Thank you!
Trustee Jenee Lister, President Martha Burger, & Trustee Richard Parry
Thank you for your generous gifts supporting Oklahoma City University’s endowment. Every gift you make pays dividends in a student’s life and writes their OCU story. At OCU, whether a student is pursuing an education in business, art, law, music, nursing, science, religion or the performing arts, we strive to provide the resources needed to help them succeed in an ever-changing global landscape. Your gifts enable OCU students to create, lead and serve by supporting classroom instruction, experiential learning, internship opportunities and life changing experiences. The impact of endowment gifts can’t be overstated. They are vital to the strength of the institution and play a fundamental role in the continued growth and sustainability of Oklahoma City University. Your support helps to ensure that generations of OCU students have the opportunity to experience a world-class education that provides local impact with global reach and reputation. An endowment creates a lasting legacy, and the income it generates enables us to invest in generations of students and faculty, programs and facilities to ensure the OCU story remains alive and well. Thank you for investing in Oklahoma City University and our mission. We are committed to honor your generosity through effective investment strategies and stewardship of endowed funds. Your gift enables current and future OCU students to write their own story as they seek to shape the future of our nation and beyond. On behalf of the Investment Committee, Resource Development Committee and the entire Board of Trustees, we thank you for your extraordinary support.
2018-19 Endowment Report
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Endowment Our endowment has maintained strong financial growth through your generous support and positive investment results. The market value of endowment funds, including endowments held by other entities for the benefit of OCU, was $125,924,326 as of June 30, 2019. This report highlights those funds directly managed by OCU trustees through the Oklahoma United Methodist Foundation. Our generous and faithful donors continue to provide a significant margin of excellence for students and the faculty, staff, and programs that support them. Their philanthropy makes a profound, positive impact and continues to help make Oklahoma City University the best educational institution possible. Many of our donors choose to direct their gifts toward endowment. OCU’s endowment, including endowment held by other entities for the benefit of OCU, is made up of 646 individual funds designated to provide perpetual financial support for scholarships, faculty professorships and chairs, the various schools, library resources, and other endowed programs. Of these funds, 561 are held by OCU, 67 by the Oklahoma United Methodist Foundation, and 18 by the Oklahoma City Community Foundation.
Total Endowment $125.9 million
Endowment Assets by School/Department $73.9 million
OCU Endowment Managed by the Oklahoma United Methodist Foundation || 58.65% Other Private Foundations || 4.35% Oklahoma United Methodist Foundation Endowment for the benefit of OCU || 37.00%
Endowment Assets by Purpose $73.9 million
Clockwise from top of graph:
Alumni || 0.11% Arts & Sciences || 10.17% Athletics || 2.14% Business || 17.94%
Academic Professorships & Chairs || 16.69%
Dance & Entertainment || 1.84% Financial Aid || 13.00%
Music || 16.71%
Scholarships || 54.10%
Law || 15.57%
Nursing || 1.84%
Other || 29.21%
Library || 0.53%
Religion || 11.04% St. Paul School of Theology || 0.13% Theatre || 0.57% University-Church Relations || 0.65% Other || 7.76%
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Oklahoma City University
Management & Strategies Asset Class Overview OCU’s directly managed endowment portfolio of $73,857,290 was composed of these asset classes as of June 30, 2019. The guiding principle of OCU’s consolidated endowment program is that funds should be managed so that a gift today will fund a donor’s objective in perpetuity.
The Board of Trustees Investment Committee actively monitors the financial markets to control risk and evaluate exposure for all asset classes. The Oklahoma United Methodist Foundation serves as the advisor and record keeper, and Wespath Institutional Investments serves as investment manager to the Board of Trustees Investment Committee.
Detail Asset Allocations OCU Endowment • $73.9 million
Cash || 1.72% U.S. Equity Fund || 33.06%
In managing the endowment, the University seeks to balance the dual objectives of enhancing the future purchasing power of endowment funds and meeting current spending needs. The endowment is invested with a long-term horizon to ensure that it will grow at a rate above inflation, while providing a stable stream of income to support the purposes for which its funds were created.
