UC Foundation FY19 Annual Report

ANNUAL FISCAL YEAR 2019

the cover:

Reflection of the

The University of Cincinnati Foundation does not discriminate on the basis of disability, race, color, religion, national origin, ancestry, medical condition, genetic information, marital status, sex, age, sexual orientation, veteran status or gender identity and expression in its programs and activities. The complete Notice of Nondiscrimination can be found at uc.edu/about/policies/non-discrimination.

On

Photo by Chris Radcliffe.

UC Tangeman University Center tower.

ANNUAL REPORT

FISCAL YEAR 2019

THE UNIVERSITY OF CINCINNATI FOUNDATION

The UC Foundation fundraises on behalf of the University of Cincinnati and UC Health.

LETTERS

PETER E. LANDGREN, PRESIDENT

W. TROY NEAT, CHAIR

A COMMUNITY OF GIVERS

UC AND UC HEALTH SUPPORTERS TRANSFORM LIVES

INVESTMENT OVERVIEW

THE UC ENDOWMENT AND ITS PERFORMANCE

FUNDRAISING REPORT

FUNDRAISING REPORT FROM FISCAL YEAR 2019

LEADERSHIP

UC, UC HEALTH AND UC FOUNDATION LEADERSHIP

“THE WORD IMPACT STRESSES MAKING A DIFFERENCE. WE TAKE PRIDE IN CHANGING LIVES AND LIFE AS WE KNOW IT. IT’S NOT JUST PURSUING A LONG LIST OF ACTIONS. IT’S ABOUT THE DIFFERENCE OUR ACTIVITIES MAKE. QUANTITY MEANS LITTLE IF IT’S NOT CREATING AN OUTCOME FOR THE BETTER. IF WE HAVE IMPACT, IT WILL DEMAND HIGH QUALITY IN EDUCATION, RESEARCH AND SERVICE.”

Neville G. Pinto, PhD PRESIDENT, UNIVERSITY OF CINCINNATI

PETER E. LANDGREN

It is with immense gratitude that I have the privilege to witness the power of philanthropy each and every day in my role at the UC Foundation. Your investments change lives through the transformational power of student scholarships, by supporting discovery and innovation and advancing patient care. Your gifts allow the University of Cincinnati and UC Health to develop talent, create new opportunities and address the challenges of the future.

I wish each of you could see the sheer joy on the faces of young alumni who create their first endowed scholarship, mirroring their own experience as first-generation college students at UC. Their ability to share their UC success with others in perpetuity is transformational in and of itself.

Your generosity has a wide-reaching impact—an impact far beyond anyone’s ability to comprehend. You will see in the pages of this report that the dollars you’ve contributed are impressive. I want you to know that the impact of your gifts is even greater than what numbers on a ledger might suggest.

Thank you for being a vital part of UC’s Bicentennial year. Two hundred years, and we’re just getting started—all because of you. We can’t wait to engage you in what’s NEXT!

Peter E. Landgren PRESIDENT, UNIVERSITY OF CINCINNATI FOUNDATION VICE PRESIDENT FOR UNIVERSITY ADVANCEMENT, UNIVERSITY OF CINCINNATI

W. TROY NEAT

It is quite noteworthy that during the UC’s Bicentennial year, the UC Foundation staff and Board of Trustees came together and revisited our Foundation’s vision and mission.

I am extremely proud that this teamwork resulted in powerful statements that reflect why we exist. Our new vision and mission will serve as a powerful guide as we collectively continue this important work to elevate the University of Cincinnati and UC Health.

Without you, we wouldn’t be able to let our new vision— to transform lives—lead us.

Without you, our new mission—inspiring a community of UC and UC Health supporters through the power of philanthropy

On behalf of my fellow trustees, thank you for your partnership and support. Your generosity makes so much possible.

I look forward to seeing what the years ahead will bring as we continue to live out this powerful new vision and mission.

