UC Foundation FY21 Annual Report: Rising Together

RISING TOGETHER

Annual Report

Fiscal Year 2021

At the University of Cincinnati and UC Health, we’re driven by next thinking bolder and dreaming bigger to create the tomorrow we envision, today.

On the cover: The University of Cincinnati Alumni Association marked its annual UC Alumni Celebration with a unique tribute to the honorees receiving the organization’s top alumni awards by featuring their likenesses on a painted mural in Cincinnati’s Over-the-Rhine neighborhood. The mural, a temporary installation at 1430 Vine Street, depicted 19 individuals whose accomplishments merit the UC Alumni Association’s premier recognition.

LEADERSHIP

2

6

INVESTMENT OVERVIEW WHERE AMBITION MEETS ACTION

12

22 LETTERS

15

FUNDRAISING REPORT

Through a foundation built on your philanthropy, the work of our University of Cincinnati and UC Health partners helped sustain our community through the challenges of the past year.

Our physicians, health care workers and researchers responded to COVID-19 by building on existing clinical care and research funded by your generosity. You engaged in the national conversation about social justice by enhancing UC’s distinctive programs. And, you supported current and future students by creating 89 new scholarship funds.

The pages of this report reflect the power of your investments across our university community to build equity and opportunity for the region, and advance research and patient care by fueling innovation.

Thank you for rising to meet this moment with passion and purpose.

VISION

IGNITING PASSION TO TRANSFORM LIVES.

MISSION

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

Peter E. Landgren PRESIDENT, UNIVERSITY OF CINCINNATI FOUNDATION

VICE PRESIDENT FOR UNIVERSITY ADVANCEMENT, UNIVERSITY OF CINCINNATI

The 2021 Spring Commencement celebration was UC’s first since the COVID-19 pandemic. UC held a ceremony for the Class of 2020 in August 2021.

A Letter from RAE A. MANG

It’s been an exciting and challenging time to serve as chair of the UC Foundation Board of Trustees.

Even through the most challenging of times, your generous support transforms lives through philanthropy. You continued to assist students through scholarships and endowments; invested in innovation and talent; and allowed for life-changing advancements in patient care.

I often share that as a first-generation college student, UC transformed my life in ways I never thought possible. I’m thankful for the opportunity to serve my beloved alma mater. It is an honor. The last year has reminded me that there is strength in unity—Juncta Juvant!

On behalf of my fellow trustees, thank you for inspiring a community of UC and UC Health supporters through the power of philanthropy.

Rae A. Mang

CHAIR, UNIVERSITY OF CINCINNATI FOUNDATION BOARD OF TRUSTEES

I’m immensely proud of all our Bearcats. We responded to recent challenges with hope and determination, unwavering in our mission. Together, we pushed forward to unleash the limitless potential of our students, faculty and staff to shape what’s next.

Neville G. Pinto, PhD PRESIDENT, UNIVERSITY OF CINCINNATI

Investment Overview

Chris Miller and his family in 2018. Miller was released from prison after serving 17 years for a crime he didn’t commit.

A Letter from KARL SCHEER

It gives me great pleasure to report that the UC endowment had a spectacular year, gaining +33% and producing $475 million of investment profits.*

In shorter periods, the UC endowment may generate gains or losses, yet over the past decade, UC’s $1.8 billion endowment generated a +128% cumulative gain, substantially outperforming spending and inflation.

The UC endowment strategy is to maintain a diversified, equity-oriented, long-term portfolio that contains investments that play the role of “insurance policies” against inevitable challenging periods. In those times, UC’s endowment capital is protected from threats like accelerating inflation, equity market concentration and credit contractions. In easier markets, the portfolio’s equity orientation and high-powered private investments propel the endowment to outperformance—and that’s exactly what happened in fiscal year 2021.

Our efforts focus on helping endowment funds achieve their missions. One inspiring example is the Rosenthal family’s support of the Ohio Innocence Project through a fund dedicated to the work of freeing innocent people from prison.

