2017-05-11T07:19:35-05:00 2016-06-30 420714325 RSM US LLP 1 S Wacker Drive Ste 800 Chicago IL 60606 990 2015-07-01 356018940 Indiana University Foundation INDI 8128558311 PO Box 500 Bloomington IN 47402 Daniel Smith President & CEO 8128558311 2017-05-01 1 Zack Fortsch P00052725 3126343400 2015 2021-01-29 14:40:06Z Daniel Smith PO Box 500 Bloomington IN 47402 2354975514 0 X www.iufoundation.iu.edu X 1936 IN To maximize philanthropic support for Indiana University 26 24 589 3500 -1184620 -1184620 134762439 192667048 24444824 26197314 123703434 75518682 11683746 8205835 294594443 302588879 151053694 135185047 0 0 22142711 23179233 0 0 24696379 35279894 49561516 208476299 207925796 86118144 94663083 2625026845 2601155584 439050545 475908049 2185976300 2125247535 X The Indiana University Foundation maximizes private 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 43521085 43521085 4745892 Student Scholarship and Financial Aid support - Indiana University (IU) undergraduate and graduate students received more than $43.5 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 2016, approximately 10,000 scholarships supporting IU students were funded by private gift support. (See Schedule O; page 59 for additional discussion)IU Foundation emphasizes and incentivizes philanthropic support of scholarships. Matching funds incentivize donor gifts to endowed scholarships and fellowships at or above $50 thousand. IU and IU Foundation development officers engage prospects with regard to the financial needs of students and are educated about student financial needs. The equivalent of 1,930 endowed scholarships and fellowships have been newly established through IU's Bicentennial Campaign match as of 09/30/2016. 36991688 36991688 4033874 Faculty Support and Research - With nearly $37 million from the IU Foundation, 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 2016, the number of endowed faculty positions (chairs, professorships and fellowships) increased to more than 560. 30929250 30929250 3372777 Academic & Student Program Support - The IU Foundation provided nearly $31 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. 23743024 23743024 2589132 Endowment Capital Additions and FacilitiesThe IU Foundation provided more than $23 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. 20167824 18859737 Investment Management The primary investment objective of the IU Foundation'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 IU Foundation. 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 IU Foundation 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 IU Foundation 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 0.6% per annum. 43910848 23743024 21448869 155352871 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 1 411 0 1 589 1 1 1 0 0 0 0 1 1 0 0 0 0 X 26 24 1 0 1 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 Michael 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 Jane H Martin 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 Desmond C Wong IUF Board Director 0.00 X 0 0 0 S Sue Aramian 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 James T Morris 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 Margaret Watanabe 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 431331 0 102281 Steven A Martin Assistant Corp Secretary 0.00 X 0 0 0 Richard Dupree Executive VP for Development 40.00 X 308696 0 84372 Jeffrey D Stumpf Exec VP for Fin & Oper & Asst Corp Sec 40.00 X 264493 0 76938 Gary Stratten Executive VP & CIO 40.00 X 477077 0 87379 Philippa Guthrie Exec. VP, Gen. Counsel & Corp Sec. 40.00 X 227976 0 81745 Laurie Burns McRobbie Senior Advisor, IUF 40.00 X 160556 0 46667 Sheila Decker Associate VP, Administration 40.00 X 189029 0 66881 Gina M Reel Associate VP, Finance 40.00 X 151677 0 41966 John Keith Thru 1015 Associate VP, Individual Giving 40.00 X 162140 0 26369 Anne Wymore Associate VP, Marketing Advancement 40.00 X 184319 0 57020 Bryan Melvin Associate VP, Principal Gifts & Intnl Adv 40.00 X 151532 0 38630 Sarah Beggs Chief of Staff 40.00 X 178679 0 32433 Catherine Melvin Controller 40.00 X 159719 0 54303 D Abe Weldy