2008 University of Wisconsin Foundation Annual Report on Stewardship LOCALIMPACTGLOBAL MAKING AN IMPACT sometimes requires making a change. In response to the economic climate and environmental concerns, we’ve made some changes resulting in a leaner annual report than the one you received last year. Trimming 16 pages saved tremendously on paper, printing and mailing costs, and this year, for the first time, we have provided an option for you to receive your annual report online. The interactive, online annual report features expanded stories and additional content. We hope you’ll take a look, and please, let us know what you think. www.uwfoundation.wisc.edu/annualreport MANAGING SENIOR DIRECTOR OF EXTERNAL RELATIONS: LYNNE JOHNSON; PUBLICATIONS PRODUCTION MANAGER: DEBBI PETERSON; WRITERS: MERRY ANDERSON, CHRIS DUPRÉ, ANN GRAUVOGL, SUE ZYHOWSKI; PHOTOGRAPHER: DAVID NEVALA; WEB AND MULTIMEDIA MANAGER: DAN TREUTER; DESIGNER: YAEL GEN; PRINTING: HM GRAPHICS, MILWAUKEE, WISCONSIN THIS ANNUAL REPORT WAS PRINTED ON CARBON-NEUTRAL, FSC-CERTIFIED, WISCONSIN-MANUFACTURED PAPER WITH A MINIMUM OF 30 PERCENT POST-CONSUMER FIBER MANUFACTURED WITH CERTIFIED RENEWABLE ENERGY. 2008 UNIVERSITY OF WISCONSIN FOUNDATION ANNUAL REPORT ON STEWARDSHIP IF WE THINK OF “SIFTING AND WINNOWING” as an abstract intellectual exercise that occurs somewhere out in the ether, we miss the point and the benefit. This became apparent last year when the University of Wisconsin-Madison, like the rest of the world, began to face eco- nomic realities. In the fall, Chancellor Biddy Martin invited students, staff, faculty, alumni, friends and neighbors to participate in talking sessions—to sift and winnow collaboratively—on how the University could realize cost savings, utilize existing resources more efficiently and develop money-saving ideas. Many people actively and enthusi- astically responded with new approaches to old ways of doing things. The truths promised as a result of “sifting and winnowing” are slowly Salter Jeffery Photo by emerging. There is progress and optimism. You can read more and share your thoughts at www.chancellor.wisc.edu/forum. PHILANTHROPY WILL MEAN At the University of Wisconsin Foundation, we are especially aware “ of our responsibility to manage your gifts, report performance and THE DIFFERENCE BETWEEN THE hold the line on expenses. Compared to other years, 2008 was not MAINTENANCE OF A GREAT outstanding in terms of results. Compared to the overall economy, UNIVERSITY AND THE EVOLUTION to peer institutions and to our ability to fulfill our commitment to the University, the investment decisions made two years ago have proven OF AN EXTRAORDINARY ONE. far-sighted and sound. We have not been forced to sell assets to raise ” cash and are positioned to take advantage of buying opportunities. This is a credit to the leadership of our Foundation board, to our port- folio managers and to our staff. As you study the information in the financial section of this annual report, you may have questions or comments. We encourage and invite you to contact us. This report also includes inspiring stories about the impact of your gifts. These stories demonstrate that the UW-Madison remains an outstanding investment when it comes to ultimate return to society. Your gifts are making the University accessible to talented but financially disadvantaged students. Gifts are advancing research and training graduate students—tomorrow’s faculty, entrepreneurs, poli- cymakers and leaders. Your gifts help recruit and retain top faculty. They support projects that create knowledge and enable us to share that knowledge with people across the United States and around the world. Thanks to you, we continue the “fearless sifting and winnow- ing” that is not only our proud tradition, but how we do our work. For your loyalty in challenging times, your enthusiasm in good times and your generosity at all times, we are sincerely grateful. ANDREW A. WILCOX PAUL COLLINS President, University of Wisconsin Foundation Chair, University of Wisconsin Foundation CHANCELLOR’S MESSAGE IN TODAY’S ECONOMY, we are keenly aware of value. Some forms of value once considered secure have been lost, our priorities have changed and things we once took for granted have increased in significance. The value of higher education has never been greater, and a University of Wisconsin-Madison degree steadily increases in value. Lifetime- earnings potential is important to our graduates, their families and their communities. Higher education is essential to our economic well-being. However, educational value extends beyond earnings. The scope of the UW-Madison experience enables students to acquire crit- ical thinking skills, create knowledge, imagine unforeseen possibilities, communicate clearly and build relationships. We continue to draw inspiration from the Wisconsin Idea, the notion that the University should help provide real-world solutions. In the con- text of reaccreditation, we have rededicated ourselves to the legacy and vibrance of the Wisconsin Idea. To