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AND ALUMNI ASSOCIATION WISCONSIN FOUNDATION ANNUAL REPORT 2016 2017 THE PRICE ‘OF LIGHT IS LESS THAN THE

BOARD OF Peter S. Kies Patrick A. Thiele Dave Florin DIRECTORS Christopher J. Kozina Doris F. Weisberg Brian Frohna Jeffrey D. Wiesner, chair Paul A. Leff Kristen Grilli EX OFFICIO Linda L. Ahlers Peter A. Leidel John Hawley Paul J. Collins Rajiv Batra Thomas P. Madsen Peter Holsten COST OF Thomas J. Falk John D. Baumann Jane R. Mandula Paul McCann Wade Fetzer III Susan J. Cellmer Karen A. Monfre Andrew Moyer Jere D. Fluno Jerome A. Chazen Alice D. Mortenson Kevin Pickett Ted D. Kellner Jeffrey J. Diermeier Melinda J. Mount Joe Sholler Michael Knetter Susan S. Engeleiter John S. Nelson Laurie Shults John J. Oros David F. Florin Cory L. Nettles Louise Silberman DARKNESS. Frances S. Taylor Curtis J. Fuszard Susan S. Patterson Martha Vukelich-Austin Colleen A. Goggins Stephen R. Petersen WAA ALUMNI Lynn Watkins-Asiyanbi Jeffrey C. Hammes Linda L. Procci ADVISORY COUNCIL Kyle Weatherly Jon D. Hammes Frederick A. Robertson Emil Ray Sanchez, chair Martinez White Elizabeth Harned Ricky C. Sandler Sandy Sponem, vice chair Jill S. Hatton Laureen E. Seeger Kelli Trumble, past chair Elzie L. Higginbottom Paul S. Shain Richelle Andrae Louis A. Holland Michael S. Shannon Lori Berquam A. C. NIELSEN SR. 1918 John P. Holton Michael R. Splinter Natalie Bowman William P. Hsu Stephanie L. Swartz Bob Dunn ’ 04 08 CHANCELLOR ENGAGEMENT BLANK Alumni Park opens; the Rebecca Blank shares her Flamingle takes flight; vision and priorities. Project 72 says thank you; Homecoming gets jumping.

06 20 32 FROM THE CEO DEVELOPMENT FINANCES Michael Knetter looks Rec Sports leaps to the As the All Ways Forward back on a year of progress 21st century; the School of campaign progresses, as WFAA helps the Veterinary Medicine gets WFAA works to steward UW to move All Ways a lift; the School of Music the financial gifts made by Forward. breaks ground; Greg and alumni and other friends of Michelle Gard fight cancer. the university. LETTER FROM THE CHANCELLOR // 05

FROM THE WFAA 2016–17 WFAA CHANCELLOR DEAR FRIENDS,

Thank you for your ongoing support for UW–Madison — with gifts, with advice, and with involvement. Alumni and friends are increasingly important to the life of the university, and I’m grateful for our engaged community of Badgers.

It has been a very exciting year for our university, and especially for our student body:

• In 2017, UW–Madison received a record-breaking 35,614 applications for 6,600 spots.

• Our freshman class is the largest in UW–Madison history.

• Seventeen percent of freshmen and 28 percent of transfer students are first-generation college students.

• The retention rate for the overall student population is 95 percent, and it’s even a little bit higher for students from targeted minority populations.

• Time to graduation is at an all-time low.

• The university graduated a record number of doctoral students in 2017 and ranks third in the nation in PhDs conferred.

One of my highest priorities is expanding need-based aid, and we’re trying to be innovative in reaching out to low- and moderate-income families. Thanks to alumni and donors, we have created 1,000 new scholarships over the last four years — support that will help to bring the cost of a UW–Madison education within reach for more of our students. These undergraduate and

graduate students are not only the main beneficiaries of UW–Madison’s work; they’re also our CHANCELLOR future. As alumni, they’ll help Wisconsin, the nation, and the world address challenges we can’t BLANK AND BUCKY imagine today. GREET STUDENTS UW–Madison continues to be among the world’s leading universities, and our success is due in DURING THE no small part to alumni, donors, and friends who make the UW one of their priorities. Thank you. CHANCELLOR’S CONVOCATION AT On, Wisconsin! THE KOHL CENTER.

Rebecca Blank Chancellor, University of Wisconsin–Madison 06 // LETTER FROM THE CEO WFAA 2016–17

“WE ARE DRIVEN BY OUR CONVICTION THAT THIS PUBLIC RESEARCH UNIVERSITY GREETINGS! IS VITAL TO WISCONSIN AND THE WORLD.” This report marks the end of the third year since the UW Foundation and the Wisconsin — CEO MIKE KNETTER Alumni Association (WAA) merged to form the Wisconsin Foundation and Alumni Associa- tion (WFAA). During this time, we have continued to better align our development work and our alumni engagement work to serve our donors and friends more effectively.

We are driven by our conviction that this public research university is vital to Wisconsin and the world. Public research universities provide students with a gateway to life-changing careers, and the research conducted on university campuses addresses major social, economic, and environmental challenges. Private support has helped the UW remain a strong and vibrant institution despite shifting revenue streams. Consider these points: • UW–Madison is important to the nation’s economic health: Money magazine ranked the UW in the top 10 for producing Fortune 500 CEOs. • UW–Madison is important to our literal health: the UW Hospital and Clinics see 30,000 patients a year. • UW–Madison research helps develop important forms of technology: Professor Gurindar Sohi’s lab invented a computer circuit that is vital to smartphones and tablets. • A UW–Madison education helps shape our culture: the novel Fates and Furies by author Lauren Groff MFA’06 was a finalist for the National Book Award.

These achievements don’t happen without the generosity of donors and the involvement of alumni. In these pages, you’ll read about some of the important ways that WFAA unites alumni and friends to further the UW’s impact. With your help, the All Ways Forward comprehensive campaign roared past another milestone, completing the Nicholas Match, which brought in $100 million for endowed scholarship funds. And we launched new engagement initiatives, including the long-awaited opening of Alumni Park, which features new ways to see the impacts that UW alumni have made around the world.

