Lilly Endowment Inc. Annual Report 1998 About Li l ly Endowm e n t

Li l l y Endowment Inc. is an Indianapolis- based private philanthropic foundation created in 1937 by three members of the Lilly family – J. K. Li l l y Sr. and sons J. K. Jr . and Eli – through gifts of stock in their pharmaceutical bus i n e s s , Eli Lilly and Company. Office r s In keeping with the wishes of the Thomas H. La k e three fou n d e rs , Li l l y Endowment Ho n o r a r y Chairman exists to support the causes of religion, education and community devel o p m e n t . Bo a r d of Directo r s Thomas M. Lo f t o n Gifts of stock in Eli Lilly and Company Ch a i r m a n remain the financial bedrock of the Thomas H. La k e En d ow m e n t . We are, ho weve r , a separat e Ho n o r a r y Chairman N. Cl a y Robbi n s entity from the company, with a President distinct gover ning board, staff and location. Thomas M. Lo f t o n The Endowment affords special Ch a i r m a n Da vid D. Bi b e r emphasis to projects that benefit you n g Se c r e t a r y and Tre a s u r e r people and that promote leadership Otis R. Bo wen education and financial self-sufficiency in Cr aig Dykstra the nonprofit , ch a ri t a b le sector. William G. E n ri g h t Vice President The Lilly family’ s foremost prio r ity Re l i g i o n was to help the people of their city and Ea r l B. He r r Jr. state build a better life. Although William M. Go o d w i n the Endowment also supports effor ts of Byron P. Ho l l e t t Vice President national significance and an occasional Community Development in t e r national project, we remain Eli Lilly II pri m a ri l y committed to our hometown , Ralph E. Lu n d g r e n In d i a n a p o l i s , and home state, In d i a n a . Ma r y K. Li s h e r Vice President Ed u c a t i o n Eugene F. Ra t l i f f

He r man B Wel l s Li l l y Endowment Inc. An n ual Report 199 8

PPERSEVERERSEVERAANNCCEE

Exe c u t i v e Message 2 With a constancy that has marked its 61 years, Lilly Endowment has persevered in its grantmaking to improve the communities of its state, to provide avenues for improved educational opportunities, and to promote the development of effective ministers and vibrant congregations.

Finances & Grantmaking 48

Financial Statements 50

Co m m unity Development Division Grants 56 Years of practice go into making fine Education Division & Youth Programming Grants 69 musicians, such as Anthony Booker III Religion Division & Leadership Education Committee Grants 75 who performed in th e 1998 Quadren n i a l Guidelines & Proc e d u re s 82 Violin Competition of Indianapolis. The Endowment has supported the competition since it began in 1982. 4 L i l ly Endowment A n nual Report

EXECUT I VE MES SAGE

1998 was a very good year at Lilly Endowment as we continued to support those causes that have occupied our attention for most of our 61 years.

We continued to address old – maybe ageless – issues, but their

urgency is constant: how to build effective communities of caring citizens; how

best to educate young people for their complex futures; how to ensure

vibrant congregations led by thoughtful and effective ministers;

how to help Indiana citizens make the personal and professional

choices that will make the state “the best it can be” in the future.

There are no quick fixes for these issues, and they will not go away.

It makes little sense to address them unless one is prepared for the long haul.

We are. L i l ly Endowment A n nual Repor t 5

n addressing these issues, we find that I there is never a shortage of good ideas. Our charge is to find the most promising ideas and the most able persons to carry out the initiatives and projects that we be lieve will benefit our fellow citizens and advance our aims. Our course was charted by our founders, who thought that the Endowment should concern itself with issues of community devel- opment, education and religion. And they (opposite) thought their home city and state, which “had With a GIFT been so good to them,” should be the primary III grant, the beneficiaries of their philanthropic endeavors. Children’s In nearly every instance, we have set goals Learning Center and parameters for our initiatives. Invariably, of Posey County our approach stresses the local, individual in Mount choices of those closest to the situations. We Vernon, Ind., count on them to find the creative, doable added classrooms paths to the solutions. to raise capacity to 194 children. Re lying on dre ame r s to purchase a collection that would establish We try to take a serious, earnest approach — the IMA in the forefront of museums in the (above) taking all pertinent aspects of an issue into world with Post-Impressionist collections. The Stained-glass account, talking to the people who can make Josefowitz collection, owned by Swiss busi- window in the difference, sometimes ensuring that dis- nessman and collector Samuel Josefowitz, was Indianapolis parate groups with common goals have purchased with the help of a matching grant church’s chapel opportunities to get together to accomplish from the Endowment. offers quietude their important purposes. And while grant- The grant was made because the collec- for reflection and making is a serious endeavor, it is often very t i o n is acknowledged great art – but also prayer. enjoyable, too – especially when the realization because having the collection is a “point of a dream is manifested in the sheer delight of of ex c e l l e n c e ” for Indianapolis. The exciting the dreamers. collection – including three works by Pau l Take, for instance, the situation at the Gauguin – will attract art lovers to Indianapoli s , Indianapolis Museum of Art (IMA), which is a superb museum with excellent collections, including its fine Post-Impressionist paint- ings. Thanks to the dreams and diligence of its top staff, an opportunity arose for the museum 6 L i l ly Endowment A n nual Repor t

and we believe that once they are here, they will take advantage of the city’s many other impressive cultural amenities. It also was downright fun to watch the joy and excitement of the museum staff (and the city’s arts community) as the paintings and prints arrived at the museum – and to anticipate the enjoy- ment to come for many audiences for many years. President ThomasW. Cole The gift of encourage m e n t Jr., president of We also have been pleased and gratified with the nonstop performance of In- Clark Atlanta diana’s community foundations, most of which have been seeded by the University, Endowment’s GIFT (Giving Indiana Funds for Tomorrow) intiative. During stands beside the the past eight years and through four phases, the Endowment has seen Indi- original plaque ana’s community foundations grow from fewer than a dozen to more than 90. that marks the In these eight years, the Endowment allocated $345 million and paid out 1865 founding $1 16.6 million to support these community foundations, help them get off the of Atlanta ground, and find their wings. The aggregate value of the assets of Indiana’s University. The community foundations at the end of 1998 exceeded $700 million. school merged Under GIFT III, announced last year, and GIFT IV, announced this year, with Clark community foundations match Endowment funds for their own purposes (en- College in 1988. dowment, operations, grantmaking and so forth), or they recommend worthy projects for direct Endowment grants – or they choose to do both. With GIFT III, which offered $1 million to each county, we saw a burst of requests from around the state – all deemed worthy projects in their own communities. Plans ranged from restoring one-room school- houses to building day-care centers, from buying firetrucks for volunteer fire depart- ments to refurbishing community theaters. The ideas for all these projects welled up from the communities themselves; local cit- izens decided what philanthropic projects would best benefit their community. The Endowment always has been committed to helping our home state, but it has been difficult for us, sitting in Indianapolis, to determine the most worthy projects in towns and counties all over Indiana. Wit h the GIFT process of community involvement and endorsement of local projects by the local com- mu n i t y foundations, we now are assured that Indiana citizens have had a say in the grantmaking process. We are convinced that the community-building process that has characterized the GIFT program will continue. The GIFT IV program makes available $1 .5 million for each Indiana county, with an additional $1 million for community projects in the 15 most populous counties. Some $300,000 of that $1.5 million was reserved for a matching-grant program to encourage each foundation to improve its operations and bu s i ness procedures, and thereby advance its professionalism, accountability and stature in its community. ing to develop and solidify their unique ni c h e s During a Black Another close-to-home problem that af- in the world of higher education. History Month fects all cities is the problem of the homeless. We were pleased to be able to grant $41.7 convocation, stu- For several years through several different million to UNCF to support a major grant dents at Xavier grants, the Endowment has sought ways to program to strengthen its member institutions. University (also bring concerned groups together to define the After organizing an advisory committee, UNCF a UNCF school) issues and work on the solutions for Indi- in 1998 awarded nine grants of roughly $1 mil- wear caps and anapolis. Among many developments, one lion each. We were delighted to watch those gowns as a particularly gratifying solution was the open- grants at work on these campuses, and we ea- reminder of their ing – or reopening – of the Blue Triangle, gerly anticipate the next round of awards. personal goals an old, long-abandoned downtown building, We have not been so delighted with the and to motivate which was renovated as the city’s first large- status of our own state’s level of educational at- underclassmen. scale, single-room occupancy facility for low- tainment. The Endowment has for decades Seniors tradition- and very-low-income individuals. The project supported the private and public colleges and ally wear caps brought together a developer and Goodwill universities in Indiana, and we have been proud and gowns to Industries in an outstanding, cooperative ef- of their accomplishments, their scholarship and all convocations fort to address this human need. their students. In recent years, however, the during the year. shocking fact that Indiana ranks 48th out of S u p p o rting a proud tradition the 50 states in the percentage of adults with a For 54 years, the Endowment has persevered baccalaureate degree has galvanized our efforts in its support of independent historically black to address this alarming situation. We are well colleges and universities in this country. The aware that this is not a new problem for Indi- Endowment has supported the United Negro ana, that its roots are deep and complex and College Fund (UNCF) since its founding in have origins in history, economics and culture. 1944. We think that these schools – many We also know that no single institution by itse l f started in the years following the Civil War – continue to play a vital role in American higher education. There are nearly 40 of these colleges, se r ving almost 60,000 students. They are old schools with proud traditions, and they are tr y- 8 L i l ly Endowment A n nual R epor t

can correct the situation. It will take the com- bined forces and serious commitment of many individuals and institutions in Indiana’s pub- lic and private sectors. Most of our attention has been directed to Indiana institutions of higher education, encouraging their efforts to see that more In- diana students go to college, that they stay in college and earn their baccalaureate degree, and that they are then able to find productive work in Indiana. To those ends, the Endowment in 1998 awarded $90 million in capital grants to Indiana private colleges and $21.9 million to public and private colleges and universities to develop programs to help prepare youngsters (right) After- for academic success. We also continued our school programs at support of the Lilly Endowment Community labor force was engaged in these occupations the Pontiac Youth Scholarship Program, doubling the number of during the years 199 2 - 19 9 7 , a share that is nearly Center in Fort Indiana recipients to 240 who will receive full- four percentage points lower than that of any Wayne, Ind., tuition, four-year scholarships to Indiana colleges other Great Lakes state for the same period.” concentrate exclu- and universities. Our 1998 grants in this arena The Endowment certainly is not alone in sively on academics made our total commitment to this educa- its distress at the situation, which indeed – if for first-graders to tional attainment effort nearly $223 million not successfully addressed – signals a dismal high school seniors. since 199 6 . future for our state. It has long been apparent that the occupations and careers of the future Keeping our leaders (opposite) will require a highly educated workforce. Indi- Vibrant congrega- One of our 1997 grants – to the Indiana Fiscal ana’s challenge is to make the connections, tions require the Policy Institute – produced a report on “hu- create the synergies and support the creativity active participation man capital retention” in Indiana, and, among of partnerships and enterprises that will create of all ages. many findings, one especially alarming statis- the jobs to attract and keep these professionals tic emerged: Indiana ranks 50th in the states in in Indiana. the proportion of our labor force in profes- One step the Endowment took this year sional and specialty occupations. These are the was to make a $4.9 million grant to Purdue doctors and teachers, computer experts, engi- University for its Center for Education and neers, high-technology workers. The report Research in Information Assurance and Security found that “…only 9.7 percent of the Indiana (CERIAS). Directed by internationally noted computer scientist Eugene Spafford, CERIAS is the world’s first comprehensive information- security center. It is a multidisciplinary orga- nization that will tackle complex issues related L i l ly Endowment A n nual Report 9 to information security from a number of perspectives – includ- in g economic and international espionage, sabotage, terrorism and vandalism. CERIAS has the potential to create professional, With the changing demographics of the high-tech economic opportunities in Indiana, a potential the co u n t r y and its congregations, theological Endowment finds especially attractive. Also, CERIAS will co- schools and seminaries face a different land- operate with the Network Operations Center in Indianapolis, scape from the one they faced in past administered by Indiana Uni v e r s i t y , for Abilene Network – a generations when their students arrived just mu l t i u n i v e r s i t y , national, wide-area network. after their undergraduate days. These students CERIAS is an example of the kind of strategic effort that had a commitment to the ministry nurtured by will be necessary to attack this problem of the dearth of pro- years of involvement in their congregations, fessional and specialty job opportunities in Indiana. We hope church camps and youth programs and, per- there are many more examples – soon. haps, by four years of a liberal arts education While helping build participatory citizenship and the in a church-related college. The Endowment vo l u n t a r y spirit through local community foundations and joins many church leaders in a shared convic- tr ying to build a more educated populace through a variety of tion that proactive new programs need to be educational grants, we have simultaneously been concerned developed to enable the current generation of with building vital congregations and finding strong, effective young people to see the Christian ministry as ministers to lead them. an attractive vocational possibility for them- selves and to get a clear picture of what a Faith in the next ge n e r a t i o n wonderful profession it can be. Theological education always has been a concern at the En- Some theology schools and seminaries are dowment, but this year we were able to award $55 million to addressing this need by developing exciting 58 theological schools in two programs – one to improve their programs to introduce high school-aged young abilities to attract and educate outstanding pastors for local people to the full riches of Christian theology congregations, the other to enable them to engage high school and to the challenge and excitement of a wide students in programs that will give them a “taste of theological range of the church’s ministries. Some of the in q u i r y” and a religious context for making vocational choices. young people whose lives are transformed by The resulting grants represent the largest single influx of fund- these experiences will choose pastoral ministry. ing for seminaries in the history of theological education. Others will choose other professions, but now It is obvious that to build and sustain healthy congrega- with a difference – they will see their future tions, churches need ministers who can perform the myriad responsibilities demanded of them in today’s world, while being grounded in the- ology that gives rich meaning and spiritual purpose to everything they do. Teaching new candidates for the ministry in ways that foster practical, theological and pastoral wisdom is a daunting challenge facing theological schools. 1 0 L i l ly Endowment A n nual Repor t

Year in and year out, United Way perseveres in its efforts to make our community more caring and humane. Of course, this constant pursuit of the Endowment’s long- work not just as a job, but as a way of fulfilling standing interests would not have been possible without the their vocations as Christian men and women. foresight – and the perseverance – of our founders, who, with Several theology schools have proposed start- their gifts of stock in Eli Lilly and Company, began a modest ing “summer theology institutes” modeled on endowment in 193 7 . With additional gifts of stock through the successful institute at Candler School of 197 1, that legacy grew until, by the end of 1998, it represented Theology at Emory Uni v e r s i t y . a value of $15.8 billion. Such a development is both humbling It is clear that the schools recognize the and liberating – humbling because the responsibility to invest seriousness of the situation. In some cases, they wisely in good people and programs is great, and liberating be- may be going out on a limb – stretching facul- cause it gives us the ability to persist in those philanthropic ty and staff resources to begin a program for efforts that the founders considered the Endowment’s work. which there is, after all, no guarantee of suc- It is this heritage that we value and try to pass on every day. cess. But they are willing to try. We think it is And here, we must note with sadness the death in January worth their efforts. of 1999 of one of this foundation’s leaders, Byron P. Hollett, who se r ved on our Board of Directors for 30 years. He was a citizen A heritage of perseve r a n c e and gentleman of the first order whose friendship with Eli Li l l y Fi n a l l y , we could not leave the theme of “pe r s e - strengthened his – and our – stewardship of Lilly Endowment. ve r a n c e ” without mentioning our $50 million Besides our own sense of constancy, we admire and marve l grant to the United Way of Central Indiana at the perseverance of our grantees. They are the ones with the (U W CI). The grant was made to build the dreams, the visions, the stick-to-itiveness, the energy and the Forever Fund, the endowment fund of UWCI , creativity to pursue their aims. We are pleased to be able to help and it was the largest single grant ever made by them accomplish their goals and, in so doing, we believe that the Endowment (and the largest ever received we honor the intent and values of our founders. by UWCI). The Endowment’s precedent was set early – very early. The Endowment’s first grant, for $10,500, was made in 1937 to the Com- munity Chest, forerunner of the United Way . Thomas H. Lake, Ho n o r a r y Chairman of the Board The 1998 grant will endow UWCI’s fund- raising costs from income that the fund generates, resulting in more money for com- munity services. Also, UWCI has committed Thomas M. Lofton, Chairman of the Board to establish a special fund that United Way member agencies can tap for emergencies. Ob- vi o u s l y , the Endowment always has considered the United Way to be the premier human-ser- N. Clay Robbins, Pr e s i d e n t vice organization in central Indiana – and the epitome of a community-directed organizati o n . COMMUNITY DEVELOPMENT

GGIVING I F TINDIANA FUNDS FOR TO M O R ROW… AND FOR TO DAY

More than 30 years after the stained-glass skylight in his hometown library was Rensselaer’s Carnegie Center dismantled and sold to collectors, Bob Lewis started life c.1905 as was determined to track down the a Carnegie Library. Community founda- long-lost artwork and have it photographed. tion director Linda Reiners holds one of His extensive telephone investigation the original stained- glass windows. Plans took him north to Michigan and east to are for the window, along with replicas Pennsylvania and yielded one 3 1/2-foot glass of eight others, to form the skylight square — donated by its owner — and photos of the renovated building. of eight similar sections. 1 2 L i l ly Endowment A n nual Repor t

(left) A GIFT III grant of $350,000 will “This building was too important to lose,” help construct a says Todd A. Zeiger, director of the Northern new building for Regional Office for Historic Landmarks Fou n - Rensselaer Child dation of Indiana, the group that agreed to Care, which also hold the deed and protect the building from will house the demolition five years ago. But the Landmarks Boys and Girls Foundation and the Carnegie Center’s tenants Club. Rebecca could afford only minimum upkeep. It took an A. Garrett, exec- endorsement from the Jasper Foundation to re- utive director of ceive a $375,000 grant from Lilly Endowment to the child-care ensure the kind of restoration effort that Zeiger center, leads a estimates will add “at least 50 years” to the build- class in current ing’s life. When work is completed in June 199 9 , church quarters, the Carnegie Center will emerge as the polished while (below) gem that Lewis recalls from his childhood, sky- youngsters share light and all. a storybook.

