Investing in Saluki Futures Southern Illinois University Foundation 2011 Annual Report In support of
Content
Investing in This Generation
Investing in Scientific Exploration Investing in Future Students Financial Position Activities Endowments Contributions Expenditures Foundation Board Foundation Staff
You will notice a common thread in the stories featured on the following pages. It’s all about opportunities. For instance, a generous $75,000 gift from Bob and Beth Gower, matched dollar-for-dollar by the University, is funding state-of-the-art equipment for students and faculty in our chemistry and biochemistry departments. Therefore, our students receive an opportunity to utilize cuttingedge equipment essential to subsequent success in their field.
Mary Kay Moore President SIU Foundation Board of Directors
Secondly, the Saluki Student Investment Fund (SSIF), established in May 2000 with a $25,000 gift from Omar and Carol Winter, presents an opportunity for members to attain hands-on-experience in portfolio management and investment research. SSIF manages funds provided by the SIU Foundation, and our portfolio continues to grow as a result. Also, you’ll read about a private foundation that selected Southern Illinois University Carbondale for a program that seeks to improve the graduation rate of first-generation students. This will result in scholarship support to students who will in turn be required to contribute to campus and community life through various activities and programs. Each story represents special opportunities that our students are receiving through generous financial support. As a result, young men and women are prepared to excel in the workforce. Your support makes the difference. Private contributions support our University’s initiative to foster an environment with a caring heart, thus, shaping our students for success well into the future.
Elizabeth Banycky Interim Chief Executive Officer SIU Foundation
Big things are within reach because of your commitment and support. Everyone – volunteers, alumni, friends, and University leadership – is pulling together collectively to make this happen. A sense of community is being established to ensure that this University and its students flourish well into the future. We appreciate the devotion exhibited by alumni and friends of SIU Carbondale, and ask you to continue your commitment moving forward. Thanks for Investing in Saluki Futures.
Investing in
This Generation
A private foundation is investing in Southern Illinois University Carbondale’s efforts to improve the graduation rate of first-generation students. A long-standing commitment to first-generation students – those whose parents did not attend college -- was one of the reasons The Suder Foundation, of Plano, Texas, selected the University for the five-year, $1-million scholarship program. Along with SIU Carbondale, the foundation awarded a grant to the University of Alabama. SIU Carbondale and Alabama competed with 32 other universities for this funding. Nearly 43 percent of SIU Carbondale’s 2009 first-time entering freshmen were first-generation students. The Suder Foundation is providing the University with budgeted funds to establish the program. SIU Carbondale received $60,000 for planning purposes, and, $121,163 during the initial year of the “First Scholars Program.” Additional funding is forthcoming, with the understanding that after the fourth year of the program, the University will be responsible for securing necessary funding to maintain scholarship renewals for existing students and to award scholarships to new groups of students.
The Suder Foundation funded 20 scholarships at $5,000 each beginning in fall 2011, and will fund 20 additional scholarships at the same level in each of the succeeding three years. Students from Illinois, Arkansas, Indiana, Kentucky, Missouri, and Tennessee will be eligible for the scholarships. Financial need and demonstrated academic ability as shown by ACT and/or SAT scores and high school GPA will be among the scholarship criteria. The scholarship will be renewable for three years as long as the First Scholar maintains at least a 2.5 GPA and meets other criteria established by The Suder Foundation. One of The Suder Foundation’s requirements of scholarship recipients is “Pay-It-Forward.” In addition to volunteering in campus and community organizations, First Scholar upperclassmen can serve as mentors for incoming participants. Also, the returning participants can tutor other First Scholars. At SIU Carbondale, key scholarship recipients, such as Presidential Scholars, will mentor first-year participants in the First Scholars program until their junior years. First Scholars will subsequently fulfill their “Pay-It-Forward” requirement by mentoring incoming participants.