International Equity Func || 26.71% Fixed Income Fund || 23.22% Inflation Protection Fund || 8.81% Alternatives || 2.41% Mineral Interests || 1.08% Notes Receivable || 2.99%
Endowment growth is due not only to the generosity of thousands of alumni, friends, corporations, and foundations through the years, but also to the careful stewardship provided by the Board of Trustees.
Asset & Distributions Assets Under Management
Distributions from Assets Under Managment
8.0
80
7.0
Broad Asset Allocations
6.0
OCU Endowment • $73.9 million
Fixed Income || 36.70% Alternatives || 3.50%
2018-19 Endowment Report
Millions of Dollars
Equities || 59.80%
5.0
70
4.0 3.0 60
2017
2018
2019
2.0
Millions of Dollars
Oklahoma City University is committed to prudent, time-tested investment strategies and fiscal policies. The Board of Trustees Investment Committee is charged with overseeing its funds and measuring the returns they produce against nationally recognized standards and metrics for investment performance.
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Investment Performance
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5.2
0%
7.1
9.2
5.9
The information in this document was obtained from sources believed to be reliable; however, accuracy is not guaranteed. Historical returns are not indicative of future performance.
9% 5.3 3% 7.2 7%
Lipper Median
1% 4.4 9% 5.4 6%
35% S&P 500 Index / 20% MSCI EAFE Index / 45% BC US Aggregate Intermediate Index
OCU Endowment
The historical returns presented herein represent the actual historical returns of the OCU Endowment, which reflect the deduction of fees charged by third parties.
3% 7.7 9%
Net of Fees || As of June 30, 2019
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Notes
6 4 Percentage
1. Lipper Median returns from the Lipper mutual fund universe for balanced funds in the asset class category. As of 6/30/19, the universe consisted of 4,802 peers. Source: Wilshire Associates, Lipper, and Wespath. 2. Historical returns are time-weighted. Returns greater than one year are annualized. 3. Past performance is no guarantee of future returns.
2 0 1 Year
3 Years
5 Years
Four years ago, Thomas Olson traveled 3,467 miles from Kapolei, Hawaii, to Oklahoma City. He followed his sister, Hannah, to Oklahoma City University to pursue a fine arts degree in Dance Performance.
To offset the cost of higher education, Thomas was awarded the American Spirit Quasi Endowed Scholarship, which was established in 2017 by Dean John Bedford and Jo Rowan. “The American Spirit Scholarship has assisted and helped me come to school every year,” Thomas said. “This gift makes my dreams not only achievable, but affordable.” During his time at OCU, Thomas recalls his work with “On The Town” as one of his fondest memories. “The team putting it together was the best part.” Thomas anticipates a Spring 2020 graduation, when he will look at performing across the nation. In addition to performing, Thomas would also like to share his experiences by teaching the next generation of dancers. Thomas appreciates Dance Chair Rowan for teaching him the importance of giving back. “Jo Rowan always talks about how money doesn’t matter when you have an amazing life and happiness to make you feel rich,” he said. “I want to be rich in love and joy. That doesn’t happen without giving back.”
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Oklahoma City University
New Endowments Women’s Golf Quasi-Endowed Fund — established in fall 2018, the investment earnings and portions of the corpus will be used to fund team travel and operational needs of the women’s golf team. Women’s Basketball Quasi-Endowed Fund — established in fall 2018, the investment earnings and portions of the corpus will be used to fund team travel and operational needs of the women’s basketball team. James and Sharon Peterson Endowment for Athletics — established in fall 2018, the fund will be used to support the greatest need of the OCU Athletic Department as determined by the Athletic Director. Otis L. Schoonover and Billie J. Schoonover Endowed Scholarship in Business – established in fall 2018 through an estate gift of Otis Schoonover after his passing, the scholarship will provide support to a deserving student/students who are pursuing a Bachelor of Arts or Bachelor of Science in Business and maintain a minimum 2.5 GPA. Jerry and Marianne Vannatta Endowed Scholarship – established in spring 2019, honoring the late Marianne Vannatta, providing scholarship assistance to students majoring in degrees within the Petree College of Arts & Sciences, maintaining a 3.0 GPA. Travis Ayers Endowed Scholarship – established in spring 2019, honoring the late Travis Ayers, providing scholarship assistance to students who are Religion majors with priority given to those pursuing a Religion/Philosophy track. MSB Alumni Endowed Scholarship – established in spring 2019, the investment earnings will be used to fund scholarships for students majoring in any degree within the Meinders School of Business. BSN-DNP Nurse Practitioner Endowed Scholarship — established in spring 2019, the investment earnings will be used for scholarship support to a deserving student or students enrolled in the BSN-DNP Nurse Practitioner program. BSN-DNP Quasi Endowment Scholarship – established in spring 2019, the investment earnings will be used for scholarship support to students pursuing a Doctor of Nursing Practice in a nurse practitioner specialty track.