“ hey’re scattered all over the place,” Customizing a community plan Tsays Lewis, a retired businessman. The project under way in downtown Rensse- “P eople have mounted them in the out- laer is among 195 projects launched in 1998 as side walls of their homes and aren’t likely part of Phase III of the Endowment’s GIFT to give them back.” initiative (Giving Indiana Funds for Tom o r - Using Lewis’s pictures to guide them, row). GIFT started eight years ago when there three northern Indiana artists are recreating were fewer than a dozen viable community the glass panels as part of an effort to restore the building to its original beauty. Almost a hundred years old and still structurally sound, the property now serves as home to three civic organizations and is known as the Carnegie Center of Rensselaer, Ind. The building originally, of course, was a Ca r n e g i e Li b r a r y, one of 2,509 such libraries built throughout the English-speaking world in the late 19th and early 20th centuries by the philanthropist Andrew Carnegie. More Carnegie Libraries, 155, were built in Indiana than in any other state . L i l ly Endowment A n nual Repor t 1 3

A GIFT III grant foundations in the state with total assets of (or all of it) be used for local projects. There enabled the Central about $100 million. With a series of matching would be no matching requirements for the Perry VolunteerFire grant programs, the first two phases of GIFT community projects grants, which would be Department in encouraged the establishment and develop- made directly by the Endowment. Leopold, Ind., tobuy ment of community foundations throughout Third, it could select a combination of the a firetruckandequip- the state. Today more than 90 community first and second options. ment to sharewiththe foundations dot Indiana’s landscape, with a Of the 89 counties participating in GIFT Anderson Township total asset value of more than $700 million. III, 39 decided to match the entire $1 million department. On a With the third phase of GIFT, each of for their own uses; one (Decatur County) di - bluff overlooking the the state’s community foundations was offered vided its entire $1 million among local projects, Ohio River, vo l u n t e e r s $1 million and options for its use. and 49 elected to combine the two options. posewith equipment First, it could select the “co m m u n i t y that will mean fo u n da t i o n op t i o n , ” which would allow it to better service for de d i c a t e all or any part of the $1 million for their rural county. its own uses, such as building its endowment, operating funds, or making community grants. Smaller version of a The community foundation would need to fire engine attracts match this amount, dollar for dollar. playful attention of Second, it could select the “co m m u n i t y girls at the Children’s projects option,” which would allow it to rec- Learning Center in ommend that any portion of the $1 million Mount Vernon. 1 4 L i l ly Endowment A n nual Repor t

By the end of 1998, the Endowment had allo- cated $345 million for all phases of GIFT and had paid out $116.6 million. The unusual aspect of this third phase was the freedom it gave each foundation to de- sign a plan that could simultaneously boost its financial stability and support community ini- tiatives. Boards of directors huddled in private sessions, conducted public forums, divided (right) The into committees and evaluated proposals sub- Greene County mitted by local organizations. The results were Humane Society unique: no two plans were identical. – and its occu- pants – got a lift Immediate impact from a GIFT III “Our foundation is less than two years old,” ex- grant. Old, home- plains Larry Carlson, executive director of the made kennels were Vermillion County Community Fou n d a t i o n replaced and a on Indiana’s western boundary. “So our board purchased a much-needed firetruck; a Clinton new-but-used wanted to make an immediate impact on the day-care center began renovating its facilities, minivan helps community to help people understand what and the area’s humane society drew up blue- with rescue. the foundation is trying to do.” prints for an animal shelter that would serve With that goal in mind, board members Parke and Vermillion counties. Boys at Mount designated $200,000 for the foundation’s en- “Right now the closest shelter is in Clay Vernon center take dowment and endorsed $800,000 in grants to Co u n t y , 50 minutes away,” says Pat Tryon, vice advantage of support local projects. The new foundation at- president of the Par k e - Vermillion Humane recess. tracted quick attention when it assisted several Society board of directors. Whenever problems projects within the county to move from wish arise with abandoned or neglected animals, res- list to reality. Among them, the town of Cayuga idents and law enforcement officers call Tryon, the only humane society board mem- ber who doesn’t work fulltime outside the home. The construction of an animal shelter, made possible by a $200,000 Endowment grant endorsed by the community foundation, means she will be able to direct the calls — as many as 30 a day — to a fully equipped facility close to home. “Finally we’ll have a place to take care of our animals locally,” she says. L i l ly Endowment A n nual Repor t 1 5

Pursuing pythons and Pygmalion Greene County Foundation leaders showed we needed $15,000 to begin repairs. In no time similar support for their county’s humane so- flat, $25,000 poured in.” ciety by recommending a $73,500 Endowment But even enthusiastic residents couldn’t grant to fill the gap between a $90,000 budget un d e r write the major improvements needed by and a $35,000 income. “We cover the entire the aging facility. The community foundation co u n t y , and Greene County is huge,” empha- endorsed a proposal of $271,500 which was sizes Linda Fel k e r , president of the humane awarded by the Endowment to address the so c i e t y . It is also a rural community, and Fel k - structural problems, expanding the building’s er and her colleagues have answered calls to use beyond the summer season and ensuring rescue everything from a great horned owl to Bloomfield (Ind.) an abandoned pet python. High School stu- Unlike its counterpart in Vermillion Coun- dents strut their ty , the Greene County Humane Society had a stuff for a pro- shelter but needed a vehicle to transport ani- duction of “Guys mals and pick up supplies. The GIFT III grant and Dolls” at the helped the society secure a used minivan and Shawnee Summer provided additional funds to replace the shel- Theatre. A GIFT ter’s homemade kennels. III grant will “Our community foundation is new, our update the facili- county’s population is small, and we’re just ties and ensure beginning to identify potential donors,” says year-round use for Ma r y Aiken, executive director of the Greene the theater. County Foundation in south-central Indiana. Aiken’s board chose a conservative approach to the GIFT III options. It launched a cam- paign to raise $250,000 for its endowment and asked that the remaining $750,000 be dis- tributed among organizations that Aiken describes as “highly regarded and in need of help with major pr o j e c t s . ” One project in- volved the Shawnee Summer Theatre, home to a professional summer stock co m p a n y , a dra- ma internship program for teens, a children’s theater and an art gallery. “The theater enjoys good support,” says Aiken, who also serves as president of the the- ater board. “A couple of years ago when our roof was leaking, we told the community that 1 6 L i l ly E n d owment A n nual Repor t

the continuation of en t e r t a i n - me n t and educational programs for all ages.

Giving teens their space ming. “I can see a co-ed volleyball league and a Programs to benefit youth also teen board in the future,” predicts Kelly Cobb, drew support from Lawrence executive director of the Girls Club. She is County residents who gath- pleased that the new building will enable her to ered to voice their opinions set aside special hours for older youth who on the use of GIFT III funds. want to play basketball or enroll in workshops Ev e r y organization on record with their friends. in the county received an in- Youngsters at vitation to participate in the open forums and the Thornton make a presentation. “People voted according Memorial Boys to the projects they felt would most help the Club and the ar e a , ” says Marge Lee, president of the com- Limestone Girls munity foundation board of directors. Club in Bedford, In the end, five projects emerged, and Ind., will see three were geared to youth. The largest involved improved indoor the Limestone Girls Club, an organization and outdoor facili- whose membership has more than doubled in ties as a result of the past eight years. The $150,000 grant will GIFT III grants help build a 27,000-square-foot facility within from the walking distance of the Thornton Memorial Endowment. Boys Club, another grant recipient. The Boys Club received $75,000 from the Endowment for a youth park that will consoli- date the club’s outdoor programs and develop acreage on the north side of Bedford. The proximity of the clubs’ main buildings will increase the likelihood of joint program- “Most of our members are between the ages of 7 and 12. We lose them after they get into junior high school because we’re operating at capacity and can’t add anything new,” she says. “With more space, we hope to offer after- hours activities so teenagers won’t constantly have little ones running around and hounding them to play.” L i l ly Endowment A n nual R epor t 1 7

in the United States, fell into disrepair in the 1960s and bare- ly escaped attempts to tear them do w n . Efforts by Old Rockport, a civic organization formed in (opposite) 197 7 , led to the village’s desig- Circulation at the nation as a state and national 61-year-old historic register site. Odon-Winkelpleck Now the group will over- Public Library se e a meticulous renovation effort has quadrupled in that local historians hope will ignite interest in Private work on public pro j e c t s the past three the Abraham Lincoln-Spencer County connec- years. A A lack of space was also the problem at the tion. The $150,000 GIFT III award will go a $70,000 GIFT Od o n - Winkelpleck Public Library, built as long way in rebuilding cabins, shoring up foun- III grant will a Works Progress Administration (WPA) dations and replacing tin roofs with clapboard. help with an project in the 1930s to house 7,000 books. “This is the first time we’ve had enough addition to the Circulation has quadrupled in the past three money to actually make a difference,” says Lila library, which years, the book collection has expanded to Daniel, president of the Old Rockport board of enjoys a large 14,000, and the library staff has squeezed in a Amish clientele. computer station and video section. (above) Sandra When the library unveiled plans for Armstrong, a building extension and then received a librarian, will $70,000 GIFT III grant from the Endow- have more space ment (it had been endorsed by the Daviess for books – and County Foundation), residents responded readers. with pledges that more than equaled the grant amount. “The new wing will be paid After a $400,000 for before we break ground,” says assistant li- reconstruction brarian Sandra Armstrong. project, Lincoln A second WPA project, Spencer County’s directors. Eventually the village will have a staff Pioneer Village in Lincoln Pioneer Village, also will undergo of interpreters who will give visitors a sense of Spencer County major restoration with the help of a GIFT pioneer life as it was from 1807 to 1830. “Chil- will again become III grant. The village re-creates the southern dren will be able to enter the John Pitcher law a working village Indiana community that was home to Amer- office and hear Pitcher talk about how he saw for tourists. ica’s 16th president during his boyhood years enough potential in young Abraham Lincoln to in the state. lend him law books and teach him about the law.” The 14 log structures, which make up one of the first living-history museums built jects, or blend the options Members of the U nveiling GIFT IV into hybrid plans that fi t Fortnightly Club of With the positive results of GIFT III report- the communities theyse rv e . the Gosport (Ind.) ed around the state, the Endowment announced Foundations in several of History Museum in November a fourth phase of the GIFT ini- the more heavily po p u l a t - move artifacts from tiative that will involve even more choices for ed counties will be able to their old quarters in a participating community foundations. Th i s endorse an additional $1 bank basement to newest round of grantmaking allows $1.5 mil- million in grants for community projects to their new home in a lion for each county, $300,000 of which is a benefit local residents. vacated church build- matching grant program to improve operations. Phase IV represents an allocation of $153 ing. (far left) Sue As in GI F T III, each foundation may use million, which brings the total investment of Trotman helps clean the rest, $1.2 million, in a matching program the Endowment in the GIFT initiative to the "10 O’Clock for its own uses, recommend community pro- $345 million. More important, it challenges Line" historical mark- community foundations to improve their op- er, commemorating a erating practices and aim for professionalism, 19th century agree- to look for creative new ways to encourage ment with four philanthropy and to build lasting legacies in Indian tribes. their hometowns. Artifacts such as the marker and examples of handmade clothing will find ample space in the new museum. L i l ly Endowment A n nual Repor t 1 9

HOMELESSNESS PREVENTION & INTERV E N T I O N MOVIN G TOWARD THE MAIN STREAM

ne of the early lessons that housing O developer Frank Hagaman learned when he joined the effort to reduce home- ordinate services in such a way that they are lessness in Indianapolis was this: Make available but not redundant and that agencies no assumptions. “At the first community collaborate but do not compete with each other. meeting I attended, a woman stood up “Our ‘Continuum of Care’ plan deals with and addressed the group,” recalls Hagaman. in t e r vention, and our L i n k a g e s plan focuses on “She was articulate, was wearing a business homelessness prevention,” explains Dan Shep- suit, and I assumed that she represented a le y , executive director of the Coalition for local social service agency. It turned out Homelessness Intervention and Prevention that she had recently gone through a di- (C HIP), an organization founded in 1996 with vorce and had lost everything. She and Lilly Endowment support. “Put those two to- her children were on the street, home- ge t h e r , and we have an overall strategy.” The renovated less, until they moved into a shelter.” Blue Triangle The revelation underscored for Hagaman building in down- and his colleagues that the causes of homeless- town Indianapolis ness are as diverse as its victims, and the solutions offers 96 housing are as complex as the problem. units, job train- Also, homelessness intervention and pre- ing, counseling vention are separate-but-related issues that and other services require separate-but-related remedies. Providing in a “continuum emergency shelter for persons like the divorced of care.” mother and her family is only one part of a community’s response to the dilemma. Other parts include developing transitional housing – Hagaman’s area of expertise – and main- taining affordable, permanent living units. Besides ensuring a progression of shelter options, a comprehensive plan must offer education an d training opportunities. The overall goal is to help persons move toward independence. The challenge is to co- 2 0 L i l ly Endowment A n nual Repor t

Opting for a systemic ap p ro a c h The Endowment’s multifaceted approach to the homelessness issue began four years ago with an award of $17,500 to United Way of Central Indiana (UWCI) to design a compre- hensive prevention plan in conjunction with CHI P . The report that emerged, L i n k a g e s : A Strategy for Housing and Employment, es t i m a t e d that 7,000 to 9,000 persons experience home- lessness in Marion County during any given ye a r . Another 22,000 families are at risk of los- ing their homes because their housing costs equal more than half of their income. Consid- A resident con- ering that each household may contain several structs and paints children, “those numbers add up to a lot of small model people who are affected or are at risk,” says homes in her Sh e p l e y . “Most of them live and work in Cen- room at the Blue ter Tow n s h i p . ” P roviding shelter and more Triangle while Li n k a g e s urged the expansion of homeless Susan Ad d i n g t o n , se r vices to include a range of housing and job- During 1998 the Endowment made significant a social worker, training options. The document also grants to the Homelessness Continuum Tar - stops by to visit. identified the Homeless Network as coordina- geted Initiative Fund of UWCI ($2,717,0 0 0 ) , tor of efforts related to the broad issue. One Goodwill Industries of Central Indiana year later, the all-volunteer Network disband- ($ 8 17,396) and Horizon House ($750,000) to ed and reconfigured as CHIP with Shepley as address homelessness issues. The awards followed its first staff member. back- to-back grants totaling $1.25 million giv- “P eople have rallied around CHIP because en in 1996 and 1997 to rehabilitate Wheeler it addresses homelessness prevention as well as Mi s s i o n , an overnight shelter for men in in t e rv e n t i o n , ” says Shepley. “CHIP wants to downtown Indianapolis. Whereas the Wheel- know how we can keep people from becoming er Mission project helps meet emergency homeless. We have homeless shelters and we housing needs, the more recent grants will have public housing, but we don’t have steps in help develop, test and implement programs between. If we focus solely on emergency shel- that lead people to long-term self-sufficiency. te r , we just create warehousing space.” Part of the United Way grant will be used to get an accurate count of the homeless so CHIP will have a baseline to measure success and determine the services that are most needed. L i l ly Endowment A n nual Repor t 2 1

“With the implementation of an electronic network we hope to keep track of the assistance given to clients so we can move them forwa r d Unlike the Blue Triangle, which offers without a lot of repetition. The network will transitional housing, Horizon House is a day improve communication between agencies,” center that serves 80 to 120 homeless individuals says Shepley. and families by providing a place for them to get off the streets during daytime hours. Visi- One-stop live and learn tors can do laundry, take showers, make phone The grant to Goodwill Industries will add an calls and gain access to pertinent information. education and training component called the Created in 198 7 , the center was located on Career Academy inside the newly renovated the near east side of Indianapolis until its Blue Triangle building. The once-abandoned board decided to look for roomier quarters. facility in downtown Indianapolis has been The Endowment grant will help the agency transformed into 96 housing units. secure adequate space so it can continue to pr o - The academy will teach residents and vide shelter, drug- and alcohol-abuse counseling interested persons from the neighborhood a and assistance in preparing for jobs. variety of technical and life skills. Available ser- Shepley notes that “co n t i n u u m ” is the key vices will include job training and placement, word as agencies identify and fulfill their roles counseling, health care, wellness education, vo- in the effort to move clients out of the care sys- cational assessment and evaluation. A goal is to tem and into the mainstream. Proof of a job place 935 persons in jobs within the next three well done is not a shelter operating at capacity years. Jobs must pay at least $6.50 an hour; 75 levels, but a shelter that works its way out percent of them should provide health benefits. of existence because it has put clients in touch Goodwill used knowledgeable housing ex- with programs that lead to independence. perts in completing the project, including “Success is seeing someone once,” says Hagaman’s Partners in Housing Development Sh e p l e y , “not night after night, year after year, Corp. Hagaman explains his company’s role: whenever it’s cold.” “Our corporation is named ‘Partners’ because we realized that we couldn’t do everything. We know that jobs are abundant in Indianapolis and that the city has people who are unem- ployed or underemployed. We wanted to connect the people with the jobs.” 2 2 L i l ly Endowment A n nual Repor t

T H E A RT O F T H E D E A L PURSUING GAUGUIN

OR 15 YE A R S , Ellen Lee, chief curator at the Indianapolis Museum of Art F(IMA), had searched for a single, important painting from the Pon t - A ven Sc h o o l to add to the IMA’s permanent collection. “Finding one work that summarizes an pivotal movement is not easy,” admits Lee, “and sometimes when I would find something, we either lacked sufficient funds to purchase it or the piece wasn’t quite good enough.” Her perseverance was rewarded late in 1998 when a grant and a gift led to the windfall ac- quisition of 17 paintings and 84 prints by Paul Gauguin and some of the artists who gathered around him in the French village of Pon t - A ven near Brittany’s Atlantic coast. “This windfall ful- filled my most optimistic expectation for developing that part of our collection,” says Lee. The acquisition is especially significant because the Pon t - A ven works combine with the IMA’s collection of Neo-Impressionism to provide a unique and comprehensive look at the two leading movements of the Post-Impressionist era: Neo-Impressionism, headed by Georges Seura t , and the Pon t - A ven School, led by Gauguin. L i l ly Endowment A n nual Repor t 2 3

um in America. The only comparable collection in the world is at the Musee d’Orsay in Par i s . ” “If you think of the four artists who be- Public interest in the works is high. A 199 4 came the grandfathers of modernism — Pau l traveling exhibition called “Gauguin and the Gauguin, Georges Seurat, Paul Cezanne and School of Pon t - Av e n ” was among the IMA’s Vincent van Gogh — only the first two had an three most popular shows of the past decade. immediate following,” says Bret Wal l e r , direc- At the time of the recent acquisition, five of tor of the IMA. “They gave rise to movements the works were included in an international that were, in many respects, rivals.” show mounted in Munich, a fact that Wal l e r and Lee believe is indicative of the awareness of Valuing a tre a s u re the collection. Assigning a value to the 1998 acquisition was a Inquiries about the art’s availability have challenge because “public auction usually pro- not stopped with the announcement that a sig- vides a benchmark, but works as rare as these nificant portion of the collection now belongs (opposite) don’t often come up for sale,” explains Wal l e r . to the IMA. “We’ve already had requests from David A. Miller, Final appraisal for the paintings was more museums in America and Europe to borrow senior conservator than $30 million, making it the largest art pur- the works that we haven’t yet had a chance to of paintings, chase in IMA history. The purchase was made unveil here,” says Lee. cleans Paul possible in part by the generosity of Swiss Gauguin’s collector Samuel Josefowitz and a $20 million “Christmas challenge grant from Lilly Endowment. Conse- Night,” part of qu e n t l y , the IMA was able to add to its the Pont-Aven collection in a strategic way that would en- collection pur- hance its national image as a cultural chased by the destination site. Indianapolis The 84 Po n t - Aven prints are a gift of Museum of Art. Josefowitz, a longtime friend and trustee of the Enjoying the scene IMA, who began forming his Pon t - Av e n co l - are Ellen Lee, lection more than 40 years ago with the purchase chief curator, and of a work by Emile Bernard. The IMA’s ac q u i - Bret Waller, sition includes four oil paintings and 15 prints by director of the Bernard as well as three paintings and six IMA. prints by Gauguin. “In its entirety, the Josefowitz Pon t - Av e n Miller applies collection is the best in the world,” says Lee. his talents to “The importance of the IMA’s acquiring a se g - “Still-life with ment of it is international in scope. This purchase Portrait of Laval” gives us the most varied and comprehensive by Gauguin. holdings in the Pon t - A ven School of any muse- 2 4 L i l ly Endowment A n nual Repor t

RENEWING THE CREATIVE SPIRIT FOR ART’S SAKE

“We want them to bring back their success stories,” says Ba k e r . “That may mean a filmmaker will sit down with five or F IN I T I A L RE S P O N S E is an indica- six other filmmakers and talk about the renewal experience. Itor of future success, the Creative A writer might deliver a lecture; or a visual artist might have an Renewal Fellowship Program will accom- exhibition, and a musician or a dancer might give a performance plish its aggressive goal of re-energizing in the Artsgarden.” 50 Indiana artists and arts administrators by December 2000. Fe l l owships for pro fe s s i o n a l s “Within a few weeks of announcing the The program is aimed at professional artists and arts adminis- fellowship program, we had received more than trators, traditionally defined as those who make at least 60 500 requests for guidelines,” says Ramona Baker, percent of their income from practicing their art. Sometimes executive director of the Arts Council of Indi- artists can get in a rut artistically or professionally, especially if anapolis (ACI). Each successful candidate – their creative impulses are confined by organizational or bud- working artist or administrator of a nonprofit ge t a r y parameters. arts organization – will receive an award of Baker cites burnout as an occupational hazard within the $7 ,500 to pursue a self-designed program that arts community where work is an expression of self and mone- ACI hopes will lead to the artist’s personal de- ta r y rewards can be inconsistent and modest. “It’s not an easy velopment and professional renewal. road to travel,” she says. “I believe in two years we’re going to see a Arts administrators struggle with additional sets of chal- revitalized arts community,” says Baker. lenges. Budgets are usually tight, and fund-raising is an The fellowships are supported by a ongoing burden. $469,500 Lilly Endowment grant to ACI and “There is a huge amount of pressure,” says Baker. “As a were inspired by the Endowment’s Tea c h e r community we’re profoundly fortunate to have these people Creativity Fellowship Program, launched in who share their creative spirit; they give and give and give will- 1987 to benefit veteran teachers in the state’s in g l y , but a lot of self-sacrifice is involved.” public schools. “We’ve been looking for ways to support individual The design of each artist’s program could, ar t i s t s , ” explains Greg Charleston, deputy director for market- in itself, be an exercise in creativity. Fel l o w s ing and programs at ACI. “We know of no other fellowships may opt to explore a new area of artistic expres- for artists in the state of Indiana.” si o n , pursue a current project, conduct research, A panel of impartial, out-of-state, national jurors will eval- se r ve an apprenticeship, enroll in a class or at- uate the applications after the mid-Feb r u a r y 1999 deadline. ACI tend a conference. will announce the names of the fellows in June. At the end of the one-year fellowship period, the artists will share their experiences with colleagues and the public. E D U C ATION & YOUTH PRO G R A M M I N G

