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“Nelson Henderson said that ‘true
meaning in life is to plant trees under
whose shade you do not expect to
sit.’ This is how we plant our trees.”
— Tashia Morgridge
UNIVERSITY OF
WISCONSIN FOUNDATION
ANNUAL REPORT
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08
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From the Chancellor
Rebecca Blank offers her insights
on 2014.
From the CEO
Mike Knetter looks toward the transformational impact of the campaign.
Badger Bonds
The UW Foundation merged with
the Wisconsin Alumni Association.
Six Numbers to Remember
See the math behind the
accomplishments of 2014.
Seeds for the Future
On the eve of a comprehensive
campaign, we celebrate the UW.
Faculty Excellence
The Morgridge Match helps the
UW to increase endowed chairs.
Student Support
Ab and Nancy Nicholas offer a
challenge to attract top students.
Wisconsin Experience
With help from gifts, the Union
is ready for the 21st century.
Expanding Knowledge
The Grainger Institute offers to
reengineer Engineering research.
2014 Financial Report
From mergers to major gifts, we
review the year’s finances.
Board of Directors
Meet the Foundation’s
leadership.
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04
From the Chancellor
With each year in Madison, I learn a little more about what it means to be a Badger:
the energy of our students, the intellectual power of our faculty, and the fierce
devotion of our alumni and donors. Your pride in this institution and your generosity
continually impress me, and I’m grateful for the support you give to your alma mater.
If all you know about UW-Madison is what you’ve read in the news media recently,
you might think that this has been a difficult period on campus. Stories about budget cuts and changes to tenure and shared governance have dominated coverage
of the university. And of course those issues are tremendously important — the
debates matter a great deal to our faculty and to our students, and so they should
matter to our alumni as well.
However, if that’s all you’ve heard about UW-Madison, you’re missing a large part
of the story of campus this last year. Beyond the political wrangling, a great many
positive things happened at the university — and some of them were created by you.
Our alumni and donors continue to show their trust in UW-Madison. In 2014, the
university received its largest gift to date from a single family. John and Tashia
Morgridge’s transformational matching gift for faculty chairs and professorships,
along with the generous commitments of many donors inspired by their gift,
brought nearly $250 million in new funds to help recruit and retain outstanding
faculty members. In addition we received substantial gifts to support diversity efforts,
capital projects, scholarships, and more. Participation in our annual campaign
increased and many alumni and friends made important contributions all across
campus.
I’m grateful to you not only for the financial gifts you’ve made, but for the message
you’re giving to me and to the world: UW-Madison remains a good investment.
The work that the UW Foundation does brings alumni and donors into an act of
trust. You share your gifts with us in the belief that we’ll transform them into something important — new discoveries, top-flight educational facilities, generations
of highly gifted students turning into legions of talented graduates. Your ongoing
belief in this institution means the world to me. Thank you.
On, Wisconsin!
Rebecca Blank
Chancellor, University of Wisconsin-Madison
Chancellor Blank speaks at a Parents Weekend event in the Gordon Dining and
Event Center in 2014. Photo by Bryce Richter, University Communications.
From the CEO
Our role at the UW Foundation is to engage donors in the life of the university
and present opportunities for them to make gifts that are both meaningful to them
and can have a positive impact on the people and programs at UW-Madison. We
had some incredible progress on that in 2014, and 2015 is shaping up to be more
of the same, including some historic gifts for faculty support from John and Tashia
Morgridge, for student scholarships from Ab and Nancy Nicholas, and major facilities
reinvestments from the Grainger Foundation and others.
The historic Morgridge Match gift stimulated $124.3 million in support from other
donors, resulting in just under $250 million in new faculty support in a span of
seven months. We certainly didn’t expect to be reporting out on the close of that
gift this quickly, nor did we expect to exceed the original cap of $100 million. The
generosity of the Morgridges and hundreds of donors such as you played an
enormous role in making this monumental gift in support of the faculty at
UW-Madison. Thank you.
A total of $245 million was transferred in 2014 from the UW Foundation to
UW-Madison, and a total of $380.5 million in new gifts and pledges was recorded,
a 42.6 percent increase over the previous year. The endowment portfolio was up
by 5.8 percent versus 4.8 percent for the policy benchmark. The endowment fund
balance was $2.3 billion, with just over $3.1 billion in total assets under management at the end of the year.