2018-19 Endowment Report
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Scholarship Puts Song to Dreams Editor’s Note: The Brye Ashley McKenzie Endowed Scholarship honors the late Brie Ashley McKenzie. Her mother chose a variation of her name spelling for the scholarship to preserve the correct pronunciation of her name.
The legacy of Brie Ashley McKenzie will give voice to future Oklahoma City University Bass School of Music students. McKenzie’s mother, SuzAnne Close McKenzie, through the estate of her brother, Jimmie Heatley Close, has established the Brye Ashley McKenzie Endowed Scholarship at OCU. The scholarship will provide annual recognition and a full scholarship to one junior or senior vocal performance major. McKenzie established the scholarship at OCU to honor Brie’s singing talent. Though Brie earned her degree in hotel and restaurant management from Oklahoma State University, she went on to find success as a vocalist, singing karaoke in the Austin area, while also working full time for a wine distributor. After winning an Austin karaoke contest, Brie was offered a position as a karaoke director. A year later, Brie moved to San Antonio and began working as an area sales director. As the next year approached, Brie planned to return to Austin and pursue living her dream as a vocal artist. However, she never got that chance. Last year, SuzAnne, with instructions from her brother’s estate, sought to find a vocal music degree program that could benefit from a scholarship honoring Brie. She remembered reading about OCU’s music school many years prior and decided to research OCU along with several other universities to find the right home for the scholarship. SuzAnne McKenzie said the tremendous OCU faculty, outstanding graduates, and first-class facility of OCU’s music program made it stand out. “I hope to see scholarship recipients get a sense of financial freedom while pursuing their dream,” she said. Asked what she hopes others remember about Brie, she explained, “She was so much fun to be with. She had a wonderful sense of humor and was the kindest of people.”
“I hope to see scholarship recipients get a sense of financial freedom while pursuing their dream,”
The scholarship also will be a lasting legacy of Jimmie Heatley Close, who taught business law, ethics, and accounting. He impacted many young people and assisted them with their business plans. When asked what SuzAnne wants others to know about Jimmie, she said, “Jimmie always had a thirst for knowledge and just knew something about everything no matter the subject.” He had several lifelong friends and his interests included collecting matchbooks, which grew into an extensive collection. “He lived in Florida and had a backyard that backed up to a large pond that had an alligator in it,” SuzAnne remembered. “The yard had lemon trees, orange, banana, and grapefruit, which he called Alligator Orchard. He really enjoyed taking care of his property.” SuzAnne said she is pleased to honor Brie through a gift from his estate.
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Oklahoma City University
Chickasaw Nation Gift
Law Dean Jim Roth, Former President Robert Henry, Jan Henry, and Phillip Koszarek at the “Much Ado About Robert” retirement ceremony
The Chickasaw Nation Celebrates Robert Henry’s Work at Oklahoma City University In 2018, upon the retirement of university President Robert H. Henry, the Chickasaw Nation established the Robert H. Henry Scholarship in Humanities and Law to celebrate the work he accomplished during his tenure at Oklahoma City University. The $1.5 million gift from the Chickasaw Nation was a challenge to the alumni of OCU and the many friends of Robert Henry to match their generosity in order to provide students with a substantial scholarship during their time at the university. Students who will benefit from this generous gift must be pursuing a degree in Arts and Sciences or in Law. The first priority selection is provided for Chickasaw Tribal members. Prior to serving as president of OCU, Robert Henry served as dean of the Law School from 1991 to 1994. Law School Dean Jim Roth noted that Henry was the dean when Roth attended
2018-19 Endowment Report
Oklahoma City University School of Law. “I learned a great deal from him and felt my life enriched through experiences like the Oklahoma Indian Legal Services Clinic,” Roth said. “I know the Chickasaw Nation, led by its wonderful Governor Bill Anoatubby, to be a culturally vibrant, economically strong nation full of energetic people committed to servant leadership and selflessness. These strong attributes exist in the generous and aptly named Robert H. Henry Scholarship in Humanities and Law gift for Oklahoma City University,” Roth said. “Here at the Law School we are honored by the gift and are empowered in a shared purpose to enrich the lives and opportunities of our students in this way.” This special gift was announced at President Henry’s retirement celebration, held at the law school. Governor Anoatubby noted that former President Henry exemplifies how commitment to higher education and public service can have a lasting positive impact on our community.