Karl Scheer CHIEF INVESTMENT OFFICER, UNIVERSITY OF CINCINNATI

*See page 9 for performance notes.

THE PAST 10 YEARS and setting success for the NEXT

Albert Einstein, who knew something about unleashing unimaginable amounts of energy, said that compound interest was the most powerful force in the universe. Compounding is what enables an endowment to magnify the impact of donors’ gifts of permanent capital. By spending a small amount each year and allowing the remaining capital to experience compounded investment gains, an endowment fund ultimately can provide support that is many multiples of the original gift.

Over the past decade, the UC endowment has produced annual returns of 8.6%, which has allowed each $10 million of endowment capital to provide support to UC of more than $6 million and simultaneously grow principal to nearly $12 million to fund future support. In other words, over one short decade, the endowment transformed each $10 million into $18 million of value.

This transformation is the culmination of many discrete long-term strategies UC has undertaken to protect and enhance its endowment. Among these strategies was reducing the endowment spending policy percentage so that more dollars stay invested and have the opportunity to grow. This strategy was expected to produce larger dollar spending after 25 years, but it exceeded our hopes by enabling spending to grow (from $52 million to more than $58 million per year) in only 10 years, while also growing the remaining principal from $1.0 billion to $1.8 billion.

One long-term strategy driving success is a concerted decade-long effort by the investment office to improve the quality and quantity of private equity and venture capital investment opportunities. The team spent many evenings in airports and wore out some shoe leather making the case to access-constrained investment managers that UC is a good investment partner.

Today, the private capital portfolio of UC’s endowment has grown from 13% to 27% of the portfolio in top-notch funds that have been our best-performing investments.

Our work has resulted in a reputation with preferred investment partners as a thought leader among institutional investment peers. This is because of an efficient and effective investment process for allocating capital, sourcing and accessing opportunities, and executing investments; and a culture of collaboration and transparency among all contributors. These portfolio and program enhancements build on a strong foundation and will position UC to be among the country’s elite endowments.

UC

Fiscal years 2011-2021

6/30/2021

The UC Endowment achieved $1 billion in investment gains over the past decade while simultaneously providing substantial and stable support to UC.

INVESTMENT Performance*

As of June 30, 2021

*Dollar figures reflect UC’s $1.8B endowment, which includes its $1.3B internally managed pool (the “A Pool”) and endowments managed by third parties, according to donor decree. Percentages reflect the “A Pool” and exclude seven community-oriented (non-financial) VC investments made 1999-2005. Weighted Benchmark is comprised of 60% global equities (MSCI

(Bloomberg

A wise and generous gift: The Rosenthal family supports the Ohio Innocence Project

In 2003, philanthropists Dick and Lois Rosenthal connected with two lawyers who had recently created the nonprofit organization, the Ohio Innocence Project (OIP), with the goal of exonerating and freeing wrongly convicted Ohioans using recently developed DNA techniques and other methods. OIP was led by a dedicated and determined attorney, Mark Godsey, but was severely under-financed and reliant on pro bono work from local attorneys when their busy and unpredictable schedules allowed. Driven by Lois, a 1960 UC graduate majoring in economics, the Rosenthals donated $2 million to create a UC endowment that would provide permanent funding to OIP.

The Rosenthals’ gift transformed OIP and inspired countless additional gifts. Supported by strong, reliable funding, Professor Godsey and social justice powerhouse UC Law have built one of the most successful and innovative Innocence Projects worldwide with a track record that includes exonerating and freeing 33 people who were imprisoned for crimes they didn’t commit, sponsorship of legislation eliminating flaws in the criminal justice system, and other programs to prevent wrongful convictions.

Exonerees’ stories are both heartbreaking and uplifting. Heartbreaking for obvious reasons: having been wrongly convicted of the worst crimes imaginable, clients are stuck in a nightmare in which they are kidnapped from their lives and stripped of their dignity and voice. Yet, despite their horrific experiences, these individuals focus on the future, gratitude and paying it forward by working with OIP.

