2018-05-11T07:35:47-05:00 2017-06-30 420714325 RSM US LLP 1 S Wacker Drive Ste 800 Chicago IL 60606 990 2016-07-01 356018940 Indiana University Foundation Inc INDI 8128558311 PO Box 500 Bloomington IN 47402 Daniel Smith President & CEO 8128558311 2018-05-11 1 Zack Fortsch P00052725 3126343400 2016 2022-09-23 18:48:47Z Daniel Smith PO Box 500 Bloomington IN 47402 2413365163 0 X www.iufoundation.iu.edu X 1936 IN To maximize private philanthropic support for Indiana University 24 22 402 3800 588247 0 192667048 193068041 26197314 29091545 75518682 74597146 8205835 7611496 302588879 304368228 135185047 160284902 0 0 23179233 24274656 0 0 21002502 49561516 39428456 207925796 223988014 94663083 80380214 2601155584 2861379262 475908049 498534554 2125247535 2362844708 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 46538773 46538773 4420253 Student Scholarship and Financial Aid support - Indiana University undergraduate and graduate students received more than $46.5 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 2017, approximately 11,000 scholarships supporting University students were funded by private gift support. (See Schedule O; page 61 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 3,750 endowed scholarships and fellowships have been newly established through IU's Bicentennial Campaign match as of 12/31/2017. 44336317 44336317 4211064 Faculty Support and Research - With nearly $42.6 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 2017, the number of endowed faculty positions (chairs, professorships and fellowships) increased to more than 600. 29478831 29478831 2799899 Academic & Student Program Support - The IUF provided nearly $29.5 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. 39930981 39930981 3792645 Endowment Capital Additions and FacilitiesThe IUF provided nearly $40 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. 25952406 19866292 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 0.2% per annum. 65883387 39930981 23658937 186237308 1 1 0 0 0 0 1 0 0 1 1 1 0 0 1 1 1 0 0 0 1 1 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 1 536 0 1 402 1 1 1 0 0 0 0 1 1 1 3 0 0 0 X 24 22 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 McRobbie Board Chair, IUF Board Dir 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 Buckner IUF Board Director 0.00 X 0 0 0 Jeffrey Fettig IUF Board Director 0.00 X 0 0 0 Alan Graf Jr IUF Board Director 0.00 X 0 0 0 Kathleen Ligocki IUF Board Director 0.00 X 0 0 0 Rose Mays IUF Board Director 0.00 X 0 0 0 Glen Scolnik IUF Board Director 0.00 X 0 0 0 Randolph Seger IUF Board Director 0.00 X 0 0 0 Robert 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 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 448092 0 98227 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 Steven A Martin Assistant Corp Secretary 0.00 X 0 0 0 Richard Dupree Executive VP for Development 40.00 X 317581 0 73647 Jeffrey D Stumpf Exec VP for Finance & Operations 40.00 X 268196 0 65908 Gary Stratten Executive VP & CIO 40.00 X 427023 0 76097 Stacy Knapper Exec VP, Gen Counsel, Corp Secretary 40.00 X 116697 0 34513 Laurie Burns McRobbie Senior Advisor, IUF 40.00 X 166645 0 44350 Sheila Decker Associate VP, Administration 40.00 X 184585 0 61091 Gina M Reel Associate VP, Finance 40.00 X 154127 0 38181 Anne Wymore Associate VP, Mktg Adv 40.00 X 195504 0 56302 Bryan Melvin Associate VP, Prin and Intnl Gifts 40.00 X 179669 0 42053 Jeff Lambright Associate VP, Int Audit & Risk Mgmt 40.00 X 151687 0 55607 Sarah Beggs Chief of Staff 40.00 X 176044 0 59849 Catherine Melvin Controller 40.00 X 156916 0 48586 D Abe Weldy Director, Alternative Investments 40.00 X 260856 0 67572 James Bergstrom Director, Investments 40.00 X 263693 0 73535 Dorothy Metaj VP Indianapolis 40.00 X 245415 0 53643 Paula Jenkins VP Bloomington 40.00 X 228523 0 54308 Jeff Lindauer VP, Adv. Services, Mgr Cap Campaign 40.00 X 213356 0 37152 Mary Bonk VP, Advancement Technology 40.00 X 210891 0 47519 Joyce Rogers External Relations for DEMA 40.00 X 250777 0 65880 Johnathan Purvis VP, Developemnt, Reg Campuses 40.00 X 161206 0 57317 Eric