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The Darrah Endowment For Darrahs, a love of music education beckons Mark and Jackie Darrah believe that music is eternal, and storytelling makes people human. As Oklahoma natives, they wanted their estates to benefit an Oklahoma university, non-profit, or charity. Because the Wanda Bass School of Music at OCU is consistently recognized as one of the top departments in the nation, their charitable giving wishes checked both boxes. “We chose the Opera and Music Theater program at OCU for our endowed gift because of the excellence of the program and its reputation for outstanding teaching,” Mark said. “It helped that we have a family connection to OCU, and it’s a home-state institution.” That family connection includes Mark’s parents, who attended OCU in the late 1940s and early 1950s — Dwight for religion and philosophy, and Becky majored in religious education. Both graduated from OCU.
Dwight and Becky met at OCU, fell in love, and got married. Dwight attended seminary at Boston University and Becky joined him there after they wed. They had three children — David, Mark, and Linda. Becky loved musicals. When the movie “The Sound of Music” came out, the family lived in Oklahoma City. She took her children to see the film at three separate showings. When the opportunity presented itself, she eagerly took her children to see productions at OCU. Dwight and Becky supported their alma mater throughout their married life. In 1981, Dwight received an honorary doctor of divinity degree from OCU. Going back even further in time, Becky’s mother, Rosalie Beckloff (later Shuber), was president of the Women’s Society for Christian Service (the predecessor of United Methodist Women) for the West Oklahoma Conference of the Methodist Church when money was raised and construction began on the Gold Star building. Meanwhile, Dwight’s father, Donald B. Darrah, was a leader of the Methodist Men for the West Oklahoma Conference. Mrs. Beckloff and Judge Darrah both attended the groundbreaking for the Gold Star building.
(clockwise from left) Donald B. Darrah, Rosalie Beckloff, Dwight & Becky Darrah
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Oklahoma City University
Jackie and Mark Darrah
Supporting education Mark and Jackie both value education. “Teaching is one of those things that keeps on giving,” Mark said. Jackie helps first grade students learn to read at a public elementary school. She also delivers Meals on Wheels and is a poll worker on election days. Mark, the 2018 Carl G. and Gladys L. Herrington Distinguished Lecturer at Rogers State University, has taught writing in a program at Tulsa Community College. He has a legal practice in midtown Tulsa and is also an award-winning essayist and fiction writer. They both share a love of the performing arts. “We have seen Kristin Chenoweth perform several times. Each time we’ve seen her, she’s given a shoutout to Oklahoma City University and expresses her deep appreciation for her OCU teacher and mentor, Florence Birdwell. We hope our endowed professorship provides teachers who inspire and instruct students like Florence Birdwell has.” The Darrahs established the Mark & Jackie Darrah Endowed Professorship in Opera and Musical Narrative at OCU. “The professorship simplified our estate planning and opened up the possibility of other charitable giving options. OCU, for example, is named the beneficiary of our qualified retirement plans (IRAs, 401(k)s, etc.). The remaining assets in those accounts will transfer income tax free at our passing.” 2018-19 Endowment Report
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Martha Jean Lemon Lectureship
Endowment Drives Community Conversation, Academic Enrichment Nearly a decade ago, Lynette Lemon Wert and Larry Lemon established a lecture series at Oklahoma City University through an endowment to enrich the academic environment for the university and the surrounding community. Since that time, the Martha Jean Lemon Distinguished Speaker Series has profoundly impacted the local community. OCU Trustee Tricia Everest, who chairs the Oklahoma County Criminal Justice Authority and serves as the Deputy Secretary of Public Safety, noted that the 2018 Lemon Lecture, delivered by Piper Kerman, a best-selling author and subject of the Netflix hit “Orange is the New Black,” raised