Investing in
Scientific Exploration
A Distinguished Alumnus is teaming with Southern Illinois University Carbondale’s administration to fund state-of-the-art research equipment for instructors and students in the chemistry and biochemistry department. Dr. Bob Gower, a two-degree SIU Carbondale alumnus and chair of Ensysce Biosciences in Houston, communicates regularly with the University’s chemistry professors. When the West Frankfort native was informed of the department’s equipment deficiencies, he immediately made mention of the issue in a subsequent meeting with SIU Carbondale Chancellor Rita Cheng. “It’s pretty inefficient to have equipment constantly going down. I know it’s a problem that can’t exist; especially at a great university like SIU Carbondale that is striving for recognition in various aspects of research,” Gower says. “Therefore, I told Chancellor
Cheng that I would be willing to help if the University was willing to do the same.” Cheng presented a proposal to Bob and Beth Gower for $75,000 to establish a Technology Fund in the chemistry and biochemistry department. Their commitment would be matched dollar-for-dollar by the University. The Gowers obliged. Therefore, $150,000 will fund the acquisition and maintenance of equipment for instruction and research. Additionally, the fund provides the department and college with a long-term resource plan for equipping and upgrading its teaching labs. “This is a wonderful partnership that responds to a great need in this department,” Cheng said. “Cutting-edge equipment and technology are vital to the educational process. The Gowers’ generosity provides valuable support to our faculty’s teaching and research efforts, and will help our students be better prepared when they enter their professions.”
Investing in
Future Students
Saluki Student Investment Fund (SSIF) members receive hands-on-experience in portfolio management and investment research. The SIU Foundation has benefited as a result. SSIF was established in May 2000, after a $25,000 gift from Omar and Carol Winter, both SIU Carbondale graduates. The SIU Foundation subsequently provided $200,000 for the students to manage on its behalf. During its first decade, assets under management for the SSIF grew to more than $325,000, and had participation from more than 60 SIU Carbondale undergraduates. Also, SSIF outperformed its benchmark by 9.36% during the SIU Foundation’s fiscal year ending June 30, 2011. After reviewing a SSIF proposal in April, and its presentation the following month, the SIU Foundation’s investment committee subsequently voted to approve an increase in the mandate for SSIF from approximately $370,000 to $1 million. “The SIU Foundation Board and the Investment Committee thereof are very proud of the SSIF, the students and their advisers, Dr. Mark
Peterson and Dr. Jason Greene. It has been a very exciting and rewarding experience for us as board members to observe the hard work and dedication of each student and to realize how important this learning tool is to them and their futures. Many of these students will become investment specialists and will help many people manage their investment portfolios,” says Roger Gray, chair of the SIU Foundation Investment Committee. “The SSIF results compare well with other managers we employ and in some cases, exceed very large professional managers. We believe the SSIF, under the guidance of Dr. Jason Greene, will continue to grow and attract attention throughout the SIU community and the investing world.” Greene says over the past seven years, the Foundation’s fund has consistently outperformed its benchmark on an annual basis. “These students have shown a great deal of professionalism in diligently working to do the best job possible in managing the Foundation’s money,” Greene says. “Committee members agreed that this year’s group has set the bar very high for SSIF members in the future.”
Statement of Financial Position As of June 30, 2011
Assets
Cash and Cash Equivalents
$1,061,472
Receivables Pledges Receivables, Less Allowance of Doubtful Accounts Other Receivables Total Receivables
13,995,469 113,120 14,108,589
Investments Investments 124,854,199 Assets Help Under Split-Interest Agreements 7,956,773 Investment in Real Estate 190,000 Cash Surrender Value of Life Insurance 413,284 Total Investments 133,414,256 Net Property and Equipment Intangible Assets Other Assets
Total Assets
753,411 2,276,677 345,144
$151,959,549
Liabilities
Accounts Payable and Other Liabilities Obligations Under Split-Interest Agreements Agency Funds Payable Deposits Held for Others Total Liabilities Net Assets Unrestricted Temporarily Restricted Permanently Restricted Total Net Assets