These are exciting times to be a Badger, and together, we’ll keep the university moving All Ways Forward.

On, Wisconsin!

Michael M. Knetter President and CEO, Wisconsin Foundation and Alumni Association ENGAGEMENT // 09 ENGAGEMENT

In 2016–17, WFAA’s engagement efforts prepared for a major change. The most significant event in engagement was the retirement of Paula Bonner MS’78, who stepped down as head of the alumni association at the end of June 2017 after leading WAA since 2000. Bonner’s tenure included many of WAA’s signature achievements: the launch of Grandparents University®, the expansion of alumni-learning programs, a renewed focus on critical geographic areas for alumni engagement, a celebration of WAA’s 150th anniversary, the creation of Alumni Park, and the merger with the UW Foundation, which created WFAA. In the months between stepping down and her official retirement at the end of Octo- ber, Bonner and her many legacies were cel- ebrated around campus. Her efforts live on in the staff that she cultivated and nurtured for more than a decade and a half. Sarah Schutt was named Bonner’s successor as WFAA’s chief alumni officer and exec- utive director of WAA. Associated with WAA since 2001, Schutt has worked closely with Bonner and with WFAA leadership. “Sarah is already recognized across the Big Ten and among other alumni leaders around the country for her leadership of signature alumni-learning and engagement programs such as Grandparents Univer- sity, as well as relaunching alumni career networking,” Bonner told On Wisconsin magazine. “She is the perfect fit for this role at this time in our history.” WFAA 2016–17 DIGITS SIGNIFICANT BY THENUMBERS IN 2016–17 ENGAGEMENT 2,500 POUNDS OFMETAL ANDGLASS ATTENDEES AT ALUMNI PARK’S SERVED AT PROJECT 72EVENTS 3,917 IN WELLRED, THESTATUE OF SCOOPS OFICECREAM BUCKY INALUMNI PARK ON OCTOBER 6,2017 OPENING NIGHT IN OCTOBER ANDNOVEMBER, 2017 (from her arrival attheDepartment ofAthletics in 1976 through herretirement from WFAA in2017 YEARS THAT PAULA BONNER VISITORS TO ALUMNI PARK AND ONEALUMNI PLACE UW–MADISON’S CAMPUS ALUMNI PARK EXHIBITS ALUMNI FEATURED IN 123 HAS BEENPART OF 42 ENGAGEMENT ) //

11 12 // ENGAGEMENT WFAA 2016–17 Did you know that Alumni Park doesn’t just feature UW alumni — it was also made possible by them? More than 4,000 Badgers, representing all 50 states and 18 countries, contributed to the construction of the park.

PARK PLACED

With lighting elements that shine like beacons, Alumni Park draws media attention like moths to a flame.

“I’m so glad to be a Badger,” said one appreciative visitor walking through Alumni Park on opening night. After a party that inspired praise for the park’s design and look, those seven words summed up its deeper purposes: to In addition, WFAA’s digital and communications staff celebrate UW accomplishments and inspire Badgers’ pride. worked to create alumnipark.com, an interactive website that shares the stories of the 123 alumni who are featured in the Braving a persistent drizzle, more than 2,600 alumni, donors, physical park — and encourages visitors to share even more faculty, students, staff, and community members stepped alumni stories of their own. Multiple media outlets covered out into Alumni Park during the first three days it was open the event on television and in print. to the public. Exploring installations from the fountain on Langdon Street to the Bucky statue (shown on this report’s All told, Alumni Park generated at least 57 media mentions cover and titled Well Red) on the lakeshore, guests saw the for WFAA in October 2017, garnering more than 10 million results of the work that Paula Bonner MS’78, WFAA staffers, impressions. and a host of volunteers had put in for more than half a de- But the park is, ultimately, not about an opening night or cade — work that broke into a sprint during the 2016–17 year. even an opening month. It aims to be a campus destination Alumni Park officially opened on the evening of October 6, for decades — and, through the years, to make visitors say, 2017, but WFAA had spent many months beforehand “I’m so glad to be a Badger.” preparing for a month of celebrations. The opening was Above: Alumni Park opened on October 6, 2017. This photo followed by a retirement party for Bonner, the inaugural shows the view from Langdon Street looking north toward Homecoming Block Party after the traditional parade, and Lake Mendota. Right: The park offers a green space in which events held in conjunction with the completion of Memorial Badgers past, present, and future can explore the UW’s impor- Union’s multiyear renovation. tance and enjoy campus beauty. Learn more at alumnipark.com. ENGAGEMENT // 15

Did you know that two UW alumni magazine editors later won Pulitzer Prizes? Frederick Jackson Turner 1884, MA1888, won for history in 1933, and Louis Lochner 1909 won for correspondence in 1939. In total, UW alumni and faculty have won 38 Pulitzers, from Zona Gale 1895, ML1899 in 1921 to Matthew Desmond MS’04, PhD’10 in 2017. WFAA 2016–17 WFAA

“I like to hear and see what is going on at the campus where I do not get very often.”

A LEG UP — KENNETH BECKER ’49

“With a first cup of coffee, the WFAA hatched a new publication Flamingle is the highlight of my Friday that’s making alumni see pink. morning. Such a great way to stay in touch with life on campus! Thanks!”