Chancellor Rebecca Blank continued to provide exceptional leadership to the
UW-Madison community in 2014, in the face of significant challenges. Together
with her and other university leaders, we are looking forward to launching our
fourth comprehensive campaign this fall. The campaign will touch every aspect
of the UW-Madison experience.
As always, I am thankful to the thousands of alumni and donors who play such a
critical role in the ongoing success of this great university. Your support has and
will touch countless lives — not just on campus, but around the world. Thank you.
On, Wisconsin!
Michael M. Knetter
President and CEO, University of Wisconsin Foundation
Michael Knetter (center) enjoys a Badger victory with John and Tashia Morgridge.
The three took the field at Camp Randall to honor the Morgridges’ $100 million
matching gift in November. Photo by Jeff Miller, University Communications.
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08
Badger Bonds
The UW Foundation traces its history to 1945, when the organization was created
(under the name Gifts and Bequests Council). Its early leadership included three
UW administrators, 11 representatives of the board of regents, and seven representatives from the Wisconsin Alumni Association (WAA). The Foundation’s
purpose, of course, was to “collect and receive gifts, bequests, devises, or things of
value” from alumni on behalf of the university. Thus, it effectively spun off WAA’s
fundraising function.
On July 1, 2014, that spin-off was unspun, and the UW Foundation and WAA
united through a merger. This marriage was not the product of a moment, but
rather of many months of planning, as board members and CEOs Mike Knetter
and Paula Bonner worked to make certain that the new Wisconsin Foundation
and Alumni Association (WFAA) will fulfill the missions of both constituent
organizations and take advantage of greater efficiencies.
“Each area of our integrated organization has undergone some degree of change
and probably endured periods of uncertainty,” says Knetter.“Despite all of that, our
results — whether in development activity, new gifts, or the investment portfolio
performance — are strong, and we’ve been able to report progress to our board
and campus around tracking alumni communications through ABE.”
ABE, or Advancing Badger Engagement, is one of the most important projects
undertaken through the merger. ABE is WFAA’s new, combined alumni database
and donor-management system. It provides a leading-edge platform for collecting,
managing, and reporting alumni and donor information that greatly enhances
WFAA’s work to support university advancement goals.
But for alumni and donors, few will notice a change. Under the new structure, the
UW Foundation continues to be the outward-facing brand of fundraising and gift
receiving for UW-Madison. WAA continues to be the outward-facing brand for
alumni relations and engagement. But internally — and from a campus perspective
— WFAA is a single organization with a single purpose: encouraging support for
UW-Madison and its mission. Campus units will see stronger coordination among
fundraising, alumni relations, and stewardship efforts.
In the new structure, Knetter retains the position of CEO of WFAA, and Paula
Bonner, who had been WAA’s CEO, holds the position of president of the alumni
association and serves as WFAA’s chief alumni officer.
“This is an exciting opportunity for us, not only at WAA and the Foundation, but all
across campus,” says Bonner.“We’ve always worked very closely with the Foundation,
but now our efforts are completely united. The UW will see great things come out
of this.”
The Lincoln statue in front of Bascom Hall honors the president who signed the
Morrill Act into law, creating land-grant universities. Abe also serves as the namesake for ABE: Advancing Badger Engagement, the WFAA database that serves
campus and unites information about alumni and donors. Photo by Andy Manis.
11
6
NUMBERS
TO REMEMBER
79K 854 122
In 2014, more than seventynine thousand donors gave
to UW-Madison through the
UW Foundation — to be exact,
79,535 individuals, entities, and
organizations. That’s a 4 percent
increase over 2013.
A flock of hundreds of plastic
pink flamingos represented the
854 pledges to the UW annual
campaign during the 24-hour
Fill the Hill event in October.
New professorships, chairs,
and distinguished chairs
created through the aid of the
Morgridge Match. In addition,
the match inspired enhancement to 47 existing funds.
$25M
388 315
With a gift of $25 million, the
Grainger Foundation helped to
create the UW’s new Engineering Institute. The gift will fund
25 new faculty positions.