awareness of the incarceration epidemic in Oklahoma and the need for new solutions. Kerman described her experience at the Danbury Correctional Facility and the many barriers to rehabilitation and re-entry for incarcerated individuals. “Her well-attended lecture helped the university, city, county, and state recognize that this isn’t a Department of Corrections problem, it is a social problem.” Everest noted that since the lecture, the OCU School of Law has started a Criminal Justice Institute to place students at the Oklahoma County Detention Center to assist legal counsel in understanding detainees’ stories. The City of Oklahoma City also voted to have several programs related to criminal justice and diversion as part of MAPS 4, and Oklahoma County has formed a nine-member Jail Trust to oversee the detention center with new perspectives and innovative solutions geared toward reducing the number of people who are incarcerated. “I am beyond grateful to the Lemon family for providing the opportunity to OCU to change the dialogue from problems to solutions with the community coming together,” Everest said. This year’s lecture featured ocean conservationist Fabien Cousteau, the grandson of scientist and ocean explorer Jacques-Yves Cousteau, and raised important questions about the environment. “The Lemon family is very pleased to provide the resources to bring national speakers to the OCU campus,” said Larry Lemon. “Our goal is to help educate students with topics of current interest.” The lecture series honors Martha Jean Lemon, who graduated from OCU in 1968 with a degree in history and worked as an independent comparative religion scholar. 10
Oklahoma City University
Gold Star Society
YOUR OUR
GENEROSITY LONGEVITY
The Gold Star Society is a prestigious group of individuals and families who have placed Oklahoma City University in their estate plans. It is named in recognition of the Gold Star Building which memorializes those from our OCU community who have lost their lives in service to our country. The Gold Star Society recognizes those donors who make everlasting gifts to sustain their endowments for the future of OCU. If you are not already a member of the Gold Star Society or had the opportunity to inform us that you would like to be recognized as a part of this elite group, please take the time to do so today. For more information contact Alan D. Herndon, Director of Gift Planning, at 405-208-5454.
Future Generations Will Thank You For YOUR Sustaining Legacy! Member Listing Victor and Karen Kay Albert Rhodly and Betty Alden Judy Altshuler Frank Atwater Terry Baransy Susan Barber and David Nagle Kay Bass Tom Beadles Kay Bradley Robert Bryan Martha Burger Bob and Chimene Burke M.K. Butler John Carey Carl and Donna Cartwright Danny and Carol Cochran Christine Collins George Craig Allen Sheldon and Lisa Crone-Sheldon Joe and Sherry Crosthwait Mark and Jackie Darrah Michael Decker Catherine Dougherty Patricia J. Downing Terry Drake Larry Eberhardt Phyllis Edson
2018-19 Endowment Report
Orville Edwards Ronald and Pat Eitzen Randy and Faith Everest Sharon G. Fore Robert Fry Nick and Sue Gales Larry and Jeannette Haag Attieson Halbrook Allen Harris Richard Hastings Patricia Hatamyar Robert Henry and Jan Ralls Henry Alan and Elisha Herndon James and Joan Hirnisey Gary and Sue Homsey Jeremy Allen and Megan Hornbeek Allen William and Karen Howard Ron Jacob Dixie Jensen Fred and Patricia Johnson Nancy Kenderdine Jeffery Key Jim and Mary Kutch Ann Lacy Timothy and Linda Larason Janet Leadbetter Ruth G. Leebron
Kurt and Cathy Leichter Dan Burdette and Janis Love Claudine Schwetke Loyd Andrea L. MacMullin Donald and Barbara MacPherson Daniel Majors Samuel Marrs Richard and Louise McDivitt John and Kathryn McInnis Burrel and Jo Ann McNaught Doloris A. McVay Herman Meinders Patrick K. Miles Glenn and Mary Millard Maudie Miller and Mike Hicks Glen and Yvonne Miller Margaret L. Moedt Jim and Debbie Musick Sharon K. O’Roke Mark Parker Brenda Penwell Ray and Pat Potts Dr. and Mrs. George Randall Karen Rice Casey R. Ross Dennis Rubenstein Michael and Kelcey Schag
Charles and Jane Schneeberger Hugh and Shirley Scott Cheryl Seguine Garvin Senn Bill and Pam Shdeed Shelby Smith Wayne Stone Trey and Deborah Suddarth Marvona Easley Tavlin and Michael Tavlin Nancy Pryst and Kelly Thompson Kevin Tully Clarence and Patricia Tully Alireza Vahabzadeh Robert Van House Jerry and Melinda Vannatta Jim Wade Ginny Walker Richard Wansley and Meredith Davison Gladys B. Whetstine Charles Wisler Lisa Wolfe and Fred Mischler Debra Worley Hub Worrell Carl and Beverly Ann Young
