2019-05-10T14:19:45-05:00 2018-06-30 420714325 RSM US LLP 1 S Wacker Drive Ste 800 Chicago IL 60606 990 2017-07-01 356018940 Indiana University Foundation Inc INDI 8128558311 PO Box 500 Bloomington IN 47402 Daniel Smith President & CEO 8128558311 2019-05-10 1 Zack Fortsch P00052725 3126343400 129.79.76.51 2019-05-10 08:55:05 ED P 511F72E5D561E33EB2C8CDEC2712E6A956898161 511F72E5D561E33EB2C8CDEC2712E6A956898161 2017 2019-02-21 02:37:17Z Daniel Smith PO Box 500 Bloomington IN 47402 2393781897 0 X www.iufoundation.iu.edu X 1936 IN To maximize private philanthropic support for Indiana University 26 24 408 3800 -5161925 -5161925 193068041 291244689 29091545 30249877 74597146 136993895 7611496 2144601 304368228 460633062 160284902 219275351 0 0 24274656 25975759 0 0 18975222 39428456 42045907 223988014 287297017 80380214 173336045 2861379262 3058468864 498534554 477568849 2362844708 2580900015 X The Indiana University Foundation (IUF) maximizes private philanthropic support for Indiana University by fostering lifelong relationships with key stakeholders and providing advancement leadership and fundraising services for campuses and units across the university. 0 0 75844565 75844565 5611642 Faculty Support and Research - With nearly $75.8 million from IUF, University faculty and staff received additional support allowing for increased research opportunities and improved classroom experiences for all students. Private gift support helps meet the University's goal to attract and retain world-class faculty, which ultimately attracts the best and brightest students. During 2018, the number of endowed faculty positions (chairs, professorships and fellowships) increased to more than 645. 52025031 52025031 3849265 Student Scholarship and Financial Aid support - Indiana University undergraduate and graduate students received more than $52 million in scholarships, fellowships, loans and awards from private gift support. Students received scholarship support across all programs and units of the University. With the University seeing record enrollment numbers, private gift support is critical to ensuring that all willing students are able to explore their educational opportunities, experience college life, and efficiently manage tuition costs and debt loads. In 2018, approximately 11,150 scholarships supporting University students were funded by private gift support. (See Schedule O; page 56 for additional discussion)IUF emphasizes and incentivizes philanthropic support of scholarships. Matching funds provided for donor gifts of $50,000 or more, incentivize giving to endowed scholarships and fellowships. IU and IUF development officers engage prospects with regard to the financial needs of students and are educated about student financial needs. Approximately 4,459 endowed scholarships and fellowships have been newly established through IU's Bicentennial Campaign as of 12/31/2018. 50261242 50261242 3718765 Academic & Student Program Support - The IUF provided over $50.2 million to the University to support academic & student programs. These funds enable dedicated students to develop skills and knowledge for growth and success by offering high-quality, responsive academic and student programs by employing best practices in teaching and learning; adding to the accumulated body of knowledge and creative work; enriching the community through cultural leadership and providing resources for problem solving. 41144513 41144513 3044230 Endowment Capital Additions and FacilitiesThe IUF provided over $41 million to the University in support of new building construction, renovation and equipment needs. State-of-the-art facilities help the University attract high-caliber faculty and students. These facilities provide space, environments, and technologies that promote the highest levels of teaching, learning and research. 