FIU Advancement Annual Report

FIU FOUNDATION, INC. ANNUAL REPORT 2017-2018

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2017-2018 | ANNUAL REPORT

A MESSAGE FROM LEADERSHIP Dear FIU Family, What started in 1965 from unlikely beginnings, became a transformational university that has used its vision as the guiding force to build and grow a lasting legacy. Our FIU has flourished into a public institution that prides itself on values that encompass where we came from and where we are heading. As the South Florida community’s anchor institution, we are true advocates for student success, research preeminence, cultural diversity, and community engagement.

The FIU Foundation represents drive, the drive to create meaningful impact and the drive to make a difference locally, nationally, and globally. This year’s Annual Report focuses on understanding the FIU Foundation, as an entity that strives each day to better student learning, innovation, and collaboration. In our efforts to build a lasting legacy, we will continue to carry the hope we have in FIU to advance knowledge and create opportunity through our alumni, donors, and community partners. Together, we will continue our commitment to high-quality teaching, state-of-the-art research and creative activity, and collaborative engagement with our local and global communities.

While our presence has been seen and our voice has been heard, our story is really just beginning. We cherish the support of our partners and friends, and look forward to FIU’s unwritten chapters. We are both confident and excited for the years ahead as we work to reach the next horizon!

Sincerely, Richard Brilliant ’93

Howard R. Lipman

Board of Directors

CEO, FIU Foundation, Inc.

Chairperson, FIU Foundation, Inc.

Senior Vice President, University Advancement

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FIU FOUNDATION, INC.

OVERVIEW

$3.5 million was raised for First Generation scholarships, which More than

went to more than 1,500 students.

•

This is more than three times the number of

•

The average award was $2,250

•

These funds helped students move toward

$6,990,615 for student scholarships

scholarships awarded last year!

timely graduation. Our improved timely

graduation rates are reflected in our state

performance metrics, which led to our being ranked #2

for the State.

$11M+

in new commitments from individuals

FIU is ranked #1 among public universities in Florida for faculty and staff giving.

The Ignite campaign for faculty and staff had more than a 73% participation rate and raised over $8.6 million — more than four times last

35 new endowments were pledged in FY 17-18 with a value of $7,274,000. Since 2009, 144 new endowments have been

pledged & funded, and the value of FIU’s overall endowment has more than doubled.

year’s $2.1 million.

$57M+

$33M

$25M

$10M+

$10M+

second highest

second highest

largest number of

in new planned

in new and/or

fundraising year for FIU

year for cash gifts donated to

the university

$1 million+ gifts — 15 donations

giving commitments, including three gifts from Foundation

first-time

donor gifts

Board members

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2017-2018 | ANNUAL REPORT

PHILANTHROPIC HIGHLIGHTS $1 million from Jorge M. Peréz and Darlene Boytell-Peréz, ARNP ’89, MSN ’96 to the Honors College to keep high-achieving students in South Florida

$600,000 from the John S. and James L. Knight Foundation to help displaced students from Puerto Rico with an additional $200,000 from the Carnegie Corporation of New York

$2 million from Mohsin and Fauzia Jaffer to create a Center for Muslim World Studies

$1 million lead gift from CasaCuba Board Chairman, Agustín R. Arellano, Sr., to support CasaCuba

$1.2 million from Bridgegate Pictures Inc. to prepare students for careers in augmented reality — predicted to be a $100 billion industry by 2025

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FIU FOUNDATION, INC.

STUDENT SUCCESS At FIU, we proactively identify problems that could stand in the way of students moving through FIU. And we provide guidance and solutions to help students

overcome them. Seeing through the eyes of our students, we tackle challenges

from a student-centered perspective and implement practices that keep them on the path to graduate in four years, while equipping them for their next steps as professionals, entrepreneurs, or graduate students.

For some students, just a few hundred dollars can mean the difference between

completing their course load and graduating on time, dropping out to earn enough money to return to FIU, or not finishing their degree at all. Nationally, approximately 15 percent of college students drop out with 75 percent of their credits completed, mainly for financial reasons.

But at FIU, these students have the opportunity to receive completion scholarships FIU's Wisdom Offor

that could change their outlook on the final year of school. The Braman Family

Foundation Completion Scholarships offer students in their final year at FIU and Miami Dade College $1,000 awards to help them persist to graduation.

