Shaping the Future Donors Report 2013/2014 Contents 2 Advancing our school together 46 Loyal donors: constant partners in building our future 4 2013/2014: financial overview of the school 51 A promise for the future: legacy commitments 6 Empowering INSEAD to advance: new gifts and pledges in 2013/2014 52 Class results at a glance 7 Where did donors direct their gifts 56 Donor honour roll in 2013/2014? Circle of Patrons Salamander Holders Alumni and friends: partners in 8 Centres of Excellence INSEAD’s evolution Major Research & Teaching Funds 10 Advancing INSEAD: alumni gifts in Chairs 2013/2014 Fellowships Endowed Scholarships 11 Where did alumni direct their gifts Named Facilities in 2013/2014? Organisational Giving: Corporations, Foundations, Special Entities 12 Alumni support fuels INSEAD’s Corporate Associate Programme advancement Taxe d’Apprentissage 16 Ensuring excellence and diversity in Individual Giving: Alumni, the classroom: student financial aid Friends & MBA Students 28 Driving research and learning innovations: gifts to research 36 Powering a flexible, agile school: unrestricted gifts in current funds and to the endowment 42 Developing state-of-the-art facilities: Asia campus expansion and Europe campus renovation 4 INSEAD Donors Report 2013/2014 5 Advancing our school together Dear donors, INSEAD’s story is truly remarkable. The vision student life, our donors have helped us to of our founders — to be international, diverse, attract and retain talent, build our unique entrepreneurial and independent — set us on diversity and expand our facilities worldwide. a different path from other business schools. I am delighted to report that donor investment Throughout our 55-year history we have in 2013/2014 increased significantly and introduced innovations that have disrupted propelled us beyond our Asia campus existing concepts of management education. expansion campaign target. The new We created the first international school, the Leadership Development Centre will provide first one-year MBA programme and the first state-of-the-art facilities for INSEAD to extend company-specific executive programme. our portfolio of innovative programmes for Today we are the first and only school to today’s business leaders. Targeted gifts gave operate seamlessly on campuses in three new stimulus to the fusion of creativity and distinct locations. business as well as to Family Business and Like all new ventures, ours was fraught with the European Competitiveness Initiative. challenges. We began with no endowment, The Dean’s Annual Fund provided a boost to no campus and no permanent faculty. But our the Corporate Governance Initiative and the founders had a vision and the determination Initiative for Learning Innovation and Teaching to succeed. In the early years of INSEAD Excellence, as well as much-needed resources they enlisted among our supporters key for the Career Development Centre. organisations like the Paris Chamber of Our goal in the years ahead is to establish Commerce, Royal Dutch Shell, IBM and the INSEAD as the most innovative and impactful Ford Foundation. Over time, other corporate business school. In a globalised, fast-changing, friends, foundations and government entities digitally connected world, the challenges we followed. Most importantly, as the school grew face are complex and competition is tough. and our alumni were becoming more and But we are confident that together we can more successful in their professional life, they meet these challenges. With your help, we can stepped forward to invest in the school and reach our highest aspirations. Together we secure its success. They gave their time, shared will build INSEAD as the business school for their expertise and invested financial resources the future and we will deliver on our mission to build what today we are proud to call The to develop the future leaders, managers, and Business School for the World. entrepreneurs who through their skills and As an independent school, without a university innovation change the world for the better. affiliation and reliant on programme fees to Thank you for investing in the future of INSEAD. meet running costs, the support of our donors is critical in ensuring excellence in everything we do and continuous innovation through our research and teaching. Every gift, large and small, is an investment in the future of the school. Every gift is vital to ensure that the school grows, innovates and enhances Ilian Mihov its distinctive identity. With contributions to Dean of INSEAD scholarships, research funds, facilities and 6 INSEAD Donors Report 2013/2014 7 2013/2014: financial overview of the school INSEAD’s status as an independent, INSEAD’s endowment Endowment at market value Total revenues in 2013/2014 private institution differentiates us from (€ millions) many schools that are part of a university Over the years, donors have helped