DeHaan Associate VP, International Dev 40.00 X 157355 0 56698 John Wilhite Assistant VP, Real Estate 40.00 X 142953 0 47272 Brandon O'Leary Exec Dir, Mgmt Advisory Services 40.00 X 137344 0 44768 Brian Yeley AVP, Gift Planning Service 40.00 X 143559 0 54194 Kim Van Lue AVP, Talent Mgmt and HR 40.00 X 128288 0 40493 5486982 0 1454762 34 0 1 0 Cambridge Associates 125 High Street Boston MA 02110 Investment Consultant 1575000 Champlain Investment Partners 180 Battery Street Burlington VT 05401 Investment Manager 600518 Snyder Capital Management LP 101 Mission Street San Francisco CA 94105 Investment Manager 553505 Templeton Investment Counsel One Franklin Parkway San Mateo CA 94403 Investment Manager 393090 William Blair & Company LLC 150 North Riverside Plaza Chicago IL 60606 Investment Manager 375313 14 36000 193032041 57438922 193068041 Management Fees 900099 19866292 19866292 Development Sv Support 900099 6082427 6082427 Telefund Service Fee 900099 101496 101496 3041330 2925097 116233 29091545 20922375 20922375 794601 794601 5611563 2680126 2931437 2931437 2931437 2157395000 2141810 2103669059 2192980 53725941 -51170 53674771 -51170 53725941 517407 36000 454770 62637 62637 Life Ins inc & proc 900099 1057758 1057758 Income/Loss from K-1's 525990 588247 588247 2176816 2176816 3822821 304368228 35090153 588247 75621787 158510740 158510740 7600 7600 1766562 1766562 5988821 2656957 3331864 54570 24210 30360 13489461 5984637 7504824 1441928 639715 802213 2237933 992865 1245068 1061943 471134 590809 97081 43070 54011 327761 145412 182349 25952406 25952406 1231008 546140 684868 80320 35634 44686 2114740 938210 1176530 2467301 1094625 1372676 1789102 793740 995362 2384355 1057826 1326529 525695 233226 292469 372145 165103 207042 737911 327376 410535 1348631 598324 750307 223988014 186237308 16748204 21002502 164296662 196425603 196357812 176233314 96606303 82818639 629878 0 104329839 27392121 68721781 76937718 1146648696 1338171230 927894452 990792758 2601155584 2861379262 5908852 7256613 549632 498680 469449565 490779261 475908049 498534554 X 50761539 65679207 831736474 890670972 1242749522 1406494529 2125247535 2362844708 2601155584 2861379262 X 80380214 160506776 -3289817 X 0 1 X 1 0 X 128889858 151457232 134762439 192667048 193068041 800844618 128889858 151457232 134762439 192667048 193068041 800844618 68929816 731914802 15543579 15823500 14090479 20658405 27328539 93444502 4239217 5028159 7824850 4715703 4587470 26395399 920684519 125458862 0.79500 0.84970 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 1 0.00 1 1 0 1 0 10.00 0 1 1764503798 125413610 194248892 -100945225 1983221076 1862189406 86651476 -98475896 -85861188 1764503798 1823484366 86270343 33040312 -80605615 1862189406 1582805651 95292491 233535693 -88149469 1823484366 1417184598 92831098 142945921 -70155966 1582805651 0.01400 0.65100 0.33500 0 0 19005379 24380909 43386288 55141642 22907799 32233843 2923593 2465254 458339 2878316 2019068 859248 76937718 Institutional Funds, Cash and Equiv & Commercial Paper 44621644 F Private Equity 946171114 F 990792758 Accumulated Trust Liability 34766305 Collateral Under Securities Lending Agreement 98059082 Due to Indiana University 230265823 Assets Held for University Affiliates 39937217 Due to Brokers 87750834 490779261 X 445599881 160506776 7265530 167772306 277827575 26540653 26540653 304368228 208002708 9967100 9967100 198035608 25952406 25952406 223988014 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 2014. As of June 30, 2017 and 2016, the IUF has no uncertain tax positions. Part XI, Line 2d - Other Adjustments: Rental Expense 2,680,126. Fundraising Event Expenses 454,770. Change in Value of Split Interest Agreements 4,130,635. Rounding -1. Part XI, Line 4b - Other Adjustments: Management Fees 25,952,406. Income/Loss from K-1's 588,247. Part XII, Line 2d - Other Adjustments: Rental Expense 2,680,126. Fundraising Event Expenses 454,770. Pledge Write offs 6,832,205. Rounding -1. Part XII, Line 4b - Other Adjustments: Management Fees 25,952,406. 