The UW opened its 388th
building in 2014 when the
School of Nursing cut the
ribbon on its new home, Signe
Skott Cooper Hall. A longtime
supporter of UW nursing,
Cooper served on the nursing
faculty and was named a “living legend” by the American
Academy of Nursing. The hall
was built at a cost of $53.3
million, $17.4 million of which
came from private gifts.
There will be 315 seats in the
recital hall of the Hamel Music
Center, to be built starting in
2015 with the aid of a gift from
George and Pamela Hamel.
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Seeds for the Future
Throughout 2014, the UW Foundation placed its focus not on the present, but on
creating fertile ground for the university’s growth into the future. Increasingly, our
eyes have turned toward the coming comprehensive campaign, an effort to help
the UW make a major leap forward.
Titled All Ways Forward, the campaign will launch in October 2015, but Foundation
and university staff have been working on plans and goals for many months.
In 2014, Chancellor Rebecca Blank crystallized the four strategic priorities for
UW-Madison, and those priorities will form the pillars of the campaign. These
are the elements that lie at the heart of great universities:
• Supporting students
• Enhancing students’ Wisconsin Experience
• Investing in faculty excellence
• Nurturing research and discovery
In the following pages, you’ll see ways that the Foundation is helping the UW to
advance along each of these priorities.
In addition to preparing for the upcoming campaign, we celebrated major milestones and helped to highlight the UW’s achievements, past and present. These
included the 25th anniversary of the Women’s Philanthropy Council, an effort by
the Foundation to engage the UW’s alumnae in helping to shape their alma mater.
And it included marking the 125th anniversary of the College of Agricultural & Life
Sciences (CALS).
CALS has one of the UW’s great stories. Its scientists and scholars have been helping to build Wisconsin’s economy since the nineteenth century. Their discoveries
have fostered the dairy industry and produced medical innovations, such as the
drug Warfarin.
We’re proud to celebrate the great things about Wisconsin because these achievements are the kinds of things that you, our investors and supporters, are hoping
to stimulate. In the months to come, as the campaign gets under way, you’ll hear
more about the great things going on at Wisconsin. We trust you’ll find the work
on campus as inspiring as we do.
Vera Swanson hoists an armful of giant ragweed as part of a College of Agricultural
& Life Sciences research project. In 2014, the Foundation helped CALS celebrate
125 years of advancing science and outreach. Photo courtesy of Vera Swanson.
Morgridge Match Spurs
Rapid Growth
The alumni who attended Wisconsin Ideas events in Naples and Milwaukee know
that a Bill Cronon talk is a treat. Cronon wowed the crowds when he spoke about
the history of UW-Madison.
Cronon is the UW’s Frederick Jackson Turner and Vilas Research Professor of History, Geography, and Environmental Studies. His resume boasts an impressive list
of achievements: he presided over the American Society of Environmental History,
he was the general editor of the Weyerhauser Environmental Books series for two
decades, and he’s the author of dozens of articles, books, and reviews. And campus
is in his blood — he’s a 1976 graduate, and his father, E. David Cronon, was dean
of the College of Letters & Sciences from 1974 to 1988.
So Cronon is more than just the UW’s Turner and Vilas professor. But that title is
important. Named chairs and professorships help the UW attract top teachers and
researchers. (Cronon had been on the faculty at Yale University before he came to
Madison in 1992.) These endowed positions help fund opportunities for innovation
in classrooms and labs.
This is why the UW community was so excited when, in November 2014, John and
Tashia Morgridge announced a matching gift of $100 million to inspire the creation
and funding of more endowed chairs and professorships.
Made public during the Foundation’s Van Hise Society dinner, the Morgridge
Match gift had an immediate and electrifying effect. Across the alumni community,
donors saw the chance to leave their mark by establishing and supporting important faculty positions. And across campus, people saw the opportunity to make
Madison an attractive destination for top researchers and educators long into the
future.
Within seven months, donors had created 122 new funds for professorships, chairs,
and distinguished chairs, and they had increased funding for 47 existing faculty
endowments. The first great gift of the campaign is already helping to change the
face of UW-Madison.
The gift, John Morgridge said in a speech to alumni, is about ensuring that the
University of Wisconsin remains one of the world’s best institutions.“We want to
be sure,” he said,“that when our granddaughter trudges up Bascom Hill in January,
it’s to go to a damn good school.”
