Indiana University Foundation

What it reported doing in 2024

Investment Management The primary investment objective of the IUF's Pooled Long Term Fund 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 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 consistent 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. Over the long term, investment performance has exceeded our targets net of fees to managers.

Financial Efficiency

• Mission deployment rate: 85.7%; rating input score 86
• Program expense ratio: 89.1%; rating input score 89
• Fundraising efficiency: $11.81 raised per $1 spent on fundraising; rating input score 46; 46th percentile among comparable filings

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 68th percentile among comparable filings
• Pay-setting controls: 3 of 6 controls in place; rating input score 50
  • Compensation committee: Pass
  • Independent consultant: Missing
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Scored; rating input score 0
• Grant itemization coverage: 100%; rating input score 100; 77th percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 98%; rating input score 98; 54th percentile among comparable filings
• Governance controls: 8 of 9 controls in place; rating input score 89
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Fail
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 16.2%; rating input score 84; 84th percentile among comparable filings
• Total-asset coverage ratio: 9.3; rating input score 91; 91st percentile among comparable filings
• Liabilities to assets ratio: 0.17; rating input score 72; 72nd percentile among comparable filings
• Officer compensation ratio: 1%; rating input score 74; 74th percentile among comparable filings

Growth

• Program expense growth: 7.3% per year; rating input score 100; 59th percentile among comparable filings
• Revenue growth: 0.9% per year; rating input score 100; 8th percentile among comparable filings
• Asset growth: 6.1% per year; rating input score 100; 45th percentile among comparable filings