Investingin

SalukiFutures

Southern Illinois University Foundation2011 Annual Report

In support of

ContentInvesting in This Generation

Investing in Scientific Exploration

Investing in Future Students

Financial Position

Activities

Endowments

Contributions

Expenditures

Foundation Board

Foundation Staff

You will notice a common thread in the stories featured on the following pages. It’s all about opportunities. For instance, a generous $75,000 gift from Bob and Beth Gower, matched dollar-for-dollar by the University, is funding state-of-the-art equipment for students and faculty in our chemistry and biochemistry departments. Therefore, our students receive an opportunity to utilize cutting-edge equipment essential to subsequent success in their field.

Secondly, the Saluki Student Investment Fund (SSIF), established in May 2000 with a $25,000 gift from Omar and Carol Winter, presents an opportunity for members to attain hands-on-experience in portfolio management and investment research. SSIF manages funds provided by the SIU Foundation, and our portfolio continues to grow as a result.

Also, you’ll read about a private foundation that selected Southern Illinois University Carbondale for a program that seeks to improve the graduation rate of first-generation students. This will result in scholarship support to students who will in turn be required to contribute to campus and community life through various activities and programs.

Each story represents special opportunities that our students are receiving through generous financial support. As a result, young men and women are prepared to excel in the workforce. Your support makes the difference. Private contributions support our University’s initiative to foster an environment with a caring heart, thus, shaping our students for success well into the future.

Big things are within reach because of your commitment and support. Everyone – volunteers, alumni, friends, and University leadership – is pulling together collectively to make this happen. A sense of community is being established to ensure that this University and its students flourish well into the future.

We appreciate the devotion exhibited by alumni and friends of SIU Carbondale, and ask you to continue your commitment moving forward. Thanks for Investing in Saluki Futures.

Elizabeth BanyckyInterim Chief Executive Officer

SIU Foundation

Mary Kay MoorePresident

SIU Foundation Board of Directors

Investing in

This Generation

A private foundation is investing in Southern Illinois University Carbondale’s efforts to improve the graduation rate of first-generation students.

A long-standing commitment to first-generation students – those whose parents did not attend college -- was one of the reasons The Suder Foundation, of Plano, Texas, selected the University for the five-year, $1-million scholarship program. Along with SIU Carbondale, the foundation awarded a grant to the University of Alabama. SIU Carbondale and Alabama competed with 32 other universities for this funding.

Nearly 43 percent of SIU Carbondale’s 2009 first-time entering freshmen were first-generation students. The Suder Foundation is providing the University with budgeted funds to establish the program. SIU Carbondale received $60,000 for planning purposes, and, $121,163 during the initial year of the “First Scholars Program.” Additional funding is forthcoming, with the understanding that after the fourth year of the program, the University will be responsible for securing necessary funding to maintain scholarship renewals for existing students and to award scholarships to new groups of students.

The Suder Foundation funded 20 scholarships at $5,000 each beginning in fall 2011, and will fund 20 additional scholarships at the same level in each of the succeeding three years. Students from Illinois, Arkansas, Indiana, Kentucky, Missouri, and Tennessee will be eligible for the scholarships. Financial need and demonstrated academic ability as shown by ACT and/or SAT scores and high school GPA will be among the scholarship criteria.

The scholarship will be renewable for three years as long as the First Scholar maintains at least a 2.5 GPA and meets other criteria established by The Suder Foundation.

One of The Suder Foundation’s requirements of scholarship recipients is “Pay-It-Forward.” In addition to volunteering in campus and community organizations, First Scholar upperclassmen can serve as mentors for incoming participants. Also, the returning participants can tutor other First Scholars. At SIU Carbondale, key scholarship recipients, such as Presidential Scholars, will mentor first-year participants in the First Scholars program until their junior years. First Scholars will subsequently fulfill their “Pay-It-Forward” requirement by mentoring incoming participants.

Investing in

Scientific Exploration

A Distinguished Alumnus is teaming with Southern Illinois University Carbondale’s administration to fund state-of-the-art research equipment for instructors and students in the chemistry and biochemistry department.

Dr. Bob Gower, a two-degree SIU Carbondale alumnus and chair of Ensysce Biosciences in Houston, communicates regularly with the University’s chemistry professors. When the West Frankfort native was informed of the department’s equipment deficiencies, he immediately made mention of the issue in a subsequent meeting with SIU Carbondale Chancellor Rita Cheng.