OIP’s work has led to the release of 33 wrongfully convicted Ohioans. Prior to their exonerations, these individuals served over 650 years behind bars for crimes they did not commit. As of today, 243 years of freedom have been returned as a direct result of OIP.

Left to right: Mark Godsey, Dick Rosenthal, Ru-El Sailor, Laurese Glover, Jennie Rosenthal, Clarissa Jackson and Rickey Jackson. Sailor, Glover and Rickey Jackson are exonerated clients.

The Rosenthal family’s generosity and wisdom in choosing to structure their gift as an endowment has magnified its impact. The Rosenthals’ original $2 million gift has already provided over $2 million of support to OIP and has grown to $2.5 million of value for funding future support. Dick Rosenthal has continued his family’s legacy with additional donations, including a $15 million gift in 2016 that was the largest that any Innocence Project has ever received.

Not only did Dick Rosenthal make the largest gift in the history of Cincinnati Law, the Rosenthal Family Foundation and three generations of family members continue to be committed to OIP. Through their gifts, the Rosenthals have accelerated and broadened OIP’s impact.

Evin King learns his charges are dismissed and he will be released from prison.

THE OHIO INNOCENCE Project is currently seeking justice for 43 Clients.

Friends, family and exonerees gather at Nippert Stadium for the 2019 Bearcats Dash & Bash.

Where Ambition meEtS Action

When a global pandemic threw the world off balance and social justice came to the forefront, we saw your strength and commitment. Through the power of philanthropy you made a difference.

Through Next, Now: The Campaign for Cincinnati, you are helping to fuel a new era of inclusion, innovation and impact at UC and UC Health.

In fiscal year 2021, what’s next started with YOU.

Empower our next leaders

$24.9 million

Donors give $24.9 million to scholarships.

Former UC faculty member Stephan D. Weiss, PhD, pledges $100,000 to endow and name a mental health services program for UC College of Medicine students.

Robert J. Herbold, BS ’64, HON ’14, gives $1 million to create four graduate fellowships in the UC College of Engineering and Applied Science.

Elizabeth and Brian, BS ’91, Burress create a scholarship for students with intellectual and developmental disabilities in the UC College of Education, Criminal Justice, and Human Services’ Advancement and Transition Services program.

A $6.9 million anonymous gift establishes the WebsterGustin Medical Scholarship at the UC College of Medicine. Honoring Class of 1970 alumni Warren Webster, MD, and Bryon Gustin, MD, the scholarship fund provides full tuition for 40 students for over four years.

UC College of Medicine emeriti professors John Cuppoletti, PhD, and Danuta Malinowska, PhD, endow a scholarship fund for students in the UC 1MPACT House, a living-learning community for students in UC’s Gen-1 Program.

Mary Jane Watson and Robert Hickey include the Greater Cincinnati STEM Collaborative Bicycle Club in their estate plan. The program for middle school students is housed in the UC College of Education, Criminal Justice, and Human Services.

Family and friends honor the memory of Greg Wolf, BBA ’92, by giving to the Greg Wolf “Strength in Unity” Endowed Football Scholarship Fund. Wolf, the vice chair of the UC Foundation Board of Trustees, passed away in August 2020.

Joan, CON ’79, and Mark, CEAS ’79, Hurray fund scholarships at the UC College of Nursing and the UC College of Engineering and Applied Science. An estate gift from the Hurrays will support innovation and technology in nursing.

Inspired by the Next Lives Here

Co-op 2.0 pathway, Tim and Janet Johnson’s $795,000 gift creates student stipends for co-ops in the nonprofit sector. The gift also funds a program coordinator position for Co-op 2.0.

Corporate and foundation partners donate $3.5 million to UC scholarships.

EXPLORE our next Frontier

An anonymous donor drives kidney care and research in the UC College of Medicine with two gifts: $1 million helps create the Robert G. Luke, MD Endowed Chair in Nephrology and $2 million creates the Center for Discovery, Innovation and Implementation in Kidney Disease.