W. Troy Neat CHAIR, UNIVERSITY OF CINCINNATI FOUNDATION BOARD OF TRUSTEES

“THE

NEW HOME FOR NEUROSCIENCE— THE UC GARDNER NEUROSCIENCE

INSTITUTE—IS SYMBOLIC OF WHAT CAN HAPPEN WHEN WE WORK COLLABORATIVELY WITH THOSE WE SERVE TO TRULY UNDERSTAND WHAT’S MOST NEEDED, AND DELIVER ON THOSE NEEDS FOR OUR COMMUNITY.”

Richard P. Lofgren, MD, MPH, FACP PRESIDENT AND CEO, UC HEALTH

IGNITING PASSION TO TRANSFORM LIVES

To inspire a community of UC and UC Health supporters through the power of philanthropy

A Community of Givers

UC and UC Health supporters transform lives through the power of philanthropy.

SUPPORTING

EMPOWERING THE NEXT GENERATION OF LEADERS

The newly named Elmer Kizer Community Scholars Program expands its impact to provide mentoring and scholarship support

CREATING

INVESTING IN INNOVATION AND RESEARCH ADVANCES EDUCATION AND HEALTH CARE

BEARCATS

THE BEARCAT FAMILY SHARES ITS PASSION AND GENEROSITY DURING DESIGNATED GIVING DAYS

Eight endowed chairs are established at the UC College of Medicine in the areas of anesthesiology, cardiac surgery, integrative oncology, musculoskeletal research, orthopaedic surgery and pediatric ophthalmology. Thank you to the Buckberg, Hayden, Stern and Abrahamson families and the Department of Anesthesiology.

The Huffman Family Foundation advances brain tumor research with

Donors support the UC Gardner Neuroscience Institute with $12 million in gifts to research, programs and patient care.

UC’s College of Medicine and Carl H. Lindner College of Business collaborate on research for the treatment of anxiety and depression, thanks to Bill Yung and Yung Family Foundation’s $2.1

The second annual UC Day of Giving raises more than $415,000—a 43% increase from 2018—benefiting 321 funds.

More than 200 corporate and foundation partners donate $3.8 million for UC scholarships.

More than 2,650 donors give $176,504 to UC and UC Health during the 2018 #GivingTuesday fundraising campaign.

UC faculty and staff celebrate 200 years of impact by giving $3,948,794 through its annual faculty/staff fundraising effort.

BUILDING

NEW SPACES REPRESENT THE INVESTMENT DONORS MAKE IN PEOPLE—STUDENTS, PATIENTS AND THE COMMUNITY

INNOVATING

PROGRAMMATIC OPPORTUNITIES PROPEL STUDENTS AND FACULTY TO SOLVE TOMORROW’S CHALLENGES

UC Foundation Trustee Bob Fealy and his wife, Rose, establish an endowed chair for the Center for Entrepreneurship at UC’s Carl H. Lindner College of Business.

UC’s new Carl H. Lindner College of Business opens. The $120 million building was funded in part by an $11 million gift from the Lindner family and American Financial Group, the largest in the college’s history.

advanced and disruptive technologies at

A $2 million joint gift from the Kautz Family Foundation and Woodrow Uible creates the Kautz-Uible Economics Institute at the Carl H. Lindner College of Business.

COMING

BEARCATS JOIN FORCES TO CELEBRATE AND HELP OTHERS

UC commemorates its Bicentennial with Community Day, ending with the MOMENTUM light show.

the third annual Bearcats Dash & Bash

The event raises funds for UCATS and the UC College of Law’s Ohio Innocence Project.

The Cincinnati Cancer Center recognizes those touched by cancer during the Knock Cancer Out of the Park event at the Cincinnati Reds game.

Investment Overview

Celebrating the transformative impact of UC’s endowment.

UC'S CHIEF INVESTMENT OFFICER

The close of UC’s Bicentennial year is a perfect opportunity to reflect on the transformative power of permanent capital. UC’s endowment is a source of ongoing support that creates opportunities for students, enhances UC’s ability to attract talent and shapes the future by facilitating innovative research. UC’s first endowment was established shortly after the university was founded, and its subsequent 2,200 endowment funds continue to provide ongoing and vital support to UC’s mission.