— ANNE GRUNDSTROM Launched in September 2016, the Flamingle is WFAA’s weekly e-newsletter creat- NERENZ PhD’79 ed just for UW–Madison alumni and friends. It takes the place of the former Badger Voice, a monthly mailing that was declining in readership and interest. The goal of the Flamingle is pure engagement: letting alumni know what’s happening on and “I read the Flamingle at work on Friday around campus, tapping into nostalgia, and interacting in new, clever ways. mornings as a way to distract [myself] Each week, the team at Flamingle HQ builds the issue that will be sent on Friday from work-related emails. The Flamin- morning. The Flamingle first gives readers the latest installment of its column Ask gle is never disappointing, always Abe, which looks into campus quirks, traditions, and history. Flamingle HQ also informative and amusing. It is one curates a handful of the week’s top stories about campus and the surrounding community — from the lighthearted to the academic to the serious to the controversial. email I look forward to weekly.” Each issue concludes with the publication’s most popular section: an interactive — RHONDA LARSON component that takes the form of a poll, trivia test, or UW personality quiz such as SAGER ’99, MA’01 Which Game Day Tradition Are You? In short, the Flamingle lets its readers revel in everything they love about the UW. “I love the Friday Flamingle. It’s a quick So why call it the Flamingle? Excellent question! On the morning of September 4, 1979, students trudging up Bascom Hill to their first classes of the fall semester way for me to keep up with what’s wiped the sleep from their eyes to see the entire hill turned pink. The Pail and happening at the UW even though I Shovel Party, led by legendary jokesters Jim Mallon ’79 and Leon Varjian MSx’83, now live out of state. Thanks!” “planted” 1,008 plastic pink flamingos on the Bascom lawn as a victory stunt after winning the student-government elections. The flamingo prank did more than give — JENNIFER GIEBINK ’06 UW–Madison a reputation of “inspired goofiness”: it also solidified the bird as a campus and Madison icon. In 2009, the plastic pink flamingo became the official “Love the emails! My college friends city bird. and I always have an email discussion “IT’S A QUICK, WEEKLY DOSE OF WFAA believes in helping all alumni stay tapped into the inspired goofiness of NOSTALGIA. I’M ADDICTED.” on topics we didn’t know about!” UW–Madison. Will you be one of the 40,000-some alumni who flamingle with us? — AMANDA REBELLO ’13 — RICHARD HESS PhD’71 Find Flamingle stories and quizzes at uwalumni.com/flamingle. WFAA 2016–17 To further thank the citizens of of further thank the citizens To a 1957 refurbished WFAA Wisconsin, to Van Metro Harvester International ice cream a #ThankYou72 turn it into the summer and truck. Throughout the state the truck toured 2017, of fall a special flavor ice cream: deliver to Above, Thanks. of called A Swirled ’14 serves ice Kinsey Julia WFAA’s more the truck. Read out of cream at thankyou72.org. 72 stories Project UW–Madison. Not only does the state government support from Wisconsinites funding, but through university the Hayward Kenosha to also support the UW sending by some theirof brightest minds study to here. This Project year’s 72 campaign — Thank 72 — was all You, about gratitude. For the past 169 years, the 72 state’s counties have populated campus with thinkers, athletes, builders, engineers, scholars, and writers, leaders, reformers, scientists, heroes. It is the people Wisconsin of and the accomplishments these of remarkable individuals that have given the university its reputation as a world-class institution. For that, WFAA offers the Badger citizens State’s its deepest thanks. In 2016, WFAA launched the first iterationof Project 72, which used billboards, online stories, and a book highlight to UW–Madison’s partnerships with and connections each to Wisconsin’s 72of counties. But for year two, Project 72 changed its focus. Certain aspects Project 2016’s of 72 campaign were carried over: billboards went up in every county that had billboard team coordinators, of andspace 72), of (64 WFAA’s writers, and editors researched and wrote another set original of stories. This year saw a broadened scope subjects of that businesses. and alumni, subjects, living archival includes WFAA also asked itself a question: what would you do if someone gave you more than $400 million every year? The answer is simple: you’d say thank you!In the 2017 state budget, the state Wisconsin of set aside $436 million for -

The U.S. exports 1.7 billion bushels soybeans of each year countriesto all over the world, and about one-third those of bushels make their journey through the Panama Canal. But without Edward Schildhauer there 1897, would be no Panama Canal. And without Wisconsin’s Calumet County — whose population roughly equals the current enrollment at UW– Madison — there would be no Edward Schildhauer. Growing up in New Holstein, Wisconsin, Schildhauer learned early on that he had an engineer’s mind, so he moved to Madison and enrolled at the After UW. graduating from the Common Chicago’s for worked he Engineering, of College wealth Edison until he resigned join to an exciting new project: the Panama Canal. Schildhauer designed several its of most important features, including the locks that enable ships to climb over the Panamanian isthmus, which links the Atlantic and Pacific; and the locomotives that pullvessels across. This is just one 72 of stories that WFAA published this year showto how influential the stateof Wisconsin’s supportof UW–Madison is.

This year’s Project 72 campaign 72 campaign Project This year’s to say took a simple approach: for to Wisconsin thank you the its continued support of university.

YOU, 72 YOU, THANK THANK ENGAGEMENT ENGAGEMENT

// that 24,016 of UW–Madison’s current students come from come from students current UW–Madison’s of that 24,016 know you Did 160,430 of A total the undergrads. of percent 61 That includes Wisconsin? residents 36 state every out of That means that one in Wisconsin. alumni live degree. holds a UW–Madison 16 WFAA 2016–17 Your School”in1963. School —almamater of four of theBeachBoys, whoincludedthetunein“BeTrue to 2,500 institutionsaround thecountry? Oneof these isHawthorne (California) High Did you know thatthemelodyfor “On, Wisconsin” isused asaschool song for about “Come on and dance,” suggest the lyrics of one of Steve of one lyrics the suggest dance,” and on “Come That night, WFAA estimates that: WFAA estimates night, That wore participants (in which disco asilent featured event The 2017, 20, October on place took Party Block the Though

Block Party. Homecoming revs upwithanew SWINGTOWN fireworks show over Lake Mendota (the first Homecoming Homecoming first Mendota (the Lake over show fireworks 76 degrees) and an advertising blitz that promoted it to it promoted that blitz advertising 76 an degrees) and Miller x’67’s hit singles. And inspired by the tune, WFAA WFAA tune, by the inspired And x’67’s singles. hit Miller Place, and Memorial Union. Alumni One Park, Alumni in place took which Party, Block Homecoming Block Party, provided musicless dancing and dinner in Memorial Union. to the participants leading to campus, Street State down the event, anew when parade, Homecoming 2017 of the end the at friends and alumni to invitation same the offered alumni and Madisonians, the event attracted people in large it was the result of many months of preparation. Buoyed Buoyed of preparation. months of many result the was it by Madison chef Jonny Hunter ’05, MPA’11, and a fish fry MPA’11,fry ’05, afish and Hunter Jonny chef by Madison demonstration acooking 2009), since display pyrotechnic marching path, traditional its followed parade The numbers. by unseasonably mild weather (the high temperature hit more — including a benefit concert featuringMiller. headphones and danced to tunes only they could hear), a could they only to tunes danced and headphones • • • •