A $1.2 million planned gift from Julz Brown supports research into the treatment of pulmonary infections at UC College of Medicine. It will also help UC students with emergency needs.

The LAM Foundation, the Crissey family and the Hagins Family Matching Gift Program establish a professorship with $1 million to continue research of LAM, a rare lung disease, at the UC College of Medicine.

Prior to his passing in February 2021, John Goering, BBA ’56, MBA ’60, HON ’05 endows the John and Gloria Goering Chair in Private and Family Business at UC’s Carl H. Lindner College of Business.

The Robert and Adele Schiff Family Foundation make a $10 million gift to the UC Cancer Center Survivorship Program supporting patient care, research and education.

EMBRACE our next PURPOSE

Peter Stern, MD, and Sandra Stern endow a fund supporting the UC College of Medicine’s effort to grow a diverse student body through scholarships.

The College of Law Class of 1968 recognizes colleague and classmate, Beckwith, A&S ’65, Law ’68, with a gift to the college’s building campaign.

UC emeriti professors Laura and Richard Kretschmer make a gift to the Women’s Basketball Locker Room in Fifth Third Arena.

makes a gift to benefit the UC Men’s Basketball vDevelopment Fund.

The fourth annual UC Day of Giving raises more than $2.2 million with more than 3,000 gifts thanks to alumni, donors, students, faculty and staff.

David Herche

committed to Social JUSTICE

Donors drive new and existing social justice programs, scholarships and positions across UC And UC Health.

Jeff and Jennifer Davis assist social justice work at the UC College of Arts & Sciences and the Nathaniel R. Jones Center for Race, Gender, and Social Justice at the UC College of Law with a $1.5 million gift.

Procter & Gamble supports diversity and inclusion programs at the UC College of Engineering and Applied Science. A new fund invests in the future by building a more inclusive engineering workforce.

Procter & Gamble’s Beauty division partners with the UC College of Design, Architecture, Art, and Planning and creates three new funds bolstering diversity and inclusivity in the design field. The funds provide opportunities for high school through graduate students at the Myron E. Ullman, Jr. School of Design.

Messer Construction Co. supports diversity programming at the UC College of Engineering and Applied Science and UC Health.

IMPACT BY THE NUMBERS

$1 billion

UC’s endowment reached $1 billion in investment gains in the last decade. This increase nearly doubled the endowment’s support of UC.

In the year since the launch of the UC Health Crisis Response campaign, more than 1,000 supporters donated over $2.5 million.

Thank you for keeping UC Health employees protected and healthy.

15 endowed faculty chairs were added over four years across the University of Cincinnati.

$5.9 million was raised in gifts relating to social justice and diversity, equity and inclusion. The number of these gifts increased seven times from fiscal year 2020.

fundraising report

The Digital Philanthropy Center, formerly the UC Telefund, was launched in February 2021. Student associates contact alumni, parents and friends of UC to help raise funds to support scholarships, extracurriculars, research opportunities, new technologies, study abroad, co-ops, and more to enhance the UC experience for current and future students.

FISCAL

YEAR 2021 COMMITMENTS*

BY PURPOSE

BY FUND TYPE

$95,360,610

Current Operations

$40,013,359 — 41.9%

Endowment

$53,173,555 — 55.7%

Facilities

$2,173,696 — 2.4%

BY SOURCE

$95,360,610

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

New Commitments

$69,775,950 — 73.1%

Deferred Gifts

$25,317,637 — 26.6%

Gift-in-Kind (Non-software)

$267,023 — 0.3%

FINANCIAL Highlights

UC Foundation and UC Health Foundation Combined*

While UC Health prides itself on being ready for what’s next, the swell of community support helped us respond to COVID-19 swiftly and safely.

From gifts that enhanced testing, telehealth and research to donated supplies and letters of encouragement, we are so grateful for your show of support to our patients, health care teams and frontline responders.

