2020–21 Annual Report

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Annual Report Dear Friends

The 2020–21 academic year was one of unprecedented challenge and achievement for the Cleveland Institute of Art. Mounting an effective art and design curriculum during a pandemic forced the college to navigate through a labyrinth of conflicting options, regulations, opinions and threats to develop a plan to safely deliver our first-rate education in person to our students. Our COVID Task Force met regularly to strategize and implement plans that re-organized our physical environment and adapted our workflow—without compromising our strategic vision. In the process, we fostered a community of mutual caring that was profoundly successful in preserving our health. We are grateful for the assistance we received from our federal and state governments, easing the financial burdens of decreased enrollment and pandemic-mitigation expenses. We commend the faculty and staff who are serving our students on the

2020– 2021

front line with their presence and commitment. We deeply appreciate the counsel and support provided by our Board of Directors and Advisory Board. And we extend our love to our students for the loyalty and trust they demonstrated in staying with their college during these deeply trying times. The key concept that arises from all of this is faith: in our school’s vision, in its delivery of that vision, and in each other. During this last year, we expanded our virtual capabilities in inventive ways. Our Lunch on Friday lectures, Spring Design Show, BFA Exhibition, Reinberger Gallery exhibitions and Cinematheque screenings all continued, although in altered forms. Commencement was especially inspired, combining recorded presentations by faculty, administration, a student speaker and the Russo family of filmmakers with in-person attendance of graduates, families and friends at the Mayfield Road Drive-In Theatre. It was an evening none in attendance will forget! Building on the successes of last year, CIA opens 2021–22 with vaccination rates of 97 percent among students, 96 percent among faculty and 91 percent among staff. All others have been granted exemptions and are being tested every week. The community of caring continues.

Grafton J. Nunes President + CEO

The 2021 graduation ceremony was a testament to our creativity. With the need to be outside, our traditional ceremony at the Maltz Performing Arts Center was out of the question. So, why not hold it at the Mayfield Road Drive-In Theatre. Thinking outside the box resulted in a truly memorable celebration.

As I look back on 2020–21 at the Cleveland Institute of Art, I am amazed by the college’s resilience and adaptability. When COVID struck in spring 2020, we pivoted almost overnight to an online learning model. However, as fall 2020 neared, it was clear our community wanted and needed to safely return to some form of in-person instruction. The COVID Task Force—consisting of students, faculty and staff—continued to meet, regularly monitoring guidelines set forth by the CDC and relevant local government agencies and establishing protocols based on those guidelines that would keep our community safe. At the center of our “Smart Return” plan were six core values, or the “Six Cs”: Care, Curricular Continuity, Community, Creativity, Compliance and Communication. Our community’s commitment to these values allowed us to open safely while many of our peers remained closed to in-person instruction.

One bittersweet moment this academic year occurred when President + CEO Grafton Nunes announced his retirement, effective June 30, 2022. Grafton will leave a remarkable legacy as CIA president. His term has been marked by numerous successes and achievements that have put our school in solid financial condition, with strong programs, an enhanced endowment, a reimagined campus and increased enrollment. He has built a strong faculty and an accomplished staff. We are in a firm position to take CIA forward thanks to his leadership. Finally, I am grateful to Cuyahoga County taxpayers, who through Cuyahoga Arts & Culture, pledged more than $500,000 in support of public programs at CIA, which include our Continuing Education and Community Outreach programs, the Cinematheque, and Reinberger Gallery. These programs serve students, faculty, staff and Greater Cleveland residents. Thanks, too, to the State of Ohio for including CIA in its biennial budget in recognition of the impact CIA has on the economy of Northeast Ohio.

Cynthia Prior Gascoigne Chair, Board of Directors

2020–2021 Financial Summary REVENUE

EXPENSES

55% Net Tuition and Fees

28%

Instructional Programs

27% Government and Current

21%

Institutional Support

Year Restricted Grants and

11%

Student Services

Endowment Support

12%

Academic Support

14% Auxiliary Enterprises

28%

Auxiliary Enterprises

4%

100%

Total

Annual Fund Contributions

100% Total

CIA’s primary source of income is tuition and fees, net of financial aid, which represents 55 percent of operating revenues. Fall 2020 total enrollment was 599 students, which included 169 new and transfer students. At CIA, we recognize the significant financial investment for education made by students and families. Concentrated efforts are made to keep tuition increases below national averages while providing the highest quality education in a state-of-the-art environment. Fundraising and endowment support

provide necessary resources in support of CIA’s mission. Annual Fund giving represents 4 percent of the 2020–2021 operating revenue while support from government grants, current year restricted grants and endowment support increased to 27 percent due to additional government funding to address COVID-19. Endowment support includes distributions from endowment funds held in trust and distributions from the CIA managed portfolio. A majority of the endowment distributions are used for need- and merit-based financial aid awarded to students.

At June 30, 2021, the market value of endowment assets was $34 million, composed of $11.8 million of funds held in trust and $22.2 million of CIAmanaged investments. The overall asset allocation of the CIA managed portfolio at June 30, 2021 was 56.5 percent domestic equity, 14.6 percent foreign equity, 16.9 percent fixed income and 12 percent alternative investments. The fiscal year ending June 30, 2021 was a year of significant growth for CIA’s investment portfolio. The oneyear weighted average return on the

combined endowment portfolio was 26.7 percent net of fees. Auxiliary enterprises represent 14.1 percent of total operating revenues and include the Cinematheque film program and student housing. In 2020–2021, the College spent 28 percent of its operating budget on instructional programs, 12 percent on academic support, 11 percent for student services, 21 percent for institutional support and 28 percent for auxiliary enterprises.

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