31170713 20665081 Investment Management The primary investment objective of the IUF's asset management program is to achieve an annualized total return (net of fees and expenses), through appreciation and income, equal to or greater than the rate of inflation (as measured by the broad, domestic Consumer Price Index) plus any spending and administrative expenses thus, at a minimum, maintaining the purchasing power of those assets managed by the IUF. The assets are to be managed in a manner that will meet the primary investment objective, and where possible, to seek growth above the objective, while at the same time attempting to limit volatility for year-to-year spending.The IUF has adopted endowment investment and spending policies that attempt to provide a purchasing power of endowment assets. Under this policy, endowment assets are invested in a manner that is intended to yield a long-term rate of return that exceeds the distribution rate, inflation, and administrative fees of the endowment, while assuming a prudent level of investment risk. Actual results may not be sufficient to achieve this over some shorter time frames.Working with top-tier investment managers allows IUF to appropriately diversify our investment portfolio to achieve target returns with less volatility than achieved with traditional investments. Reducing volatility is imperative to those who rely on annual endowment income, such as students receiving renewable scholarships or faculty receiving annual salary support. Investment performance has historically exceeded our targets net of fees to managers. Over the past decade, we have outperformed our target weighted benchmark by 0.3% per annum. 72315226 41144513 23709311 250446064 1 1 0 0 0 0 1 0 0 1 1 1 0 0 1 1 1 0 0 0 1 0 0 0 1 0 0 1 1 1 0 0 0 0 0 0 1 0 1 0 0 0 0 1 1 1 0 0 1 407 0 1 408 1 1 1 0 0 0 0 1 1 1 0 0 0 0 X 26 24 1 0 0 0 0 0 0 1 1 0 0 0 1 1 1 1 1 1 1 0 AK CA CO DC KY MA MD ME MI MN NH NJ NY OH OR SC UT WA WV WI NV IN X X Catherine L Melvin 8128558311 PO Box 500 Bloomington IN 47402 X Michael A McRobbie Board Chair, IUF Board Director 0.00 X X 0 0 0 Kathryn E Booth IUF Board Director 0.00 X 0 0 0 Clarence H Doninger IUF Board Director 0.00 X 0 0 0 David G Elmore IUF Board Director 0.00 X 0 0 0 Ann S Harrison IUF Board Director 0.00 X 0 0 0 Steven H Henke IUF Board Director 0.00 X 0 0 0 V William Hunt IUF Board Director 0.00 X 0 0 0 David H Jacobs Jr IUF Board Director 0.00 X 0 0 0 Dale Ellen Leff IUF Board Director 0.00 X 0 0 0 Randall C Morgan Jr IUF Board Director 0.00 X 0 0 0 Norman E Pfau Jr IUF Board Director 0.00 X 0 0 0 Lynn E Reichle IUF Board Director 0.00 X 0 0 0 Thomas D Rush IUF Board Director 0.00 X 0 0 0 Scott C Schurz IUF Board Director 0.00 X 0 0 0 Richard C Searles IUF Board Director 0.00 X 0 0 0 Patrick A Shoulders IUF Board Director 0.00 X 0 0 0 Cynthia Simon Skjodt IUF Board Director 0.00 X 0 0 0 Julie Inskeep IUF Board Director 0.00 X 0 0 0 Stephen A Stitle IUF Board Director 0.00 X 0 0 0 Gregg T Summerville IUF Board Director 0.00 X 0 0 0 W Michael Wells IUF Board Director 0.00 X 0 0 0 Bill C Brown IUF Board Director 0.00 X 0 0 0 Gayle K Cook IUF Board Director 0.00 X 0 0 0 Ellen C Gignilliat IUF Board Director 0.00 X 0 0 0 Alan B Gilman IUF Board Director 0.00 X 0 0 0 PA Mack Jr IUF Board Director 0.00 X 0 0 0 Robert H McKinney IUF Board Director 0.00 X 0 0 0 Joseph T Morrow IUF Board Director 0.00 X 0 0 0 John D Peterson Jr IUF Board Director 0.00 X 0 0 0 Harry L Gonso IUF Board Director 0.00 X 0 0 0 Sandra E Laney IUF Board Director 0.00 X 0 0 0 Gary J Anderson IUF Board Director 0.00 X 0 0 0 Lacy M Johnson IUF Board Director 0.00 X 0 0 0 Michael D Shumate IUF Board Director 0.00 X 0 0 0 Randall L Tobias IUF Board Director 0.00 X 0 0 0 William Quinn Buckner IUF Board Director 0.00 X 0 0 0 Jeff M Fettig IUF Board Director 0.00 X 0 0 0 Alan B Graf Jr IUF Board Director 0.00 X 0 0 0 Kathleen A Ligocki IUF Board Director 0.00 X 0 0 0 Rose C Mays IUF Board Director 0.00 X 0 0 0 Glenn Scolnik IUF Board Director 0.00 X 0 0 0 Randolph L Seger IUF Board Director 0.00 X 0 0 0 Robert L Zerbe IUF Board Director 0.00 X 0 0 0 Jane M Jorgensen IUF Board Director 0.00 X 0 0 0 J Robert Quigg III IUF Board Director 0.00 X 0 0 0 Richard L Johnson Jr IUF Board Director 0.00 X 0 0 0 Louis G Jordan IUF Board Director 0.00 X 0 0 0 MaryEllen Bishop IUF Board Director 0.00 X 0 0 0 Alisa L Hendrix IUF Board Director 0.00 X 0 0 0 Richard E Woosnam IUF Board Director 0.00 X 0 0 0 James R Hodge Treasurer 0.00 X X 0 0 0 Milton R Stewart Vice Chairman 0.00 X X 0 0 0 Daniel C Smith President & CEO 40.00 X X 697322 0 124761 Julie A Davis IUF Board Director 0.00 X 0 0 0 Curtis A Ferguson IUF Board Director 0.00 X 0 0 0 James D Fielding IUF Board Director 0.00 