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

UC & UC HEALTH Leaders

Neville G. Pinto, PHD

PRESIDENT, UNIVERSITY OF CINCINNATI

UC FO UNDATIO N Board of Trustees

CHAIR

Rae A. Mang Medfield, MA

PRESIDENT

Peter E. Landgren Cincinnati, OH

UC FOUNDATION Leadership

Peter E. Landgren

PRESIDENT, UC FOUNDATION

Richard P. Lofgren, MD, MPH, FACP

PRESIDENT AND CEO, UC HEALTH

PAST CHAIR

W. Troy Neat Cincinnati, OH

TREASURER

Thomas D. Freeman Cincinnati, OH

Jennifer L. Heisey

SECRETARY

Heather C. Ellison Cincinnati, OH

VICE PRESIDENT FOR UNIVERSITY ADVANCEMENT, UC

Jonathan Agree

VICE PRESIDENT, DEVELOPMENT, ACADEMIC MEDICINE

Linda E. Bledsoe

VICE PRESIDENT, HUMAN RESOURCES

Julie L. Engebrecht

VICE PRESIDENT, STRATEGIC COMMUNICATIONS

Thomas D. Freeman

VICE PRESIDENT AND CFO, ADMINISTRATION AND FINANCE

VICE PRESIDENT, ALUMNI AND DONOR EXPERIENCE

Stephen A. Rosfeld

VICE PRESIDENT, DEVELOPMENT

Carrie E. White

VICE PRESIDENT, TECHNOLOGY, INFORMATION AND PHILANTHROPIC STRATEGY

Caleb D. Whitted

ASSISTANT VICE PRESIDENT, PRINCIPAL GIVING

TRUSTEES

Shakila T. Ahmad Mason, OH

Peter A. Alpaugh Cincinnati, OH

Lori A. Beer New York, NY

John B. Berding Cincinnati, OH

Edwin L. Bowman lll Suwanee, GA

Jim Boyce Indianapolis, IN

Eric C. Broyles, Esq. Washington, DC

Robert R. Buck Naples, FL

Kenneth V. Byers Jr. Cincinnati, OH

Thomas B. Carleton Loveland, OH

Phil D. Collins Cincinnati, OH

Sean P. Connell Oak Brook, IL

Alvin H. Crawford, MD Cincinnati, OH

William J. Davis Cincinnati, OH

Kimberlee J. Dobbs Cincinnati, OH

Dianne G. Dunkelman Cincinnati, OH

Timothy A. Elsbrock Cincinnati, OH

Barbara Fant, PharmD Cincinnati, OH

Robert L. Fealy Chicago, IL

Leigh R. Fox Cincinnati, OH

Jerry L. Fritz Bella Vista, AR

Carrie K. Hayden Steamboat Springs, CO

Anil D. Hinduja Bethesda, MD

Stuart G. Hoffman, PhD Pittsburgh, PA

Kathryn A. Hollister Cincinnati, OH

Gyan Jha Louisville, KY

Gary D. Johns Fairfield, OH

Laurence F. Jones III Fairfield Township, OH

Joseph P. Judge Potomac, MD

Jerry C. Kathman Covington, KY

Ruthie S. Keefe Cincinnati, OH

Stephen E. Kimpel Columbus, OH

Robert J. King Jr. Cleveland, OH

Eva L. Maddox Chicago, IL

Rae A. Mang Medfield, MA

Darrell D. Miller, Esq. Los Angeles, CA

Shenan P. Murphy Cincinnati, OH

Russell C. Myers Cincinnati, OH

W. Troy Neat Cincinnati, OH

Jacqueline C. Neumann Cincinnati, OH

Cora K. Ogle, PhD Cincinnati, OH

James F. Orr Cincinnati, OH

Michael J. Paxton Naples, FL

Judy L. Pershern, Esq. Cincinnati, OH

Ellen Rieveschl Covington, KY

Ryan M. Rybolt Cincinnati, OH

Richard C. Seal Cincinnati, OH

Shimul A. Shah, MD Cincinnati, OH

Randall "Randy" E. Smith Cincinnati, OH

J. Clay Stinnett Bellevue, KY

John M. Tew Jr., MD Cincinnati, OH

Amanda L. Wait Arlington, VA