UNITED NEGRO COLLEGE FUND “L ADDERS OF HOPE”

It is fairly inexpensive and easy to build box-like rooms, fill them with rows of desks, and call them classrooms. But it is far more complex, not to mention costly, to build a modern university science building, equipped with laboratories and wired for computer technology. Xavier University of Louisiana knows The tile design in the new science that challenge quite well. addition at Xavier University evokes the DNA chain of genetic matter. The New Orleans school leads the nation in sending African American students to medical schools. 2 6 L i l ly Endowment A n nual Repor t

he small, historically A Xavier student Tblack Catholic college learns how to in the center of New extract DNA to Or leans ranks first of all make a DNA the country’s colleges an d profile. universities in placing Af r i c a n Americans in President medical schools, and it is Norman C. the nation’s leading pro- Francis is proud ducer of undergraduate of Xavier’s degrees earned by African reputation for Americans in the physical educating African and life sciences. American students Yet until 10 years ago, students at Xavier ficials call a “st a t e - o f - t h e - f u t u r e ” la b o r a t o r y and in the physical labored over their chemistry assignments and teaching facility, designed to enhance le a r n i n g and life sciences. biology experiments in wooden U.S. Army and provide a first-ever venue for faculty and barracks vacated by servicemen after Wor l d student research. War II. And when a new building was finally “Our ultimate goal is to increase the completed in 198 7 , it was designed for just a number of African Americans with graduate few hundred science majors. degrees in science, and that all But by 199 7 , Xavier’s burgeoning popula- starts at the undergraduate tion of science students – more than half of its l e v e l ,” says Xavier President 3,655 students major in biology, chemistry, Norman C. Francis. “This new physics/engineering, computer science, pre- building is a great facilitator pharmacy or another field of science – were for that goal.” crowding into a building that was far too small to meet the demands. Tod a y , Xavier continues to attract more and more students to the sciences, but the col- lege’s ability to serve the students and faculty is much improved. A new, $20 million additi o n to the science building provides what Xavier of- Xavier was able to complete its new science facilities in time for the 1999 spring semester with the help of the Lilly Endowment Histor- ically Black College and University (HBCU) Program, a $41.7 million grant to the Uni t e d Negro College Fund (UNCF), the nation’s oldest and most successful minority higher-ed- ucation assistance organization. The grant, the largest ever made by the H. Gray III. “These students Endowment to a single, non-Indiana entity, are determined to fulfill their continues the Endowment’s perseverance in aspirations and those of their supporting these independent schools. The parents as they prepare acade- Endowment’s relationship with UNCF goes mically to serve the needs of back to 1944, UNCF’s founding year. (In oth- their communities and those er initiatives, the Endowment over the years of the entire nation. has given $35.8 million in education and reli- “When segregation ended and African Xavier’s more gion grants to private HBCUs.) The 199 8 Americans could go to institutions that serve d than 3,600 stu- grant will support the most pressing needs of majority populations, these schools found dents make good UN C F ’ s nearly 40 member colleges and uni- themselves having to redefine their education- use of its modern, versities: capital improvements, scholarships, al mission. They are persevering and achieving spacious library. and faculty and endowment needs. new heights. Enrollments are generally up and gr o w i n g , ” Gray says. “However, they are still First grants ap p rove d facing limited resources. If they raise tuition In 1998, in the first round of UNCF grants, and fees to meet their costs, they risk losing nine private HBCUs were approved for fund- their mission, which is to make a very distinc- ing, including Xavier, $1,150,000; Benedict tive higher education accessible to students College, Bethune-Cookman College, Clark from all economic backgrounds. This educa- Atlanta University and Oakwood College, tion makes a real difference in the lives of $1 ,050,000 each; Bennett College, $1 million; students who dream of becoming the leaders of Paul Quinn College, $975,000; and Morris the 21st century and who are critical to the College and Shaw Uni v e r s i t y , $950,000 each. strengthening of America’s future,” he says. Before the 1960s, HBCUs were the pri- Compared with other private colleges and ma r y entry points into higher education for universities, HBCUs have very small endow- African Americans. Tod a y , those institutions ments and modest development offices. While are not alone in attracting African American growing numbers of their alumni are acquiring students. Nevertheless, the HBCUs are “lad- some degree of wealth, private HBCUs are far ders of hope for many students who arrive on from their more affluent institutional peers in campus burdened by tremendous social and their capacity to raise the support needed. financial hardships,” according to UNCF president and chief executive officer Wil l i a m looking for ways to expand without expanding the physical world of its campus. “ Technology gives us this opportunity. At the same time, many HBCUs are Distance learning is a way to provide outreach more than 100 years old. Virtually all their throughout the city, state, country and world,” campuses have buildings that are closed or says Richard White, vice president for institu- in desperate need of repair or, like Xavier’s tional advancement. science building, renovation. A recent U.S . General Accounting Office report indicated it S t u d e n t s , buildings and technology The administra- would cost $775 million to restore and pre- Bethune-Cookman College was founded in tion building at se r ve all the historic buildings at public and 1904 as the Daytona Normal and Industrial Clark Atlanta private HBCUs. Institute for Girls of Daytona Beach with “five University in Faculty development is another critical little girls, a dollar and a half, and faith in Atlanta’s need. Compared with other public and private Go d , ” as its founder Mary McLeod Bethune University colleges in general, HBCUs’ faculties have liked to say. Quarter is the heavier teaching loads, more modest research Tod a y , the college (which merged with center of a cam- facilities, smaller libraries and less money for the Cookman Institute for Boys of Jacksonville pus whose origins research, travel or sabbaticals. Faculty typically stretch back to earn less, too. just after the “With the new Lilly Endowment-UNCF Civil War. partnership — which provides resources that can be used in a flexible way to address capital, Improvements to scholarship, faculty and endowment needs — Clark Atlanta’s these independent historically black colleges interactive com- and universities will continue to be important puter labs will do o r ways of educational opportunity,” Gray says. make distance Through the UNCF grant, for example, learning a major Clark Atlanta University hopes to open a new factor in the reach do o r way through a distance-learning in i t i a - of the university’s tive. Having already reached its top enrollment curriculum. of more than 5,700 students, Clark Atlanta is L i l ly Endowment A n nual Repor t 2 9

in 1923) has 2,500 students, a budget of $43 million and an endowment of $23 million. n While only 16 percent of African Both the growth and American college students attend HBCUs, the corresponding needs are 45 percent of recent African American Ph.D. impressive. Ninety-five percent recipients received their undergraduate de- of Bethune-Cookman College grees at HBCUs. students need financial aid to n More than one-third of all African complete their education. White Americans who received doctorates in edu- Hall, the campus centerpiece, cation, and one-third of those who received is the original building in doctorates in biological sciences, earned which founder Bethune once their undergraduate degrees from HBCUs. Historic White gathered with black and white community Hall on the cam- leaders and early benefactors in a segregated pus of Bethune- Florida. Even though the building is 83 years Cookman College old, it still serves as the school’s largest assem- will be renovated bly space for student learning activities. and equipped Repairs have been made to historic White with the latest Hall, and improvements are in the works, such technology. as a new audio system for the building’s Heyn Memorial Chapel. A technology master plan A Bethune- has been funded, with plans to consolidate ad- Cookman student ministrative functions and to wire dorms so enjoys the students have access to the Internet and e-mail. Daytona Beach “We feel vibrant and energized, ready n The leading four colleges in the coun- weather while for growth,” says Bethune-Cookman President tr y placing African Americans into medical working on his Oswald P. Bronson Sr. school are HBCUs – Xavier, Morehouse, laptop computer. That kind of energy is further evidence Spelman and Howard. that HBCUs – despite the enormous obstacles n More than 50 percent of the nation’s they have overcome and the new challenges ye t African American public school teachers ahead – serve an important role in the nation’s and 70 percent of black dentists and physi- higher education system. cians earned degrees at HBCUs. Co n s i d e r : n More than half of all African Ameri- n Of the 10 colleges that graduate the can professionals are graduates of HBCUs. most African American students who go on “It is obvious that the graduates of these to earn Ph.D.s, nine of them are HBCUs. schools will be the teachers, managers, doctors, scientists, public servants and artists of the 21st century,” says Gray. “They will continue to enrich America.” 3 0 L i l ly Endowment A n nual R epor t

L I L LY ENDOWMENT COMMUNITY SCHOLARS LET TH E DR E A M S BE G I N

AS T YE A R they were living at home a middle-class family already squeezed by col- L in tiny Indiana towns like Hamlet lege tuition costs, Kloser knew his resources and bigger cities like South Bend. They were limited. were finishing up college applications, As a Lilly Endowment Community volunteering at soup kitchens and nurs- Sc h o l a r , Kloser is able to attend Notre Dame, ing homes, and working after school in wh e r e he is learning to handle the pressure of fast-food establishments and retail stores, keeping up with his studies in chemistry, film cleaning barns and mowing lawns. Since and Caribbean literature. Tuition, however, is then, however, life has changed forever. not a worry. College does that for a person. Full tuition for four ye a r s Hoping for a For the 117 recipients of the first Lilly career in medicine, Endowment Community Scholarships, the fresh- The Community Scholarship Program provides Batya Madison ma n year is one in which they stretch their full tuition for four years at any accredited In- attends Earlham minds, meet new people, and make new dis- diana college or university that the recipient College on a Lilly coveries about themselves and their world. chooses. The scholarships also pay for required Endowment For Matthew Kloser, a freshman at the fees and up to $700 per year for required books Community University of Notre Dame from Kos c i u s k o and equipment. Scholarship. The Co u n t y , his first year has been a challenge. The scholarships are awarded by commu- program will During one week, for example, he wrote a nity foundations – each with its own criteria double in 1999. paper for a philosophy class on the weighty for choosing scholars – representing nearly topic of the existence of God. ev e r y Indiana county. The program is funded That same week, as part of a through a grant to the Indianapolis-based In- volunteer team from his dor- dependent Colleges of Indiana. mi t o r y, Kloser made his first- In 1998 community foundations re p r e - ever apple pie while preparing senting 89 counties awarded scholarships, which a meal at a halfway house for men were allotted on a population basis, one recently released from prison. scholarship for each 100,000 residents. Those Growing up in War s a w , students – along with their families, teachers, Ind., Kloser dreamed of at- and the community foundations that selected tending Notre Dame, but as them – were honored by the Endowment at the youngest of six children in a dinner in June. Astronaut Dr. David Wol f , who has received engineering and medical degrees from Purdue and Indiana universities, was on hand to testify to the importance of L i l ly Endowment A n nual R epor t 3 1

during my junior year, but I have a lot of work and studying to do before then.” Sarah Works of Rising Sun, Ind., is at Indiana University Bloomington, also taking science courses in preparation for a career in medicine. In just one semester, she has found her niche — on an “academic” dorm floor with other serious students, at a local church, and as a volunteer in a nursing home.

Expanding the re a c h Funded at $5.8 million in 1998, the program will double in 1999. More than $12 million has been allocated for a second, larger group of (left) Matthew 240 scholars. Wales, valedictori- The scholarship program is part of an an of his high higher education, talk about his experiences effort to increase public awareness of the po- school class, was during his 128 days on the Mir space station tential of Indiana’s community foundations feted as a member and congratulate the winners. to improve the quality of life of the state’s res- of the first class of No w , each of the 1998 winners – 72 women idents, but, perhaps more important, the Lilly Endowment and 45 men – attend 15 private colleges and Community Scholarship Program is part of Community seven public institutions, studying and prepar- the larger Endowment effort to raise the unac- Scholars. The ing for careers in medicine, science, the arts ceptably low level of educational attainment Greenfield, Ind., and business. in Indiana. native attends At Earlham College in Richmond, Batya Through the program, Lilly Endowment Wabash College. Madison of Franklin, Ind., is taking science and local community foundations that s e rv e courses that she hopes will cities, small towns, ru r a l Dr. David Wolf, help her someday be admitted areas and urban neighbo r - astronaut, was the to medical school. An “A” stu- hoods can emphasize the featured speaker at dent in high school, she’s still importance of higher ed u - the first dinner adjusting to the higher expec- cation throughout the state. honoring the schol- tations that come with college. Fi n a l l y , the program is arship recipients, “I have to do a lot more designed to reward and en- their families and reading than I did in high courage outstanding Indiana sponsoring commu- sc h o o l , ” Madison says, “but the students who are working hard nity foundations. science department is excellent, to earn their bright futures. and there are many opportuni- ties. I hope I’ll be able to go to the Galapagos Islands to study 3 2 L i l ly Endowment A n nual R epor t

INDIANA COLLEGE PREPA R ATO RY PRO G R A M COLLEGES REACH OUT TO FIND TOMORROW’S STUDENTS

ac u l t y , staff and stu- Fdents at the Indiana Institute of Technology in Fort Way ne, Ind., are not isolated from the problems of city life. Nearly every day young people from the urban, older residen- tial neighborhood walk, ride bicycles and skate- board through the small campus, and ranks 48th out of the 50 states in the percentage of its adult sometimes shoot basketballs on the population with a baccalaureate degree. The statistic reveals a college court. These young people are a persistent problem with sobering economic and civic implications; constant reminder of the challenges to it is a statistic that the Endowment is committed to help change. be met and potential to be tapped. Indiana Tech officials thought of those N ew ve n t u re s youngsters when the college made its proposal In 1998 alone, the Endowment awarded $90 million in the to Lilly Endowment’s Indiana College Prepara- Capital Improvements Program to 18 private colleges and uni- to r y Program. The initiative, announced in versities in Indiana and $21.9 million to 20 public and private 1998, is designed to encourage Indiana colleges institutions in the Indiana College Preparatory Program. For and universities to work with K-1 2 students in the latter program, the Endowment invited Indiana’s regionally the state to build their desire for an education accredited two- and four-year college and university campuses and help them prepare to thrive in college. to devise their own projects and programs and to apply for The program is just one part of a nearly grants of up to $1 million each. Indiana Tech received $760 , 187 $223 million investment by the Endowment to work with 300 middle school and high school students in since 1996 toward improving the educational Fort Way n e . attainment level of Indiana adults. The ongo- ing effort is a response to the fact that Indiana L i l ly Endowment A n nual Repor t 3 3

They will be mentored, in part, by Indiana Tech students specially trained for the job. The current grant also builds on a re l a - The grants were intended to energize In- tionship with Lakeside, a neighborhood school diana’s colleges and universities, to inspire that has had an ongoing relationship with In- them to help young people and, in a signifi- diana Tech. Principal Anita Dortch hopes cant way, to alter the state’s present course. In that students’ eyes will be open to the possi- some cases, it was a new venture for colleges bilities of higher education. “Sometimes if you and universities that had no previous working don’t see it, you don’t think you can do it, even relationship with K-1 2 schools or programs if it – college – is in your own neighborhood,” that served those children. she says. For Indiana Tech, however, the grant seemed a natural extension of its historic mis- Getting children past the gate sion. Indiana Tech is sometimes described as a Research shows that reading and algebra are “niche school,” with many of its 1,000 students “g a t e k e e p e r s . ” Students who master those two coming from less-advantaged backgrounds to subjects are more likely to attain a higher edu- study for baccalaureate degrees in engineering, cation than those who do not. computer science, business, accounting and Armed with that information, Earlham recreation. Most Indiana Tech students are the College, which received a grant of $1 million, first in their families to attend college. As a has organized a campaign in its home commu- neighbor in the east-central Fort Wayne area nity of Richmond and Wayne County. Their since the 1950s, Indiana Tech is a stabilizing goals: to have all students in the county read- force in its own neighborhood. ing at grade level by the end of Grade 2 and to (opposite) A.V. While researching their proposal, Indiana increase the number of students who success- Fleming (second from Tech officials discovered that the students liv- fully complete algebra by the end of Grade 9. left), president of the ing in the ZIP code where the college is located Called REACH, for Raising Educational Fort Wayne Urban have the highest rates of failure in For t Achievement for College and Higher, the pro- League, and Audrey Wayne, according to Russell D. (Russ) Ba k e r , gram has been endorsed by the county’s five M. Todd (second associate dean of students at Indiana Tec h . school corporations. The business community from right), director “It was easy to find kids who needed help. has been involved, too, with a CEO Roundtable of Manchester They are all around us,” Baker says. bringing together leaders from commerce and College’s Hawthorne Indiana Tech plans to collaborate with education. Earlham is at the center, providing Program, meet with parents and community youth-serving organi- expertise and coordinating efforts. students at the zations to assist 300 at-risk, inner-city For t Pontiac Learning Wayne children in Grades 6-12 at Lakeside Center in Fort Middle School and North Side High Wayne. School. During both summer and school-year programs, students will engage in academic enrichment and career development activities. 3 4 L i l ly Endowment A n nual Repor t

“There’s a tremendous amount of excite- collaborate with three organizations – the For t ment in our county for the program,” says Wayne Urban League, Casa de Amistad in Earlham President Douglas C. Bennett. “This South Bend, and the South Bend Urb a n is not just an Earlham effort. This is a Way n e League – all of which directly serve African County effort.” American and Hispanic at-risk youth with The experience is relatively uncharted ter- limited financial resources. ri t o r y for Earlham. The small, liberal arts The program hopes to serve up to 120 college has been engaged in the arts and other youth in Grades 6-8 over the next several years, community activities throughout its history, strengthening academic skills and increasing but this new kind of activism is an important the understanding of educational possibilities. way to improve opportunities for a wider group The students will visit the Manchester College of Wayne County residents. campus each spring. “There is a huge gulf in America between Instead of focusing on schools, Manchester the world of local schools and higher educa- decided to work “child-by-child” in out-of- ti o n , ” Bennett says. “This grant asks us to school experiences, according to Manchester bridge that gulf and get to know what is going College president Parker G. Marden. “Basically, Kenneth E. on in the schools. This is good for us.” we think that by paying attention to individual Causey (left), young people, we can help them do better,” he says. computer teacher Building connections By “paying attention,” Manchester College at Lakeside Middle Colleges and universities were also asked to hopes to give students in the program the same School in Fort think about soliciting parental support and kinds of advantages that middle-class kids Wayne, and Russ providing feedback to parents. have: extra help with math and other academic Baker, associate With all the talk about helping students, skills; music lessons, if the youngsters show in- dean of students at parents are too often left out of the equation, terest and potential; exposure to the college Indiana Tech, meet according to A.V. Fleming, president of the experience and its possibilities so that mothers, with middle school Fort Wayne Urban League. However, for the fathers and their children can share the vision. students. students he sees at his organization’s Pon t i a c Youth Center, parental involvement is im p o r - tant. For these parents, it is the key to unlocking the doors of higher education. “We have to bring parents into the loop,” Fleming says. “When it comes to college, many of these parents don’t have a reference point. They don’t know about the little things that it takes to make it in college. Because they don’t kn o w , they can’t always help their children.” Fleming’s belief in bringing parents “into the loop” is one reason that he is so enthusiastic about Manchester College’s Hawthorne Pr o gr a m . The college received a grant of $866,319 to L i l ly Endowment A n nual Repor t 3 5

SPREADING T H E “ e’re trying to create an Wachievement movement.” GOSPEL OF When Hugh B. Price, president of the National Urban League, talks about the Campaign for African-Ame r - AC H I E V E M E N T ic a n Achievement, he makes it clear that he is not just talking about another program with a slick-sounding name. He’s talking about a movement – an effort energized by churches, civic, fraternal and educational organizations that have a long track record of supporting academic excellence, re- sponsibility and self-reliance among African Americans. These groups will marshal the troops in an all-out attempt to win the hearts and minds of African American youth to prepare them for a positive future. Creating a movement – a peace The National Urban Leag u e movement, a civil rights movement, a women’s movement – does not happen overnight, but then, the National Urban League has an 89-year history of commitment to education and the development of youth. have been at the very heart of the African The movement also has muscle from more than 28 reli- American community for a century or more, gious, business and social organizations that have signed on as in some cases, or at least a few decades,” Price partners, including the Congress of National Black Churches says. “We’re trying to make achievement a part (CNBC), the Pan Hellenic Council of African American soror- of the gestalt, the mind-set, of all African ities and fraternities, the Congressional Black Caucus and the American children.” National Bar Association. In support of the organization and its “What we’ve done is reach out to the organizations that plans to spark a national movement with the 3 6 L i l ly Endowment A n nual R epor t

