Southwestern Medical Foundation 2015 Annual Review

S O U T H W E S T E R N

M E D I C A L

F O U N D A T I O N

CELEBRATING 75 YEARS GIVING MEANING TO GENEROSITY

2015 ANNUAL REVIEW

S O U T H W E S T E R N M E D I C A L F O U N D AT I O N T E A M

S

F

O

U

N

ervice to Community

Demonstrating unwavering care for the enterprise through service in all daily interactions Engaging in team collaboration and leadership in serving the Foundation and our community

Kathleen Gibson

Roxane Barry

Ryan Quinn

Katy Sinor

PRESIDENT AND CEO

Shelley Duke Brian Grosheider

Kay Schlankey Renee Sharpe

Alexandra Sizemore Stephanie Vidikan

D

A T

I

O

N

W

B

U

I

orthy Vision of Excellence

xhibiting a commitment E to excellence that builds on the Foundation’s extraordinary legacy ontributing insights and C best efforts to maximize the Foundation’s impact

L

D

I

N

G

M

S

T A

N

indful Stewardship

D

A

R

F

D

S

act-based Decisions and Best Outcomes

cting with responsibility, A tact and diplomacy; displaying awareness of how our daily efforts connect to our bigger purpose and goals

ngaging in processE centered thinking and mindful decision-making to ensure performance that meets the highest industry standards

lanting seeds for strong, P lasting relationships in each of our interactions

mbracing fact-based, E collaborative decisions to ensure the success of the Foundation for the future

Building a Great Medical Center in the Southwestern United States.

Seventy-five years ago, the founders of Southwestern Medical Foundation posed a challenging and compelling question: Why not a great medical center in the Southwestern United States?

It was a bold vision. In 1939, Dallas, one of the region’s leading cities, could not claim even adequate medical education or health care to serve its growing population. Yet, over the course of the decades and with the support of far-sighted philanthropists, greatness has been achieved.

In 1943, the Foundation began Southwestern Medical College, which evolved into today’s world-renowned UT Southwestern Medical Center. It was private philanthropy that first made our institutions possible and it is private philanthropy that remains vital in sustaining excellence.

As the Medical Center’s primary philanthropic partner, Southwestern Medical Foundation plays a key role in inspiring and implementing that philanthropy. In 2015, our commitment was as strong as ever. Our efforts are evidenced by grants, scholarships, programs and services, and we are pleased to share in this report highlights of the Foundation’s activities.

Above all, we are grateful for our donors’ insights and investments that help the Foundation and Medical Center make a powerful impact on the health of North Texas and communities around the world. Thanks to our donors’ ongoing commitment, we are helping deliver the highest quality of medicine through brilliant scientific discoveries, outstanding medical training and compassionate patient care.

2

S OUT HWES T ERN MEDICAL FOUNDAT ION 2015 AN NUAL R E VI E W

Educating the next generation

Through scholarships at Southwestern Medical Foundation, the next generation of physicians is educated and inspired.

What can the Foundation do to take care of the students who will be taking care of us tomorrow? Scholarship funds are a critical asset for those who are gaining the exemplary education needed by the next generation of our health care providers.

50%+ OF ALL PRACTICING PHYSICIANS IN NORTH TEXAS RECEIVE SOME OR ALL OF THEIR EDUCATION AT UT SOUTHWESTERN

200+

STUDENTS CURRENTLY AT UT SOUTHWESTERN RECEIVED SCHOLARSHIP SUPPORT FROM THE FOUNDATION IN 2015

“THE MEDICAL PROGRESS IN ANY COMMUNITY IS LARGELY ASSOCIATED WITH THE DEVELOPMENT IN SCHOLARSHIP OF MEDICAL ENDOWMENT GRANTS WERE AWARDED IN 2015 EDUCATION WITHIN THE COMMUNITY.”

$220K

Edward H. Cary, M.D. FOUNDER

3

“THE SCHOLARSHIP I RECEIVED FROM THE FOUNDATION HAS ALLOWED ME TO PURSUE MY DREAM WHILE GIVING ME FINANCIAL SECURITY. THANK YOU!” Jean-Claire D.