X 0 0 0 Kim I Pressman IUF Board Director 0.00 X 0 0 0 Michael J Mirro IUF Board Director 0.00 X 0 0 0 Aasif Bade IUF Board Director 0.00 X 0 0 0 Steven A Martin Assistant Corp Secretary 0.00 X 0 0 0 Richard Dupree Executive VP for Development 40.00 X 321707 0 73994 Jeffrey D Stumpf Exec VP for Finance & Operations 40.00 X 275197 0 68252 Gary Stratten Executive VP & CIO 40.00 X 372365 0 82009 Stacy Knapper Exec VP, Gen Counsel, Board Secy 40.00 X 176792 0 69556 Mary Bonk VP, Advancement Technology 40.00 X 214013 0 50263 Sarah Beggs Chief of Staff,VP Stratg. Initiatives 40.00 X 175895 0 68905 Laurie Burns McRobbie Senior Advisor, IUF 40.00 X 246124 0 57517 D Abe Weldy Senior Director, Investments 40.00 X 222766 0 68742 Joyce Rogers VP Dev, External Relations, DEMA 40.00 X 254141 0 70699 Jim Bergstrom Sr. Director, Investments 40.00 X 222496 0 72886 Jeff Lindauer VP, Adv. Serv, Mg Dir Cap Camp 40.00 X 213957 0 38490 Dorothy Metaj VP Indianapolis (Former Key Emp) 40.00 X 251807 0 58272 Paula Jenkins VP Bloomington (Former Key Emp) 40.00 X 231805 0 52400 Gina Reel Assoc. VP, Finance (Former Key Emp) 40.00 X 164292 0 42515 4040679 0 999261 38 1 1 0 Cambridge Associates 125 High Street Boston MA 02110 Investment Consultant 1050000 Champlain Investment Partners 180 Battery Street Burlington VT 05401 Investment Manager 672694 Snyder Capital Management LP 101 Mission Street San Francisco CA 94105 Investment Manager 622756 Holmes Hole Builders LLC 38 Kates Way Vineyard Haven MA 02568 Contractor 580606 Templeton Investment Counsel One Franklin Parkway San Mateo CA 94403 Investment Manager 514033 15 16758 291227931 24014016 291244689 Management Fees 900099 20665079 20665079 Development Sv Support 900099 6349130 6349130 Telefund Service Fee 900099 438053 438053 2797615 2645382 152233 30249877 27147594 27147594 220424 220424 6417948 2919827 3498121 3498121 3498121 2039472862 139794 1929428809 337546 110044053 -197752 109846301 -197752 110044053 559664 16758 462653 97011 97011 Life Ins inc & proc 900099 465454 465454 Income/Loss from K-1's 525990 -5161925 -5161925 3025516 3025516 -1670955 460633062 36888983 -5161925 137661315 219237711 219237711 37640 37640 3572124 1732773 1839351 361552 175382 186170 14818235 7188056 7630179 2096736 1017089 1079647 3802295 1844425 1957870 1324817 642645 682172 43704 21200 22504 329795 159978 169817 31170713 31170713 210754 102233 108521 148037 71810 76227 1889587 916605 972982 2277067 1104564 1172503 1651830 801273 850557 2782864 1349917 1432947 591082 286723 304359 224232 108771 115461 726242 352287 373955 287297017 250446064 17875731 18975222 196425603 155229436 176233314 228241841 82818639 54321691 124713490 29988297 76937718 94725193 1338171230 1419853049 990792758 1106097654 2861379262 3058468864 7256613 8412860 498680 414382 490779261 468741607 498534554 477568849 X 65679207 84897311 890670972 910010639 1406494529 1585992065 2362844708 2580900015 2861379262 3058468864 X 173336045 51610649 -6891387 X 0 1 X 1 0 X 151457232 134762439 192667048 193068041 291244689 963199449 151457232 134762439 192667048 193068041 291244689 963199449 32229325 930970124 15823500 14090479 20658405 27328539 33785966 111686889 5028159 7824850 4715703 4587470 3490970 25647152 1100533490 131115628 0.84590 0.79500 X X 1 0.00 1 1 0 1 0 10.00 0 1 1983221076 126401421 140187262 -105910357 2143899402 1764503798 125413610 194248892 -100945225 1983221076 1862189406 86651476 -98475896 -85861188 1764503798 1823484366 86270343 33040312 -80605615 1862189406 1582805651 95292491 233535693 -88149469 1823484366 0.01290 0.66700 0.32010 0 0 32478823 27456921 59935744 59383067 25643630 33739437 2578755 2316730 262025 2815924 2027937 787987 94725193 Institutional Funds, Cash and Equiv & Commercial Paper 28733187 F Private Equity 1077364467 F 1106097654 Accumulated Trust Liability 38753792 Collateral Under Securities Lending Agreement 90182422 Due to Indiana University 238529057 Assets Held for University Affiliates 42257029 Due to Brokers 59019307 468741607 X 489328231 51610649 3093308 54703957 434624274 26008788 26008788 460633062 271272924 15146620 15146620 256126304 31170713 31170713 287297017 Part II, Line 9: IUF reports its conservation easement on the income statement consistent with treatment for ordinary revenues and expenses on the financial