Campaign for African-American Achievement, Lilly Endowment made a $25 million com- mitment to the National Urban League in 1998. The grant will further advance the ca m - paign, which was launched in 1997 in 56 Urb a n The Endowment and the National Ur- League affiliate sites. From these 56 “pa c e s e t t e r ” ban League have a long history of partnership sites, the league will select 20 to implement in efforts to promote education and good char- the Endowment grant nationwide. ac t e r , notes Price. “We’ve been on the same page for a long A society of achieve r s ti m e , ” he says. “Character building and acade- At the center of the Campaign for African- mic achievement go hand in hand.” American Achievement is the Thurgood Marshall Momentum behind the movement is Achievers Society, a society co-founded by the already evident: On April 28, 1998, 25 young National Urban League and the CNBC and people with B-averages or better were the first inductees into the Thurgood Marshall Ac h i e v - ers Society in a ceremony in Was h i n g t o n , D. C . , presided over by Gen. Colin L. Powell. On that same day in 27 other cities, 2,500 other young people were inducted into the society, and (previous page and nearly 700 more have been initiated since then. left) Joe Shade Jr., director of educa- tion and youth ser- vices at the Pontiac Youth open to students who have excelled ac a d e m i - Center in Fort ca l l y , demonstrated good character and engaged Wayne, Ind., takes in community service. a hands-on interest Endowment funds will provide $10, 0 0 0 in students in the scholarships for 200 Thurgood Marshall Achiev- center’s after- er s each year for five years. The grant also will school academic help prepare training materials for parents and program. Fort devise strategies for them to improve the Wayne is one of achievement levels of their children and assist 56 "pacesetter" National Urban League affiliates around the sites in the co u n t r y in implementing the campaign. National Urban League’s Campaign for African-American Achievement. RELIGION & LEADERSHIP EDUCAT I O N

P R E PARING A NEW

G E N E R ATION OF

PA S TORAL LEADERS

BROA D E N T H E F OC U S, BR I D G E T H E G A P

David Lawrence, a student at Louisville Presbyterian Theological Seminary, participates in on-site training in the inner city, helping students in the after-school program at the Presbyterian Community Center. 3 8 L i l ly

To help seminaries develop the best ways to address such challenges, Lilly Endowment announced two major grant competitions in 199 8 . Both were open to all 202 accredited seminar- ies of the Association of Theological Schools. The first program offered funds to schools tr ying to strengthen their capacities to call, educate and support strong candidates for con- gr e g a t i o n a l ministry. In that competition 45 schools shared a total of $53.4 million in grants. The second program encouraged theo- logical schools to introduce teenagers to theology as a field of study that could captivate their imaginations and to the ministry as a satisfy- ing career to pursue. As a result, 22 schools earned grants totaling $2.1 million that will enable them to launch youth programs im- mediately or plan comprehensive programs for future funding. (Nine of these schools also recieved grants in the first program.) ER H A P S MO R E TH A N AN Y ot h e r Proposals for the first program revealed Alonzo T. Johnson Parena of professional education, the- that different priorities and challenges face (second from left), ology schools seem like mysterious places different schools. For some, the situation called recent graduate of to the average person, if he or she thinks for a thoughtful revamping of the curriculum. the Louisville sem- about them at all. But as postgraduate For others, the development of intentional inary, works with schools for other professions – business, and pervasive new relationships with congrega- children in a medicine, dentistry, nursing, law, engi- ti o n s and other sites of ministry was necessary. round-table setting neering – prepare their students to take For the faculty and students at Louisville on the floor at their places in the professional ranks, di - (K y.) Presbyterian Theological Seminary (LPTS) , Central Church in vinity schools and seminaries are the places the Endowment’s grant will be used to strength- Louisville. where the next generation of American en prospective and current pastors in the use of pastors learns how to be ministers. the Bible for personal and community spiritu- It has been apparent for some time that, al growth and discipleship, and will help them even at the best institutions, American semi- interpret the Bible in congregational settings. naries face serious challenges in their efforts to “It is no secret that over recent decades prepare future pastors to minister effectively in lay people have become pretty deficient in their an increasingly complex world. biblical knowledge,” claims John M. Mulder, president of LPTS. “Therefore, we see stu- dents in our schools who are lacking in this area. L i l ly Endowment A n nual Repor t 3 9

“At the same time, we have seen a strong na r y in Washington, D.C. and pervasive quest for religious meaning, or Schools such as Bethel and Wesley have sp i r i t u a l i t y . A poll of our recent graduates responded by strengthening partnerships with asked what one factor should be emphasized at local congregations, stepping up efforts to re- our school. The answer, overwh e l m i n g l y , was cruit outstanding candidates for ministry, and ‘personal/spiritual development,’” Mulder says. creating programs that reach out and support “This is a quantum difference from 30 to 40 pastors in the field. years ago, when spiritual formation of students “This change is rooted in the cry of the was considered the province of the individual church for spiritually healthy, biblically pro- and/or the congregation, not the focus of a found and leadership-savvy pastors,” says Clark. theological curriculum or the seminary itself.” In answering the cry, many schools of theology With its $1.5 million grant, the school decided to broaden their focus beyond their will change the way it teaches the Bible, ap- campuses and bridge the gap between them- Seminary point a new professor of Bible (it already has selves and the congregations they serve . professors develop increased graduation requirements in Bible “We looked at the church, saw declining rapport with studies), hire a director of vocational formation, membership and declining resources and rec- students and endow merit scholarships, extend the students’ ognized something that bordered on a crisis,” find casual set- field education in the Louisville area to in - summarizes G. Douglass Lewis, president of tings for clude more African American congregations, Wes l e y . “As a theological school, we committed counseling and and beef up its continuing education programs. ourselves to the vitality and ministry of the communicating.

Getting the message Bethel Theological Seminary faced a some- what different situation. When a hundred pastors were asked to share their opinions on the needs of the church, “what we heard back was a very loud message,” recalls David Clark, director of Bethel’s Center for Biblical and Theological Fou n d a t i o n s . “Many seminary graduates may still be working to understand themselves, and too many graduates don’t have a secure understanding of what it means to lead a congregation,” he says. This message received by Clark and his church in our region. Our supposition is that colleagues in St. Paul, Minn., has reverberated leadership is a key factor in any organization, across denominations and all around the coun- and the pastor is the key leader in a congrega- tr y. “Everywhere we’ve turned, people have said tion. Our primary purpose is to prepare to us, ‘Do something about pastoral leader- pastoral leaders.” ship,’” says David McAllister-Wilson, executive vice president of Wesley Theological Semi- 4 0 L i l ly Endowment A n nual Repor t

ulation is largely second-career people who are Wa n t e d : the ve ry best in their 40s. These older students bring great Common to several proposals were efforts to gifts, but now we need to actively recruit a identify and recruit gifted “first-career” college group that is not represented on campus. This graduates for seminary study. For many schools, is a whole new strategy for us.” the notion of actively going after outstanding If recent college graduates often overlook candidates was a new concept. The more tradi- mi n i s t r y as a vocation, passive recruitment prac- tional approach was passive; schools waited, ti c e s of seminaries are only part of the reason. then welcomed those who enrolled in their Many churches have discontinued their once- programs. Now, with funds to enable them to common efforts to promote ministry as a profession. act more intentionally, admissions officers will explore ways to shape incoming classes accord- Going pro a c t i ve ing to the needs of the church. Recognizing change, several theological schools “In a sense, it’s a gamble,” says Charles E. are forming partnerships with congregations Bouchard, president of Aquinas Institute of to boost the visibility of career ministry and Theology in St. Louis. Bouchard’s faculty and identifying persons who show potential for it. staff decided to actively seek out and introduce The rationale is that people in their 20s are outstanding members of Generation X more likely to answer the call to ministry if (Catholics born after 1967) to the rewards of they have been aware of it as a career option church servi c e . since childhood. Seminaries hope Supported by a $1.5 million grant, the “The ‘culture of the call’ has broken down to revive or re- multifaceted Aquinas program includes plans within the church,” says McAllister-Wilson of form the “culture to conduct market research, establish a “feeder Wes l e y . “We need to reinstitute it in the pul- of the call” to sy s t e m ” within 12 Catholic undergraduate pit, in youth programs and in the campus attract bright schools, and offer a summer program called mi n i s t r y programs so Christian vocation is young people into “M i n i s t r y in the Mountains” to potential sem- regularly lifted up as it was in the past. This the ministry. inarians and candidates for lay ministry. effort requires a great deal of collaboration.” Initially funded by grant Wesley’s efforts to reinstate a “culture of money and later sustained by the call” include working with congregations to donations from a variety of establish “Ministry Sundays,” providing study sources, Millennium Scholar- guides for youth groups and inviting interested ships will ease the financial students to enlistment events. “Success ulti- burden incurred by graduate mately will be measured by the number and st u d e n t s . the quality of people who say, ‘I want to come “We don’t know a lot to seminary,’” says McAllister-Wil s o n . about this generation because He was not alone in citing the break- so few of them are involved in down of denominational culture, in which the Catholic theological educati o n , ” says Bouchard. “What we do know is that our campus pop- L i l ly Endowment A n nual Repor t 4 1

Putting education in contex t Just as medical students, grounded in medical and science courses in classrooms and labora- tories, work their way into the real world of diagnosis and treatment in hospital and clini- cal settings, so too should theological students, grounded in rigorous theology and philosophy courses, work their way into the real world of congregations. There need to be clear and In Louisville’s se m i n a r y was part of the intricate web of rela- meaningful connections between the two areas Central Church tionships that began in churches and spread to of “th e o r y” and “pr a c t i c e . ” In the best-case sce- program, Johnson church camps, colleges, mission programs, and nario, the two areas blend. elicits from mid- the like. The weakening of this web over re- Candler School of Theology at Emory dle school children cent decades has left the seminary isolated, University will use its nearly $1.5 million grant the topics for according to David M. Greenhaw, president of to focus its curriculum more on real-world ex- discussion and Eden Theological Seminary in St. Louis. “The perience. For five years, the faculty of the questions they se m i n a r y has always had a distinct role to play,” 700-student school has been examining the want answered. he says, “but the change is that preparation for “state of culture, the state of the church and the Then he makes the ministry has become identified solely with state of pedagogy,” according to Luke Timothy those subjects the this singular ecclesial institution. Johnson, Robert W. Woodruff Professor of basis for his “We’ve always been good at doing theo- New Testament and Christian Origins. “We lesson. logical education for the church,” he says, “but undertook this deeper examination instead of now we must improve the preparation of men a usual exercise in curricular revision. As a con- and women entering the ordained ministry by sequence, we are building on a 30-year-old strengthening our work with the church.” su p e r vised ministry program and have shaped Eden plans to use its nearly $1.5 million it in the direction of a contextual education Lilly Endowment grant to strengthen its rela- program for our master of divinity students. tionships with the many church bodies that “This work represents a substantial and sponsor its students in order to reinvigorate pe r vasive change from previous practice,” he the church system that identifies, nurtures and stresses. “The main thing is that we have shift- supports ministerial candidates before, during ed contextual education – or apprenticeships/ and after seminary. internships where real-world ministry takes “Some steps are a bit of a risk,” Greenhaw place – from the periphery to the heart of the admits, “but the seminary can play a major role cu r r i c u l u m . ” in nurturing and developing relationships that lead to effective ministries that are integrated with all the church’s activities – and beyond.” 4 2 L i l ly Endowment A n nual R epor t

M o re contex t Several programs included detailed plans to close the gap between academic training and professional ministry. At Luther Seminary in St. Paul, placing students in congregations has been standard practice for more than 60 years. Its $1.5 million Endowment grant will expand that practice dramatically as the bridge between se m i n a r y and congregation becomes a busy two-way thoroughfare. Faculty members will visit churches, tune into their concerns and create course work that addresses the issues. Pastors will go through a certification process, Bethel’s plan provides for an alumni de- Today’s effective become qualified as adjunct faculty members velopment program that includes a mentoring ministries must and work with the academic staff in the class- component which connects recent graduates make connections to room as a team. with experienced pastors. Leadership confer- the “real world.” “We envision up to 20 congregations here ences will offer information and fellowship in the Twin Cities becoming partners in theo- aimed at novice clergy serving in single-staffed logical education,” explains Craig Van Gelder, church ministries. Persons in remote areas will professor of congregational mission and project be able to tap into a support network with the director of the Endowment-funded initiative. aid of a computer and modem. “We also envision going off-site, partnering All systems – before, during and after the with clusters of churches away from the Twi n campus experience – will work together to Cities and bringing theological education to strengthen the quality of pastoral leadership students who can do much of their course work which, in turn, will strengthen the congrega- off campus.” tions and churches served. This systemic approach is embraced by many schools even B eyond graduation though it means their work will extend be- Seminaries also are reaching beyond gradua- yond the classroom and the time typically tion to support new graduates who suddenly required to earn a degree. find themselves in stressful leadership posi- “We have to refocus ourselves not inter- tions in the field. “Take a person who is a senior nally on what we do, but externally on what in seminary in mid-May and then relocates to the church is doing and how our role is to vi- Minot, N.D., to lead a church of 125 people talize that,” says Lewis, explaining Wes l e y ’ s six weeks later,” says Clark of Bethel Theologi- plan to improve the quality of ministerial can- cal Seminary. “This is a significant transition.” didates. “We’ll still be a very strong academic institution, but it will be academics for the sake of the life of the church.” L i l ly Endowment A n nual Repor t 4 3

RENEWA L PRO G RAM S FOR IND IANA CLERGY

wo programs, both launched at the Tend of 1998, will explore ways of providing mid-career pastors with time The programs provide for pastoral respite and reflection out for personal renewal and profession- in different ways. The clergy renewal initiative will allow pastors al development. to leave their duties temporarily to pursue a range of inten- Designed by the participants to enrich tional activities. They may choose to embark on a writing their lives and ministries, the programs ad- project, take a mission trip, conduct research or enroll in classes. dress the need for Indiana clergy to engage in The Endowment will provide as many as 20 grants of up energizing activities that benefit themselves as to $30,000 each to Indiana congregations to support renewal well as the congregations they serve. The Clergy programs that have been designed collaboratively by congrega- Renewal Program is inspired by the En d o w - tions and their pastors. ment’s successful Teacher Creativity Fel l o w s h i p Program for Indiana public school teachers. C o nversations and re f l e c t i o n s The Indiana Clergy Peer Group Study The Clergy Peer Group Study Program, supported by a Program is modeled after the Methodist Ed u - $1, 2 7 1,208 grant to Christian Theological Seminary (CTS) in cational Leave Society, sponsored by the Dixon Indianapolis, allows participants to continue in their pastoral Foundation in northern Alabama. roles while meeting mostly in small groups over a three-year pe- riod. The Indiana program is statewide and will, over the Changing the pattern course of the grant period, assemble up to nine groups of eight “Finding uninterrupted time to reflect on the pastors from all kinds of congregations. big questions of ministry is hard to do,” says “The program will be ecumenical,” explains D. Bruce James P. Wind, president of the Alban Insti- Roberts, director of the CTS project. “There is real isolation tute, whose senior staff will help introduce the among some clergy, particularly in rural areas where pastors Clergy Renewal Program and evaluate it after may not have colleagues on staff for conversation and interac- two years. “Uninterrupted time removes a lot tion. This program will help people who are isolated.” of the distractions of day-to-day life, takes pas- With the assistance of a trained facilitator, each group will tors out of their normal patterns and allows identify common challenges they face and issues they want to them to reflect on those patterns in deeper st u d y . Endowment funds will underwrite research materials, ways. It also reminds people that the clergy speakers’ fees and travel expenses. represent a finite resource, and if we’re not Wind summarizes: “One way that pastors can truly maintain careful, we can exhaust it.” their creative edge is to have regular times when they are intention- al l y recharging their batteries, developing new skills, learning to do things they have never done before and having new expe- riences. Both of these programs are signs of health and growth.” 4 4 L i l ly Endowment A n nual Repor t

W O R D P O W E R “THE LIPS OF THE WISE SHALL PRESERVE THEM” P ro v e rb s 14 : 3 n early missionary, preaching the Agospel to sharecroppers in back- woods Missouri, is said to have elicited places to find explanations and secondary ma- only qualified praise from members of te r i a l , ” says Hurley. “Our books are devoted to his flock. “You’re a pretty good preach- giving readers the primary resource, that is, er ,” they told him, “but you don’t hold a not books about Cotton Mather, but Cotton candle to the fellow up the road.” Mather’s own words.” Curious, the missionary sought out the The 58 unabridged sermons span more eloquent African American preacher known as than 350 years, are arranged chronologically “Brother Carper” and was so moved by Carp- and offer insights into “the way the sermon in- er’s powerful message and extemporaneous fluenced so many of the important historical de l i v e r y that he hurried home to record the events and decisions that were made in the for- words on paper. mation of our country,” says Hurley. “We still don’t know Brother Carper’s Mather addresses the danger of witch- full name, but thanks to the missionary, we craft; Absalom Jones preaches a sermon of have his sermon,” says Michael War n e r , pro- thanksgiving for the abolition of the slave fessor of English at Rutgers University and trade; Rabbi David Einhorn talks about editor of the Library of America’s new an- the Civil War ; and John Murray calls for th o l og y , American Sermons: The Pilgrims to Martin international peace after Hitler. Topics, focus, Luther King Jr. language and tone reflect the changing times and expanding au d i e n c e s . 58 voices over 350 ye a r s “The Puritan sermons are highly literate More than 58 voices (Brother Carper’s among and thoughtful,” explains War n e r . “These peo- them) are included in the collection that ple were preaching to well-educated audiences demonstrates the force of religion in Ameri- who took sermons very seriously. By the time can history and the place of sermons in of the Revolution, sermons had become more American literature. Funded in part by Lilly improvised, direct and loose. The rise of evan- Endowment, American Sermons contains a min- gelical Christianity, with its emphasis on imum amount of discussion and a maximum emotion, changed the sermon into a more ver- amount of what Cheryl Hurley, president of nacular genre. In the 19th century, African the Library of America, calls “the real thing.” American preachers developed their own Editorial materials are limited to short essays mode of eloquence, which influenced white about the form of the sermon and brief com- preachers. Sermons had to meet a new chal- ments about each preacher. “There are many lenge of passion and colloquial appeal. Then, L i l ly Endowment A n nual Repor t 4 5

as mass markets appeared for print and later “My greatest challenge was trying to es- for radio and television, preachers adapted the tablish the history of preaching by African sermon to the new technologies.” Americans and women,” says War n e r . “I could easily find widespread agreement that female Paring the list and African American preachers were gifted Warner’s daunting task of selecting the best and influential before the Civil War , but no representatives of this evolving literary form sermons survi v e . ” was made easier by a panel of clergy, seminary faculty members, literary scholars and histori- Attracting a wide audience ans. Warner began the process by reading Because the Library of America is a nonprofit thousands of sermons, paring the number to a publisher created to preserve the nation’s manageable list, reviewing scholarship about li t e r a r y heritage, it seeks funds to support the texts and then suggesting a tentative table marketing activities as well as to keep its vol- of contents. “We sent the list to a number of umes permanently in print. American Sermons, scholars and invited them to comment on the the 108th title in the library’s series, incurred selections and identify gaps,” says War n e r . extra costs because of the age and fragile con- “The letters they wrote back were substantive dition of the original texts. and thoughtful.” “Some of the printed broadsides from Among the criteria for inclusion in the 1685 or 1720 were almost unreadable,” explains volume were eloquence, power, range and read- Hu r l e y . The Endowment grant for $170 , 0 0 0 ab i l i t y . Some preachers could not be represented will help cover the additional production costs, because, regrettably, their works were never ensure the book’s long-term availability and published or recorded. promote it within the secular and religious The Library of ma r k e t p l a c e s . America volume An unusual aspect of the book, according covers centuries to Hurley and War n e r , is its capacity to influence of American readers inside and outside the professional faith religious thought. co m m u n i t y . “P eople within religion often think they don’t have a literary tradition, and we’re hop- ing to change that,” says War n e r . “And people within literature often forget the importance that religion has played in most people’s liter- ar y experience. Before radio, television and films, the sermon was the central event of the common culture. We want people to remember that and appreciate the form and eloquence that the sermon represents.” 4 6 L i l ly Endowment A n nual R epor t