“WHEN I RECEIVED MY ACCEPTANCE LETTER AND ALSO SAW THAT I HAD RECEIVED A SCHOLARSHIP FROM SOUTHWESTERN MEDICAL FOUNDATION, I REALLY FELT THAT THIS PLACE WAS GOING TO GIVE ME ALL THE SUPPORT AND ENABLE ME TO BE THE BEST PHYSICIAN I COULD BECOME.” Phil T.

“THE SCHOLARSHIP FROM THE FOUNDATION HAS SAVED ME MORE THAN $14,000 PER YEAR IN OUT-OF-STATE TUITION… AND FOR THAT I WOULD TRULY LIKE TO SAY THANK YOU TO ALL OF YOU.” Jennifer B.

“I’M PROUD OF WHAT YOUR DONATION HAS ENABLED ME – AND MANY OTHERS WITH DIFFERENT STORIES – TO ACCOMPLISH.“ Eric G.

L

50%+

$220K

A VIRTUOUS CYCLE

Excellence in medical education IN SCHOLARSHIP assures top faculty, helps to ENDOWMENT GRANTS maintain the highest quality WERE AWARDED IN 2015 CURRENTLY AT of research and leads to the UT SOUTHWESTERN RECEIVED medical breakthroughs that SCHOLARSHIP SUPPORT FROM create major advances in THE FOUNDATION IN 2015 clinical care, improving life for patients in an environment that inspires physicians to share their knowledge with the next generation of physicians.

STUDENTS

R

C

OF ALL PRACTICING PHYSICIANS IN NORTH TEXAS RECEIVE SOME OR ALL OF THEIR EDUCATION AT UT SOUTHWESTERN

200+

ION

ICA

U AT

LIN

ED

C

C

E R A

In May 2015, as part of our Leading the Conversation on Health series, the Foundation hosted J. Gregory Fitz, M.D. in dialog with an outstanding medical student, to discuss How Great Physicians Are Made.

Dr. Fitz is Executive Vice President for Academic Affairs and Provost, Dean of UT Southwestern Medical School and Professor, Department of Internal Medicine.

ES

EARCH

4

S OUT HWES T ERN MEDICAL FOUNDAT ION 2015 AN NUAL R E VI E W

Initiatives that build a better future It is difficult to narrow down the tremendous impact of Southwestern Medical Foundation. One of the benefits in advancing research is playing a real part in the fight against brain illness, cancer, heart disease and so many other patient conditions. As the primary philanthropic partner to UT Southwestern, the Foundation plays a key role in supporting the work that requires funding for faculty, for students and for patients. The leadership, energy, support and generosity of private philanthropy and civic leaders have provided an unmatched advantage in building the highest quality care possible for our community.

“THE IMPACT THROUGH THE DISCOVERIES THAT HAVE BEEN MADE HERE… HAS TOUCHED THE LIVES OF COUNTLESS INDIVIDUALS.” Daniel K. Podolsky, M.D. PRESIDENT, UT S OUTHWESTER N

Research Highlights Bruce Beutler, M.D. Director, Center for the Genetics of Host Defense, UT Southwestern

Eric Olson, Ph.D. Chairman of Molecular Biology, UT Southwestern

2011 Nobel Prize Winner Dr. Bruce Beutler is engaged in a project to identify the function of every human gene. Dr. Beutler has already discovered functions that were completely unanticipated and the roles they play in a number of diseases including diabetes. This new technology will provide essential insight into the causes and treatments of many diseases.

Dr. Eric Olson’s recent discoveries have paved the way for correcting the gene responsible for muscular dystrophy.

He and his team have used the CRISPR gene-editing technique to stop the progression of Duchenne muscular dystrophy in mice, and this technique could lead to one of the first successful genome editing-based treatments for this fatal disease in people.

5

Helen Hobbs, M.D. Professor, Eugene McDermott Center for Human Growth & Development, Internal Medicine, Molecular Genetics, UT Southwestern

Steven McKnight, Ph.D. Chairman of Biochemistry, UT Southwestern

Dr. Helen Hobbs is building on the Nobel-winning work of UT Southwestern Drs. Joseph Goldstein and Michael Brown to help create the next generation of anti-cholesterol drugs. In recognition of this work, she received the prestigious 2016 Breakthrough Prize in Life Sciences.

