J. Davis Cincinnati, OH
Todd C. DeGarmo Washington, DC
Dianne G. Dunkelman Cincinnati, OH
Leigh R. Fox Cincinnati, OH
Jerry L. Fritz Bella Vista, AK
Brian E. Hall Cleveland, OH
Carrie K. Hayden Steamboat Springs, CO
Stuart G. Hoffman, PhD Pittsburgh, PA
Kathryn A. Hollister Cincinnati, OH
Gyan Jha
Louisville, KY
Gary D. Johns Cincinnati, OH
Timothy E. Johnson, PhD Cincinnati, OH
Laurence F. Jones III Cincinnati, OH
Joseph P. Judge Washington, DC
Cincinnati, OH Cincinnati, OH Cincinnati, OH Columbus, OH Cleveland, OH
Eva L. Maddox Chicago, IL
Rae A. Mang Needham, MA
Darrell D. Miller, Esq. Los Angeles, CA
Joffre P. Moine II Santa Barbara, CA
William B. Monnig, MD
Crestview Hills, KY
Shenan P. Murphy Cincinnati, OH
Russell C. Myers Cincinnati, OH
Jacqueline C. Neumann Cincinnati, OH
Cora K. Ogle, PhD Cincinnati, OH
James F. Orr Cincinnati, OH
Michael J. Paxton Naples, FL
Ellen Rieveschl Covington, KY
Alvin F. Roehr Jr. Cincinnati, OH
Ryan M. Rybolt Cincinnati, OH
James A. Schiff, PhD Cincinnati, OH
Michael T. Schueler Maineville, OH
Richard C. Seal Cincinnati, OH
Shimul A. Shah, MD Cincinnati, OH
Tony L. Shipley Cincinnati, OH
Cincinnati, OH Bethesda, MD
Cincinnati, OH Dallas, TX
TRUSTEES EMERITI
Eva L. Maddox*
Eugene R. Allspach*
Needham, MA
Bellaire, TX
Clark E. Beck Sr., PE, ScD* Dayton, OH
Chicago, IL
John M. Mang* Thomas E. Mischell* Cincinnati, OH
Jerome P. Montopoli* Covington, KY
James E. Blakeney*
Marjorie Motch*
Louisville, KY
Henry T. Brown*
Valerie L. Newell*
EX-OFFICIO TRUSTEES
Jack E. Brown*
H.C. "Buck" Niehoff*
Otto M. Budig Jr.*
Yvonne C. Robertson*
Daniel P. Carmichael*
James E. Schwab*
Thomas E. Dewey*
S. Jay Stewart
David B. Dillon*
J. Clay Stinnett
John S. Domaschko*
Richard "Dick" E. Thornburgh*
Robert F. Ambach Cincinnati, OH
Jeffrey C. Bauer, DBA Cincinnati, OH
Andrew T. Filak Jr., MD Cincinnati, OH
Thomas D. Freeman Cincinnati, OH
Richard J. Harknett, PhD Cincinnati, OH
Sandra W. Heimann Cincinnati, OH
Lawrence J. Johnson, PhD
Lawrenceburg, IN
Peter E. Landgren Cincinnati, OH
Richard P. Lofgren, MD Cincinnati, OH
Neil J. MacKinnon, PhD Cincinnati, OH
Kristi A. Nelson, PhD Cincinnati, OH
Neville G. Pinto, PhD Cincinnati, OH
William “Wym” Portman lll Cincinnati, OH
Gregory W. Rouan, MD Cincinnati, OH
Dayton, OH
Weston, MA
Cincinnati, OH Cincinnati, OH
Indianapolis, IN Cincinnati, OH
Kansas City, MO Covington, KY
John B. Goering* Cincinnati, OH
Nancy R. Hamant, EdD* Cincinnati, OH
Donald C. Harrison, MD* Cincinnati, OH
Robert A. Heimann* Cincinnati, OH
Thomas H. Humes Jr.*
Cincinnati, OH
Cincinnati, OH Cincinnati, OH Cincinnati, OH Cincinnati, OH
Mercer Island, WA Naples, FL
Bellevue, KY
Palm Beach, FL
Woodrow "Woody" H. Uible* Cincinnati, OH
Myron E. Ullman III* Montrose, CO
Margaret "Peg" K. Valentine* Cincinnati, OH
Michael D. Valentine* Cincinnati, OH
Edward W. Wedbush* Rancho Santa Fe, CA
Marvin P. Kolodzik*
Jeffrey P. Williams*
David M. Lance*
Steven A. Wilson*
Louis H. Lauch*
Frank C. Woodside lll, MD, JD*
Cincinnati, OH Cincinnati, OH Cincinnati, OH
Jerry P. Leamon* Cos Cob, CT
Doloris F. Learmonth, Esq.* Cincinnati, OH
William E. Lower* Cincinnati, OH
New York, NY
Ft. Lauderdale, FL
Cincinnati, OH
Jeffrey L. Wyler* Cincinnati, OH
Wilbert L. Ziegler* Ft. Mitchell, KY
Anthony Zingale* Palo Alto, CA
Randall "Randy" E. Smith Cincinnati, OH
* Denotes Herschede Society as of June 30, 2019
ANNUAL REPORT FY19 | 25