GETTING THE BIG PICTURE CONGREGATIONS IN THREE DIMENSIONS

ongregations have long been part of Congregating is essential to the Ameri- C the American scene. When the set- can way of being religious; at least 350,000 tlers from Europe began arriving in congregations dot the contemporary landscape North America, they quickly estab- in the United States. lished congregations. They assembled Lilly Endowment has cared about co n - themselves into communities organized gregations from its earliest days. This attention for intentional, regular worship in par- was rooted in the interest of the Endowment’s ticular places and sustained through founders who, active in church and civic life, them a pattern of religious life that af- considered participation in a congregation to fected everything else they did. be indispensable. More than 20 years ago, the Endowment The sanctuary at began a systematic program of support for North United “congregational studies.” The Endowment has Methodist Church funded some of the country’s best researchers in Indianapolis to take a look at all sorts of congregations in provides an inspir- all sorts of places: Who they are (and who they ing setting for the aren’t), what they think, what they do, how congregation to they do it, why they do it, how they pay for it, worship and how they select their ministers, why they pick receive Holy the ministers they do, what they look for in Communion. their ministers, what they expect ministers to do. Through these projects a much clearer pic- ture of American congregations has emerged. In 1998 the Endowment funded three major new projects that, taken together, will paint a three-dimensional picture of congrega- tions never before available. The research has not been undertaken for its own sake. The findings will have real implications for the fu - ture role of seminaries and theological schools, denominational leaders at all levels, pastors and lay leaders – and congregations. The in- formation will provide important clues for L i l ly Endowment A n nual Repor t 4 7

Launched in 1997 with a $500,000 grant, Dr. David Smith the NCS is the closest to completion. Chaves takes the measure is now analyzing data from 1,236 congrega- of a Sunday tions and has begun to disseminate findings he schooler at North describes as “a snapshot of 1998 that has long- United Methodist. standing value.” One interesting aspect of the NCS is the process by which survey participants were selected. Chaves chose not to depend on tradi- tional lists – Yellow Pages, denominational membership rolls or community directories – for his random sample. He was concerned that such lists would not include small “st o r e f r o n t ” making congregations stronger and more vi- churches that do not appear in any telephone brant communities. book and would overlook faith communities The studies are related, but each has its that are not affiliated with a national group. own focus and will produce specific results Instead, he used responses to the annual with diverse applications. As different as they General Social Survey (GSS), administered by are, they have similar names: the National the Chicago-based National Opinion Research Congregations Study (NCS), the Cooperative Ce n t e r , to provide him with a representative Congregational Studies Project (CCSP) and sample. Persons interviewed for the GSS were the United States Congregational Life Study asked the names and locations of their reli- (USCLS). gious congregations and the names of their congregational leaders. Researchers then asked Looking through diffe rent lenses these leaders to participate in telephone or “Think of it this way,” says Mark Chaves, a fac- face-to-face interviews that would provide the ulty member at the University of Arizona and data for the NCS. director of the NCS project. “Our study will “We asked them a series of objective ques- provide a national overvi e w , the CCSP will al- ti o n s , ” says Chaves. “We were interested in low an in-depth look at denominations, and knowing the size and composition of the con- the USCLS will give insights into what the gregations. We wanted to know how many people in the pews are thinking and doing. congregations were affiliated with denomina- When all three projects are done, they will rep- tions, what kind of programming they offered, resent a huge leap in our knowledge about how many used contemporary music as part of congregational life in the United States.” their worship, how many conducted joint ser- vices that crossed religious lines, how many The study was motivated by the need for (left) Denise standard information that would allow con- Caraher assembles gregations with different theological beliefs the Carolers, a and organizational practices to compare them- youth choir at the selves to each other. North United Among the challenges were convincing Methodist. some groups of the value of the research and creating a questionnaire that met everyo n e ’ s (opposite) It’s expectations. Dudley assumed the responsibil- Sunday school, ity of calling on leaders of faith communities then the rodeo for and educating them about the project. He en- this eager young listed their support, and the list of participants cowboy. now includes the mainstream Protestant de- nominations as well as Roman Catholic, (below right) Muslim, Jewish, Bahai, evangelical, Orthodox, Many congregants Mormon and other groups. volunteer their At its most successful, the CCSP not only services as teach- will offer comparative data but also will give ers and helpers in were engaged in social service activities. We visibility to congregations and underscore the the everyday life didn’t ask for opinions, but for information impact they have on society. “I think it’s going of the church. that any well-informed person could report.” to show the tremendous contributions that these religious bodies make to the public arena,” A cooperative effo rt says Dudley. Similar to the NCS model, the CCSP also will Perhaps more important, participants rely on congregational leaders to supply infor- will find practical application for the data. mation when interviews are mailed in March “We hope we can create conversations at a 1999. Interesting aspects of the CCSP are its variety of levels — people down the block, de- size, its diversity and the fact that denomina- nominational decision-makers and seminary tions will gather the data themselves. “This is educators trying to shape faith,” Dudley says. a cooperative congregational studies project,” says Carl Dudley, co-director with David The view from the pew Roozen of the Center for Social and Religious Whereas the NCS and the CCSP will present Research and professor of church and commu- information provided by congregational lead- nity at Hartford Seminary. “We’ve enlisted ers, the USCLS will add the perspective of and received the active support and participa- congregation members and other attendees. tion of about 40 religious groups.” The project is in its earliest stages – the $1.3 million grant was awarded in November – and findings will not be available for three years. L i l ly Endowment A n nual Repor t 4 9

Principal investigator Cynthia Woolever of the Research Services Division of the Presby- terian Church (USA) anticipates surve y i n g persons in at least 6,500 congregations during worship services on a “super Sunday” in April 20 0 1. Participating congregations will get a sense of who they are – and who they think they are. “It’s a chance for congregations to look in the mirror,” says Woo l e v e r . “I’ve worked with congregations for many years and have found that people often don’t have a real sense of themselves. Some are in denial about the changes that have occurred in their church. In their minds they think their congregation is the same as it was 20 years ago.” Besides learning about itself, a congrega- tion also can determine how its strengths and deficiencies compare with other groups inside and outside its denomination. The USCLS will use the same data-collection method as the and a video to help them interpret the find- NCS and will augment the sample by extend- in g s , ” explains Woo l e v e r . “The entire study has ing an invitation to denominations to join in a lot of research potential, but an important the project. part of the design is to provide information to “We hope that within six months after help participating congregations really under- the data collection we’ll have materials back to stand themselves better.” congregations that will include a workbook 5 0 L i l ly Endowment A n nual Repor t

1998 FINANCES & GRANTMAKING

THE BL E S S I N G S OF G OO D FO RT U N E HAV E BE E N GR E A T IN D E E D FO R LIL L Y END OW M E N T in 1998. From 1937 through 197 1 the Endowment’s founders made a series of gifts of stock in the family busi- ness (Eli Lilly and Company) totaling $90 million. Only the most daring seers would have guessed that the value of the Endowment’s assets would grow to $15.8 billion at the end of 1998 (see chart 1), or that the Endowment would award more than $2.4 billion in grants through 1998. The founders would be pleased that the Endowment has these resources to address the concerns that always have engaged its attention and called for its perseverance. Charged by its founders to pay particular attention to its home city and state, the Endowment is known for grantmaking in Indiana:

n The Endowment’s first grant in 1937 was $10,500 to the Community Ch e s t , forerunner of the United Way . This year, the Endowment’s largest grant – $50 mil- lion – went to the United Way of Central Indiana for its endowment.

n The Endowment’s abilities to help communities have been aided by the success of the 8-year-old GIFT (Giving Indiana Funds for Tomorrow) initiative. In 1998 alone, a $153 million commitment to GIFT will strengthen Indiana community foundations and provide a mechanism for directly funding com- m unity projects.

n Long a supporter of Indiana’s institutions of higher learning, the Endowment recently has stepped up its commitment to their excellence. The ex- pectation is that this aid will help them be major players in the long haul to raise Indiana’s educational attainment level and to increase the opportunities for Hoosier graduates to find productive work in their own state. The Endowment always has engaged in substantial grantmaking in the field of religion; most of that grantmaking is national in scope. It also engages in grantmaking in education and community development at the national level when compelling opportunities arise that further its historical concerns and values:

n In 1944 the Endowment made a grant of $5,000 to the fledgling United Negro College Fund; in 1998 a grant of $41.7 million to the UNCF will support a massive effort to bolster its member institutions.

n The need to develop strong congregations and excellent ministers found expression in two major 1998 grant commitments, totaling more than $55 million, to improve theological education and encourage theological schools to find ways to attract bright young people into the ministry.

n A 1974 grant of $250,000 inaugurated the Endowment’s commitment to the goals of the National Urban League. A 1998 grant of $25 million will strengthen its capabilities to promote and recognize academic achievement. L i l ly Endowment A n nual Repor t 5 1

Grants paid

In 1998 the Endowment paid out $424.0 million (see chart 2), its highest-ever total and $171.7 million over the previous high of $252.3 million in 1997. The 1998 figure put the Endowment’s total payout since its founding in 1937 at more than $2.4 billion. In the grants-paid category (see chart 4), the Education Division paid $196.5 million or 46.4 percent of the total; the Community Development Division paid $138.3 million, or 32.6 percent; the Religion Division paid $89.2 million or 21 percent. As in previous years, most of the grants paid went to organizations in Indiana – a total of $281.5 million or 66.4 percent (see chart 6). Of that total, $1 16.9 million or 27.6 percent went to Marion County (Indianapolis) grantees, and $164.6 million or 38.8 percent was paid to other Indiana grantees.

Grants ap p rove d

During 1998 the Endowment approved $496.3 million to 927 grantees, 288 of them new to the Endowment (see chart 3). Education Division grants accounted for the most dollars, $217.5 million or 43.8 percent of the total. Approvals for Community Development grants totaled $177.3 million or 35.7 percent, while the Religion Division approvals totaled $101.5 million or 20.5 percent (see chart 5). The geographic pattern for the grants-approved category mirrors the grants-paid category: $123.4 million or 24.9 percent for Marion County, $195.7 million or 39.4 percent for Indiana grantees outside Indianapolis (see chart 7). The total approvals for Indiana grants amounted to $319.1 mil- lion or 64.3 percent of the total. The non-Indiana grant approvals totaled $177.2 million or 35.7 percent. Since 1937 the Endowment has paid more than $2.4 billion in 18,303 grants to 4,750 grantees. Of that total, Community Development a c c o u n t s for $1.1 billion, Education for $829.5 million, and Religion for $508.6 million. Board-approved grants are listed in the back of this report. Discre- tionary grants of up to $7,500, approved by officers, are listed as a single line item for each division. The Endowment’s match for the charitable contributions of staff, retirees and Board members is reported as a single line item, just be- fore the total of all grants approved. Report of Independent Auditors

Board of Directors Lilly Endowment Inc.

We have audited the accompanying statements of financial position of Lilly Endowment Inc. as of December 31, 1998 and 1997, and the related statements of activities and changes in unrestricted net assets and cash flows for the years then ended. These financial statements are the responsibility of the Endowment's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lilly Endowment Inc. at December 31, 1998 and 1997, and the results of its changes in unrestricted net assets and cash flows for the years then ended in conformity with generally accepted accounting principles.

February 18, 1999 L i l ly Endowment A n nual R epor t 5 3

S TATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31 1 9 9 8 1 9 9 7

A S S E T S

Cash and equivalents ...... $ 4, 9 0 3 , 134 $ 6, 4 2 3 , 0 6 3 Investments — at fair value: United States government and agency, bank and corporate interest-bearing obligations — approximates cost...... 35 4 , 2 0 5 , 7 41 22 1,195 , 7 9 5 Eli Lilly and Company common stock (cost — $89,611,3 19 at December 31, 1998, and $90,036,648 at December 31, 199 7 ) ...... 15, 4 2 1,0 8 9 , 4 5 6 12, 4 76 , 0 5 9 , 74 7 Program-related investment ...... – 3, 0 0 0 , 0 0 0 Other assets...... 104 , 3 9 3 515, 6 5 3 $15 , 7 8 0 , 3 0 2 , 7 2 4 $ 12, 7 0 7 ,194 , 2 5 8

L I A B I L I T I E S

Amounts appropriated for future grants ...... $ 174, 3 6 6 , 2 8 2 $ 106 , 8 9 1,0 8 0 Federal excise tax payable ...... – 22 8 , 6 5 6 174, 3 6 6 , 2 8 2 107 ,119, 7 3 6

P R I N C I PAL AND UNRESTRICTED NET A S S E T S

Principal (Note 3) ...... 1,2 7 8 , 3 8 8 , 3 7 0 86 1,0 9 2 , 6 4 7 Unrestricted net assets...... 14, 3 2 7, 5 4 8 , 0 7 2 11,7 3 8 , 9 8 1,8 7 5 15, 6 0 5 , 9 3 6 , 4 4 2 12, 6 0 0 , 0 74 , 5 2 2 $15 , 7 8 0 , 3 0 2 , 7 2 4 $ 12, 7 0 7 ,194 , 2 5 8

See accompanying notes. 5 4 L i l ly Endowment A n nual Repor t

S TATEMENTS OF ACTIVITIES AND CHANGES IN UNRESTRICTED NET A S S E T S

YEAR ENDED DECEMBER 31 1 9 9 8 1 9 9 7

In c o m e : Di v i d e n d s ...... $ 141,7 5 8 , 4 9 4 $ 134 , 8 0 0 , 6 8 0 In t e r e s t ...... 17,5 4 5 , 5 6 1 7,3 6 5 , 0 3 4 Total income ...... 159 , 3 0 4 , 0 5 5 142 , 165 , 7 14

De d u c t i o n s : Grants approved ...... 49 5 , 0 7 8 , 198 22 8 , 9 8 2 , 8 4 5 Ex p e n s e s : Program support...... 6, 5 9 9 , 7 3 5 5, 5 5 8 , 5 0 2 Operational support:...... 3, 74 6 , 0 0 9 3, 144 , 2 5 9 Federal excise tax ...... 11,170 , 8 19 7,8 6 9 , 8 5 8 Total grants approved and expenses ...... 516, 5 9 4 , 7 61 24 5 , 5 5 5 , 4 6 4

Increase in unrealized appreciation of marketable securities . . . 2, 9 4 5 , 8 5 6 , 9 0 3 5, 7 61,2 3 3 , 4 3 9

Increase in unrestricted net assets ...... 2, 5 8 8 , 5 6 6 , 197 5, 6 5 7, 8 4 3 , 6 8 9 Unrestricted net assets: Balance at beginning of year ...... 11,7 3 8 , 9 8 1,8 7 5 6, 0 8 1,138 , 186 Balance at end of year ...... $14 , 3 2 7, 5 4 8 , 0 7 2 $1 1,7 3 8 , 9 8 1,8 7 5

See accompanying notes. L i l ly Endowment A n nual Repor t 5 5

S TATEMENTS OF CASH FLOW S

YEAR ENDED DECEMBER 31 1 9 9 8 1 9 9 7

Cash flows used for operating activities: Dividends and interest received...... $159 , 3 0 4 , 0 5 5 $142 , 165 , 7 14 Grants paid...... (4 2 4 , 6 0 2 , 9 9 6 ) (2 5 3 , 3 6 3 , 6 9 8 ) Program support...... (6 , 5 9 9 , 7 3 5 ) (5 , 5 5 8 , 5 0 2 ) Operational support ...... (3 , 6 4 0 , 6 3 0 ) (3 , 0 7 0 , 2 4 4 ) Federal excise tax ...... (1 1,4 0 0 , 153 ) (7, 6 3 6 , 8 6 2 ) Net cash used for operating activities...... (2 8 6 , 9 3 9 , 4 5 9 ) (12 7, 4 6 3 , 5 9 2 )

Cash flows from investing activities: Sale of Eli Lilly and Company stock ...... 417,7 2 1,0 5 2 26 6 , 9 14, 5 4 1 Purchase of interest-bearing obligations ...... (8 4 3 , 8 8 7, 8 8 1) (4 9 7, 3 6 6 , 3 4 0 ) Sale of interest-bearing obligations ...... 711,6 9 1,7 3 8 35 6 , 9 0 9 , 2 4 6 Investment-related expenses ...... (10 5 , 3 7 9 ) (74 , 0 15) Net cash from investing activities ...... 28 5 , 4 19, 5 3 0 126 , 3 8 3 , 4 3 2 Net decrease in cash ...... (1, 5 19, 9 2 9 ) (1, 0 8 0 , 160 ) Net cash and equivalents at beginning of year...... 6, 4 2 3 , 0 6 3 7,5 0 3 , 2 2 3 Net cash and equivalents at end of year...... $ 4, 9 0 3 , 134 $ 6, 4 2 3 , 0 6 3

See accompanying notes. 5 6 L i l ly Endowment A n nual Repor t

N OTES TO FINANCIAL STAT E M E N T S

DECEMBER 31, 1 9 9 8

1 . S I G N I F I C ANT ACCOUNTING POLICIES 2 . E M P L OYEE BENEFIT PLANS

Description of Organization The Endowment maintains an Employees’ Retirement Plan Lilly Endowment Inc. (the Endowment) is an Indianapolis-based, which is a noncontributory defined benefit plan covering all private philanthropic foundation created by three members of employees. As of December 31, 1998, the present value of accu- the Lilly family through gifts of stock in their pharmaceutical mulated plan benefits of the Employees’ Retirement Plan was business, Eli Lilly and Company. The stock of Eli Lilly and $1,368,111 and the market value of the assets was $2,554,215. Company continues to be the Endowment’s most significant The assumed rate of return used in determining the actuarial asset. The Endowment supports the causes of religion, education present value of plan benefits is eight percent. The Endowment’s and community development. The Internal Revenue Service contribution to the plan amounted to $695,067 and $538,888 has determined that the Endowment is exempt from federal in 1998 and 1997, respectively. income tax under Section 501(a) of the Internal Revenue Code. The Endowment also maintains an Employees’ Savings It remains a private foundation subject to federal excise tax on Plan which is a tax deferred annuity defined contribution plan. net investment income. The Endowment matches employee contributions up to a certain Income and Expenses limit as specified in the plan agreement. The Endowment’s co n t r i b u - Interest and dividend income is recorded as received, and operat- ti o n to the Lilly Endowment Employees’ Savings Plan amounted ing expenses are recorded as paid. The federal excise tax is accrued. to $394,075 and $371,564 in 1998 and 199 7 , respectively. Grants are recorded when approved by the Board of Directors. I nve s t m e n t s 3 . CHANGE IN PRINCIPAL BA L A N C E Investments are stated at fair value. Securities Gains and Losses The principal balance, which is unrestricted, increased in Gains and losses on disposals of Eli Lilly and Company com- 1998 by $417,295,723 representing net realized gains from mon stock are included in the principal balance, and gains sales of 5,675,000 shares of Eli Lilly and Company common and losses from other securities are included in income. The stock. Realized gains and losses are calculated using the first- change in unrealized appreciation of investments is included in, first-out method of allocating cost. in the unrestricted net assets balance. Facilities and Equipment 4 . R E QUIRED DISTRIBUTIONS Expenditures for facilities and equipment are expensed as paid. Use of Estimates The Internal Revenue Code provides that the Endowment Preparation of the financial statements requires management generally must distribute for charitable purposes five percent to make estimates and assumptions that affect the reported of the average market value of its assets. The Endowment amounts of assets, liabilities, income, expense, and related dis- must make additional qualifying distributions of approxi- closures at the date of the financial statements and during the mately $557,645,000 before January 1, 2000, to meet the 1998 reporting period. Actual results could differ from those estimates. minimum distribution requirements. 1998 GRAN T APP ROVALS

Pooch at Greene County Humane Society awaits new home. The society replaced old ken- nels and bought a minivan with GIFT funds. 5 6 Lilly Endowment Annual Report

Community Development Division Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8