Director, Alternative Investments 40.00 X 287424 0 84262 James Bergstrom Director, Investments 40.00 X 337610 0 82338 Dorothy Metaj VP Indianapolis 40.00 X 244570 0 64825 Paula Jenkins VP Bloomington 40.00 X 226982 0 64918 Jeff Lindauer VP, Adv. Services, Mgr Capital Camp 40.00 X 212816 0 40317 Mary Bonk VP, Advancement Technology 40.00 X 220470 0 59620 Joyce Rogers External Relations for DEMA 40.00 X 245832 0 70200 Eric DeHaan Associate VP for International Development 40.00 X 159316 0 39233 Jeff Lambright Associate VP, Internal Audit & Risk Mgmt 40.00 X 142320 0 59954 John Wilhite Assistant VP, Real Estate 40.00 X 143991 0 51606 Brandon O'Leary Exec Dir, Mgmt Advisory Services 40.00 X 140219 0 48653 Brian Yeley AVP, Gift Planning Services 40.00 X 122889 0 57187 5531663 0 1520097 37 0 1 0 Cambridge Associates PO Box 83232 Chicago IL 60691 Investment Consultant 625000 Champlain Investment Partners 180 Battery Street Burlington VT 05401 Investment Manager 608569 Snyder Capital Management 101 Mission Street San Francisco CA 94105 Investment Manager 557833 Templeton Investment Counsel Drawer CS 198414 Atlanta GA 30384 Investment Manager 492687 Cramer Rosenthal McGlynn LLC 75 Remittance Drive Chicago IL 60675 Investment Manager 443436 17 4000 192663048 14003631 192667048 Management Fees 900099 18859737 18859737 Dev Service Fee 900099 4923219 4923219 Telefund Service Fee 900099 374546 374546 2039812 1894827 144985 26197314 14130826 14130826 1409473 1409473 5118106 2277003 2841103 2841103 2841103 2111232927 43500 2049837348 51223 61395579 -7723 61387856 -7723 61395579 645237 4000 221061 424176 424176 Income/Loss from K-1's 525990 -1184620 -1184620 4715703 4715703 3531083 302588879 33601412 -1184620 77505039 134438027 134438027 21470 21470 725550 725550 6086392 3227281 2859111 18922 10033 8889 10897668 5778437 5119231 1987341 1053778 933563 2939943 1558891 1381052 1248967 662259 586708 85377 45271 40106 405746 215145 190601 20167824 20167824 1514934 803287 711647 235414 124827 110587 2317337 1228758 1088579 1768695 937842 830853 1946235 1031982 914253 2397936 1271494 1126442 530737 281421 249316 186582 98934 87648 372422 197475 174947 736108 390318 345790 Pledge write offs 15297820 8111597 7186223 1598349 847516 750833 207925796 155352871 27876546 24696379 182412222 164296662 154818658 196357812 52798836 96606303 659691 629878 94141180 25419399 65146031 68721781 1137542184 1146648696 1031649223 927894452 2625026845 2601155584 37197886 5908852 52983 549632 401799676 469449565 439050545 475908049 X 54613900 50761539 839191451 831736474 1292170949 1242749522 2185976300 2125247535 2625026845 2601155584 X 94663083 -153875134 -1516714 X 0 1 X 1 0 X 123927952 128889858 151457232 134762439 192667048 731704529 123927952 128889858 151457232 134762439 192667048 731704529 17886637 713817892 16868398 15543579 15823500 14090479 20658405 82984361 3573688 4239217 5028159 7824850 4715703 25381617 840070507 119814176 0.84970 0.83830 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 1 0.00 1 1 0 1 0 10.00 0 1 1862189406 86651476 -98475896 -85861188 1764503798 1823484366 86270343 33040312 -80605615 1862189406 1582805651 95292491 233535693 -88149469 1823484366 1417184598 92831098 142945921 -70155966 1582805651 1440185795 79964190 -29939636 -73025751 1417184598 0.01600 0.63900 0.34500 0 0 24821821 18227458 43049279 45341997 21148945 24193052 2952887 2196333 756554 2797017 2074121 722896 68721781 Institutional Funds, Cash and Equiv & Commercial Paper 29506146 F Private Equity 898388306 F 927894452 Accumulated Trust Liability 33172208 Collateral Under Securities Lending Agreement 99082525 Due to Indiana University 209925290 Assets Held for University Affiliates 38194336 Due to Brokers 89075206 469449565 X 129527271 -153875134 -203270 -154078404 283605675 18983204 18983204 302588879 190256036 2498064 2498064 187757972 20167824 20167824 207925796 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 Foundation is subject to routine audits by taxing jurisdications; however, there are currently no audits for any tax periods in progress. The Foundation believes it is no longer subject to income examinations for years prior to 2013. As of June 30, 2016 and 2015, the Foundation has no uncertain tax positions. Part XI, Line 2d - Other Adjustments: Rental Expense 2,277,003. Fundraising Event Expenses 221,061. Change in Value of Split Interest Agreements -2,701,334. Part XI, Line 4b - Other Adjustments: Management Fees 20,167,824. Income/Loss from K-1's -1,184,620. Part XII, Line 2d - Other Adjustments: Rental Expense 2,277,003. Fundraising Event Expenses 221,061. Part XII, Line 4b - Other Adjustments: Management Fees 20,167,824. 