4 H 6 B 3 1 1,500 people watched the parade, and and parade, the watched people 1,500 ,000 of them continued to Alumni Park for the the for Park to Alumni continued of them ,000 19 people went into One Alumni Place, where where Place, Alumni One into went 19 people 57 went to the fish fry in Commons. fry Tripp fish to the went 57 lock Party; unter held his demonstration, and

Terrace, the Steve Miller Band performed in the Wisconsin Wisconsin the in performed Band Terrace, Steve Miller the Union of the side other the on night, Toward of the end the Homecoming plans at uwalumni.com/homecoming. Homecoming plans atuwalumni.com/homecoming. Friday nightof Homecoming weekend. Discover thisyear’s Left: Fireworks explode over Lake Mendota. Above: Children Union Theater’s Shannon Hall. Attendees at the sold-out sold-out the at Attendees Hall. Shannon Theater’s Union show didn’t just get down to “Swingtown.” They also helped helped also They to “Swingtown.” down get just didn’t show concert raised nearly $750,000 in ticket sales and donations. and sales ticket in $750,000 nearly raised concert the and Fund, Scholarship Chancellor’s the to aid went ceeds to raise scholarship funds for UW–Madison Pro students. play inAlumni Park duringthenew BlockParty event onthe ENGAGEMENT - //

19 20 // DEVELOPMENT

In the second year since the public launch of UW– Madison’s All Ways Forward comprehensive campaign, WFAA passed major milestones on its road to the goal of raising $3.2 billion in total donations. The second major matching gift — the Nicholas Match for student support — was completed in 2017, adding $100 million. Total gifts and pledges topped the $2 billion mark in the summer of 2017. Private support is increasingly vital to the UW’s health, and that trend is unlikely to change. The WFAA endowment grew to $2.7 billion by June 2017, and between July 2016 and June 2017, WFAA transferred more than $253 million to the university. Private gifts and grants now make up about 17 percent of UW– Madison’s budget, making them the third-largest share of the university’s revenue. Of course, what matters most is the effect that these gifts have on campus. Philanthropy helps maintain the UW’s unique identity and standard of excellence. UW–Madison is the least expensive of the top 25 American universities, and in 2017, 40 of its graduate programs were ranked in the top 10 nationally. The impact of the UW’s research continues to grow: this year the UW ranked sixth among universities in the number of patents acquired. This section of the report highlights some of the ways that philanthropy continues to move the UW forward: funds that support cancer patients, build the student experience, aid the veterinary hospital, promote the arts, and much more. WFAA continues to help UW–Madison to pursue the four priorities that Chancellor Rebecca Blank laid out at the start of the campaign: faculty support, student support, the educational experience, and research and innovation. We know that the University of Wisconsin matters to you, and we greatly appreciate the generosity that Badgers have shown in helping the UW capitalize on the opportunities that define the future. Thank you for helping to keep UW–Madison moving All Ways Forward. DEVELOPMENT WFAA 2016–17 DIGITS SIGNIFICANT BY THENUMBERS IN 2016–17 DEVELOPMENT Funded bya$36milliongiftfrom BobandDottie King countries. The2017cohortcamefrom African nations. $338 brings sixstudentstoUW–Madison from developing and John ’55 andTashia ’55 Morgridge, theprogram CAMPAIGN ASOFSUMMER2017 74,904 MILES TRAVELED WHO HAVE TAKEN PART INTHE make uptheinaugural King-Morgridge Scholars TOTAL NUMBEROFDONORS program, from theirhomecountriestocampus. GIFTS MADEDURING THE 2016–17 FISCAL YEAR by the six students who by thesixstudentswho M OF $3.2BILLIONAS JUNE30, 2017 WAYS FORWARD CAMPAIGN GOAL DURING THE2016–17 FISCAL YEAR FUNDS UNDERMANAGEMENT AT TOTAL NUMBEROFENDOWED PROGRESS TOWARD THEALL Some 132ofthemwere newscholarshipfunds $2.1 WFAA ASOFJUNE30, 2017 5,102 INDIVIDUAL GIFTS MADE created through theNicholas Match. B DEVELOPMENT //

23 24 // DEVELOPMENT WFAA 2016–17 Did you know that the UW’s first swimming pool was located in the Red Gym and was just 20 feet by 80 feet? The Nick will feature an Olympic-sized pool, which is good, as the UW has produced 13 Olympic swimmers and divers, including two who competed at the Rio Games in 2016. NICK NAMED

A gift from the Nicholas family helps replace the SERF with the Nicholas Recreation Center.

