Endowment Information

Endowment gifts are provided by donors to generate ongoing support for Iowa State students, faculty, and programs. Each endowed fund is managed and tracked separately within the foundation’s financial system. All individual endowed funds are invested as a combined pool, with each fund owning a pro-rata share of the total value and receiving a pro-rata share of the pool’s overall investment return. The purpose of this model is to grow the principal of each endowed fund and provide protection against inflation while supporting the purpose designated by the donor.

To read more about endowments, click here.

Endowment Oversight
  • The Investment Committee is made up of volunteers who are donors and alumni of Iowa State with investment and financial experience.
Financial and Investment Objectives
  • The primary financial objective is to preserve and enhance the pool's inflation-adjusted purchasing power net of all investment management cost, while providing funds for current spending.
  • The primary long-term investment objective of the pool is to attain an average annual real total return (net of all investment related fees) in excess of total expenditures (spending and overhead expenses), as measured over rolling 10-year periods.
Consulting
  • Cambridge Associates LLC provides investment consulting services including: asset allocation and spending reviews, investment guideline reviews, investment manager searches, and performance evaluation.
Custody
  • Wells Fargo Bank, N.A. provides master custody services including asset safekeeping, income collection, trade settlement, cash management, market pricing, and both consolidated and separate account reporting.
Evaluating the Investment Program
  • This pool of assets requires a long-term view and must be managed with this view.
  • Asset allocation plays a critical role in preserving the assets, producing a relatively stable spending stream, and allowing opportunity for growth. These goals must be balanced in setting the asset allocation.

Financial Reports

The Iowa State University Foundation's financial statements are audited annually by the independent, international audit firm of KPMG LLP in accordance with auditing standards generally accepted in the United States. The independent auditors report directly to the audit committee of the foundation board.

If you have any questions or would like a printed copy of our financial reports, contact Mike Wahlin at mwahlin@foundation.iastate.edu.

Financial Statements

Tax Returns

Form 990 (Return of Organization Exempt From Income Tax)

Note: If you would like a printed copy of the above Form 990 or our Form 990-T (Exempt Organization Business Income Tax Return), please email questions@foundation.iastate.edu to contact the Iowa State University Foundation.

Public Information Policy

Private Funds

Private funds help fund student scholarships, faculty support, programmatic support, and facility construction and renovations.

The total amount of private funds spent annually to benefit Iowa State:

FY12 - $50.3 million
FY13 - $69.8 million
FY14 - $80.7 million  
FY15 - $81.8 million
FY16 - $80.0 million 

Asset Allocation

The long-term pool is diversified into several asset classes.

See Definitions
See Graph

Investment Report –
Long Term Pool

Global financial markets were influenced by various events occurring during the second quarter of the fiscal year, including the U.S. presidential election, the OPEC summit (cutting global production), and the Federal Reserve meeting (raising interest rates by 25 bps and indicating more rate increases to come). Developed market equities and commodities drove performance for the quarter. U.S. stock indexes reached all-time highs in December, with small cap equities leading the way, based on the expectation of higher domestic growth and lower taxes from the new presidential administration. Fixed income and emerging markets struggled during the quarter, impacted by the rising interest rates and concerns regarding the future of U.S. trade policy.

The foundation’s long term portfolio continues to benefit from the ongoing rally in equity performance – both domestically and internationally. The portfolio reported a return of 1.0% for the quarter ending December 31, 2016 and 4.8% for the first six months of the fiscal year (against its benchmark of 4.4%), while longer-term returns include 7.4% over five years and 7.1% since inception. The pool balance grew to $638 million.

See Graph