1 Central America and the Caribbean Investment 320698927 East Asia and the Pacific 0 0 Fundraising 50304 East Asia and the Pacific - Australia, Brunei, Burma, Cambodia, 0 0 University Partnership/Alumni Relations 26890 Europe (Including Iceland & Greenland) Investment 13915846 Europe (Including Iceland & Greenland) - Albania, Andorra, Austria, Belgium 0 0 University Partnership/Alumni Relations 14664 North America 0 0 University Partnership/Alumni Relations 5719 North America - Canada and Mexico, but not the United States Investment 2704838 South Asia 0 0 Fundraising/Representation 23111 Russia and Neighboring States 0 0 Grantmaking 617000 Europe (Including Iceland & Greenland) 0 0 Grantmaking 1149562 0 0 0 0 0 0 337440299 1766562 339206861 Russia and Neighboring States - Armenia, Azerbijan, Belarus, Operating Expenses 617000 Bank Draft Europe (Including Iceland & Greenland) Operating Expenses 1149562 Bank Draft 2 0 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 546527 36000 510527 0 35250 133889 276070 Fall Cycling 6880 0 6880 0 0 2286 7275 0 553407 36000 517407 35250 136175 283345 454770 62637 1 Indiana University 401 E 7th Street Bloomington IN 47405 356001673 Gov't Entity 29470487 Academic and Student Program Support Indiana University 401 E 7th Street Bloomington IN 47405 356001673 Gov't Entity 46531171 Student Scholarship and Financial Aid Indiana University 401 E 7th Street Bloomington IN 47405 356001673 Gov't Entity 42569755 Faculty Support & Research Indiana University 401 E 7th Street Bloomington IN 47405 356001673 Gov't Entity 39930983 Endowment and Capital Additions University of Pittsburgh 128 North Craig Street Pittsburgh PA 15260 250965591 Gov't Entity 8344 Academic and Student Program Support 2 Scholarships, general 2 7600 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 390226 0 0 0 57866 0 73825 0 24402 0 546319 0 0 0 Richard Dupree Executive VP for Development 300373 0 0 0 17208 0 33825 0 39822 0 391228 0 0 0 Jeffrey D Stumpf Exec VP for Finance & Operations 252640 0 0 0 15556 0 33825 0 32083 0 334104 0 0 0 Gary Stratten Executive VP & CIO 242053 0 165009 0 19961 0 33825 0 42272 0 503120 0 0 0 Stacy Knapper Exec VP, Gen Counsel, Corp Secretary 94046 0 15000 0 7651 0 11789 0 22724 0 151210 0 0 0 Laurie Burns McRobbie Senior Advisor, IUF 160367 0 0 0 6278 0 34072 0 10278 0 210995 0 0 0 Sheila Decker Associate VP, Administration 175365 0 0 0 9220 0 22501 0 38590 0 245676 0 0 0 Gina M Reel Associate VP, Finance 152348 0 0 0 1779 0 17646 0 20535 0 192308 0 0 0 Anne Wymore Associate VP, Mktg Adv 193875 0 0 0 1629 0 23635 0 32667 0 251806 0 0 0 Bryan Melvin Associate VP, Prin and Intnl Gifts 178040 0 0 0 1629 0 21079 0 20974 0 221722 0 0 0 Jeff Lambright Associate VP, Int Audit & Risk Mgmt 147786 0 0 0 3901 0 17566 0 38041 0 207294 0 0 0 Sarah Beggs Chief of Staff 174415 0 0 0 1629 0 21383 0 38466 0 235893 0 0 0 Catherine Melvin Controller 154671 0 0 0 2245 0 18371 0 30215 0 205502 0 0 0 D Abe Weldy Director, Alternative Investments 161233 0 97694 0 1929 0 33843 0 33729 0 328428 0 0 0 James Bergstrom Director, Investments 164070 0 97694 0 1929 0 33825 0 39710 0 337228 0 0 0 Dorothy Metaj VP Indianapolis 232386 0 0 0 13029 0 31571 0 22072 0 299058 0 0 0 Paula Jenkins VP Bloomington 214981 0 0 0 13542 0 28558 0 25750 0 282831 0 0 0 Jeff Lindauer VP, Adv. Services, Mgr Cap Campaign 206040 0 5000 0 2316 0 26078 0 11074 0 250508 0 0 0 Mary Bonk VP, Advancement Technology 208151 0 0 0 2740 0 26010 0 21509 0 258410 0 0 0 Joyce Rogers External Relations for DEMA 248383 0 0 0 2394 0 32263 0 33617 0 316657 0 0 0 Johnathan Purvis VP, Developemnt, Reg Campuses 147650 0 0 0 13556 0 19136 0 38181 0 218523 0 0 0 Eric DeHaan Associate VP, International Dev 151751 0 0 0 5604 0 18562 0 38136 0 214053 0 0 0 John Wilhite Assistant VP, Real Estate 140875 0 0 0 2078 0 15902 0 31370 0 190225 0 0 0 Brandon O'Leary Exec Dir, Mgmt Advisory Services 135415 0 0 0 1929 0 14896 0 29872 0 182112 0 0 0 Brian Yeley AVP, Gift Planning Service 141930 0 0 0 1629 0 16287 0 37907 0 197753 0 0 0 Kim Van Lue AVP, Talent Mgmt and HR 126527 0 0 0 1761 0 14743 0 25750 0 168781 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 2016 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 