preserve our quality, we are seeking new revenue sources. In this recession, state deficits have made supporting higher education a challenge. The Madison Initiative for Undergraduates, approved by the Regents in May, raises UW-Madison tuition slightly more than other schools in the UW System. The revenue will build student scholarship support, hire faculty in key areas and improve the quality of undergrad- uate education. Unfortunately, UW-Madison lags well behind its peers in the Big Ten and among the best public research universities in the amount of available need-based support. The result is a less economi- cally diverse student body. We remain one of the best values among world-class research univer- sities. For more about the Madison Initiative, visit www.madisoninitia- tive.wisc.edu. If you have questions or feedback, please contact me at [email protected]. I am grateful for your support of the “Great People Scholarship Campaign.” Your willingness to embrace it provides the crucial support to increase student scholarship support. We lead in academic excel- lence. We also must lead in accessibility. As the University becomes increasingly dependent on private revenue, the value of your generosity grows—as does our appreciation of your many contributions to this great institution. I value the warmth, advice and support you have extended to me, and I look forward to working with you on the challenges and opportunities that lie ahead. On Wisconsin! CAROLYN “BIDDY” MARTIN Chancellor, University of Wisconsin–Madison 2 UNIVERSITY OF WISCONSIN FOUNDATION 2008 UNIVERSITY OF WISCONSIN FOUNDATION ANNUAL REPORT ON STEWARDSHIP 20 16 18 24 10 4 A Great Start to ‘Great people’ 12 Pharmacy Reaches 20 Second Chance A focus of the “Great people. Out Globally Nontraditional students Great place.” Initiative is rais- Thailand. Belize. Australia. thrive with support of Osher ing support for undergraduate Pharmacy students and faculty Foundation. students. work and learn worldwide. 22 Built to Last 6 Students Tackle 14 Students Serve to Learn The M.A. Mortenson Company Climate Challenge and Learn to Serve has constructed a productive The environment benefits from Students learn the value of relationship with the College reusing bags to purify water, volunteer services through the of Engineering. breaking down biomass for fuel Morgridge Center. and more. 24 Reseach Unravels 15 Beautiful Music Juvenile Diabetes 8 Finding Virtue in Slow A music teacher honors his Lottery win fuels UW-Madison and Steady favorite teacher with a student quest to understand how sugar Productive graduate students performance award. triggers insulin release. don’t always announce their arrival, and one alumnus had 16 Band Alumni in Step 25 2008 Financial Report those “slow builders” in mind with Project Forty 26 Statement of Financial when he made a gift. Alumni of the “best band in the Position land” step forward to upgrade 27 Expenses and Payments practice field. 10 Gift Helps Students 28 Endowment Funds Earn Experience 29 Recipients appreciate real-life Deferred Gifts and Estate 18 Is This the Path for Me? Planning experience while earning extra Private forest management is 30 Board of Directors money for school. the focus of a new internship. 32 Staff 3 IMPACT 2008 ANNUAL REPORT A GREAT START TO ‘GREAT PEOPLE’ he year saw the launch of the “Great A MOTHER’S INSPIRATION. The timing certainly people. Great place.” Initiative, a co- was right for Ann Wallace (’63 BS L&S). ordinated effort to boost need-based “My mother had just died, at age almost 97, and undergraduate aid, graduate student her estate was being distributed,” said Wallace, the Tsupport, faculty retention and the East Campus former assistant dean in the School of Education Gateway at the University of Wisconsin-Madison. and current executive director of the UW-Madison A major focus has been need-based aid for Retirement Association. “Both the UW Foundation undergraduate students. With the Great People and the UW Credit Union were offering to match Scholarship Campaign, the Foundation is matching contributions in support of need-based scholar- gifts for student support: 1 to 1 for campus-wide, ships for undergraduate students. IT’S VERY HARD TO GET INTO THIS UNIVERSITY. THE STUDENTS WHO MAKE IT IN ARE “EXCELLENT. IF THEY NEED SOME HELP, IT’S THE RIGHT TIME TO GIVE IT, CONSIDERING THE ECONOMY.” ANN WALLACE (‘63 BS L&S) MADELINE WALLACE GREAT PEOPLE SCHOLARSHIP FUND unrestricted scholarships and 1 to 2 for college or “I saw this as a great opportunity to name a school scholarships. scholarship in honor of my mother, who played AN INSTITUTIONAL ASSIST. The UW Credit such a big part in my getting a UW-Madison Union jumped on board from October through education,” she said. “I’m a bargain hunter. What the end of December with an outright pledge of can I say?” $215,000 for student support and its own match The Madeline Wallace Great People Scholarship of member gifts, with the Foundation matching Fund honors a woman who valued education but the combined total.