Bill Cronon holds the Frederick Jackson Turner and Vilas Research Professorship
in History, Geography, and Environmental Studies. Endowed chairs give the UW a
powerful tool in the recruitment of top faculty. Here, Cronon is shown speaking to
an alumni audience in Milwaukee. Photo by Andy Manis.
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Scholarship Gifts Open Doors
When Albert “Ab” Nicholas played guard for the Badger men’s basketball team, an
out-of-state student with a minimum-wage job could earn a semester’s tuition at
the University of Wisconsin with 280 hours of work. Today, it would take nearly a
full year, working full-time.
And that, Nicholas and his wife, Nancy, concluded, is too much for a student to
bear. So the Nicholases committed $50 million to inspire other donors to create
undergraduate and athletic scholarships and graduate fellowships for UWMadison students.
The Nicholases know what it takes to be a student at UW-Madison. Not only are
they both alumni, but Nancy’s parents, Si and Kay Johnson, met on campus, and
a long line of descendants are Badgers as well.
“The University of Wisconsin holds a special place for Nancy and me,” said Ab.“It’s
where we met and where our three children and six of our grandchildren have
gone to university. I learned the lessons in the classroom and on the court that
have fueled my career. And we made lasting friendships and continue to enjoy an
amazing alumni experience.”
The Nicholas Match was announced in 2015, and it will help to spur growth in
the UW’s priority area of supporting students through scholarships. As the cost
of education has risen and state funding has remained stagnant, students and
their families have seen tuition rise. If the UW is to remain an attractive option
for in-state and especially out-of-state students, it will have to offer more in the
way of scholarships and fellowships.
“The Nicholas gift is in the sweet spot of our priorities,” said Chancellor Rebecca
Blank.“Along with the donations it inspires, it will go straight into the pockets of
students and their families to make UW-Madison more accessible and affordable.”
The first three scholarships established as part of the match were need-based
undergraduate scholarships created by Ab and Nancy’s children: daughter Lynn
Nicholas, daughter Sue Nicholas Fasciano, and son David and daughter-in-law
Lori Nicholas, all of whom graduated from UW-Madison. UW athletics director
Barry Alvarez and his wife, Cindy, pledged funds for one of the first three athletic
scholarships under the match. Pledges for the other two came from men’s basketball coach Bo Ryan and his wife, Kelly, and football coach Paul Chryst and his wife,
Robin.
“We are blessed to join with other donors to help deserving students and families
have their own Wisconsin Experience,” said Ab.
To attract and retain a growing body of diverse, qualified, and accomplished students, UW-Madison must continue to make its degrees financially accessible, and
this depends upon the financial support of alumni and friends who fund scholarship
awards. Ab and Nancy Nicholas, shown with UW athletics director Barry Alvarez,
have offered $50 million in matching funds to inspire giving for scholarships and
fellowships. Alvarez was one of the first donors to answer the Nicholases’ challenge.
Photo by Andy Manis.
Gifts from Alumni Have the Union
Reaching New Heights
With acrobats dancing vertically down the walls of the Wisconsin Union Theater,
Memorial Union’s west wing reopened in 2014, part of Phase I of the Union’s
Reinvestment. Accomplished with the assistance of private giving and student fees,
the Memorial Union Reinvestment is giving a facelift to the building that has been
the campus’s living room for nearly nine decades — the first major renovation in
its history.
The Union depends on funds from alumni and donors to ensure that students
have opportunities to see high-quality dramatic and musical performances and
to experience hands-on, outside-the-classroom learning opportunities. Although
more than half of the funds for the renovation have come from student fees and
operating revenue, gifts play an important role in making the Union reinvestment
possible.
The project’s first phase began in 2012 with the closing of the theater and several
other facilities on the west side of the building, including the Wheelhouse Studios,
the Fredric March Play Circle, and the Hoofers’ clubhouse. Among the alumni
supporting the project were Mike and Mary Sue Shannon. Fans of the Union,
the Shannons made a significant gift toward the project, and the theater’s largest
performance space has been renamed Shannon Hall in their honor.