In the contest to attract and retain the best students, people often overlook the competitive advantage provided by, well, competition. One of the things that students increasingly look for in a campus is an up-to-date athletics environment with sufficient facilities to serve the campus population. Although UW–Madison is a powerhouse in varsity athletics, it has not been particularly competitive in terms of its recre- Above: Bucky shows off his style in the old ational athletics options. Its newest rec-sports building — the “The main thing is that we wanted to do something that pool at the SERF. The Nick will feature an Southeast Recreational Facility, or SERF — was 34 years supports many students,” says Nancy Nicholas, noting that Olympic-sized pool that will serve both old. In the 2010s, it was serving about 3,800 people a day: she and Ab had been strong proponents for the value of the varsity swimming team and the UW’s roughly twice as many as in the early 1980s. exercise in academic achievement. “We certainly believe in general student population. the importance of both physical and mental health for young “Anyone who goes into our recreational-sports and fitness people,” she says. Left: Ab Nicholas starred on the UW varsity facilities will immediately notice that they are old and over- men’s basketball team when he was an un- According to John Horn, the director of Recreational Sports, crowded,” wrote Chancellor Rebecca Blank. “UW–Madison dergraduate in the 1950s. To honor him, the the gift includes $15 million toward the construction of the is lagging behind its peers in this area. We are behind our Nick’s eight basketball courts will be named Nick, and another $5 million goes to the UW’s Division of peers in the Big Ten conference for space devoted to fitness, after Ab and his seven grandchildren. with just 15,000 square feet. By contrast, the leader — Ohio Athletics to build an Olympic-sized pool at the Nick. Rec State — has 49,000 square feet.” sports will share the pool with the UW’s varsity swimming Read about the new pool online at team. In the fall of 2017, UW–Madison shut down the SERF to allwaysforward.org/pool. replace it with a larger, more modern structure, assisted by a “Students have told us that fitness plays a vital role in their $20 million lead gift in honor of the late Albert “Ab” Nicholas choice of schools,” Horn says. “Physical well-being is import- ’52, MBA’55, made by his wife, Nancy ’55, and their family. ant to them. It’s not healthy to spend 100 percent of their The new facility will bear their name: the Nicholas Recreation time in the classroom.” Center, or “the Nick” for short. WFAA 2016–17 vaccines againstEbola andinfluenzathatare headinginto humantrialsin2018. on theforefront of fightinghumandiseases? Their research helpedcreate new Did you know thatscientists attheUW’s Schoolof Veterinary Medicine are “When you learn about advances the SVM has made in can- in made has SVM the advances about learn you “When T Veterinary Medicine (SVM) is doing to improve animal — animal to improve doing is (SVM) Medicine Veterinary $3 million matching gift toward the school’s building building school’s the toward gift matching million $3 Medicine meettheneedsofa growing patient load. Karen Walsh andJim Berbee helptheSchoolofVeterinary SUPERHEROES VETERINARY MBA’89 grew up in the company of animals, and they they and of animals, company the MBA’89 in up grew so connected to animal medicine, and here at UW–Madison UW–Madison at here and medicine, to animal connected so sees 24,000. With increasing demand, this number is pro- is number this demand, increasing With 24,000. sees 1983 in Built space. of more need serious in is school the But surround themselves with many friends furry today — two MS’87, ’85, Berbee MA’89 Jim Walsh ’81, and Karen Need Heroes Too campaign. “And the school’s research research “And school’s Too the Heroes campaign. Need dogs and dozens of foster cats and kittens. They are truly truly are They kittens. and cats of foster dozens and dogs campaign, Animals Need Heroes Too. Heroes Need Animals campaign, cer treatment, orthopedics, surgery, and so many other areas, areas, other many so and surgery, orthopedics, treatment, cer and human —health. human and of School UW the what love truly they and lovers, animal for expert care,” says Walsh, who is cochair of the Animals Animals of the cochair is who Walsh, says care,” expert for you understand why people flock to bring their animals there there animals their bring to flock people why understand you we have this amazing place where it’s all happening — for the the —for happening all it’s where place amazing this have we to see 12,000 animal patients each year, the SVM currently currently SVM year, the each patients animal 12,000 to see jected to expand to 35,000 in the near future. future. near the in to 35,000 to expand jected benefit of everyone.” of benefit leadership is astounding. The future of human medicine is is medicine of human future The astounding. is leadership hat’s why Walsh and Berbee were inspired to offer a to offer inspired were Berbee Walsh and why hat’s

To the critters that receive care at the SVM and the people people the and SVM the at care receive that To critters the Through interdisciplinary collaborations involving the School Discover veterinary initiatives at allwaysforward.org/vetmed. SVM dean Mark Markel says, “I want to thank Karen and Jim Jim and Karen to thank want “I says, Markel Mark dean SVM no it’s SVM, by the touched are lives many how Given Match has inspired more than $10 million in support for our our for support in million $10 than more inspired has Match surprise that the Animals Need Heroes Too campaign has has Too Heroes campaign Need Animals the that surprise infectious- of the percent 75 than more conducts school goal. Campaign leaders are hoping for a $75 million commit- million a$75 for hoping are leaders Campaign goal. already has school The of support. base abroad garnered faculty SVM campus. UW–Madison the on research disease of Engineering, College the Health, Public and of Medicine campaign.” project. expansion of the cost for their incredible of support our building expansion. The to Zika. to influenza Ebola from of everything prevention and treatment the in breakthroughs major made have staff and SVM the Sciences, Life and of Agricultural College the and who care for them, Karen and Jim are definitely heroes. definitely are Jim and Karen them, for care who is helping to solve critical public health issues. In fact, the the fact, In issues. health public critical to solve helping is ripple effect of their generosity through the BerbeeWalsh BerbeeWalsh the through generosity their of effect ripple million $115 projected the out to round state the from ment million $40 of apreliminary million $20 than more raised DEVELOPMENT //

27 WFAA 2016–17 is an acoustic coffer. Above: Tyana O’Connor ’16 performs ’16 performs O’Connor Tyana Above: is an acoustic coffer. musicians only cramped, wet spaces in which practice to and perform — ones where sound bled from one room another. to began in spring The 2017. facility is expected open to in the ing took place in November 2016, and substantive work for Brenda Rae during an opera master class at the School of class at the School of master during an opera Rae Brenda for forward.org/story/george-hamel. to createto the Hamel Music Center, which had begun with a expandto the project into a larger, $55.8 million structure. as a $22 million practiceand performance facility. With the facility almost from the day the school moved into the Mosse fall 2018 of loud — to applause and a standing ovation. offer students and patrons a much better experience. better a much patrons and students offer Humanities Building in Early 1969. residents found it offered Foundation Concert Hall as well as a 315-seat Collins Recital Hall, named for Paul Collins ’58. A ceremonial groundbreak- Mead Witter Foundation gift, the School Music of was able Music administrators have expressed their desire for a new Music. Hear why George Hamel supports the UW at allways- Hamel George why Music. Hear Right: Construction on the Mead Witter School of Music’s new new Music’s School of Right: Construction Witter Mead on the wooden circle large, The began in 2017. Center Music Hamel $15 million pledge from George ’80 and Pamela Hamel in 2008. That was the lead gift for what was initially proposed The new building’s flexible spaces and improved acoustics will will acoustics improved and spaces flexible building’s new The The Hamel Music Center will house a 670-seat Mead Witter The Mead Witter gift offered a boostto the school’s plan