Total Liabilities and Net Assets
$162,465 3,678,989 2,077,383 218,243 6,137,080 8,272,095 60,779,673 76,770,701 142,822,469
$151,959,549
Activities As of June 30, 2011
Support and Revenue
Contributions Allowance for Uncollected Receivables Change in Value of Split Interest Agreements Investment Income Fundraising Service Income Support Service Revenue Other
Total Support and Revenue
$10,039,569 1,431,683 1,245,553 23,851,029 24,744 5,019,089 429,651
42,041,318
Expenses
Program Services: Scholarships University and Community Programs Academic and Research Support Total Program Services
2,678,296 1,658,765 4,041,720 8,378,781
Support Services: Management and General Fundraising Total Support Services
4,852,047 3,170,326 8,022,373
Total Expenses
16,401,154
Change in Net Assets
25,640,164
Net Assets - Beginning of Year Net Assets End of Year
120,182,305 $145,822,469
Endowments The SIU Foundation receives endowment contributions and invests them into the endowment investment pool for perpetuity. An annual distribution of a portion of the revenue generated from the endowment accounts is transferred to corresponding current accounts and used according to donors’ restrictions. Many of the contributions were designated for scholarships, research and for the general support of colleges and departments. Please visit www.siuf.org for more information. The SIU Foundation endowment is invested as follows:
In Thousands
Money Market
Hedge Funds
$866
$5,434
Alternatives $4,988
U.S. Equities $52,148
Fixed Income $17,294
International Equities $17,130
Total: $97,860
Contributions The SIU Foundation accepts contributions in the form of cash, securities and real or personal property. Many corporations will match the contribution of employees, officers, directors, and in some instances, spouses and retirees. The SIU Foundation also accepts various types of planned gifts, whereby the donor makes a gift commitment during his or her lifetime that will benefit the University in the future. Planned gifts are in the form of bequests, gift annuities, charitable remainder trusts, charitable lead trusts, and life agreements. The SIU Foundation applies a one-time, six percent supplement fee to all gifts of cash and securities. The Foundation uses five percent of the fee to fund central fundraising operations and returns one percent to the generating colleges or units to support their specific fundraising activities. It is the Foundation’s goal to increase private support which will provide funding towards the University’s mission of being a comprehensive undergraduate and graduate research institution. Donors contributed a total of $19.8 million during FY11.
Gifts given directly to SIU $1,242,172 Cash contributions and pledges $8,554,470 Gifts in kind $10,080,460
Expenditures Donors can designate their contributions for items such as scholarships, faculty support, research, facilities and equipment. Donors also can contribute toward general support with an unrestricted gift. The SIU Foundation provides support of the University mission through contributions received and investment revenue generated. SIU Foundation’s expenditures are represented as follows:
Teaching and research
Equipment $149,387 Expendable goods $675,755
Scholarships $1,215,760
Prof. dev. and travel $166,663
$1,134,871 Grants to the University $4,709,043
SIU Foundation Board of Directors As of June 30, 2011 President
F. Lynn McPheeters ‘64 Retired Vice President/CFO Caterpillar, Inc. Peoria, IL
Members
John S. Brewster, J.D. ‘76 Partner, Winters Brewster Crosby & Schafer LLC Herrin, IL Michael C. Carr ’74, J.D. ‘79 Asst. U. S. Attorney United States Attorney’s Office Carbondale, IL Robert A. Chamberlin ‘68 Owner, Chamberlin Consulting Group, Inc. Lemont, IL Juh Wah Chen Dean Emeritus College of Engineering Southern Illinois University Carbondale Murphysboro, IL Rita Cheng Chancellor Southern Illinois University Carbondale, IL Paul L. Conti ’72, M.B.A. ‘74 Retired Chief Assets Officer VeriClaim, Inc. Glen Ellyn, IL Greg N. Cook President Cook Portable Warehouses Makanda, IL
Larry R. DeJarnett ’62, M.S. ‘63 Managing Director The LAMAR Group Palm Desert, CA
Thomas E. Nielsen, M.D. ‘81 Practicing Physician/Phlebology Illinois Vein Specialists Bloomington, IL
John C. Dosier President, CEO, First Southern Bank Carbondale, IL
Pamela K. Pfeffer ‘67 Community Leader Nashville, TN
James T. Gildersleeve ‘72 President, Gildersleeve Fertilizer Co. Hudson, IL
Glenn W. Poshard ’70, M.S.Ed. ’75, Ph.D. ‘84 President Southern Illinois University Murphysboro, IL