2016 one-hundred-nineteen(119) 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 three Vice Presidents, four 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 2016: N/A Daniel Smith was credited with $40,000 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 210995 Employment 0 Molly Jorgensen See Part V 14459 Employment of family member 0 Arabella McRobbie See Part V 54570 Employment of family member 0 Bryan Melvin See Part V 221722 Employment 0 Catherine Melvin See Part V 205502 Employment 0 Rita Waltz See Part V 88145 Employment of family member 0 LifeOmics Inc See Part V 215000 See Part V 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: $210,995(d) Description of Transaction: Employment(e) Sharing of Organization's Revenues? No(a) Name of Interested Person: Molly Jorgensen(b) Relationship Between Interested Person and the Organization: Daughter of Jane M. Jorgensen, IUF Board Director, and is employed as an IUF staff member(c) Amount of Transaction: $14,459(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 Laurie Burns McRobbie, IUF Key Employee, and is employed as an IUF staff member(c) Amount of Transaction: $54,570(d) Description of Transaction: Employment(e) Sharing of Organization's Revenues? No(a) Name of Interested Person: Bryan Melvin(b) Relationship Between Interested Person and the Organization: Spouse of Catherine Melvin, IUF Key Employee(c) Amount of Transaction: $221,722(d) Description of Transaction: Employment(e) Sharing of Organization's Revenues? No(a) Name of Interested Person: Catherine Melvin(b) Relationship Between Interested Person and the Organization: Spouse of Bryan Melvin, IUF Key Employee(c) Amount of Transaction: $205,502(d) Description of Transaction: Employment(e) Sharing of Organization's Revenues? No(a) Name of Interested Person: Rita Waltz(b) Relationship Between Interested Person and the Organization: Sister of Sheila Decker, IUF Key Employee, and is employed as an IUF staff member(c) Amount of Transaction: $88,145(d) Description of Transaction: Employment(e) Sharing of Organization's Revenues? No(a) Name of Interested Person: LifeOmic, Inc.(b) Relationship Between Interested Person and the Organization: LifeOmic, Inc. is a 35% controlled entity of a substantial contributor of IUF. (c) Amount of Transaction: $215,000(d) Description of Transaction: This transaction between IUF and LifeOmic, Inc. is a one-time leasehold improvement reimbursement, set forth in a lease agreement assigned to IUF upon its purchase of the leased property. No exchange or quid pro quo benefit occurred as a result of this transaction. Additionally, no further transactions under this lease agreement will occur between IUF and LifeOmic, Inc.(e) Sharing of Organization's Revenues? No X 1 201450 Professional Appraisals X 699 54862379 Listed Values X 11 2350000 Professional Appraisals X 2 360 Listed values X 1 95 Listed values X Travel Exp. 28 21458 Actual costs X Golf Tournament Supplies 3 1837 Actual costs X Sports Tkts. 4 1018 Listed values X Gift Cards 3 325 Actual costs 32 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. 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. Michael McRobbie, Board Chair and Laurie Burns McRobbie, IUF Key Employee are husband and wife. Catherine Melvin, IUF Key Employee and Bryan Melvin, IUF Key Employee are husband and wife. 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 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; 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; Associate Director, Regional Advancement; Senior Advisor, IUF; and the Events and Meetings Associate. 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 8, 2017. 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; 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 4,130,635. Income/Loss from K-1's -588,247. Pledge Write offs -6,832,205. CVI GVF Holdings 8 Ltd PO Box 309 Grand Cayman CJ KY1-1104 Investment CJ IUF C 56431 4408412 0.99000 1 Charitable Remainder Trusts (97) Trust IN 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 CVI GVF Holdings 8 Ltd R 1940359 FMV