him an honorary doctorate in 1950. ness for music unites us,” says George Mead II, chair the of important in the estimation the of Mead and Witter families. inspiration point for all areas creativity of and learning. This is recognize a way to the connection enjoyed we’ve with the the state — and that education and music have always been the Consolidated Company Power Water into a major pow- the Mead Witter Foundation since late 2015, when George a UW regent from 1928 and 1939, to the university granted alumnus, henotes that the universityhas played vital a role in a $25 million legacy gift. The donation helped completeto fundraising for the school’s newest facility: the Hamel Music er and papermaking enterprise. George Mead I served as construction the facility for finally began. Ruth Witter 1896, on campus. they Together helped build to Mead Witter Foundation. “Everyone needs music. It is an Mead and his family announced that they would contribute UW and project to that connection into the future.” University Wisconsin. of George Mead I 1894 met his wife, Center. Anticipation at the newly renamed Mead Witter School Musicof reached a new crescendo in 2016–17 as Construction begins on the begins on the Construction new center. School of Music’s Though George I’s grandson George Mead II is not a UW The Witter and Mead families have a long connection the to The UW School Music of has been singing the praises of

“Though none our of family studied music at the a fond- UW,

MUSIC DIG THIS THIS DIG DEVELOPMENT DEVELOPMENT

// 28 that the School of Music is for more than music majors? more is for Music of that the School know you Did — people thousands of for perform student musicians of Hundreds spring. Band concerts each the Varsity attend who fans including 30,000 WFAA 2016–17 top 50hospitalsinninemedicalspecialties. developed by UWprofessor Fred Mohs ’32,MD’34 in1938? Today, theUWranks amongthenation’s Did you know thattheMohs surgery(oneof themostcommontreatments for skincancer)was AGAINST CANCER GARDING “With so many great resources and people right here in in here right people and resources great many so “With The couple was inspired to start Garding Against Cancer to Cancer Against Garding to start inspired was couple The 1,500 participants. participants. 1,500 Against Cancer. things withthelaunchofGarding and MichelleGard shootforbig beat cancer, WFAA helpedGreg Earning anassistintheeffortto Wisconsin,” says Michelle Gard, “it made perfect sense to sense perfect made “it Gard, Michelle says Wisconsin,” Wisconsin has two new star players in the fight against can- against fight the in players star new two has Wisconsin Garding Against Cancer has organized a dozen events so so events adozen organized has Cancer Against Garding of Wisconsin because Glen was so committed to helping to helping committed so was Glen because of Wisconsin cer: UW–Madison men’s head basketball coach Greg Gard Gard Greg coach basketball men’s head UW–Madison cer: far to raise funds to support researchers as well as cancer cancer as well as researchers to support funds to raise far at home.” it decided They cancer. brain with battle asix-month after and his wife, Michelle. was fitting to focus on fighting the disease across the state state the across disease the fighting on focus to fitting was is on track to raise $1.5 million and has drawn more than than more drawn has and million $1.5 to raise track on is beginning in December 2016, Garding Against Cancer its Since events. the for processing gift and promotions, WFAApatients families. and their marketing, has handled us to do as much as possible with, and for, those right here here right for, those and with, possible as much as to do us honor Greg’s father, Glen Gard, who passed away in 2015 2015 in away passed who Gard, Glen father, Greg’s honor locally first and foremost. foremost. and first locally “We have such a great platform here in Madison to be able to to able to be Madison in here platform agreat such have “We The organization held its first signature fundraiser in May in fundraiser signature first its held organization The Against Cancersignature event inMay 2017. Learn Against Cancer also provides them with additional funding. 2017 at the Kohl Center, and more than 600 attendees attendees 600 than more and Center, Kohl the at 2017 UW men’s basketball coach Greg Gard andhiswife, Cancer has also held local fundraisers around the state, state, the around fundraisers local held also has Cancer Michelle, flankBuckyduringtheinaugural Garding UW–Madison’s Carbone Cancer Center. Garding Against on Parade, atuwalumni.com/news/bucky-on-parade. at patients and researchers to help went funds of the Many about Garding Against Cancer’s latest project,Bucky Kohl Center event. “It’s really a great partnership all the way way the all partnership agreat really “It’s event. Center Kohl will he that Proving survivor. abreast-cancer —herself Nicole go to great lengths to support his cause, Coach Gard even even Gard Coach cause, his to support lengths to great go channeled his inner Garth Brooks and sang “I’ve Got Friends Friends Got “I’ve sang and Brooks Garth inner his channeled program The auction. alive and music, drink, food, enjoyed cheon and family fun night at UW–Stout. The money raised raised money The UW–Stout. at night fun family and cheon around, and the people have been unbelievable — it’s really really —it’s unbelievable been have people the and around, wife, his and Phillips Saul coach assistant Badger former at local events stays in those communities, and Garding Garding and communities, those in stays events local at the hospital system,” Greg Gard said in an interview after the the after interview an in said Gard Greg system,” hospital the in Low Places” at the country-and-western–themed event. and coach basketball University Ohio from remarks included including a 5K run in the Wisconsin Dells and a business lun- abusiness and Dells Wisconsin the in run a5K including been. … I think the sky’s the limit as to what we can do.” do.” can we to what as limit the sky’s the …Ithink been. has support the what months five in just overwhelming been Guests alone. event that at million $1 than more raised help, with the Carbone Cancer Center and the university and DEVELOPMENT //

31 FINANCES // 33 FINANCES WFAA engages alumni and donors to advance the mission of the University of Wisconsin–Madison. In the preceding pages, you’ve seen the work that WFAA does to generate support among alumni and friends, both by inspiring involvement and by soliciting financial gifts. We also invest those gifts in an effort to provide maximum return at reasonable risk to help ensure that your donations can aid the UW well into the future. In the following pages, you’ll see a financial snap- shot of WFAA’s performance from July 1, 2016, through June 30, 2017. We are past the halfway point in the All Ways Forward comprehensive campaign, and WFAA has grown the endowment from less than $2.0 billion to $2.7 billion between January 2013 and June 2017, while distributing approximately $1.1 billion to the university over that time. In fiscal 2017, WFAA brought in some $338 million, with expenses of $53 million, meaning the cost of raising a dollar remains around 15 cents, even though expenses reflect a broader mission following the merger of the UW Foundation and WAA. Payments to the university reached $253 million this year. By the end of this campaign, private gifts will come close to the annual level of state support. Fiscal 2017 was a good year for investments, and though returns change from year to year, WFAA is well positioned for growth. We take our role as a fiduciary seriously, and we are committed to transparency and efficiency. We aim to lower investment costs to increase returns for the university. UW–Madison’s alumni and friends help to ensure that this remains a world-class university for generations to come. You do this by making gifts both large and small, by advocating for the university in Wisconsin and nationally, by mento- ring students and fellow grads, and in many other ways. Thank you for your ongoing support. WFAA 2016–17