Roger G. Gray ‘64 Retired, Central Bank of Marion Cobden, IL Michael R. Howell ’80, J.D. ‘83 President, Howell Financial Services Sparta, IL Kenneth J. Hull ‘58 Retired Chairman and CEO Follett Corporation Downers Grove, IL Marvin K. Kaiser ‘63 Retired Chief Administrative Officer Doe Run Company Mayfield, KY Dianne Meeks Community Leader Carbondale, IL Christoph E. Micha ‘83 Manager, Data Acquisition DaimlerChrysler Motors Co. Farmington Hills, MI Mary Kay Moore ’78, M.S. ‘81 Retired CEO & Co-Owner Center for Comprehensive Services Carbondale, IL
Marsha G. Ryan, J.D. ‘87 Physician, Surgeon, Professor of Law Murphysboro, IL Howard M. Spiegel ‘75 Account Manager Arrow Semi-Conductor Buffalo Grove, IL H. Wesley Wilkins ‘77 Attorney-at-Law Cobden, IL
Alternates
Michelle J. Suarez ’85, M.S.Ed. ‘04 Associate Vice Chancellor & Executive Director SIU Alumni Association Carbondale, IL Marquita Wiley SIU Board of Trustees President Trenier Enterprises, L.L.C. Belleville, IL
SIU Foundation and Related Staff As of June 30, 2011
Rickey N. McCurry, Chief Executive Officer Elizabeth Banycky, Treasurer Jeff Lorber, Executive Director of Development Bryan C. Vagner, Managing Director
Ronald D. Graves, College of Mass Communication and Media Arts Kevin Lister, College of Applied Sciences and Arts Kristine McGuire, Library Affairs
Nancy A. Vallino, Corporate Secretary
Tanna Morgan, College of Science
Advancement Services
Rebecca Stenhaug, Central Development and College of Agricultural Sciences
Twyla D. Adkisson-Peak, Director of Research and Data Integrity Beth L. Mohlenbrock, Executive Director David B. Schwartz, Director of Information Systems Linda Wright, Director of Gift and Biographical Processing
Development
Judith Ray, School of Law
Eden Thorne, College of Engineering Tracee Tyner Norris, College of Liberal Arts Vacant, Intercollegiate Athletics Corporate & Foundation Relations Jill Gobert, Director
Annual Giving Nanditha Balasubramanian, Director of Annual Giving
Development Communication Emily Hunsaker, Editorial Assistant
Amber Kinkelaar, Assistant Director of Annual Giving
Greg Scott, Director
Constituent Development Officers David Ardrey, College of Education and Human Services
Planned Giving Yvonne M. Spencer, Director
Leah Bahr, Central Development Officer Matthew C. Baughman, Paul Simon Public Policy Institute Mary Carroll, Chicago Region Deborah Case, School of Medicine Tammy C. Cavarretta, College of Business
Financial Services
Cindy Ciganovich, Investment Specialist Marla Fuller, Director of Gift Accounting Kimberly Hawk, Director of Accounts Payable Kristy McClurken, Budget Officer Coordinator Cindy Moreno, Director of Accounting Services, Springfield Office
The Southern Illinois University Foundation
was established in 1942 to solicit, receive, hold and administer gifts from private sources for educational purposes. The SIU Foundation provides alumni and other friends a means to invest in the future of their university. The Foundation is an independent, nonprofit corporation, which exists solely to further the mission of SIU Carbondale. It is a designated 501 (c)3 organization with appropriate approval from the Internal Revenue Service to issue tax deductible receipts for private gifts received to support Southern Illinois University Carbondale. The mission of the SIU Foundation is to maximize private support for SIU Carbondale to assist the University in achieving its long-range goals. As outlined in the Strategic Plan, the activities, programs, and efforts of the SIU Foundation will be driven by five priority focus areas. These areas are developing next wave fundraising programs; fostering and improving relationships with key constituency groups; recruiting and retaining strong, high-capability staff; creating comprehensive marketing strategies; and implementing improved board governance and leadership structures. Throughout the coming years, the SIU Foundation will continue to raise money with the help of others, tout our quality board and staff, and tell its story.
Produced by the SIU Foundation Division of Institutional Advancement Department of Development Communication Southern Illinois University Foundation Colyer Hall – Mail Code 6805 Southern Illinois University Carbondale 1235 Douglas Drive Carbondale, Illinois 62901 (618) 453-4900 siuf@siu.edu www.siuf.org Editor: Greg Scott Designer: Emily Hunsaker Photographers: Steve Buhman, Rusty Bailey and Jeffrey Garner Contributors: Libby Banycky, Nancy Vallino
Southern Illinois University Foundation Colyer Hall – Mail Code 6805 Southern Illinois University Carbondale 1235 Douglas Drive Carbondale, Illinois 62901 (618) 453-4900 siuf@siu.edu www.siuf.org