UC’s endowment pool had another strong year in fiscal 2019, protecting value during weak markets in the first half of the year, and then surging forward to end the year at its highest value ever, $1.45 billion. I am excited about the future of UC’s endowment; its power to make an impact has never been stronger. UC’s Investment Office, Investment Committee, the UC Foundation and our generous donors have found multiple ways to increase the endowment’s size and power to generate future investment gains. These efforts have even been celebrated recently by college and university peers with recognition including: a Good Governance Award, an Innovation Award Finalist nomination, a Top 30 University CIO accolade and a Top 100 Public Sector Investor honor. The people devoted to managing and overseeing UC’s endowment are passionately focused on enhancing its ability to support UC in innovating education, building excellence and providing opportunities for students.

Karl Scheer CHIEF INVESTMENT OFFICER, UNIVERSITY OF CINCINNATI

TEN-YEAR PERFORMANCE

The past decade has provided a lesson in the ability of a bold, innovative and resolute investment program to drive investment profits. Ten years ago, UC’s endowment totaled $833 million; since then endowment investments have not only generated gains of $879 million but have also delivered $645 million of spendable cash to UC to support scholarships, professorships, research and other key components of UC’s mission.

As the U.S. emerged from the 2008 global financial crisis, UC’s endowment was in relatively good shape with healthy exposure to equity in the forms of public stocks and private equity. UC’s global public stocks gained +171% during the subsequent 10-year bull market. Incredibly, UC’s private-equity investments gained +274% during the same decade. This underscores the strong stewardship that UC has provided for its endowment capital for far longer than just the past decade. It also highlights the advantages that a billion-dollar investment program has over smaller institutions and individual investors: due to its size, reputation and long tenure in capital markets, UC routinely gains entry into exclusive private-equity funds, premium public stock managers and other investments not accessible to most investors.*

UC provides existing and new endowment funds a portfolio of exceptional investments that could not be replicated today, an award-winning governance structure and the dedication of dozens of investment experts within the UC Investment Office and on the UC Investment Committee. An endowment is not only a highimpact way to turbocharge your personal philanthropic interests; as you will see in the following fund spotlight, it is also a meaningful way to honor the legacy of those who have had an impact on you and to ensure that their story continues to be told.

EXTRAORDINARY LIFE

In 1984, the estate of Lilli Baerman Lange donated $200,000 to UC to create a new endowment in celebration of the remarkable life of her late husband, Willy Lange.

Willy Lange was born in 1900 in Berlin. He earned his doctorate from the University of Berlin at age 23. The faculty under which Dr. Lange studied included famous professors Wilhelm Traube and Albert Einstein. In 1939, under political pressure, the Langes fled Nazi Germany through Canada to Cincinnati. Dr. Lange became a researcher and faculty member at UC before becoming a leader in Procter & Gamble Co.’s chemistry department. Following a 25year career at P&G, Dr. Lange rejoined UC’s faculty and research staff until his death in 1976. Among his many accomplishments and accolades, Dr. Lange authored 50 technical papers, originated 17 patents and discovered key chemical science underlying today’s most important agricultural pesticides, for which he received the Eminent Chemist Award by the American Chemical Society in 1958.

A few years after Dr. Lange’s death, Mrs. Lange decided to honor her husband’s legacy by creating a UC endowment providing permanent scholarship support. This decision has not only transformed the lives of countless deserving chemistry students, it has utilized the multiplying power of endowment and transformed the impact of the gift. Lilli Lange’s donation of $200,000 has funded $662,000 in scholarships in 35 years while the invested principal has grown to $470,000 and will continue to fund future scholarships.

Endowments extend the impact of gifts by spending a portion (around 4%) each year on the mission while investing the rest to replenish principal, thereby extending each gift’s impact indefinitely into the future. It is no wonder that when Mrs. Lange chose to celebrate her husband’s story by creating an endowment, she joined thousands of other UC donors who have transformed their gifts through the impact of UC’s endowment funds.

Rebecca Haley, PhD ’18, says support from the Lange Fund allowed her to focus on her laboratory research, write her dissertation and focus on her career goals. Today, she is an assistant professor of chemistry at the University of Wisconsin-River Falls.