2016 2016 (1/16–6/16) 2,756,020 40,745,632 40,745,632 159,341,607 159,341,607 3,176,722,414

2017 2017 (7/16–6/17) 7,129,328 7,129,328 86,522,888 86,522,888 28,937,203 33,582,155 33,582,155 13,597,414 338,449,963 338,449,963 151,643,056 253,168,819 253,168,819 330,443,599 330,443,599 20,463,312 290,973,860 290,973,860 3,197,185,726 3,197,185,726 $339,691,707 $339,691,707 $188,278,810 $670,135,306 $670,135,306 $208,742,122 $3,527,629,325 $3,527,629,325 $3,197,185,726 Other income REVENUES, GAINS, AND OTHER SUPPORT AND OTHER GAINS, REVENUES, Contributions and dividend income Interest gains investment Net SUPPORT AND OTHER GAINS, REVENUES, TOTAL EXPENSES of Wisconsin to or for the University Payments Administrative and investment expenses and investment Administrative EXPENSES TOTAL NET ASSETS in net assets Increase assets at beginning of year Net END OF YEAR AT NET ASSETS STATEMENT OF ACTIVITIES STATEMENT

2016 JUNE 30 380,938 380,938 1,522,672 1,522,672 2,742,708 2,742,708 2,606,109 2,606,109 5,872,504 5,872,504 2,280,625 2,280,625 1,289,038 4,098,923 4,098,923 3,945,717 3,945,717 21,076,955 21,076,955 27,506,426 27,506,426 43,700,837 43,700,837 20,860,964 85,081,476 85,081,476 237,259,071 237,259,071 112,953,979 112,953,979 179,734,301 179,734,301 3,177,038,023 3,177,038,023 1,587,774,729 1,587,774,729 1,524,329,521 1,524,329,521 $3,197,185,726 $3,197,185,726

- 2017 JUNE 30 1,609,194 1,609,194 2,475,638 2,475,638 2,918,308 2,918,308 6,952,922 6,952,922 1,026,113 1,026,113 2,209,309 2,209,309 2,889,362 2,889,362 3,707,056 3,707,056 15,304,453 15,304,453 55,001,392 55,001,392 45,048,021 45,048,021 20,201,517 20,201,517 293,701,763 293,701,763 105,043,144 105,043,144 131,720,292 131,720,292 122,490,421 122,490,421 3,653,235,317 3,653,235,317 1,745,855,111 1,745,855,111 1,659,283,793 1,659,283,793 $407,707,238 $407,707,238 $323,842,032 $3,935,336,563 $3,935,336,563 $3,521,027,758 $3,527,629,325 $3,527,629,325 $3,935,336,563 $3,935,336,563 $3,521,027,758 Real estate Real receivable Notes Other assets ASSETS TOTAL LIABILITIES payable Accounts NET ASSETS Property and equipment, net Property payable purchases investment Pending revenue Deferred compensation Deferred payable Notes agreements Liability under split-interest due to other organizations Funds LIABILITIES TOTAL Unrestricted NET ASSETS TOTAL Income and redemption receivables and redemption Income expenses Prepaid net Pledges receivable, Investments expenses and other payables Accrued restricted Temporarily restricted Permanently LIABILITIES AND NET ASSETS TOTAL ASSETS Cash and cash equivalents STATEMENT OF FINANCIAL POSITION OF FINANCIAL STATEMENT FINANCES

// 34 WFAA 2016–17 TOTAL 2013 2014 2015 2016 2017 (6MONTHS) Administrative Expenses Wisconsin Foundation andAlumniAssociation thatreflects WFAA’ssix months—anadjustment changeoffiscal year. 12-month periodfrom July 1,2016, toJune 30,2017. Pleasenotethattheprevious periodcovered only been 11percent, belowthenationalaverage (whichisabout20percent). Thisannualreport covers the Over theperiodfrom January 1,2013,toJune 30,2017, WFAA’s average costofraising adollarhas These expensesare paid directly from individualinvestment funds. Total administrative expensesincludeinvestment expensesincurred byWFAA’s investment activity. excluding investment expenses—are compared tocontributionsreflect thecostof raising adollar. compared tonewgiftsandpledgesforthepast fourandone-halfyears. Administrative expenses— stewarding theresources entrustedtoit.Thefigures belowshowWFAA’s administrative expenses tion, WFAA measures itsratio ofadministrative expensestocontributionsdemonstrate thatitis inachievinggoodstewardship.expense managementisatoppriority Like anycharitableorganiza- The Wisconsin Foundation andAlumniAssociationstaffboard ofdirectors strongly believe that EXPENSES INVESTMENT EXPENSES) EXPENSES (EXCLUDING ADMINISTRATIVE $8,4,5 $1,681,036,931 $184,244,751 52,610,648 25,316,044 47,820,325 23,460,452 35,037,282 CONTRIBUTIONS

(as apercentage of contributions) 266,855,030 338,449,963 380,492,270 543,596,612 151,643,056 TOTAL INVESTMENT EXPENSES) INVESTMENT EXPENSES) AS %OFCONTRIBUTIONS EXPENSES (EXCLUDING ADMINISTRATIVE 11.0% 15.5% 15.5% 8.8% 9.5% 9.2% Total Administrative and Investment Expenses TOTAL TRANFERS AGENCY FUND EXPENSES RELATED INVESTMENT- EXPENSES ADMINISTRATIVE Taxes Administration, other Insurance Travel &entertainment Professional services Utilities Facilities Marketing Depreciation Supplies &equipment Unfulfilled pledges Meetings &events consulting Contract labor, benefits Employee taxes, Salaries