Wisdom Offor (’18), an FIU Track and Field star who recently earned a bachelor’s degree in sports and fitness, was one of the first recipients of the Braman Family Completion Scholarship. Offor says earning the Braman Family Completion Scholarship, which also provided him with a success coach to plan his short- and long-term goals, “was a blessing.” Now, he is headed to nursing school and hopes to combine his degrees in a career as an orthopedic nurse working with athletes.

For FIU, student success does not only mean scholarships. In times of need, we are also ready to lend a helping hand when the going gets tough for our students.

When hurricanes Irma and Maria devastated the Caribbean during the 2017

season, they left a great need among students in their wake. FIU was quick to

respond in a number of ways. We partnered with the John S. and James L. Knight Foundation and the Carnegie Corporation of New York to support displaced students from Puerto Rico. Grants from the Knight Foundation and Carnegie

Corporation provided funding for tuition, housing, books, meals, and other costs associated with relocation.

FIU has a deep commitment to community. In times of anguish and turmoil, it

is natural for the university to step in to help. While Hurricane Maria exacted an emotional and personal toll in the lives of Puerto Rican students, they were not

alone. FIU, the Knight Foundation, and the Carnegie Corporation made it possible for these students to continue their academic journeys. We became their safe space, their home, and their opportunity to remain resilient.

FIU students from Puerto Rico: Mariela Serrano (left) and Sarah Colon (right)

Our students have a bright future in the South Florida community and beyond. To learn more about how FIU supports student success, visit give.fiu.edu.

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2017-2018 | ANNUAL REPORT

RESEARCH PREEMINENCE FIU is working on the front lines to address public health crises and natural disasters.

Our researchers are finding cures and developing life-saving interventions, and

they are tackling some of the greatest challenges to the sustainability of our planet.

To continue this work, we need to attract and retain top scholars who can focus on targeted areas and find solutions. Our own faculty are getting behind this need, helping FIU to secure the necessary human resources.

This past fiscal year, Professor Emeritus Walter Goldberg and his wife, Rosalie, created the Walter and Rosalie Goldberg Professorship in Tropical Ecology in the College of Arts, Sciences & Education. This specific professorship is designed to expand FIU’s

growing expertise in conservation, sustainability, resilience, and human disruptions to tropical ecosystems like invasive species.

Professor Emeritus Walter M. Goldberg and Rosalie Goldberg

The Goldbergs’ desire is to open this position to any professor within the field of tropical

ecology. By broadening the range of candidates, the Goldbergs have made it possible for the university to attract an expert

with the breadth needed to solve the many challenges facing

ecosystems across the world. In addition to advancing solutions to tropical ecology’s biggest problems, the person who fills the professorship will act as the FIU spokesperson on these issues.

A solutions center for a better global future, FIU is also attracting investments from community members who share our research mission.

When Aquarius Reef Base, the world’s only undersea laboratory, was the

target of a government shutdown in 2013, FIU stepped in to save it. Aquarius has produced more than 800 research papers, hosted NASA astronauts for training, and been home to more than 100 missions, all while allowing

“aquanauts” to stay underwater for days and weeks at a time. FIU took

over its operations, but still, there was a concern about how the university could support it in the years ahead. That’s when Miami businessperson

Manuel D. “Manny” Medina, passionate about the project, stepped in and made a donation to support the on-land marine base.

“My family and I have been blessed to gain so much from the ocean,” Medina

explained. “By helping fund Aquarius, we’re fortunate to be able to play a role in ensuring that my grandchildren and great grandchildren can continue to enjoy all that the ocean offers.”

The Medina family’s gift also provided funding to develop a viable business plan for

the Medina Aquarius Program and to launch an entirely new education and outreach program that has reached more than a million school-aged children worldwide.

From creating faculty positions dedicated to the pursuit of new lines of research to

invigorating a program that helps us better understand and preserve our environment, our philanthropic partners are securing FIU’s role as a preeminent research institution. To learn

more about FIU’s research preeminence, visit beyondpossible.fiu.edu/preeminent-programs/.

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FIU FOUNDATION, INC.

SNAPSHOT OF GIVING

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2017-2018 | ANNUAL REPORT

Fiscal Year 2017-2018

$5.2M

$5.2M

ALUMNI

ORGANIZATIONS

$6.1M FOUNDATIONS

$15.3M

$25.3M

CORPORATIONS

INDIVIDUALS

44%

27%

11%

9%

9%

$57.1M GRAND TOTAL 7

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FIU FOUNDATION, INC.