INVESTMENT PERFORMANCE

(As of June 30, 2019) The Lange

Fundraising Report

Fiscal year 2019 commitments are organized by purpose, fund type and source.

FISCAL YEAR 2019 COMMITMENTS*

$102,033,118 in Total Funds

*Excludes UC Health contribution, non-government research fund, software gifts-in-kind, campaign-only gifts.

UC Foundation and UC Health Foundation Combined*

EXPENSES

UC & UC HEALTH

NEVILLE G. PINTO, PhD

PRESIDENT, UNIVERSITY OF CINCINNATI

UC FOUNDATION

CHAIR

W. TROY NEAT Cincinnati, OH

PRESIDENT PETER E. LANDGREN Cincinnati, OH

RICHARD P. LOFGREN, MD, MPH, FACP

PRESIDENT AND CEO, UC HEALTH

PAST CHAIR

ROBERT L. FEALY Chicago, IL

TREASURER

THOMAS D. FREEMAN Cincinnati, OH

INTERIM

SECRETARY

CALEB D. WHITTED Cincinnati, OH

UC FOUNDATION LEADERSHIP

Peter E. Landgren

PRESIDENT

VICE PRESIDENT FOR UNIVERSITY ADVANCEMENT, UC

Linda E. Bledsoe

VICE PRESIDENT FOR HUMAN RESOURCES

Julie L. Engebrecht

ASSISTANT VICE PRESIDENT FOR COMMUNICATIONS AND MARKETING

Thomas D. Freeman

VICE PRESIDENT AND CFO

Jennifer L. Heisey

VICE PRESIDENT FOR ALUMNI AND DONOR EXPERIENCE

Stephen A. Rosfeld

VICE PRESIDENT FOR DEVELOPMENT

Carrie E. White

VICE PRESIDENT FOR ADVANCEMENT SERVICES

Caleb D. Whitted

ASSISTANT VICE PRESIDENT FOR PRESIDENTIAL INITIATIVES

Michael D. Zenz

VICE PRESIDENT FOR DEVELOPMENT, ACADEMIC HEALTH CENTER AND UC HEALTH

TRUSTEES

Shakila T. Ahmad Mason, OH

Jerry C. Kathman Cincinnati, OH

John M. Tew Jr., MD Cincinnati, OH

TRUSTEES EMERITI

Peter A. Alpaugh Cincinnati, OH

John B. Berding Cincinnati, OH

Elroy (El) Bourgraf Naples, FL

Eric C. Broyles, Esq. Ft. Washington, MD

Robert R. Buck Naples, FL

Kenneth V. Byers Jr. Cincinnati, OH

Phil D. Collins Cincinnati, OH

Patricia Klingbiel Connell Elmhurst, IL

Sean P. Connell Elmhurst, IL

William J. Davis Cincinnati, OH

Todd C. DeGarmo Washington, DC

Dianne G. Dunkelman Cincinnati, OH

Leigh R. Fox Cincinnati, OH

Jerry L. Fritz Bella Vista, AK

Brian E. Hall Cleveland, OH

Ruthie S. Keefe Cincinnati, OH

Barbara W. Kellar Cincinnati, OH

Stephen E. Kimpel Columbus, OH

Robert J. King Jr. Cleveland, OH

Eva L. Maddox Chicago, IL

Rae A. Mang Needham, MA

Darrell D. Miller, Esq. Los Angeles, CA

Sandra S. Wiesmann Bethesda, MD

Andi K. Wiot Cincinnati, OH

Gregory C. Wolf Dallas, TX

Andrea I. Zahumensky Louisville, KY

EX-OFFICIO TRUSTEES

Robert F. Ambach Cincinnati, OH

Eugene R. Allspach* Bellaire, TX

Clark E. Beck Sr., PE, ScD* Dayton, OH

James E. Blakeney* Dayton, OH

Henry T. Brown* Weston, MA

Jack E. Brown* Cincinnati, OH

Otto M. Budig Jr.* Cincinnati, OH

Eva L. Maddox* Chicago, IL

John M. Mang* Needham, MA

Thomas E. Mischell* Cincinnati, OH