$52,610,648 $86,522,888 $86,522,888 $23,092,469 $10,819,771 22,371,038 63637 2,933,352 6,326,357 3,393,838 2,893,389 6,976,791 2,080,659 1,061,190 2,346,700 1,190,525 2,020,964 (216,740) (7/16–6/17) 659,346 711,366 201,339 593,886 593,886 2017

$23,460,452 $28,937,203 $4,921,473 10,686,002 $555,278 1,038,507 1,340,790 1,548,814 1,777,399 263,246 (1/16–6/16) 225,406 903,037 380,329 592,852 105,564 591,023 659,188 414,943 2016 University ofWisconsin Payments toorforthe TOTAL PAYMENTS Non-UW–Madison Other UW–Madison Wisconsin Union Veterinary Medicine UW Hospital &Clinics Student Services Research, Graduate Ed. Recreational Sports Pharmacy Nursing Nelson Institute Public Health Medicine & Libraries Letters &Science Law School International Studies Human Ecology Engineering Education Continuing Studies Chancellor Designated Business Athletics Arts Institute Ag. &LifeSciences

231889$159,341,607 $253,168,819 24,116,174 94,739,230 25,665,326 15,936,619 14,364,107 31,503,034 3,148,568 6,028,765 6,083,606 1,114,435 4,154,512 2,071,527 3,827,474 2,891,310 1,030,120 1,483,939 1,665,902 1,084,439 9,952,692 (7/16–6/17) 262,209 914,356 120,899 645,428 254,274 109,874 2017

24,754,181 41,746,292 12,071,631 18,580,474 21,067,086 2,066,903 6,563,847 5,548,487 2,810,078 6,450,078 2,054,249 1,098,220 1,405,050 1,701,546 7,710,252 1,304,994 (1/16–6/16) 652,660 496,896 628,074 FINANCES 253,150 133,797 96,320 2016 46,164 53,261 47,917 //

37 38 // FINANCES WFAA 2016–17

PLANNING YOUR ESTATE AND ENDOWMENT FUNDS

SUPPORTING THE UNIVERSITY Endowment funds are the asset base that provides current and future revenues for the University of Wisconsin. The Wisconsin Foundation and Alumni Association staff and the investment committee of WFAA’s board of In increasing numbers, alumni and friends are creating legacies at the University of Wisconsin–Madison directors manage the endowment fund on a total-return basis. This allows the endowment to be invested with a through planned gifts. Gift planning, a type of philanthropic giving, integrates charitable giving into a donor’s long-term perspective and an emphasis on diversified, equity-related strategies. 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 The investment, spending, and expense-fee policies associated with our endowment are designed with the goal assets. Planned gifts make significant funding available to the university each year, providing crucial support of enabling endowment balances to increase at the rate of inflation over the long term, after all fees and spend- during this challenging fiscal period. ing distributions. WFAA currently 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 is Donors can direct their planned gifts to accomplish many goals. Some deferred gifts are unrestricted, allowing reviewed annually by the board of directors. 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 The table on this page shows the total-return figures, and the circular chart shows the asset allocation of WFAA’s support. Some deferred gifts are intended to be used outright, while others establish permanently endowed endowment fund. The endowment fund asset-allocation targets have been established to promote overall port- funds. When deciding on a designation for a planned gift, donors should consider the delay inherent in planned folio diversification while providing a return necessary to meet the investment objectives. 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 WFAA’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 Investment Performance* your needs, identify the correct legal names of campus departments and units, and provide language that will Asset Allocation as of Annualized results carry out your wishes. June 30, 2017

All individuals with a planned gift in place for the university are welcomed into the Wisconsin Legacy Society — 16.4% 6/17 Private Equity our way of thanking those who have made this philanthropic commitment. No minimum gift is required, and any information shared with us is nonbinding. Current membership includes more than 1,700 individuals. 1 year 14.2% 2.6% 59.6% Real Estate 3 years 4.3% Global Public 19.5% 5 years 8.4% Equity Global Fixed Income 2016–17 Number of Gifts Received 10 years 4.4% 0.3% $1,007,227 *Net of external manager fees Cash/Other Gift Annuities JULY 2016 TO JUNE 2017 1.6% 16Opportunistic+22012+59I Alpha $1,383,313 Bequests, trusts, and insurance 95 Endowment Fund Assets 2013–17 Charitable $2,746,470,216 as of June 30, 2017 Remainder Trusts New gift annuities (including deferred) 23 Charitable remainder trusts 7 $3,000 The endowment fund $19,843,497 has grown from less than Bequests, Trusts, and TOTAL DEFERRED GIFTS 125 $2,500 $2 billion in value on June 30, Insurance $2,000 2013, to more than $2.7 billion as of June 30, 2017, as reflected 5+689H $1,500 in this graph.

MILLIONS $1,000

$500

$0 2013 2014 2015 2016 2017 THANK

FOR SUPPORTING THE WISCONSIN FOUNDATION AND ALUMNI ASSOCIATION IN OUR YOUEFFORTS TO ADVANCE THE MISSION OF UW–MADISON.

WE’RE PROUD OF ALL THAT WFAA thanks these photographers for Wisconsin Foundation and YOU HELPED US ACCOMPLISH images on the following pages: Alumni Association Andy Manis: Cover, 2, 3, 21, 30 1848 University Avenue Madison, WI 53726-4090 IN 2016–17, AND WE LOOK Jeff Miller, University Communications: 4, 7, 14, 17, 29 supportuw.org FORWARD TO MAKING THE Joseph Leute: 8, 13 (2) uwalumni.com Sarah Maughan: 18, 19 ©2018 Wisconsin Foundation and UNIVERSITY STRONGER FOR C&N Photography: 25 Alumni Association Paul Newby: 25 Designers: Christie Evenson, YEARS TO COME. Bryce Richter, University Communications: Alina Ruppel 28, 32 Editorial Staff: John Allen, David Golden, John Baron, Debbi Peterson, Paula Apfelbach, Niki Denison, Falicia Hines, ON, WISCONSIN! Chelsea Schlecht, Stephanie Awe