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Endowment FAQs What is an endowment? Individual endowments represent the legacy of benevolent donors who invest for long-term growth. An endowment is timeless because the long-term aim is to conserve both the corpus and purchasing power. The investment income and gains earned from an endowment advance the strategic vision of the donor on a continual basis. Why are endowments important? Endowments build a legacy of support that spans generations. As a permanent legacy, they will continue to give educational opportunities to the most talented students long into the future. They also allow OCU to recruit and retain the best teachers to build programs and act as esteemed mentors to our students. What are the minimum endowment levels to establish a named endowed fund? The minimum gift required to establish a named endowment fund is $25,000. Endowment gifts can be pledged and paid over a period of up to five years. Some examples of minimum guides for named endowed funds are: • Scholarship: $25,000 • Professorship: $1 million • Chair: $2 million
meaningful to them. Many donors establish an endowment in honor of a specific person — a family member, professor or coach — and name the fund accordingly. Endowments can also be named more broadly for the discipline they support or the group or individuals who establish them.
limits for the portfolio as a whole. This provides the greatest assurance that future generations benefit from the endowment as much as current students.
Can I give to an existing endowment?
Once the initial gift has been received, the minimum required funding levels have been achieved, and all required paperwork has been completed, initial payout of funds typically will become available after 12 months. Individual gifts in excess of 50% of the market value will become available after 12 months.
Yes. Unless you state otherwise in your memorandum of understanding when the gift is established, the fund can be left “open” to future gifts from you or others who choose to support the fund. While there is a minimum of $25,000 to establish a new endowment, there is no minimum gift required for increasing the size of an existing endowment. Can I choose what my endowment supports? Yes. A number of donors to Oklahoma City University choose to restrict how their funds can be used. You can designate your gift to support a particular school or program, special initiative, library, or other opportunity at the University or establish an endowment whose income may be utilized at the discretion of the Board to meet strategic needs. How is an endowed fund invested?
Whose name is on the endowment? Donors are encouraged to name their endowed fund in a way that is
OCU adheres to investment policies intended to provide a balance of risk and return in the portfolio. The investment portfolio is diversified to keep volatility within acceptable
When will an endowment begin generating payout that can be spent?
How is the amount of annual payout determined and then distributed? The amount of payout allocated each year varies because it is based on the market value of the endowment portfolio for the last twenty (20) quarters. The Board of Trustees reviews and approves the spending rate annually. The average spending rate for the past five years has been approximately five percent of the endowment’s average market value. How does the endowment increase in value? While investment returns help to fuel the growth of OCU’s endowment, the addition of gifts is more important over the long term. Recurring contributions are important because this allows for averaging the cost basis over time.
ADVANCING OCU Cash, securities, or planned gifts are excellent ways to build an existing endowment or establish a new fund. Office of Advancement || (405) 208-7000 || give@okcu.edu || okcu.edu/give Lynann Sterk-Brooks Vice President for Advancement || lmsterkbrooks@okcu.edu Judy Reyes-Henderson Assistant Vice President for Development || jareyeshenderson@okcu.edu
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Oklahoma City University
okcu.edu/give