Jerome P. Montopoli* Covington, KY

Marjorie Motch* Cincinnati, OH

Valerie L. Newell* Cincinnati, OH

H.C. "Buck" Niehoff* Cincinnati, OH

Yvonne C. Robertson* Cincinnati, OH

Carrie K. Hayden Steamboat Springs, CO

Stuart G. Hoffman, PhD Pittsburgh, PA

Kathryn A. Hollister Cincinnati, OH

Gyan Jha Louisville, KY

Gary D. Johns Cincinnati, OH

Timothy E. Johnson, PhD Cincinnati, OH

Joffre P. Moine II Santa Barbara, CA

Jeffrey C. Bauer, DBA Cincinnati, OH

Daniel P. Carmichael* Indianapolis, IN

James E. Schwab* Mercer Island, WA

Laurence F. Jones III Cincinnati, OH

Joseph P. Judge Washington, DC

William B. Monnig, MD Crestview Hills, KY

Shenan P. Murphy Cincinnati, OH

Russell C. Myers Cincinnati, OH

Jacqueline C. Neumann Cincinnati, OH

Cora K. Ogle, PhD Cincinnati, OH

James F. Orr Cincinnati, OH

Michael J. Paxton Naples, FL

Ellen Rieveschl Covington, KY

Andrew T. Filak Jr., MD Cincinnati, OH

Thomas D. Freeman Cincinnati, OH

Richard J. Harknett, PhD Cincinnati, OH

Sandra W. Heimann Cincinnati, OH

Lawrence J. Johnson, PhD Lawrenceburg, IN

Peter E. Landgren Cincinnati, OH

Thomas E. Dewey* Cincinnati, OH

David B. Dillon* Kansas City, MO

John S. Domaschko* Covington, KY

John B. Goering* Cincinnati, OH

Nancy R. Hamant, EdD* Cincinnati, OH

Donald C. Harrison, MD* Cincinnati, OH

Robert A. Heimann* Cincinnati, OH

S. Jay Stewart Naples, FL

J. Clay Stinnett Bellevue, KY

Richard "Dick" E. Thornburgh* Palm Beach, FL

Woodrow "Woody" H. Uible* Cincinnati, OH

Myron E. Ullman III* Montrose, CO

Margaret "Peg" K. Valentine* Cincinnati, OH

Alvin F. Roehr Jr. Cincinnati, OH

Ryan M. Rybolt Cincinnati, OH

James A. Schiff, PhD Cincinnati, OH

Michael T. Schueler Maineville, OH

Richard C. Seal Cincinnati, OH

Shimul A. Shah, MD Cincinnati, OH

Tony L. Shipley Cincinnati, OH

Randall "Randy" E. Smith Cincinnati, OH

Richard P. Lofgren, MD Cincinnati, OH

Neil J. MacKinnon, PhD Cincinnati, OH

Kristi A. Nelson, PhD Cincinnati, OH

Neville G. Pinto, PhD Cincinnati, OH

William “Wym” Portman lll Cincinnati, OH

Gregory W. Rouan, MD Cincinnati, OH

Thomas H. Humes Jr.* Cincinnati, OH

Marvin P. Kolodzik* Cincinnati, OH

David M. Lance* Cincinnati, OH

Louis H. Lauch* Cincinnati, OH

Jerry P. Leamon* Cos Cob, CT

Doloris F. Learmonth, Esq.* Cincinnati, OH

William E. Lower* Cincinnati, OH

Michael D. Valentine* Cincinnati, OH

Edward W. Wedbush* Rancho Santa Fe, CA

Jeffrey P. Williams* New York, NY

Steven A. Wilson* Ft. Lauderdale, FL

Frank C. Woodside lll, MD, JD* Cincinnati, OH

Jeffrey L. Wyler* Cincinnati, OH

Wilbert L. Ziegler* Ft. Mitchell, KY

Anthony Zingale* Palo Alto, CA

*Denotes Herschede Society as of June 30, 2019