POINTS OF EXCELLENCE Carnegie Institution R-1 university FY 2017

$127M

in research awards

$177M

in research expenditures

#1 in U.S. for awarding bachelor’s and master’s degrees to Hispanic students and a national leader in granting STEM degrees to minorities.

The National Science Foundation (NSF) has awarded FIU and partners UCF and USF a $5 million, five-year grant for the collaborative Florida IT Pathways to Success project, which includes $1 million per school for IT scholarships.

FIU is ranked as one of the top 100 public universities in the country by U.S. News & World Report.

“10 Cool Colleges for Entrepreneurs” FIU has been named one of the

by Fortune Small Business magazine.

FIU is the youngest university awarded a chapter of Phi

Beta Kappa, the nation’s oldest academic honor society.

FIU Panthers constitute the fastest-growing

university alumni group in Miami-Dade County (200,000+ alumni).

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2017-2018 | ANNUAL REPORT

NEW & NOTABLE

16

patents

1st

Custom Content Programming

With 16 patents and commercial ventures in 2016 and an increase in invention disclosures of over 100%, FIU may make the list of the top 100 universities in the world to be granted U.S. utility patents.

In February, FIU’s Center for Leadership outranked the Ivy League schools to garner two prestigious LEAD2017 Awards; considered the “Oscars of H.R.,” FIU won 1st place for Custom Content Programming and #2 in the fiercely-competitive Open Enrollment Programs category.

Recognition in all

12

Categories

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out of 342 in the 2017 Brooking Institution's rankings

RECOGNIZED as the Engaged Campus of the Year at the Florida Campus Compact Annual Awards Gala

The only university in the country this year to receive recognition in all 12 categories of The Chronicle of Higher Education’s “Great Colleges to Work For” survey, U.S. News & World Report recognized our FIU as one of the top universities in the country!

Recognizing our success in providing access to higher education across the socioeconomic spectrum, in 2017 the Brookings Institution ranked FIU sixth out of 342 public universities for stewardship of public funds in two categories – producing research, and providing low-income students with paths to opportunity. Only 20% of the nation’s public universities accomplish both objectives.

In recognition of our commitment to community engagement and public service, our FIU was recognized as the Engaged Campus of the Year at the Florida Campus Compact Annual Awards Gala! FIU’s nomination highlighted a number of community engagement initiatives, including the Green Family Foundation NeighborhoodHELP® program. ACCESS, the university’s partnership with Miami-Dade County Public Schools, also received recognition as a partnership that produces measurable results while enhancing higher education. This is FIU’s second time being recognized as the Florida Campus Compact Engaged Campus of the Year.

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FIU FOUNDATION, INC.

For fiscal year 2017-2018, the FIU Foundation’s investment portfolio returned 8%. The FIU Foundation’s endowment market value as of June 30, 2018 was $209 million. Four percent of the endowment market value, averaged over the 12 consecutive quarters ended December 31, 2017, was authorized by the Foundation board for spending in fiscal year 2018-2019.

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2017-2018 | ANNUAL REPORT

Florida International University Foundation and Subsidiaries

Statement of Financial Position ASSETS Cash and investments

LIABILITIES AND NET ASSETS $290,320,297

Liabilities

$14,003,545 358,168,934

Contributions receivable, net

64,009,445

Net Assets

Fixed assets, net

17,424,279

Other assets

418,458

Total assets

$372,172,479

Total liabilities and net assets

$372,172,479

Statement of Activities and Changes in Net Assets

REVENUES Contributions Investment gains, net

EXPENSES $27,157,527 19,908,559

Other revenues

6,216,934

Total revenues

$53,283,020

Support of university programs and activities Administrative, fundraising and general expenses Total expenses

$31,059,644 10,247,967 41,307,611

Other activity

(883,486)

Change in net assets

11,091,923

Net assets, beginning of year

347,077,011

Net assets, end of year

$358,168,934

Please note: These figures agree with the audited financial statements, which are presented on a full accrual basis.

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FIU FOUNDATION, INC.

FIU FOUNDATION To activate FIU’s role as a WorldsAhead institution, the FIU Foundation aims to connect people, passions, and possibilities through

philanthropy, financial stewardship, and engagement. The Foundation strives to enrich the quality of education at the university by

supporting scholarships, endowed chairs and professorships, and other programs that rely on private funding. The Foundation accepts charitable donations to support FIU in its goal to be a leading urban public research university that is focused on student learning, innovation, and collaboration.