statements. The building with the historical easement is being reported on the balance sheet at cost and is being depreciated over the life of the building. Part V, Line 4: The intended uses of the organization's endowment funds are to support Indiana University as it carries out its missions of teaching, research and public service. Part X, Line 2: Accounting Standards Codification (ASC) 740-10, Accounting for Uncertainty in Income Taxes, prescribes a comprehensive model for how an organization should measure, recognize, present, and disclose in its financial statements uncertain tax positions that an organization has taken or expects to take on a tax return. The IUF is subject to routine audits by taxing jurisdications; however, there are currently no audits for any tax periods in progress. The IUF believes it is no longer subject to income examinations for years prior to 2015. As of June 30, 2018 and 2017, the IUF has no uncertain tax positions. Part XI, Line 2d - Other Adjustments: Rental Expense 2,919,827. Fundraising Event Expenses 462,653. Change in Value of Split Interest Agreements -289,170. Rounding -2. Part XI, Line 4b - Other Adjustments: Management Fees 31,170,713. Income/Loss from K-1's -5,161,925. Part XII, Line 2d - Other Adjustments: Rental Expense 2,919,827. Fundraising Event Expenses 462,653. Pledge Write offs 11,764,142. Rounding -2. Part XII, Line 4b - Other Adjustments: Management Fees 31,170,713. 1 Central America and the Caribbean Investment 340559808 East Asia and the Pacific 0 0 Fundraising 36842 East Asia and the Pacific 0 0 University Partnership/Alumni Relations 12896 Europe Investment 17026681 Europe 0 0 University Partnership/Alumni Relations 38693 North America 0 0 University Partnership/Alumni Relations 2096 North America Investment 6381933 South Asia 0 0 Fundraising/Representation 31965 0 0 0 0 0 0 364090914 0 364090914 1 0 1 1 1 0 Part I, Line 2: The grant and assistance payments are verified with internal documents to ensure donor intent and criteria have been met before the payments are made. Schedule F, Part I, Line 3: The foreign activities that the IUF has been able to reasonably identify for either direct or indirect (thru reimbursement) support have been listed in Schedule F. The IUF exists to support the activities of Indiana University. There are activities supported by Indiana University, both domestic and foreign, that are reimbursed from IUF accounts. The IUF does not have a reasonable means to determine precisely if expenses reimbursed to Indiana University are foreign or domestic in nature. Appropriate due diligence has been taken to identify those which may be reportable. Little 500 Races 566642 16758 549884 0 117532 144881 189294 Fall Cycling 9780 0 9780 0 1480 3695 5771 0 576422 16758 559664 119012 148576 195065 462653 97011 1 Indiana University 401 E 7th Street Bloomington IN 47405 356001673 Gov't Entity 50261242 Academic and Student Program Support Indiana University 401 E 7th Street Bloomington IN 47405 356001673 Gov't Entity 51987391 Student Scholarship and Financial Aid Indiana University 401 E 7th Street Bloomington IN 47405 356001673 Gov't Entity 75844565 Faculty Support & Research Indiana University 401 E 7th Street Bloomington IN 47405 356001673 Gov't Entity 41144513 Endowment and Capital Additions 1 0 Scholarships, general 13 37640 Part I, Line 2: The grant and assistance payments are verified with internal documents to ensure donor intent and criteria have been met before the payments are made. X X X 1 1 X X X 0 1 0 1 0 0 0 1 0 Daniel C Smith President & CEO 401586 0 0 0 295736 0 94140 0 30621 0 822083 0 235452 0 Richard Dupree Executive VP for Development 304499 0 0 0 17208 0 34140 0 39854 0 395701 0 0 0 Jeffrey D Stumpf Exec VP for Finance & Operations 259641 0 0 0 15556 0 34140 0 34112 0 343449 0 0 0 Gary Stratten Executive VP & CIO 241977 0 110427 0 19961 0 34140 0 47869 0 454374 0 0 0 Stacy Knapper Exec VP, Gen Counsel, Board Secy 161662 0 0 0 15130 0 21639 0 47917 0 246348 0 0 0 Mary Bonk VP, Advancement Technology 211273 0 0 0 2740 0 26126 0 24137 0 264276 0 0 0 Sarah Beggs Chief of Staff,VP Stratg. Initiative 173966 0 0 0 1929 0 21445 0 47460 0 244800 0 0 0 Laurie Burns McRobbie Senior Advisor, IUF 163169 0 0 0 82955 0 45559 0 11958 0 303641 0 75635 0 D Abe Weldy Senior