American Enterprise Institute Council on Fo u n d a t i o n s for Public Policy Researc h Washington, DC Washington, DC 1998 membership dues 50,000 General operating support 100,000 E d y vean Repert o ry T h e a t re American National Red Cro s s Indianapolis, IN Washington, DC Transitional support related to location change 150,000 Disaster relief 5,000,000 Eiteljorg Museum of American A rts Council of Indianap o l i s Indians and Western A rt Indianapolis, IN Indianapolis, IN “Art and Soul at the Artsgarden” 75,000 Eiteljorg Award for Native American Fine Art 491,000 Creative Renewal Fellowship Program 469,500 Parking facility 3,250,000 General operating support 250,000 General operating support 1,147,500 Atlas Economic Research Fo u n d a t i o n Fairfax, VA F a m i ly Service Association of Central Indiana Economic education programs for Indianapolis, IN public policy groups in Latin America 500,000 Management system upgrade 50,000 Booth Tarkington Civic T h e a t re Indianapolis, IN Federalist Society for Law and Public Policy Studies Special projects 150,000 Washington, DC General operating support 125,000 Catholic Charities USA Alexandria, VA Fraser Institute Disaster relief 50,000 Vancouver, BC General operating support 300,000 C h i l d re n ’s Museum of Indianap o l i s Indianapolis, IN F reedom House National Children’s Film Festival 400,000 New York, NY General operating support 100,000 C I C OA Fo u n d a t i o n Indianapolis, IN Gleaners Food Bank of Indiana Support initiatives of CICOA (formerly:Gleaners Food Bank of Indianapolis) The Access Network in serving needy, Indianapolis, IN older citizens in central Indiana 200,000 Capital projects 316,000 C o m munity Organizations Legal Assistance Pro j e c t Goodwill Industries of Central Indiana Indianapolis, IN Indianapolis, IN General operating support 25,000 Employment and training program at Blue Triangle building 817,396 1998 Grant A p p r ova l s 5 7

Community Development Division Grants

DOLLAR AMOUNT A P P R OV E D I N 19 9 8

G reater Indianapolis Pro g ress Committee Indiana Donors A l l i a n c e Indianapolis, IN Indianapolis, IN General operating support 85,000 General operating support 139,200

H e a rtland Film Fe s t i v a l Indiana Donors Alliance Fo u n d a t i o n Indianapolis, IN Indianapolis, IN General operating support 89,500 Technical assistance to community foundations for GIFT initiative 666,420 Horizon House Indianapolis, IN Indiana Humanities Council Indianapolis, IN Homeless Support Services Center 750,000 Support for executive director search 45,000 Hudson Institute International programs 400,000 Indianapolis, IN General operating support 400,000 Indiana Leadership A s s o c i a t i o n Indianapolis, IN Publications and staff recruitment 400,000 Program planning 30,000 Independent Sector Washington, DC Indiana Opera Society Indianapolis, IN 1998 membership dues 10,500 General operating support 112,500 Indiana Agricultural Leadership Institute Danville, IN Indiana Parent Information Netwo r k Indianapolis, IN Agricultural Leadership Program 75,000 Upgrade of computer systems 25,000 Indiana Association for Community Economic Deve l o p m e n t Indiana Repert o ry T h e a t re Indianapolis, IN Indianapolis, IN General operating support 50,000 General operating support 270,000

Indiana Association of Cities Indiana Special Oly m p i c s and Towns Fo u n d a t i o n Indianapolis, IN Indianapolis, IN Development program 50,000 Consultant to develop fund-raising strategies 30,000 Indiana Sports Corporation Indiana Association of United Way s Indianapolis, IN Indianapolis, IN Research on fund-raising development Continuation of Project Giant for amateur-sports governing bodies 110,000 Step (Phase III) 820,700 Operating support, rent relief for amateur- sports governing bodies, youth Indiana Civil Liberties Union programming and transitional support 1,269,000 Indianapolis, IN Publication of Welfare Reform in Indiana: A Practitioner’s Desk Book 20,000 5 8 Lilly Endowment Annual Report

Community Development Division Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8

Indiana State Symphony Society I n d i a n apolis Neighborhood Indianapolis, IN Housing Part n e r s h i p Indianapolis, IN General operating support 1,125,000 Administration, housing Renovation project 1,250,000 counseling, loan pools, support for community development corporations Indiana University Fo u n d a t i o n and community partnerships 2,596,100 Bloomington, IN Housing Task Force 50,000 Publication of Indiana Blacks Operating support for in the Twentieth Century 25,000 neighborhood coordinators 165,885 Transitional support for Eastside I n d i a n a - World Skating A c a d e my Community Investments projects 240,000 Indianapolis, IN Capital and general operating support 250,000 I n d i a n apolis Neighborhood R e s o u rce Center I n d i a n apolis Ballet T h e a t re Indianapolis, IN Indianapolis, IN General operating support 190,000 General operating support 150,000 I n d i a n apolis Private Industry Council I n d i a n apolis Chamber Indianapolis, IN of Commerce Fo u n d a t i o n Workforce and economic development Indianapolis, IN conference 49,000 Continuing support for development task force 35,000 I n d i a n apolis Zoological Society Indianapolis, IN I n d i a n apolis Childre n ’s Choir General operating support 1,015,200 Indianapolis, IN Special projects 130,000 Institute for Contemporary Studies San Francisco, CA I n d i a n apolis Department of Parks General operating support and Recre a t i o n for Indianapolis public-housing program 183,315 Indianapolis, IN Rehabilitation of playgrounds Institute for Research at Indianapolis Housing Authority complexes 584,130 on the Economics of Ta x a t i o n Washington, DC I n d i a n apolis Humane Society General operating support 75,000 Indianapolis, IN Capital campaign for isolation I n t e rcollegiate Studies Institute and treatment facility 100,000 Wilmington, DE General operating support 100,000 I n d i a n apolis Museum of A rt Indianapolis, IN International Center of Indianap o l i s Acquisition of paintings and prints Indianapolis, IN of School of Pont-Aven 20,000,000 General operating support General operating support 450,000 and relocation expenses 345,000 1998 Grant A p p r ova l s 5 9

Community Development Division Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8

Keep Indianapolis Beautiful N ew Harmony Pro j e c t (formerly: Indianapolis Clean City Committee) Indianapolis, IN Indianapolis, IN General operating support 45,000 Project 180 Degrees/IPL Revive Strategic planning 60,000 a Neighborhood Program 138,820

Pacific Research Institute Kansas University Endowment A s s o c i a t i o n for Public Po l i c y Lawrence, KS San Francisco, CA Economics Institutes General operating support 150,000 for State Judges program 285,000

Political Economy Research Center Local Initiatives Support Corporation Bozeman, MT New York, NY General operating support 50,000 Indianapolis LISC program 500,000

Reason Fo u n d a t i o n Madame Wa l ker Urban Life Center Los Angeles, CA Indianapolis, IN General operating support 225,000 General operating support and special projects 500,000 Continuation of national clearinghouse on privatization of state and local governmental functions 125,000 Manhattan Institute for Policy Researc h New York, NY Rehab Resourc e General operating support 317,000 Indianapolis, IN General operating support 100,000 Master Scholars Indianapolis, IN Salvation A r my Matching grant for program support 25,000 Alexandria, VA Disaster relief 500,000 National Association for Community Leadership Indianapolis, IN Second Helpings Reorganization and board development Indianapolis, IN initiatives 94,500 Start-up and general support for food-collection and job-training program 40,000 National Center for Policy A n a ly s i s Dallas, TX Social Philosophy and Policy Fo u n d a t i o n General operating support 150,000 Bowling Green, OH General operating support 100,000 National Congress for Community Economic Deve l o p m e n t Washington, DC S t a n fo rd Unive r s i t y Stanford, CA Preparation of Fourth National Census on Community Economic Development 20,000 General operating support for Stanford’s Hoover Institution 125,000 6 0 Lilly Endowment Annual Report

Community Development Division Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8 S TAR A l l i a n c e Community Foundation Indianapolis, IN GIFT Initiative (Phase III) Dissemination of Substance Abuse in Rural Indiana: A Profile for Action 12,500 Matching grants for start-up and expansion of Indiana community foundations, United Way of Central Indiana plus optional direct, nonmatching grants Indianapolis, IN for community projects 1998 Campaign 3,750,000 Adams County Community Fo u n d a t i o n 1,000,000 Transitional funding for agencies negatively affected by unanticipated B l a c k fo rd County Fo u n d a t i o n 1,000,000 changes in 1999 allocation process and/or governmental funding 900,000 B rown County Community Fo u n d a t i o n 100,000 Strengthen Forever Fund (endowment) 50,000,000 Brown County Community Facilities Maintenance Fund 618,570 YMCA (Nashville) New building 700,000 General operating support for Central Indiana Regional Citizens League 300,000 Brown County Public Library (Nashville) Homelessness Continuum New library 200,000 Targeted Initiative Fund 2,717,000 Moving to Community Impact, Central Indiana Community Foundation a new planning, evaluation and affiliate fund: fund-distribution system 86,500 Legacy Fund (Hamilton County) 1,000,000 SAVI Phase III (human services database) 896,000 Targeted Initiatives Fund 550,000 C o m munity Foundation Alliance affiliate funds: United Christmas Service 40,000 D aviess County Community Fo u n d a t i o n 750,000 Daviess County Fair (Elnora) U n i versity of Southern Indiana Replacement of livestock building Evansville, IN and show arena 50,000 General operating support Frank Roberts Youth League (Odon) for Historic New Harmony 125,000 Renovation of sports facility 65,000 Odon-Winkelpleck Public Library Y M CA of Greater Indianap o l i s (Odon) Indianapolis, IN Addition to library 70,000 Replacement of management Washington Little League information system 225,000 Lighting and bleachers for fields 65,000

Young Audiences of Indiana Gibson County Community Fo u n d a t i o n 300,000 Indianapolis, IN Gibson County Fair Grounds Pavilion Arts Partners 95,000 (Princeton) Design and construction “Technology, Education & Arts” programs 45,000 of multipurpose facility 225,000 Gibson County Step Ahead Council (Princeton) Child-care program 50,038 1998 Grant A p p r ova l s 6 1

Community Development Division Grants

DOLLAR AMOUNT A P P R OV E D I N 19 9 8

Indiana Lions Trust Fund Spencer County Community Fo u n d a t i o n 250,000 (Indianapolis) Chrisney Baptist Church Playground equipment for 8 Community day-care center 75,995 communities (Hazelton, Oakland City, Francisco, Fort Branch, Old Rockport (Rockport) Haubstadt, Owensville, Princeton Restoration of Lincoln Pioneer Village 150,000 and Patoka) 119,686 Spencer County Emergency Oakland City University Ambulance Services (Dale) Restoration of historic Cockrum Hall 85,276 Fire and emergency ambulance station 275,200 Union Townships Gibson County Town of Chrisney (Fort Branch) Addition to firehouse 175,000 Construction of ambulance base Town of Grandview and purchase of equipment 220,000 Fire and rescue upgrade 73,805

K n ox County Community Fo u n d a t i o n 1,000,000 Vanderburgh County Community Fo u n d a t i o n 750,000 Pe rry County Community Fo u n d a t i o n 500,000 American Red Cross, Evansville Chapter Strategies for disaster-resistant Central Perry Volunteer community 50,000 Fire Department (Leopold) Firetruck and equipment 175,000 Habitat of Evansville 10 Habitat homes 50,000 Dollars for Scholars of Tell City Expansion of scholarship/loan program 100,000 Leadership Evansville New Center for Collaborative Leadership 50,000 Perry County Arts Council (Tell City) Building renovation United Caring Shelters (Evansville) and computer equipment 75,000 Transitional housing project 50,000 Perry County 4-H Fairgrounds YMCA of Southwestern Indiana Committee (Cannelton) (Evansville) Renovation of community building 150,000 Computers for literacy center 50,000

Po s ey County Community Fo u n d a t i o n 250,000 Wa rrick County Community Fo u n d a t i o n 750,000 Children’s Learning Center American Red Cross-Warrick County of Posey County (Mount Vernon) Chapter (Boonville) Construction of classrooms 325,000 Implementation of disaster action teams 50,000 Consolidated School Town Boonville-Warrick County Public Library of New Harmony- Renovation of library and Internet access 50,000 Harmony Township Bread of Life Ministry (Lynnville) Computers for school labs 50,000 Volunteer outreach program 50,000 Cynthiana Area Recreation and Town of Lynnville Environmental Firefighting apparel and emergency Playground equipment equipment 50,000 and shelter house 116,713 Warrick County 4-H Clubs (Boonville) Posey County 4-H Fair Associates Building renovations 50,000 (Mount Vernon) Construction of community center 200,000 Poseyville Carnegie Library Renovations and furniture 58,287 6 2 Lilly Endowment Annual Report

Community Development Division Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8

C o m munity Foundation of Bloomington C o m munity Foundation of Madison and Monroe County 600,000 and Je f ferson County affiliate fund: Bloomington Area Arts Council Switzerland County Community Fo u n d a t i o n 200,000 Restoration of Indiana Theatre 100,000 Switzerland County Housing Boys & Girls Club of Bloomington Development Corporation (Vevay) Building renovation and van purchase 50,000 Housing assistance to low-income residents 125,000 Monroe County Historical Society Museum (Bloomington) Switzerland County 4-H Club (Vevay) “Build History Phase II” project 100,000 Renovation of community building and improvements to Little League Monroe County United Ministries baseball park 100,000 (Bloomington) Expansion of day-care facility 100,000 Switzerland County School Corporation (Vevay) WonderLab: Museum of Science, Computer equipment for 2 Health & Technology (Bloomington) elementary schools 150,000 Construction of hands-on museum 50,000 Town of Patriot Emergency fire equipment 300,000 C o m munity Foundation of How a rd County affiliate fund: Town of Vevay Repairs to sidewalks and C a rroll County Community Fo u n d a t i o n 200,000 improvements to public park 125,000 Carroll County Sheriff’s Office (Delphi) C o m munity Foundation of Randolph County 590,000 Emergency equipment 255,000 Farmland/Monroe Township Carroll County Wabash and Erie Canal Conservation Club (Farmland) (Delphi) Youth conservation planting project 50,000 Purchase of land and construction of community center 220,000 Jay-Randolph Developmental Services (Winchester) Delphi Public Library Purchase of vans 60,000 Purchase of land for combined community center and library 50,000 Preservation Society of Union City Street lighting in historic downtown 50,000 Town of Burlington Improvement and expansion Randolph County Commissioners of community park 175,000 (Winchester) Defibrillators for law enforcement 50,000 YMCA Camp Tecumseh (Brookston) Construction of nature center 100,000 YMCA of Randolph County (Winchester) Construction of indoor swimming pool 200,000 C o m munity Foundation of Jackson County 1,000,000 C o m munity Foundation C o m munity Foundation of Madison of Saint Joseph County 1,000,000 and Je f ferson County 1,000,000 C o m munity Foundation of Southern Indiana affiliate funds: C r aw fo rd County Community Fo u n d a t i o n 850,000 Crawford County 4-H Council (English) Facility needs 50,000 Crawford County Little League (Marengo) Equipment and facility needs 50,000 1998 Grant A p p r ova l s 6 3

Community Development Division Grants

DOLLAR AMOUNT A P P R OV E D I N 19 9 8

Crawford County Youth Program E l k h a rt County Community Fo u n d a t i o n (Marengo) Boys & Girls Club of Goshen Furnishings for new day-care center 50,000 Capital campaign 100,000 RiverWalk Association (Elkhart) Scott County Community Fo u n d a t i o n 500,000 Construction of RiverWalk 100,000 Scott County Economic Development Corporation (Scottsburg) F ayette County Fo u n d a t i o n 750,000 Lifelong Learning Center 500,000 Connersville Babe Ruth Improvements to facilities 50,000 C ovington Community Foundation ( Fountain County) Fayette Community Council on Aging and Aged (Connersville) City of Attica 2 new vans 50,000 Renovation of city pool 50,000 I.V. Tech Foundation (Indianapolis) Community Action Program Industrial apprenticeship laboratory of Western Indiana (Covington) for Fayette County 50,000 Establishment of industrial development park 100,000 Regenstrief Boys & Girls Club (Connersville) Building renovation and equipment 100,000 C ovington Community Foundation affiliate fund: Wa rren County Community Fo u n d a t i o n 500,000 Franklin County Community Fo u n d a t i o n 200,000 Community Action Program Drewersburg Volunteer of Western Indiana (Covington) Fire Department (West Harrison) Establishment of industrial New pumper firetruck 150,000 development park 500,000 Saint Michael Church (Brookville) School improvements 150,000 C rown Point Community Foundation ( L a ke County) 350,000 United Way of Franklin County New Northwestern Franklin Dearborn County Community Fo u n d a t i o n 1,000,000 County Community Center (Brookville) 125,000 Furnishings for new Laurel Decatur County Community Fo u n d a t i o n Community Library (100,000) and Decatur County Day Care Center renovations to Brookville (Greensburg) Library (150,000) 250,000 Construction of child-care center 175,000 Renovation of Oldenburg Community Decatur County Family YMCA Center and Fire House 125,000 (Greensburg) Capital campaign 750,000 G reater Lafayette Community Foundation Decatur County Parks and Recreation affiliate funds: Department (Greensburg) Benton County Community Fo u n d a t i o n 950,000 Construction of youth sports-complex main building 75,000 Town of Fowler Improvements to park pool 50,000 DeKalb County Community Fo u n d a t i o n 1,000,000

Dubois County Community Fo u n d a t i o n 7 5 0 , 0 0 0 6 4 Lilly Endowment Annual Report

Community Development Division Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8

White County Community Fo u n d a t i o n 580,000 Warren Area Residents for Recreational Educational Needs (WARREN) White County Agricultural Capital improvements Association (Monticello) to Knight Civic Center 95,000 Renovation of 4-H exhibit hall 100,000 White County Council on Aging Huntingburg Foundation (Dubois County) 150,000 (Monticello) Furnishings and landscaping City of Huntingburg of new senior center 50,000 Restoration of Youth Center 100,000 White County Historical Society (Monticello) Jasper Fo u n d a t i o n 100,000 Restoration of historical sites 145,000 Boys & Girls Club of Jasper County White County Literacy (Rensselaer) Volunteers of America (Monticello) Construction of Rensselaer Child Care Literacy programs for adults 50,000 and Boys & Girls Club 350,000 White County United Way Historic Landmarks Foundation (Monticello) of Indiana (Indianapolis) Start-up of White-Carroll Restoration of Carnegie Center Family YMCA 75,000 (Rensselaer) 375,000 Remington Park and Recreation Board G reene County Fo u n d a t i o n 250,000 Expansion and upgrade of park 50,000 4-H Clubs of Greene County Town of DeMotte (Bloomfield) Park pedestrian and bicycle path 125,000 Improvements to fairgrounds 405,000 Greene County Humane Society Jasper Foundation affiliate fund: (Linton) N ewton County Community Fo u n d a t i o n 200,000 Building renovation, program support and van purchase 73,500 Beaver Civil Township (Morocco) Fire department building project 211,000 Shawnee Summer Theatre of Greene County (Bloomfield) Newton County Commissioners Building renovations and equipment 271,500 (Kentland) Countywide alert system 125,000 Heritage Fund of Huntington County 4 0 0 , 0 0 0 Town of Brook Community and senior citizens center 200,000 Historic Forks of the Wabash (Huntington) Town of Goodland Improvements to historic park 60,000 Purchase of new firetruck 104,000 Huntington Catholic School Town of Kentland Computer equipment Improvement of downtown area 160,000 and computer training 140,000 Huntington County 4-H Fair Association Jennings County Community Fo u n d a t i o n 557,940 New community center 250,000 Hayden Historical Museum Huntington County Habitat Construction of community center for Humanity (Andrews) and upgrade of museum’s technology 83,500 Construction of houses 55,000 Jennings County Family YMCA (North Vernon) Program support 100,000 1998 Grant A p p r ova l s 6 5

Community Development Division Grants

DOLLAR AMOUNT A P P R OV E D I N 19 9 8

Jennings County Historical Society Town of Paoli (Vernon) New firetruck and first-response Renovation of museum 108,560 unit for fire department 100,000 Jennings County Senior Resources (North Vernon) Legacy Foundation (Lake County) 650,000 Renovation of senior center 50,000 Marshall County Community Foundation 1,000,000 Park Theatre Civic Center (North Vernon) M o n t go m e ry County Community Fo u n d a t i o n 500,000 Renovation of downtown theater 100,000 Boys & Girls Club of Montgomery County Construction of new facility 500,000 LaGrange County Community Fo u n d a t i o n 1,000,000