1 Central America and the Caribbean 0 0 Investment 291156844 East Asia and the Pacific 0 0 Fundraising 19084 East Asia and the Pacific 0 0 University Partnership/Alumni Relations 6835 Europe (Including Iceland & Greenland) 0 0 Investment 74790341 Europe (Including Iceland & Greenland) 0 0 Fundraising 26391 Europe (Including Iceland & Greenland) 0 0 University Partnership/Alumni Relations 45160 South America 0 0 University Partnership 4226 North America 0 0 Investment 1684665 Russia and Neighboring States 0 0 Grantmaking 725550 0 0 0 0 0 0 367733546 725550 368459096 Russia and Neighboring States - Armenia, Azerbijan, Belarus, Operating Expenses 725550 Bank Draft 1 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 Indiana University Foundation has been able to reasonably identify for either direct or indirect (thru reimbursement) support have been listed in Schedule F. The Indiana University Foundation 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 Indiana University Foundation 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 636061 4000 632061 0 38629 137383 229954 Fall Cycling 8016 8016 2141 7708 1 5160 5160 0 1453 6908 649237 4000 645237 38629 140977 244570 424176 221061 1 Indiana University 401 E 7th Street Bloomington IN 47405 356001673 Gov't Entity 30921025 Academic and Student Program Support Indiana University 401 E 7th Street Bloomington IN 47405 356001673 Gov't Entity 43499615 Student Scholarship and Financial Aid Indiana University 401 E 7th Street Bloomington IN 47405 356001673 Gov't Entity 36266138 Faculty Support & Research Indiana University 401 E 7th Street Bloomington IN 47405 356001673 Gov't Entity 23743024 Endowment and Capital Additions University of Pittsburgh 128 North Craig Street Pittsburgh PA 15260 250965591 Gov't Entity 8225 Academic and Student Program Support 2 0 Scholarships, general 7 21470 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 376780 0 0 0 54551 0 74195 0 28086 0 533612 0 0 0 Richard Dupree Executive VP for Development 291488 0 0 0 17208 0 34196 0 50176 0 393068 0 0 0 Jeffrey D Stumpf Exec VP for Fin & Oper & Asst Corp S 248690 0 0 0 15803 0 38904 0 38034 0 341431 0 0 0 Gary Stratten Executive VP & CIO 235257 0 221998 0 19822 0 37730 0 49649 0 564456 0 0 0 Philippa Guthrie Exec. VP, Gen. Counsel & Corp Sec. 187070 0 0 0 40906 0 35973 0 45772 0 309721 0 0 0 Laurie Burns McRobbie Senior Advisor, IUF 157223 0 0 0 3333 0 36479 0 10188 0 207223 0 0 0 Sheila Decker Associate VP, Administration 171980 0 10000 0 7049 0 24509 0 42372 0 255910 0 0 0 Gina M Reel Associate VP, Finance 149898 0 0 0 1779 0 18553 0 23413 0 193643 0 0 0 John Keith Thru 1015 Associate VP, Individual Giving 137202 0 0 0 24938 0 16218 0 10151 0 188509 0 0 0 Anne Wymore Associate VP, Marketing Advancement 182690 0 0 0 1629 0 21957 0 35063 0 241339 0 0 0 Bryan Melvin Associate VP, Principal Gifts & Intn 149903 0 0 0 1629 0 17193 0 21437 0 190162 0 0 0 Sarah Beggs Chief of Staff 176750 0 0 0 1929 0 21931 0 10502 0 211112 0 0 0 Catherine Melvin Controller 153090 0 5000 0 1629 0 19526 0 34777 0 214022 0 0 0 D Abe Weldy Director, Alternative Investments 161440 0 124355 0 1629 0 45856 0 38406 0 371686 0 0 0 James Bergstrom Director, Investments 161380 0 123818 0 52412 0 35225 0 47113 0 419948 0 0 0 Dorothy Metaj VP Indianapolis 229790 0 0 0 14780 0 39684 0 25141 0 309395 0 0 0 Paula Jenkins VP Bloomington 210590 0 0 0 16392 0 41112 0 23806 0 291900 0 0 0 Jeff Lindauer VP, Adv. Services, Mgr Capital Camp 200500 0 10000 0 2316 0 27690 0 12627 0 253133 0 0 0 Mary Bonk VP, Advancement Technology 203030 0 15000 0 2440 0 31078 0 28542 0 280090 0 0 0 Joyce