Director, Investments 166863 0 53974 0 1929 0 27968 0 40774 0 291508 0 0 0 Joyce Rogers VP Dev, External Relations, DEMA 251597 0 0 0 2544 0 32512 0 38187 0 324840 0 0 0 Jim Bergstrom Sr. Director, Investments 166665 0 53902 0 1929 0 27958 0 44928 0 295382 0 0 0 Jeff Lindauer VP, Adv. Serv, Mg Dir Cap Camp 208641 0 3000 0 2316 0 25884 0 12606 0 252447 0 0 0 Dorothy Metaj VP Indianapolis (Former Key Emp) 237027 0 0 0 14780 0 32020 0 26252 0 310079 0 0 0 Paula Jenkins VP Bloomington (Former Key Emp) 218263 0 0 0 13542 0 28690 0 23710 0 284205 0 0 0 Gina Reel Assoc. VP, Finance (Former Key Emp) 155013 0 7500 0 1779 0 18743 0 23772 0 206807 0 0 0 Part I, Line 1a First Class or charter travel: The IUF maintains a policy governing all business expenses including travel. Should a business need (e.g. length of flight time, security concerns, lack of commercial air options, etc.) require the use of first-class or charter travel, the IUF Board of Directors has authorized the IUF CEO to approve its use. These costs were not treated as taxable income because the travel is business related. In compliance with the IRS intermediate sanctions rules and regulations, in order to be approved under IUF policy, first-class and charter travel must be deemed to be in the best interests of the IUF in order to merit approval. Travel for Companions: The IUF maintains a policy governing all business expenses which prohibits companion related expenses, except for the specifically defined role of Associate to the IUF President. The duties of this position, which are outlined in a formal policy and support the organization's mission, are fulfilled by the IUF President & CEO's spouse. The Associate to the IUF President incurs business related expenses on behalf of IUF, and those amounts are not treated as taxable. In all cases, travel for companions is considered in the IUF's efforts to ensure compliance with the intermediate sanctions law. Tax indemnification and gross-up payments: Tax indemnification and gross-up payments are only paid to staff in limited circumstances, and must be approved in accordance with IUF policies governing these types of payments. In the case of disqualified persons, indemnification payments are considered in the IUF's efforts to ensure compliance with the intermediate sanctions law. At least annually, the expenses incurred by all employees are reviewed to ensure appropriate taxation and reporting. Gross-up payments are established taking into account an estimated tax rate. However, employees receiving the payment are not grossed up for actual taxes incurred. The following gross-up payments were provided in 2017 in connection with the following items, and in all cases were treated as taxable income to the recipient: With the approval by the Executive Vice President for Finance & Operations and Assistant Corporate Secretary: *a wireless communication allowance for cell phone and data services is made available to those staff who demonstrate a business purpose for these types of payments, such as staff who need to have access via cell and data communication and information after hours. During 2017 one-hundred-twentyfive (125) employees received a wireless communication allowance. With the approval of the IUF Board of Directors: *allowances are made available to the IUF President & CEO for long-term disability and supplemental retirement payments to provide future retirement restoration. *allowances for vehicles are made available to certain Vice Presidents, Executive Vice Presidents and the IUF President & CEO. Part I, Line 4b Eligible executives participate in various non-qualified deferred compensation plans organized under code section 457(f). The exact purpose of each plan varies, but they include: compensation limitation make-up plans, deferral of a portion of incentive bonus type plans and other attributes of a deferred compensation plan. Any amount ultimately paid under the program to the executive is reported as compensation on Form 990, Schedule J, Part II, Column B in the year paid. Payments made in 2017: Daniel Smith $235,452 Laurie McRobbie $75,635 Daniel Smith was credited with $60,000 and Laurie Burns McRobbie was credited with $15,000 in contributions to their respective deferred compensation accounts. Part I, Line 5 The IUF