L aw rence County Community Fo u n d a t i o n 575,000 M o o resville Community Foundation (Morgan County) 5 0 , 0 0 0 Bedford Foundation for Youth Outdoor recreational facilities 75,000 Mooresville Girls Junior Basketball League Bedford Urban Enterprise Association Restoration of historic gym 77,150 Defibrillators for volunteer fire departments 58,000 Morgan County Historical Society (Mooresville) Lawrence County 4-H Clubs and Fair Restoration of Academy Building 417,150 Association (Bedford) Construction of community conference center 71,000 Morgan County Fo u n d a t i o n 100,000 Limestone Girls Club (Bedford) Barbara B. Jordan YMCA (Martinsville) Construction of new indoor Improvements to existing facility 167,550 and outdoor facility 150,000 Coordinated Aging Services Little Theatre of Bedford for Morgan County (Martinsville) Improvement and expansion Replacement of vehicles used of theater building 71,000 to transport senior citizens 128,150 Martinsville Area Senior Citizens L aw rence County Community Center Foundation affiliate fund: Expansion of facility 60,000 Orange County Community Fo u n d a t i o n 250,000 N o rthern Indiana Community Older Americans Services (Orleans) Foundation affiliate funds: Improvements to facility 58,000 Cass County Community Fo u n d a t i o n 500,000 Orange County Child Care Cooperative (Paoli) Cass County 4-H Association Youth service and community (Logansport) education center 342,000 Construction of new multipurpose center 169,317 Orange County Rehabilitative & Developmental Services (Paoli) Cass County Historical Society Facility improvement, van purchase (Logansport) and program enhancement 150,000 Improvements to log cabins and museum 65,683 Paoli Community School Corporation Elementary school playground equipment 100,000 6 6 Lilly Endowment Annual Report

Community Development Division Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8

Logan’s Landing Association S t a r ke County Community Fo u n d a t i o n 200,000 (Logansport) Friends of the Starke County Revitalization and facade improvement 215,000 Public Library (Knox) Logansport Art Association Youth and preteen library collection 64,000 Start-up costs for new Arts Council 50,000 Hoosier Valley Railroad Museum (North Judson) Fulton County Community Fo u n d a t i o n 600,000 Construction of railway depot 149,000 Fulton County Soccer Association Starke United Inc. (Rochester) Agri-Science Academy Partnership Construction of multiuse sports facility 140,000 (Knox) 200,000 Fulton County United Way (Akron) SCILL Center computer project Revitalization of downtown area 100,000 (Knox) 250,000 Indiana Lions Trust Fund (Indianapolis) Starke County Resource Initiative Upgrade of Union Township Project (Knox) 137,000 Community Park (Kewanna) 60,000 Leiters Ford United Methodist Church Ohio County Community Fo u n d a t i o n 400,000 Construction of new community center 100,000 City of Rising Sun Riverfront erosion control 330,000 Miami County Community Fo u n d a t i o n 350,000 Ohio County Historical Society Circus City Festival (Peru) (Rising Sun) Improvements to museum Restoration of museum 270,000 and arena facilities 92,000 Miami County 4-H Club and O wen County Community Fo u n d a t i o n 250,000 Livestock Show Association (Peru) Franklin Township Community New 4-H Community Center 220,000 Fire Department (Spencer) Miami County Historical Society (Peru) Emergency medical equipment 99,980 Microfilm preservation Owen County Association for the of local newspapers 55,000 Retarded (Spencer) Miami County YMCA (Peru) Capital improvements 60,000 Renovation of Miller Pool 173,000 Owen County 4-H Council (Spencer) Peru-Miami County Economic Construction of 2 Development Corporation multipurpose buildings 161,085 Park equipment (Miami County) 110,000 Owen Valley Sports Complex (Spencer) Construction of gymnasium 270,000 Pulaski County Community Fo u n d a t i o n 100,000 Spencer-Owen County Economic Arrow Head Country Resource Development (Spencer) Conservation and Development Area Habitat for Humanity projects, (Winimac) installation of filtering system and Enhancement projects for restoration of Gosport Museum 158,935 rural recreation and tourism 397,687 Pulaski Health Foundation (Winimac) P a r ke County Community Fo u n d a t i o n 1,000,000 New firehouse 83,198 Thermal imaging equipment 121,103 Po rter County Community Fo u n d a t i o n 1,000,000 West Central Schools Educational Foundation (Francesville) Initiatives for technology project 298,012 1998 Grant A p p r ova l s 6 7

Community Development Division Grants

DOLLAR AMOUNT A P P R OV E D I N 19 9 8

Putnam County Fo u n d a t i o n 250,000 Friends of the Tipton County Library (Tipton) Big Walnut Sports Park (Greencastle) Computer center 57,611 Expansion of recreational facilities 410,000 Tipton County Council on Aging (Tipton) Friends of the Park Association Furniture and activity equipment of Putnam County (Greencastle) for senior center 42,389 Construction of recreational trail 110,000 Tipton County 4-H Council (Tipton) Greencastle-Putnam County Construction of multipurpose building 50,000 Development Center Renovation of community center 180,000 Tipton County Historical Society (Tipton) Putnam County Youth Development New Heritage Center 200,000 Commission (Greencastle) Needs assessment for youth initiatives 50,000 Union County Fo u n d a t i o n 100,000 R i p l ey County Community Fo u n d a t i o n 6 0 0 , 0 0 0 Christian Community Co-operative Closet (Liberty) Ripley County Department Playground and day-care equipment 88,000 of Parks and Recreation (Osgood) Renovation of grandstand College Corner Community Club and replacement of stage 138,000 (West College) Upgrades to baseball park 216,000 Ripley County Historical Society (Versailles) Union County 4-H Association (Liberty) Renovation of Annex Building 57,000 Building improvements at 4-H Fairgrounds 221,000 Southeastern Career Center (Versailles) Computer lab for high school Union County Historical Society and adult students 75,000 (Liberty) Preservation of historical assets 175,000 Town of Milan Improvements to playground Union County T-Ball & Girls Softball and addition of baseball diamond 60,000 Association (Liberty) Improvements to baseball park 200,000 Town of Sunman Purchase of firetruck and related equipment 70,000 Vermillion County Community Fo u n d a t i o n 200,000 Noah’s Ark Daycare and Preschool Rush County Community Fo u n d a t i o n (Cayuga) Program expansion 75,000 City of Rushville New public swimming pool 600,000 Parke-Vermillion County Humane Society (Clinton) Rush County Historical Society New animal shelter 200,000 (Rushville) Restoration and renovation South Vermillion School Corporation of society’s museum 75,000 (Clinton) Support for alternative school 200,000 Rushville Public Library Renovation of library 75,000 Town of Cayuga Equipment for volunteer fire department 200,000 Steuben County Community Fo u n d a t i o n 1,000,000 Valley Day Care (Clinton) Tipton County Fo u n d a t i o n 500,000 Renovation of existing facility 125,000 Boys & Girls Club of Tipton County (Tipton) Equipment for new facility 150,000 6 8 Lilly Endowment Annual Report

Community Development Division Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8

Wabash Va l l ey Community Foundation White Lick Heritage Community Fo u n d a t i o n 500,000 affiliate funds: Hendricks County Senior Services C l ay County Community Fo u n d a t i o n 6 0 0 , 0 0 0 (Danville) Bowling Green Old Settlers Reunion Expansion and repairs to senior center 104,000 Construction of new community center 50,000 North West Hendricks School Clay County 4-H Council (Brazil) Corporation (Lizton) Renovation of building and grounds 50,000 Renovation of one-room school building 100,000 YMCA of Clay County (Brazil) Town of Amo Capital campaign 300,000 Upgrade of facilities and emergency aid equipment 213,900 Town of Danville Sullivan County Community Fo u n d a t i o n 400,000 Construction of PlayScape 82,100 Growth in Fairbanks Township (Fairbanks) Conversion of old schoolhouse into community center 50,000 W h i t l ey County Community Fo u n d a t i o n 1,000,000 Sullivan County Commissioners Construction of ambulance barn (Sullivan) 120,000 H o l i d ay Assistance Fund Improvements to fairgrounds (Sullivan) 130,000 (11 grants ranging from $500 to $45,000) 127,800 Recycling facility (Sullivan) 50,000 Catholic Social Services YMCA of Terre Haute Community Action of Greater Indianapolis Establishment of a YMCA in Sullivan County 250,000 Flanner House Indiana Black Expo Washington County Community Fo u n d a t i o n 500,000 Indianapolis Jaycee Charities Awareness Washington County (Salem) Indianapolis Urban League Expansion of leadership program 50,000 Lawrence Kiwanis Sunrise Club Eastern High School (Pekin) Alternative continuing education New Covenant Church & Ministries program 50,000 (formerly: Love Christian Fellowship Church) Salem/Washington Township Public Salvation Army Library (Salem) United Northwest Area Renovation and expansion of library 160,000 United Way of Central Indiana Washington County Historical Society (Salem) Construction of railroad exhibition building 160,000 Subtotal - Community Development Washington County War Memorial Division Grants 177,161,536 (Salem) Construction of war memorial 80,000 Community Development Division Discretionary Grants 142,922

Wayne County, Indiana Foundation 1,000,000

Wells County Fo u n d a t i o n Total - Community Development Division Grants 177,304,458 Wells County Historical Society (Bluffton) Restoration and preservation of museum 50,000 1998 Grant A p p r ova l s 6 9

Education Division & Youth Programming Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8

Butler Unive r s i t y P a rent Powe r Indianapolis, IN Indianapolis, IN Continuation of “Reading for Real” project 49,983 TeleParent project for Marion County schools 15,000 Strengthening the connection between service and learning for member schools Pe rry Township Education Fo u n d a t i o n of Indiana Campus Compact consortium 1,066,817 Indianapolis, IN Expansion of Indiana sites Earlham College for the JASON Project, a worldwide, Richmond, IN interactive science curriculum and network 620,000 Recruitment, retention and placement of Indiana students 3,178,750 P u rdue Research Fo u n d a t i o n West Lafayette, IN Independent Colleges of Indiana Indianapolis, IN Establishment of Center for Education and Research in Information Assurance Administration of Lilly Endowment Security (CERIAS) 4,928,758 Community Scholarship Program 577,590 Lilly Endowment Community United Negro College Fund Scholarship Program 5,800,000 Fairfax, VA Renewal of program to recognize Lilly Endowment Historically Black achievement by first-generation Indiana College and University Program college students 139,532 to strengthen private HBCUs in areas Retention database and action of capital needs, student scholarships research program for colleges and and/or faculty development 41,711,774 universities 2,000,000 1999 Indianapolis telethon and Workshops for trustees of private fund-raising program 70,000 colleges and universities 60,000

Indiana State Unive r s i t y Terre Haute, IN Teacher Creativity Fe l l owship Pro g r a m Extending Teacher Creativity 1999: Competitive summer program for renewal A Summer Workshop on Integration, of Indiana public school teachers Collaboration and Instructional (80 grants of $5,000 each) 400,000 Technology 84,000 1998 Initiative for Selected Marion County Indiana Student Financial Aid A s s o c i a t i o n Private Schools (supplemental) Indianapolis, IN (3 matching grants for College Goal Sunday 1999 66,125 academic capital projects — $1,100,000) Children’s House 100,000 N ew American Schools Sycamore School 500,000 Arlington, VA Westside Christian School 500,000 Comprehensive, national school-reform designs 500,000 7 0 Lilly Endowment Annual Report

Education Division & Youth Programming Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8

S t rengthening Institutions Program Indiana College Pre p a r a t o ry Pro g r a m for Independent Historically Black (36 planning grants in Colleges and Unive r s i t i e s competitive program — $570,000) Competitive program to Ancilla College 15,000 strengthen historically black colleges and universities (12 grants — $2,387,458) Anderson University 15,000 Bethune-Cookman College 200,000 Ball State University 15,000 Dillard University 196,020 Bethel College 15,000 Hampton University 200,000 Butler University 15,000 Jarvis Christian College 200,000 Calumet College of Saint Joseph 15,000 LeMoyne-Owen College 194,315 DePauw University 15,000 Rust College 200,000 Earlham College 15,000 Spelman College 200,000 Goshen College 15,000 Tuskegee University 200,000 Grace College 15,000 Virginia Union University 199,890 Hanover College 15,000 Wilberforce University 197,250 Holy Cross College 15,000 Wiley College 200,000 Huntington College 15,000 Xavier University of Louisiana 199,983 Indiana Institute of Technology 15,000 Indiana State University 15,000 S t rengthening Institutions Program Indiana University Foundation 25,000 for Independent Colleges and Universities in Indiana Indiana Wesleyan University 15,000 Competitive program to Ivy Tech State College 25,000 strengthen private Indiana colleges Manchester College 15,000 and universities (12 grants — $2,270,784) Marian College 15,000 Earlham College 199,989 Martin University 15,000 Franklin College 199,820 Oakland City University 15,000 Huntington College 152,900 Purdue University 25,000 Indiana Institute of Technology 200,000 Rose-Hulman Institute of Technology 15,000 Oakland City University 200,000 Saint Joseph’s College 15,000 Rose-Hulman Institute of Technology 200,000 Saint Mary-of-the-Woods College 15,000 Saint Joseph’s College 199,620 Saint Mary’s College 15,000 Saint Mary-of-the-Woods College 169,500 Taylor University 15,000 Saint Mary’s College 199,955 Tri-State University 15,000 Tri-State University 149,000 University of Evansville 15,000 University of Evansville 200,000 University of Indianapolis 15,000 Wabash College 200,000 University of Notre Dame 15,000 University of Southern Indiana 15,000 1998 Grant A p p r ova l s 7 1

Education Division & Youth Programming Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8

Valparaiso University 15,000 Earlham College (2) Social science building 5,000,000 Vincennes University Foundation 15,000 Science complex 1,000,000 Wabash College 15,000 Franklin College Creative learning and fine Indiana College Pre p a r a t o ry Program arts center 2,500,000 (20 implementation grants Goshen College in competitive program — $21,899,994) Music building 5,000,000 Anderson University 999,155 Grace College Butler University 999,997 Residential living/learning center 2,343,000 Earlham College 1,000,000 Hanover College (2) Science building 5,000,000 Franklin College 611,720 Science equipment 978,930 Goshen College 811,544 Huntington College (3) Hanover College 275,250 Science building 5,000,000 Huntington College 850,000 Renovation of academic building 1,700,000 Indiana Institute of Technology 760,187 Residence hall 1,000,000 Indiana University Foundation 3,000,000 Indiana Institute of Technology Indiana Wesleyan University 754,259 Residence hall 5,000,000 Ivy Tech State College 2,999,575 Indiana Wesleyan University (2) Science hall 5,000,000 Manchester College 866,319 Library 2,500,000 Marian College 982,580 Manchester College (2) Martin University 1,000,000 Science building 5,000,000 Oakland City University 1,000,000 Academic computing system 722,556 Rose-Hulman Institute of Technology 1,000,000 Martin University Saint Mary’s College 999,820 New educational center 5,000,000 Taylor University 997,953 Oakland City University Student life center 4,184,227 University of Indianapolis 999,644 Rose-Hulman Institute of Technology Vincennes University Foundation 991,991 Residence hall 5,000,000 Taylor University (2) C apital Improvement Program Student service center 4,880,000 for Indiana’s Independent Colleges and Unive r s i t i e s Library 2,500,000 (27 grants in competitive program — $90,658,713) University of Saint Francis (2) Health science building 4,650,000 Anderson University Residence hall 2,500,000 Renovation of academic building 2,400,000 Bethel College Wabash College New academic building 5,000,000 Science equipment 1,000,000 Butler University (2) Arts center 5,000,000 Pharmacy building 800,000 7 2 Lilly Endowment Annual Report

Education Division & Youth Programming Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8 Youth Programming Girls Incorporated New York, NY American Youth Policy Fo r u m Refurbishing of Girls Inc. Washington, DC National Resource Center (Phase I) 290,415 Publication and dissemination of report on effective youth programs 50,000 G u a rdian Home Fo u n d a t i o n Indianapolis, IN Bicycle Action Pro j e c t Capital campaign for Indianapolis, IN renovation of Marion County Children’s Guardian Home 2,500,000 General operating support and capital funds 115,000 Indiana Amateur Baseball 1999 general operating support 87,500 A s s o c i a t i o n Indianapolis, IN B oy Scouts of A m e r i c a General operating support and expansion Indianapolis, IN of summer youth baseball program 112,000 General operating support for 1998 urban scouting programs and new after- Indiana Black Expo school initiative 107,250 Indianapolis, IN Capital campaign 5,000,000 General operating support for youth programs, strategic planning and African Center for Leadership American Male Initiative minigrants 325,000 D eve l o p m e n t Indianapolis, IN Indiana FFA Fo u n d a t i o n Strategic planning and new video Trafalgar, IN for recruitment and development 25,000 Development and capital funding 607,000 1999 general operating support 214,000 Indiana Youth Institute Center for Youth As Resourc e s Indianapolis, IN Washington, DC Assessment of employment Strategic planning, evaluation status of Indiana youthworkers 50,000 and general operating support 530,000 Marion County Commission C h i l d re n ’s Bureau of Indianap o l i s on Yo u t h Indianapolis, IN Indianapolis, IN Expansion of Indiana General operating support 85,000 Child Development Institute 50,000 Strategic planning 22,237 National Center for Strategic Nonprofit Planning and Community Leadership Washington, DC C h i l d re n ’s Express Fo u n d a t i o n Washington, DC Participation of Indianapolis’ Father Resource Center in national project Support for Indianapolis bureau 125,000 to improve fatherhood programs and child-support policy 50,000 1998 Grant A p p r ova l s 7 3

Education Division & Youth Programming Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8

National Council of Jewish Wo m e n - Teen Tr a c k I n d i a n apolis Section Indianapolis, IN Indianapolis, IN Strategic planning and evaluation 50,000 Printing of updated Youth Yellow Pages 14,000 United Way of Central Indiana National Urban Fe l l ow s Indianapolis, IN New York, NY General operating support and Two urban fellowships and fund-raising partial staffing of Youth As Resources activities in Indiana 106,000 programs in central Indiana 214,873

National Urban League Urban Research Planning New York, NY and Confe rence Center Mount Kisco, NY Campaign for African-American Achievement, implementation Institutional renewal program for of Thurgood Marshall Achievers youth-serving organizations; support Society, and student scholarships 25,000,000 for minority youth-serving groups and preparation and distribution of handbook 44,900 Planned Parenthood of Central and Southern Indiana Indianapolis, IN Villages of Indiana Indianapolis, IN Teen Peer Educator program 50,000 Support for statewide training General support for Brotherhood program, initiative in special-needs adoption 145,985 Now for the Future program and van purchase 100,000 W i s h a rd Memorial Fo u n d a t i o n Indianapolis, IN Police Athletic League of Indianap o l i s Indianapolis, IN General operating support for Father Resource Center 200,000 General operating support, matching support for van purchase, board planning and civilian staff development 140,000 Summer Youth Pro g r a m Ruth Lilly Center for Health Education Grants for organizations providing Indianapolis, IN summer activities for youth (70 competitive grants ranging from Replacement of audience- $1,000 to $63,000) 450,000 response system 17,475 American Cabaret Theatre Saint Florian Center American Diabetes Association, Indiana Affiliate Indianapolis, IN American Lung Association of Indiana General operating support 25,000 Beech Grove Education Foundation Boys & Girls Clubs of Indianapolis S TAR A l l i a n c e Indianapolis, IN Brightwood Community Center General operating support and Broadway United Methodist Church building staff capacity for information- Broken Wagon Ranch technology applications 300,000 Campbell Chapel Youth & Family Services 7 4 Lilly Endowment Annual Report

Education Division & Youth Programming Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8

Catholic Social Services National Junior Tennis League of Indianapolis Catholic Youth Organization North United Methodist Church Community Centers of Indianapolis (2 grants) Northwest United Methodist Church Covenant Baptist Church Notre Dame Club of Indianapolis Diabetic Youth Foundation of Indiana 100 Black Men of Indianapolis East Tenth United Methodist Children Open Hand and Youth Center R/ROS Community Development Corporation Ebenezer Church and World Ministries Redeemer Hospitality Mission First Baptist Church, North Indianapolis Robinson Community Social Service Foundation First-Meridian Heights Presbyterian Church Saint Florian Center Freetown Village Saint Richard’s School Foundation Garden City Christian Church Saint Rita Church Girls Incorporated of Indianapolis Seventh and Eighth United Christian Church Great Commission Church of God Southeast Neighborhood Development Happy Hollow Children’s Camp Tabernacle Presbyterian Church Hispanic Wholistic Education Center United North East Community Development Immanuel Presbyterian Church Corporation Indiana Deaf Camps Foundation United Northwest Area Indiana State Fair Commission Universal Center Indianapolis Art Center Urban Arts Consortium of Indianapolis Indianapolis Junior Golf Foundation West Morris Street Free Methodist Church Indianapolis Private Industry Council Westminster United Indianapolis Public Housing Agency Presbyterian Church Indy Youth Ministries Witherspoon Performing Arts Center James Whitcomb Riley Memorial Association YMCA of Indianapolis Jameson Camp Young Audiences of Indiana Kaleidoscope Church and Community Youth Job Preparedness Program Partnership Life Line Community Center Madame Walker Urban Life Center Subtotal - Mapleton-Fall Creek Neighborhood Association Education Division Grants 180,155,278 Marian College Subtotal - Youth Programming Grants 37,203,635 Martin University Education Division Messiah Missionary Baptist Church Discretionary Grants 99,500 Metropolitan Center Metropolitan School District of Perry Township Total - Education Division & Youth Programming Grants 217,458,413 Muscular Dystrophy Association 1998 Grant A p p r ova l s 7 5