Dr. Steven McKnight is one of the preeminent researchers contributing to advancing the diagnosis and treatment of brain injury. His team discovered a drug that essentially boosts the production of brain cells, a process known as neuroregeneration. This discovery is so groundbreaking it has attracted additional investment from Calico, the biomedical arm of Google.

“THE QUALITY OF HEALTH CARE DETERMINES THE QUALITY OF LIFE IN A COMMUNITY.” Kathleen M. Gibson PRES I DENT A N D C E O , SO U TH WE STE RN M E DICA L F OU N D ATION

6

S OUT HWES T ERN MEDICAL FOUNDAT ION 2015 AN NUAL R E VI E W

Critical investments in neuroscience will help in prevention and advance cures for disorders of the brain:

The Campaign for the Brain

Alzheimer’s and neurodegenerative disease Autism and developmental disorders Brain cancer Depression and mental illness Epilepsy Movement disorders Multiple sclerosis Muscle and nerve disorders Pain and headache Sleep disorders Spinal cord injury and regeneration Stroke and cerebrovascular disease Traumatic brain injury

Some 50 million Americans suffer from brain-related diseases – traumatic, degenerative, psychiatric and developmental.

This represents an economic burden estimated at nearly $1 trillion, and suffering, for patients and caregivers, that cannot be quantified. Rapid progress in brain imaging is now making it possible for researchers to unravel the mysteries of the brain – work that will improve how injury and diseases of the brain can be prevented or diagnosed and treated. Indeed, the next decade can be as fruitful in brain science as the 1980s were for cardiovascular research, when work at UT Southwestern led to the discovery of statins and to two Nobel Prizes.

31

%

OF TOTAL FOUNDATION GIFTS IN 2015 WERE DEVOTED TO NEUROSCIENCE AND INJURIES OR DISEASES OF THE BRAIN

At UT Southwestern, extraordinary talent is committed to the understanding and eventual treatment of brain illness and brain injury.

How remarkable that labs in Dallas will help unlock the chains of mental illness, ameliorate a child’s autism and perhaps provide insights that prevent Alzheimer’s.

7

Engaging the Community in Conversation In September 2015, as part of the Leading the Conversation on Health series, Southwestern Medical Foundation hosted “What’s Next?

The Newest in Neuroscience: Confronting Alzheimer’s Disease” with Dr. Marc Diamond, Director of the Center for Alzheimer’s and Neurodegenerative Diseases.

In 2015, the University of Texas System Board of Regents approved the establishment of the Peter O’Donnell Jr. Brain Institute at UT Southwestern Medical Center. A $36 million gift from the O’Donnell Foundation enabled UT Southwestern to create this new Institute.

Southwestern Medical Foundation is committed to supporting the Peter O’Donnell Jr. Brain Institute in its efforts to advance neuroscience. Honorary Trustee Lyda Hill and others with deep associations with the Foundation are making critical investments in the effort.

Edith and Peter O’Donnell, Jr.

Foundation Trustee Julie Hersh is President of the Hersh Foundation. In 2015, the Hersh Foundation made a $5 million lead gift to help establish the Center for Depression Research and Clinical Care at UT Southwestern, and to endow the Julie K. Hersh Chair in Depression Research and Clinical Care. The goal of the Center is to accelerate new discoveries to understand the causes and treatment of depression and other mood disorders.

Julie and Ken Hersh

8

S OUT HWES T ERN MEDICAL FOUNDAT ION 2015 AN NUAL R E VI E W

2015 Foundation Highlights “We thank the generous donors, board members, honorary trustees, officers, community leaders and other friends who share the Foundation’s vision of support for academic medicine and who make an impactful difference in the health of our community and worldwide.”

Robert B. Rowling C H A I R M A N

In January 2015, we held a grand 75th anniversary celebration at the Winspear Opera House in the Dallas Arts District, commemorating the lasting legacy of Southwestern Medical Foundation and – most of all – thanking donors for their work and immensely important insight and support. In honor of our 75th year, the Foundation made a gift of $7.5 million to further UT Southwestern’s leadership in neuroscience.