Sandra S. Wiesmann Bethesda, MD

Andi K. Wiot Cincinnati, OH

Andrea I. Zahumensky Louisville, KY

EX-OFFICIO TRUSTEES

Robert F. Ambach, MPA Cincinnati, OH

Jeffrey C. Bauer, DBA Cincinnati, OH

Heather C. Ellison Cincinnati, OH

Andrew T. Filak Jr., MD Cincinnati, OH

Thomas D. Freeman Cincinnati, OH

Richard J. Harknett, PhD West Chester, OH

Sandra W. Heimann Cincinnati, OH

Lawrence J. Johnson, PhD Lawrenceburg, IN

Peter E. Landgren Cincinnati, OH

Richard P. Lofgren, MD, MPH, FACP Cincinnati, OH

Kristi A. Nelson, PhD Cincinnati, OH

Neville G. Pinto, PhD Cincinnati, OH

Gregory W. Rouan, MD Cincinnati, OH

Daniel Keating Cincinnati, OH

Chase Morris Monroe, OH

Margarita I. Stringfellow Cincinnati, OH

TRUSTEES EMERITI

Eugene R. Allspach* Bellaire, TX

James E. Blakeney* Dayton, OH

Elroy E. Bourgraf* Naples, FL

Jack E. Brown* Cincinnati, OH

Otto M. Budig Jr.* Cincinnati, OH

Daniel P. Carmichael* Carmel, IN

Todd C. DeGarmo Washington, DC

Thomas E. Dewey* Montgomery, OH

David B. Dillon* Mission Hills, KS

John S. Domaschko* Covington, KY

Brian E. Hall Cleveland, OH

Donald C. Harrison, MD* Montgomery, OH

Lynnette M. Heard* Fulshear, TX

Robert A. Heimann* Cincinnati, OH

Thomas H. Humes Jr.* Cincinnati, OH

Timothy E. Johnson, PhD* Cincinnati, OH

Barbara W. Kellar* Cincinnati, OH

Patricia L. Klingbiel Elmhurst, IL

Marvin P. Kolodzik* Cincinnati, OH

David M. Lance* Blue Ash, OH

Louis H. Lauch Jr.* Naples, FL

Jerry P. Leamon* Cos Cob, CT

Doloris F. Learmonth, Esq.* Cincinnati, OH

William E. Lower* Cincinnati, OH

Eva L. Maddox* Chicago, IL

John M. Mang* Medfield, MA

Thomas E. Mischell* Cincinnati, OH

Joffre P. Moine* Mason, OH

William B. Monnig, MD* Ryland Heights, KY

Jerome P. Montopoli* Covington, KY

Marjorie Motch* Cincinnati, OH

Valerie L. Newell* Covington, KY

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

Yvonne C. Robertson* Cincinnati, OH

Alvin F. Roehr Jr.* Cincinnati, OH

James A. Schiff, PhD Cincinnati, OH

James E. Schwab* Mercer Island, WA

Tony L. Shipley* Cincinnati, OH

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

Michael D. Valentine* Cincinnati, OH

Jeffrey P. Williams* New Canaan, CT

Steven A. Wilson* Cincinnati, OH

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

Jeffrey L. Wyler* Milford, OH

Wilbert L. Ziegler* Crestview Hills, KY

Anthony Zingale* Los Gatos, CA

*Denotes Herschede Society as of June 30, 2021 UC Foundation Trustee list as of June 30, 2021

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.

The UC Foundation’s anti-racist statement was created by its staff after discussions around diversity, equity and inclusion’s value to the Foundation and its many stakeholders. The statement can be found foundation.uc.edu/about/AntiRacistStatement.