Not part of the original Memorial Union, the theater first opened in 1939. Its
reopening in September 2014 featured the Madison World Music Festival,
which included a performance by BANDALOOP, a vertical dance troupe based
in California.
The second phase of construction, which includes work on the building’s east wing
and the Terrace, began in 2015 and will continue through 2016.
Memorial Union remains a popular destination on campus, not only for students,
but for alumni and visitors as well. In June 2015, it was named to the National
Register of Historic Places.
The UW Foundation helps the university to enhance the student experience in a
variety of ways. Through a Building Fund, Theater Endowment, Hoofers Fund, and
Special Projects Fund, alumni can help keep the Wisconsin Union an important part
of the Wisconsin Experience for new generations of Badger students. Photo by Jeff
Miller, University Communications.
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20
Grainger Commitment Engineers
a Brighter Future for Engineers
Dan Thoma is looking to redefine the technological age in which we live.
“The ages of human development are based on the materials peoples of the day
used: the Stone Age, the Bronze Age, the Iron Age,” he told the UW College of
Engineering.“Technology is the driver. Materials are the enabler — so that
discovery point is really what impacts society.”
Formerly a deputy leader of the Los Alamos National Laboratory Materials Science
Division, Thoma was attracted to the UW to lead the new Grainger Institute for
Engineering.
Funded over three years by a $25 million commitment from The Grainger Foundation,
the new institute aims to be a transdisciplinary catalyst for transformational research.
The commitment includes an endowment for professorships, faculty scholar awards,
and postdoctoral fellowships, and it aims to enable the UW to hire clusters of top
faculty who will help define the directions for new research.
Thoma, who earned his PhD in metallurgical engineering at the UW in 1992,
helped Los Alamos develop a new alloy design team. He hopes that the Grainger
Institute will help develop technologies that can quickly be turned into commercial
products.
“Everything is in place that just makes this so natural,” said Thoma.“The university
has always been scientifically relevant, and relevant on a technical and engineering level. It has been a resource and a pipeline for industry, and now we can start
developing these interactions and capabilities that can benefit industry.”
Chancellor Rebecca Blank has named research and innovation — helping the UW
extend the boundaries of knowledge — as one of her leading priorities for the UW,
and the Grainger commitment will give the College of Engineering a solid boost in
that effort.
“The positive and transformative effects of this investment within the College of
Engineering will resonate throughout the state and our nation far into the future,”
Blank said.“Through innovation in advanced manufacturing technologies and
education of the workforce, the institute will accelerate the renaissance of the U.S.
manufacturing industry and enhance the nation’s economy.”
The Maquina Fountain is a gathering place on the UW’s enginering campus. The
UW’s College of Engineering is a leader in expanding the boundaries of knowledge,
and in turning its discoveries into practical inventions. The college’s faculty and
students have produced more than 100 patent disclosures each of the last 12 years.
Photo by Jeff Miller, University Communications.
23
2014 Financial Report
Financial markets experienced more déjà vu this year, as generally good investment
returns were earned, even with the overhang of a “muddle through” global
economy. Despite the 2014 surprises, such as unrest in Ukraine, volatile oil prices,
and Ebola, the low-interest-rate environment supported equity prices, especially in
the United States. However, some recurring themes such as the Greek debt crisis
and the long-anticipated rise in interest rates continued to weigh on the minds of
investors in the Eurozone and fixed-income markets, respectively. In spite of these
and other events, the U.S. economy accelerated and showed strong employment
growth, even as much of the rest of the world exhibited signs of being stalled or
slowing down.
The University of Wisconsin Foundation is the gift-receiving
agency for UW-Madison, which means that we’re about more
than just growing an endowment. We know that investing and
spending your gifts wisely is important to you, but we also
know that you don’t give just to see the size of the endowment
rise. You give because you want to see the UW do great things:
find outstanding faculty, recruit the best students, conduct
world-changing research, and build a campus community that
inspires generations to take part in the Wisconsin Experience.
When you invest in the UW, you expect to see returns that go
beyond dollars. And so this report contains stories that show
the ways that giving is helping the University of Wisconsin
to remain one of the world’s great educational and research
institutions.
