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2019 Annual Report

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Board of Directors Officers N. Clay Robbins N. Clay Robbins Chairman Chairman, President & Chief Executive Officer Robert L. Smith Daniel P. Carmichael Senior Vice President for Collaborative Strategies Craig Dykstra Ronni N. Kloth William G. Enright Vice President for Community Development Charles E. Golden Ted Maple Vice President for Education Jennett M. Hill Christopher L. Coble John Lechleiter Vice President for Religion Eli Lilly II Ben W. Blanton Mary K. Lisher Vice President, Secretary & General Counsel David N. Shane Peter A. Buck Vice President for Investments Jaclyn P. Dowd Vice President for Evaluation & Special Initiatives Julie A. Siegler Vice President for Administration Diane M. Stenson Vice President & Treasurer About Lilly Endowment Lilly Endowment is an Indianapolis-based, private philanthropic foundation created in 1937 by J.K. Lilly Sr. and his sons Eli and J.K. Jr. through gifts of stock in their pharmaceutical business, Eli Lilly and Company. The gifts of stock remain a financial bedrock of the Endowment. The Endowment, however, is a separate entity from the company, with a distinct governing board, staff and location. In keeping with the founders’ wishes, the Endowment supports the causes of community development, education and religion. The Endowment affords special emphasis to projects that benefit young people and that strengthen financial self-sufficiency in the charitable sector. The Endowment funds programs throughout the United States, especially in the field of religion. A key priority of its founders, however, was to help the people of their city and state build better lives. Accordingly, the Endowment maintains a special commitment to its hometown, Indianapolis, and home state, Indiana. 2 Executive Message Lilly Endowment Annual Report 4 Community Development 15 Education 19 Religion 30 Finances & Grantmaking 31 Auditor’s Report 37 2019 Grant Approvals 58 Grant Guidelines & Procedures 60 Early Learning Indiana Executive Message Since J.K. Lilly Sr. and his sons, Eli and J.K. Jr., receive full tuition scholarships to attend the Indiana founded Lilly Endowment 83 years ago to further the college or university of their choice. A 2019 Endowment causes of community development, education and religion, grant to ICI will help strengthen the Lilly Scholars Network, which the Endowment often has encouraged collaboration among was created by Lilly scholar alumini to encourage the some organizations it has supported. In recent years, however, 4,700 current and alumni scholars to connect and work together we have noticed that the issues and contexts relating to to give back to their local communities and strengthen the state. these areas of focus have become increasingly complex and that, to achieve meaningful progress, collaborative efforts m Indianapolis Neighborhood Housing Partnership that generate imaginative, new approaches are more and From its inception in 1988, Indianapolis Neighborhood Housing more needed. Partnership has collaborated with financial institutions, community-based organizations and local government to help Although aligning the values, missions and ways of operating of Indianapolis residents prepare for and become successful parties in a collaboration can be challenging, their interactions homeowners and to build stronger neighborhoods. A special can stimulate creativity and reveal the strengths each party can $26.6 million Endowment grant supports two collaborative contribute to the achievement of shared goals. In good-faith programs that realized meaningful progress in 2019: the Anchor collaborations, parties are both stretched and supported by Housing Program and the Equitable Transit-Oriented one another, and there is trust that each collaborator will bring Development Loan Fund. its talents, connections, resources, knowledge and passions to complement what the others provide. m Global Religion Journalism Initiative This Endowment-funded initiative is fostering collaboration Featured in this annual report are the following stories among The Associated Press, Religion News Service and about efforts the Endowment has funded that involve The Conversation US to expand and strengthen significantly fair signi ficant collaboration: and accurate religion reporting worldwide. m Strategic Community Advancement Initiatives m Called to Lives of Purpose and Meaning Collaboration is at the center of Endowment-funded and NetVUE regional advancement efforts in three regions of Indiana. The Endowment’s Called to Lives of Purpose and Meaning The University of Notre Dame, Purdue University and Indiana Initiative nurtures collaboration among faith-based organizations University are key partners in these efforts in their respective that are helping congregations be places where parishioners regions, and they are collaborating with community discover God’s call in their own lives. The initiative builds on foundations, other educational institutions, area businesses, the experiences of NetVUE, the Network for Vocation in local governments and others to build regional prosperity Undergraduate Education, which began 10 years ago to support and quality of life. colleges in their efforts to help students discern their vocations. m Lilly Scholars Network In supporting collaborative approaches, the Endowment Since 1997, the Endowment has funded the Lilly Endowment generally strives not to prescribe the parties to include in a particular Community Scholarship Program, through which community collaboration or the design of a collaborative approach. Rather, foundations across the state work with Independent Colleges we seek to identify important issues and opportunities and then of Indiana (ICI) to nominate promising high school seniors to encourage a range of organizations to select others with which to 2 Lilly Endowment | Annual Report | 2019 work to address the identified issues and opportunities in ways enhance their relevance and sustainability, more effectively that fit their unique capacities, needs and missions. We have serve their students and more fully achieve their educational found that when grantees design their own approaches, they missions. To do so, the Endowment is encouraging Indiana are more likely to be sustained and to have long-term impact. higher education institutions to explore collaborative strategies with one another, with higher education institutions In addition to the efforts featured in this report, the Endowment across the country or with other local, regional or national in 2019 supported other collaborations that may be highlighted organizations. in future reports or on our website. Among them are: Phase VII of the GIFT Initiative for Indiana community Enhancing Opportunity in Indianapolis, an initiative which foundations, through which the Endowment has allocated seeks to encourage the creation and expansion of promising, $125 million to help Indiana community foundations in all collaborative strategies to help people in Indianapolis living in 92 counties in the state collaborate with each other and broad or near poverty make progress toward lasting economic self- arrays of other community organizations to prioritize key sufficiency. Through this initiative, the Endowment expects to community challenges and opportunities and develop provide a total of up to $50 million in grants in 2021. strategies to address them. Indiana University and Purdue University initiatives, We have been impressed with the imaginative and well-developed through which each institution is exploring how their students collaborative proposals we have received from grantees in and faculty can become more aware of and better prepared each of our grantmaking divisions. In virtually every case they to address the ethical challenges presented by fast-evolving prove the maxim: the whole is greater than the sum of its digital technologies, especially in the context of artificial parts. It is a privilege to be able to support their exemplary intelligence and big data management. The universities are efforts to further their important aims. working together on these initiatives to leverage their research and academic strengths. Charting the Future, an initiative through which the Endowment is making available grants totaling up to $108.2 million to help colleges and universities across the state address their key N. Clay Robbins challenges and take advantage of promising opportunities to Chairman, President & Chief Executive Officer Reflecting on 2019, we acknowledge Sue Houk, the Endowment’s grants capital, and to support national initiatives with gratitude the following three coordinator for community development, that enhance higher education opportunities long-tenured colleagues who retired retired after 43 years of service. As the for African Americans, Hispanics and Native that year: longest-serving employee in the Endowment’s Americans. She was instrumental in history, Sue became an expert and historian shepherding the success of the Lilly Endowment Lynn Heckman, a financial associate, on the Endowment’s work in community Community Scholarship Program, which has retired after 28 years of service. Her work development and shared her knowledge of helped more than 4,700 students representing included support for many facets of grantees and of the Endowment itself with every one of Indiana’s counties receive the Endowment’s finance division, including new generations of colleagues. She was the full-tuition support to attend a college or assisting with the Endowment’s matching last Endowment employee whose
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