With more than $370 million in total assets, a portion of which is endowed to support academic initiatives, the Foundation provided

approximately $30 million in fiscal year 2017-2018 to advance FIU’s mission by providing funds to support a diverse student population, exceptional faculty, cutting-edge research, modern facilities, and collaborative engagement with our local and global communities.

The Foundation is managed by a board of directors that act as the governing body of the organization. They are responsible for oversight and management of the affairs of the Foundation, in accordance with the Foundation’s articles of incorporation and bylaws.

IMPACT

Foundation’s Investment Portfolio Allocation Asset Class

June 30th Allocation

Asset Characteristics

Public Equity

43.2%

Capital appreciation, global diversification; highly liquid

Private Equity

10.6%

High return potential; illiquid

Diversified Growth

20.9%

Equity-like return potential with lower volatility; semi-liquid

Inflation Sensitive

8.2%

Inflation sensitivity and income generation; mixed liquidity

Deflation Sensitive

17.2%

Capital preservation and income generation; highly liquid

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2017-2018 | ANNUAL REPORT

INVESTING IN THE FUTURE OF FIU An endowment is an investment in the future of FIU and a way for a donor to leave a permanent legacy. Endowments represent money that is donated so that it can be invested to grow the principal and provide additional income for future investing and

expenditures. When an endowment is established with a new donation, the gift is invested with two goals in mind: to provide

spendable income for the donor’s specified purpose, and to preserve the purchasing power of the endowment. Any investment return over allowed spending is channeled back into the fund to increase growth.

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FIU FOUNDATION, INC.

FIU FOUNDATION, INC. | 2017-2018

BOARD OF DIRECTORS Thank you to all of our directors, past and present, for their time, leadership and dedication in support of FIU and the FIU Foundation, Inc.

BOARD LEADERSHIP Chairperson

Francisco Gonzalez, CPA ’90

Claudia Puig

Carnival Corporation

Managing Principal

Athletics Subcommittee, Co-Chair

President and General Manager of Local Media

Vice Chairperson

Noel J. Guillama-Alvarez ’99

Mark B. Rosenberg

Benchmark

President & CEO

President

Richard Brilliant ’93 Chief Audit Officer

Humberto “Burt” Cabañas ’76 Chairman and CEO

Development Committee, Chair

Morrison, Brown, Argiz & Farra, LLP

Quantum Innovations, Inc.

Campaign Budget Task Force, Chair

Univision Communications Inc.

Florida International Univeristy

Adalio T. Sanchez ’87

Michael A. Kappitt ’92

S Group Advisory, LLC

President

Campaign & Foundation Marketing, Chair

Foundation Enterprise Planning Committee, Chair

Finance Committee, Chair

Juan J. Martinez ’90, MAcc ’93

Wasim J. Shomar

Secretary

Vice President, CFO, Treasurer

Chairman and CEO

Treasurer

Andre L. Teixeira ’92, MAcc ‘93 The Graham Companies

EVP & Chief Financial Officer

Jill M. Granat, Esq. ’87

Restaurant Brands International

Carrabba’s Italian Grill

John S. and James L. Knight Foundation

The Lynx Companies

Investment Subcommittee, Chair

Membership & Board Management Committee, Chair

General Counsel

Esther L. Moreno, Esq. ’95

Chief Executive Officer

Corporate Practice Group Shareholder

Howard R. Lipman

FIU Foundation, Inc. Steven M. Berwick, CPA ’74 Kaufman, Rossin & Co., P.A.

Principal, Audit & Litigation Counsulting Audit Subcommittee, Chair

Akerman, LLP

Bylaws Special Committee, Chair

Royal Castle Builders, LLC Principal

Real Estate Subcommittee, Chair

Moss & Associates

Executive Vice President

Moss Foundation, Inc., President

Athletics Subcommittee, Co-Chair T. Gene Prescott

Chief Operating Officer

President

Governmental Relations Committee, Co-Chair

Elliot Stone

Chad Moss ’94

Thomas M. Cornish ’85 BankUnited, Inc.