Incentive Compensation Plan is available to key personnel in the Investment Department. The primary goal of the plan is retention of key investment staff who are responsible for helping the IUF to achieve top quartile investment performance relative to its peers while reducing the volatility of performance over time. This plan is based on the premise of true value of dollars added by staff over an appropriate benchmark, IUF's Target Weighted Benchmark, and over a three-year period. The calculation of amount of bonus awarded is based on a formula similar to the industry standard and provides for a cap as a percentage of salary. This plan was developed and recommended by the Investment Committee of the IUF Board of Directors and approved by the Compensation Committee. Part I, Line 7 Management provides non-fixed payments in the form of bonuses available to all IUF staff from a discretionary fund. All bonuses are based on performance and merit. Laurie Burns McRobbie See Part V 303641 Employment of family member 0 Arabella McRobbie See Part V 58271 Employment of family member 0 V William Hunt See Part V 1200000 Sale of asset 0 Lacy M Johnson See Part V 208676 Sale of asset 0 Schedule L, Part IV, Business Transactions Involving Interested Persons: (a) Name of Interested Person: Laurie Burns McRobbie(b) Relationship Between Interested Person and the Organization: Spouse of Michael McRobbie, IUF Chairman of Board(c) Amount of Transaction: $303,641(d) Description of Transaction: Employment(e) Sharing of Organization's Revenues? No(a) Name of Interested Person: Arabella McRobbie(b) Relationship Between Interested Person and the Organization: Daughter of Michael McRobbie, IUF Chairman of Board, and is employed as an IUF staff member(c) Amount of Transaction: $58,271(d) Description of Transaction: Employment(e) Sharing of Organization's Revenues? No(a) Name of Interested Person: V. William Hunt(b) Relationship Between Interested Person and the Organization: IUF Board Director(c) Amount of Transaction: $1,200,000(d) Description of Transaction: A bargain purchase of real property was made by the IUF of a property owned by V. William Hunt. A bargain sale is the purchase of property for less than its fair market value, the remainder of the value considered a donation. The IUF follows procedures and exercises due diligence before accepting gifts of real property. The procedures and due diligence followed are applied consistently to all real estate transactions. The valuation basis of the real property acquired by IUF was fair market value evidenced by an appraisal completed by a certified appraiser within 60 days of the sale.(e) Sharing of Organization's Revenues? No(a) Name of Interested Person: Lacy M. Johnson(b) Relationship Between Interested Person and the Organization: IUF Board Director(c) Amount of Transaction: $208,676(d) Description of Transaction: A bargain purchase of real property was made by the IUF of two properties owned by Lacy M. Johnson. A bargain sale is the purchase of property for less than its fair market value, the remainder of the value considered a donation. The IUF follows procedures and exercises due diligence before accepting gifts of real property. The procedures and due diligence followed are applied consistently to all real estate transactions. The valuation basis of the real property acquired by IUF was fair market value evidenced by an appraisal completed by a certified appraiser within 60 days of the sale. (e) Sharing of Organization's Revenues? No X 1010 Listed Values X 1800 Listed Values X 1 200 Blue Book Value X 697 17438007 Listed Values X 10 6521324 Professional Appraisals X 2 3213 Listed values X 2 1585 Professional Appraisals X Travel Exp. 35 45083 Actual costs X Sports Tkts. 6 1794 Listed values 50 0 1 1 Part I, Column (b): The number of contributions listed in column (b) of Part I are either the number of contributions or the number of items received, depending on the nature of the contribution. Part I, Line 32b: IUF hires realtors and auctioneers to assist with selling donated items. IUF hires brokers to assist in selling gifts of stock and securities. Form 990, Part VI, Section A, line 2 Lacy M. Johnson, IUF Board Director and Harry L. Gonso, IUF Board Director are partners at Ice Miller, LLP. Form 990, Part