Rogers External Relations for DEMA 243438 0 0 0 2394 0 31806 0 38394 0 316032 0 0 0 Eric DeHaan Associate VP for International Devel 153711 0 0 0 5605 0 18251 0 20982 0 198549 0 0 0 Jeff Lambright Associate VP, Internal Audit & Risk 140674 0 0 0 1646 0 17345 0 42609 0 202274 0 0 0 John Wilhite Assistant VP, Real Estate 139062 0 3000 0 1929 0 17294 0 34312 0 195597 0 0 0 Brandon O'Leary Exec Dir, Mgmt Advisory Services 124790 0 13500 0 1929 0 16301 0 32352 0 188872 0 0 0 Brian Yeley AVP, Gift Planning Services 120960 0 0 0 1929 0 14083 0 43104 0 180076 0 0 0 Part I, Line 1a First Class or charter travel: The Indiana University Foundation 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 IU Foundation Board of Directors has authorized the IU Foundation CEO to approve its use. Chartered travel was provided to IUF Chairman of the Board; Senior Advisor, IUF; two IUF Board Directors; President and CEO, IUF; Associate Vice President, Principal Gifts and International Advancement; Controller; and Events and Meetings Associate. These costs were not treated as taxable income because the travel was business related. In all cases, first-class and charter travel are considered in the Foundation's efforts to ensure compliance with the intermediate sanctions law. Travel for Companions: The Indiana University Foundation maintains a policy governing all business expenses which prohibits companion related expenses, except for the specifically defined role of Associate to the IU Foundation 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 IU Foundation 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 Foundation'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 Indiana University Foundation policies governing these types of payments. In the case of disqualified persons, indemnification payments are considered in the Foundation'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 2015 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 2015 one-hundred-fifteen(115) employees received a wireless communication allowance. With the approval of the IUF Board of Directors: *allowances are made available to the IU Foundation President & CEO for long-term disability and supplemental retirement payments to provide future retirement restoration. *allowances for vehicles are made available to two Vice Presidents, four Executive Vice Presidents, one Key Employee and the President & CEO of the IU Foundation. 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 2015: James Bergstrom $50,483 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 Indiana University Foundation 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 IU Foundation 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 Indiana University Foundation staff from a discretionary fund. All bonuses are based on performance and merit. Laurie Burns McRobbie See Part V 207223 Employment 0 Molly Jorgensen See Part V 76954 Employment of family member 0 Arabella McRobbie See Part V 18922 Employment of family member 0 Bryan Melvin See Part V 190162 Employment 0 Catherine Melvin See Part V 214022 Employment 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: Wife of Michael McRobbie, IUF Chairman of IUF Board(c) Amount of Transaction: $207,223(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 IU Foundation staff member(c) Amount of Transaction: $76,954(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 IUF Board, and Laurie Burns McRobbie, IUF Key Employee, and is employed as an IU Foundation staff member(c) Amount of Transaction: $18,922(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: Husband of Catherine Melvin, IUF Key Employee(c) Amount of Transaction: $190,162(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: Wife of Bryan Melvin, IUF Key Employee(c) Amount of Transaction: $214,022(d) Description of Transaction: Employment(e) Sharing of Organization's Revenues? No X 519 9962802 Listed Values X 13 4009103 Professional Appraisals X 1 1501 Listed values X Travel Exp. 15 27925 Actual costs X Sports Tkts. 8 2300 Listed values 35 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 Michael McRobbie, Board Chair and James T. Morris, IUF Board Director are directors of OneAmerica Financial Partners, Inc. 