2015 was the first full-year of operation for the state-of-the-art William P. Clements Jr. University Hospital (WPCUH). Over the year, the Foundation continued to manage pledges, receivables and quarterly distributions for the WPCUH Campaign.

In addition to the extraordinary gift from Governor Clements of $100 million, almost $70 million in WPCUH Campaign contributions and pledges have been managed by the Foundation since 2010.

9

Together with UT Southwestern, Southwestern Medical Foundation formed The Cary Council to create a greater awareness of the mission of the Foundation and the Medical Center among young professionals and emerging community leaders.

At our Annual Trustees Meeting in May, our Trustees awarded the Ho Din Award – the Foundation’s highest honor given to a student who embodies wisdom, human understanding and compassion – to Dr. Laurie Seidel. The Foundation also added 14 exemplary business and philanthropic leaders to the Board of Trustees.

2015-2016 New Trustees: Charles Anderson Leland R. Burk Richard W. Fisher Marshal D. Goldberg, D.D.S. J. Hale Hoak

Richard E. Hoffman, M.D. Gary C. Kelly Samuel D. Loughlin Bobby B. Lyle S. Todd Maclin

Lee Ann Pearse, M.D. Steven S. Schiff Lisa Troutt Kelcy L. Warren

In July, Southwestern Medical Foundation moved our offices to Parkland Hall on the campus of the magnificently renovated Old Parkland. Our new office is on the site of the original Southwestern Medical College – the medical school started by the Foundation in 1943, which became UT Southwestern.

10

S OUT HWES T ERN MEDICAL FOUNDAT ION 2015 AN NUAL R E VI E W

Highlights of Statements of Financial Position & Activities AS OF DECEMBER 31, 2015 AND 2014

2015

2014

Assets, Liabilities & Net Assets

IN THOUSANDS Assets Liabilities Net Assets

$ 783,332 $ 10,071 $ 773,261

$ 818,622 $ 14,414 $ 804,208

$ 35,173 $ 23,248 $ 4,468

$ $ $

$ 736,029 $ 10,298 $ (40,320)

$ 769,667 $ 11,113 $ 23,275

Summary of Revenues & Expenses IN THOUSANDS

Donor Contributions Program Grants and Scholarships Awarded* Fundraising, Management and General Expenses

22,170 20,550 3,373

*Excludes capital campaign grants for the William P. Clements Jr. University Hospital

Managed Investments & Performance IN THOUSANDS

Managed Investments Net Investment Income Net Realized and Unrealized Gains (Losses) on Investments

2015

2014

1 YR

3 YR

5 YR

1 YR

3 YR

5 YR

Performance of Pooled Investments Broad Investment Policy Index

-3.2% -3.3%

6.1% 3.9%

5.7% 4.1%

4.5% 11.7% 9.3% 3.5% 9.5% –

William P. Clements Jr. University Hospital Capital Campaign IN THOUSANDS

2015 – 2010

Extraordinary Gift from Governor William P. Clements, Jr. Total WPCUH Capital Campaign Contributions & Pledges since 2010 Kickoff Capital Grants for William P. Clements Jr. University Hospital

$ 100,000 $ 69,146 $ 154,664

Total WPCUH Capital Campaign Open Pledges & Commitments

$ 14,482

A complete copy of our audited financial statement is available upon request.

11

Expenses For Year Ending December 31, 2015 Program Grants and Scholarships 87.0% Faculty Support $13 million Research Support $7 million Building Support $7 million Community Support $2 million Student, Alumni and General Support $2 million Fundraising Expense 5.0% Management & General Expense 8.0%

¢

ON AVERAGE, IT COSTS US

3 TO RAISE $1.00 ON AVERAGE,

85

%

*

OF THE FOUNDATION’S EXPENSES WENT TO THE PROGRAMS WE SUPPORT

HOW DO WE COMPARE?