But we know that fiscal stewardship is also important, and
so this report describes our investment strategy and financial
performance. You’ll find that information in the following
pages. If you’d like to learn more about investing in the
University of Wisconsin, please contact us at 608-263-4545
or uwf@supportuw.org, or visit our website: supportuw.org.
For information about deferred gifts, contact the Office of Gift
Planning at 608-263-4545.
Given the continued central-bank-managed zero-interest rate policy, and the
necessity of investing for long-term growth, the endowment portfolio favorably
positioned asset weights toward both public and private domestic equity markets.
As the returns for these asset classes were strong in 2014, this contributed to outperformance. For the year, the endowment portfolio returned 5.9 percent versus
4.8 percent for the policy benchmark.
Financial highlights for 2014 included the growth of total assets under management to more than $3.1 billion, which includes the endowment portfolio balance of
$2.3 billion. In addition, philanthropic gifts and pledges recorded during the year
totaled $380.5 million, and the Foundation transferred $246.7 million to benefit the
University of Wisconsin.
Portions of this financial report were drawn from the annual Foundation audit
report completed by an independent accounting firm. Copies of the complete audit
report are available on request and are posted on the Foundation’s website. The UW
Foundation complies with all applicable federal and state reporting requirements.
Julie Van Cleave, CFA
Chief Investment Officer
Geoff McCloskey
Chief Financial Officer
24
Statement of Financial Position
Statement of Activities
Annual Report 2014 | Year Ended December 31
Annual Report 2014 | Years Ended December 31
ASSETS
2014
2013
188,835,022
173,968,891
12,096,229
14,447,265
1,554,015
974,503
66,646,407
63,667,411
2,987,366,133
2,826,928,493
Property and equipment, net
17,437,128
12,642,559
Real estate
4,150,549
3,116,026
Notes receivable
1,169,804
1,327,613
Other assets
4,894,108
4,349,767
$3,284,149,395
$3,101,422,528
Cash and cash equivalents
Income and redemption receivables
Prepaid expenses
Pledges receivable, net
Investments
TOTAL ASSETS
REVENUES, GAINS, AND
OTHER SUPPORT
2014
2013
380,492,270
266,855,030
Interest and dividend income
34,240,797
29,209,433
Net investment gains
62,277,780
298,868,468
3,472,023
637,862
$480,482,870
$595,570,793
246,727,971
236,942,847
44,836,691
35,032,137
$291,564,662
$271,974,984
$188,918,208
$323,595,809
Contributions
Other income
TOTAL REVENUES, GAINS, AND
OTHER SUPPORT
EXPENSES
Payments to or for the University of Wisconsin
Administrative and investment expenses
TOTAL EXPENSES
LIABILITIES
INCREASE IN NET ASSETS
Accounts payable
3,120,861
2,664,842
Pending investment purchases payable
1,202,177
24,779,840
Net assets at beginning of year
2,712,559,170
2,388,963,361
Accrued expenses and other payables
4,487,927
3,216,596
Contribution of WAA net assets
7,580,172
-
978,035
-
$2,909,057,550
$2,712,559,170
2,261,553
1,536,139
-
532,731
47,334,577
44,850,036
315,706,715
311,283,174
$375,091,845
$388,863,358
234,784,150
191,273,037
Temporarily restricted
1,408,238,674
1,324,837,275
Permanently restricted
1,266,034,726
1,196,448,858
TOTAL NET ASSETS
$2,909,057,550
$2,712,559,170
$3,284,149,395
$3,101,422,528
Deferred revenue
Deferred compensation
Notes payable
Liability under split-interest agreements
Funds due to other organizations
TOTAL LIABILITIES
NET ASSETS
Unrestricted
TOTAL LIABILITIES AND NET ASSETS
NET ASSETS AT END OF YEAR
Expenses
Total Administrative and
Investment Expenses
The University of Wisconsin Foundation staff and board of directors believe strongly that expense
management is a top priority in achieving good stewardship. An important part of stewardship for a
charitable organization is the ratio of administrative expenses to contributions. The figures below show
the Foundation’s administrative expenses compared to contribution revenue for the past five years.
Administrative expenses, excluding investment expenses, are compared to contributions to reflect the
cost of raising a dollar. Total administrative expenses include investment expenses incurred by the Foundation’s investment activity. These expenses are paid directly from the individual investment funds. Over
the last five years, the Foundation’s average cost of raising a dollar has been 10.7 percent, well below the
national average.