INSEAD to establish a sizeable endowment. At the close or benefit from regular state funding. We 175 are also non-profit, which means that any of the financial year in 2014, the market value of €200.9m the endowment stood at €174m. Managed by surplus is reinvested in the school. These 150 174.2 characteristics shape how we operate and the Endowment Management Committee and 161.0 work. Striving for excellence is a continuous advised by Partners Capital, the performance 125 151.5 142.3 process with us as it is critically linked to rate was at 10.8%, an increase over 7% in 135.6 100 our financial strength. Though tuition fees the previous year. As in all years, the annual 105.9 distribution was 4% of the average endowment 105.1 serve to meet the running costs of the 75 97.2 school, philanthropic aid is vital to plan new value, which translated into a spending amount of €6.2m. We sincerely thank all donors who are 50 75.4 ventures and build future capabilities. 64.9 supporting the school’s progress in this way. 55.7 49.7 The financial year 2013/2014 closed with 25 42.5 solid results. Revenues from degree and While our endowment is growing, it still remains executive education programmes saw a a fraction of those in many US schools. Given 0 6% increase over the previous year and its importance in the long-term development of INSEAD, building our endowment is a major Aug ‘11 Aug ‘13 Aug ‘14 Aug ‘12 Aug ‘10 Aug ‘07 Aug ‘02 Aug ‘03 Aug ‘09 Aug ‘06Aug Aug ‘05 Aug Aug ‘08 contributed to 86% of the total income, Aug ‘04 which amounted to €200 million. Gifts priority of the school and we invite our donors during the year, coupled with yields from to continue their support in strengthening it. INSEAD’s endowment and earnings from contract research, contributed to 8% of INSEAD’s total revenues. Donor generosity Allocation of spending from 2014 revenue 2014 expenditure provided INSEAD with essential resources endowment in 2013/2014 to strengthen our competitive edge and our thought leadership. INSEAD’s physical assets expanded with a major extension (10,000m²) to our Asia campus in 6% Singapore, thanks in large part to the 8% 29% generosity of our donors. 31% 39% 42% 44% 44% 19% 11% 27% Key Key Key Chairs Research Degree programmes Gifts, endowment Faculty and research Degree and Scholarships Other Executive education yield and contract Facilities, IT and Executive Education programmes research support functions programmes Other 8 INSEAD Donors Report 2013/2014 9 Empowering INSEAD to advance: Where did donors direct new gifts and pledges in 2013/2014 their gifts in 2013/2014? Collectively you gave €304,171 €11,123,636 €206,554 €264,658 €312,404 of which, alumni gave Given in current funds €4,264,375 €4,941,304 €653,829 & corporations, foundations & friends Given in endowment €6,859,261 €1,425,321 €745,458 €4,520,874 Given in capital Grand total €4,757,011 €11,123,636 €2,121,079 Increase in gifts over the last four years in € million €1,994,609 12 Key 10 2013/2014 8 2012/2013 2011/2012 6 2010/2011 Key 4 2 Asia campus expansion Campus facilities Research Centre for Economic Growth in Abu Dhabi Scholarship and financial aid Endowment (general) Dean’s annual fund Gifts for specific projects and events Jan Apr Oct Feb Mar July Dec Nov May Aug Sept June Unrestricted gifts 10 INSEAD Donors Report 2013/2014 11 Alumni and friends: partners in INSEAD’s evolution Dear INSEAD donor, Thank you for the support that you have given recognition programme for all donors — both to INSEAD, The Business School for the World. alumni and non-alumni — to express our appreciation fully. As a global donor community, the reasons why you support INSEAD vary widely. In keeping I also wish to thank the thousands of volunteers with your unique motivation and expectations, who give their valuable time and expertise our team works to ensure that the impact you in support of the school’s activities. My want to create and the engagement you want special thanks go to the Chairman of the with the school is realised in full. INSEAD Alumni Fund Leonidas Los and the global directors and trustees of the IAF Motivations to give to INSEAD are as unique — your help has been vital to our efforts. as the person making the decision to provide I would like to thank the INSEAD Alumni support. Your reasons range from giving back Association President Sven Kado, the National to the school ‘where I had the best experience Associations, Global Clubs and National of my life’, to providing opportunities to and International Councils for their amazing talented men and women, honouring a loved support. To the members of the Board and the one, expressing a deep belief in the power of Advisory Council I offer my gratitude for your INSEAD’s education to make a change and counsel and leadership — it is a privilege to partnering with the school to push the frontiers work with such an esteemed group of leaders of knowledge.