“It’s pretty inefficient to have equipment constantly going down. I know it’s a problem that can’t exist; especially at a great university like SIU Carbondale that is striving for recognition in various aspects of research,” Gower says. “Therefore, I told Chancellor

Cheng that I would be willing to help if the University was willing to do the same.”

Cheng presented a proposal to Bob and Beth Gower for $75,000 to establish a Technology Fund in the chemistry and biochemistry department. Their commitment would be matched dollar-for-dollar by the University. The Gowers obliged. Therefore, $150,000 will fund the acquisition and maintenance of equipment for instruction and research. Additionally, the fund provides the department and college with a long-term resource plan for equipping and upgrading its teaching labs.

“This is a wonderful partnership that responds to a great need in this department,” Cheng said. “Cutting-edge equipment and technology are vital to the educational process. The Gowers’ generosity provides valuable support to our faculty’s teaching and research efforts, and will help our students be better prepared when they enter their professions.”

Investing in

Future Students

Saluki Student Investment Fund (SSIF) members receive hands-on-experience in portfolio management and investment research. The SIU Foundation has benefited as a result.

SSIF was established in May 2000, after a $25,000 gift from Omar and Carol Winter, both SIU Carbondale graduates. The SIU Foundation subsequently provided $200,000 for the students to manage on its behalf. During its first decade, assets under management for the SSIF grew to more than $325,000, and had participation from more than 60 SIU Carbondale undergraduates. Also, SSIF outperformed its benchmark by 9.36% during the SIU Foundation’s fiscal year ending June 30, 2011.

After reviewing a SSIF proposal in April, and its presentation the following month, the SIU Foundation’s investment committee subsequently voted to approve an increase in the mandate for SSIF from approximately $370,000 to $1 million.

“The SIU Foundation Board and the Investment Committee thereof are very proud of the SSIF, the students and their advisers, Dr. Mark

Peterson and Dr. Jason Greene. It has been a very exciting and rewarding experience for us as board members to observe the hard work and dedication of each student and to realize how important this learning tool is to them and their futures. Many of these students will become investment specialists and will help many people manage their investment portfolios,” says Roger Gray, chair of the SIU Foundation Investment Committee. “The SSIF results compare well with other managers we employ and in some cases, exceed very large professional managers. We believe the SSIF, under the guidance of Dr. Jason Greene, will continue to grow and attract attention throughout the SIU community and the investing world.”

Greene says over the past seven years, the Foundation’s fund has consistently outperformed its benchmark on an annual basis.

“These students have shown a great deal of professionalism in diligently working to do the best job possible in managing the Foundation’s money,” Greene says. “Committee members agreed that this year’s group has set the bar very high for SSIF members in the future.”

Statement of Financial PositionAssetsCash and Cash Equivalents

ReceivablesPledges Receivables, Less Allowance of Doubtful AccountsOther ReceivablesTotal Receivables

InvestmentsInvestmentsAssets Help Under Split-Interest AgreementsInvestment in Real EstateCash Surrender Value of Life InsuranceTotal Investments

Net Property and EquipmentIntangible AssetsOther Assets

Total Assets

LiabilitiesAccounts Payable and Other LiabilitiesObligations Under Split-Interest AgreementsAgency Funds PayableDeposits Held for OthersTotal Liabilities

Net AssetsUnrestrictedTemporarily RestrictedPermanently RestrictedTotal Net Assets

Total Liabilities and Net Assets

$1,061,472

13,995,469113,120

14,108,589

124,854,1997,956,773

190,000413,284

133,414,256

753,4112,276,677

345,144

$151,959,549

$162,4653,678,9892,077,383

218,2436,137,080

8,272,09560,779,67376,770,701

142,822,469

$151,959,549

As of June 30, 2011

ActivitiesSupport and RevenueContributionsAllowance for Uncollected ReceivablesChange in Value of Split Interest AgreementsInvestment Income Fundraising Service IncomeSupport Service RevenueOther

Total Support and Revenue

ExpensesProgram Services:ScholarshipsUniversity and Community ProgramsAcademic and Research SupportTotal Program Services