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. William Buckner, IUF Board Director and James T. Morris, IUF Board Director are Employee and Vice Chairman & Director, respectively, of Pacer Sports & Entertainment. Kate Melvin, IUF Key Employee and Bryan Melvin, IUF Key Employee are husband and wife. Form 990, Part VI, Section A, line 4 Changes were made to the Indiana University Foundation Bylaws in October 2015 which included the exclusion of the status level of fiduciary and non-fiduciary board directors. It introduced the Governance Committee as the committee whose membership includes those directors with fiduciary responsibilities and acts as the governing committee. Additionally, the Bylaws were revised to be in compliance with the restructuring of the Committee on Directors to include the Nominating Committee as a subcommittee rather than a standing committee. Form 990, Part VI, Section B, line 11 The Form 990 is completed by Indiana University Foundation 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; and Chief of Staff review the Form 990, including all schedules line-by-line to determine accuracy and validity. The Indiana University Foundation 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 Indiana University Foundation 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 Indiana University Foundation 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 Indiana University Foundation 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 Indiana University Foundation Board Secretary. The disclosures are reviewed by Indiana University Foundation 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 the Assistant Vice President, Real Estate to determine validity and completeness based on staff knowledge of Indiana University Foundation activities and transactions. The results of this review, along with every disclosure in its entirety, are provided to the Indiana University Foundation 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 Indiana University Foundation Executive Committee and Committee on Directors and Governance. When applicable, the Audit Committee Chair will also report any disclosure requiring action to the Indiana University Foundation Board and all relevant Board committees. In addition to the Conflicts of Interest Policy, each July the Indiana University Foundation 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 Indiana University Foundation 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 Indiana University Foundation Executive Committee and Committee on Directors and Governance. When applicable, the Audit Committee Chair will also report any disclosure requiring action to the Indiana University Foundation Board and all relevant Board committees. Form 990, Part VI, Section B, line 15 Each June, the Indiana University Foundation 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 Indiana University Foundation 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 Indiana University Foundation 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 July 11, 2016. 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 IU Foundation's Forms 990 and Form 990T can be requested through the IU Foundation office. The current year 990 tax return is available through the IU Foundation'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 IU Foundation'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 IU Foundation's governing documents and conflict of interest policy can be requested through the IU Foundation office. The audited financial statements (past four years), conflict of interest policy and other specific governance documents are available through the IU Foundation's website @ www.iufoundation.iu.edu. Form 990, Part XI, line 9: Change in Value of Split Interest Agreement -2,701,334. Income/Loss from K-1's 1,184,620. CVI GVF Holdings 8 Ltd PO Box 309 Grand Cayman CJ KY1-1104 Investment CJ IU Foundation C 214753 6291206 0.99000 1 Charitable Remainder Trusts (101) 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 3308442 FMV