University of Wisconsin Foundation Administrative Expenses
as a percent of contributions
Administrative
Expenses (excluding
investment expenses)
Total
Contributions
Administrative
Expenses (excluding
investment expenses)
as a % of Contributions
Payments to or for the
University of Wisconsin
2014
Salaries
2014
15,894,648
Agricultural & Life Sciences
4,147,253
Arts Institute
Unfulfilled pledges
2,681,929
Athletics
46,328,612
Contract labor and consulting
2,584,961
Business
17,576,308
Travel, meetings, and special events
1,879,680
Chancellor Designated
8,932,290
Advertising and brochures
1,699,185
Continuing Studies
Information technology and supplies
1,310,728
Education
Depreciation
1,140,134
Engineering
4,561,478
10,660,988
Human Ecology
998,592
Professional services
455,019
International Studies
203,434
Utilities
424,677
Law School
Insurance
419,268
Letters & Science
Lease payments
403,149
Libraries
9.2%
Equipment
378,958
Medicine and Public Health
2013
25,316,044
266,855,030
9.5%
Administrative services
359,157
2012
25,542,171
211,288,562
12.1%
Postage and express
338,432
Nelson Institute for
Environmental Studies
2011
24,329,445
197,541,841
12.3%
Repair and maintenance
104,812
2010
21,036,415
165,667,842
12.7%
Training and development
103,378
10.7%
181,321
607,892
380,492,270
$1,221,845,545
108,948
Supplies and miscellaneous
35,037,282
$131,261,357
5,325,430
Employee taxes and benefits
2014
5-YEAR TOTALS
27
Recruiting fees and expenses
89,002
Real estate taxes
15,020
ADMINISTRATIVE EXPENSES
$35,037,282
TOTAL
$9,799,409
$44,836,691
24,510,591
996,133
85,442,468
181,650
Nursing
3,254,852
Pharmacy
1,527,644
Recreational Sports
72,500
Research and Graduate Education
4,144,636
Student Services Unit
5,390,346
UW Hospital and Clinics
Veterinary Medicine
INVESTMENT-RELATED
EXPENSES
1,757,440
Wisconsin Alumni Association
11,788,603
3,075,155
825,206
Wisconsin Union
2,691,722
Other UW-Madison
4,357,538
Other Non-UW-Madison
1,834,086
TOTAL PAYMENTS
$246,727,971
Planning Your Estate and
Supporting the University
28
Endowment Funds
In increasing numbers, alumni and friends are creating legacies at the University of Wisconsin-Madison
through planned gifts made during their lifetimes and through their estates. Gift planning, a type of philanthropic giving, integrates charitable giving into a donor’s overall financial, tax, and estate planning to
maximize benefits both for the donor and for UW-Madison. Examples of planned gifts include bequests,
life-income gifts, gifts of real estate, and gifts of retirement plan assets. The UW has received more than
$250 million in planned gifts over the last five years, providing crucial support during a challenging
fiscal period.
Donors can direct their planned gifts to accomplish many goals. Some deferred gifts are unrestricted,
allowing campus leaders to fund the current needs and priorities of the university. Other planned gifts
are directed to specific areas, such as schools, colleges, or departments, or to specific priorities, such as
scholarships or faculty support. Some deferred gifts are intended to be used outright, while others
establish permanently endowed funds. When deciding on a designation for a planned gift, donors
should consider the delay inherent in planned giving: what will be of greatest benefit to the university
when the gift is ultimately received?
If you are considering taking advantage of the benefits of making a planned gift, we recommend that
you consult with the UW Foundation’s Office of Gift Planning. Staff members are experienced in
working with individuals, attorneys, and financial advisers. They can explain how life-income plans work,
consult on the type of gift that is best suited to your needs, identify the correct legal names of campus
departments and units, and provide language that will carry out your wishes.
Endowment funds represent an extremely important asset base that provides current and future
revenues for the University of Wisconsin. The University of Wisconsin Foundation staff, along with the
investment committee of the Foundation’s board of directors, manages the endowment fund on a total
return basis. This allows the endowment to be invested with a long-term perspective and an emphasis
on diversified, equity-related strategies.