VI, Section B, line 11b The Form 990 is completed by IUF staff. A management team comprised of the Executive Vice President for Finance and Operations & Assistant Corporate Secretary; Executive Vice President, General Counsel and Corporate Secretary; Executive Vice President and Chief Investment Officer; Associate Vice President, Internal Audit and Risk Management; Vice President for Advancement Services & Managing Director of Capital Campaigns; Executive Vice President for Development; Controller; Associate Vice President, Finance; Associate Vice President, Talent Management and Human Resources; and Chief of Staff and VP, Strategic Initiatives review the Form 990, including all schedules line-by-line to determine accuracy and validity. The IUF engages an independent accounting firm to review the Form 990. The President & CEO then reviews and signs the Form 990 and the independent accounting firm signs as preparer. The IUF Audit Committee reviews the completed Form 990, including all schedules, without redactions. Once signed, an electronic version of the public disclosure copy of Form 990 is made available to the IUF Board of Directors via the internet. The public disclosure copy is provided in order to more thoroughly protect the privacy of donors. The Form 990 is then filed electronically with the IRS. Form 990, Part VI, Section B, line 12c Each July, the IUF provides a copy of its Conflicts of Interest Policy to all directors and officers. Directors and officers are required to read and comply with the policy which requires, at a minimum, annually disclosing the existence or non-existence of any conflicts of interest, real or perceived, in writing to the IUF Board Secretary. The disclosures are reviewed by IUF staff including the Executive Vice President for Finance and Operations & Assistant Corporate Secretary; Executive Vice President, General Counsel and Corporate Secretary; Executive Vice President and Chief Investment Officer; Board Secretary; Associate Vice President, Internal Audit and Risk Management; Chief of Staff and VP, Strategic Initiatives; Associate Vice President, Finance; and the Assistant Vice President, Real Estate to determine validity and completeness based on staff knowledge of IUF activities and transactions. The results of this review, along with every disclosure in its entirety, are provided to the IUF Audit Committee Chair and Vice Chair. A report is then made by the Audit Committee Chair to the full Audit Committee. When applicable, the Audit Committee Chair will also report any disclosure requiring action to the IUF Executive Committee and Committee on Directors and Governance. When applicable, the Audit Committee Chair will also report any disclosure requiring action to the IUF Board and all relevant Board committees. In addition to the Conflicts of Interest Policy, each July the IUF provides a background survey and a request for information for Form 990 disclosures to all officers, directors and key employees. As with the Conflicts of Interest, disclosures related to the survey and Form 990 are reviewed by staff and provided verbatim to the IUF Audit Committee Chair and Vice Chair. A report is then made by the Audit Committee Chair to the full Audit Committee. When applicable, the Audit Committee Chair will also report any disclosure requiring action to the IUF Executive Committee and Committee on Directors and Governance. When applicable, the Audit Committee Chair will also report any disclosure requiring action to the IUF Board and all relevant Board committees. Form 990, Part VI, Section B, line 15 Each June, the IUF Compensation Committee approves the compensation arrangements for disqualified persons in accordance with IRS regulation section 53.4958-6 "Rebuttable presumption that a transaction is not an excess benefit transaction". Individuals defined as disqualified persons who receive compensation from the IUF include: the President & CEO; Executive Vice President for Finance and Operations & Assistant Corporate Secretary; Executive Vice President for Development; Executive Vice President and Chief Investment Officer; Vice President Bloomington; Executive Vice President, General Counsel and Corporate Secretary; Associate Vice President, Finance; Board Secretary; Vice President Indianapolis; Senior