ON AVERAGE,

15

%

*

OF THE FOUNDATION'S EXPENSES WENT TO FUNDRAISING AND ADMINISTRATIVE COSTS

The highest-rated organizations exceed the following standards:** At least 33.3% spent on Program Expenses Less than 40% spent on Fundraising and Administrative Expenses Less than $0.30 spent on Fundraising to Raise $1.00

S O U T H W E S T E R N M E D I C A L F O U N D AT I O N S T R I V E S F O R T H E H I G H E S T S TA N D A R D S *Excludes 2014 and 2015 capital campaign grants for the William P. Clements Jr. University Hospital **From Charity Navigator.org

12

S OUT HWES T ERN MEDICAL FOUNDAT ION 2015 AN NUAL R E VI E W

THANK YOU TO OUR MORE THAN 825 DONORS TO TAL CON TRIBUTIONS FOR 2015 WERE M ORE TH AN

35 MILLION

$

2015 Donor Contributions FURTHERING THE FUTURE OF MEDICINE

STUDENT, ALUMNI, AND GENERAL SUPPORT FOR UT SOUTHWESTERN

10%

GENERAL SUPPORT OF SOUTHWESTERN MEDICAL FOUNDATION

18% BUILDING AND SPECIAL PROJECTS

23%

FACULTY SUPPORT

11%

RESEARCH AND EQUIPMENT

38%

In 2015, we welcomed 394 new donors to the Foundation. Many of these first-time donors made their gift in honor of or in memory of a friend or loved one. Tribute gifts provide a meaningful way to support the Foundation’s work while honoring someone in a special way.

HONOR INSPIRE MAKE A DIFFERENCE

REMEMBER PAY TRIBUTE MEMORY A LEGACY OF GIVING P L A N N E D G I F T S A N D B E Q U E S T S I N 2 0 1 5 T O S O U T H W E S T E R N M E D I C A L F O U N D AT I O N

A.D. Suttle Jr. Charitable Trust and Charitable Gift Annuities $6.9 million for fulfillment of the mission of Southwestern Medical Foundation and Basic Medical Research at UT Southwestern Irene Hamel Wadel Management Trust $4.7 million to create the Irene and Ernest Wadel Fund for Multiple Sclerosis Research Solomon B. Margolin and Nancy A. Cox Estates $3.4 million adding to the Solomon B. Margolin Fund for Cancer Research, now totaling more than $8 million Barbara L. Meyer $1 million to establish the Frederick R. and Barbara L. Meyer Fund for UT Southwestern Rollin W. King $713,000 adding to the Rollin and Mary Ella King Fund for Research of Liver Disease, now nearly $1.3 million Paula Meredith Mosle $500,000 planned gift annuity for the fulfillment of the mission of Southwestern Medical Foundation W. L. Todd, Jr. $230,000 to create the Warren L. Todd, Jr. Fund for the fulfillment of the mission of Southwestern Medical Foundation Dorothy Rogers Cullum $75,000 to create the Dorothy R. Cullum Fund to support student scholarships Jimmie C. LaFollette $46,500 adding to the Jimmie LaFollette Fund for Research in Non-Hodgkins Lymphoma, IntraCerebral Hemorrhage Stroke, Glaucoma, and Macular Degeneration for a total legacy gift of more than $1.5 million

Josephine Holley Trust $35,000 for continued support to the Holley-Franklin Medical Research Trust Fund, now totaling $430,000 David D. Emmett $19,000 to add to the David D. Emmett Fund for Cancer Research, now totaling $468,000 Ida Kern Papert $2,000 for the fulfillment of the mission of Southwestern Medical Foundation, together with other gifts from her estate for a total over $10,000

IN 2015, GIFTS FROM ESTATES AND PLANNED GIFTS TOTALED

MORE THAN $15 MILLION OR APPROXIMATELY

44

%

OF TOTAL FOUNDATION GIFTS

Parkland Hall at Old Parkland

214-351-6143 | swmedical.org

3889 Maple Avenue, Suite 100

Follow us:

Dallas, Texas 75219

T W O B E G I N N I N G S , O N E F U T U R E S O U T H W E S T E R N M E D I C A L F O U N D AT I O N , 1 9 3 9

|

SOUTHWESTERN MEDICAL COLLEGE, 1943