Support Services:Management and GeneralFundraisingTotal Support Services

Total Expenses

Change in Net Assets

Net Assets - Beginning of Year

Net Assets End of Year

$10,039,5691,431,6831,245,553

23,851,02924,744

5,019,089429,651

42,041,318

2,678,2961,658,7654,041,7208,378,781

4,852,0473,170,3268,022,373

16,401,154

25,640,164

120,182,305

$145,822,469

As of June 30, 2011

The SIU Foundation receives endowment contributions and invests them into the endowment investment pool for perpetuity. An annual distribution of a portion of the revenue generated from the endowment accounts is transferred to corresponding current accounts and used according to donors’ restrictions. Many of the contributions were designated for scholarships, research and for the general support of colleges and departments. Please visit www.siuf.org for more information. The SIU Foundation endowment is invested as follows:

Endowments

In Thousands

U.S. Equities$52,148

International Equities

$17,130

Fixed Income$17,294

Alternatives$4,988

Money Market

$866Hedge Funds

$5,434

Total: $97,860

ContributionsThe SIU Foundation accepts contributions in the form of cash, securities and real or personal property. Many corporations will match the contribution of employees, officers, directors, and in some instances, spouses and retirees. The SIU Foundation also accepts various types of planned gifts, whereby the donor makes a gift commitment during his or her lifetime that will benefit the University in the future. Planned gifts are in the form of bequests, gift annuities, charitable remainder trusts, charitable lead trusts, and life agreements.

The SIU Foundation applies a one-time, six percent supplement fee to all gifts of cash and securities. The Foundation uses five percent of the fee to fund central fundraising operations and returns one percent to the generating colleges or units to support their specific fundraising activities. It is the Foundation’s goal to increase private support which will provide funding towards the University’s mission of being a comprehensive undergraduate and graduate research institution. Donors contributed a total of $19.8 million during FY11.

Gifts given directly to SIU

$1,242,172

Cash contributions and pledges$8,554,470

Gifts in kind$10,080,460

ExpendituresDonors can designate their contributions for items such as scholarships, faculty support, research, facilities and equipment. Donors also can contribute toward general support with an unrestricted gift. The SIU Foundation provides support of the University mission through contributions received and investment revenue generated. SIU Foundation’s expenditures are represented as follows:

Expendable goods

$675,755

Equipment$149,387

Prof. dev. and travel$166,663

Teaching and research

$1,134,871

Grants to the University

$4,709,043

Scholarships

$1,215,760

PresidentF. Lynn McPheeters ‘64Retired Vice President/CFO Caterpillar, Inc.Peoria, IL

MembersJohn S. Brewster, J.D. ‘76Partner, Winters Brewster Crosby & Schafer LLCHerrin, IL

Michael C. Carr ’74, J.D. ‘79Asst. U. S. AttorneyUnited States Attorney’s OfficeCarbondale, IL

Robert A. Chamberlin ‘68Owner, Chamberlin Consulting Group, Inc.Lemont, IL

Juh Wah ChenDean Emeritus College of EngineeringSouthern Illinois University CarbondaleMurphysboro, IL

Rita ChengChancellorSouthern Illinois UniversityCarbondale, IL

Paul L. Conti ’72, M.B.A. ‘74Retired Chief Assets Officer VeriClaim, Inc.Glen Ellyn, IL

Greg N. CookPresidentCook Portable WarehousesMakanda, IL

Larry R. DeJarnett ’62, M.S. ‘63Managing DirectorThe LAMAR GroupPalm Desert, CA

John C. DosierPresident, CEO, First Southern BankCarbondale, IL

James T. Gildersleeve ‘72President, Gildersleeve Fertilizer Co.Hudson, IL

Roger G. Gray ‘64Retired, Central Bank of MarionCobden, IL

Michael R. Howell ’80, J.D. ‘83President, Howell Financial ServicesSparta, IL

Kenneth J. Hull ‘58Retired Chairman and CEO Follett CorporationDowners Grove, IL

Marvin K. Kaiser ‘63Retired Chief Administrative Officer Doe Run CompanyMayfield, KY

Dianne MeeksCommunity LeaderCarbondale, IL

Christoph E. Micha ‘83Manager, Data Acquisition DaimlerChrysler Motors Co.Farmington Hills, MI

Mary Kay Moore ’78, M.S. ‘81Retired CEO & Co-Owner Center for Comprehensive ServicesCarbondale, IL

Thomas E. Nielsen, M.D. ‘81Practicing Physician/Phlebology Illinois Vein SpecialistsBloomington, IL

Pamela K. Pfeffer ‘67Community LeaderNashville, TN

Glenn W. Poshard ’70, M.S.Ed. ’75, Ph.D. ‘84PresidentSouthern Illinois UniversityMurphysboro, IL