Advisor, IUF; and the Assistant Director of Development, Parent Engagement. The compensation arrangement for each individual is approved in advance for the upcoming fiscal year period July 1 thru June 30 by the Compensation Committee which is an authorized body of the IUF Board of Directors. The Compensation Committee is composed entirely of independent directors who do not have a conflict of interest (within the meaning of paragraph (c)(1)(iii) of section 53.4958-6) with respect to the compensation arrangement for each disqualified person. The Compensation Committee determines if each compensation arrangement in its entirety is reasonable through the use of relevant information including, but not limited to, compensation levels paid by similarly situated organizations, both taxable and tax-exempt, for functionally comparable positions; the availability of similar services in the geographic area of the applicable tax-exempt organization; current compensation surveys compiled by independent firms; and actual written offers from similar institutions competing for the services of the disqualified person. Upon approval of the compensation arrangement for each disqualified person, the Compensation Committee provides written documentation noting the terms of the transaction that was approved and the date it was approved; the members of the Committee who were present during review of the arrangement that was approved and those who voted on it; the comparability data obtained and relied upon by the Committee and how the data was obtained; and, if applicable, any actions taken with respect to consideration of the arrangement by anyone who is otherwise a member of the Committee but who had a conflict of interest with respect to the arrangement. The Compensation Committee's most recent review and approval of compensation arrangements for all disqualified persons was June 7, 2018. Form 990, Part VI, Section C, line 18 We recognize that good governance practices provide safeguards to help ensure that our funds are consistently used in accordance with our mission, tax-exempt purpose, and donor intent. Copies of the IUF's Forms 990 and Form 990T can be requested through the IUF office. The current year 990 tax return is available through the IUF's website @ www.iufoundation.iu.edu. Form 990 and 990T are available upon request for the past three years in accordance with IRC Section 6104(d) through the IUF's office. Form 990, Part VI, Section C, line 19 We recognize that good governance practices provide safeguards to help ensure that our funds are consistently used in accordance with our mission, tax-exempt purpose, and donor intent. Copies of all the IUF's governing documents and conflict of interest policy can be requested through the IUF office. The audited financial statements (past four years), conflict of interest policy and other specific governance documents are available through the IUF's website @ www.iufoundation.iu.edu. Form 990; Part VII In prior year Form 990 filings , utilizing a conservative approach , the IUF classified primarily all senior level managers as key employees. After a thorough review of the Form 990 instructions and research into the key employee reporting practices of peer institutions , the IUF has reclassified a number of senior level managers from the key employee category. This change in reporting key employees will reduce the number of key employees reported on the Form 990 from 16 key employees in the prior year to 2 key employees for the current year. Form 990; Part VII; Column B IUF Board Directors generally attend three in person meetings per year with additional participation in supplemental calls throughout the year, as needed. Currently, no methodology has been used to capture and reflect an accurate representation of time spent per week for each director; therefore, time spent has been represented as 0.00. Form 990, Part XI, line 9: Change in Value of Split Interest Agreement -289,170. Income/Loss from K-1's 5,161,925. Change in Pledge Allowance -11,764,142. Rounding CVI GVF Holdings 8 Ltd PO Box 309 Grand Cayman CJ KY1-1104 Investment CJ IUF C 111925 4261624 0.99000 1 Charitable Remainder Trusts (91) Trust IN 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 CVI GVF Holdings 8 Ltd S 238313 FMV