Religion Division & Leadership Education Committee Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8

American Theological Library A s s o c i a t i o n Boston Unive r s i t y Evanston, IL Boston, MA Establishment of Internet database 216,185 Assessment of children’s ministries programs 203,885 Center for Millennial Studies project 330,561 Association of Statisticians Study of Americans’ understandings of of American Religious Bodies virtue and vice 187,981 St. Louis, MO Support for Religious Congregations Calvin College Membership Study 150,000 Grand Rapids, MI Program support for Calvin Institute Association of Theological Schools of Christian Worship 1,305,056 Pittsburgh, PA Leadership education programs and Center for Living Democracy planning for future work of ATS 950,675 Brattleboro, VT American News Service project 260,460 Auburn Theological Seminary New York, NY Christian Theological Seminary Research-based institutional Indianapolis, IN services program 500,000 Computer system enhancement, administrative restructuring, and board Austin Pre s byterian Theological Seminary and staff development 597,685 Austin, TX Indiana Clergy Peer Group Study Program 1,271,208 Program connecting congregations and colleges 150,000 C h u rch Federation of Greater Indianap o l i s Indianapolis, IN B a n gor Theological Seminary Bangor, ME Benevolence Fund and Family and Congregations Mentoring Project 86,000 Writing the history of Protestant theological education 90,200 Civil Rights Pro j e c t Boston, MA B aylor Unive r s i t y Waco, TX Television documentary on African American churches 750,000 Center for Family and Community Ministries 450,000

Bethel College and Seminary St. Paul, MN Study of multiracial congregations 484,884 7 6 Lilly Endowment Annual Report

Religion Division & Leadership Education Committee Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8

C o n g ress of National Black Churc h e s H a rv a rd Unive r s i t y Washington, DC Cambridge, MA Institutional advancement and Harvard Divinity School Center for strategic planning 500,000 the Study of Values in Public Life 998,250

Educational Broadcasting Corporation Indiana Billy Graham Crusade New York, NY Indianapolis, IN Religion & Ethics NewsWeekly, 1999 Indiana Billy Graham Crusade 500,000 television news program 8,917,887 Indiana University Fo u n d a t i o n E m o ry Unive r s i t y Bloomington, IN Atlanta, GA Consultation on children and religion 101,714 Project on law, religion, and the P    Center Project on Religion Reformed tradition 546,350 and Urban Culture 3,507,394 Youth Theology Institute at Candler School of Theology 418,139 I n s p i red Part n e r s h i p s Chicago, IL Fe l l owship of Christian A t h l e t e s General operating support 150,000 Kansas City, MO 1998 Indiana Junior Golf camp 10,000 Institute for American Va l u e s New York, NY Franciscan Friars of the A t o n e m e n t Publication of an anthology on marriage 48,150 Garrison, NY Internet dissemination of ecumenical I n t e rdenominational Theological Center and interreligious documents 50,000 Atlanta, GA Fund-raising in the African Fund for Theological Education American community 48,952 Atlanta, GA Study of entering seminary students 78,650 Interlock Media Cambridge, MA Goshen College Radio series about human spiritual needs 36,490 Goshen, IN Study of Amish and other Old Order Le Moyne College groups in Indiana 373,660 Syracuse, NY Dissemination of Values Program findings 31,282 Graduate Theological Union Berkeley, CA Development of a facilities master plan 200,000

H a rt fo rd Seminary Hartford, CT Cooperative Congregational Studies Project 764,027 1998 Grant A p p r ova l s 7 7

Religion Division & Leadership Education Committee Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8

L i t e r a ry Classics of the United States National Exe c u t i ve Service Corps ( L i b r a ry of A m e r i c a ) New York, NY New York, NY Leadership development program for pastors Publication of a collection of of small rural churches 11,899 American sermons 170,000 National Fatherhood Initiative Lutheran Theological Seminary Gaithersburg, MD at Philadelphia Production of book to aid religious Philadelphia, PA communities in renewing fatherhood 35,000 Study of volunteers involved in rebuilding burned churches 312,337 National Humanities Center Research Triangle Park, NC M D C Completion of Web site, “Divining Chapel Hill, NC America: Religion and National Culture” 43,415 Evaluation of the Congress of National Black Churches’ Rebuilding and Arson P a rtners for Sacred Places Prevention Program 337,800 Philadelphia, PA Program development and strategic planning 450,000 Mars Hill A u d i o Charlottesville, VA P re s byterian Church (U S A) Program expansion of an audiotape series 254,500 Louisville, KY United States Congregational Life Study 1,278,099 M a rtin Unive r s i t y Indianapolis, IN P re s byterian Historical Society Institute of Urban Ministries 299,042 Philadelphia, PA Partial support for development program 100,000 Messiah College Grantham, PA Princeton Unive r s i t y Research on fund-raising as ministry 49,420 Princeton, NJ Research on religious formation and the arts 479,600 M i l l e d g eville United Methodist Churc h Lebanon, IN P u rdue Research Fo u n d a t i o n Rebuilding of church destroyed by fire 45,744 West Lafayette, IN Extension of the American Religion National Black Catholic Congre s s Data Archive project 433,908 Baltimore, MD Leadership education program 450,000 Religious Public Relations Council New York, NY National Council of the Churches of Christ Religious Communication Congress 2000 200,000 New York, NY Phase II of Black Family Ministry Project 134,760 Yearbook of American and Canadian Churches redevelopment project 635,575 7 8 Lilly Endowment Annual Report

Religion Division & Leadership Education Committee Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8

R i verside Church in the City of New Yo r k U n i versity of Pe n n s y l v a n i a New York, NY Philadelphia, PA History of Riverside Church 209,440 Curriculum development for students who will work in faith-based, social service organizations 281,200 Southern California School of T h e o l o gy Claremont, CA Wabash College Youth Discipleship Project 1,228,587 Crawfordsville, IN Study of computer-based educational S t a n fo rd Unive r s i t y resources for theological schools 90,426 Stanford, CA Martin Luther King Jr. Papers 123,948 W h i d b ey Institute Clinton, WA United States Catholic Confe re n c e Religious leadership-education program 128,175 Washington, DC Lay ministry project 50,000 Yale Unive r s i t y New Haven, CT U n i versity of Califo r n i a Research and curriculum development Berkeley, CA seminar on religious leadership 299,860 Electronic atlas of North American religion and culture 536,848

U n i versity of Illinois at Chicago Chicago, IL Youth and religion project 652,443

U n i versity of Indianap o l i s Indianapolis, IN Development of a Center for Christian Vocations 436,978

U n i versity of Lethbridge Lethbridge, AB National study of religion in Canada 159,748

U n i versity of North Carolina at W i l m i n g t o n Wilmington, NC Research on outstanding congregations 189,126

U n i versity of Notre Dame Notre Dame, IN Production of a video based on the book, Practicing our Faith 87,040 1998 Grant A p p r ova l s 7 9

Religion Division & Leadership Education Committee Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8

C l e r gy Renewal Pro g r a m Theological School Programs to Improve the Quality Program to strengthen Indiana of Congregational Ministry congregations by providing pastors with a period for renewal and reflection Competitive grants program to help (1 grant) institutions make strategic advances in their capacity to prepare the next generation Alban Institute — Evaluation of program 112,084 of parish ministers (45 grants — $53,398,445) Andover Newton Theological School 475,212 Theological School Programs for High School Yo u t h Aquinas Institute of Theology 1,498,320 Seminary and divinity school-based Baptist Theological Seminary at Richmond 806,821 programs to provide opportunities for high school-age young people to engage Bethel College and Seminary 1,500,000 in theological study and inquiry Biola University (Talbot (22 planning and implementation School of Theology) 1,500,000 grants — $2 , 0 8 0 , 0 0 3) Boston University (School of Theology) 1,496,736 Andover Newton Theological School 149,956 Chicago Theological Seminary 1,499,940 Associated Mennonite Biblical Seminary 20,000 Church Divinity School of the Pacific 450,532 Calvin Theological Seminary 452,000 Colgate Rochester Divinity School 481,375 Concordia Seminary 150,000 Eastern Mennonite University Covenant Theological Seminary 30,000 (Eastern Mennonite Seminary) 1,318,919 Duke University (Divinity School) 30,000 Eden Theological Seminary 1,495,372 Eden Theological Seminary 30,000 Emory University Huron College 150,743 (Candler School of Theology) 1,499,988 Lincoln Christian College and Seminary 30,000 Franciscan School of Theology 1,398,636 Luther Seminary 30,000 Fuller Theological Seminary 1,499,754 Lutheran Theological Seminary at Philadelphia 30,000 Garrett-Evangelical Theological Seminary 1,263,094 Multnomah School of the Bible 140,000 Gordon-Conwell Theological Seminary 1,324,000 Newman Theological College 138,406 Howard University (School of Divinity) 1,500,000 Pacific Lutheran Theological Seminary 150,000 Jesuit School of Theology 1,169,000 Pittsburgh Theological Seminary 25,150 Lancaster Theological Seminary 1,490,000 Reformed Presbyterian Theological Seminary 39,976 Saint Francis Seminary 150,000 Saint John’s University School of Theology 27,926 Saint Mary’s Seminary and University 28,870 Saint Meinrad Archabbey 30,000 Trinity Lutheran Seminary 96,976 Wartburg Theological Seminary 150,000 8 0 Lilly Endowment Annual Report

Religion Division & Leadership Education Committee Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8

Livingstone College I nvitational Program Support for (Hood Theological Seminary) 609,615 Religious Magazines Louisville Presbyterian Program to strengthen religious Theological Seminary 1,500,000 journals and magazines (20 grants–$1,872,932) Luther Seminary 1,500,000 America Press - America 100,000 Lutheran Theological Southern Seminary 447,919 Center for Religious Humanism - Image 100,000 Moravian College (Moravian Seminary) 1,221,087 Christian Century Foundation - The Christian Century 98,900 Newman Theological College 468,742 Christian Century Foundation - Northern Baptist Theological Seminary 1,500,000 The Christian Ministry 100,000 Pacific Lutheran Theological Seminary 400,000 Christianity and the Arts - Payne Theological Seminary Christianity and the Arts 100,000 of Wilberforce, Ohio 898,458 Christianity Today - Books & Culture 100,000 Phillips Theological Seminary 530,150 Christianity Today - Christian History 100,000 (formerly: Phillips University Graduate Seminary) Christianity Today - Christianity Today 100,000 Regent College Foundation 843,705 Commonweal Foundation - Commonweal 100,000 Sacred Heart Major Seminary 1,461,300 Living Pulpit - The Living Pulpit 99,600 Saint John’s University School of Theology 1,492,178 Luther Seminary - Word and World 99,670 Saint Meinrad Archabbey 1,396,163 Other Side - The Other Side 100,000 Saint Paul School of Theology 1,240,964 Princeton Theological Seminary - Saint Vladimir’s Orthodox Theology Today 100,000 Theological Seminary 1,227,655 Regeneration Forum - re:generation quarterly 100,000 Seabury Western Theological Seminary 1,490,511 Saint John’s Abbey, of the Order Seattle School of Theology and Ministry 1,479,734 of Saint Benedict - New Theology Review 99,000 Southern California School of Theology 1,496,000 Saint John’s Abbey, of the Order Southern Methodist University of Saint Benedict - Worship 25,062 (Perkins School of Theology) 1,493,804 Sojourners - Sojourners 100,000 Trinity Lutheran Seminary 660,000 Union Theological Seminary Union Theological & Presbyterian School of Christian Seminary & Presbyterian Education - Interpretation 100,000 School of Christian Education 1,255,085 United Theological Seminary (formerly 2 institutions: Union Theological of the Twin Cities - ARTS 50,700 Seminary in Virginia,Presbyterian School of Christian Education) Upper Room - Weavings 100,000 University of Dubuque Theological School 1,047,275 Wartburg Theological Seminary 1,484,057 Washington Theological Union 1,089,844 Wesley Theological Seminary 1,496,500 1998 Grant A p p r ova l s 8 1

Religion Division & Leadership Education Committee Grants

DOLLAR AMOUNT A P P R O V E D I N 19 9 8 Leadership Education Committee

Foundation Center Subtotal - Religion Division Grants 92,924,107 New York, NY Subtotal - Leadership Education Grants 8,445,585 Expansion and renovation Religion Division Discretionary Grants 137,865 of library and administrative offices 500,000

General operating support 50,000 Total - Religion Division & Leadership Education Grants 101,507,557 H a rv a rd Unive r s i t y Cambridge, MA GRAND TOTA L - All Divisions 496,270,428 Research and practitioner seminar Incentive Grants for Employee Giving 1,198,425 on civic participation 450,000 Forgiveness of program-related investment loan (Indianapolis Indiana University Fo u n d a t i o n Neighborhood Housing Partnership) 3,000,000 Bloomington, IN Total - All Grants Approved 500,468,853 * Support for the Indiana University Center on Philanthropy 6,475,621 *Reconciliation to financial statements

National Charities Information Bure a u To reconcile the total of all grants approved New York, NY with the financial statements, the following adjustments must be made: General operating support 50,000 Adjustments for decommitments (4,804,943) NSFRE Fo u n d a t i o n Adjustments for refunds (585,712) Alexandria, VA (formerly: National Society of Fund Net Total - Grant Approvals 495,078,198 Raising Executives Foundation) 1999 Executive Leadership Institute 25,000

R e s e a rch Foundation of the City University of New Yo r k New York, NY Quality Reporting Project 50,000

R o b e rt K. G reenleaf Center Indianapolis, IN Joint conference with the National Association for Community Leadership 300,000

Valparaiso Unive r s i t y Valparaiso, IN Valparaiso Project on Civic Reflection 544,964 8 2 Lilly Endowment Annual Report

GUIDE L INE S &PROCEDURE S

Lilly Endowment receives several thousand grant requests each year, but we can fund only a small percentage of many worth- R e l i g i o n while proposals. These guidelines, formulated over the years Our primary aim in this field is to deepen and enrich the reli- by the Lilly family and the Endowment’s Board of Directors, gious lives of American Christians, principally by supporting govern our grantmaking decisions. efforts to call, support and educate a new generation of talent- ed pastors and to strengthen current pastors in their capacities A reas of intere s t for excellence in ministry. We seek to help congregations be We consider proposals in three program areas – community vibrant, healthy communities of faith, and we encourage efforts development, education and religion. We also are interested in that make available and accessible the wisdom of the Christian initiatives that benefit youth, that foster leadership education tradition for contemporary life. We support theological sem- among nonprofit institutions, and that promote the causes of inaries and other educational and religious institutions that philanthropy and volunteerism. share these aims. We also support projects which strengthen the contributions that religious ideas, practices, values and in- C o m munity Deve l o p m e n t stitutions make to the common good of our society. Our community development grantmaking focuses primarily on the quality of life in Indianapolis and Indiana, and we grant Yo u t h , Leadership Education, and Fund-raising and funds for human/social needs, central-city and neighborhood P h i l a n t h ro py revitalization, low-income housing, and arts and culture in Besides grantmaking in our three principal areas of communi- Indianapolis. We also support amateur athletics and fitness ty development, education and religion, the Endowment also organizations, facilities and programs that help advance the awards grants in support of youth development, leadership ed- city’s economic revitalization and community recreational op- ucation, and fund-raising and philanthropy. portunities. Our youth grants support direct-service organizations in On a statewide level, we provide major support for the central Indiana, build the capacity of intermediary organizations development of the endowments of community foundations throughout the state and provide professional development for and the advancement of United Ways. the staffs and volunteer leadership of these organizations. In leadership education, we seek to support and nurture E d u c a t i o n good stewardship among the trustees and executives of the Our education grantmaking revolves primarily around our types of charitable organizations we primarily serve by funding interest in improving education in Indiana, with special em- scholarship on the characteristics of able trusteeship and good phasis on higher education and on programs designed to governance of nonprofit organizations. increase the number of Indiana residents with bachelor’s On a limited basis, we also support programs (nationally degrees. We support a number of invitational grant programs, and in Indiana) to increase charitable giving among Americans. many of which are aimed at Indiana’s colleges’ and universities’ We fund efforts to create a body of reliable knowledge about abilities to increase the state’s educational attainment level. giving and fund-raising and to encourage the scholarly pursuit We also support private historically black colleges and univer- of the subject. sities throughout the country. 1998 Grant A p p r ova l s 8 3

Ge og r a phic priorities universities generally are confined to the state of Indiana and In keeping with the wishes of the founders, the Endowment to invitees under certain Endowment grant initiatives. gives priority to efforts that improve the quality of life in In- n Outside Indiana. Requests usually are declined for build- dianapolis and Indiana. This priority applies to grants for ing campaigns, elementary / s e c o n d a ry education, arts and community development and elementary/ s e c o n d a r y education culture, human-service projects, general operating funds and (exceptions include occasional funding for national programs neighborhood projects (except as part of invitational grant that complement or relate to our work in Indiana). programs). The Endowment’s interest in higher education extends to Indiana colleges and universities and to historically black Application pro c e s s colleges nationwide. Grants to other institutions of higher learn- If you believe your charitable organization has a request that i n g outside Indiana are generally restricted to programs fits within our guidelines, we suggest that you write us a pre- offered by the Endowment on an invitational basis. li m i n a r y letter of no more than two pages. The letter should tell Our work in religion is national in scope, as is our sup- us about your organization, the project you have in mind and port for leadership education. the amount of support you will need from us. We respond in Grants for international purposes are limited to a small writing to all preliminary inquiries. In cases that warrant fur- number of disaster-relief efforts and to a few United States- ther consideration, we may ask you to furnish a full proposal. based economics and public policy programs affecting North and South American countries. A p p roval pro c e s s A program director generally reviews grant proposals. Those that L i m i t a t i o n s meet the criteria for consideration proceed to the appropriate di- Federal regulations and Board policy preclude the Endow- vision or committee for review, then to the corporate officers, and ment’s involvement with the following: finally to members of the Board of Directors. The full Board of

n Loans or cash grants to private individuals. Most grant mon- Directors or its Executive Committee considers grants in ey is awarded to charitable entities. We do not assist individuals Feb r u a r y, March, May, June, July, September, November and with personal or business-related finances. De c e m b e r . The grant-review process takes three to six months.

n Health-care and biological-science projects. The founders All grantseekers receive written notification of our decisions. wanted to avoid any appearance of conflict of interest with their commercial enterprises. The rare exception has been cap- Please direct correspondence to: ital grants for hospitals and other nonprofit, health-related facilities, mainly in Indianapolis.

n Mass media projects. The Endowment does not typically fund mass media projects and limits consideration to projects Program Office that fall squarely within our specific program areas. Lilly Endowment Inc.

n Endowments or endowed chairs. The Endowment targets Post Office Box 88068 its grants for specific purposes. Except in unusual cases in- Indianapolis, IN 46208-0068 volving long-standing grantees or special initiatives, we do not Phone 317/924-5471 contribute to endowments or endowed chairs. FAX 317/926-4431

n L i b r a r i e s . The Endowment regularly declines grants to public libraries outside Marion County, Ind. Library grants to Camera-shy ACKN OWLEDG M ENTS chorister joins his friends after Sunday design & p ro d u c t i o n w r i t i n g service. Stahl Design Inc Holly G. Miller

p h o t o g r ap hy Alicia Dean Carlson Chris Minnick e d i t i n g

p r i n t i n g Jean B. Rose Design Printing Company Contributing Editor Gordon Englehart Copy Editor please direct correspondence to:

Program Office Lilly Endowment Inc. Post Office Box 88068 Indianapolis, IN 46208-0068 Phone 317 / 924-5471 FAX 317 / 926-4431