President

The Biltmore Hotel Governmental Relations Committee, Co-Chair

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2017-2018 | ANNUAL REPORT

DIRECTORS Stewart L. Appelrouth, CPA MS ’80 Appelrouth, Farah & Co., P.A. Co-Founder & Principal

Robert M. Namoff ’74 Allied Universal Corporation Chairman of the Board

Joerg Reinhold Florida International University Associate Professor

Agustín R. Arellano, Sr. NV2A Group Chairman

Stacey J. Oddman, MD ’94 Holy Cross Hospital Chief of the Family Medicine Department

Melissa Tapanes Llahues, Esq. ’00 Bercow Radell Fernandez & Larkin Shareholder

Trish and Dan Bell Bell Family Foundation

Jonathan E. Perlman Genovese Joblove & Battista, P.A. Partner

Former Foundation Board Chairpersons:

John M. Bussel Hewins Financial Advisors Principal & Regional Director Maria R. Del Busto Del Busto Platinum Enterprises Chief Executive Officer Juan R. Figuereo ’81 Revlon Consumer Products Corporation Retired, EVP & Chief Financial Officer Ira D. Giller, A.I.A. Giller & Giller, Inc. President Jeffrey L. Horstmyer, MD Neuroscience Centers of Florida Foundation, Inc. Chairman and CEO

Randy B. Robertson ’84 BlackRock, Inc. Managing Director Orlando Roche ’88 IberiaBank Regional President - Miami-Dade County Jorge Rossell TotalBank Chairman & Chief Executive Officer Oscar J. Suarez Ernst & Young, LLP Florida Market Leader Albert R. Taño, MD Kidz Medical Services Director and Associate Partner

Melvin Kirk Ryder Systems Vice President & Chief Technology Officer

Jorge R. Villacampa Wells Fargo Area President, Miami-Dade

Albert Lorenzo ’74 Quantum Results, Inc. President

EX-OFFICIOS Kenneth G. Furton Florida International University Provost and Executive Vice President

Jorge Munilla ’97 Munilla Construction Management President Mario Murgado Brickell Motors, Inc. President and Chief Executive Officer

Maria D. Garcia, Esq. ’05, ’08 Kozyak, Tropin & Throckmorton, LLP Of Council Jefferson Noel FIU Student Government Association President, BBC

Thomas M. Cornish ’85 (2014-2017) Justo L. Pozo ’80 (2011-2014) Noel J. Guillama-Alvarez ’99 (2010-2011) Albert Morrison, Jr.*, Honorary Chairperson (2010-honored posthumously) Joseph L. Caruncho, Sr., Esq. ’81 (2008-2009) S. Lawrence Kahn, III* (2006-2008) Carlos A. Migoya, Ph.D. ’74, MBA ’76 (2004-2006) Donald E. Lefton (2002-2004) Sherrill W. Hudson (2000-2002) Herbert A. Wertheim, OD, ScD ’96, MD ’13 (1999-2000) Patricia Frost, EdD, DPS ’02 (1997-1999) David R. Parker (1994-1997) Joseph P. Lacher (1993-1994) Alvah H. Chapman, Jr.* (1988-1993) Robert H. Coords (1987-1988) W. James Orovitz* (1984-1987) Catherine H. Fahringer (1982-1984) David L. Perlman* (1980-1982) Thomas D. Lumpkin* (1978-1980) J. Stephen Hudson (1977-1978) Dave W. Schornstein (1976-1977) Jay Janis* (1975-1976) Lester R. Johnson, Jr. (1973-1975) John K. Aurell (1971-1973) *deceased

This issue went to print on November 2, 2018.

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FIU FOUNDATION, INC.

FIU FOUNDATION, INC. LEADERSHIP Howard R. Lipman Chief Executive Officer 305-348-6298 lipmanh@fiu.edu George Corton ’03, MBA ’14 Chief Development Officer 305-348-1923 cortong@fiu.edu Melissa Hernandez Chief Administrative Officer 305-348-7629 mehern@fiu.edu Linda Menage Chief Campaign Officer 305-348-7952 lcuriel@fiu.edu Catherine A. Torres ’05, MA ’08 Chief of Staff 305-348-0282 ctorres@fiu.edu Duane Wiles Chief Alumni Officer 305-348-4213 wilesd@fiu.edu

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2017-2018 | ANNUAL REPORT

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GIVE.FIU.EDU

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FIU Foundation, Inc. 11200 S.W. 8th Street, MARC 5th Floor | Miami, Florida 33199 Phone: 305-348-6298 | Fax: 305-348-3337

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