Marsha G. Ryan, J.D. ‘87Physician, Surgeon, Professor of LawMurphysboro, IL

Howard M. Spiegel ‘75Account ManagerArrow Semi-ConductorBuffalo Grove, IL

H. Wesley Wilkins ‘77Attorney-at-LawCobden, IL

AlternatesMichelle J. Suarez ’85, M.S.Ed. ‘04Associate Vice Chancellor &Executive DirectorSIU Alumni AssociationCarbondale, IL

Marquita WileySIU Board of TrusteesPresidentTrenier Enterprises, L.L.C.Belleville, IL

SIU Foundation Board of DirectorsAs of June 30, 2011

Rickey N. McCurry, Chief Executive Officer

Elizabeth Banycky, Treasurer

Jeff Lorber, Executive Director of Development

Bryan C. Vagner, Managing Director

Nancy A. Vallino, Corporate Secretary

Advancement ServicesTwyla D. Adkisson-Peak, Director of Research and Data Integrity

Beth L. Mohlenbrock, Executive Director

David B. Schwartz, Director of Information Systems

Linda Wright, Director of Gift and Biographical Processing

DevelopmentAnnual GivingNanditha Balasubramanian, Director of Annual Giving

Amber Kinkelaar, Assistant Director of Annual Giving

Constituent Development OfficersDavid Ardrey, College of Education and Human Services

Leah Bahr, Central Development Officer

Matthew C. Baughman, Paul Simon Public Policy Institute

Mary Carroll, Chicago Region

Deborah Case, School of Medicine

Tammy C. Cavarretta, College of Business

Ronald D. Graves, College of Mass Communication and Media Arts

Kevin Lister, College of Applied Sciences and Arts

Kristine McGuire, Library Affairs

Tanna Morgan, College of Science

Judith Ray, School of Law

Rebecca Stenhaug, Central Development and College of Agricultural Sciences

Eden Thorne, College of Engineering

Tracee Tyner Norris, College of Liberal Arts

Vacant, Intercollegiate Athletics

Corporate & Foundation RelationsJill Gobert, Director

Development CommunicationEmily Hunsaker, Editorial Assistant

Greg Scott, Director

Planned GivingYvonne M. Spencer, Director

Financial ServicesCindy Ciganovich, Investment Specialist

Marla Fuller, Director of Gift Accounting

Kimberly Hawk, Director of Accounts Payable

Kristy McClurken, Budget Officer Coordinator

Cindy Moreno, Director of Accounting Services, Springfield Office

As of June 30, 2011SIU Foundation and Related Staff

The Southern Illinois University Foundation was established in 1942 to solicit, receive, hold and administer gifts from private sources for educational purposes. The SIU Foundation provides alumni and other friends a means to invest in the future of their university. The Foundation is an independent, nonprofit corporation, which exists solely to further the mission of SIU Carbondale. It is a designated 501 (c)3 organization with appropriate approval from the Internal Revenue Service to issue tax deductible receipts for private gifts received to support Southern Illinois University Carbondale.

The mission of the SIU Foundation is to maximize private support for SIU Carbondale to assist the University in achieving its long-range goals. As outlined in the Strategic Plan, the activities, programs, and efforts of the SIU Foundation will be driven by five priority focus areas. These areas are developing next wave fundraising programs; fostering and improving relationships with key constituency groups; recruiting and retaining strong, high-capability staff; creating comprehensive marketing strategies; and implementing improved board governance and leadership structures. Throughout the coming years, the SIU Foundation will continue to raise money with the help of others, tout our quality board and staff, and tell its story.

Produced by the SIU Foundation Division of Institutional Advancement

Department of Development CommunicationSouthern Illinois University Foundation

Colyer Hall – Mail Code 6805Southern Illinois University Carbondale

1235 Douglas DriveCarbondale, Illinois 62901

(618) 453-4900siuf@siu.eduwww.siuf.org

Editor: Greg ScottDesigner: Emily Hunsaker

Photographers: Steve Buhman, Rusty Bailey and Jeffrey GarnerContributors: Libby Banycky, Nancy Vallino

Southern Illinois University FoundationColyer Hall – Mail Code 6805

Southern Illinois University Carbondale1235 Douglas Drive

Carbondale, Illinois 62901(618) 453-4900

siuf@siu.eduwww.siuf.org