The investment, spending, and expense fee policies associated with our endowment are designed to
enable endowment balances to increase at the rate of inflation over the long term, after all fees and
spending distributions. The Foundation allocates the annual income based on a spending plan rate of
4.5 percent, multiplied by the average market value of the total endowment fund for the most recent 16
quarters. This rate, reviewed annually by the board of directors, was adjusted during 2010.
The table on this page shows the total return figures, and the circular chart shows asset allocation of the
Foundation’s endowment fund as of December 31, 2014. The endowment fund-asset allocation targets
have been established to promote overall portfolio diversification while providing a return necessary to
meet the investment objectives.
Investment Performance*
Annualized for periods ending
December 31, 2014
All individuals with a planned gift in place for the university are welcomed into the Wisconsin Legacy
Society, the Foundation’s recognition society for those whose gifts will provide support for the UW for
generations to come. No minimum gift is required, and any information shared with us is nonbinding.
Current membership includes more than 1,600 individuals.
$5,502,016.89
Charitable Remainder Trusts
$912,275.43
Gift Annuities
$18,780,180.55
Bequests, Trusts, and
Insurance
Gift Annuities (including deferred)
Charitable Remainder Trusts
TOTAL DEFERRED GIFTS
5.9%
3 years
11.4%
5 years
9.1%
10 years
6.5%
57%
Global
Public
Equity
Endowment Fund Assets 2010–14
2014
Bequests, Trusts, and Insurance
1 year
*Net of external manager fees
Number of Gifts Received
21+2+16457D
$2,318,538,096 as of December 31, 2014
21%
19
$2,500
7
141
$2,000
$1,500
$2,191.9
$1,768.6
$1,768.5
$2,318.5
$1,870.6
$1,000
$500
$0
2010
2011
2012
2013
2014
Private Equity
2% Real Estate
16%
4%
115
MILLIONS
22+4+74D
2014
Asset Allocation as of December 31, 2014
Assets under
management
have grown from
$1,768.6 million as
of December 31,
2010, to $2,318.5
million as of
December 31, 2014,
as reflected in this
graph. The Foundation received a total
of 79,535 gifts in
2014.
Global Fixed Income
Cash/Other
University of Wisconsin
Foundation Board of Directors
Richard L. Antoine
Chair
Thomas J. Falk
Vice Chair
Nancy L. Ballsrud
John D. Baumann
Paula E. Bonner
Susan J. Cellmer
Jerome A. Chazen
Paul J. Collins
Jeffrey J. Diermeier
Susan S. Engeleiter
Wade Fetzer III
David F. Florin
Jere D. Fluno
Peter L. Frechette
Curtis J. Fuszard
Colleen A. Goggins
George F. Hamel, Jr.
Jeffrey C. Hammes
Jon D. Hammes
Jill S. Hatton
John P. Holton
William P. Hsu
Dong-Soo Hur
Ted D. Kellner
Peter S. Kies
Michael M. Knetter
Christopher J. Kozina
Paul A. Leff
Michael E. Lehman
Peter A. Leidel
Thomas P. Madsen
Jane R. Mandula
Karen A. Monfre
Alice D. Mortenson
Melinda J. Mount
John S. Nelson
Cory L. Nettles
John J. Oros
Stephen R. Petersen
Linda L. Procci
Frederick A. Robertson
Ricky C. Sandler
Jay R. Sekelsky
Paul S. Shain
Michael S. Shannon
Michael R. Splinter
Stephanie L. Swartz
Frances S. Taylor
Patrick Thiele
Doris F. Weisberg
Jeffrey D. Wiesner
31
27
THANK YOU
for supporting the University
of Wisconsin Foundation in our
efforts to advance the mission
of UW-Madison. We’re proud of
all you helped us accomplish
in 2014, and we look forward to
making the university stronger
for years to come.
ON, WISCONSIN!
©2015 Wisconsin Foundation and Alumni Association
Designer: Alina Ruppel
Editorial Staff: John Allen, Paula Apfelbach, Nicole Denison,
Brian Klatt, Matt Rogge, Chelsea Schlecht, Ashley Schumacher
Production Management: Debbi Peterson
Photos on pages 2, 23, and 30 by Andy Manis